Historically, the aerospace business is a cyclical one. It booms, drops off, then climbs again. But it seems the current decline has been especially deep. Not only has the industry been dogged by a general slowdown in the world economy, it was hard hit by the events of 9/11. Adding to the misery, foreign competition is making it hard to keep business in the U.S. Aerospace manufacturers responded to the poor economy by closing facilities and laying off thousands of workers. But the industry as a whole has reached a crucial turning point. The U.S. aerospace industry is combating the poor economy, as well as pressures from foreign competition by becoming much leaner and more nimble. And although business looks to improve by 2005, the road to prosperity seems to be marked by upheavals in the structure of the U.S. aerospace industry. A snapshot of current conditions will provide a better understanding of changes in the industry. According to the U.S. Bureau of Labor Statistics, the aerospace industry comprises roughly 1,800 firms with the largest segment represented by subcontractors that manufacture parts and have fewer than 50 workers. However, 70 percent of the overall jobs in aerospace are in large establishments employing 1,000 or more workers.
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