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2 UMass Donahue Institute mercial segments of the aircraft market led to devastating job losses, they still continue. And though the mass job losses and wage stagnation experienced by workers in the industry during the early 1990s could be attributed to a drop-off in demand, the recovery of the demand for aircraft has by and large failed to re- store employment levels or lead to real wage growth, either regionally or nation- ally. Between the fourth quarter of 1993 and the fourth quarter of 1997, at a time when manufacturing employment as a whole remained essentially flat, Mass- achusetts employment in the industry declined 7.5 percent. Nationally, jet engine employment fell 19 percent between these years, even though new orders in 1997 were 24 percent higher than they were in 1993. These trends are troubling because they suggest a “divergence of fortunes” be- tween firms’ well being and that of workers in the industry. It appears that cor- porate strategies rather than market forces alone are shaping these employment trends. An increasing reliance of engine manufacturers on overseas suppliers, a desire on their part to exit manufacturing activities in favor of more profitable servicing activities, and increased pressures on the part of managers to deliver “value” to shareholders all seem to be playing a role. These conclusions present a particular challenge to state-level policy makers who might seek to stem the tide of job losses in the industry.PDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
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