Orange County’s largest aerospace and defense contractors posted a modest drop in local employment in the past year.
The 27 largest companies shed 67 jobs over the 12 months ended Sept. 30 for a total of 24,436 workers, about flat.
It was the second straight year with a slight downtick in employment, ending a five-year cycle of alternating job gains and losses. The companies on last year’s list shed 90 positions, a loss of less than 1%.
The operations here, which include 55 local offices and sites, make various parts and systems for commercial and military aircraft, as well as weapons and testing equipment, among other products.
Four are based in OC, and the rest have subsidiaries and other significant operations here.
Companywide employment for the combined group was 954,408, up 2.3% from a year earlier.
Five companies added local employees, three companies cut workers, and 19 were Business Journal estimates or didn’t provide enough information for a yearly comparison.
• The list, which ranks companies by number of local employees, was led by perennial No. 1, Boeing Co.
The Business Journal estimates the Chicago-based company shed about 367 local positions, primarily in Huntington Beach, ending the period with 6,103 workers. The company had planned to cut 567 employees at its Huntington Beach operation starting in mid-April 2015 and ending next month, according to filings with the California Economic Development Department.
Boeing, which has shed more than 3,500 local employees in the past six years or so, is adding workers at its Long Beach and Seal Beach support centers for commercial customers. It planned to add about 1,000 engineering jobs combined at the locations over time.
• No. 2 Lake Forest-based Panasonic Avionics Corp., accounted for nearly all of the job gains on the list, adding 346 employees to 2,290. The 17.8% increase also was the highest percentage gain on the list.
The unit of Panasonic Corp. of North America has been on a hiring push the last few years as more airlines select its in-flight entertainment systems. Recent deals include supplying broadband connectivity for 84 aircraft operated by China Eastern Airlines; a one-year trial extension with China Telecom Satellite to provide in-flight connectivity to more than 20 foreign airlines that operate some 1,000 aircraft over Chinese airspace; and outfitting a fleet of 30 Airbus A320 aircraft operated by Saudi Arabian Airlines with its latest generation HD in-flight entertainment product.
The company, which accounts for more than $1 billion in annual sales as part of Japan-based Panasonic Corp., has added more than 600 local jobs in the last two years.
• Huntington Beach-based EnCore Aerospace LLC moved up two spots to No. 12 with 600 local employees, about 500 spread evenly between Huntington Beach and Brea, and another 100 in Seal Beach.
Its newest business unit, LIFT, which tests and manufactures airline seats—one of the most difficult certifications in the airline business—is the company’s big growth driver in the coming years, given strong demand for new commercial aircraft production in the U.S. and internationally and the tough barrier to entry for new players.
“In the interior world, it’s the hardest one to get into,” Chief Executive Tom McFarland told the Business Journal during a recent tour of its headquarters, which was outfitted with one of the few dynamic crash test chambers in the world.
EnCore’s other divisions produce galleys and handle various subassembly work. An international unit was established in Tijuana last year to handle production and delivery of sidewall panels and cargo liner compartments for the Boeing 787-10.
The company is projected to hit $100 million in revenue this year with a strong backlog poised to double sales by 2019 without any new business, according to McFarland.
• Brea-based Kapco Global was the only newcomer on the list, debuting at No. 21 with 198 local employees.
The Business Journal in June reported that its acquisition of Avio-Diepen in the Netherlands created the largest independent distributor of aircraft parts in the world, with operations in eight countries and hubs in key markets in the Americas, Europe and Asia.
The combined company, which has about 600 employees and annual revenue of $575 million, is better positioned to compete against the distribution units of aerospace giants Boeing and Airbus Group SE.
