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Introduction The aerospace industry, the “crown jewel” of U.S. manufacturing, was for decades after World War II the source of the many good things advanced industrial economies are expected to pro- vide: good jobs with growing wages, technological advances that allowed for both increased productivi- ty and qualitatively better products, and the export of U.S. value-added to other countries. All these developments helped to ensure the health of firms in the industry while simultaneously contributing to improved U.S. standards of living. This state of affairs was especially present in the engine-manufacturing sector of the aerospace in- dustry. Since the introduction of the jet engine in the 1940s, U.S. firms have come to dominate the global market for aircraft gas turbine power plants. The design innovations engine makers built into each new generation of products al- lowed for air travel that was ever safer, faster, cheaper, and less environmentally damaging than earlier products; technological advances in propulsion improved aircraft performance and thus helped to grow the market for air travel. Alongside the growth of the market, employment opportunities expanded, and as productivity grew, better wages followed. For much of the postwar period, New England was at the center of this industrial success story. The combination of production skill, technical ex- pertise, and scientific talent embodied in the re- gion’s workforce contributed greatly to the pros- perity of the leading firms in the industry and, in turn, the region’s workers shared in the fruits of these firms’ competitive success. The industry has seen hard times of late, however. The end of the Cold War has, it seems, perma- nently reduced demand from the aircraft indus- try’s single most important customer, the U.S. Department of Defense. The decline in U.S. gov- ernment orders has meant fewer sales but at the same time has entailed a redefinition of “value” in the industry. As fuel prices dropped1 and the product has matured over time, airlines have turned away from state-of-the-art engine designs, preferring simpler products with fewer parts that are easier to maintain. Producers of aircraft and engines are under more pressure than ever to offer equipment that is cost-competitive at the time of purchase and in operational service.2 Despite these challenges to firms in the industry, it should be remembered that air transportation, far from a saturated market, still enjoys healthy growth rates. Since 1975, annual growth in world passen- ger traffic has averaged a robust 6 percent per year, Jet Engine Manufacturing in New England 3PDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
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