By Allison Lampert and Dan CatchpoleSEATTLE (Reuters) – Progress in increasing production of Boeing’s popular 737 MAX jet has been intentionally slow since the end of a debilitating strike at many of the company’s U.S. plane factories over a month ago. Safety inspectors at the 737 MAX factory near Seattle have been meticulously examining partially built planes to catch any missed flaws from the seven-week work stoppage. Other workers have been studying manuals to renew their expired safety licenses. In mid-November, the factory was so quiet that one employee even left early because the fasteners he was supposed to replenish were not being used, according to a plant insider. As a result, no new 737 MAX planes have been completed. Boeing confirmed last week that it had restarted MAX production, as first reported by Reuters.Boeing’s cautious approach, which contrasts with past criticisms of rushing production, has received praise from regulators and some airline CEOs. However, some smaller suppliers who had reduced staffing or operating hours during the strike are now hesitant to ramp up production again, adding to uncertainty in the already delicate supply chain, according to three suppliers, one analyst, and an industry source.Both Boeing and rival Airbus have faced challenges in meeting production targets due to supply chain disruptions. Boeing CEO Kelly Ortberg had warned analysts in October about potential challenges in the supply chain after the strike.Parts that previously took a day to finish at processing shops now require a week, according to one supplier interviewed by Reuters.This account of Boeing’s efforts to resume production of its top-selling jet is based on interviews with a dozen Boeing factory workers and ten suppliers, most of whom requested anonymity due to media restrictions. It demonstrates Ortberg’s commitment to cautiously restarting 737 MAX production, prioritizing safety and quality amid increased regulatory scrutiny following a mid-air panel incident on a relatively new plane in January. The interviews also revealed that some suppliers are still recovering from the strike, compounded by reduced plane production during COVID-19 and the 2019 grounding of the MAX following two fatal crashes.Boeing spokesperson Jessica Kowal stated, “We will continue to gradually increase production while prioritizing safety and quality, meeting regulatory and customer expectations. We will collaborate transparently with our suppliers, addressing concerns and seeking opportunities for improved cooperation to ensure the safety and reliability of our entire production system.”FAA ON-SITEAfter weeks of inactivity, recent reports indicate renewed activity at Boeing’s Renton 737 MAX factory, with green fuselages entering the final assembly line for wing and tail installation. Although the restart does not immediately alleviate pressures, it is positive news for fuselage supplier Spirit AeroSystems, which faced storage challenges during the strike. A Reuters visit to Spirit’s Wichita facility revealed over 100 MAX fuselages lined up this week.Spirit Aero spokesperson Joe Buccino mentioned the company’s close collaboration with Boeing during the production restart. Privately, Boeing executives aim to produce 15 to 20 MAX jets this month, as shared
They were warned that hitting the higher end of the target is unlikely. The Boeing spokesperson did not provide any comment on those figures. Boeing typically shuts down most of its plane-making operations between December 24 and January 1. While specific production numbers are not disclosed by Boeing, the company mentioned in October that prior to the strike, they were aiming to reach a target of producing 38 737 jets per month by the end of the year. Daily tasks at the factory involve meticulous cleaning and error prevention efforts, with FAA officials seen carrying clipboards and wearing reflective vests regularly. FAA Administrator Mike Whitaker commended Boeing on December 5 for not immediately resuming production after the strike, but instead focusing on workforce and training. Whitaker also mentioned that Boeing still has a long way to go in establishing the desired safety culture. Stabilizing Boeing’s MAX production is crucial for both the company and the financial stability of its supply chain, given the large number of outstanding airline orders for the jet. Several suppliers indicated they would not rehire workers before 2025 due to uncertainty regarding potential changes in Boeing’s production plans. Boeing is expected to provide private updates to key suppliers on a critical internal 737 supply chain production milestone this month. Supplier confidence in Boeing has decreased, with concerns arising from past investments that did not align with production rates. Boeing is expected to face challenges in returning 737 MAX production to pre-strike levels, with smaller suppliers in Washington state particularly impacted by the prolonged recovery process. Smaller aerospace suppliers have shown less enthusiasm for capital investments compared to larger counterparts. Despite the strike, aerospace producers increased orders for manufacturing technology in October to enhance production efficiency.
Local Business Owners Face Challenges Amid Post-Strike Recovery
In the aftermath of a recent strike impacting the aerospace industry, local business owners are grappling with ongoing delays as they strive to navigate the turbulent aftermath. Hobart Machined Products, a family-owned business operating since 1978, has found itself facing hurdles in getting their metal aircraft components processed in a timely manner following the strike’s conclusion. The workshop, nestled beside the couple’s residence, has been a hub of innovation and precision engineering, with a reliance on finishing specialists to anodize and paint their intricate parts before they make their way to larger companies serving the likes of Boeing.
Previously accustomed to a swift turnaround of just a day for finishing processes, the couple now find themselves contending with a week-long wait due to staffing shortages at the specialist facility, a consequence of layoffs during the strike period. Refusing to compromise on quality or customer commitments, the couple is left with little choice but to adjust their production schedules, potentially expedite certain orders, and incur additional costs to ensure timely delivery to their clients. With uncertainty looming over the industry’s stability, the decision to refrain from expanding their workforce reflects a cautious approach to managing resources in the face of ongoing challenges.
Meanwhile, at New Tech Industries in Mukilteo, Washington, co-owner Carmen Evans echoes similar sentiments as the business prepares to ramp up production of specialized tooling for their prominent client, Boeing. Despite the readiness to meet increased demand, the company finds itself in a state of anticipation as they await the resurgence of activity at Boeing’s MAX factory complex in Everett. The lingering effects of the strike have created a sense of stagnation, with the anticipated influx of orders from Boeing yet to materialize fully, leaving suppliers like New Tech Industries in a state of limbo.
Reflecting on the prevailing circumstances, Evans acknowledges the cautious optimism shared by many in the industry, noting that the anticipated rebound in business has yet to materialize in full force. As businesses strive to adapt to the changing landscape and navigate the uncertainties that lie ahead, a sense of resilience and determination underscores their efforts to weather the challenges posed by recent disruptions.
The road to recovery for these local businesses is fraught with obstacles, yet amidst the adversity, a spirit of perseverance and adaptability shines through. As they navigate the complexities of a post-strike environment and grapple with the implications of ongoing delays, these business owners remain steadfast in their commitment to delivering quality products and upholding their longstanding relationships with clients. With a sense of cautious optimism guiding their actions, they forge ahead, embodying the resilience and tenacity that define the entrepreneurial spirit in the face of adversity.
In a landscape marked by uncertainty and fluctuating demands, the resolve of these local businesses serves as a testament to the unwavering dedication and unwavering spirit that fuels their pursuit of success in an ever-evolving industry. As they confront the challenges ahead with determination and resilience, the path to recovery may be arduous, but their unwav
