Military aircraft industry suffering due to lack of components
2023.02.16 14:03
Military aircraft industry suffering due to lack of components
By Ray Johnson
Budrigannews.com – Meeting with Boeing Airbus SE and Co (OTC:) According to a Morgan Stanley (NYSE:) report, this year’s planned jet output increases will not be a “slam dunk” for the aerospace supply chain. Thursday’s survey of 80 suppliers revealed
According to the survey, while the aerospace industry is attempting to accelerate its recovery from a pandemic-driven slowdown as a travel boom fuels demand for jets, inflationary pressures and labor supply constraints are hindering their progress and have dampened sentiment.
Morgan Stanley analyst Kristine Liwag wrote in a note, “This comes as a surprise as we would have expected for sentiment to improve considering the industry focus on labor, inflation, and supply chain.”
Due to a lack of labor and parts, Boeing and Airbus have struggled to increase jet production. By the end of the year, the American planemaker plans to increase production of its most popular narrowbody jetliner, the 737 MAX, from a steady rate of approximately 31 jets per month to 38 jets.
In the meantime, archrival Airbus announced on Thursday that it was slowing down the production of its best-selling model.
Chief Executive Debbie Lee told Reuters earlier this month that the “biggest constraint” for Tool Gauge, a company that makes interior components for the 737 MAX and 787, is still worker shortages.
Smaller suppliers with annual revenues of less than $100 million made up approximately 63% of the responses to the Morgan Stanley survey, which was carried out at the Pacific Northwest Aerospace Alliance Annual Conference outside of Seattle.
Spirit AeroSystems’ (NYSE:) CEO stated, “We’re having to work with about a dozen suppliers who are in deep distress.” referred to earlier this month.
In morning trading, Boeing shares were down 1.1% amid broader market declines.
