Rolls-Royce boss warns of prolonged supply chain strains
The supply chain strains hampering the aerospace industry could persist for another two years, the head of Rolls-Royce has warned, in one of the bleakest assessments yet of the challenges facing manufacturers. Tufan Erginbilgic, CE of the UK engineer whose engines power some of the world’s largest aircraft including the Airbus A350, said the industry was in the throes of “one of the worst supply chain environments it has ever experienced”. Companies were dealing with a range of issues, from shortages of skilled labour to parts. The supply crunch could last for another 18 to 24 months, he said at the Farnborough air show. The industry had been among the hardest hit by the Covid pandemic only to bounce back sharply amid resurgent demand from airlines for new aircraft. Manufacturers and their suppliers, said Erginbilgic, were also “recovering to a moving target because the industry is still growing”. Despite the supply chain problems, he said demand for air travel remained strong. The company is investing more than £1bn over the coming years to improve the durability and performance of its Trent family of engines which power widebody aircraft. It is also working on a smaller version of its UltraFan engine demonstrator to explore technology for the narrow-body jet market. Erginbilgic’s comments on the supply chain echo those of other industry executives at the air show, even as Airbus and Boeing notched up more orders from airlines. Airbus announced orders from Japan Airlines and Virgin Atlantic on Tuesday, while Boeing sealed a deal with Qatar Airways. GE Aerospace on Tuesday raised its profit outlook for the full year but warned that shortages of materials had hit shipments of its engines. The company said deliveries of its Leap engines, which power Airbus and Boeing narrow-body jets, were down 29% in the second quarter to the end of June from the same period a year ago. Campbell Wilson, CE of Air India, which placed one of the biggest aviation orders globally last year from both Boeing and Airbus, said “we are talking a good couple of years” before the supply chain challenges are under control.<br/>
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Rolls-Royce boss warns of prolonged supply chain strains
The supply chain strains hampering the aerospace industry could persist for another two years, the head of Rolls-Royce has warned, in one of the bleakest assessments yet of the challenges facing manufacturers. Tufan Erginbilgic, CE of the UK engineer whose engines power some of the world’s largest aircraft including the Airbus A350, said the industry was in the throes of “one of the worst supply chain environments it has ever experienced”. Companies were dealing with a range of issues, from shortages of skilled labour to parts. The supply crunch could last for another 18 to 24 months, he said at the Farnborough air show. The industry had been among the hardest hit by the Covid pandemic only to bounce back sharply amid resurgent demand from airlines for new aircraft. Manufacturers and their suppliers, said Erginbilgic, were also “recovering to a moving target because the industry is still growing”. Despite the supply chain problems, he said demand for air travel remained strong. The company is investing more than £1bn over the coming years to improve the durability and performance of its Trent family of engines which power widebody aircraft. It is also working on a smaller version of its UltraFan engine demonstrator to explore technology for the narrow-body jet market. Erginbilgic’s comments on the supply chain echo those of other industry executives at the air show, even as Airbus and Boeing notched up more orders from airlines. Airbus announced orders from Japan Airlines and Virgin Atlantic on Tuesday, while Boeing sealed a deal with Qatar Airways. GE Aerospace on Tuesday raised its profit outlook for the full year but warned that shortages of materials had hit shipments of its engines. The company said deliveries of its Leap engines, which power Airbus and Boeing narrow-body jets, were down 29% in the second quarter to the end of June from the same period a year ago. Campbell Wilson, CE of Air India, which placed one of the biggest aviation orders globally last year from both Boeing and Airbus, said “we are talking a good couple of years” before the supply chain challenges are under control.<br/>
