Boeing optimistic on prospects
BUKIT KAYU HITAM: Boeing is optimistic on its 2019 growth prospects due to several factors including higher production rates and believes its recent venture into the services segment would enable the company to defend itself from a cyclical market demand.
Southeast Asia vice-president Ralph L. Skip Boyce said the group had established Boeing Global Services (BGS) by taking the service elements from its defence and commercial airplane segments.
He said the BGS segment delivered complete and costcompetitive service solutions for commercial, defence and space customers, regardless of the original manufacturer of the client’s equipment, and would bring unlimited new business opportunities.
“So, there are three business units (commercial, defence and BGS) and we are hoping that we can demonstrate to the markets that we can ride out our (business cycles) from now on, because we are still seen as being a 20th century manufacturing cyclical company.
“The history has been that way but we don’t necessarily think it’s going to remain the same in the future,” he told reporters after celebrating Aerospace Composites Malaysia Sdn Bhd’s (ACM) 1.5 millionth parts milestone here today.
The event was officiated by Kedah’s Sultan Sallehuddin Badlishah. Also present were Crown Prince Tengku Sharafudin Bad li shah S all ehudd in and Men teri Besar Datuk Seri Mukhriz Tun Mahathir.
ACM is a 50:50 joint-venture firm between Boeing and Hexcel, an American public industrial materials company.
In terms of production, Boyce said Boeing outperformed its competitors last year, recording a single-digit growth and record revenue of US$101 billion (US$1 = RM4.08) despite a challenging global market condition.
He said Boeing aimed to secure US$200 billion in revenue by 2025, where 50 per cent would be derived from the commercial segment, and BGS and defence to deliver 25 per cent each.
Boyce said the global aerospace industry was expected to be a US$15 trillion market over the next 20 years, with a global requirement of 42,700 new aircraft valued at US$6.3 trillion and a further US$8.8 trillion needed from aftermarket services.
“Southeast Asia continues to be a growing market with over 4,500 new aircraft worth US$690 billion to be delivered into the region over the next 20 years.
“Boeing has delivered over 800 commercial aircraft globally last year,” he said.
Going forward, Boyce said the company hoped to overcome production issues with the 737 model, which currently faced disruptions with engine supplies.
Boyce added the trade dispute between US and China remained a concern for Boeing but was not expected to substantially impact the company. — Bernama