General Aviation Manufacturing is in the Tank; Hang On It is Going to Get Worse

Change is a constant, Outsourcing Jobs, Capital flows, Emerging Markets are a given and this includes the Aviation Manufacturing Sector as we watch the current Migration pick up speed.

It appears that the technological advantage that we have here in the United States is no longer going to sustain us without further advances. Previously our work in aerodynamics (during and after WWII), our industrial capacity and our ongoing capitalization of the aerospace industry was enough to keep us ahead of the game. Currently in the US we see job losses in the aerospace mount in cities like Everett, WA and Wichita, KS. We see other areas trying to carve out a niche in the aviation manufacturing market cities like Albuquerque, NM and Centennial, CO. Yet in reality there are few niches, which do not have many competitors. One new market the mini-Business Jet, seems to be a potential as many companies are building these under 1 million dollar jets. Even so we are seeing the small business jet opening market as a long term positive in the private jet market, but a short-term problem for the small single engine turbo prop and piston markets of Beechcraft, Cessna and others. Long Term will be good because these are considered starter jets attracting new buyers to the market, however short term they will pull buyers away from the higher priced turbo cabin class singles of 4-8 seats. They may also pull buyers away from popular models such as the Beechcraft Bonanza, Cessna 210, Piper Malibu, Saratoga, etc. We will also see problems in this market as insurance carriers increase prices as less experienced pilots and single pilot mini-business jets experience a higher percentage of will occur. In fact such accidents are already causing friction in the corporate jet insurance costs, showing that certain companies are separating out the categories to keep the mini-business jets in their own realm and pricing points.

Today we see massive high paid aerospace workers out of work and much of the component manufacturing leaving our shores. Some say it is to save money in manufacturing which is a serious consideration with workmen's compensation, insurance benefits, labor unions, over regulation and lawsuits taking their toll. There is another reason too; we want to sell to other countries our aircraft, so if they build components then Boeing maybe able to beat out Airbus. Yet Airbus is doing the same thing by building component plants in China, Boeing already builds air surface aircraft components there. We still cell our aircraft all over the world, yet also entering the small airliner market is Bombardier, a market niche, which has been dominated for decades by Boeing with many famous models like the 737.

The light aircraft market in the US has been dominated by Piper, Beech, Cessna but in the last two and a half decades the finish products liability has skyrocketed as lawyers lawsuits have increased both in number and monetary awards. Many light aircraft manufacturers had stopped making aircraft and discontinued several popular lines. Many aircraft had increased in price 100% to allow for the incessant lawsuits. As the price increased new aircraft sales could not keep up and the used aircraft prices also skyrocketed. This has left the door open for foreign light aircraft manufacturers around the world. Many light utility aircraft buyers would come to the US and buy used aircraft put in long range tanks and then fly them across the pond rather than buying an inferior light aircraft from other countries, but as the prices in the used market increased and the new market skyrocketed other manufacturers in those other countries excelled and filled the gap. With all the red tape and the lawyers, fewer aircraft were sold, fewer workers needed and costs for parts went up due to economies of scale. Wichita has seen it's hay day stolen, but will it move to other US city hopefuls as the new business jet niche becomes more prevalent? Will Albuquerque really be the new private jet manufacturing hub? The governor in New Mexico has certainly spoken out as very pro economic development towards aviation sector. The economic development agency of Colorado has practically promised it. Wichita is working hard to keep what they got, while Boeing is selling buildings and Bombardier is contemplating competing in the smaller jet airliner business. In India they are saying we can build light aircraft and UAVs to start and later we will build larger aircraft? And it appears they will be doing just that and some of our companies can read the writing on the wall so they will even put up some capital to make sure they are in on it. So how ready is India to take over the light aeroplane manufacturing sector? Well they certainly have the labor supply with over 1.06 Billion population and growing. Yes of course, they are primed and ready. Yes, they have established a priority to doing this.

http://www.thestatesman.net/page.news.php?...sess=1&id=60517

India is also manufacturing UAVs with large factories going up as we speak. Counties like those in Eastern Europe or China, Mexico and India will take the general aviation industry from the US, but India appears to be the emerging as the most likely winner and they know it. As cities like Albuquerque NM try to become the next American city with available labor to enjoy the economic vitality which comes with such industries try to lure those industries away, we see they attempt thru their economic development associations to no avail. Those jobs are going over seas. It is too late to stop them now, in our self-righteousness to control and over regulate business we have driven businesses away. It is of course not only the aviation sector and it is not just the US, for instance in Europe also both with Airbus and the entire auto industry. Bureaucracy is not only killing America. In the UK: BMW head says red tape and bureaucracy "drowning" motor industry. Red tape and bureaucracy are unnecessarily inhibiting business development in the United Kingdom while costing it a fortune, according to the managing director of BMW (GB), Jim O'Donnell. BMW in the US is running into similar issues as are all auto manufacturers as they use Franchised Car Dealerships as a business model. The franchising industry is completely over regulated as well:

http://www.ftc.gov/os/comments/franrulesta...t/OL-100001.pdf

In America we no longer mine our own raw materials, Iron Ore mines cannot stay in business due to regulations and restrictions, same goes for Gold Mines, Copper, etc. This means if we have to import raw materials to compete, we pay those shipping costs too and as the price is passed on for the over regulation in every industry we are finding we are our own worst enemy. The US has two competitors, one is ourselves and our move towards socialism and the over regulation and Political correctness it creates; the second is other countries with similar industries which are free from the minutia we have created here with all the lawyers.

http://worldthinktank.net/wttbbs/index.php...=7&st=0&#entry8

One may wish to wonder how many industries are lost completely before America wakes up, some in our country who are capitalizing such industries no longer care, as their money is better spent where business conditions, labor supply and a workable government with open arms and pro business exists. The new age of innovation will not belong to the US, they have forgotten from where they came, forgotten what it takes to build, forgotten why we fought so hard to do it and forgotten why we came in the first place. See YA, aviation sector? Well, it sure was a great run. One might ask why all the doom and gloom? Well none really, merely an observation of facts and it depends on which side of the fence you are on. What is our loss, is their gain, we no longer deserve it and India is proving to the industry, capitalists and now the world that they do. We did it to ourselves with our failure to curb the lawsuits, failure to limit awards, over regulation in manufacturing, but this is hardly a new thing, these issues and lawyers have plagued the commercial and private aviation industry our country for nearly three decades. The industry obviously is making choices right now about the future direction, as are governments who want this industry for their continued growth along with the customer demand for more affordable aircraft, labor and features. Some say the labor unions have been their own worst enemy as the "Lou Dobbs debate; off shoring America" rages on, however customers vote with their money, companies vote with theirs and no matter what government does in the way of intervention the aviation sector is moving now.

We must also understand if we wish to sell to these countries that some of the component building may need to be in those other countries as they will be buying our Airliners and we must compete on price as well. We cannot do that here in the states any longer the costs have become too great and the system of commerce we have created and the blob of bureaucracy is more than the aviation market sector can stand.

Look at some of these purchases? That is a lot of high tech equipment and we need those sales. These foreign airlines are buying much compared to our airlines, which are canceling orders. American Airlines cancelled 54 orders for new aircraft from Boeing recently, not good, the increases in operational fuel costs, Continental postponed their large jet order.

The writing on the wall is clear, India is booming and they are rapidly securing many of the United State's top industries and with them will flow jobs and capital. World economics are always in a state of flux. Even if the aircraft manufacturing industry survives in the US it will have to share more of that world market with other countries like India and China. Just as Airbus was able to take over 50% of the market share from Boeing after the MacDonald Douglas merger, India will take it's chunk of the UAV and private plane market and eventually divide further the airliner manufacturing sector.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

