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Boeing troubles spill over into U.S. economy

The longer the company’s 737 Max jet stays grounded, the more impact Boeing suppliers and customers feel.

Boeing's first 737 MAX 9 is rolled out for the media at the Boeing factory in Renton, Washington, in 2017.
Boeing's first 737 MAX 9 is rolled out for the media at the Boeing factory in Renton, Washington, in 2017.
Jason Redmond/AFP/Getty Images

The continuing global grounding of Boeing’s 737 Max jet is having ripple effects in the U.S. manufacturing economy — and for the flying public.

Airlines have taken planes they can’t fly off of their schedules. That’s leading to fewer travel options and higher ticket prices for fliers.

Boeing has slowed (but not stopped) production of 737 Max jets in the Puget Sound area. If recertification by the Federal Aviation Administration and global aviation regulators is delayed into 2020, the company could cut production further, leading to layoffs of hourly and salaried workers, said analyst Scott Hamilton at the Leeham Co.

Boeing’s production slowdown has contributed to the overall slump in U.S. manufacturing, which has also been impacted by the GM strike and a downturn in global demand for U.S. exports.

But some analysts remain bullish on the company’s prospects in the long run, noting that Boeing is one of only two major competitors supplying global airlines, which are expanding their fleets and looking for new aircraft to increase fuel efficiency and passenger capacity.

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