netrashetty
MP Guru
JL Audio is a manufacturer of consumer audio products. They produce marine, home, and mobile audio products, but are best known for their subwoofers. JL Audio is known as one of the pioneers of the car audio industry.
The industry was expected to have a moderate to strong increase in the value of shipments made in 1999 compared with 1998. The total value of shipments by the U.S. aerospace industry in 1998 was $145 billion, a 2.2 percent increase over 1997. In the first half of 1999, compared with the same period in 1998, shipments increased 1.8 percent and new orders grew 0.8 percent. Deliveries of complete civil aircraft and engines reached $48 billion in 1998, an increase of 34 percent over the 1997 level. U.S. aerospace exports increased 27 percent in 1998 compared with 1997. U.S. defense procurement in fiscal year (FY) 1998 (including new buys, modifications, and parts) totaled $14 billion for aircraft and $3.8 billion for missiles and space equipment.
Defense Industry
Reversing 15 years of decline, total procurement from all industry sectors by the U.S. Department of Defense (DOD) in FY 1998 rose slightly to $128.8 billion, in comparison to $128.4 billion in 1997. The total outlay was significantly lower than the peak of $163.7 billion reached in 1985. The largest prime contractors in the U.S. defense industry— Lockheed Martin and Boeing—were each awarded over $10 billion in prime contracts in FY 1998. The third largest, Raytheon, received $5.7 billion in prime contract awards. Rounding out the list of the top 10 prime contractors in 1998 were General Dynamics, Northrop Grumman, United Technologies, Textron, Litton Industries, Newport News Shipbuilding, and TRW (with $1.3 billion). The largest military aviation development program is the multirole Joint Strike Fighter (JSF), which will be produced for the U.S. Air Force and Marines and the U.S. and British navies. Three thousand JSFs are planned for manufacture over several years to replace aging F-16s and other aircraft. Competition for the role of primary contractor for the JSF has been narrowed to Boeing and Lockheed Martin as the program enters the prototype and testing stages.
With the United States accounting for 46 percent of the world’s inventory of tactical combat aircraft, the export potential of the JSF is envisioned to be high, although it may not be available for exportation before the year 2010. Foreign competition would come largely from the newly developed Eurofighter Typhoon, Dassault’s Rafale or Mirage, and Russia’s MiG and Sukhoi combat aircraft.
Other aircraft in various stages of development include Lockheed Martin’s multi-billion-dollar F-22 Raptor program to replace F-15s, large transports to replace the C-130s, and new bombers, helicopters, and refuelers. Fearing that a single supplier could emerge in Europe and resisting further domestic consolidation, DOD is encouraging transatlantic partnerships. The Balkan war accelerated the impetus for U.S. partnerships with European industry stemming from concerns about the existing technology gaps and lack of interoperability that hindered NATO’s effectiveness. In 1998, deliveries of new military aircraft to foreign customers rose to $3.6 billion, an increase of 57 percent compared with 1997. U.S. arms exports as measured by agreements signed (actual deliveries can lag several years) totaled $7.1 billion in 1998. While the United States continued to dominate global export markets with almost a third of total military exports worldwide, the market is considerably smaller than the $37 billion in sales reached in 1993.
Developing countries, which can stage the fiercest competition among military suppliers, purchased some $4.6 billion of U.S. arms in 1998, compared with $2.4 billion from France and less than $2 billion each from Germany, the United Kingdom, and Russia. Middle Eastern countries such as Saudi Arabia, Kuwait, the United Arab Emirates, Egypt, and Israel continue to be some of the largest purchasers of arms. In Asia, Malaysia led with $2.1 billion in imports. The top recipients of arms deliver-ies in 1998 were Saudi Arabia, Taiwan, Singapore, and South Korea.
Aircraft
This sector consists of large transports, general aviation aircraft, rotorcraft, and unmanned aerial vehicles. Large Transports. The large civil aircraft sector includes commercial passenger and cargo aircraft with an operating empty weight greater than 15,000 kilograms and two, three, or four engines. Passenger aircraft in this category can accommodate at least 70 passengers. The Boeing Company is the only manufacturer of such aircraft in the United States.
