Boeing Starts C-17 Production Rate Reduction
By Guy Norris
Los Angeles
March 4, 2010
Boeing hopes to minimize the impact of job cuts on the C-17 line following its decision to slow the airlifter production rate by a third, but acknowledges that some losses are inevitable.
Production is being pared back in a bid to extend the program life beyond 2012 and to buy time for new domestic and international orders to materialize . The rate is already in the process of being reduced —13 aircraft are now due for delivery in 2011, compared to 15 in 2009. The line will stabilize at the slower rate in mid-2011 and, without any additional orders , continuous production will be assured to September 2012.
The 10-per-year rate, enough to sustain a two-shift system, was chosen over other options—including a one-aircraft-per-month rate—following recent extensive studies . “We’ve been looking at a lot of things over recent months and [rate reduction] is a result ,” states Boeing.
Although workforce numbers will be reduced, the final tally of job losses will not be determined until later this year. The manufacturer currently employs 5,000 at its Long Beach, Calif., site. An additional 1,250 jobs are directly related to C-17 production work at Boeing sites in St. Louis, Macon, Ga., and Mesa, Ariz. The impact will also be felt throughout the supply chain, which Boeing says supports a further 25,000 jobs at companies scattered across 44 states. “We don’t have the answers on that yet, though we’re hoping to minimize the impact as much as possible,” Boeing adds.
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