Killing the Last Great American Industry

onewhippedpuppy · 03-04-2009, 04:56 AM

http://www.usatoday.com/money/industries/manufacturing/2009-03-02-corporate-jet-makers_N.htm

Great article in USA Today regarding the general aviation industry, and how the current ignorance in Washington is helping to destroy it. Lots of content (and a picture) from the company I work for. Also a nice sidebar on Wichita.

How many industries are left in America where we are the world leader in building something tangible that is actually exported? While they pump billions into automakers that are destined for failure in the name of jobs, out of the other side of their mouths they blackball an industry that employs hundreds of thousands of Americans and is PROFITABLE. I wish people could move beyond their preconceived notions and realize that business aviation is a valuable tool, even for small or medium sized businesses. Yes, it CAN be an excess, but it can also be incredibly valuable.

Porsche-O-Phile · Porsche-O-Phile's Garage

People have very short memories. They forget that it was only 15-or-so years ago that Congressional limitation on aircraft manufacturer liability was required in the form of the General Aviation Revitalization Act in order to allow manufacturers to even return to making a lot of their light aircraft models. Liability had completely killed light aircraft manufacture in the U.S.

Yes, I sadly think the current economic situation will be the death knell for a lot of domestic aircraft production. Very sad when you consider what huge strides/advances have been made in the industry the last few years - introduction of new microjets, new composite construction aircraft, new "high-tech" (and arguably safer) light aircraft, etc. If/when the economic slide we're currently in finally stops, I suspect the market for G.A. aircraft (particularly light G.A. aircraft) will be pretty well destroyed. For me personally this isn't so bad, as I imagine I'll be able to finally pick up that Mooney I've always wanted for reasonably cheap, but it will almost certainly ruin what was an area/sector of the economy that was making a nice comeback for the foreseeable future. Not just light aircraft either - even larger/corporate-type G.A. aircraft. Extremely sad.

Another growth industry that I see is threatened is the guns/firearms industry, but that's another discussion. Aside from airplanes and guns, what's even manufactured in the U.S. anymore? Tractors & farm equipment maybe? There ain't much left...

More on the G.A. Revitalization Act of '94 for those interested: http://www.avweb.com/news/news/184254-1.html

charleskieffner · 03-04-2009, 05:32 AM

yep a good portion of honeywell phx mfg. is going to check(cz) republic and messiko. i cant wait to fly again with that QC in place!

Jim Richards · 03-04-2009, 06:41 AM

I thought the last last great American industry was our breweries and distilleries.

Jim Richards · 03-04-2009, 06:42 AM

How much does our aviation industry rely on component/subsystem outsourcing?

onewhippedpuppy · 03-04-2009, 06:43 AM

Quote:

Originally Posted by Jim Richards

I thought the last last great American industry was our breweries and distilleries.

As American as Budweiser. Wait a second..............

RoninLB · 03-04-2009, 06:43 AM

Jim Richards · 03-04-2009, 06:44 AM

brilliant!

onewhippedpuppy · 03-04-2009, 06:49 AM

Quote:

Originally Posted by Jim Richards

How much does our aviation industry rely on component/subsystem outsourcing?

Not nearly as heavily as the auto industry, but there's still a large degree of domestic outsourcing. I insert the domestic caveat because unlike the auto industry, most airplanes don't have a lot of made in China parts. Thanks to the FAA we have to have control and documentation of every material that goes into every part that goes into every component that goes into every airplane. You literally have to be able to trace back to the raw material. That becomes even more challenging when you're dealing with an international supplier. Then there's the obvious quality control issues, along with ITAR and export control considerations.

Much like the auto industry though, that's the secondary impact. The suppliers are being hit just as hard as the manufacturers because orders are being cut. Unlike the bigger manufacturers though, many of the suppliers are small companies that can't absorb a 50% decrease in orders. Wichita has hundreds of small suppliers for the aircraft industry, many probably won't survive this downturn.

berettafan · 03-04-2009, 07:02 AM

i know diddly about the aircraft industry but other 'great American industries' that have gone/are going bye-bye (steel, autos, etc) were built on business practices that could not be sustained. outrageous pay scales and defined benefits instead of defined contributions....in those cases we sold our future for the benefit of the 'greatest generation'.

onewhippedpuppy · 03-04-2009, 08:27 AM

Up until the last 6 months or so the aircraft industry is the best it's every been, so that's not the case here. In this case the brain-dead government has made it taboo to own our products. Obviously the market is hurting as well, but the government's irresponsible comments have directly lead to a number of companies selling off their existing aircraft or cancelling orders. And who knows how many potential customers this negative perception will deter?

stevepaa · 03-04-2009, 09:04 AM

I think you are over reacting. The automakers should not have flown in their private jets, and the comments were directed only at them. If your business is successful, there is no taboo on owning jets. Sounds as if some companies are using the comments as an excuse to cacel orders.

tabs · 03-04-2009, 10:11 AM

Impoverished america

onewhippedpuppy · 03-04-2009, 10:14 AM

Steve, there's been a multitude of articles on this subject. I believe even the NY Times had an article on it. The original stimulus bill had a provision that any company receiving stimulus money was not allowed to own aircraft, fortunately the KS reps and aviation groups were able to get it removed. Obama himself has made multiple comments about not having CEOs "flying around on their corporate jets". Citigroup cancelled an order for a jet and sold several used ones thanks to increased scrutiny regarding business jets.

I'm not saying that it's the ONLY issue facing the industry. Obviously the overall poor state of the global economy and tight credit are having a huge impact. But I do find it rather hypocritical that our government just passed almost one trillion dollars worth of legislation with the intent, at least publicly, of creating jobs and stimulating the economy. But in nearly the same sentence, they make multiple comments that are damaging to an important American industry.

daepp · daepp's Garage

Congress accused every corporate jet flier of being a fat cat.

On another note:

I have a buddy who flew F-18's in the Navy. When he got out, he flew KingAirs and Lears for various corporations you never heard of (one was actually a fat rendering corporation of all things.)

Anyways, he started a family and eventually quit being a corporate pilot. The reason: every time a company hit hard times, the first thing to go was the jet.

Porsche-O-Phile · Porsche-O-Phile's Garage

Yep. Airlines get it too (furloughs usually).

Aviation is probably the only industry I know of that is tougher and more rotten than construction - and I've got all my experience/background in both. Oh, lucky me...

m21sniper · 03-04-2009, 12:23 PM

Quote:

Originally Posted by Porsche-O-Phile

Yep. Airlines get it too (furloughs usually).

Aviation is probably the only industry I know of that is tougher and more rotten than construction - and I've got all my experience/background in both. Oh, lucky me...

Try fixing cars in a cold climate for a living, you'll feel better about your skillset.

jyl · jyl's Garage

Congress tends to reflect the emotions and outcries of their constituents.

Your fellow Americans are venting their "outrage" on corporate jets.

scottmandue · 03-04-2009, 12:37 PM

Here ya go...

Porsche-O-Phile · Porsche-O-Phile's Garage

Quote:

Originally Posted by m21sniper

Try fixing cars in a cold climate for a living, you'll feel better about your skillset.

Been there, done that (I did live in New England ya' know!) I never did it for a career (thankfully) but just sayin'...

There are certainly tougher/grittier jobs, but as far as uncertainty/succeptability to bad times, construction and aviation are two of the worst.

Then again, I read about one of the local hospitals actually laying off doctors and nurses the other day so maybe I shouldn't feel so bad. Absolutely no sacred cows these days - except politicians and AIG executives apparently...

Is AIG hiring?