Boeing reportedly expects its titanium purchases to increase in 2025. The increase stems from the company's plans to scale up production of its narrow-body 737 Max and wide-body 787 Dreamliners. Boeing hopes that domestic titanium smelters will be able to meet its needs in expanding aircraft production to support its long-term goal of producing 50 737s per month between 2025 and 2026 and 10 787s per month by 2026.
Although Boeing is optimistic about the increase in the construction rate of both aircraft programs, the federal government's production cap regulations caused by quality lapses on the 737 and parts shortages on the 787 pose challenges to achieving this goal. Although the 787 aircraft has a lower monthly production volume than the 737, it remains the main driver of Boeing's titanium demand due to its larger size and higher titanium demand.
To address these challenges, Boeing has been working to alleviate bottlenecks in its supply chain in preparation for increased production. This includes expanding the supply base, changing the product mix, and localizing operations to shorten delivery times. Localization will reduce Boeing's need to ship products to overseas forging plants, and the company also plans to purchase more intermediate titanium products such as slabs.
In terms of quality certification, Boeing requires suppliers to be more cautious when purchasing raw materials and go through a stricter certification process. Previously, titanium parts that have been used in aircraft production have been verified with fraudulent documents, an issue that has triggered an investigation by aviation regulators. Although Boeing stressed that there is no problem with the quality of titanium and that the affected aircraft are still safe, the company said it would strengthen supervision of its distributors and plans to increase inspection and certification training for suppliers to ensure better tracking of raw materials.
In summary, while expanding aircraft production, Boeing is working to optimize supply chain management and strengthen quality certification to ensure that it can meet future demand for titanium and maintain the safety and reliability of its aircraft.
