Max Suppliers Largely Mum on Effects of Production Pause | Aviation International News

Max Suppliers Largely Mum on Effects of Production Pause

Smaller companies stand to feel the most serious consequences of Boeing’s narrowbody line closure.

A Ryanair Boeing 737 Max 8 sits parked in Renton, Washington, in October 2019. (Photo: Barry Ambrose)

By Gregory Polek • Senior Editor

December 20, 2019

While next month’s planned suspension of the 737 Max production line will certainly preserve cash for Boeing, it will also send ripples through a supplier network populated with companies ranging from subassembly makers to fastener manufacturers. Although few have said with any certainty how they expect the shutdown to influence their operations and bottom lines, undoubtedly all will feel some effect. To what extent will depend on what proportion of a given company’s revenue comes from its Max business and how much cashflow loss it can afford to absorb. Therefore, it stands to reason smaller companies in the supply chain will feel the most profound effects, leaving their workforces the most vulnerable to layoffs.

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