Boeing Co Plans To Keep Its Suppliers On Path
Boeing suppliers struggle to keep up with the corporation's plans of increase in production capacity; however, the aircraft manufacturer aims to sort out the same.
According to Wall Street Journal, Boeing Co. is now at the critical stage of developing a component for the new 737 model with its major suppliers. The aircraft maker doubts that the deferment in the component delivery may reduce its monthly production capacity that is going to hurt the Boeing’s plan to raise its production capacity.
People close to the matter said that GKM PLC, which makes the aircraft’s engine thrust reversers, will not be able to meet the monthly Boeing 737 MAX production requirement. In June, the company was in transition phase, which it effectively finished by changing the 737 production to latest 737 MAX versions. Boeing also looks to raise the production capacity to almost 52 aircraft a month by the end of fiscal year 2018.
Amongst the challenge, Boeing officials remain optimistic regarding its long term plans that will let the company compete with its competitors such as Airbus Group. The main reason behind the significance of production capacity expansion is that Airbus is also expanding its production levels to 48 jets every month by the end of current year.
Production capacity for a month is also very important for both Airbus and Boeing, due to both companies are competing against one another to get the highest amount of orders in a year. Manufacturing capacity is also critical for any possible buyer, as it ensures the aircraft delivery schedule.
The general manager and vice president of Boeing’s 737 MAX project, Keith Leverkuhn, said that the transformation is not taking place as fast as planned, however, he remained confident that GKN is putting on essential expertise required to meet the desired requirements.
According to the company, it has delivered an overall of 439 jets year to date, in contrast to Airbus deliveries of almost 353 jets during the similar time period. It is the greater production capacity that leads the company to surpass Airbus in delivering the most number of airplanes. In the long term, the company plans to keep its top position, which also escalates its operational revenues.
By raising the production capacity, the aircraft manufacturer plans targets to meet the demand of the market. Boeing Co. predicts that the market will need an overall of 38,050 aircrafts in the coming next twenty years valued at approximately $5,570 billion, out of the overall 38,050, the single aisle jets are most likely to meet highest demand of around 26,730 jets in the upcoming 20 years.
