How the recent economic recession has impacted U.S. aerospace Research Paper

How the recent economic recession has impacted U.S. aerospace manufacturing industry - Research Paper Example This industry is mainly concerned with the manufacturing and planning of new and improved spacecraft to explore the universe, designing aircraft for the transport of the civilians and military services as well as missiles with the aim of national defense. The industry employs nearly 1703000 people retaining the global diverse talents. Owing to the heavy investment in the research related functions a significant percentage of the people employed with the aerospace are scientists, engineers and technicians (Cook, n.d.). b. Short history of Boeing and Airbus Boeing is the leader in the manufacturing of space, defense and security systems and commercial jetliners. A top ranked exporter in US the company serves customers across 90 countries. The products and services of the company include military & commercial aircraft, weapons, electronics, satellites and defense systems, launch systems, advanced communication & information systems. The airline has long history of aerospace innovation a nd leadership. The company has continually expanded its product lines and services to satisfy the growing needs of the customers (Boeing. 2011). Aircraft ranks among the leading manufacturer of aircraft that has propelled the company to the forefront by virtue of customer focus, technological leadership, commercial know-how, and manufacturing efficiency. The company provides a variety of customer services that are tailored to meet the requirements of the operators across the globe. The airline has its headquarters in Toulouse. Owned by EADS, the airline is a global enterprise with nearly 52500 employees. The company has fully owned subsidiaries in China, Japan, US, and Middle East (Airbus, 2011). Economical Crises facing the aerospace Industry The aerospace industry is grappling with a number of challenges because of the capital-intensive nature of the industry and the situation has worsened with the major governments and companies of the world facing one of the worst crises in rece nt decades. The economy across the globe is anticipated to pass through tremendous economic upheaval in the forthcoming period. a. Re-Building Confidence of the Consumer The airlines across the globe reported grim earnings over the last couple of years due to a fall in the ticket sales. The commercial aviation being an essential part of the global economy the airlines across the globe are devising new ways to restore the confidence in air transport. One such way adopted by these companies is through an extensive advertisement campaign. There was a sharp fall in the airline traffic during the recent financial crisis due to the cut-back in business travel. One of the biggest problems faced by the airlines industry is the drastic fall in the demand for air transport. Despite the bailout packages almost all the air carriers have grounded air planes to limit capacity whereas some of the big airless have even retrenched workforce to prune the massive losses (The Federalist Society, 2003). To improve the demand for the air travel the companies can announce some waivers that will lower the cost of air travel thereby making this mode of travel more attractive as well as affordable. b. Security There has been a revamp of all the security standards in the aftermath of the September 11 terrorist attack. The necessary security measures