Economic growth is expected to continue to be the main stimulus for aircraft demand. A decline in economic growth that followed the 1997–1998 financial troubles in Asia resulted in a decrease in airline traffic in that region. That decline had a negative impact on the airlines’ revenue and overall cash flow, resulting in a decreased demand for aircraft. However, nations such as India and China are expected to experience growth in air travel as they climb the economic development curve. In mid-1999, there were signs of economic recovery in Asia, especially South Korea, Singapore, and Thailand, as those countries began to emerge from the Asian financial crisis. China, Australia, and New Zealand continued to maintain stable economies, and U.S. and European economies remained strong. Air travel remains brisk, aging domestic fleets are being phased out and replaced with new planes, and overseas travel continues to grow. These factors are expected to spur demand for new aircraft over the next 5 years.
Industry experts foresee an overall production downturn in the year 2000. On the basis of announced manufacturing rates, 1999 was expected to be the peak year in total aircraft production, with the global industry delivering about 920 jets. The outlook for 2000 is estimated to be below 1999 levels, with about 800 jets expected to be delivered. U.S. production of large civilian transports was expected to reach about 620 aircraft in 1999 and about 480 in 2000.
In the early years of the twenty-first century, technology may take a back seat to efficiency. Rather than creating entirely new passenger aircraft that will fly faster, higher, and farther on less fuel, large aircraft manufacturers are more likely to modify existing designs; this will reduce production costs, pollutants, and noise and add more seats. Stiff price competition between Boeing and Airbus will continue.
U.S. government funding for aeronautical research and development decreased significantly with the cancellation in 1999 of the National Aeronautics and Space Administration’s (NASA) funding for the High Speed Research and Aviation Subsonic Technology programs.
One of the most significant new influences on twenty-firstcentury aircraft will be the environment. Next-generation and future aircraft will be required to meet new and increasingly more stringent environmental protection requirements for engine emissions in keeping with the U.S. Clean Air Act and the Kyoto Protocol.
Fair trade principles should stimulate new services in the twenty-first-century air transport market. Improved market access would promote greater freedom for developing commerce, particularly among the three largest trading partners: North America, Europe, and Japan (see Tables 21-4 and 21-5). Air traffic is expected to grow at an average annual rate of 5 percent through 2005.
The industry has had a gradual expansion, especially in productivity, increasing the number of firms approximately 7% in the 5 year period between 1997 and 2002, but shedding about 18,000 workers in the same period - or almost 19%
The industry was expected to have a moderate to strong increase in the value of shipments made in 1999 compared with 1998. The total value of shipments by the U.S. aerospace industry in 1998 was $145 billion, a 2.2 percent increase over 1997. In the first half of 1999, compared with the same period in 1998, shipments increased 1.8 percent and new orders grew 0.8 percent. Deliveries of complete civil aircraft and engines reached $48 billion in 1998, an increase of 34 percent over the 1997 level. U.S. aerospace exports increased 27 percent in 1998 compared with 1997. U.S. defense procurement in fiscal year (FY) 1998 (including new buys, modifications, and parts) totaled $14 billion for aircraft and $3.8 billion for missiles and space equipment.
Defense Industry
Reversing 15 years of decline, total procurement from all industry sectors by the U.S. Department of Defense (DOD) in FY 1998 rose slightly to $128.8 billion, in comparison to $128.4 billion in 1997. The total outlay was significantly lower than the peak of $163.7 billion reached in 1985. The largest prime contractors in the U.S. defense industry— Lockheed Martin and Boeing—were each awarded over $10 billion in prime contracts in FY 1998. The third largest, Raytheon, received $5.7 billion in prime contract awards. Rounding out the list of the top 10 prime contractors in 1998 were General Dynamics, Northrop Grumman, United Technologies, Textron, Litton Industries, Newport News Shipbuilding, and TRW (with $1.3 billion). The largest military aviation development program is the multirole Joint Strike Fighter (JSF), which will be produced for the U.S. Air Force and Marines and the U.S. and British navies. Three thousand JSFs are planned for manufacture over several years to replace aging F-16s and other aircraft. Competition for the role of primary contractor for the JSF has been narrowed to Boeing and Lockheed Martin as the program enters the prototype and testing stages.
With the United States accounting for 46 percent of the world’s inventory of tactical combat aircraft, the export potential of the JSF is envisioned to be high, although it may not be available for exportation before the year 2010. Foreign competition would come largely from the newly developed Eurofighter Typhoon, Dassault’s Rafale or Mirage, and Russia’s MiG and Sukhoi combat aircraft.
