The Competitive Status of the U.S. Civil Aviation Manufacturing Industry: A Study of the Influences of Technology in Determining International Industrial Competitive Advantage (1985)

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OVERVIEW OF THE U.S. CIVIL AVIATION MANUFACTURING INDUSTRY 18 1— Overview of the U.S. Civil Aviation Manufacturing Industry The civil aviation industry, including both manufacturers of aircraft and the commercial airlines, is in the midst of profound change. Some features of the change result from domestic actions and circumstances (for example, economic deregulation of air transport and the severe 1980–1981 recession), others from external developments (such as viable competition from Airbus Industrie in the large transport sector and erosion of U.S. industry leadership in international sales of civil helicopters, commuter aircraft, and business aircraft). The long-term implications of these changes are by no means clear. What is clear is that the stakes are of national importance because civil aviation is unique. Few other industries combine in as large a measure a crucial role in national security, a major contribution to national economic health and foreign trade, and a flagship role in the global posture of technical leadership accorded the United States. This study focuses on aircraft manufacture, but its connection with civil air transport is so close that some current and prospective features of the latter must be included. Full assessment also requires examination of the relationship of civil industry to military activity. The civil aviation manufacturing industry can be divided into two broad categories. One comprises large aircraft and their parts, jet engines, and avionics and support equipment used in national and international air transport. The other is more heterogeneous—including rotorcraft, regional transport, business aircraft, and light piston aircraft and their parts, avionics, and engines. This study covers both categories and notes where findings and recommendations do not apply to both.