Boeing Co. is providing Spirit Aerosystems Holdings Inc. with up to $350 million to support production as it prepares for a planned acquisition of the company. The funds are intended to ensure that Spirit can meet the aircraft production rates required by Boeing, with repayment due by the end of 2026.
Boeing's ongoing machinist strike, which began on September 13, 2024, is expected to significantly impact the upcoming U.S. jobs report, with economists predicting a reduction of at least 50,000 jobs due to the strike and recent hurricanes. The company plans to cut 10% of its global workforce, or 17,000 jobs, as new CEO Kelly Ortberg aims to streamline operations. The Biden administration is involved in negotiations, urging both sides to reach a resolution.
McAllen, Texas, has been ranked as the city with the lowest cost of living in the U.S., boasting a regional price parity of 86.92%, with housing costs significantly contributing to its affordability. The median home price is $275,000, and the area has seen a 41% increase in housing supply year over year, driven by investment and demand. Following McAllen, Wichita, Kansas, ranks second with a regional price parity of 89.16% and a median home price of $292,700.
Spirit AeroSystems is considering additional furloughs or layoffs for hundreds of employees if the ongoing Boeing machinists' strike extends beyond November 25. The strike, now in its sixth week, has already led Spirit to prepare for the temporary furlough of about 700 workers at its Wichita, Kansas, facilities. This situation highlights the strain on the aerospace supply chain, as Boeing suppliers remain cautious about workforce reductions after previously rebuilding post-pandemic.
Boeing faces a pivotal moment as over 32,000 striking machinists vote on a new contract proposal that includes significant raises and bonuses, following a five-week work stoppage costing the company $1 billion monthly. New CEO Kelly Ortberg is expected to outline a restructuring plan during his first earnings call, as the company grapples with substantial financial losses and aims to regain trust after recent safety issues. The aerospace industry is urging President Biden to help resolve the strike, highlighting its widespread impact on suppliers nationwide.
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