Boeing's Frustrating Supply Chain Saga: From Progress to 'Surprise Issues'

  • Boeing Co BA reportedly said the company's progress on resolving supply chain problems has been "frustratingly slow."
  • Even as airlines' overall demand for planes has bounced back to pre-pandemic levels, it will take five years for aircraft makers like Boeing and Airbus SE EADSF to meet customer demand for new planes, Reuters reported citing statements from CEO Dave Calhoun at Bernstein conference.
  • The report mentions that Boeing regularly tracks 25-30 parts from a subset of suppliers that have previously faced production headwinds.
  • Also Read: Boeing's 'Worst Enemy' Is Themselves: Analyst Breaks Down Latest 737 Max Problems
  • But "surprise issues" can still crop up from certain inexperienced suppliers who suddenly may demand an urgent next-month delivery from Boeing at short notice.
  • However, Boeing has seen improvements in some aspects of its supply chain, such as engine forgings and castings, the report added.
  • During the recently-reported first quarter, Boeing said it is "progressing through recent supply chain disruptions," gaining pace with solid demand across its key markets.  
  • The company has recently been in the headlines for boosting its widebody 787 Dreamliner production target from three to four planes per month.
  • Also, Boeing plans to add a second production line to the facilities in Charleston, South Carolina.
  • Price Action: BA shares are trading higher by 2.51% at $213.18 on the last check Friday.
  • Photo via Wikimedia Commons
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