Destocking is here to stay until supply chains are back in
sync—and it could hit weaker suppliers hardest
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.
