Bruce Andrews, partner, and Joseph Lakaj, analyst, at Alderman & Company says the US airframe manufacturer has taken concrete steps to rebuild its foundation – and it’s starting to work
In our 24 years of exclusively selling middle-market Aerospace and Defense (A&D) companies, early 2025 marks a turning point in commercial aviation for middle-market aerospace suppliers.
Boeing, after several years of production issues, safety failures, and delivery delays, is beginning to stabilise operations.
These developments are creating clearer visibility and increased opportunities for suppliers across the commercial aerospace value chain.
Customer demand has returned; and production rates are becoming increasingly steady.
The post pandemic instability for middle market aerospace suppliers began in 2024, as Boeing delivered only 528 aircraft, its lowest post-pandemic output.
A door plug incident on an Alaska Airlines 737 MAX in January triggered a full FAA investigation and became the latest flashpoint in a long series of quality control failures.
The response from Boeing was swift and far-reaching, including appointment of new chief Kelly Ortberg replacing Dave Calhoun, tighter internal processes, external oversight by the FAA and restructuring of key production relationships, like Boeing’s decision to reacquire Spirit AeroSystems.
The FAA has capped Boeing’s 737 MAX production rate at 38 planes per month until it can prove that its quality systems are functioning reliably.
That restriction, while tough, is forcing Boeing to slow down and stabilise, laying the foundation for more consistent long-term performance.
What matters most is that these actions are starting to show positive results for middle-market aerospace suppliers.
In the first quarter of 2025, Boeing delivered 130 commercial aircraft – a 56% increase over the same period in 2024. Gross aircraft orders jumped by 84%, from 131 to 241.
Those are not small steps; they signal growing confidence from customers and improved execution across Boeing’s lines.
For suppliers, this means two critical things: predictability and opportunity.
In recent years, middle-market aerospace suppliers were often plagued with large changes in demand caused by Boeing’s production swings – rushing to ramp up when demand surged, then left scrambling when programmes paused due to quality issues.
Now, with production rates stabilising under tighter controls, suppliers can plan ahead. Delivery schedules are becoming more reliable, and cash flow becomes easier to manage.
Capital investment decisions – whether in new equipment, certifications, or workforce – can be made with a clearer sense of what’s coming.
The quality improvements also reduce the risk of cascading shutdowns in the supply chain. If a single defect halts aircraft production at final assembly, it stalls everything downstream.
Boeing’s renewed discipline lowers that risk. Fewer stop-and-start cycles mean fewer costly resets for suppliers.
Most importantly, Boeing’s need for parts and assemblies is rising again. As it clears a deep backlog of orders and rebuilds trust with regulators and airlines, the company will need to lean harder on its supply base.
That opens the door for middle-market suppliers to grow their wallet share. Suppliers that can reliably deliver high-quality components will be well positioned to win more work.
Even the Boeing-China relationship, which remains strained, is unlikely to derail this recovery.
China may slow approvals or deliveries, but it cannot easily uncouple from Western aviation infrastructure.
And Boeing’s backlog is so extensive that the company can continue ramping production for years without full participation from China.
For US suppliers, the focus remains on feeding that growing domestic and international demand.
Boeing still has work to do. The Spirit acquisition must be integrated. Production targets are still constrained. Regulatory trust must be fully rebuilt.
But the company has taken concrete steps to rebuild its foundation—and it’s starting to work.
For the middle-market aerospace community, this is a moment of alignment: customer demand is real, and production is regaining traction.
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