Textron Says Newer Workforce Weighing on Jet Deliveries

Textron said Tuesday that workforce experience is a central factor in production problems at Textron Aviation. The aircraft manufacturer delivered 40 jets during the second quarter, down from 49 a year earlier. Commercial turboprop deliveries rose from 34 to 44 aircraft.

Half the Workforce Has Less Than Five Years

“We must become more efficient at meeting that demand,” Textron CEO Lisa Atherton said during Tuesday’s earnings call.

Atherton said an earlier increase in employee attrition has stabilized, though the company continues to operate with a relatively new manufacturing workforce. About 50% of Textron Aviation employees have less than five years of experience, compared with less than 30% in 2019.

“When you talk about those new employees that started coming in around 2022, we should start to see that yield next year, with employee productivity,” Atherton said.

She added that production employees generally need five to seven years to gain the experience required to work efficiently across the factory. Textron expects broader improvement in aircraft deliveries by the middle or latter part of 2027.

Training and Engineering Support

Textron has invested in a Career and Learning Center that screens and prepares new employees before they move on to the production floor.

Atherton said the company has also assigned more engineering resources to factory operations and increased supervisor training. The effort is intended to shorten learning curves and resolve production problems more quickly.

Remaining supplier problems have also added another layer of difficulty for the newer workforce. Atherton said late engines, spars and hydraulic components can force aircraft into out-of-station work, where employees must complete tasks outside the normal production sequence.

Textron Aviation reported quarterly revenue of $1.54 billion, segment profit of $165 million and a backlog of $8.03 billion. Textron Chief Financial Officer David Rosenberg estimated that productivity improvements could eventually generate about $150 million in incremental profit.