U.S. Aerospace Industry leaves 'modest' 2001 recession in its wake.

Sales of aerospace products are "soaring" thanks to a big increase in military spending, according to the Aerospace Industries Association's annual market analysis. "The good news should continue into next year with growth likely to rival that of 2004," says AIA president John Douglass. "The

Industry sales in 2004 increased by $12 billion to $161 billion, up by 8 percent and reaching the highest level of sales in the industry's history. Profits rose to $10 billion, the highest level in five years.

Military aircraft sales were up 15 percent or $5.9 billion to $46 billion. Sales of civil aircraft increased modestly from 281 units in 2003 to 285 units in 2004. Revenues on the civil side declined by 1.1 percent (or $200 million) to $21 billion. Missile sales increased 10 percent to $14.8 billion, the highest level in 12 years.

Exports increased $3.8 billion to $56.8 billion. Military exports grew 16 percent to $9.8 billion. Total civil aerospace exports increased $2.5 billion to $46 billion, but commercial transport exports fell by $1.1 billion to $18 billion. General aviation aircraft exports increased 42 percent to $1.3 billion. Civil helicopter exports increased 53 percent to $301 million, the best showing in 23 years. Exports of engine parts and aircraft parts increased $1.8 billion to $18.6 billion. Meanwhile, imports declined by $700 million (2.9 percent) to $25 billion, resulting in a trade surplus of $32 billion. The industry achieved its highest trade surplus in 1998 at $41 billion.

Space sector sales increased $2 billion to $38 billion.

General aviation sales increased 1.2 percent to $6.2 billion. Aerospace employment increased by 18,900 to 587,600, reversing a five-slide and building from a 50-year low reached in February.

Total aerospace sales are expected to grow next year by another $12 billion to $173 billion. To view the entire forecast, go to http://www.aia-aerospace.org.