General aviation manufacturing experienced a significant downturn starting in 1982. Mooney was affected along with other manufacturers and was forced to downsize through temporary layoffs. Despite the recession, development work continued. The 201 and 231 received more improvements, including significant reductions in cabin noise levels. In 1982, deliveries fell to 218 units, and in 1983 only 154 aircraft were produced. The United States Air Force announced a competition to develop a replacement for the Cessna T-41 trainer, and Mooney immediately began to develop a military trainer based on the 231.