Since two of their 737 Max planes have crashed in the last six months, deliveries from aircraft giant Boeing have come to a stop while an investigation happens. However, this hasn't stopped them from producing the planes themselves as they continue to be completed and kept in an inventory for when the investigation is over and they hopefully will be able to re-release the planes. However, concerns that the US GDP could fall by more than half a percent have risen as people are starting to worry that Boeing may ultimately have to shut down production as this investigation drags out. As the Boeing 747 Max model accounted for almost one-quarter of total aircraft production in the country, it's still somewhat surprising to see the projected impact that just one company can have on the US economy. But, as it has been mentioned, they are still continuing to produce and store the planes so GDP should remain unaffected by them unless they are ultimately told or come to the decision to stop making the aircraft for whatever reason.
It should be noted that a halt in production isn't totally out of the picture. Shares of Boeing have fallen almost 11 percent as of Thursday, March 21st. The company also has coordinated to slow down production of the plane and focus on older incomplete work in the coming weeks to try and use their resources efficiently somewhere else during this time.
SOURCE: https://www.cnbc.com/2019/03/21/boeings-737-max-could-hit-us-gdp-if-production-is-halted-jp-morgan.html
1 comment:
I am very shocked that and individual company could have that much impact on GDP. I wonder if it has something to do with how many other people it could effect. Boeing has a serious problem on their hands too as some companies haw already began to cancel orders for the 737 max.
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