PPRuNe Forums - View Single Post - Boeing Moving HQ to Washington D.C.
View Single Post
Old 6th May 2022, 08:46
  #13 (permalink)  
A0283
 
Join Date: Dec 2014
Location: Schiphol
Posts: 475
Likes: 0
Received 0 Likes on 0 Posts
Re some of the posts above ...

On April 27th 2022 the Boeing stock dropped 15 dollars, and 40 million shares moved ownership (normal day 6-12 million shares traded)... just after the most recent Boeing financial report came out... reason for that appears to be mainly a billions of dollar size loss in the Defense segment. And it is clear that Boeing and US DoD are not happy co-campers the last few years. On the financial side the 787 program was said to be never to be able to make a profit, and after that came corona/covid. Which means they have a lot to do. Losing your safety culture means it will take at least 10 years to get that back, at least if you acknowledge that and go to work on that full power (which till now seems not to be the case).

From a program and technical point of view moving far away from engineering and manufacturing is never a good idea (and this especially so in aerospace) and should be noted as a fundamental strategic weakness of an organization. The complexity of aerospace and the tight system integration requires as much close contact as possible.
Having been involved in putting people closer together in both aerospace and defense over the years, it was interesting to find that I could use scientific research on the subject.

So if you move your HQ to another location you MUST either sell much more, or make (margin) or find (funding) much more money to compensate for that weakness. But even then, you will find fundamental weaknesses in both the product and the global supply chain that are hard or even impossible to get out. Even if you exactly know where and what the issue is.

Last edited by A0283; 6th May 2022 at 09:03.
A0283 is offline