It's hard to gauge the extent of damage from losing the Hawker Beechcraft manufacturing plant in Salina. But there's no doubt it is far-reaching.

Officials with the International Aerospace Machinists Union informed their Salina members Monday that Hawker Beechcraft planned to close the facility. That announcement was followed later in the afternoon with a press conference by local government and other officials confirming the closure.

The company is due to pull all operations by Feb. 28, 2012, when the airplane maker's lease runs out on 484,000 square feet of space near the Salina Municipal Airport. There's little doubt that many, if not all, of those jobs will leave Salina before that date.

This closure means a loss of nearly 240 of the best-paying jobs in Salina. According to government reports, the average annual earnings for Kansas aircraft workers outside of Wichita is $53,004, including both entry-level and management employees.

By the time doors close on Hawker Beechcraft operations, $12.6 million in payroll will be lost from Salina and surrounding communities. We estimate a similar amount has disappeared already since the plant started losing workers a year or so ago. At one time employment was up to 500.

Those losses are a big blow to local economies no matter how one looks at it.

We know fingers of blame will be pointed at union workers, plant managers, plus city, county and economic development officials. But that would be wrong and unfair. We do not doubt that these and other folks did all they could to keep the plant and its jobs in Salina.

The problem rests with two powerful outside forces. For starters, we are in the greatest recession since the Great Depression. That is followed by aggressive competition from Mexico, which is offering U.S. companies top-flight manufacturing and training facilities at no cost. The country has a large pool of cheap labor, along with no labor unions, little government regulation and no environmental restrictions.

Slow sales make these lower manufacturing costs an irresistible attraction. That's true for companies making everything from cars to toys.

It's an unfortunate and harsh reality. For Salina, it comes with a $25 million annual price tag.

-- Tom Bell

Editor & Publisher

822-1491

tbell@salina.com

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Vote'em All Out says....
Why do the libs have to attack the conservatives and they think we supported Bush? He spent too much and was not conservative. We do not blindly follow our politicians like they do. If there is a 2000 page document - I would bet there is something I would disagree on. And please quit quoting the past "8 years" when he has not been in office for a year. Congress did more damage to the aircraft industry than anyone. Vote all the bums out in 2010 & 12!
11/16/2009

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Ruby says....
Soon or later,H will have to 'own' what he inherited and has made worse....face it dems.He is a tax and spend liberal that hasn't the experince for the job of president.Unemployment at ten percent,and the economy was 'stimulated' with our money not even made yet.Tax and Spend,this is what you get. Hows that hopey,and changey working dems?
11/16/2009

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says....
Dear Journal Reader & others - you might want to Google search this - use the quotes in the search "Obama kept piling on criticism" Also ownership of Hawker/Beech IS NOT TO BLAME for the aviation destruction from Obama and his administration that added significantly to an already miserable recession problem. No Business minded individual would ever imagine Obama and his administrations negative statements and attacks would be directed toward aviation in their own country by their own President and administration. Show me that the president of Brazil (Embraer) followed Obama’s destructive statements or how about France President (Dassault) slamming his aviation industry as Obama and his administration has, or how about Japan, (MRJ), Russia (SuperJet), China (ARJ21) and Canada (Bombardier) making similar statements slamming the aviation industry in their country. Nope - Not one negative word from the rest of the world’s presidents – Only Obama and his administration followed a horrible business practice of slamming one of the most productive industries in the world in your own country to gain favor from proletarians and other unknown reasons.
PILOT

11/16/2009

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Informed Individual says....
Tom: Who do we blame that put us in the recession? Oh..that's right -- the housing market played a big part -- now lets see Saline, Salina housing values continue to go up almost every year according to the county and people get tired of fighting with them about the values even though 90% of the time the county is incorrect so people try to sell their homes at county appraised value when most of the time that value is off sometimes as much as $20k and most people are doing that..so if the housing bust attributed to the recession and the county is setting prices for housing, through tax valuation that means the county is in part responsible for Hawker-Beach leaving. Lets go to city now and economic development committe -- What new manufacturing or other type of business has come to Salina in the last 5 years that has created 50 jobs or more...None. Now the city says "Quality of living, will bring in jobs" However, haven't we been doing that and it has not worked? So perhaps the city should not spend 400k on a "River Walk Project" and use that money for tax incentives for business to come in with higher wage jobs, or better yet why not just offer that 400k as a tax break to Hawker-Beech...so I guess we can also in part blame the city government for not doing everything they could. The point is there is a HUGE difference between doing ALL THEY CAN and doing ALL THEY WANT TO DO.
11/14/2009

