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Boeing overcomes supply disruption, secures fasteners for 737 MAX

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Boeing overcomes supply disruption, secures fasteners for 737 MAX
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Boeing 737 MAX | Official Website

Boeing, the U.S. aerospace giant, has managed to secure new stocks of fasteners for its 737 MAX jets after a significant fire disrupted one of its supplier's operations. In February, a fire broke out at a factory run by SPS Technologies in Jenkintown, Pennsylvania, leading to a bottleneck in the supply of specific fasteners such as nuts and bolts that are crucial for attaching landing gear to aircraft.

A source informed Reuters that Boeing has obtained new supplies in recent weeks, though at elevated prices. A Boeing spokesperson mentioned that the company does not anticipate “a near-term impact to commercial production” despite the challenges posed by the fastener shortage. Anonymous sources noted that without these components, production could potentially be halted.

Price increases for essential fasteners, which can already cost hundreds of dollars each, have been projected to see double-digit percentage rises. These increases reflect the heightened costs of materials and labor that fastener producers face. Titanium fasteners supplied by SPS, used in assembling modern aircraft like the 737 Max, 787 Dreamliner, and Airbus A350, are particularly affected. The incident has drawn attention to potential impacts on aircraft prices and delivery schedules due to the tariffs imposed by the previous U.S. administration.

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The February 17 fire at the SPS factory occurred after an explosion, affecting about 60 onsite workers, though no injuries were reported. The event left several original equipment manufacturers (OEMs), including Boeing, GE Aerospace, and Safran, scrambling to find alternative fastener suppliers. Sheila Kahyaoglu, a Jeffries analyst, stated that it could take more than nine months to secure alternative suppliers for Boeing. However, Boeing's risk is mitigated by its low production rates and substantial parts inventory.

To connect its various parts, a 737 MAX requires thousands of fasteners. Although many components are produced by several companies, some fasteners made by SPS are unique and not easily sourced from elsewhere. Companies like Howmet Aerospace and LISI Aerospace have reported increased inquiries for products since the SPS incident.

Boeing's production targets are ambitious as the company aims to increase its output despite the challenges. In March 2025, Boeing delivered 130 aircraft to customers, including 101 737 MAXs, after experiencing their best month since 2023 with 45 deliveries in January. According to aviation analytics group Cirium, Boeing is projected to deliver about 610 aircraft this year.

Despite the fire and past supply chain disruptions, Boeing's CEO, Kelly Ortberg, has outlined plans to ramp up production. The goal is set to produce 42 jets monthly by the year's end, surpassing the FAA cap of 38 monthly aircraft. At the same time, rival Airbus aims to deliver 820 aircraft this year, following a robust start with 136 deliveries by the end of Q1 2025.

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