In 2012, deliveries of large commercial jets manufactured by Airbus and Boeing exceeded $88 billion in value, at estimated prices, up 57% since 2008. During that same four-year period, the global economy had its worst years since World War II. The macroeconomic recovery has been anemic, and demand for air travel only marginally better. While airline revenue passenger kilometers grew 6.9% in 2010 following a 3.5% decline in 2009, growth eased to just 5.3% in 2011.

Dislike Boeing's decision to follow Airbus and reengine its single-aisle product? You are not alone. Many analysts and commentators have expressed disappointment.

Is the aerospace industry on the cusp of a great wave that will shift work to low-cost producers in China? Or is offshoring a minor phenomenon being exploited by companies to win concessions from workers and local governments? Taking the former view is William C. Parr, a faculty member of the University of Tennessee's Aerospace Executive MBA program. He recently returned from a three-month stay in China, where he taught and conducted research on offshoring and Chinese management practices.