Jason Sandefur

The machinists’ strike at Boeing is putting a “tremendous strain” on aerospace fastener manufacturers by prompting OEMs to cut supply orders, stated Wesco Aircraft Hardware Corp. vice president Hal Weinstein.
OEMs are forecasting double-digit revenue declines up to 12% – for 2009, MarketWatch reports.
The strike has halted production of the 787 Dreamliner and other Boeing aircraft.
Analysts also worry that the global credit crisis could result in less air traffic.
Weinstein’s remarks reinforced what Patrick Meade of the Industrial Fastener Institute’s aerospace fastener division told FIN in September.
“I think this strike will be a hardship to some manufacturers,” Meade told FIN. “There will likely be a reduction in shipments for a while.”
Boeing’s 27,000 machinists voted to strike over job security, medical coverage, wages and pension benefits. Experts estimate the strike could cost Boeing as much as $120 million per day.
In recent weeks Precision Castparts CEO Mark Donegan asserted that aerospace demand remains strong for now.
“The Boeing strike – to date, we haven’t seen any immediate impact, but the longer it would carry on, we’ll have to see what it will be,” Donegan stated. “The demand, again, is still there, but we’ll have to respond accordingly to what the ramp-up rates and the length and duration of it are.”
At the same time Donegan expressed concern for the ongoing state of Boeing’s Dreamliner program, which has faced costly delays over aerospace fastener shortages, among other reasons.
“I just need to get kind of the 787 up and moving and kind of moving along.”
Material shortages for fasteners forced Boeing to announce a second delivery delay in 2007 for its 787 Dreamliner.
Boeing announced an initial six-month delay and promptly replaced the head of its 787 program and deploying engineers into the field to help suppliers boost production. �2008 FastenerNews.com