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Boeing Purchase Shows Vulnerability of Outsourcing

SEATTLE --- The announcement to purchase a major supplier of the 787 Dreamliner emphasizes the risks involved in The Boeing Company’s decision to outsource complex and cutting edge technology, according to the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001.

“Boeing thought the global supply chain would help spread cost and risk, but instead it made them more vulnerable,” said Ray Goforth, executive director of SPEEA. “They needed to buy Global Aeronautica because it’s too important to fail, just like their decision to buy Vought.”

Boeing announced this morning (Tuesday, Dec. 22) it is taking full control of Global Aeronautica, the midfuselage plant in North Charleston, S.C., by buying out its Italian supplier Alenia. In July, Boeing took over the Vought facility at North Charleston.

“Rather than saving money, Boeing’s become the re-insurer of its supply chain and has in fact had to buy outright or loan money to different suppliers to keep its outsourcing model from failing,” Goforth said.

A local of the International Federation of Professional and Technical Engineers (IFPTE), SPEEA represents more than 24,400 aerospace professionals at Boeing, Spirit AeroSystems in Kansas, Triumph Composite Systems, Inc., in Spokane, Wash., and at BAE Systems, Inc., in Irving, Texas.


Boeing Purchase Shows Vulnerability of Outsourcing