Boeing Suspends 737 Max, Hits Supply Chain: FT

Boeing announced a temporary suspension in production of its 737 Max airline. Regulators and airlines grounded the plane after two crashes within five months. The world's largest aerospace manufacturer depends on a deep global supply chain for the plane’s many parts, and the suspension in production hits suppliers. Safran, based in France and the world’s third largest aerospace supplier, had warned in September that the plane's grounding would cost the company about €300 million per quarter. Safran and General Electric, a US company already experiencing financial troubles, are in a joint venture to produce 737 Max engines. The Financial Times reports on the many high-tech companies, large and small, supplying parts to Boeing. The company reduced production in April with 400 planes in inventory, reports Supply Chain Dive. The global supply chain allowed Boeing to be nimble with production capabilities, and suppliers and workers expect the company to be forthcoming on the 737 Max’s problems as well as the schedule for a return to the air. – YaleGlobal

Boeing Suspends 737 Max, Hits Supply Chain: FT

Boeing announces suspension of production for the 737 Max, inventory piles up and hundreds of suppliers around the world scramble to handle the disruption
Sarah Provan and Archie Hall
Wednesday, December 18, 2019

Read the article from Financial Times about Boeing’s announcement on suspending production of the 737 Max.

Also read the article from Supply Chain Dive.

Read 737 Max updates from Boeing.

photo of Boeing factory floor with supplies

(Source: Boeing)

  ~70 percent of commercial aircraft revenue comes from foreign sales.  Network of 20,000+ suppliers and partners. 11 R&D centers, 16 consortia and 22 joint research centers. Relationships with more than 50 international universities

(Source: Boeing)

Boeing image of 787 showng national source of various parts in academic article

Multi-sourced: Boeing touted the global supply chain for the 787 Dreamliner (Source: Boeing and ResearchGate)

Copyright The Financial Times Limited 2019. All rights reserved.

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