U.S. DEFENSE EXPORTS
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U.S. Defense Exports: Statistical Overview and Economic Impact Analysis 1 U.S. DEFENSE EXPORTS Statistical Overview and Economic Impact Analysis for 2018 February 2018
Transcript of U.S. DEFENSE EXPORTS
U.S. Defense Exports: Statistical Overview and Economic Impact Analysis 1
U.S. DEFENSE EXPORTS Statistical Overview and Economic Impact Analysis for 2018
February 2018
U.S. Defense Exports: Statistical Overview and Economic Impact Analysis 2
The U.S. defense industry, which is composed of firms that manufacture defense equipment and supply defense-related parts and services, generated $20 billion1 worth of exports in 2017, or 1.3 percent of total U.S. exports for that year. Over the past ten years, U.S. exports of defense equipment, along with exports of defense equipment from foreign U.S. competitors, grew considerably as regional instabilities drove many countries to bolster and modernize their military capabilities. Indeed, between 2010 and 2016, the global share of U.S. defense exports remained relatively unchanged at 32 percent, despite a 20 percent jump in total defense exports.2 On a geographic basis, the largest customers for U.S. defense equipment were the Asia-Pacific and the Middle East, which collectively accounted for 62 percent of total defense exports in 2017, or $12.5 billion. Defense exports to the Americas, Africa and Europe accounted for the remaining 38 percent, or $7.5 billion. With regard to content, U.S. defense exports continue to be dominated by aerospace platforms, parts and components, which accounted for nearly 69 percent of total defense exports in 2017, or $13.9 billion, while exports of land systems, sea systems and weapons accounted for the remaining 31 percent, or $6.2 billion.
TOTAL U.S. DEFENSE EXPORTS CALENDAR YEARS 2007-2017 DOLLARS IN BILLIONS
1. Aerospace Industries Association, based on data retrieved from the U.S. Department of Commerce, 2018. 2. Stockholm International Peace Research Institute, Arms Transfers Database. Database accessed on January 12, 2018.
7.6
13.411.6 11.5 11.0
13.4 14.016.1 15.4 16.2
13.9
3.8
3.6
3.7 4.2 4.3
4.4 4.3
5.2 5.66.1
6.2
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
U.S. DEFENSE EXPORTS 2018 STATISTICAL OVERVIEW AND ECONOMIC IMPACT ANALYSIS
2007-2017: +75%
10YR CAGR: 5.7%
11.5
17.0
15.2 15.7
18.3
21.3
15.3
17.9
21.1 22.3
20.0
DEFENSE NON-AEROSPACE
DEFENSE AEROSPACE
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TOTAL U.S. DEFENSE EXPORTS BY SECTOR AND SUBSECTOR CALENDAR YEARS 2012-2017 DOLLARS IN MILLIONS
2012 2013 2014 2015 2016 2017
TOTAL U.S. DEFENSE EXPORTS $17,869 $18,303 $21,277 $21,047 $22,367 $20,035
TOTAL DEFENSE AEROSPACE $13,431 $13,963 $16,061 $15,420 $16,205 $13,865 Complete Aircraft $3,446 $2,802 $5,052 $3,682 $4,541 $2,464 Fighters and Bombers 737 0 0 0 469 648 Transports 1,410 1,450 2,965 1,520 1,411 779 Helicopters 690 948 1,618 1,886 2,266 783 Other Fixed Wing 161 110 177 242 228 201 Used and Rebuilt Aircraft 447 294 292 34 167 52
Aircraft Engines 437 634 952 740 582 667 Piston 66 157 188 148 119 218 Turbine 371 476 764 592 463 449
Aircraft and Engine Parts 7,356 7,382 7,264 7,712 7,914 7,799
Missiles, Rockets, and Parts 1,739 2,580 2,273 2,725 2,695 2,441
Spacecraft, Satellites, and Partsa 453 565 519 561 472 495
TOTAL DEF. NON-AEROSPACE $4,438 $4,341 $5,217 $5,627 $6,163 $6,170
Armored Fighting Vehicles 392 611 440 735 1,276 1,300 Armored Vehicles 329 493 260 565 1,174 1,282 Tracked Armored Vehicles 62 118 180 171 102 18
Weapons 371 405 474 356 378 442 Artillery 111 32 48 88 61 59 Small Arms and Light Weapons 192 326 372 188 270 369 Other Military Weapons 68 46 54 79 48 14
Armored Vehicle & Weapon Parts 1,289 1,122 1,169 1,275 1,259 1,177
Warships and Submarines 28 30 297 260 24 11
Bombs, Mines, Projectiles, & Parts 809 539 672 691 1,163 1,391
Ammunition Cartridges and Parts 404 367 381 470 458 394
Other Equipment and Materials 1,144 1,267 1,783 1,839 1,604 1,455
Source: Aerospace Industries Association (AIA), based on data from the U.S. Department of Commerce, 2018.
Note(s): Totals may not equal sum of terms due to rounding. Commodity classifications based on the U.S. Harmonized Tariff Schedule. a. Includes training devices, parachutes, and parts.
