Boeing: The perfect story of what’s wrong with America’s economy? | Gautam Mukunda
Boeing’s bright spot this year was the hiring of its new CEO, Kelly Ortberg.
Maximilian Bauer, earned his degree in International Economics and Finance from the University of St. Gallen in Switzerland in 2014. He has dedicated his career to understanding the dynamics of the European Union economies, working as a strategic analyst in German banks and providing consultancy to the European Central Bank. Maximilian is well-versed in global market trends and has a reputation for his in-depth analyses of economic policies and their impacts on international finance.
Didn't we all know Jack Welch would be at the root of the problem.
What a smart, eloquent and dedicated guy 🙂
Yes, you have wasted your life. American manufacturers are today the worst in the world. That goes for manufacturing, for research, for food, for chemicals: You have the worst of the world managed system! You don't care about anything but profit. And money is the root of all evil.
Boeing is going down..
Well done!
Gautam, any reason to be speaking so fast?
My experience is that when engineering companies sacrifice customer quality for share holder value the company goes down hill fast.
Gautam's attitude that Boeing is to important to fail. The US govt will prop it up. This is why not only Boeing will fail but the US will fail. The greatest strength of free market capitalism is the ability to fail, and go bankrupt. Free markets are darwinian, survival of the fittest. Subsidizing failure invites more failure.
Sir
Your analysis is Amazing!
this man speaks too fast
If the financialization of the US economy has proven to be a bad thing, then how can it be fixed? What can government do? If both the Democratic and Republican parties are complicit in this, then is there any hope of changing things for the better?
Excellent analysis by Prof Gautam!
So true sir! This should be required study for all the leader wannabes!!!
This is a brilliant insightful man….! Our nation needs to wake up and realize his shared truth…..!
American CEOs are nothing but a clueless MFs. It's the end of Boeing and it will be a very lucky miracle to get back up. You mess with engineering and fudge everything up. Don't hire CEOs that do not have engineering degrees. Stupid American idea!!!!!
Boeing is just a symptom. The biggest elephant in the room is those corrupted and power addicted lawmakers in the Congress who take turn every 4 years to rip off the nation health and wealth. America is destined to fall if all the good people choose to do nothing to stop this rut.
When I was 15, I would only fly boeing. Today I no longer fly because of Boeing!!!
The short-term thinking applied at all levels of mgt in today’s corp world is appalling. Quality of product or service and employee satisfaction has become cannon fodder for top executive’s stock options.
The goals of governments is the public good. The goals of private equity is their profit. Expecting the private sector to consistently assume government responsibilities is crazy. Even the best fox will find it hard to guard the hen house.
The Chinese are coming. This will totally upend the industry.
I worked for an engineering company, where the same crap took place in the 90s already. I quit and moved to a different country at the time and have never looked back.
Let's not call it corporate greed. It's shareholder greed.
You get mutual funds, hedge funds, private equity groups, and other non-individual shareholders, run by people like Nelson Peltz or Carl Icahn, who want a return on their investments in a few quarters, rather than 5 or 10 years.
Jim Cramer has complained that public companies can't have 5 year turnaround or improvement plans.
If institutional shareholders behaved like Berkshire Hathaway (Warren Buffet is CEO), and simply sat back and let management act methodically, companies would not be so brutal.
That said, some of Boeing's problems stem from the McDonnel Douglas culture creeping in.
When McDonnell bought Douglas, Douglas was almost broke. The McDonnell executive who got Douglas' commercial business back on track was brutal.
He was also an aeronautical engineer, and not a finance guy. In fact, he was the head of aeodynamic reasearch at McDonnell, before taking charge at Douglas.
Intel & GE, also. Really sad
Boeing CEO N Top management wants top-tier quality with Chinese slave wages, which they can't get.
ps. maybe the best people don't run business or government. why?
GOP politicians have ruined America as a leader in all ways. too many stupid supporters can't understand. so they support Trump.
Send a message to Harris and Biden, that if the economy was good employees wouldn’t strike, and we the American will vote these tools out of office.. incompetent government. It’s not Boeing fault, this administration ran the country into the groun.
My father was a machinist at MCDD in STL in 1969-1972. He worked on the steering stabilizer for the F15. One day the part he was assembling came with wrong spec fastener. It was a Saturday and no Engineers were on the floor. He pressed a button to call for Engineering support. A few moments later an elderly man named Mac came by, did a few calculations, reviewed the drawing and signed off on the spec. That old man was a working engineer in a building with his name on it, Amazing. BTW, Those same stories are told about Elon at Tesla during the Model 3 launch. Not surprising that the Model 3/Y and the F15 are considered Iconic, best of breed, game changing products.
It’s the same thing at spirit aerosystems. Parts off .030 or more thousandths a managers saying push it thru Boeing will buy it. We need to make our numbers.
How can you have this discussion without mentioning china, who BTW is about to pounce in this space.
This is the corruption of capitalism that has been occurring for decades in multiple industries. Profit stopped being good enough, and ALL of the money became the requirement.
There is another company in time heading down the same path :-
Raytheon
For the original Boeing read Hughes/Raytheon Missile Systems
For McDonnell Douglas read UTC
Very sad