Music to any bean counter's ears - "Aircraft makers struggle to fill back-orders"

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Member for

15 years 9 months

Posts: 1,684

This is music to the ears of any ‘bean counter’ – challenges where no ‘bean counter’ has been – how to deliver bulging order books, rather than announcing closures and redundancies.:D

http://www.ft.com/cms/s/0/a0a2ad62-a70f-11e0-a808-00144feabdc0.html?ftcamp=crm/email/2011718/nbe/Aerospace/product#axzz1SULrNLAe
Today’s FT “Aircraft makers struggle to fill back-orders”:cool:

“……Still, US carriers have left it late to begin re-fleeting Airbus and Boeing are ramping up production as fast as they can, aiming to produce more than 40 of their workhorse single-aisle aircraft every month by 2012 and 2014 respectively.

Bernstein Research estimates that at current rates it will take Airbus and Boeing between seven and eight years to work through their backlogs.

Industry experts expect US airlines to replace as many as 2,000 aircraft in the next few years as they retire their ageing fleets of MD-80s and Boeing 757s. That would represent several years of output at Airbus and Boeing.. ……”

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Member for

14 years

Posts: 949

It hasn't taken Boeing all that long to get the Charleston B787 production line nearly ready. I should think if they really were going to have trouble, it wouldn't be too hard to set it up. Airbus have done it in China, and I am sure Boeing would love to have a B737 line in the non-Union Charleston plant. Airbus were going to have an A330 plant in Texas(?) if they won the KC-330 contract.

Member for

15 years 9 months

Posts: 1,684

It still a big (enjoyable) challenge for their bean counters and strategists

It still a big (enjoyable) challenge for their bean counters and strategists.

Once you step outside 'home turf' for production, all the big MNE issues come flooding into the equations, namely Transfer pricing, Tax advantages and their longevity, environmental and cultural issues in foreign countries, quality standards, and primarily the perception of the business goals by 'non home turf' players as senior executives.

This ain't garments, trainers or automobiles to plan for, it is the future large Fixed (Tangible) assets of major revenue earners across the globe.:cool:

The biggest planning involved is deciding on an exit strategy (at the outset) from 'non home turf' investments - and this is being seen for real in the Customer Service (Call Centre) arena where off shoring costs of local salaries ('non home turf') is currently escalating hence many large firms are bringing business back 'home'.:rolleyes: