Supply chain issues continue to plague aerospace

CEO of leading firm cites materials supply and demand imbalances

By Dave Hannon -- Purchasing, 6/21/2007 2:08:00 PM

The CEO of the one of the biggest contract manufacturers in the aerospace industry says the demand for raw materials and fasteners in the aerospace industry is clearly outpacing the existing supply.

            "My most immediate concern is getting the supply chain flowing through for the industry," Jeff Turner, CEO of Spirit AeroSystems told the DowJones wire service this week at the Paris Air Show. Turner went on to say that “tight supply of raw materials and fasteners that impacts our suppliers and our production line. The demand curve is increasing. The supply curve isn't quite catching up to it."

            Spirit is a supplier to both Boeing and Airbus, each of which has had its share of supply chain issues recently. The AP reports that earlier this year, Boeing had to dispatch 100 engineers into the field to liaise with suppliers in danger of missing their deadlines due to materials shortages. What were they missing? Fasteners, nuts and bolts and other materials that hold the aircraft together.

            Airbus has had its own share of supply chain issues in the past year as well and in March named a new procurement chief.