Like other Tier I component suppliers, Irvine, Calif.,-based Parker Aerospace is under heavy pressure from Boeing to reduce its prices. And with 70% of its work outsourced, Parker has little choice but to pass the squeeze down the supply chain.

“It’s definitely more Boeing than Airbus,” Parker Aerospace President Roger Sherrard told Aviation Week in an interview at the Farnborough Airshow. “But with Airbus and Rolls-Royce now seeing the higher profitability of their peers –- Boeing and GE -– there’s a lot more pressure coming from them than in the past.”

Suppliers have complained that Boeing’s “Partnering for Success” initiative is a one-way street that benefits the company much more than them. Sherrard says that while the pressure to cut costs is intense, Boeing has become much more engaged in working with Parker and other suppliers to find ways to operate more efficiently. “There’s 600-700 [Boeing] engineers out there working with the supply chain,” he says.

Parker’s parent company, Parker Hannifin, has had initiatives under way for more than a decade to cut supplier costs and improve manufacturing efficiencies. Now the company has launched an initiative with its suppliers similar to Partnering for Success to accelerate price reductions.

“This is definitely real and its not going away, and its definitely different than seven years ago, Sherrard says. “We’re doing the same thing with our supply base.”