Persisting supply chain issues and casting shortages are likely to result in a slow first quarter for engine manufacturer Pratt & Whitney.
The company has warned that it may not be able to deliver around 70 engines to Airbus in the first quarter due to the shortages caused by the Covid-19 pandemic.
Parent company Raytheon Technologies Corp CEO Greg Hayes said at an industry analyst conference that Pratt & Whitney will “make that up later in the year,” but added the impact would hold down growth in the quarter ending March 31. He also gave a warning to analysts last month, blaming a shortage of welders for the difficulties of castings manufacture.
Raytheon Technologies faces a more serious issue with military supply chains. Hayes said it will take more than a year to get suppliers of parts making rocket motors back on schedule, which will affect Raytheon Missiles and Defense.
Supply chain experts dispatched to 280 suppliers
Raytheon works with around 13,000 product suppliers and of those, 1,390 are considered critical suppliers of engineered products. Hayes said the company has highlighted 380 suppliers as a “cause for some level of concern.” he said. Supply chain experts have been dispatched to at least 280 of those suppliers to work through some of the issues which include schedules and labour.
Hayes added that Raytheon was “highly confident” that commercial aerospace would return this year and in 2023 strongly enough to restore business to 2019 levels.
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