Aviation Week Identifies Aerospace Supply Chain Risks Exposed by Japan Earthquake

NEW YORK, March 18, 2011 /PRNewswire/ -- Aerospace parts manufactured in Japan could affect Boeing's production schedule, Aviation Week said today in an article on AviationWeek.com and the March 21 issue of Aviation Week & Space Technology. "Thirty-five percent of the 787 and 20 percent of the 777 are from Japan. Boeing says it has enough inventory to cope with any short-term disruptions, but if delays last longer than several weeks, it will have problems."

The aerospace industry's global supply chain, while offering low-cost production benefits, has its risks. The widespread practice of "just-in-time manufacturing" means that critical engine or aircraft parts may be rendered unavailable by a natural disaster, thus making companies vulnerable to disruptions or production delays. In the future, companies may consider dual-sourcing parts to safeguard against uncertainty.

Aviation Week has been closely covering the aerospace and defense implications of the earthquake and tsunami in Japan. In addition to today's article, "Earthquake Exposes Risk to Supply Chain," articles and blog posts from the past week offer significant insights into this disaster:

• Tsunami Damages Squadron Of Mitsubishi F-2s
• Sendai Runway Partly Open For Relief Flights
• Jamco Looks To Rebuild Sendai MRO Damaged By Tsunami (AWIN subscribers only)

About Aviation Week:

Aviation Week, part of The McGraw-Hill Companies, is the largest multimedia information and services provider to the global aviation, aerospace and defense industries, and includes http://AviationWeek.com, Aviation Week & Space Technology, Defense Technology International, Business & Commercial Aviation, Overhaul & Maintenance, ShowNews, Aviation Daily, Aerospace Daily & Defense Report, The Weekly of Business Aviation, Aviation Week Intelligence Network, MRO Links and MRO Prospector. The group also produces major events around the world.

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Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the knowledge economy. Leading brands include Standard & Poor's, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at www.mcgraw-hill.com.

SOURCE Aviation Week