The Aerospace Industries Association (AIA), in collaboration with S&P Global Market Intelligence, today released the 2024 edition of “Facts & Figures,” a glimpse into the strength of the aerospace and defense (A&D) industry and its contribution to the U.S. economy, both at the national and state levels. Informed by 2023 data, key findings in this study measure the economic contributions made by the A&D industry in terms of employment, contribution to gross domestic product (GDP), sales, labor income, and taxes.
“This year’s Facts and Figures shows that the American aerospace and defense industry continues to be an economic powerhouse – outpacing national averages for job creation and wages and contributing significantly to global trade, national security, and technology leadership,” said Eric Fanning, AIA’s President and CEO. “We take pride in maintaining the gold standard in aviation, delivering cutting-edge equipment for modern warfighters, and enabling international collaboration with our allies and partners. With our world-class workforce, advanced supply chain, and high-quality innovations, the American aerospace and defense industry stands as one of our country’s strongest strategic assets.”
In 2023, the U.S. aerospace and defense industry reached an impressive milestone, generating over $955 billion in sales—a 7.1 percent increase from the previous year. This substantial growth emphasizes the industry’s economic influence, with each million dollars in end-use sales supporting four jobs across both end-use manufacturing and the supply chain.
Nearly 60 percent of jobs in industry are directly linked to the supply chain, translating to approximately 1,298,036 jobs. This highlights the supply chain’s foundational importance in driving industry employment and economic growth.
The A&D industry’s robust workforce now stands at 2.211 million employees, representing 1.4 percent of the nation’s total employment base. Annual wage growth in the A&D sector consistently surpasses national averages, with the average labor income per job reaching $112,000. The A&D industry continues to contribute significantly to the economy, generating $248 billion in labor income, which accounts for two percent of the nation’s total labor income. Driven by escalating demand, the A&D workforce has surged by an impressive 4.8 percent from 2022 to 2023, outpacing the national average growth rate of 1.7 percent. This expansion underscores the industry’s pivotal role in shaping a prosperous future.
Find more information on Facts and Figures, including graphic resources, here.
Facts and Figures Data, collected for the 2023 calendar year:
GDP/SALES
· The A&D industry generated $955 billion in total business output in 2023. Output directly from the industry totaled $533 billion, and an additional nearly $422 billion in indirect activity was generated through the domestic A&D supply chain.
· The A&D industry generated $425 billion in economic value, representing 1.6 percent of the 2023 nominal GDP in the U.S.
· The contribution to federal tax receipts from the A&D industry was $56.8 billion, making up 2 percent of the total tax revenues received by the federal government.
EMPLOYMENT
· In 2023, the American A&D industry supported more than 2.2 million workers, encompassing the design and production of end-market goods and services as well as the entire industry supply chain.
· The commercial aerospace sector makes up 47 percent of the industry’s direct employment with the defense and national security sector comprising the remaining 53 percent. This study divides the A&D industry into four key subsectors, and of those the aeronautics/aircraft is the largest employer, directly employing 462,000 workers. The land and sea systems subsector is the next largest with more than 186,000 workers, followed by the space subsector with 145,000 workers, and the cyber sector with 118,000 employed in 2023.
· Jobs supported by the U.S. A&D industry represent 1.4 percent of the nation’s total employment base.
· The average labor income per job within the A&D industry (both producers of end-use goods and services as well as the supply chain) amounted to $112,000, approximately 50 percent above the national average – reflecting the highly skilled nature of the workforce.
· The commercial aerospace sector makes up 47 percent of the industry’s direct employment with the defense and national security sector compromising the remaining 53 percent.
· $248 billion in labor income supported by the A&D industry represented nearly two percent of the nation's total labor income.
