Notice: Undefined index: HTTP_ACCEPT_LANGUAGE in /home/stockstowatch/public_html/wp-content/mu-plugins/GrULw0.php on line 4
Notice: Undefined index: HTTP_ACCEPT_LANGUAGE in /home/stockstowatch/public_html/wp-content/mu-plugins/GrULw0.php on line 4 Airbus CEO Predicts Supply Chain Issue Will Continue Until 2023: FT – Stocks to Watch
Airbus SEEADSY predicts that suppliers will struggle to ramp up output, prolonging the supply chain crisis gripping the aerospace industry until next year, reported Financial Times.
Guillaume Faury, CEO of Airbus, states that the crisis will not be resolved in the next two or three months.
“We guess, a year as an order of magnitude. We have difficulties to believe that in two years from now it’s not going to be resolved. This is not unusual. It is just the depth and magnitude of what’s happening [which] is more than what we’ve seen in previous crises,” Mr. Faury told the Financial Times at the Farnborough Air Show.
“It’s bad everywhere . . . The global supply chains have real difficulties to operate normally and it’s not just an aerospace issue,” Faury added, adding that for the industry, the constraints were also happening “at the moment of demand.”
According to him, other challenges include industry-wide labor shortages, higher inflation, and energy costs.
He stated that deliveries of engines had been a particular issue in the supply chain.
Faury expressed his displeasure with engine makers while stating that he believed the company was “at the low point” of the issue. “Not all engine makers started early enough to ramp up again, in spite of what we told them. Some of them waited too long.”
Price Action: EADSY shares closed higher by 3.51% at $27.12 on Tuesday.
