Boeing says it won’t lay anyone off as it halts 737 Max production, but for the 600 suppliers that make parts for the plane, the suspension could be damaging (BA, SPR, GE, UTX, HON, HXL, WWD)

Boeing announced on Monday that it will temporarily suspend production of the 737 Max, as the plane remains grounded into 2020.The company said the 12,000 employees at its Renton, WA factory, where the Max is built, would not face layoffs or furloughs “at this time,” and would be reassigned to other tasks.However, almost 600 suppliers…

Boeing says it won’t lay anyone off as it halts 737 Max production, but for the 600 suppliers that make parts for the plane, the suspension could be damaging (BA, SPR, GE, UTX, HON, HXL, WWD)

Boeing announced on Monday that it will temporarily suspend production of the 737 Max, as the plane remains grounded into 2020.The company said the 12,000 employees at its Renton, WA factory, where the Max is built, would not face layoffs or furloughs “at this time,” and would be reassigned to other tasks.However, almost 600 suppliers manufacture components for the plane. Those companies, some of which have tens of thousands of employees, and have less diverse revenue streams than Boeing, face potential ripple effects and impact from the production halt.Sign up for Business Insider’s transportation newsletter, Shifting Gears, to get more stories like this in your inbox.Visit Business Insider’s homepage for more stories.When Boeing announced that it would temporarily halt production of the 737 Max, it said that it had no plans for layoffs or furloughs “at this time.” Employees would be redirected onto other projects, or would focus on maintaining stored, undelivered aircraft, and getting them ready to fly to customers.But Boeing’s 12,000 Renton, Washington, employees are not the only workers whose livelihood depends on the 737 Max.A network of about 600 suppliers and hundreds more subcontractors create components for the 737 Max, ranging from materials like metal and composites, pieces like engines, smoke detectors, and ventilation systems, and even entire components, such as wings or fuselages.The impact of the production slowdown on those companies is more difficult to predict. Many of them also make components for other Boeing plane types and other aircraft manufacturers, like Airbus. But the 737, Boeing’s best-selling plane, makes up a significant portion of their workload.Brett Ryan, an economist at Deutsche Bank, estimated that
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