Aircraft Industry: Rocket Fuel for Job Growth

When Orange County’s unemployment report for September is released Friday, keep an eye on the aircraft and parts sector, which has been a standout in the jobs market in the past few months. In August, that segment had the strongest job growth in the county, with employment levels up 21.3% to 7,400 from 6,100 a year earlier.

Of course, that increase is from a very low base. The industry was devastated by military downsizing earlier in the decade. But the rebound is seen as undeniable evidence that the tide has turned, in large part because of healthy orders for commercial aircraft.

Earlier this month, giant Boeing Co. disclosed that it would not make any new 747 or 737-700 jetliners for about a month. It was forced into the delay because it couldn’t get parts fast enough to satisfy its ambitious effort to more than double aircraft production rates to satisfy a rush of orders.

Despite the temporary setback, the bigger workload is affecting Boeing’s local operations and the area’s subcontractors, said Esmael Adibi, director of Chapman University’s Anderson Center for Economic Research. “The increased demand is being felt by them, which means job formation in that sector is very strong,” he said.

Much of the demand is coming from the international marketplace, as foreign airlines place orders for new planes, Adibi said. That bodes well for the future, he said, because if orders dip from national carriers, overseas sales could continue to be strong.

Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com