GE Aerospace sees supply constraints persisting next year

A GE Aerospace executive said on Wednesday global supply chains will likely remain challenged even next year, despite a production slowdown at Boeing. Russel Stokes, head of GE Aerospace's commercial engines and services, said while the company is aligned with Boeing's production rates for this year, it is working with suppliers to support a ramp up in production in coming years. "I'm confident that over time things are going to get better," he said. "But...it's still a challenged environment for this year and probably next year." GE Aerospace co-produces the engine for Boeing and Airbus narrow-body jets with France's Safran through their CFM joint venture, which is the sole supplier to Boeing's 737 MAX family of jets. Boeing's jet production has slowed sharply as regulatory scrutiny has mounted since January when a door plug blew off an Alaska Airlines jetliner in mid-air. GE Aerospace has slashed estimates for LEAP jet engine production this year. The slowdown could help a stretched supply chain catch up with demand, but there is also a risk of it further worsening the situation. GE Aerospace CEO Larry Culp has attributed ongoing supply-chain challenges to the pandemic, which led to a plunge in air travel demand, forcing the aviation industry to lay off thousands of workers. Supply chain problems have left the global industry hamstrung. They have not only made it tougher to increase jet production, but have also increased the turnaround time at jet engine repair shops.<br/>