Boeing CEO Frustrated by Slow Progress in Resolving Supply Chain Issues

Boeing CEO Dave Calhoun expressed frustration over the slow progress in resolving supply chain issues, despite the rebound in airlines’ demand for planes to pre-pandemic levels, as reported by Reuters.com.

While certain aspects of Boeing’s supply chain, such as engine forgings and castings, have shown improvement, Calhoun noted that aircraft manufacturers, including Boeing and its European counterpart Airbus, will continue to face constraints in meeting customer demand for new planes “five years from now.”

Calhoun emphasized the need for strategic management of supply to match the surge in demand. Boeing closely monitors 25-30 parts from select suppliers that have previously encountered production challenges, which has provided better visibility into potential issues. However, unexpected problems can still arise when suppliers lack experience or fail to replace talented individuals, leading to defects or delays that impact delivery schedules.

One current challenge is the bracket installation defect affecting deliveries of the popular 737 MAX 8 model, manufactured by Boeing and Spirit AeroSystems. Calhoun stated that this issue has resulted in the loss of approximately 25 aircraft, but it is manageable, and production can still be ramped up to 38 jets by the end of the year.

In a previous statement, Calhoun anticipated that supply chain constraints could persist until the end of 2024, aligning with comments made by Airbus Chief Executive Guillaume Faury, who projected a return to pre-pandemic production levels by the end of 2024 or possibly in 2025.