A halt to Boeing 737 output would stress supply chain—chiefly Spirit and Aerostructures makers
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If it’s more than a one-month production pause, “Boeing and Spirit would need to be prepared to intervene to make sure small, vulnerable suppliers are there on the other side of this,” he says. Boeing had been planning to ramp up 737 production this year from 52 planes a month to 57. Instead, in April it reduced output to 42 a month, but it had Spirit continue to build 52 fuselages a month in what may have been a concession to its sensitive condition.
The layoffs that would accompany a production halt would be a key complicating factor, especially given the tight labor market in the U.S., he says.
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