Dive Brief:
- Canada-based aircraft manufacturer Bombardier grew its deliveries by six aircraft to 31 units in Q3 while other industry players struggled with supply chain disruptions, according to a Nov. 2 earnings call.
- The supplier is working to meet its Q4 guidance by proactively managing issues before they reach their assembly line. Currently, Bombardier has “all of our parts and everything already with us under the roof … to be able to deliver the airplane,” President and CEO Eric Martel told analysts.
- Martel touted the company’s “proactiveness” in mitigating supply chain issues and keeping up with its delivery schedule. At the same time, the chief cautioned that “the global supply chain base is still under the strain of various disruption[s] and challenges.”
Dive Insight:
The aircraft manufacturer has implemented several supply chain strategies to prevent production issues. In 2020, Bombardier opted to strengthen its supply chain instead of reducing its workforce, which the manufacturer claims positioned it for success, the CEO said.
“Actually having people that are out there in the field working with our supplier to make sure they have the people to do the work, and if they don't, then we [would react],” Martel said. “This actually translated in the last two years into us taking back some work or moving work elsewhere. We probably increased our population by taking work in by more than just about 500 in Montreal, another 700 in Mexico.”
Bombardier also brought some work in-house to make sure that its supply chains were reliable, which has reaped benefits over the last three years. The company also embedded its employees with major equipment manufacturers, down to the tier-two level. “So, as I always like to say, the sooner you know about an issue, the more chance you have to be successful in fixing it and not impacting your line,” Martel said.
“This will be the third year in a row we expect to meet our delivery commitments,” Bombardier’s CEO said. “Supply chain is difficult, but we are not using it as an excuse for missing our commitments.”
While Bombardier remains on track to reach its Q4 delivery guidance, other manufacturers have struggled. Aerospace giant Boeing, for instance, saw 737 delivery shortfalls last quarter due to quality issues in the aft pressure bulkhead from Spirit AeroSystems, which also grappled with its fair share of supply chain battles this year.
Meanwhile, Brazil-based aero manufacturer Embraer noted in its Q3 earnings call that the company is still facing supply chain challenges and has been “working diligently with its suppliers to mitigate these issues,” President and CEO Francisco Gomes Neto told analysts. In turn, Embraer expects an “intense Q4,” and even then, anticipates it will be at the lower end of its guidance this year in terms of deliveries due to late parts.
