On January 16, 2018 Boeing announced a joint venture with automotive seat manufacturer Adient to supply aircraft seats to Boeing customers. The new company, Adient Aerospace, will be based near Frankfurt, Germany. The action places Boeing in direct competition with suppliers Zodiac and Rockwell Collins.
Given Boeing’s historic role in outsourcing key systems of aircraft to Tier 1 manufacturers it seems surprising that it would reverse its strategy during an aerospace supercycle. Boeing lists multiple reasons for the action but one stands out as more immediate than any other – plane sales are being held up by lack of seats.
Aircraft seats, particularly profit-generating first and business class seats, are complex, precision assemblies. Recent aircraft deliveries have been held up for lack of seats, and the impact on Boeing’s revenues are significant to say nothing of the stress for its customers.
By venturing with Adient, Boeing is taking a half step back on a multi-decade outsourcing strategy. With its supply chain unable to keep pace, Boeing has elected to essentially “in-source” seat manufacturing.
For more information on the Boeing-Adient joint venture please visit:
