Productivityin.PDFVIP

Productivity in aircraft manufachxing Owing in part to a strong pe$ormance in 1991, productivity rose an average of 3.2 percent during the 1972-91 period; however, the average rate of growth in the industry during the 1980’s was substantially lower Alexander Kronemer ately, the news has not been good for air- 1973,1979, and 1990 were all peak years of busi- and L craft manufacturers. Because of the tinan- ness cycles, as determined by the National Bureau J. Edwin Henneberger cial turmoil in the airline industry, produc- of Economic Research.) The following are com- tion rates for new civilian aircraft have fallen in pound average annual rates of change for the air- the face of decreases in new orders and cancella- craft industry from 1972 to 1991: tions and postponements of orders already on the Employee books. The military sector is heading toward a po- Productivity Output hours tentially historic downturn that may significantly depress demand in the long run. Plants are closing, 1972-91 . . . . . 3.2 4.4 1.2 some companies are leaving the aircraft business 1973-79 . . . . 3.8 6.1 2.2 altogether, and others have gone bankrupt. Tens of 1979-90 . . . . .3 1.4 1.2 thousands of employees have lost their jobs, and 1990-91 . . . . 16.8 9.1 - 6.6 many thousands more are at risk.’ Even in inter- national trade, the usually good