By Kevin Michaels
It is no secret that commercial aerospace subtier suppliers are in bad shape. Over the last decade, they have endured OEM supply chain initiatives followed by the Boeing 737 MAX production shutdown and then the COVID-19 crisis. Today they face labor and raw material shortages, surging energy prices and a dearth of working capital as they are asked to ramp up production rates. On top of these challenges, another unfortunate trend—increasing payment terms—will exacerbate supplier distress and ultimately could thwart the ability of OEMs to reach production goals.
