BUSINESS-ECONOMY
Boeing has cautiously resumed production of its 737 MAX jets following a prolonged work stoppage that lasted over a month. However, the recovery process has been hampered by supply chain delays and hesitancy from smaller suppliers to fully rehire staff. Boeing has cautiously restarted production of its best-selling 737 MAX after a lengthy work stoppage that lasted over a month. While the assembly line at the Renton factory has begun to move again, Boeing's recovery is deliberate and measured. The planemaker has not completed any new jets yet, as workers inspect half-constructed planes for flaws missed during the strike, and safety licenses are being renewed. Boeing has set a target of producing 15 to 20 MAX jets in December, However, some suppliers are hesitant to ramp up production, citing uncertainty around Boeing's long-term plans. The impact of the strike and subsequent cautious approach by Boeing has created significant challenges in the supply chain. Smaller suppliers, who reduced staff and hours during the strike, are reluctant to rehire workers, unsure of Boeing's production needs. While Boeing's cautious restart has earned praise from regulators, there are still significant production delays. Parts that used to take a day to process now take up to a week. The company is aiming to reach its target of 38 jets per month by year-end, However, achieving this goal remains uncertain. Boeing’s struggles to recover from the strike are not just about restarting the production lines but also about rebuilding trust with its suppliers. Many smaller companies in Boeing's supply chain are holding back on new investments, fearing another shift in Boeing’s production rates. Despite these challenges, Boeing is working closely with suppliers to stabilize its 737 MAX output. However, experts predict that it will take longer to reach pre-strike production levels compared to past disruptions. (With inputs from the agencies) A journalist, writing for the WION Business desk. Bringing you insightful business news with a touch of creativity and simplicity. Find me on Instagram as Zihvee, tr None
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