{"id":6800,"date":"2023-06-19T12:24:47","date_gmt":"2023-06-19T12:24:47","guid":{"rendered":"https:\/\/aviation-news.info\/?p=6800"},"modified":"2023-06-19T12:24:47","modified_gmt":"2023-06-19T12:24:47","slug":"analysis-behind-aviation-recovery-suppliers-struggle-to-keep-up","status":"publish","type":"post","link":"https:\/\/aviation-news.info\/?p=6800","title":{"rendered":"Analysis: Behind aviation recovery, suppliers struggle to keep up"},"content":{"rendered":"<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-0\">PARIS June 19 (Reuters) &#8211; For dealmakers, this week\u2019s Paris Air Show will showcase the boom in demand for commercial planes and military technology.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-1\">What won\u2019t be on display is the problem that has consumed time and attention of executives and consultants for the past two years: the long and still uncertain lead times in delivering the parts for all the planes and weapon systems being sold.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-2\">Airbus Chief Executive Guillaume Faury\u00a0<a class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" href=\"https:\/\/www.reuters.com\/business\/aerospace-defense\/airbus-sales-chief-signed-a350-order-with-major-airline-adds-that-business-is-2023-06-16\/\" data-testid=\"Link\">said<\/a>\u00a0things have begun to stabilise. Other senior executives see a glimmer of hope.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-3\">But there is an emerging consensus that the industry\u2019s sprawling supply chain &#8211; strained by rising costs, parts shortages and a scarcity of skilled labor in the wake of the pandemic &#8211; will have to be remade before it can recover fully, a process that will take years.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-4\">&#8220;I can&#8217;t stress enough the tsunami that it (the pandemic) created in our supply chain. The good news is traffic is back,&#8221; the CEO of engine maker CFM International Gael Meheust told reporters ahead of the show.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-5\">Smaller suppliers that took on debt during the pandemic and are now struggling to fund new capacity remain a chief concern.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-6\">&#8220;The issue now is deep down in the supply chain, tier-three suppliers and lower, where the investment and headcount required for the demand picture makes them very nervous and makes their lenders very nervous,&#8221; said Andy Cronin, CEO of lessor Avolon.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-7\">Much of the response involves putting out fires one by one and discussing priority lists that can change month by month.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-8\">&#8220;There are a lot of smaller and medium sized companies for whom COVID was a real challenge,&#8221; added Mike Madsen, CEO of supplier Honeywell Aerospace\u00a0<a class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" href=\"https:\/\/www.reuters.com\/companies\/HON.O\/\" target=\"_blank\" rel=\"noopener\" data-testid=\"Link\">(HON.O)<\/a>. &#8220;Helping them get back to, and now above, 2019 production levels is where all the focus is.&#8221;<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-9\">Labor shortages are hurting the whole ecosystem from new assembly to repair shops as demand rebounds for travel and planes.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-10\">&#8220;Every day we get a call from somebody in aerospace asking for help in fixing their supply chain,&#8221; said Eric Bernardini, a managing director at U.S. consultancy AlixPartners.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-11\">Among the items recently flagged as a concern are weather radar and emergency locator transmitters (ELT) for both Airbus\u00a0<a class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" href=\"https:\/\/www.reuters.com\/companies\/AIR.PA\/\" target=\"_blank\" rel=\"noopener\" data-testid=\"Link\">(AIR.PA)<\/a>\u00a0and Boeing\u00a0<a class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" href=\"https:\/\/www.reuters.com\/companies\/BA.N\/\" target=\"_blank\" rel=\"noopener\" data-testid=\"Link\">(BA.N)<\/a>\u00a0narrowbody jets, two industry sources with direct knowledge of the matter said.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-12\">A spokesperson for manufacturer Honeywell said &#8220;we are not aware of any delayed aircraft deliveries related to either of these product lines&#8221;.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-13\">Airbus and Boeing declined specific comment. Airbus said it was monitoring supplies closely. Boeing said it was working with suppliers to address industry-wide challenges.<\/p>\n<h2 class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- article-body__heading__33EIm\" data-testid=\"Heading\">REMAKING THE CHAIN<\/h2>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-14\">Speaking separately, Madsen said Honeywell saw an overall improvement in the &#8220;electrical part of the supply base,&#8221; as less demand for consumer products frees up more capacity.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-15\">Large suppliers are looking at bringing some work in-house.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-16\">&#8220;We&#8217;re looking at it more broadly than we ever have in probably the last 20 years,&#8221; Madsen said.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-17\">Consolidation could also play a role. When Connecticut-based Whitcraft Group and Paradigm Precision merged to form Pursuit Aerospace in February, they only made a single part in common.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-18\">Whitcraft had no facilities to make castings but was able to shift work to a Paradigm casting facility in Tunisia. Paradigm, in turn, was able to shift forging work to Whitcraft.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-19\">&#8220;We&#8217;re able to move some of the buy we had with outside parties into ourselves,&#8221; said Pursuit Aerospace CEO Doug Folsom.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-20\">Airbus&#8217; Faury, who also heads France\u2019s Gifas aerospace industry association, said there had been almost 80 M&amp;A moves in France alone since 2020 to support the very smallest companies.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-21\">M1 Composites Technology, which manufactures and repairs parts like radar enclosures, more than doubled the size of its Montreal-based factory during the pandemic but still struggles with parts procurement.<\/p>\n<p class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" data-testid=\"paragraph-22\">&#8220;The supply chain can&#8217;t just get back to 2019, it has to be better than 2019,\u201d M1 president Lorenzo Marandola said.<\/p>\n<div class=\"article-body__element__2p5pI\"><span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__default__UPMUu sign-off__text__PU3Aj\" data-testid=\"Text\">Reporting By Allison Lampert in Montreal, Valerie Insinna in Washington and Tim Hepher in Paris Editing by Mark Potter<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>PARIS June 19 (Reuters) &#8211; For dealmakers, this week\u2019s Paris Air Show will showcase the boom in demand for commercial planes and military technology. What won\u2019t be on display is the problem that has consumed time and attention of executives and consultants for the past two years: the long and still uncertain lead times in &hellip;<\/p>\n","protected":false},"author":1,"featured_media":6801,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[102,88],"tags":[],"class_list":["post-6800","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured-en","category-flights"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Analysis: Behind aviation recovery, suppliers struggle to keep up - aviation news<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aviation-news.info\/?p=6800\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Analysis: Behind aviation recovery, suppliers struggle to keep up\" \/>\n<meta property=\"og:description\" content=\"PARIS June 19 (Reuters) &#8211; For dealmakers, this week\u2019s Paris Air Show will showcase the boom in demand for commercial planes and military technology. 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