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

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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.