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141,400 people. By 1996, the industry reported just 75,100 employees. Employment saw a slight rebound in 1997, reaching 82,900, but recent an- nouncements of layoffs make it appear that em- ployment is once again headed downward. It is interesting that in this industry, the effects of in- dustry downsizing have not been confined only to the blue-collar workforce. Production and nonproduction workers alike ex- perienced the downsizing of the industry, seeing their ranks drop 37 percent and 46 percent, re- spectively, over the 1988 to 1997 period. A trou- bling stagnation of wages during this time com- pounded problems for the industry’s workers. Ac- cording to data from the Bureau of Labor Statis- tics’ Employment and Earnings, average real earn- ings for production workers in aircraft engine manufacturing were just 0.5 percent higher in 1998 than they were in 1989.7 Economic recovery seems not to have turned the tide of employment declines, either regionally or nationally. Massachusetts industry employment in the fourth quarter of 1997 was 7.5 percent below the level registered in the fourth quarter of 1993, as measured by the Massachusetts Division of Employment and Training’s ES-202 data. This is a period in which employment in manufacturing overall was essentially flat. The situation in Massa- chusetts mirrored a national trend; between 1993 and 1997, employment in jet engine manufactur- ing on a national level slid 19 percent, from 102,900 to 82,900 workers. What makes these patterns even more interesting is that they oc- curred even though this period (1993 to 1997) was one of strong recovery for the industry from the dark days of the early 1990s. New orders for engines and engine parts in 1997 were about 24 percent higher than they were in 1993.8 What happened? Are these developments a reflec- tion of the post–Cold War status quo in the in- dustry? Has the industry entered a new era in which the fortunes of firms’ shareholders and workers, bound together in former times, have now become divergent? What have been the ef- fects of these developments for the New England economy and the region’s workers? What might they mean for the future viability of the region’s engine manufacturing skill base? Do recent devel- opments suggest that New England, the tradi- tional cradle of jet engine manufacturing, is no longer a “competitive” location for this industry, or are regional job losses simply reflective of a re- orientation in corporate strategy? It is important to understand why the industry grew up in the region before concluding that its competitive advantage has shifted. Starting with a historical perspective that sheds light on the strengths of the New England location helps to understand policy proposals aimed at stemming the tide of job loss regionally. Jet Engine Manufacturing in New England 5PDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
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