A new study commissioned by the Aerospace Industries Association (AIA) from business information firm IHS, Inc., was released on Monday highlighting the positive impact that the aerospace and defense industry has on the American economy.
“This new study demonstrates definitively that America’s aerospace and defense industry is an engine of economic progress, in addition to its having a vital role in helping keep our citizens safe and secure,” AIA President and CEO David F. Melcher said. “When you hear people talk about the importance of ensuring we keep good manufacturing jobs in the U.S., you can start with the solid foundation of our industry.”
The report estimates that the industry supported 1.7 million jobs, with approximately 531,000 employees working in civil and general aviation aircraft, helicopters and space systems. An additional 511,000 jobs are supported by the defense and national security segment of the industry. Additionally, the industry represents approximately two percent of the nation’s employment base and 13 percent of the nation’s manufacturing and employment base.
The industry also generated $300 billion in economic value, representing 1.8 percent of the total nominal gross domestic product and 10 percent of the manufacturing output.
The report also found that the industry produced labor income approximately 44 percent above the national average and that it provided tax receipts to federal, state and local governments from companies and employees of approximately $63 billion.