Boeing Gets Bogged Down By The Little Things

Fastener shortage may hurt production schedule for 787:

One of the smallest and cheapest parts on The Boeing Co.'s 787 Dreamliner could become its Achilles' heel as the company considers production rates to meet growing demand.

The potential problem is a critical shortage of fasteners, which are used to hold airplane structures together. Tens of thousands are needed for each plane.

...

The fastener shortage  is complex and is more than a matter of supply versus demand.

Most of the fasteners that Boeing uses for its jetliners are produced by Alcoa in Southern California. In recent years, the fastener industry has consolidated, which means there are fewer makers of fasteners.

Also, those companies that do make fasteners cut production after the industry went into its worst downturn ever after the Sept. 11 terrorist attacks.

But the industry is strong again, and Boeing and Airbus are boosting production rates to record levels to meet demand. Boeing is increasing rates not only of its popular 737, but also of its widebody 747, 767 and 777 jets, which are assembled in Everett.

At there's one problem that we can't blame on ethanol.  Speaking of which, there's a good article in the Times today about oil companies that are hesitant to build new refineries, in light of ethanol subsidies, and Bush's goal of reducing US gas use by 20% over the next 10 years.  The oil companies have been accused of not building out refining capacity so as to artificially keep gas prices high (a dubious charge), and they've been attacked (more broadly) for doling their cash out to shareholders, rather than reinvesting it.  But I think they have a legitimate point here.  If the US is really going to reduce its gas use by 20%, then it would be absurd for them to be investing, right now, in refining capacity, investments that would take years to recoup.

Comments

[Andrew Schmitt]

.... or telco companies who won't invest in access infrastructure if they have to give the assets away to others. (Which in the US isn't the case). Ahem... Mike @ Techdirt