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Boeing expects supply chain problems to last through most of 2023
Global Banking & Finance Review®
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DOHA (Reuters) -Boeing expects supply chain problems to persist almost until the end of 2023, led by labour shortages at mid-tier and smaller suppliers, partly due to the faster-than-expected return of demand, its chief executive said on Wednesday.
DOHA (Reuters) -Boeing expects supply chain problems to persist almost until the end of 2023, led by labour shortages at mid-tier and smaller suppliers, partly due to the faster-than-expected return of demand, its chief executive said on Wednesday.
Boeing said last month that production of its 737 aircraft had been slowed by shortages of a single type of wiring connector, while some of its airline customers had been forced to cancel flights due to a lack of staff in the post-pandemic recovery.
“The shift from demand to now supply issues … is remarkable, the speed with which it happened,” Boeing Chief Executive David Calhoun said at Bloomberg’s Qatar Economic Forum in Doha.
He said Boeing had a big, complicated supply chain with lots of fragility in it, leading to problems when there were delays.
“It’s been a real issue for both manufacturers and will probably stay that way in my view almost to the end of next year,” Calhoun said.
“And the biggest restraint of all for that mid-tier set of suppliers and sub-tier set of suppliers is labour availability, do we have a workforce,” he said.
Reuters last month reported engine maker CFM International, a joint venture between GE and Safran, was facing industrial delays of six to eight weeks in the wake of supply-chain problems.
Airbus last month said it saw growing short-term risks in its supply chain but voiced confidence that its global network of suppliers would ill be able to keep up.
(Reporting by Jamie Freed, Alexander Cornwell and Tim Hepher, Editing by Louise Heavens, Robert Birsel)
A supply chain is the entire system of production, processing, and distribution of goods, from raw materials to the final product delivered to consumers. It involves various stakeholders including suppliers, manufacturers, and logistics providers.
A labor shortage occurs when there are not enough qualified workers available to fill job vacancies in a specific industry or region. This can lead to production delays and increased operational costs for businesses.
A production delay is a setback in the manufacturing process that prevents goods from being produced on schedule. This can be caused by various factors, including supply chain disruptions and labor shortages.
Economic recovery refers to the phase following a recession where the economy begins to grow again, characterized by increased production, employment, and consumer spending.
A manufacturing supply chain is the network of processes and organizations involved in the production and distribution of goods. It includes sourcing raw materials, production, and logistics to deliver products to consumers.
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