Boeing's space and defence businesses will escape major changes when post-merger consolidation plans are revealed later this month, says Alan Mulally, president of Boeing Information, Space and Defense Systems (ISDS).
"There is not much overlap" in products or manufacturing between the Boeing, McDonnell Douglas and Rockwell businesses which now make up ISDS, says Mulally, who expects "...a longer-term continuous improvement of asset utilisation", rather than a Raytheon-style consolidation.
All three companies have reduced factory floorspace by some 20% over the past five years, he says, and he expects Boeing to "steadily improve" the efficiency of its plants, rather than precipitate large-scale closures. The company will continue its thrust towards strategic manufacturing sectors, he says, bringing like parts and technologies together under one roof.
This is likely to result in a blurring of the distinction between traditional military and commercial manufacturing. "We may build military parts on commercial lines," he says.
Digital product definition and process simulation technologies used on Boeing's commercial aircraft are already being put to use on military programmes, such as the Joint Strike Fighter, Mulally says.
ISDS sees a "real market" in information and communications, he says, with the merger bringing together Boeing's AWACS work, Rockwell's satellite manufacturing and MDC's launcher programmes. The company also plans to expand its military aircraft support business substantially, using its commercial aircraft support experience, he says.
Mulally: "not much overlap"
Source: Flight International
