/

Aerospace & Defense Industry Recorded $874B in 2020 Revenue; AIA’s Eric Fanning Quoted

2 mins read
Eric Fanning
Eric Fanning President

The Aerospace Industries Association has released a report saying the aerospace and defense industry was still able to record $874 billion in revenues, contribute $90.6 billion in exports and hired 2.09 million workers in 2020 despite the significant business and job losses as a result of the COVID-19 pandemic.

“This year’s report details the effects that the COVID-19 had on the A&D industry. It also provides a glimpse of the positive trends and opportunities that will form the basis of our industry’s growth in a post-pandemic world,” Eric Fanning, president and CEO of AIA and a previous Wash100 Award winner, said in a statement published Wednesday.

The A&D industry represented 1.8 percent, or approximately $382 billion, of the total U.S. gross domestic product, made $59 billion in combined tax contributions and issued $218.6 billion in compensation, accounting for 2 percent of the country’s total labor income.

According to the AIA report, military aircraft, missiles, space systems and other defense aerospace products accounted for 15 percent, or $13.7 billion, of all A&D exports in 2020. Defense non-aerospace products, including ships, tracked vehicles and artillery represented 5 percent, or $4.1 billion, of the total annual A&D exports.

The Department of Defense helped facilitate the cash flow into the A&D supply chain during the pandemic by advancing about $4 billion in progress payments across 1,400 government contracts in 2020.

The report, which was developed in partnership with IHS Markit, also sheds light on the A&D industry’s involvement in COVID-19 relief efforts and identifies several growth areas for the industry, including small unmanned aerial systems, space commerce and advanced air mobility vehicles.

ExecutiveGov Logo

Sign Up Now! Executive Gov provides you with Daily Updates and News Briefings about Industry News