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Boeing admitted that its production cannot keep
up with aircraft sales.
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However, the aircraft manufacturer aims to
restore jet production to the pre-crisis levels
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it achieved before deadly crashes in 2018 and
2019 and last year’s mid-flight door plug
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detachment.
To accomplish this, the Wall Street Journal
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reported that Boeing wants to empty the
aircraft stored in its shadow factories.
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The company defines the shadow factory as a
production line where mechanics and engineers
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fix, maintain, and update planes rather than
build new ones.
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Boeing uses shadow factories in Moses Lake.
Everett, Washington to work on its 737 Maxes
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and 787 Dreamliners respectively.
A year ago,
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the company estimated that it housed
approximately 225 jets and shadow factories.
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It claims that number dropped to 115 by 2025.
The maxes are reportedly mostly from the global
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grounding that followed the crashes.
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The 787s are awaiting checks to confirm that
the aircraft parts receive proper assembly
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after concerns regarding the production process.
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According to the Wall Street Journal, the
shadow factories often demand Boeing’s most
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seasoned workers.
Additionally, reworks and inspections can
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sometimes take longer than initial production.
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This desire to clear out the shadow factories
comes after Boeing posted a 14% decline in full
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year revenue from 2023.
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The company also stated that its total backlog
increased to $521 billion including more than
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5500 commercial aircraft attributed to slow
production and a nearly two-month machinist
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strike.
The Wall Street Journal reported that CEO Kelly
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Ortberg hopes to reach a monthly production
rate of 38737 maxes and shut down the shadow
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facilities by mid-year.
Early analysts estimates indicate that the
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company made 20 of the aircraft in January.
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As for its customers, Southwest Airlines CEO
Bob Jordan reportedly acknowledged progress at
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Boeing, but noted that his company does not
expect to receive the amount of jets originally
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promised for 2025.
I’m Nolan Bastein.
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This is manufacturing now.