The Naval Aircraft Factory, the American Aviation Industry, and Government Competition, 1919–1928

The economics of the American aircraft manufacturing industry have been determined in large measure by government aviation policies and the market for military airplanes. This was most apparent in the 1920s, when the industry suffered from sharply reduced military orders and an almost nonexistent demand for civilian aircraft. Struggling for survival, manufacturers singled out the Naval Aircraft Factory, a large navy-owned and run facility in Philadelphia, as at least partially responsible for the dislocation of their industry; they insisted that it and other forms of “government competition†be eliminated. Professor Trimble explores in this article how the ensuing controversy caused naval and civilian officials in the 1920s to develop policies that integrated the factory into naval aircraft procurement and helped to ameliorate the problems of private aircraft contractors.