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By the Leeham News Team

August 12, 2024, © Leeham News at Farnborough: After a period of intense disruption, the aerospace supply chain is showing signs of stabilisation, partly due to Boeing's recent production slowdown, according to Accenture’s global aerospace and defense lead, John Schmidt.

Titanium is now a scarce material given the sanctions against Russia. All Airbus and Boeing airplanes use the material. Photo Credit: Leeham News.

The reduction in output has eased some pressure on suppliers, allowing them to catch up on backlogs and recalibrate operations. However, Schmidt warned this respite may be short-lived as new challenges loom on the horizon.

Geopolitical tension involving Western nations and Russia, and the Asia-Pacific region, risks raw material shortages that may disrupt the delicate balance once more.

“The supply chain has evolved and changed in terms of where the focus is since COVID,” noted Schmidt in a sit-down interview with LNA at the Farnborough Airshow in July. “It wasn't too long ago that we couldn't get chips – chips were holding things back. It seems like we've gotten ahead of that, and now we're dealing with trying to find other sources of supply, and sometimes it's an issue with quality coming in."

“What's next is going to be sources of supply for things like titanium? There is enough in the supply chain already that has insulated the impact, but we're starting to see early indications that [titanium] might be the next thing that comes up.”