Aerospace Industry Feels the Pinch as Boeing Strike Enters Third Week
As the standoff between Boeing and its machinists enters its third week, the ripple effects are being felt across the aerospace industry. Suppliers are scrambling to stay afloat, and the impact is being felt from the factory floor to the classroom.
Pathfinder Manufacturing, a key supplier located near Boeing’s massive Everett jet factory, has been forced to furlough 14 of its 54 employees. The company’s CEO, Dave Trader, is fighting to keep his business afloat while trying to retain his skilled workforce. “We’re doing everything we can to support our employees, but it’s getting tougher by the day,” he said.
The strike has also disrupted Pathfinder’s innovative program to attract and train new talent to the industry. High school students who were learning aerospace skills alongside experienced workers have been sent back to their regular classrooms, dealing a double blow to an industry already struggling to find skilled labor.
As the strike drags on, the entire supply chain is bracing for the worst. Nine suppliers contacted by Reuters reported that they have either furloughed workers or put investments on hold. The situation is further complicated by a separate strike at aerospace group Textron, highlighting the broader labor market pressures in the industry.
Boeing’s decision to freeze most parts orders has put suppliers in a precarious position. The company’s credit rating is hovering near junk status, and its defense arm is struggling to make ends meet. Experts warn that Boeing needs to balance its short-term cash flow concerns with the long-term need to preserve its supply chain and ramp up production quickly once the strike is resolved.
New Tech Industries, another supplier based in Mukilteo, Washington, is feeling the pinch. With Boeing accounting for 85% of its business, the company is struggling to stay afloat. Co-owner Carmen Evans said, “We were just getting back on our feet after the pandemic, and now we’re facing another setback.”
The uncertainty has forced New Tech to put off investments in new machinery, a move that could have long-term consequences for the industry. As the strike continues, suppliers are being forced to make tough decisions that could impact their ability to meet Boeing’s demands once production resumes.
For now, the focus is on weathering the storm and preserving the skilled workforce that will be crucial to the industry’s recovery. As Trader noted, “When the strike is over, everyone will be hiring like crazy to ramp up production. We just need to get through this tough period.”
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