The U.S. aerospace and defense industry is a leading producer of high-tech products and services and is characterized by a net export surplus.

The industry is of strategic importance to the U.S. government due to its direct bearing on national security and its sustained leadership in the global market.

The industry in turn depends to a large extent on the U.S. government for the bulk of its revenue. While the U.S. aerospace and defense industry was significantly affected by the events of September 11, the market is finally on its way to recovery. While the commercial aircraft sector is still stabilizing at a slower rate, the defense and space sectors have recently seen a significant upturn in demand as a result of the global war on terrorism.

This report provides a profit analysis on the Aerospace and Defense Industry in the United States.

Topics covered:

I. Industry Definition

II. Industry Size

III. Industry Segments

IV. Future Outlook

V. Industry Structure

VI. Porter's Five Forces Analysis

a. Bargaining Power of Buyer

i. Government Influence

ii. Avenues for the Growth of Suppliers

iii. Strict Criteria for Selection of Suppliers

iv. Influence of Pentagon

v. Emerging New Markets

b. Bargaining Power of Supplier

i. Buyer's Influence in Manufacturing Processes

ii. Concentration of Suppliers in California

iii. High Bargaining Power of Government

iv. Competition from Foreign Suppliers

c. Competitive Rivalry within Industry

i. Niche Market for U.S. Companies

ii. European Firms in Non-U.S. Market

iii. EU's Competitive Edge

iv. European Competitors

d. Threat of New Entrants

i. Dominance of Large Players

ii. Dual Use of Commercial Products

iii. Strategic Partnerships & New Opportunities

e. Threat of Substitutes

VII. Conclusion

List of Figures and Tables

Figure 1: Structure of U.S. Aerospace and Defense Industry

Figure 2: Porter's Five Forces Analysis

Table 1: SIC Codes

Table 2: NAISC Code