Boeing Strike Threatens Supplier Jobs and Delays Investments
The Boeing strike, which began on September 13 with 30,000 machinists walking off the job, is causing significant disruption among aerospace suppliers. Pathfinder Manufacturing, an aerospace supplier near Boeing’s Everett factory, has already furloughed 14 of its 54 employees. CEO Dave Trader fears more furloughs if the strike continues. The company, which also trains high school students for aerospace careers, has sent those students back to classrooms, further straining the industry’s need for skilled labor.
Boeing’s supply chain is feeling the pressure as workers are furloughed, and investments are delayed. Boeing suppliers, including Pathfinder, are concerned about the potential long-term impacts on their workforce, with some workers’ health care benefits being covered in hopes they return after the strike.
Boeing’s credit rating is close to junk status, and its defense division has been losing money. The strike affects production of key aircraft like the 737 MAX, 767, and 777, halting progress and slowing down the recovery of the aerospace industry.
Boeing has placed most of its white-collar workers on rolling furloughs and frozen parts orders, excluding the 787 made in South Carolina. The company is struggling to balance the need for cash savings with the ability to scale up production post-strike.
Meanwhile, suppliers like New Tech Industries, heavily reliant on Boeing orders, are postponing equipment upgrades. Many Boeing suppliers fear the future, as Airbus continues to outproduce Boeing two-to-one, leaving the U.S. aerospace giant in a challenging position.
Related News: https://airguide.info/?s=boeing, https://airguide.info/category/air-travel-business/safety/
Sources: AirGuide Business airguide.info, bing.com, bloomberg.com, yahoo.com