There is much less new business today than say 30 years ago.
Just been reading the US AOPA mag...
Back then they were working three shifts, 24/7, doing new engines. Today, much or most of their business is overhauls.
But I bet they still have the same size factory and the same admin staff i.e. similar fixed costs. Downsizing is very hard, especially as you can't just kick out just the least competent people. And anyway anybody with a brain will jump ship before (as they see it) it sinks totally.
And there is a deep recession in GA right now.