Supply chain constraints hamper Boeing’s 737 Max production
• Boeing is trying to maintain an output of 31 carriers a month
The nightmare of supply chain bottlenecks continues to haunt aircraft manufacturer Boeing (NYSE: BA) which is experiencing a slump in the production of the 737 Max because of the shortages of a single type of wiring connector.
On Monday, Boeing CEO Dave Calhoun told CNBC that the manufacturer won’t ramp up production of its bestselling 737 Max yet because of supply chain constraints.
Calhoun said longer-term constraints on aircraft production are from engine makers, like General Electric and Raytheon Technologies unit Pratt & Whitney. He said that will likely persist over the next 18 months.
Last month, Boeing said that it expected supply chain problems to persist almost until the end of 2023, led by labour shortages at mid-tier and smaller suppliers.
In its first quarter results report, the company said it’s ramping up 737 Max output to 31 a month in the second quarter. Calhoun said that Boeing would focus on stabilizing that rate before increasing output.
Boeing is scheduled to report second-quarter results on July 27.
Source - CNBC
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