SIC 3761 Manufacturers of Guided Missiles and Space Vehicles
SIC 3761
This category covers establishments primarily engaged in manufacturing guided missiles and space vehicles. This industry also includes establishments owned by guided missile and space vehicle manufacturers and primarily engaged in research and development on these products, whether from enterprise funds or on a contract or fee basis. Establishments primarily engaged in manufacturing guided missile and space vehicle propulsion units and propulsion unit parts are classified in SIC 3764: Guided Missile and Space Vehicle Propulsion Units and Propulsion Unit Parts; those manufacturing space satellites are classified in SIC 3669: Communications Equipment, Not Elsewhere Classified; those manufacturing guided missile and space vehicle airborne and ground guidance, checkout, and launch electronic systems and components are classified in SIC 3812: Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Instruments; and those manufacturing guided missile and space vehicle airframes, nose cones, and space capsules are classified in SIC 3769: Guided Missile and Space Vehicle Parts and Auxiliary Equipment, Not Elsewhere Classified. Research and development on guided missiles and space vehicles, on a contract or fee basis, by establishments not owned by guided missile or space vehicle manufacturers are classified in SIC 8731: Commercial Physical and Biological Research.
336414
Guided Missile and Space Vehicle Manufacturing
In 2003 guided missile and space vehicle manufacturers shipped approximately $13.4 billion worth of goods. This represented an increase in shipments from 2002 but down from the highs of the late 1990s totals of more than $16 billion. As of 2004, the defense market accounted for some 60 percent of the aerospace and defense industry's sales and was only expected to increase. Defense spending was on the rise for the first time in more than a decade—by some 15 percent in 2003 and another 10 percent in 2004—due to the war on terrorism and the war with Iraq. According to the Defense Department, military spending grew from $261 billion in 1999 to $361 billion in 2003. In 2004, with the United States still heavily involved in Iraq, the Department of Defense budget was $380.4 billion.
In contrast, the U.S. space program suffered a blow in the early part of the new century with the highly publicized Columbia space shuttle disaster in February 2003 and ensuing concerns about manned spacecrafts and safety. Already plagued by waning financing from the government for big space projects, the space program's hopes that corporate spending would pick up the slack began to fade. However, in 2004 President George W. Bush announced a new space initiative plan that was expected to help revitalize the space program.
This industry classification comprises a large part of the revenues of the aerospace industry, which is made up of roughly 4,000 companies. However, only about a dozen companies were actively involved in the production of guided missiles and space vehicles, and in the mid-2000s, the five largest establishments (with 2,500 or more employees) accounted for approximately 87 percent of total shipment values. Due to the size and technical scope of aerospace programs, a company that acts as the primary contractor on one project may be a subcontractor on another project. In 2004 the production of missiles accounted for 9 percent of sales in the aerospace industry, and space vehicles (along with related equipment) accounted for 24 percent of sales.
This industry is subdivided by the type of manufacturing workload an establishment undertakes. Basically, three types of manufacturing establishments exist in this industry: manufacturers of conventional, battlefield, and short- to medium-range guided missiles; producers of strategic ballistic, antiballistic, and long-range missiles; and manufacturers of space vehicles.
Establishments rely on state-of-the-art systems management in which a subcontractor, often the major computer hardware supplier, supervises hundreds of companies at one time. The development of systems management in the United States has been credited to this industry.
The history of this industry is characterized by the world political climate and technological developments. In the United States, wars and foreign policy directly affected the production of guided missiles, whereas the space race with the Soviet Union prompted U.S. production of space vehicles. Two major technological developments also have advanced the growth of this industry: the gas turbine engine, developed in the late 1940s for supersonic speed, and the ballistic missile, first developed in the late 1950s for long-range capabilities in war and space exploration.
The aerospace industry emerged from the aftermath of World War II, which introduced jet rockets and atomic weaponry. These developments added to the already growing aviation industry, first established in the late 1920s, with the success of Charles Lindbergh's flight across the Atlantic. Many companies that were in the aviation business later made the transition into aerospace technology by manufacturing missiles for the U.S. military during World War II.
Space vehicles developed into an industry during the mid-1950s, when the United States became engaged in the "space race" against the Soviet Union. Initially, space vehicles explored the earth's upper atmosphere and the moon. The first manned trip to the moon sparked new interest in space technology, with that interest peaking in the late 1960s.
The 1960s also marked tremendous growth in the development of guided missiles. Missiles manufactured in the United States were sold to parties in conflict in the Middle East and to other troubled areas of the world. The production of both missiles and space vehicles decreased during the mid- to late 1970s because of the end of the Vietnam War and the economic recession.
During the 1980s the guided missile portion of this industry hit its all-time peak as a result of renewed defense spending by the Reagan administration. During this "arms race," missile sales escalated from slightly more than $10 billion in 1983 to nearly $14 billion in 1988, according to the Electronic Industries Association. President Reagan also proposed the development of antiballistic strategic defenses, commonly known as the Star Wars initiative, to counter possible Soviet missile attacks.
However, by the end of the 1980s, yet another dramatic shift occurred in this industry. With the fall of the Iron Curtain bringing about the dismantling of the Soviet Union's satellite empire in eastern Europe, and the subsequent dissolution of the Soviet Union itself, U.S. defense spending was greatly reduced. From 1987 to 1994, U.S. Defense Department outlays for aircraft dropped from more than $30 billion to slightly more than $19 billion. Similarly, the government budget for research and development in defense and space technology dropped significantly. This also was due to the explosion of the Challenger space shuttle, in which seven astronauts perished.
Among the types of guided missiles are antitank and assault, antiship, air-to-surface, air-to-air, and surface-to-air. Antitank and assault missiles were developed in the United States after World War II (although some accounts have Germany developing these missiles near the end of the war). These missiles were first installed on light trucks and helicopters and were equipped with warheads to penetrate armor. In early models, tracking was visual, with commands controlled by a hand-operated system transmitted by wire. Later, anti-tank missiles transmitted commands by radio, laser, and infrared homing techniques. By the 1980s, optical fibers had become the standard guidance device for these missiles.
Anti-ship missiles were designed to fight against the heavy armor of warships. These types of guided missiles received little attention by U.S. manufacturers after World War II until the Soviet Union began developing them. The United States countered with turbojet-powered missiles such as the Harpoon, which weighed about 1,200 pounds and carried a warhead weighing 420 pounds. Later, the U.S. Navy Tomahawk introduced a new type of anti-ship missile—a long-range cruise missile intended for strategic nuclear defense. Its anti-ship version carried a modified Harpoon guidance system. By the 1980s, anti-ship missiles were developed for stealth aircraft with visual, infrared, and radar tracking.
Air-to-surface missiles became...
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