McDonnell Douglas Corp.'s Salt Lake plant has taken its licks along with the rest of the St.-Louis-based aircraft and aerospace company's operating units, but the hard knocks could have been worse, says Gerry Johnston, president and chief operating officer.
With employment at the MDC fuselage and subassembly plant for three MD airliners down from 613 in 1991 to 414 today, that's a cut of only a third, well below the 50 percent cutback in employment companywide, Johnston told the Deseret News Friday.And though he will make no promises, Johnston, who was in Salt Lake City Friday, said the company has no regrets about bringing part of its operations here from Long Beach in 1987, and he hinted that the local facility's best days may lie ahead.
"This plant has done very well for itself. It has a good, disciplined work force and there is always the possibility" of a larger role for the Utah facility. "As long as this plant continues to be competitive, as it is now, it will be fine," he assured.
Asked if that meant Salt Lake City is still in the running for a major role in the future construction of the long-planned MD-12 jumbo jet - originally to have been announced by now - Johnston said the company is no longer discussing a timetable for the project.
Last year, MDC announced that it planned to do a joint venture with Taiwan to fund the project but that deal came up against congressional protests and is no longer on the table, he said. But MDC is still looking for a partner for the MD-12 project and he made it clear it is looking overseas for that partner.
"We are moving toward a global economy and that is our target," he said.
Considering the depth of defense cutbacks in recent years, along with a major airline industry recession that has resulted in delays and cutbacks in aircraft orders, Johnston is surprisingly upbeat about the prospects for his company.
"While our industry still faces tough times, we have made the tough decisions and we made them early. Our future is aerospace and the commercial airplane manufacturing business. We have the staying power not only to survive this industry downturn, but to thrive in the eventual upswing."
And that upswing will come, he assured. "Over the next 20 years, airline traffic is expected to grow at an average annual rate of 6.7 percent. To satisfy worldwide growth in traffic demand, as well as to replace nearly 5,000 aging aircraft, more than 14,000 new aircraft deliveries valued at more than $1 trillion will be necessary."
And MDC will get its share of that action, he promised.
Similarly, he predicted, the current downturn in defense spending will also rebound, although it will probably take a major world event to make it happen. Could a war in Bosnia be that event?
"I don't think so," said Johnston, "but I could be wrong. Whatever it is, McDonnell Douglas will be ready."