Aerospace

Had an MRO client call me yesterday asking for how the new tariffs will affect their supply chain and operating costs.

Many parts cross borders multiple times before any aircraft is final assembled, and of course the aftermarket spares also need unhindered circulation to keep those aircraft in service flying worldwide, wherever they may break down and need repair.

The backlog for new aircraft at Airbus and Boeing is already on the order of 11–12 years, well after the pandemic wreaked havoc on the just-in-time supply chains of OEMs and tier-1/2 suppliers.

It’ll be interesting to watch all the second-order effects of the new tariffs

Case in point:

Had an MRO client call me yesterday asking for how the new tariffs will affect their supply chain and operating costs.

Many parts cross borders multiple times before any aircraft is final assembled, and of course the aftermarket spares also need unhindered circulation to keep those aircraft in service flying worldwide, wherever they may break down and need repair.

The backlog for new aircraft at Airbus and Boeing is already on the order of 11–12 years, well after the pandemic wreaked havoc on the just-in-time supply chains of OEMs and tier-1/2 suppliers.

It’ll be interesting to watch all the second-order effects of the new tariffs

Case in point: https://search.app/mQKwXgmTB5S1HZcr6