Raytheon Aircraft is to outsource wire harness assembly to Labinal subsidiary Aerotec de Mexico, which will result in the loss of 350 jobs at its Wichita, Kansas, plant.
Only 18 months ago, Raytheon decided against outsourcing harness assembly, after employees came up with a plan to improve efficiency and cut costs. But the continuing general aviation market downturn and pricing pressure on business aircraft "forced us to take a second look", the company says.
From early next year, harness assembly work will be transferred to Chihuahua, Mexico-based Aerotec, and the transition is due to be completed by late next year or early 2005. RAC has tentatively decided to outsource a limited number of machined parts and precision assemblies, with the potential loss of a further 50-60 jobs. The company plans to outsource high technology parts to replace built-up components produced in-house.
Raytheon has stated that RAC wants to outsource everything but its "core competencies", which include design engineering and final assembly, by 2006.
Wichita-based Cessna has begun a review of its in-house capabilities versus those of outside suppliers, but says no decisions have been taken on whether to outsource more work. The manufacturer has yet to decide where to locate assembly of the Citation Mustang entry-level business jet, with its underused single-engined aircraft plant in Independence, Kansas, being one of the candidates.
Source: Flight International