Other aircraft in various stages of development include Lockheed Martin’s multi-billion-dollar F-22 Raptor program to replace F-15s, large transports to replace the C-130s, and new bombers, helicopters, and refuelers. Fearing that a single supplier could emerge in Europe and resisting further domestic consolidation, DOD is encouraging transatlantic partnerships. The Balkan war accelerated the impetus for U.S. partnerships with European industry stemming from concerns about the existing technology gaps and lack of interoperability that hindered NATO’s effectiveness. In 1998, deliveries of new military aircraft to foreign customers rose to $3.6 billion, an increase of 57 percent compared with 1997. U.S. arms exports as measured by agreements signed (actual deliveries can lag several years) totaled $7.1 billion in 1998. While the United States continued to dominate global export markets with almost a third of total military exports worldwide, the market is considerably smaller than the $37 billion in sales reached in 1993.
Developing countries, which can stage the fiercest competition among military suppliers, purchased some $4.6 billion of U.S. arms in 1998, compared with $2.4 billion from France and less than $2 billion each from Germany, the United Kingdom, and Russia. Middle Eastern countries such as Saudi Arabia, Kuwait, the United Arab Emirates, Egypt, and Israel continue to be some of the largest purchasers of arms. In Asia, Malaysia led with $2.1 billion in imports. The top recipients of arms deliver-ies in 1998 were Saudi Arabia, Taiwan, Singapore, and South Korea.
Aircraft
This sector consists of large transports, general aviation aircraft, rotorcraft, and unmanned aerial vehicles. Large Transports. The large civil aircraft sector includes commercial passenger and cargo aircraft with an operating empty weight greater than 15,000 kilograms and two, three, or four engines. Passenger aircraft in this category can accommodate at least 70 passengers. The Boeing Company is the only manufacturer of such aircraft in the United States.
Economic growth is expected to continue to be the main stimulus for aircraft demand. A decline in economic growth that followed the 1997–1998 financial troubles in Asia resulted in a decrease in airline traffic in that region. That decline had a negative impact on the airlines’ revenue and overall cash flow, resulting in a decreased demand for aircraft. However, nations such as India and China are expected to experience growth in air travel as they climb the economic development curve. In mid-1999, there were signs of economic recovery in Asia, especially South Korea, Singapore, and Thailand, as those countries began to emerge from the Asian financial crisis. China, Australia, and New Zealand continued to maintain stable economies, and U.S. and European economies remained strong. Air travel remains brisk, aging domestic fleets are being phased out and replaced with new planes, and overseas travel continues to grow. These factors are expected to spur demand for new aircraft over the next 5 years.
Industry experts foresee an overall production downturn in the year 2000. On the basis of announced manufacturing rates, 1999 was expected to be the peak year in total aircraft production, with the global industry delivering about 920 jets. The outlook for 2000 is estimated to be below 1999 levels, with about 800 jets expected to be delivered. U.S. production of large civilian transports was expected to reach about 620 aircraft in 1999 and about 480 in 2000.
In the early years of the twenty-first century, technology may take a back seat to efficiency. Rather than creating entirely new passenger aircraft that will fly faster, higher, and farther on less fuel, large aircraft manufacturers are more likely to modify existing designs; this will reduce production costs, pollutants, and noise and add more seats. Stiff price competition between Boeing and Airbus will continue.
U.S. government funding for aeronautical research and development decreased significantly with the cancellation in 1999 of the National Aeronautics and Space Administration’s (NASA) funding for the High Speed Research and Aviation Subsonic Technology programs.
One of the most significant new influences on twenty-firstcentury aircraft will be the environment. Next-generation and future aircraft will be required to meet new and increasingly more stringent environmental protection requirements for engine emissions in keeping with the U.S. Clean Air Act and the Kyoto Protocol.
Fair trade principles should stimulate new services in the twenty-first-century air transport market. Improved market access would promote greater freedom for developing commerce, particularly among the three largest trading partners: North America, Europe, and Japan (see Tables 21-4 and 21-5). Air traffic is expected to grow at an average annual rate of 5 percent through 2005.
The industry has had a gradual expansion, especially in productivity, increasing the number of firms approximately 7% in the 5 year period between 1997 and 2002, but shedding about 18,000 workers in the same period - or almost 19%
Last edited: