The Supply Chain Continues to Recover and Evolve

Just when you think it’s safe to go back in the water, you hear that music – da-da, da-da, dum de dum de dum – and suddenly Jaws reappears.  It certainly seems that way with the most recent Boeing “quality escapes” and the fact that their planned rate growth is pushed further to the right by the FAA.

Airbus is continuing its planned production ramp-up, and ironically, the Boeing slow down could help suppliers having difficulties with critical parts to improve delivery performance to Airbus.  When trouble hits the duopoly, one of the players is likely to hurt more than the other.  One of the major selling points for the MAX was availability a couple of years earlier than Airbus models.  But the recent Alaska Airlines decompression incident forced the FAA to intervene and cap Boeing’s production ramp until their quality system can be improved.