FOREWORD Each year@ AIA presents Aerospace Facts Figures as a comprehensive accounting of our industry's recent performance. While this year's statistics provide a current snapshot of the health of the aerospace industry@ the numbers are best understood in a historical context. Our business is well known to be cyclical and@ overall@ recent years have been very prosperous for aerospace. We are now headed into a transition. The stormy financial climate that took hold in 2008 continued through last year. Few industries escaped the wrath of a depressed economy; still@ the aerospace industry showed strength and resilience in adverse circumstances. Preliminary results show that industry sales will reach $214.1 billion in 2009@ a record for the sixth straight year. This figure represents an increase of more than four percent over sales of $205.7 billion in 2008. Military aircraft led the growth curve@ while civil aircraft@ missiles and the space sectors also posted increases. While shipments continued to increase this year@ orders and backlog are projected to drop@ reflecting lingering economic turmoil. Aerospace trade also showed signs of weakening in 2009. Nevertheless@ the trade surplus remained a very healthy $54 billion@ the largest of any manufacturing sector and a very positive contribution to the nation's overall trade balance. The outlook for 2010 remains positive@ with sales estimated to improve very modestly to $214.4 billion. As we move past 2010@ the weakened economy is likely to catch up with the aerospace industry. Even so@ all signs are that the dip in this particular cycle should neither be long nor deep. This time will be different than previous down cycles. A resilient industry@ the entry of Boeing's 787 into the marketplace@ strong demand for single-aisle aircraft and expected military recapitalization and modernization all augur well in the out-years. The U.S. aerospace industry provides great benefits to our economy. It is responsible for more than two million middleclass jobs and draws from more than 30@000 suppliers in all 50 states. The industry helps keep our nation secure@ creates advanced technology innovation and makes air travel and space exploration possible. In a time of great challenge@ the industry we represent ?? civil aviation@ national security and space ?? is a bulwark of our democracy. Since our founding in 1919@ AIA has been at the epicenter of the aerospace industry and nothing could be truer today. We are helping our nearly 300 members weather this period of transition@ as well as expanding our portfolio into cyber- and homeland security. In addition to the information included here@ AIA regularly releases updated statistical data. For more aerospace industry information and other useful resources@ visit us online at aia-aerospace.org.