Boeing Braces for Strike After Talks Fail

Much of the aviation world will be watching how the strike affects the company's new 787 midsize commercial jet, known as the Dreamliner. The plane, which is in final developmental stages, largely was designed for fuel efficiency. The hot seller has lightweight components that allow it to burn 20 percent less fuel than comparable-sized airliners. Boeing said it has 895 orders for the plane.

The Dreamliner program has faced a series of delays, putting it at least a year and a half behind schedule. Boeing's production plan is a big source frustration for the union. The company farmed out large parts of the plane's design and construction work to vendors, including companies outside the United States and others with workers in Southern states where unions are weak. Some of that work has come back with problems, contributing to delays.

Boeing sees the ability to outsource as key to improving efficiency and expanding its business. The firm says 90 percent of its back orders are from outside the United States and it has to remain competitive globally. "We believe that the only job security comes from selling airplanes and having happy customers," Boeing spokesman Chris Villiers said.

A long strike by Boeing employees could impact the nation's economy and slow recent export growth. Exports have been among the few bright spots in the economy, and the sale of aircraft and their parts has helped drive that growth. A long strike would also hurt firms that make engines, parts and aircraft components used by Boeing.

"Any slowdown in Boeing's production of aircraft will ripple through their supplier network and create problems for workers who make engines, structures, instruments and other parts," said Loren Thompson, a consultant at the Lexington Institute in Arlington.

That supply network is wide: Pratt & Whitney in Hartford, Conn., and GE both make engines for Boeing planes. Rockwell Collins, which is based in Cedar Rapids, Iowa, makes electronics for Boeing. Mitsubishi makes parts. Goodrich in Charlotte, N.C., makes landing gear and brakes. And Honeywell makes drive systems and avionics.

"The pain is felt in just about 50 states," said Richard Aboulafia, a vice president and aerospace industry analyst at the Teal Group in Fairfax. He said that about 70 percent of an aircraft's value is outsourced in some way. "What you're seeing at Boeing is the tip of the iceberg in terms of the financial, industrial and employment pain. . . . The first couple of weeks people can ride things out, but beyond that the pain starts to hit numerous homes."

Staff writers Sholnn Freeman, Dana Hedgpeth and researcher Julie Tate contributed to this report.