Boeing prepares itself for 18 more months of supply chain instability as it increases production.
Dave Calhoun acknowledged that the group had suffered due to failures and shortfalls in its “very large, fragmented” supplier base.
Calhoun said that “a lot of wrestling matches” were required to solve problems in the supply chain of the aircraft manufacturer. He also stressed the fact that it was not worth pointing fingers at the source of the problem. He said, “We can’t just get angry.”
Boeing now wants to increase production. Boeing plans to increase the production of its 737 MAX jets from about 50 per month to around fifty by 2025. This is a rate that has not been reached since 2019, when all aircraft were grounded and manufacturing was reduced after two fatal crashes.
This year, the group faced many challenges and temporarily halted the delivery of several aircraft. These included the 737 Max due to incorrectly installed components, the 787 Dreamliner because of documentation issues and the 767 Freighter after fuel tanks that were not properly sealed were discovered.
Calhoun warned that global supply chains would rebuild “slowly and steadily”. What will it take to bring our supply chain up to the levels we have already discussed? I think it will be until the end next year that we’ll have stable, stable rates and a supply chain.
He added that the strong demand for airline seats will lead to restrictions “for a period of time”, “like five or even six years based on what we are all seeing now.”
Boeing was founded in Arlington, Virginia in 1916. Boeing is a manufacturer of commercial jets, aircraft for military use, missiles, and space technology. Its stock market value is $124 billion.
Calhoun stated that many of the suppliers in the group make a single part. Calhoun said, “And that’s the only supplier who makes that part.” We suffer when they fail or don’t react to a rate hike, but we must remain disciplined and work with the situation. We cannot just be angry at them. We cannot call them out publicly. We must work with them. We must help them get their workforce to where it was.
Our industry is not about numbers. It’s skills, it’s talent, it’s experience, it’s people.”
Spirit AeroSystems was identified as the source of the problem that disrupted production in April. The two fittings that connect the fuselage with the vertical tail of the aircraft were not correctly attached to the structure before it was sent off to Boeing.
Calhoun stated: “I won’t sugarcoat it, but this has been a tough and difficult time.” Calhoun said that Boeing and Spirit had a positive relationship, but also added that they were disappointed with “every next issue” that occurred that limited our rates or slowed us down.