Friday, April 1, 2016

Its Always Been About The People Who Build Boeing

Boeing's internal demographic statistics show a vulnerability during the next ten years where thousands upon thousand will be leaving the company through Retirement. The baby boomers will be "dropping the mic" and leaving the company. Boeing just announced it will be laying off 4,000 plus workers through attrition. The HeraldNet reports about 7,000 to 9000 could go sooner rather than later. It also reports about 7500 Professional Engineering Employees in Aerospace SPEEA workers are over 50 years of age which brings up a well-known consideration, "Succession Planning". 

Every company, organization or public governance prepares an annual plan for its workforce. Boeing has had many years for this day for the HeraldNet's reporting. Boeing has a know-how vulnerability during the next ten years. Perhaps announcing the 4,000 layoffs last week signaled a succession planning correction. Boeing knew it was losing thousands of workers due to retirement, even though it was something it had planned for a long time. It now will announce those retirements masked through a workforce reduction statement which is Stock Market speak "everything is Okay we are a responsible corporation". They are pruning the hedge when in fact too many will leave too soon, and Boeing will have to hire too many too fast in the near term while using a 4,000 workforce reduction announcement through attrition when it really obscures the real problem of an aging workforce.

Succession planning is nothing to be feared as Boeing will inflow its workforce from many outside sources, especially those who can't match Boeing's pay or career opportunity potential. It is a (Puget) sound bet, University and Trade industry applicants can supply the partially trained workforce, before the (in training) workforce requires its premium working knowledge as a Boeing Engineer or Mechanic.

After all, not everyone is retiring in the next 10 years from Boeing. It has a strong workforce under the age of 45. This is the heart of Boeing that should never be ripped out. They are the standard bearers for Boeing's future which should be the real succession planning talking point. How is Boeing's aging workforce component from age from 25 to age 50? It represents about 80% of the workforce for what Boeing is doing as an airframe maker. The plan Boeing is currently showing is a workforce trimming, controlling what it can control looking forward with its future plans.