Conventional wisdom says that a weak dollar is good news for export driven U.S. aerospace manufacturers. But some of the industry's top executives beg to differ.
Goodrich CEO Marhsall Larsen says the weak dollar has hammered the profit margins of his company's operations in Europe. "I have 5,000-plus people that are manufacturing in pound sterling and euros," he laments. "I wish the dollar would strengthen."
Goodrich has embarked on a major shift of its supply chain production to lower cost facilities in places like India, Indonesia, Mexico and Poland. The company also is offshoring machining work to China. A lot of the supply chain work is being shifted from Europe "because it's just not competitive," Larsen said in an interview at the Farnborough Air Show.
Larsen's sentiments are shared by Boeing CEO James McNerney, who lists a strengthening of the dollar as one of his top wishes. Though the weak greenback makes the price of Boeing's airplanes cheaper, it is also making oil more expensive for Boeing's U.S. airline customers.