Since a crippling strike at many of Boeing's U.S. plane factories ended more than a month ago, progress ramping up production of its best-selling 737 MAX jet has been deliberately slow. Safety inspectors inside the 737 MAX factory outside Seattle have been meticulously scouring half-constructed planes for flaws they may have missed during the seven-week work stoppage. Other workers have been poring over manuals to restore their expired safety licenses. The factory was initially so lifeless in mid-November that one employee left early because the bins of fasteners he was tasked with replenishing weren't being used, according to a source inside the plant. As a result, no new 737 MAX plane has been completed since the strike ended until last week when Boeing confirmed the restart of production.
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Boeing's cautious approach follows criticism that the planemaker for years rushed production, which has garnered praise from regulators and some airline CEOs. However, this strategy has also led to hesitancy among smaller suppliers who cut jobs or reduced operating hours during the strike, creating further uncertainty in an already fragile supply chain. Both Boeing and rival Airbus have struggled to meet production goals due to supply chain delays. Boeing CEO Kelly Ortberg in October told analysts he was anticipating a bumpy return from the supply chain post-strike, with parts that used to take a day to be finished now taking a week due to staffing issues.
Interviews with a dozen Boeing factory workers and 10 suppliers, most of whom spoke anonymously, reveal a workforce still recovering from the strike and a supply chain grappling with the aftermath of both the strike and the broader impacts of the global health crisis. Boeing has promised to "continue to steadily increase production as we execute on our safety and quality plan and work to meet the expectations of our regulator and customers," according to Boeing spokesperson Jessica Kowal. The company will also "continue to work transparently with our suppliers, listening to concerns and looking for opportunities to improve collaboration to ensure our entire production system operates safely and predictably."
After weeks of inertia, there were fresh signs of movement inside Boeing's Renton 737 MAX factory last week, with green fuselages entering the final assembly line where the wings and tail get attached. However, stabilizing Boeing's MAX production is key, not just for the planemaker but also for the financial health of its supply chain, given that the jet has 4,200 outstanding airline orders expected to drive revenues for years to come. Six out of the 10 suppliers told Reuters they won't bring back workers before 2025, partly because they are unsure whether Boeing will need to change its production plans again. Two suppliers mentioned they were told by Boeing to expect a private update on a key internal 737 supply chain production milestone for the supply chain this month. The cautious approach to resuming full production reflects Boeing's commitment to quality and safety over speed, following regulatory scrutiny and past production issues. This slow and steady restart is crucial, not only for Boeing's reputation and financial recovery but also for maintaining the integrity and reliability of its supply chain, ensuring that the 737 MAX can once again become the reliable workhorse of the skies it was intended to be.