In an effort to maintain jobs, the US government says it is assisting aircraft companies jobs that suffered during the pandemic. Spirit Aerosystems, for example, is likely to get the largest payout from the Biden administration.
Spirit is expected to get $75.5 million of the $482 million dividends, the largest of any corporation. According to the transportation department jobs, this should protect around 3,200 employments at Spirit alone and up to 22,500 jobs nationwide. According to the Transportation Department, the enterprises that receive the funds are not permitted to lay off or reduce their employees’ wages.
As a result of this pandemic, it is predicted that 100,000 aerospace jobs have been lost since 2009. Local vendors further down the supply chain from Spirit are also reaping the benefits of the payouts from Spirit’s success. This reprieve is welcomed by Manufacturing Development Inc. (MDI) in Cheney, one of many aircraft companies that have felt the agony.
“Every day, you come in and you hope that something is going to get a little better today and it is starting to get better, but we have a way to go,” said MDI President and Owner Marcia Mies.
As part of the supply chain for major and small aircraft manufacturers, the sheet metal fabrication company creates airplane parts. According to Mies, federal programs such as Payroll Protection and now Aviation Jobs Protection have positively affected the industry.
“We have not laid anyone off,” she said. “We’ve lost some employees who just simply had to have more hours than I could give them, even with payroll protection.”
MDI will receive roughly $450,000 from the Aviation Manufacturing Jobs Protection Program’s first batch of financing to protect 16 jobs. These funds come from the American Rescue Plan, which was authorized in March.
Business Development Center at the Wichita State University According to Jeremy Hill, small manufacturers, will benefit the most, despite Spirit receiving the largest federal award.
“They’re the ones that have really taken the biggest hit because the large ones have working capital and other abilities to weather storms,” Hill said.