Why Is Spirit Aerosystems Down

Spirit Aerosystems SPR is down over 1 percent as investors and traders worry about the viability of Boeing's BA supply chain. Following the July 3rd derailment of fuselages being sent to Boeing's Renton plant in Washington state, market participants are questioning how well Boeing's supply chain can handle its production levels with jut one supplier.  Boeing has recently pushed itself to produce 42 of the 737 aircraft a month, up from 38 previously.  For such high expectations of production, pundits and investors alike are questioning the ability of Boeing to achieve these goals with only Spirit Aerosystems providing supplies.  This is a problem for Spirit because of the new supply agreement the company struck with Boeing back in April 2014.  Spirit has been a beneficiary of partnering with Boeing since the company can and does suspend repaying advances made by Boeing for work done on the 787s.  

As of 12:50 PM EDT Being shares were up 0.53 percent to $129.18 and Spirit Aerospace was down 1.34 percent to $33.78