KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
The two-week strike at Boeing has significant implications for its suppliers, with companies like Pathfinder Manufacturing forced to furlough employees as the labor stoppage continues. Pathfinder's CEO, Dave Trader, reported that 14 out of 54 employees have been furloughed, and he expressed concerns about needing to send more workers home if the strike persists.
Pathfinder operates a recruitment initiative aimed at attracting new talent to the aerospace industry, training students alongside skilled workers near Boeing's Everett jet factory, the largest manufacturing facility globally. The strike has also affected high school students participating in training programs, compounding challenges in an industry already struggling to find skilled labor.
Impact on Employment and Supply Chain
Boeing's labor disruption began on September 13, when about 30,000 machinists stopped working, halting production of the 737 MAX and older 767 and 777 models. As a result, the supply chain is facing significant concerns over maintaining workforce levels. Five out of nine suppliers contacted by Reuters reported beginning furloughs or delaying investments.
Despite the challenges, Trader is covering the healthcare costs for furloughed employees to retain them for when business picks up again. He remarked, "We want them back and we’re trying to give them that carrot to get them back."
Boeing has implemented rolling furloughs for much of its white-collar staff and has halted most parts orders, except for those related to the 787 program. The company, facing a series of crises including a grounding of the MAX aircraft, is caught in a dilemma between the urgent need to conserve cash and the necessity to sustain output levels post-strike.
Long-Term Concerns for Suppliers
At New Tech Industries, which relies on Boeing for 85% of its business, co-owner Carmen Evans noted that while existing orders will keep operations running into next year, new orders have slowed. This follows a period of recovery after the pandemic had already strained their workforce.
Evans has postponed plans to renew machinery, critical for Boeing's competitive position against Airbus, which has been outpacing Boeing in production. She stated, "I'm not going to try to grow things right now until this gets resolved," reflecting the uncertainty surrounding future orders.
Future Hiring and Skills Competition
The uncertainty created by the strike has led some suppliers to explore opportunities with Airbus, although experts indicate it can take up to 18 months to integrate into a new program. Additionally, Airbus has faced challenges in ramping up its production capabilities.
Despite the immediate impact, Trader believes the post-strike environment will lead to a hiring surge as companies scramble to meet production demands. "At the end of the day, everyone is going to start hiring like crazy because they're going to want to ramp up," he commented.
The ongoing strike represents a significant challenge for Boeing and its suppliers, underscoring the fragile nature of the aerospace labor market amid broader industry pressures.
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