Dow 30 Component Boeing Hires Retirees in Effort to Catch 737 Production Lags In Seattle
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.
In an effort to fix delays at its 737 jetliner plant outside of Seattle, Washington, the Boeing Co is bringing in retired workers. The hiccup was caused by a shortage of engines and fuselages as the company sped up production to record levels this past June. This snag could hurt third-quarter results and threaten Boeing’s goal to increase its build rates in the 2019 year.
Aircrafts with single-aisles like the popular 737 are the moneymakers for the two largest aircraft manufacturers in the world.
Boeing began the temporary hiring of the retire mechanics and inspectors after the company reached an agreement with the International Association of Machinists and Aerospace Workers on August 15. Last fall, Boeing formed another similar agreement with the union after a round of voluntary layoffs.
The company has already sent nearly 600 employees and new hires to the Washington location in the past few weeks to assist with fixing the delays. Boeing has not stated how many retired workers they intend to hire.
Paul Bergman, Boeing spokesman stated, “We are working closely with our suppliers Spirit and CFM as they track toward recovery, as well as our customers. Our team has been mitigating supplier delays, and our factory continues to build 52 airplanes per month.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!