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Tue, Jul 02, 2013

Recession Cost Wichita 11,000 Jobs

But Some Signs Of Recovery Seen In The Nation's Aviation Capital

Hawker Beechcraft's bankruptcy, plant closings, and layoffs have cost the Wichita area some 11,000 jobs since the recession hit in 2008, according to analysis by the Wichita Eagle. But there are some bright spots in the area’s employment picture.

Aviation companies in the region now employ just under 25,000 people, down about 31 percent from 2008 when some 41,000 were employed by the aerospace industry in the region. The bankruptcy by Hawker Beechcraft  and the pending closure of Boeing Wichita along with deep cuts at Cessna have accounted for much of the reduction. The recession caused many customers to cancel orders for airplanes, and companies are now doing more with fewer employees and outsourcing work in an effort to shore up their bottom lines.

But there is some good news in the analysis. The paper reports that employment at Bombardier Learjet is up from 5 years ago after a sharp drop during the recession. The new Learjet 85, 70, and 75 programs get credit for much of the increase. Spirit AeroSystems also reported a slight uptick in employment based on Boeing's planned increases in production.

But Cessna now employs about half the people that were working for the company in 2008, and Beechcraft Corporation emerged from bankruptcy with an employment roll of about 3,500 compared to 7,500 at the end of 2008.

The Boeing Wichita facility focuses mostly on military contracts, and the company announced plans to close the facility in January 2012. Much of that work is being transferred to Oklahoma City, San Antonio, and the Puget Sound area.

FMI: www.gwedc.org

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