U.S. aerospace giant Boeing has announced plans to invest $1 billion in its South Carolina facilities to ramp up production of the 787 Dreamliner aircraft. The move aims to increase monthly output to 10 units by 2026 and will create 500 jobs over the next five years, according to a company statement released Thursday.
Addressing Production Challenges
Boeing's announcement comes amid challenges that include quality control issues and a recent machinists' strike. In September, as many as 33,000 workers in the U.S Pacific Northwest walked off their jobs, halting production of several aircraft models, including the 737 MAX, 777, and 767, as well as certain military programs. The strike, which lasted more than 50 days, was the most costly in U.S. history this century.
The company's South Carolina facility, a non-union site, remained operational during the strike, enabling continued production of the 787 Dreamliner. This facility will now serve as the centerpiece of Boeing's efforts to enhance manufacturing capabilities.
Resumption of Operations Nationwide
In early December, Boeing resumed production of its flagship 737 MAX at its Seattle-area plant, just weeks after the strike ended. Production of the 767 and wide-body 777/777X jets has also restarted at Boeing’s Everett, Washington facility.
Stephanie Pope, CEO of Boeing Commercial Airplanes, stated that the company has prioritized retraining and certification for all manufacturing teams while optimizing inventory levels to ensure smooth production.
Oversight and Safety Measures
The FAA - Federal-Aviation-Administration - is closely monitoring Boeing’s production processes. FAA Chief Mike Whitaker praised Boeing's cautious approach to resuming operations but emphasized intensified oversight to address safety concerns. In January, the FAA capped production of the 737 MAX at 38 planes per month following a midair incident involving a missing door panel on an Alaska Airlines flight. Further discussions between the FAA and Boeing are planned to evaluate production practices.
Boeing’s Future Outlook
Despite recent setbacks, Boeing remains optimistic about its future. The company reported an order backlog of more than 6,200 aircraft as of November, reflecting strong demand for its planes. However, deliveries in November fell significantly, with only 13 commercial jets handed over to customers, compared to 56 during the same month last year.
The USD1 billion investment in South Carolina underscores Boeing’s commitment to addressing production challenges and meeting market demand, while creating new opportunities for local employment.