Friday, July 22, 2022

Supply chain slows air industry

FARNBOROUGH, England - The global air industry is in the midst of a post-pandemic rebound, but supply chain problems have left suppliers and manufacturers scrambling to source raw materials and small electronic components to keep production moving. From multi-nationals to family-run businesses, few have been spared the impact of shortages or delays. As a result, this week's Farnborough Airshow has been more about the factory floor than the usual shop window for new orders. "We are keeping our head above water, keeping the flow happening, but the gymnastics required to make that happen are as difficult now as they have ever been," Stephen Timm, president of industry giant Collins Aerospace, told Reuters. At the other end of the spectrum, where suppliers lack the clout of a Collins or Honeywell, things are even more uncertain. "At the moment it's extremely challenging because of the lack of raw materials," said Paul Wingfield, business development manager at Stokenchurch, England-based Aircraft Materials, which supplies alloys including aluminum, nickel, magnesium, titanium and nickel for the industry. Not only are the mills that his firm works with having trouble finding raw materials, but distributors are wary of holding onto inventory when there is a risk of recession. "Nobody knows what the economy is going to do, so nobody's willing to invest in stock at the moment," Wingfield said. Shortages of electronics components mean some will not be delivered for over a year. "We're getting terrible, terrible lead times on some parts," Lawrence said. Supply chain problems come at a time when the industry is eager to build ever more planes. Airbus (AIR.PA) wants to raise A320 production rates (at its Mobile, Ala., facility) to 75 single-aisle aircraft monthly over the next three years, from 50 now. But delays in engine supplies have held back aircraft deliveries. (Source: Reuters 07/21/22) Analysis: Supply chain snags threaten to slow air industry take-off | Reuters

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