Labor Trouble at Spirit AeroSystems Threatens 737 MAX Forecast

(Reuters) – Spirit Aerosystems said on Monday it had held “constructive and positive meetings” with the U.S. machinists union through the weekend, indicating progress in negotiations for a new contract.


Spirit, a crucial supplier for aerospace heavyweights Boeing and Airbus, expects its Wichita production operations to remain suspended until an agreement is reached with the International Association of Machinists and Aerospace Workers.

This plant supplies fuselages to Boeing’s 737 MAX program, and the last thing Boeing needs at the moment is another disruption to its supply chain.  The machinists union knows this, and is taking advantage of the situation by demanding generous new contract terms.  That’s expected because that’s how bargaining works.   However, if the strike lasts longer than a week or two, our near-term forecast for the 737 MAX will need adjustment downward.

About Doug Royce

A lifelong aviation enthusiast, Douglas Royce is currently co-editor of four of Forecast International's Market Intelligence Services: Civil Aircraft Forecast, Military Aircraft Forecast, Rotorcraft Forecast, and Aviation Gas Turbine Forecast. As such, he plays a key role in many important projects that involve market sizing and forecasting for various segments of the world aerospace industry, as well as demand for related systems.

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