Here's an encouraging indication that the aviation market may finally have hit bottom and is showing signs of firming: Cirrus Design Corp. announced this week that it will boost production in Duluth to six new airplanes per week.
The company had been averaging three to four airplanes per week as it adjusted production to slumping demand.
Despite increased production, Cirrus has no plan to recall a significant number of furloughed workers. A statement issued by the company said: "At this time, the increased rate will result in minimal impact to direct labor headcount, due in large part to recent significant efficiency gains achieved as a result of ongoing lean production initiatives."
After several rounds of cuts, Cirrus employs 810 people companywide, including 654 in Duluth and 152 in Grand Forks, where it produces composite components for its planes.
"A great number of employees have made significant sacrifices to put us where we are today," said Todd Simmons, Cirrus' vice president of marketing.
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Cirrus has a long way to go to return to its former health. At its peak, the company was churning out about 12 planes per week. At that time, Cirrus employed about 1,300 people.
Simmons noted encouraging sales trends domestically and internationally.
"We're cautiously optimistic at this point," he said. "We don't see a personnel impact today, but if this trend continues we will."
As Cirrus ramps up production, many of its competitors continue to move in the opposite direction. Textron, Cessna's parent company, announced this week that it will mothball development of a 10-place jet, the Citation Columbus. The company also will close a plant in Bend, Ore., where the Cessna Corvalis had been assembled. This work will shift to Kansas. Textron expects to lay off 1,600 people.
