U.S. Aerospace & Defense Industry

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U.S. Aerospace & Defense Industry

U.S. Aerospace & Defense Industry


This report is aimed at identifying and understanding the behaviour of American industries, specifically the Aerospace and Defence (A&D) industry. The report is intended to provide an ongoing analysis of the A&D industry. Accordingly, this study is classified into four parts; first part of the report focuses on the identification of the strengths and weaknesses of the selected industry. Second part focuses on the impact of environmental standards on the performance of the individuals, governments and companies. In third part, trade deficit of the United States is elaborated. However, last part of the report is aimed at explaining the concept of comparative and absolute advantage from the perspective of United Sates.


1) Aerospace industry and its importance in the economic development of the United States

US's aerospace industry is playing a very significant role in the development of the overall economy of the country. It is estimated that A&D industry of United States is employing around 1.05 million workers directly in 2010. These workers are contributing a lot for the welfare and strengthening of the United States. Annual wages received by these workers are around $ 84.2 billion, out of which $ 1.9 billion and $ 15.4 billion is paid out in the form of state individual income tax and U.S Federal taxes respectively. In addition, it is observed that Federal government employs around 845198 aerospace skilled workers (defence skilled workers) in NASA (National Aeronautics & Space Administration), FAA (Federal Aviation Administration), defence repair deposits, and other defence agencies such as DARPA (Defence Advances Research Project Agency.

Apart from its contribution in the country's GDP the A&D industry has contributed a lot in the development of the social sector of the country. Industry has gained tremendous growth in a very short span of time, to some extent it has shaped the way we live, work, and travel. Also, industry has provided sophisticated surveillance equipments that keep our war fosters out of harm and ensures the reduction of tension and casualties. Declines in the defence budget due to severe economic challenges have affected the opportunities of research and development and employment associated with the A&D industry, in addition.

The Aerospace and Defence Industry in the U.S. has been making efforts over the past several years in order to increasingly become global. In order to serve the increasing needs of the global market, the companies are tying up huge sums of investments. And not only to offer their market offerings but initiating there operations in the market they want to enter too. The companies operating in the other countries or region, such as those operating in Europe, have become increasingly a part of the aerospace and defence industry in the U.S. Those companies are assisting in augmenting the U.S. aerospace and defence industry through the purchase of the businesses either or at least establishing a subsidiary or associate in the U.S. market, the largest defence market around the globe. Foreign owned companies have contributed in ...