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U.S. DEFENSE EXPORTS BY GEOGRAPHY CALENDAR YEARS 2012-2017 DOLLARS IN MILLIONS
TOP TEN COUNTRIES 2012 2013 2014 2015 2016 2017
Saudi Arabia $ 637 $ 934 $ 2,210 $ 2,312 $ 2,466 $ 2,882 Australia 862 645 1,026 1,792 1,654 1,705 Japan 1,713 1,495 1,410 1,316 1,467 1,318 United Arab Emirates 1,681 1,595 720 1,295 1,386 1,232 Mexico 545 451 791 1,119 943 1,063 Canada 610 656 540 435 501 985 South Korea 1,348 1,282 1,481 1,184 2,512 922 United Kingdom 1,031 910 1,094 1,395 884 897 India 166 1,439 1,607 600 233 766 Israel 602 682 972 908 897 706
BY GLOBAL REGION a
Asia-Pacific $ 5,988 $ 7,470 $ 8,513 $ 8,068 $ 8,318 $ 6,430
Middle East 4,584 4,006 5,611 5,492 6,734 6,079
Europe 4,671 3,962 4,294 4,731 4,528 4,373
Americas 2,109 2,052 1,967 2,069 1,871 2,546
Africa 485 752 884 965 486 362
Source: Aerospace Industries Association (AIA), based on data from the U.S. Department of Commerce, 2018.
a. Sum of global regions may not equal year-totals due to overlapping region definitions.
Commodity classifications based on the U.S. Harmonized Tariff Schedule.
U.S. FOREIGN MILITARY SALES PROGRAM CALENDAR YEARS 2011-2016 DOLLARS IN MILLIONS
CATEGORY 2011 2012 2013 2014 2015 2016
Foreign Military Sales Agreements $ 25,884 $ 62,782 $ 23,547 $ 31,439 $ 44,949 $ 27,532
Foreign Military Sales Deliveries 13,235 13,765 15,176 14,866 16,497 16,840
Source: Defense Security Cooperation Agency (DSCA), Historical Facts Book: As of September 30, 2016.
http://www.dsca.mil/resources/dsca-historical-facts-book-fiscal-year-series
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ECONOMIC IMPACT ANALYSIS OF U.S. DEFENSE EXPORTS This report estimates the economic contribution of U.S. defense exports to the national economy. U.S. defense exports have far-reaching economic impacts. While some of these impacts cannot be measured quantitatively, this analysis captures economic activity generated by the manufacture of defense-specific platforms, components and parts using trade data available from the U.S. Department of Commerce and the International Trade Commission. In 2017, the U.S. defense industry generated $20 billion worth of exports, which supported 204,070 U.S. jobs and generated $51.9 billion in total economic output. Reflecting the high value-add nature of defense manufacturing, the jobs multiplier for defense exports was 3.6. In other words, for every direct industry job supported by defense exports manufacturing, 3.6 additional jobs were supported throughout the U.S. economy. Lastly, the average annual wage of an industry job supported by defense exports was $106,500, or 106 percent above the national average wage, while the average wage for all jobs supported by defense exports was $73,030, or 41 percent above the national average.
U.S. ECONOMIC IMPACT OF DEFENSE EXPORTS IN 2017
IMPACT TYPE EMPLOYMENT LABOR INCOME VALUE ADDED OUTPUT
Direct Effect 44,520 $4,741,418,760 $7,186,156,810 $18,580,359,8701
Indirect Effect 65,990 5,362,461,960 8,191,554,240 18,007,996,840
Induced Effect 93,560 4,800,360,030 8,526,394,840 15,268,171,450
Total Effect 204,070 $ 14,904,240,740 $ 23,904,105,890 $ 51,856,528,160
Methodology:
Total economic impact is calculated by the summation of direct, indirect and induced impacts of a given industry’s spending on payroll, purchasing and construction. This is a standard definition for economic impact studies and is used in this report to estimate the unique economic contribution that defense exports make to the U.S. economy. The data used to measure the direct economic impacts of defense exports were collected from the U.S. Department of Commerce and the International Trade Commission. This analysis estimated those impacts by categorizing the value of defense exports which were then entered into a customized IMPLAN economic model. Direct and indirect impacts represent the primary impact of defense manufacturing on the U.S. economy. Induced impacts result from spending made by industries identified in the measurement of direct and indirect impacts to supporting businesses and entities, as well as the spending of direct and indirect employees. Induced impacts capture the secondary impacts to the economy as direct and indirect sales, along with payroll impacts that are circulated to supporting industries through multiplier effects.
1. Defense exports, as defined for the purposes of this analysis, exclude $1.5 billion of miscellaneous defense goods that are non-attributable to a specific IMPLAN sector.
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CONTACT INFORMATION Aerospace Research Center Aerospace Industries Association 1000 Wilson Blvd. Suite 1700 Arlington, Virginia 22209 Phone: 703-358-1089 Email: [email protected] Web: www.aia-aerospace.org
