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Boeing's 737 Production Cut Echoes Throughout Aerospace Industry

April 08, 2019 / IndustryWeek

Boeing Co.’s plan to cut its 737 jetliner production by 19% this year is expected to have negative spillover effects across the aerospace industry, from parts suppliers to engine makers and even airlines. The planemaker on Friday said it would cut output to 42 airplanes a month by mid-April, as the company fights global criticism about the safety of its 737 Max jets after two tragic crashes that ultimately led to a grounding of the aircraft.
The move to cut production to 42/month is surprising and will most certainly have an impact on the supply chain, considering many suppliers had been prepping for the rate to climb to 57/month in June 2019, SunTrust Robinson Humphrey analyst Michael Ciarmoli wrote in a note to clients.