BA - Boeing's Production Slowdown Sends Shockwaves Through Aerospace Supply Chain | Benzinga
Boeing Co’s (NYSE:BA) ongoing production issues are causing uncertainty in its supply chain, as suppliers grapple with fluctuating production rates and the cost of excessive inventory.
What Happened: The slowdown in manufacturing the 737 Max is challenging an already strained aerospace supply chain. The industry has been dealing with price cuts and inconsistent production due to the Covid-19 pandemic and two fatal crashes that grounded the Max worldwide, the Financial Times reported on Wednesday.
Boeing is struggling to meet the demand from airlines due to these supply chain issues. The company’s ability to deliver jets is crucial for maintaining stability in an industry that employs hundreds of thousands of workers.
The Federal Aviation Administration has limited Boeing’s production of the Max to 38 per month. The company is currently producing fewer than that but plans to increase output to 38 in the second half of the year.
Suppliers, some of which are publicly listed companies with market ...