Premium 2018.6 – From FOMO to FOMD – Strains are Appearing in the Supply Chain

In recent years, we’ve seen a surge in aircraft orders, particularly for the re-engined narrow-body models from Airbus and Boeing.  Backlogs remain near all-time record highs, and the two large OEMs are each talking about producing more than 60 narrow-bodies per month, numbers that were unheard of only a few years ago.

The industry is experiencing continued growth, and the impact of 5% annual growth has the industry doubling its output about every twelve years.  In that process, during the introductions of new technology aircraft, we’ve seen a rush to obtain delivery positions that is substantially higher than in previous generations of aircraft.