Ever feel like your inventory has been out of control over the past few years? You’re not alone.
The industry has bulked up on production capacity, supplies, and labor as the commercial airliner backlog has flown past 16,000 jets, only to be hamstrung by supply chain and operational challenges that have bloated warehouses and balance sheets.
Warning signs have been building for years. Inventory performance had been deteriorating even before the 737 MAX grounding and the post-pandemic breakdown of global supply chains.
Problems have visibly worsened, from “gliders” waiting for engines to rows of completed fuselages ready to enter final assembly when the parts arrive—and the challenges run deeper than those visible on the tarmac. Data shows escalating levels across raw materials, work-in-process, and finished goods alike.