RE: how do they do it?
All the coverings are pre cut with using metal dies. I took the covering off a Lanier edge 540 without damaging the covering. I used the old covering as a template and you would have been amazed how easy the covering went back on when the pieces are cut to PROPER SHAPE. If I ever scratch build a plane again I will use vary thin tissue paper to make a template, then cut the final shapes for covering it's the only way to go.
I also saw a picture of the inside of a plant in china on the Internet and saw stacks of coverings and the metal templates that made them, their were also lots of wooden jigs for frame up, I did not save the site (sorry) it was a interesting look inside the workings of a ARF MFG.