The biggest aircraft manufacturer in the world has just announced that it will cease production of the 737 MAX in January 2020. The Boeing Company is United States' largest exporter and the new announcement regarding its most sold product will weigh on the United States' GDP growth next year. In the first quarter, experts are expecting a hit of 0.5 to 1 percentage points.
Although its grounding started in March, Boeing continued to build the 737 MAX in order to limit the affect on its 600 suppliers (General Electric, just to mention one). The manufacturer now has over 400 brand new planes parked in the Boeing Renton Factory that are still awaiting delivery. Boeing doesn’t know when the plane will be approved for service as the FAA extended its certification approval time to make sure nothing like the deadly accidents that occurred happens again.
Nevertheless, Boeing is not planning to lay off any of the 12,000 workers building the MAX in Renton, however employees at some suppliers will likely face salary cuts or possible redundancies. Boeing did eliminate some uncertainty by saying that it plans for those working on the 737 MAX program to continue related work or be temporarily assigned to other teams.
The good news is that once the 737 Max production will resume and the jets will fly again, Boeing's activity will most likely boost the US economy.