Moorlander wrote:I believe Inno an Zink work at Boeing, any info?
Zink doesn't work at Boeing but has an affinity for aerospace.
Due to the vastness of the JSF (F-35) contract, awarding it solely to one corporation was a major blow to the diversity of the American fighter industrial base. Only one fighter company would remain -- Lockheed Martin. Boeing was hoping that the overbudget F-35 would spur the government into bolstering the F-18 Hornet for a while longer. Instead, the F-35 remains fully funded and the F-18 faces a 1/3 budget cut in 2010.
It appears that the C-17 has been ordered for termination. This would mostly affect Southern California, but still affects the IDS defense unit headquartered in St. Louis.
The multibillion dollar tanker contract is still in the air. There were rumors that Congress would split it, but they have recently decided to go sole source. This mostly impacts Wichita and Seattle, yet a fair amount of jobs in St. Louis support it as well.
Boeing has made strides in diversifying its portfolio via efforts in Future Combat Systems. Unfortunately, this program faces cuts as well.
So what does this mean? I checked the latest annual report for some information. In 2008, the total number of new-build production aircraft was 99. F/A 18 models accounted for 45 or slightly less than 50% of that amount. If the F/A 18 budget were to be cut by 1/3, that would be a fair contraction.
My personal view is that Boeing will have to work to bolster F/A 18 funding in the near term while we plan ways to diversify and strengthen our defense portfolio. One of the best ways will be to dominate the market for unmanned aircraft. To that end, enter some hope in the newly-announced "
Phantom Ray." Additionally, perhaps IDS can leverage its strengths in technology and system integration to make headway in the energy/environmental sectors, which seem to be a priority in the current administration.
If Boeing IDS has trouble adapting to this new challenge, there will be negative impacts to not only Boeing jobs here, but those of our suppliers as well.
While I personally don't feel overly concerned now, I think we will have a clearer picture of the impacts as 2010 nears. It doesn't look rosy.