“Global aircraft manufacturing supply chains are delayed at the gate. Wall Street Journal 2/24/2017”
Plane makers Airbus SE and Boeing Co. are bulging with orders for new planes, the WSJ’s Robert Wall and Doug Cameron report, but the companies can’t get the parts they need to finish the jets and deliver them to customers. Facing an aggressive order schedule, suppliers of seats, toilets and engine parts are stretched to the limit and sometimes-falling short. The building backup is the result of surging passenger demand that’s pushed carriers to upgrade and expand fleets, particularly fast-growing Asian and Mideast airlines. It highlights the sprawling and global nature of aircraft manufacturing, where parts built in far-flung corners of the world are brought together for final assembly. And the supplier problems are taking a financial toll, with at least one frustrated carrier canceling orders while Boeing and Airbus try to figure out how to speed up production in the coming years while they can’t even meet current demand.
Based on the above news report in yesterday’s Wall Street Journal, as a member of the management team of Boeing or Airbus, what recommendations would you give to the CEO to prevent such issues from cropping up again?
