...And Here, Darn it, Are The Heartbreakers

It is both the most "fun," and most difficult task, facing the ANN staff at the end of every year -- determining who, or what, did the most to promote the cause of aviation in the past 365 days... while also chastising those people or entities that did all they could to undermine the many successes the aerospace community has managed to accomplish.

Alas, 2007 saw more than its fair share of downers, aviation-wise. Sure, "stuff" happens... but a few folks, issues, or entities seemed to go out of their way to create problems for the world of aviation.

So... it is ANN's annual obligation to recognize a solid dozen of our Aero-Heartbreakers for 2007... in something of an informal order, starting from 12th to the 1st. Let us know what you think of our selections... whom YOU would have liked be included, or omitted, from such a list. In the meantime, we hope those who had something to do with this year's selections think a little more positively about the welfare of this industry, so that future lists become harder and harder to catalog. Be it ignorance, arrogance or just plain incompetence, these were the folks or topics that made our lot a whole lot more difficult and immeasurably injured the aviation world in the past year.

Shame on those issues, folks or topics that made our lot so much tougher in 2007...

From the Heartbreaker's List #10. Overseas/Offshore Manufacturing

Damned if you do... damned if you don't. Such sentiments must run through the minds of those who are trying to bring products to the US market as cost-effectively as possible while also doing their best to serve the best interests of their corporate structure and employee base. Therein, of course, lies the trauma associated with making the decision to send some or all of your manufacturing operations outside of the USA... Does that fact that you (may) bring less expensive goods to the US consumer outweigh the stigma associated with feeling a product that can no longer claim, "Made in America?"

That's a question that Cessna is going to have to answer in the next few years. Since they've announced the fact that the SkyCatcher will be assembled in China, they've (either) been blasted for the use of foreign labor -- or congratulated for doing their utmost to keep the costs down (with some estimates noting that the Chinese decision will allow them to produce the aircraft for as much as $70K less than had they built it in the USA).

While we have our personal views about such an issue, we certainly understand both sides of the equation... companies that want to produce as much product as they can at the most competitive price... and those that take pride in employing folks here at home... even if it costs them much more to do so (and may detract from their market share, as a result).

Companies that select an offshore solution get a competitive advantage in being able to produce cheaper products... but they also risk the backlash of those who find such decisions distasteful or "unpatriotic." Like we said... damned if you and damned if you don't. To be fair, we also have to look at one other issue here in the matter -- that while it may be unfortunate that some manufacturers see the need (even to the point of survival) to take some operations across the border, the fact that conditions seem to necessitate the decision must be looked at, as well. Extensive regulations, greater costs of infrastructure/parts, legal liabilities, labor issues, and just plain old market pressure make offshore solutions look attractive... and if the market will buy the product, then the solution seems like a good one. However; the aviation market tends to be fairly opinionated and in the US, fairly American-centric... so companies doing business overseas... at least for products that will ultimately come back to the US of A, do so (possibly) at their peril.

No matter which way you look at it, the fact that offshore solutions might be in the running is not a good thing for the US industry, and suggests that the ultimate solution to whether or not to head overseas would best be solved by making it more attractive to keep such business here in the states. Easier said, than done...

FMI: You tell us, is Overseas/Offshore Manufacturing a Heartbreaker for YOU?