Downsizing in the aerospace industry

Downsizing in the aerospace industry is due to the cyclical nature of its business segments – defense and commercial. Erratic defense spending and fluctuations in commercial demand for aerospace products are the primary causes of this cyclical behavior. All employee groups are affected by aerospace downsizing initiatives, but the extent that each group is affected depends on product lifecycles. Economic impacts of aerospace downsizing efforts are substantial, both to the individual and communities, but are somewhat less today than in past years. As with all downsizing industries, the challenges of the aerospace industry include maintaining technological competitiveness in the areas of product development and human resources.