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missed out says....
50k plus benefits and retirement. I missed out on that gravy train. And, no 20k student loans to pay off. Thats better than a no work gov job.
11/14/2009

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dee says....
I have seen alot of things that has caused an impact on the economy as a whole.We can blame them one many things! I have seen that they stem from from ampatathay to down right greed. We as a people can do just one thing.That it is to take action and react! That time has come. It is time to quit blaming on things that we feel that are out of are control. Get involed in the things that you feel that affects you or all of us! Do you have any idea what the power of the pin has over the gun? Let us see now.
11/14/2009

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Journal Reader says....
How short are the memories of some people. President Obama did NOT demonize anyone for using private jets. When the heads of the Big Three automakers flew to Washington, D.C. to BEG for money to bail out their companies it was learned (in the committee hearing room) that they each arrived by private, corporate jet. The Congress, the Senate AND the general public took exception to that. When you go begging money you don't travel lavishly. (They'd have been smarter to carpool or take Amtrak.) It was the CEO's and CFO's of Ford, GM and Chrysler whose actions caused people to take offense at the way they flaunted their wealth while begging for taxpayer money. President Obama has not "demonized" ownership of private aircraft, either by individuals or businesses. Blame those executives who went to Washington, hat in hand. Blame the economy worldwide for the fact that luxury items (including private aircraft) became something people stopped buying. Blame the ownership of Hawker/Beech for not seeing the handwriting on the wall a long time ago. These are the entities who are largely responsible for what has happened. Just get the facts straight. President Obama had nothing to do with what has happened to Beech.
11/14/2009

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says....
Thanks Tom for writing about the true reality of the situation. Up until now everyone has not seemed worried or concerned about the possibility of this happening although they have had clues and rumors.
11/13/2009

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Just sayin' says....
And, happy dem., lets not forget to include Obama because his administration was the one who demonized any business who used private aviation. Obama is also the one who is threatening to raise corporate taxes. And while you are at it, lets not forget to thank the unions for their greed!
11/12/2009

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PILOT says....
Happy, Yea lets thank both bush’s they were both fighter pilots and loved aviation and loved aircraft but the Bush’s destroyed the business jet industry and lost teh jobs in Salina and around the world and then lets thank the greedy CEO’s that bought the jets that would be manufactured in Salina for this mess. They should not have been so greedy as to buy business jets they should visit their offices throughout the USA by Greyhound bus. Greedy CEO’s that bought the multimillion jets to use as corporate tools they are to blame big time it’s a good thing they are not buying jets anymore. But whatever we do let’s NOT Blame Obama, because he and his administration did everything in their power to keep aviation business going strong and never said a bad thing about business jets - and like Bush, Obama just loves business jets, he loves flying and has a huge passion for the aviation industry and he wants every company to buy a new jet including the companies that get TARP funds. Pilot
11/11/2009

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says....
let's not forget what administration condemned the execs of the auto companies for taking their jets for a meeting in DC, and sent the airline manufacturing in a tailspin
11/11/2009

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says....
how about blaming "your" president and other democrats for demonizing the "rich" to the point they quit spending their money on items like airplanes, hence, no reason to build them, hence, no work!
11/11/2009

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jim says....
It doesn't matter who's to blame, it happened when Goldman Sachs became a majority owner in Hawker/Beechcraft 3 years ago. Their reputation preceeded them because they turn profits by outsourcing, down-sizing, and selling off pieces of the whole all in the name of making profits. The writing was on the wall then but none of us believed it would become true because of the history of the company's standing here in Kansas. Even today they know it will take a long time for Mexico to eventually build planes with the efficiency Salina and Wichita workers do but when the company is saving almost $100,000 annually per employee by the time wages and benefits are calculated, they can afford the offset of delays, especially when the market need is at it's lowest. The term "free enterprise" is taking on a new definition as each year goes by with more american owned companies turning to third world countries for cheap labor, cheap infrastructures, and fewer operating restrictions. This is how Goldman Sachs rewarded it's workers, the taxpayers of Kansas whose tax money kept them afloat instead of filing bankruptcy; by taking their jobs away. That's not only bad business, it's obscene.
11/11/2009

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Steve says....
happy dem.-- Don't forget to mention Obama and the unions for their contributions. Obama chastized businesses for using their business jets, thus making private aviation very unpopular, and the unions have been seeking more and more benefits.
11/11/2009

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Had enough says....
I don't see you hero doing anything about anything.Jobs keep leaving.And all we get are mall stores
11/11/2009

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happy dem. says....
lets thank bush and the greedy ceos for this mess.
11/11/2009

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