Strike Expected To Have Minimal Effect On Economy

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Monday, October 8, 2012

McGinty Machine Shop makes a lot of parts for Bombardier Leajet. Right now, the company is not too concerned about the strike, saying it might be a blessing in disguise.

"I don't think it will be that bad," said President and CEO of McGinty Machine Shop Don McGinty. "I hope they get it worked out."

McGinty has seen his share of aircraft manufacturing strikes over the years. Some hurt more than others.

"General aviation is still down by 40-50%, so a strike hurts less during slow times than during busy time," said McGinty.

He says because the strike isn't shutting down the jet maker, McGinty won't be affected.

"Right now it will help us get caught up on some things that we are behind schedule on for Bombardier and Learjet, so that's a plus for us," he said.

Wichita State University Professor of Economics Martin Perline says the trickle down affect from the strike is hard to predict.

"If Bombardier is going to operate, and right now it looks like they are going to operate with people they have, so the loss is going to be lesser than if they weren't going to operate," said Perline.

With 800 fewer workers on the line, he says, yes, the economy will be affected but it won't be too harsh compared to strikes in the past.

For McGinty the strike poses just one challenge.

"If it goes on very long we won't have the shipments that we planned for this month and it will have an effect on cash flow down the road," said McGinty.


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