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Ripple effect: As Boeing retrenches, so do suppliers.(Brief Article)(Statistical Data Included)

Puget Sound Business Journal

| December 21, 2001 | Wilhelm, Steve | COPYRIGHT 1989 American City Business Journals, Inc. (Hide copyright information)Copyright

Dave Tanonis has cut the payroll once, and he plans to do so again early next year as Hexcel Structures and Interiors trims production to match The Boeing Co.'s reduced orders.

The Kent company laid off 30 production workers earlier this month, and Tanonis expects to cut up to 130 more out of about 1,000 by the end of the first quarter. The company also is cuffing 30 salaried staff.

Like many executives at local aerospace suppliers, Tanonis is struggling to balance his workers' needs and the company's bottom line.

"Reality is pretty harsh. A lot of people's lives are going to change, and it's a terribly difficult thing for everybody," he said.

At many companies the cuts have been more abrupt this time than during other aerospace down cycles, reflecting the rapid damage done to the entire commercial airline business in the wake of the. Sept. 11. attacks. Commercial aircraft production at Boeing is dropping from a recent peak of 48 …

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