If a US dockworkers’ strike continues for more than a few weeks Airbus could start experiencing shortages of structural components used to assemble A320neo-family jets in Mobile, Alabama, possibly disrupting production.
That is according to aerospace analysts, who say the impact of the strike – the latest of several major walkouts sweeping the USA – will likely not be felt immediately by Airbus.
But should the strike prove lengthy, Airbus could find itself short of major A320neo structures in the USA. The company and its suppliers manufacturer those structures in Europe, then ship them via ocean freight to the Port of Mobile.
“If it is a long strike, there could be some shortages at the Mobile production facility,” says aerospace analyst Alex Krutz with Patriot Industrial Partners. “It’s a very real possibility that certain components or structures are not available”.
“If it’s a short strike, most likely there’s enough inventory on hand and within the region to be able to support production,” he adds.
Members of the International Longshoremen’s Association walked off the job on 1 October, disrupting shipping at major ports from Maine to Texas, including the Port of Mobile. US West Coast ports are unaffected.
The dockworkers’ union is seeking raises – of up to 77% over six years, according to reports – from the United States Maritime Alliance, which represents marine terminal operators, port associations and ship operators.
Airbus declines to comment about the potential impact, saying only, “We are aware of the situation and have taken actions to mitigate the potential impact on our operations in Mobile”.
Kevin Michaels, managing director of aerospace consultancy AeroDynamic Advisory, agrees that Airbus could face shortages – specifically of aerostructures – at its Mobile site should the port strike prove enduring.
A320neo components shipped by Airbus from Europe to Mobile include fuselage sections, wings, pylons, vertical stabilisers and horizontal stabilisers, the manufacturer has said.
“Generally, they still have a European-based supply chain, and shipments are sea shipments,” Krutz says. He adds that Airbus might seek to ship some components by air as an alternative.
Airbus also assembles A220s in Mobile, though that operation relies largely on components shipped by ground.
Analysts say Boeing’s 787 assembly in North Charleston, South Carolina could possibly also be affected by an extended longshoremen’s strike, but probably to a far lesser degree than felt by Airbus.
That is because Boeing’s 787 production rate has recently been depressed at only five jets monthly. The 787 programme does rely on some European suppliers – including Leonardo, which makes centre fuselage sections. But those fuselage sections are shipped from Italy to Boeing using modified 747 “Dreamlifters.”
Boeing declines to comment.
But the US company’s Pacific Northwest operation is hobbled by a strike of its own. On 13 September, machinists there walked off the job, forcing Boeing to halt 737 assembly in Renton and 767 and 777 assembly in Everett. That strike remains ongoing.
Textron Aviation’s operation has also been upset since 23 September, when its machinists went on strike.