More Resources

How to Overcome Jetlag
Jetlag seems to be every traveler's worst nightmare - especially if you're going away for just a short while.What causes Jetlag?Jetlag is a condition that arises from crossing multiple time zones in a relatively short time and consequently disturbs your natural body clock or circadian rhythms.
Point to Point VS Spoke and Hub? Air Taxi
Boeing it is said took a big gamble in predicting the future of air travel. Instead of going bigger like Airbus and building an aircraft like the A380, the biggest airliner ever built; The Boeing Company decided to go for a more efficient smaller aircraft with better materials and better range.
Airbus A-380 is Pretty Big
You know the Airbus A-380 is so huge it takes 2 hours to load and unload and that is if you are rushing the people on and off like cattle. The aircraft holds more fuel than a Boeing 727 weighs.
Entering Business Aviation, Part V: Tips on Finding Work
I will not pretend that this is the easiest topic to write about. In fact, my knowledge of how one finds work as a private flight attendant is based chiefly on what others have shared with me.
Downed Pilots Hibernating From the Enemy
When we watch Oliver North's "War Stories" or the "Wings Discovery Channel" we often see the problematic issues with downed pilots trying to evade the enemy. They have limited if any food supply and lots of people looking for them.
Group Check-in At Airports
Plan Ahead For A Smooth Check-in and FlightWhen traveling with a group through a major airport, here are some tips to help things go smoothly while reducing your personal stress level:1. Resist the temptation to hold on to everyone's tickets until they get in line at the terminal.
Inflatable Slots for STOL
Short Take Off and Landing Aircraft are extremely valuable in commercial, private, government and military aviation. It is important for safety and for performance.
Preventing Rapid Decompression In Commercial Airliners
In Flight Airline Rapid Decompression Breached Window(Airline Safety)Here is a concept worthy of mention about the issues concerning Airline International Terrorists and Guns in the Cockpit and of course Federal Air Marshals. If a gun goes off in a smaller airliner, 737 or 767 then a bullet could penetrate a window and breach the pressurization system.
Sex in a Cessna, Part I
If you have never had sex in a Cessna or other small aircraft then you probably might wish to read this article. It is fun, exhilarating and can get a little tricky if you do not do it correctly.
Automated Following Jump System for Paratroopers, AFJS
There are many problems of safety in paratrooper drops. Many times night jumps are done or drops are made into the battlespace under low visibility.
Entering Business Aviation, Part III: Training Options
Time for some training! So, you are not sure what type of training you will need or how it compares to the commercial side of aviation. For starters, there are some very big differences.
AWACS Automated Flight Following System for Nuke Bunker Buster Accuracy
The Aerial Fire Fighting Industry uses a system called AFF Automated Flight Following System. It works from a satellite.
Airline Security; Stewardesses The Last Line Of Defense!
Introduction:It might come as a chock to many people, including the Stewardesses, but the fact remains that in today's Airline Industry, the Stewardess is the last line of defense!In the 11th of September terrorist attacks, on the WTC and Pentagon, the first victims were the Stewardesses. Savagely attacked by the terrorist on their way to the cockpit's and tortured to pressure pilots, to comply with the terrorists demands.
Cactus Fly-In, Casa Grande AZ
Every year in Arizona is the Cactus Fly-in which is one of the largest events in the city of Casa Grande AZ air show and fly-in, which is always well attended and a huge success. The event seems to be growing every year, much busier this year than last year even though general aviation has suffered due to 9-11.
Helicopters - The Multi Utility Machines
The vertical lift technology of helicopters has far more utilitarian aspects to its credit than only being an effective mode of transport. In India, civil helicopters are performing transportation business, be it executive or offshore.
Is your air traffic control person real?
Have you ever been flying around in your private plane and the control tower or approach control has sent you on a vector or asked you to do something, which made no sense at all? But of course you did it anyway, because they are in charge right? You might have thought to yourself; "Is this guy for real?" "Is this guy in some kind of dreamland, asleep up there?" Well in the future such questions may not be too far off actually. For instance your air traffic control tower professional maybe in augmented reality, sitting in a room with no windows looking at your aircraft on a TV screen or video monitor.
Boeing is Really Flying Now
The Boeing Company has completely blown past projections for aircraft sales this month. Before the Annual Paris Air Show the Boeing Company had already made three deals for commercial aircraft of worth over 5 Billion in sales.
Sex in a Cessna, Part III
So far we have learned the safety aspect of setting the aircraft up in non-restricted airspace, with auto-pilot and away from other aircraft traffic. Now we will describe sexual positions, which will help you maintain controlled flight without restricting visibility.
Aerodynamic Inflatable Wing Gates for STOL
Low speed flight characteristic are crucial to safety. Those aircraft that have good flight characteristics at low speeds are favored by pilots and the companies, military, NGO or private individuals who operate them.
Getting Cheap Airfares
Airlines offer tickets at a fraction of the cost you buy tickets. These offers are given to wholesalers and agencies that bring good business to them.

More Aviation Information:

Related Articles

Inflatable Slots for STOL
Short Take Off and Landing Aircraft are extremely valuable in commercial, private, government and military aviation. It is important for safety and for performance.
Flying Blimp Walrus Could Have Assisted in Evacuations
What is a Walrus Super Blimp? It is a giant heavy lift Blimp being evaluated by the United States Department of Defense's special research division; DARPA. What is DARPA? Defense Advanced Research Projects Agency.
Material Memory and NASA High Tech Plastics for Rotor Blades
Some new materials, types of plastics seem to be stronger than steel by quite a bit. Since they are made of polymer plastic blends it will be possible to add in some material memory manufacturing in the process.
Tips to Finding Really Cheap Airline Tickets
Finding really cheap airline tickets onlineLooking for a really good deal on flights? Here are some of the best strategies used to find really cheap airline tickets online.1) Really Cheap Airline Tickets: Last minute flightsOften you'll find really cheap airline tickets posted at the last minute.
First Class Airfare: How the Rich Travel
Have you ever wondered what all entails first class airfare, but never knew where to look? First class airfare can cost up to 15 times more than the regular fares for the same trip. So what do travelers living the high life actually get for these super inflated prices? Well, a lot.
Automated Satellite Following System for UAV Swarms
Much work is being done and the USAF has implemented systems to fly UAVs Unmanned Aerial Vehicles in ah hoc formations like swarms of insects or flock of birds. We cannot quite match evolution and bird flock formations but we are on our way.
Tactile Strip Sensors on Leading Edge of Material Memory Airfoils
Aircraft designers have always tried to figure out the best compromise for the aircraft they build, trying to get maximum performance at both high and low airspeeds. Now with material memory components they will be able to do this.
Flying With Your Dog
A pet owner must research the many requirements before taking a dog on an airplane. Different airlines have slightly different regulations, but most airlines follow the same basic set of rules in regards to flying with a dog.
The History of the Aircraft Wash Guys, Part Three
As we study this grass roots history of a franchise company in the making we see how opportunity in the market grows companies and how entrepreneurial thinkers take advantage of those opportunities to deliver goods and services, which match the desires of the market place. In this review of the history of the aircraft wash guys we see the company diversifying and finding other niches to serve, some of which were actually better than the original plan.
Several Facts to Obtaining Cheap Airfares
AirfaresNeed a vacation but dont want to stay around town? Want to go somewhere exotic, somewhere different? Want to fly but worried about the airfare? Sourcing the cheapest airfare available has been made easier with competition growing between travel agencies as people realize that a vacation need not be all that expensive. Airfare can be a hindrance to the best of vacation plans but it need not be.
How to Get a Free Airline Upgrade on Your Flight
Everyone wants to buy a cheap economy ticket and get bumped up to business or first class. I mean who doesn't want more comfort, more legroom, better service and lounge access? The new generation of flat seats makes flying long-haul more comfortable than ever before.
Young Men Trying to Imitate the 9-11 Scenario, Part II
What happened to General Aviation after 9-11? Why did we take the ITC away in the late 80's? Why were we hostile with IRS regulations toward Civil Air Patrol pilot owners? What else did this cause and why is it significant to this Part II of aviation mentor-ships for young men? We continue now with Part II of "Young Men trying to imitate the 9-11 Scenario."Wichita KS boomed due to the Ivestment Tax Credit regulations and the city had lots of population to draw from for mechanics, since so many people worked in the aviation factories.
Airline Fuel Costs Mount
The airlines are huge users of fuel. Fuel costs are higher than even the cost of the aircraft.
What Causes Jet Lag?
Jet lag is a common sleep disorder suffered by many millions of travelers every day, whether traveling on business or for pleasure. In one recent survey of international business travelers, seventy four percent of those questioned said that they suffered frequently from jet lag.
5 Tips for Stress Free Long Haul Flights
The world is becoming smaller by the day. Flying long haul to distant locations for business or pleasure is becoming increasingly more popular.
Cheap Airline Tickets! With Internet Access, The Skies The Limit For Great Deals
With easy access to the Internet, the convenience of finding cheap airline tickets is just a few clicks away. As more airline inventory becomes available directly to the public through the World Wide Web, cheap flights are being purchased in record numbers, and nearly everyone hunting for fantastic low cost airline tickets are finding better deals online, than offered at their local travel agency!If you happen to be wondering why your local travel agency seems to have a hard time competing with all the cheap tickets offered by online travel suppliers, well its a matter of volume.
17 Ways to Keep Safe and Secure When Flying
Here are 17 ways to keep safe and secure when flying domestic or abroad. Air travelers need to keep a sharp eye and an ever present focus on what's going on around them.
Boeing is Really Flying Now
The Boeing Company has completely blown past projections for aircraft sales this month. Before the Annual Paris Air Show the Boeing Company had already made three deals for commercial aircraft of worth over 5 Billion in sales.
Entering Business Aviation, Part II: Pay Rates for Flight Attendants
Pay. You know that aviation pays better than commercial, in most cases a lot better, but you aren't sure what the going rate is for a corporate flight attendant.
A Look at Fractional Jet Ownership
We've all experienced it - the commercial flight. After a mad dash to make it to the airport on time, including the hours allotted for getting through security, where you'll have to take off your shoes, empty your pockets, and prove that your laptop is not a bomb, you sit and wait for a couple hours before they decide to start boarding, and give you the privilege of sitting in the cramped seat that you paid a couple hundred dollars for.