Lack of steel and aluminium is holding back production rate increases, while manufacturers are cautious of hiring staff
Shortage of raw materials and supplier reluctance to add manpower are holding back production rate increases at business jet manufacturers. Both Cessna and Gulfstream say supply-chain issues are constraining production planned for this year.
"On the raw material side, both Cessna and our suppliers have had a harder time getting steel and aluminium," says the manufacturer. The company has pushed up Citation deliveries from 179 in 2004 to 235 this year after booking more than 330 orders in 2004. "We would love to produce a few more jets in 2005," says Lewis Campbell, chief executive of parent company Textron. "The supply base was a little slow coming back."
"On the manpower side," says Cessna, "suppliers were waiting to gauge how strong the aviation comeback would be prior to hiring an excessive number of employees." Citation deliveries dropped from 307 in 2002 to 197 in 2003 and early last year were forecast to fall as low as 165 for 2004, but recovered as the year progressed.
Despite a record intake of 43 aircraft orders in the fourth quarter, taking the total for 2004 to 95, Gulfstream says availability of raw materials limited the production rate increase planned for this year: "It we could get more raw material, we could build more aircraft."
Caution "across the board" about how long the business aviation recovery is going to continue is also a factor. Constrained production rates are helping build confidence by pushing delivery backlogs into 2006. "We want a flow that is manageable and realistic," the company says. Most business aircraft manufacturers draw from the same pool of suppliers, and "we can't all just turn the tap back on", says Gulfstream.
GRAHAM WARWICK / WASHINGTON DC
Source: Flight International
