07 January 2009

Commodity Prices Collapse - Impact on Boeing?

One of Boeing's largest suppliers is Alcoa. Yesterday they announced a massive cut back on their capacity and a big reduction is resources, exploration and plants with cutbacks also in Staff.

This could have a big impact on Boeing that is still struggling with fasteners made of Aluminium. The last cut back in the Aluminium market resulted in the failure of the supply chain to Boeing for the 787 program. So a cut back now could have a major impact.

Let's hope not.

Cheers

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