Boeing's Outsourcing of Aircraft Production

State University of New York, Buffalo ^ | March 2005 | David Pritchard and Alan McPherson

[pttttt]

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4. Boeing’s Growing Dependency on Japan

Japan’s technological leadership in composites is one reason that Boeing is going to contract 35 percent of the 787-airframe structures to Japan. In an interview with Paul Lagace, MIT Professor of Aeronautics & Astronautics and Engineering Systems, “the United States lags behind Japan, Spain and Russia in aircraft composite technology” (Lagace, 2004). Boeing’s airframes have changed very little since the introduction of the 747. With Airbus introducing major technological advances over a relatively short corporate lifetime, Boeing has been forced to move into this all composite aircraft. In the past, when Boeing was the world’s leader in commercial aircraft manufacturing, it rested on its position in the industry and did not invest heavily in research and development for its commercial product line.

A further cause for concern is that Boeing has been trailing Airbus for many years with regard to R&D spending and capital investment (see Figures 1 and 2). In 2003, for example, Airbus allocated 9.5 percent of its total revenues toward R&D, compared to 3.5 percent for Boeing. In the same year, Boeing allocated only 0.97 percent of its total revenues to capital investment, compared to 9.1 percent for Airbus. While these percentages will no doubt increase as the A380 and 787 programs unfold, the fact that Boeing has underinvested for so long suggests that the ‘catch-up’ game in technological and engineering terms will be difficult to play. This decline dismantles U.S. technological and manufacturing communities from within, eroding the network of relationships, expertise and authority developed over decades (Sorscher, 2004).

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[pttttt]

Without commenting on the recent Air Force tanker decision, this is not your father's Boeing. Many people may not be aware that they have already offshored a LOT of their aircraft production.

[Yo-Yo]

They offshore so much production to Japan because they sell so much to Japan.

[Yo-Yo]

Here's a picture of aircraft tails that have so far purchased the Boeing 787. How many US airlines can you spot?

Here's Boeing's customer list for the 787 in .pdf form.

[ears_to_hear]

Boeing is an international firm. They take all the off shoring benefits and then want to cry foul when a contract goes to another international firm.. tough as far as I am concerned !