See Boeing’s Latest Trouble Is a Jet Part Caught Up in Russia Sanctions: Plane maker can’t deliver enough 787 Dreamliners after sanctions disrupted production of heat exchangers by Sharon Terlep of The WSJ.
The print version's title was "Boeing Wrestles With Shortage of Key Part." The article also mentions that there is a shortage of cabin seating and material shortages for materials used to make cabin seating.
The article does not mention anything about the price being below equilibrium. That makes quantity demanded greater than quantity supplied and that means a shortage. That might be the case here but the article says nothing about the price of this part.
It is possible that the suppliers have kept their price the same even though demand increased and/or supply decreased. But again, there is no discussion of this or if the suppliers are reluctant to raise the price. Just saying that a quantity is lower than it used to be or that a buyer wishes there was more available does not necessarily mean that there is a shortage.
Excerpts:
"Boeing has more parts trouble, but this time it doesn’t stem from manufacturing snafus or the 737 jet. The blame goes to Russia sanctions still rippling through the jet maker’s supply chain.
In the opening days of Russia’s invasion of Ukraine, a maker of a temperature-regulating part for Boeing’s 787 Dreamliner ceased its Russian operations and shifted production west. At the time, Boeing was building so few of the jets that the supplier, RTX, was able to keep up with demand.
But now the jet maker is trying to increase production of the wide-bodies, and RTX’s new factory lines in the U.S. and U.K. aren’t making enough.
“When the invasion happened, it got moved, and the capacity of that supplier has not kept pace with us,” Boeing Chief Executive Dave Calhoun said this past month.
In a demonstration of how relatively simple glitches can reverberate through a global supply chain, Boeing’s inability to secure enough heat exchangers, a critical but relatively basic part akin to a radiator, in part led it to warn investors that it won’t deliver as many of the Dreamliner jets as anticipated this year."
Related posts on supply and demand and shortages:
Drug Shortages in America Reach a Record High (2024)
Is There A Booze Shortage? (2022)
Car makers face ‘chipageddon’ (2021)
Does the U.S. have a firefighter shortage (2021)
There is no truck driver shortage in the US (2021)
Is there a shortage of homes? (2020)
Is there really a shortage of construction workers (2019)
Was there really a shortage of meatless burgers? (2019)
Is There A Christmas Tree Shortage? (2017)
No comments:
Post a Comment