The translation of the heading to English is: "Boeing strike hits suppliers: A balancing act between savings and production capacities
- The Boeing strike causes significant problems for suppliers facing cost and production challenges.
- Suppliers may have to reduce their workforce and freeze investments while the strike delays the resumption of production.
Eulerpool News·
The ongoing strike of more than 33,000 Boeing workers in the USA, which has been in effect since September 13, is causing upheavals for the aerospace giant's suppliers. The family-owned company Independent Forge from Orange County, California, is facing the challenge of possibly reducing its production from five to three days a week to save costs, according to company president Andrew Flores. The remaining 22 employees are essential, especially when the strike ends and the demand for aluminum aircraft parts picks up again.
The situation for suppliers is further exacerbated, as 64% of Boeing employees on the West Coast voted against the company’s latest contract offer. This results in additional downtime in the assembly of Boeing's commercial aircraft and poses challenges for suppliers, who are already suffering from declining demand that followed high investments in the post-pandemic era.
The future of Boeing's aircraft production partly depends on how small suppliers like Independent Forge endure the strike. While Boeing itself does not comment on the situation, other suppliers have reported that they may be forced to downsize, freeze investments, or halt production entirely.
The CEO of Pathfinder, a supplier near Seattle, also finds himself forced to reduce his workforce. Other suppliers expect the strike to last for weeks, further increasing the pressure on Boeing's supply chain. Analysts fear that the ramp-up of production, particularly of the 737 MAX, could be significantly delayed due to staff reductions and the strike.
Shares of Boeing suppliers showed significant losses on Thursday. In particular, Spirit AeroSystems, which has already announced the layoff of 700 employees, sees the ongoing strike as a reason to consider further layoffs. Modern Financial Markets Data
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