Boeing Aims to Shut Down “Shadow Factories”

Boeing has acknowledged that its production rates have not kept pace with aircraft sales, but the manufacturer is now striving to return jet production to the levels seen before the fatal crashes in 2018 and 2019, and an incident last year involving a mid-flight door plug detachment.

According to the Wall Street Journal, Boeing plans to clear out the aircraft currently stored in what it calls ‘shadow factories.’ These facilities, described as production lines where mechanics and engineers are tasked with fixing, maintaining, and updating planes rather than manufacturing new ones, are primarily located in Moses Lake and Everett, Washington. Here, work is focused on the 737 MAXs and 787 Dreamliners. A year ago, Boeing reported housing approximately 225 jets in these shadow factories, a number it aims to reduce to 115 by 2025.

The 737 MAXs stored are largely those affected by the global grounding following the crashes, while the 787s are held back for inspections to ensure correct assembly after concerns over production processes were raised. The Wall Street Journal notes that shadow factories often require the dedication of Boeing’s most experienced workers and that the rework and inspection processes can sometimes extend beyond the time it takes to produce a new aircraft.

This initiative to phase out the shadow factories is part of Boeing’s strategy to recuperate from a 14% drop in full-year revenue from 2023. The company also reported that its total backlog had grown to $521 billion, which includes over 5,500 commercial aircraft, a figure swollen by production delays and a nearly two-month-long machinists’ strike.

CEO Kelly Ortberg is reportedly aiming for a production rate of 38 737 MAXs per month and plans to shut down the shadow facilities by mid-year. Analysts noted that Boeing managed to produce 20 such aircraft in January alone.

Meanwhile, Southwest Airlines CEO Bob Jordan has recognized Boeing’s progress but indicated that the airline does not anticipate receiving the full number of jets originally promised for 2025.

Related news: https://airguide.info/?s=boeing

Sources: AirGuide Business airguide.info, bing.com, Wall Street Journal