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Boeing's fraying 737 MAX suppliers see capacity crunch
Reuters ^ | February 7, 2020 | Eric M. Johnson

Posted on 02/07/2020 5:33:51 AM PST by Freeport

LYNNWOOD, Wash. (Reuters) - Boeing Co suppliers are shedding jobs and capacity to cope with a halt in 737 MAX output, but while that staves off chaos, aerospace executives worry the industry might be unable to ramp factories quickly enough when the plane wins approval to fly again.

Boeing, struggling to restore public confidence and recover from the biggest crisis since its founding in 1916, has halted production of the once fast-selling 737 MAX, which was grounded in March following two deadly crashes.

As a result, industrial heavyweights like fuselage maker Spirit Aerosystems have already laid off workers.

Now a cluster of other crucial companies small and big that forge metal, assemble and paint 737 MAX winglets, and build data systems have followed suit with no indication that Boeing will offer a lifeline, people familiar with the matter said.

Losing payments and workers in a tight labor market heaps pressure on Boeing’s U.S.-dominated 737 MAX supply chain, which involves hundreds of suppliers of more than half of the roughly 400,000 parts for each 737 built in the Seattle-area.

... Joe Marcheschi, Airbus’ head of procurement for North America, said the biggest worries were less diversified companies lower down the supply chain, such as castings and forgings.

“That’s where it’s going to hurt,” Marcheschi said. “It just takes one. They are building one critical product and unfortunately they are the single point of failure in the whole supply chain.”

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: 737; aerospace; boeing; manufacturing; suppliers
Well, the industry in general has consolidated to this point due to the Boeing/Airbus rivalry. I find it humorous, and quite infuriating, that the folks who created the market are now complaining about its lack of depth.
1 posted on 02/07/2020 5:33:51 AM PST by Freeport
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To: Freeport

Jobs report today had 12000 lost manufacturing jobs. Wondering how much of that is tied to Boeing?


2 posted on 02/07/2020 5:38:22 AM PST by DAC21 ( and Naflet)
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To: Freeport

I am not literate on discerning which type of 737 I am in, but the new ones have no room at all in the lavatories. Maybe First Class is different, but the lavs in coach are so small that you cannot turn around in them.


3 posted on 02/07/2020 5:48:01 AM PST by originalbuckeye ('In a time of universal deceit, telling the truth is a revolutionary act'- George Orwell..?)
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To: Freeport

Well, the industry in general has consolidated to this point due to the Boeing/Airbus rivalry.

...

Actually, it’s a duopoly which is quite lucrative.


4 posted on 02/07/2020 5:48:22 AM PST by Moonman62 (Charity comes from wealth.)
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To: DAC21

Castings and forgings always seem to be the weak link. Dirty, dangerous, and demeaning.


5 posted on 02/07/2020 6:05:41 AM PST by caltaxed (ake)
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To: originalbuckeye
but the new ones have no room at all in the lavatories.

I actually time my meals as to avoid needing to use the lavatory on flights. I also use the rest rooms in the airports before boarding.

It might seem like a strange thing to do, but you won't see me standing in line to squeeze into that tiny little room.

6 posted on 02/07/2020 6:27:23 AM PST by Jeff Chandler (BLACK LIVES MAGA)
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To: originalbuckeye

The interior is up to the airlines. Boeing only puts in what they want. So complain to your airline of choice... who knows, they might listen... Hahahahahahahahaha! No not really.


7 posted on 02/07/2020 6:28:14 AM PST by Freeport (The proper application of high explosives will remove all obstacles.)
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To: originalbuckeye

Not ADA compliant. ....how do they get away with that?


8 posted on 02/07/2020 6:38:47 AM PST by redshawk ( I want my red balloon. ( https://youtu.be/V12H2mteniE))
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To: redshawk

That’s why I’m wondering about the First Class lavs. I suspect they have to be compliant with only one.


9 posted on 02/07/2020 7:58:11 AM PST by originalbuckeye ('In a time of universal deceit, telling the truth is a revolutionary act'- George Orwell..?)
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To: Freeport

I just talked to a friend who works at Boeing. The company is in deep trouble because of management errors. Many of their managers were hired because they looked good on their resume but turned out to be inept. Their poor decisions have caused expensive problems in production. They also contribute to poor moral because of their stupid treatment of the workers. Good experienced workers leave because they can’t stand the unfair treatment.

Suppliers are sending defective parts continuously. When a part is found defective, Boeing lets them get away with it by not demanding a refund or a replacement part that meets the requirements. A lot of money goes down the drain because of shoddy work and management not doing their job to stop this problem.


10 posted on 02/07/2020 1:06:29 PM PST by jonrick46 (Cultural Marxism is the cult of the Left waiting for the Mothership.)
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