| Change is a constant, Outsourcing Jobs, Capital flows, | | | | general aviation industry from the US, but India |
| Emerging Markets are a given and this includes the | | | | appears to be the emerging as the most likely winner |
| Aviation Manufacturing Sector as we watch the | | | | and they know it. As cities like Albuquerque NM try |
| current Migration pick up speed. | | | | to become the next American city with available |
| It appears that the technological advantage that we | | | | labor to enjoy the economic vitality which comes |
| have here in the United States is no longer going to | | | | with such industries try to lure those industries away, |
| sustain us without further advances. Previously our | | | | we see they attempt thru their economic |
| work in aerodynamics (during and after WWII), our | | | | development associations to no avail. Those jobs are |
| industrial capacity and our ongoing capitalization of the | | | | going over seas. It is too late to stop them now, in |
| aerospace industry was enough to keep us ahead of | | | | our self-righteousness to control and over regulate |
| the game. Currently in the US we see job losses in | | | | business we have driven businesses away. It is of |
| the aerospace mount in cities like Everett, WA and | | | | course not only the aviation sector and it is not just |
| Wichita, KS. We see other areas trying to carve out | | | | the US, for instance in Europe also both with Airbus |
| a niche in the aviation manufacturing market cities like | | | | and the entire auto industry. Bureaucracy is not only |
| Albuquerque, NM and Centennial, CO. Yet in reality | | | | killing America. In the UK: BMW head says red tape |
| there are few niches, which do not have many | | | | and bureaucracy "drowning" motor industry. Red tape |
| competitors. One new market the mini-Business Jet, | | | | and bureaucracy are unnecessarily inhibiting business |
| seems to be a potential as many companies are | | | | development in the United Kingdom while costing it a |
| building these under 1 million dollar jets. Even so we | | | | fortune, according to the managing director of BMW |
| are seeing the small business jet opening market as a | | | | (GB), Jim O'Donnell. BMW in the US is running into |
| long term positive in the private jet market, but a | | | | similar issues as are all auto manufacturers as they |
| short-term problem for the small single engine turbo | | | | use Franchised Car Dealerships as a business model. |
| prop and piston markets of Beechcraft, Cessna and | | | | The franchising industry is completely over regulated |
| others. Long Term will be good because these are | | | | as well: |
| considered starter jets attracting new buyers to the | | | | [ |
| market, however short term they will pull buyers | | | | In America we no longer mine our own raw materials, |
| away from the higher priced turbo cabin class singles | | | | Iron Ore mines cannot stay in business due to |
| of 4-8 seats. They may also pull buyers away from | | | | regulations and restrictions, same goes for Gold |
| popular models such as the Beechcraft Bonanza, | | | | Mines, Copper, etc. This means if we have to import |
| Cessna 210, Piper Malibu, Saratoga, etc. We will also | | | | raw materials to compete, we pay those shipping |
| see problems in this market as insurance carriers | | | | costs too and as the price is passed on for the over |
| increase prices as less experienced pilots and single | | | | regulation in every industry we are finding we are our |
| pilot mini-business jets experience a higher | | | | own worst enemy. The US has two competitors, |
| percentage of will occur. In fact such accidents are | | | | one is ourselves and our move towards socialism and |
| already causing friction in the corporate jet insurance | | | | the over regulation and Political correctness it creates; |
| costs, showing that certain companies are separating | | | | the second is other countries with similar industries |
| out the categories to keep the mini-business jets in | | | | which are free from the minutia we have created |
| their own realm and pricing points. | | | | here with all the lawyers. [ |
| Today we see massive high paid aerospace workers | | | | One may wish to wonder how many industries are |
| out of work and much of the component | | | | lost completely before America wakes up, some in |
| manufacturing leaving our shores. Some say it is to | | | | our country who are capitalizing such industries no |
| save money in manufacturing which is a serious | | | | longer care, as their money is better spent where |
| consideration with workmen’s compensation, | | | | business conditions, labor supply and a workable |
| insurance benefits, labor unions, over regulation and | | | | government with open arms and pro business exists. |
| lawsuits taking their toll. There is another reason too; | | | | The new age of innovation will not belong to the US, |
| we want to sell to other countries our aircraft, so if | | | | they have forgotten from where they came, |
| they build components then Boeing maybe able to | | | | forgotten what it takes to build, forgotten why we |
| beat out Airbus. Yet Airbus is doing the same thing | | | | fought so hard to do it and forgotten why we came |
| by building component plants in China, Boeing already | | | | in the first place. See YA, aviation sector? Well, it |
| builds air surface aircraft components there. We still | | | | sure was a great run. One might ask why all the |
| cell our aircraft all over the world, yet also entering | | | | doom and gloom? Well none really, merely an |
| the small airliner market is Bombardier, a market | | | | observation of facts and it depends on which side of |
| niche, which has been dominated for decades by | | | | the fence you are on. What is our loss, is their gain, |
| Boeing with many famous models like the 737. | | | | we no longer deserve it and India is proving to the |
| The light aircraft market in the US has been | | | | industry, capitalists and now the world that they do. |
| dominated by Piper, Beech, Cessna but in the last | | | | We did it to ourselves with our failure to curb the |
| two and a half decades the finish products liability has | | | | lawsuits, failure to limit awards, over regulation in |
| skyrocketed as lawyers lawsuits have increased both | | | | manufacturing, but this is hardly a new thing, these |
| in number and monetary awards. Many light aircraft | | | | issues and lawyers have plagued the commercial and |
| manufacturers had stopped making aircraft and | | | | private aviation industry our country for nearly three |
| discontinued several popular lines. Many aircraft had | | | | decades. The industry obviously is making choices |
| increased in price 100% to allow for the incessant | | | | right now about the future direction, as are |
| lawsuits. As the price increased new aircraft sales | | | | governments who want this industry for their |
| could not keep up and the used aircraft prices also | | | | continued growth along with the customer demand |
| skyrocketed. This has left the door open for foreign | | | | for more affordable aircraft, labor and features. |
| light aircraft manufacturers around the world. Many | | | | Some say the labor unions have been their own |
| light utility aircraft buyers would come to the US and | | | | worst enemy as the “Lou Dobbs debate; off |
| buy used aircraft put in long range tanks and then fly | | | | shoring America” rages on, however |
| them across the pond rather than buying an inferior | | | | customers vote with their money, companies vote |
| light aircraft from other countries, but as the prices in | | | | with theirs and no matter what government does in |
| the used market increased and the new market | | | | the way of intervention the aviation sector is moving |
| skyrocketed other manufacturers in those other | | | | now. |
| countries excelled and filled the gap. With all the red | | | | We must also understand if we wish to sell to these |
| tape and the lawyers, fewer aircraft were sold, | | | | countries that some of the component building may |
| fewer workers needed and costs for parts went up | | | | need to be in those other countries as they will be |
| due to economies of scale. Wichita has seen | | | | buying our Airliners and we must compete on price |
| it’s hay day stolen, but will it move to other | | | | as well. We cannot do that here in the states any |
| US city hopefuls as the new business jet niche | | | | longer the costs have become too great and the |
| becomes more prevalent? Will Albuquerque really be | | | | system of commerce we have created and the blob |
| the new private jet manufacturing hub? The | | | | of bureaucracy is more than the aviation market |
| governor in New Mexico has certainly spoken out as | | | | sector can stand. |
| very pro economic development towards aviation | | | | Look at some of these purchases? That is a lot of |
| sector. The economic development agency of | | | | high tech equipment and we need those sales. These |
| Colorado has practically promised it. Wichita is working | | | | foreign airlines are buying much compared to our |
| hard to keep what they got, while Boeing is selling | | | | airlines, which are canceling orders. American Airlines |
| buildings and Bombardier is contemplating competing | | | | cancelled 54 orders for new aircraft from Boeing |
| in the smaller jet airliner business. In India they are | | | | recently, not good, the increases in operational fuel |
| saying we can build light aircraft and UAVs to start | | | | costs, Continental postponed their large jet order. |
| and later we will build larger aircraft? And it appears | | | | The writing on the wall is clear, India is booming and |
| they will be doing just that and some of our | | | | they are rapidly securing many of the United |
| companies can read the writing on the wall so they | | | | State’s top industries and with them will flow |
| will even put up some capital to make sure they are | | | | jobs and capital. World economics are always in a |
| in on it. So how ready is India to take over the light | | | | state of flux. Even if the aircraft manufacturing |
| aeroplane manufacturing sector? Well they certainly | | | | industry survives in the US it will have to share more |
| have the labor supply with over 1.06 Billion population | | | | of that world market with other countries like India |
| and growing. Yes of course, they are primed and | | | | and China. Just as Airbus was able to take over 50% |
| ready. Yes, they have established a priority to doing | | | | of the market share from Boeing after the |
| this. | | | | MacDonald Douglas merger, India will take it’s |
| [ | | | | chunk of the UAV and private plane market and |
| India is also manufacturing UAVs with large factories | | | | eventually divide further the airliner manufacturing |
| going up as we speak. Counties like those in Eastern | | | | sector. |
| Europe or China, Mexico and India will take the | | | | |