The spread of the novel coronavirus has changed the way the Defense Department views its supply chain and the military is beginning to understand where the industrial base is “hyper efficient but very brittle,” according to the U.S. Navy acquisition executive.
Heico leaders said late April 15 they have laid off “some” employees across their aerospace and defense supplier portfolio and have cut work hours and pay at subsidiaries, but they are trying to avoid mass-layoffs as the COVID-19 pandemic rolls back the worldwide aerospace business.
Howmet Aerospace has eight mostly smaller manufacturing plants that are closed because of the coronavirus, the company’s chief executive said late April 14, and more were shuttered in March when the Pittsburgh-based supplier was still part of Arconic.
Spirit AeroSystems—the primary supplier to Boeing including for much of the 737 MAX and which does substantial defense industry work—warned Wall Street on April 14 it will record a roughly $160 million loss for the recently ended first quarter of 2020, as well as a pretax loss of around $102 million.