Aviation Week Identifies Aerospace Supply Chain Risks Exposed by Japan Earthquake

Parts and manufacturing suppliers for Boeing and others affected

Mar 18, 2011, 14:35 ET from Aviation Week

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:

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SOURCE Aviation Week