WASHINGTON – After more than 18 months since the COVID pandemic began to unsettle supply chains globally, the defense industry is still wrestling with fallout, and figuring out how to move forward. Major deliveries of steel/aluminum needed to build the military ships, aircraft landing gear brakes, and small semiconductors, supply chain delays have upended defense contractor plans. The defense industry is making clear of those challenges. DoD is taking notice, and what it means for their logistics. Supply chain woes were a theme of recent contractors’ quarterly earnings calls. These issues have dealt a blow to the aerospace/defense industry. According to the Aerospace Industries Association, in2020, the industry lost more than 87,000 jobs. Shipbuilders have been strained to keep the supplies flowing. Thomas Shiehl, CFO of Huntington Ingalls Industries (HII), said in a Nov. 5 earnings call that copper cabling was one example of a material putting pressure on suppliers. “We’re a little light on material” at its Mississippi shipyard in Pascagoula, he said. “When we’re talking about shipbuilding, the material lag-behind [cost is] roughly about $40M in the quarter. “No company is immune,” said Chris Kubasik, CEO of L3 Harris Technologies, "to global supply chain pressures.” He expects supply chain issues to continue well into 2022 with recovery beginning in the latter half of the year. (Source: Defense News 11/23/21) ‘No company is immune’: Supply chain woes weigh on defense firms (defensenews.com)
No comments:
Post a Comment