Here's What a Top Aviation CEO at Boeing Just Said About the Economy
Boeing (NYSE: BA) and aviation are a significant part of the U.S. economy, so when the company's CEO, David Calhoun, speaks, it's usually a good idea to listen. His recent commentary on his company and aviation says much about the global economy. In addition, there are some significant clues as to what investors should be looking for in the upcoming earnings season. So even if you aren't a Boeing investor, the following strongly relates to investment thinking.
The big news recently coming out of Boeing's CEO is that he believes that supply chain issues hitting the aviation industry will extend at least into 2023 and possibly late into the year. According to Reuters, Calhoun also said that the "biggest restraint" on suppliers was "labor availability".
The commentary on supply chain issues extending into 2023 isn't surprising. Many companies started 2022 expecting a significant improvement in the second half, only to warn that the supply chain issues were extending through 2022. For example, the management of industrial peer Illinois Tool Works doesn't "expect an improvement in the chip shortage situation until 2023," such that "automotive production and our associated automotive OEM revenues are essentially capped at current Q1 levels through the balance of the year." Meanwhile, management at Boeing's aviation partner General Electric (NYSE:GE) told investors that earnings were trending toward the low end of its full-year guidance, with ongoing supply chain issues hitting its healthcare, renewable energy, and aviation businesses.
Source Fool.com
