Spirit AeroSystems to Shift Supply Chain Jobs Overseas

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Spirit AeroSystems aims to cut down its operating expenses

Published By: Eunice Gettys on January 20, 2017 09:16 am EST

Moving ahead with its previously announced strategy, Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is looking ahead to outsource its supply chain jobs to another company. As part of the current news release, the company might cut down 86 jobs in US while selecting an outsourced company possibly in India, as Donald Trump takes office today.

The company has not yet officially announced the job transfer. However, the current news was reported by Reuters that reviews internal letter sent to company’s employees. The news was later on confirmed by sources familiar with the matter. Spirit AeroSystems is one of a major supplier of aircraft components to Boeing, the amrket leader in aircraft manufacturing.

Spirit AeroSystems told its workers earlier in December that the company’s supply chain work “could possibly be sub-contracted in the near future”. One of the source reported that the company might outsource its supply chain operations to a company located in India. However, the name of the company was not disclosed.

Analysts related to the industry are of the opinion that Spirit AeroSystems might receive opposition from Donald Trump who is forcing the US based companies to increase jobs in US while limiting to shift jobs overseas. Under the same objective, Trump was also reportedly against Boeing’s deal with China under which the aircraft manufacturer planned to build aircraft completion facility. However, the company promised that its jobs in US would not be affected by its new facility in China.

Despite knowing the current political conditions, Spirit AeroSystems reported that the company discussed outsourcing its supply chain operations with its labor union representing the potentially affected workers. Spirit AeroSystems manufactures fuselages for Boeing’s 737 single aisle commercial jets along with other parts used by Airbus Group SE (EPA:AIR) as well.

Industry experts also highlighted that if the company outsources its supply chain operations overseas, it might complicate its defense orders as the company will have to take approval from the government. The jobs under consideration are however not related to manufacturing and are of the work involving working on back-end supply agreements.

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