Boeing has made headlines by announcing the acquisition of its largest supplier, Spirit AeroSystems, in an $8.3 billion deal. This move comes after 19 years of outsourcing parts production for its planes. However, industry experts warn that it will take Boeing several years to address the financial and quality issues that have plagued both companies. Some critics compare the deal to “two drunk guys at a bar saying I’m too drunk to drive home” and getting in the same car together, as it may not solve the underlying problems.
One of the major challenges for Boeing will be improving Spirit’s operations and integrating them with its own while dealing with a host of other issues. Manufacturing quality is a key concern, as a recent incident involving a Spirit-made panel on a Boeing 737 Max resulted in a federal investigation. Some experts question Boeing’s ability to address quality issues, as the company itself is not immune to operational challenges.
Boeing’s CEO, David Calhoun, sees the acquisition as an opportunity to strengthen the company’s manufacturing capabilities and enhance quality. The move also aims to bring critical airplane manufacturing work back into Boeing’s factories, allowing engineers and mechanics from both companies to collaborate more effectively on building safe and quality airplanes for customers.
Spirit AeroSystems has faced financial challenges, worsened by Boeing’s decision to halt production of the 737 Max in 2020 and the impact of the Covid-19 pandemic on aircraft demand. As part of the deal, Airbus will take over unprofitable units of Spirit, while cost-saving opportunities are expected from combining the two companies. However, challenges remain in aligning supply chains and operational systems.
One key issue facing aerospace companies like Boeing and Spirit is the loss of experienced assembly line workers during the pandemic. Aerospace assembly workers require years of training to master the complex tasks involved in building airplanes, which often involve a broad range of work and tools. The antiquated nature of the 737 Max also presents challenges in transitioning to more automated assembly processes.
Boeing is also dealing with its own set of problems, including the search for a new CEO, potential fraud charges from the Department of Justice, and labor disputes with the union representing its assembly workers. The company’s board is under pressure to address these issues, and industry observers suggest that a focus on manufacturing expertise in leadership could help Boeing overcome its current challenges and improve its operations.
