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Endnotes 1 Fuel costs represented 11.6 percent of cash oper- ating expenses for U.S. airlines in 1997, down from 30 percent in 1980 (Aerospace Industries Association of America 1999, 90). 2 At the same time, however, there is an important fundamental difference between engine manufactur- ers and the rest of the aircraft industry. Profits for engine manufacturers have as much to do with how many existing aircraft are flying as with how many new aircraft are ordered. Because of the need to maintain engines in service continually, sales of spare parts represent a significant source of revenue for engine manufacturers. (For United Technologies, for example, sales of spare parts represent 40 percent of total corporate pretax earnings.) As a result, overall sales and employment for engine makers have tradi- tionally been more stable than those of other aero- space firms. 3 Author’s calculations are based on International Civil Aviation Organization data as reported in Aerospace Industries Association of America (1999, 75). Passen- ger traffic is measured as passenger miles performed, and freight is measured as ton-miles performed. 4 “Flight International Engine Directory 1997—Order Backlog” 1997, 31. 5 Author’s calculations are based on figures from the U.S. Department of Commerce, International Trade Administration, provided by Aerospace Industries Association (1999) and the U.S. Department of Com- merce, Bureau of the Census (1997), Census of Man- ufactures. Manufacturers of aircraft engines and engine parts are designated SIC 3724 by the Standard Industrial Classification system. 6 Author’s calculations are based on figures from U.S. Department of Labor, Bureau of Labor Statistics (1998) Employment and Earnings. 7 Author’s calculations are based on figures from U.S. Department of Labor, Bureau of Labor Statistics (1998 and 1989) Employment and Earnings. 8 Author’s calculations are based on figures from Current Industrial Reports, U.S. Department of Com- merce, as reported by Aerospace Industries Associa- tion of America (1999). 9 Prencipe 1997, 1269. 10 U.S.DepartmentoftheInterior,BureauofMines 1990, 5.24. 11 FromaletterauthoredbyEdisonon14Novem- ber 1887, as quoted in O’Boyle (1998, 22). 12 Theimportanceofsuchagglomerationeffects has been documented by a number of scholars both historically (Bluestone et al. 1981, chapter 2) and more recently (Forrant and Flynn 1998). 13 WomackandJones1996,153–54.SeealsoBest (1990, chapter 1) for a detailed history of the role of Connecticut River valley firms in the evolution of the American system of manufactures. 14 WomackandJones1996,155–59. 15 Lilleyetal.1968,124. 16 WomackandJones1996,159. 17 O’Sullivan1996,108. 18 Constant(1980)presentsacomprehensivedis- cussion of the technological path of GE’s entry into the jet engine business. 19 GeneralElectricCompany1990,45. 20 See,forexample,Tecceetal.(1997). 21 WomackandJones1996,160. 22 Oneoftoday’sindustryleadersinthefieldoffull authority digital engine control for small engines is Chandler-Evans, a West Hartford–based company, whereas Ametek, of Wilmington, Massachusetts, a GE spinoff, is a leader in engine sensors and instru- ments. See Markusen and Yudken (1992) on the links between and among the U.S. military and the aero- space, computers, and electronics industries. 23 Bilstein1996,95. 24 See,forexample,HarrisonandBluestone(1988). 25 “GEtoLayOff200EngineWorkersatLynn Plant” 1999, C3. 26 “CooperationinContrasttoPastAcrimonyat Pratt” 1998, D1; “New Look for Pratt to Erase 1,000 Jobs in State: Restructuring to Move Engineers from Florida” 1998, B1. 27 DatasuppliedbyStrategicResourcesDepart- ment, International Association of Machinists and Aerospace Workers, AFL-CIO. 28 U.S.DepartmentofCommerce,Bureauofthe Census various years, “Aerospace Industry: MA- 37D.” 29 Inparticular,firmsinWesternEuropearegener- ally seen as being “burdened” with a much more stringent regulatory framework with respect to labor relations than their U.S. counterparts. The con- tentious assertion by many in Europe and the United States as to the need for more labor market flexibility is predicated on the assumption that European-style labor regulations stifle growth and innovation on the Continent, the aircraft engine industry would seem to be an exception to this “rule.” 30 Prencipe1998,9. 31 On military projects, RRSPs are referred to as “offset agreements” or “offsets,” insofar as they 20 UMass Donahue InstitutePDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
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