Boeing admitted that its production cannot keep up with its aircraft sales. However, the aircraft manufacturer aims to restore jet production to the pre-crisis levels it achieved before deadly crashes in 2018 and 2019 and last year’s midflight door plug detachment.
To accomplish this, the Wall Street Journal reported that Boeing wants to empty the aircraft stored in its shadow factories. The company defines a shadow factory as a production line where mechanics and engineers fix, maintain, and update planes rather than build new ones.
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Boeing uses shadow factories in Moses Lake and Everett, Washington, to work on its 737 MAXs and 787 Dreamliners, respectively. A year ago, the company estimated that it housed approximately 225 jets in shadow factories. It claims that number dropped to 115 by 2025.
The MAXs are reportedly mostly from the global grounding that followed the crashes. The 787s are awaiting checks to confirm that the aircraft parts receive proper assembly after concerns regarding the production process.
According to the Wall Street Journal, the shadow factories often demand Boeing’s most seasoned workers. Additionally, reworks and inspections can sometimes take longer than the initial production.
This desire to clear out the shadow factories comes after Boeing posted a 14% decline in full-year revenue from 2023. The company also stated that its total backlog increased to $521 billion, including more than 5,500 commercial aircraft, attributed to slowed production and a nearly two-month machinist strike.
The Wall Street Journal reported that CEO Kelly Ortberg hopes to reach a monthly production rate of 38 737 MAXs and shut down the shadow facilities by midyear. Early analyst estimates indicate that the company made 20 of the aircraft in January.
As for its customers, Southwest Airlines CEO Bob Jordan reportedly acknowledged progress at Boeing but noted that his company does not expect to receive the amount of jets originally promised for 2025.
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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
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Boeing admitted that its production cannot keep
up with aircraft sales.
00:03.359 --> 00:07.880
However, the aircraft manufacturer aims to
restore jet production to the pre-crisis levels
00:07.880 --> 00:12.779
it achieved before deadly crashes in 2018 and
2019 and last year's mid-flight door plug
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detachment.
To accomplish this, the Wall Street Journal
00:15.550 --> 00:18.989
reported that Boeing wants to empty the
aircraft stored in its shadow factories.
00:19.120 --> 00:22.799
The company defines the shadow factory as a
production line where mechanics and engineers
00:22.799 --> 00:25.840
fix, maintain, and update planes rather than
build new ones.
00:25.959 --> 00:31.315
Boeing uses shadow factories in Moses Lake.
Everett, Washington to work on its 737 Maxes
00:31.315 --> 00:34.044
and 787 Dreamliners respectively.
A year ago,
00:34.084 --> 00:38.514
the company estimated that it housed
approximately 225 jets and shadow factories.
00:38.924 --> 00:44.055
It claims that number dropped to 115 by 2025.
The maxes are reportedly mostly from the global
00:44.055 --> 00:45.555
grounding that followed the crashes.
00:45.845 --> 00:50.165
The 787s are awaiting checks to confirm that
the aircraft parts receive proper assembly
00:50.165 --> 00:52.194
after concerns regarding the production process.
00:52.444 --> 00:55.645
According to the Wall Street Journal, the
shadow factories often demand Boeing's most
00:55.645 --> 00:58.880
seasoned workers.
Additionally, reworks and inspections can
00:58.880 --> 01:00.799
sometimes take longer than initial production.
01:01.000 --> 01:05.639
This desire to clear out the shadow factories
comes after Boeing posted a 14% decline in full
01:05.639 --> 01:07.349
year revenue from 2023.
01:07.720 --> 01:13.089
The company also stated that its total backlog
increased to $521 billion including more than
01:13.089 --> 01:18.120
5500 commercial aircraft attributed to slow
production and a nearly two-month machinist
01:18.120 --> 01:20.879
strike.
The Wall Street Journal reported that CEO Kelly
01:20.879 --> 01:25.970
Ortberg hopes to reach a monthly production
rate of 38737 maxes and shut down the shadow
01:25.970 --> 01:29.209
facilities by mid-year.
Early analysts estimates indicate that the
01:29.209 --> 01:31.279
company made 20 of the aircraft in January.
01:31.650 --> 01:36.099
As for its customers, Southwest Airlines CEO
Bob Jordan reportedly acknowledged progress at
01:36.099 --> 01:39.970
Boeing, but noted that his company does not
expect to receive the amount of jets originally
01:39.970 --> 01:42.489
promised for 2025.
I'm Nolan Bastein.
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This is manufacturing now.
