Friday, August 14, 2015

Headlines Keep Marking The Boeing Bullseye

Constantly, are the headlines today about the Boeing $489 Billion Order Backlog, 1740 Airplanes needed for the Indian Market over the next twenty years. Especially noteworthy is the first 737 Max fuselage winding through the Wichita factory, lining up for next year’s first flight. A sense of urgency meets an opportunity is in process. The Bulls eye for Boeing is the next ten years of change management pacing with market need.
All three articles suggest the tiger has a tail for which Boeing is grabbing onto during the next five years. The twenty year expansion for India starts now as early orders will mark which airplane an Indian aviation companies will latch onto for the full ride. The airplane for which Boeing will provide, is the 737 Max. Even though the twin aisle superstars gain the largest headlines, the Max will figure prominently in early orders taken by Indian centered aviation operations.  These first orders will line up for follow-on orders when India region stretches for its 1,740 units needed within the Boeing forecast, which it had recently offered for public consumption.

That backlog word keeps reappearing with these journals as if it is a troublesome word for despair, or a bragging word of Industrial might. It depends on which Boeing VP you talk to concerning how backlog affects their area of responsibility. Backlog could mean a solid financial future for CFO's, or it could mean a sales impediment for a Marketing VP. Both will agree backlog is a necessary evil component for planning, and portraying the popularity of a type as a talking point. Either way backlog is a two edge sward slicing the inner functions of Boeing's progress. A short backlog chokes cash flows and gives marketing a high ground of anytime, anywhere and any price appeal. The extremely large backlog suggest a shrinkage of liability and healthy cash flows from production optimization. However, marketing is telling customers that 2022 is a good year for a 787 delivery.

Which brings me to another point: