Boeing (NYSE: BA) Makes New 52 Week Low As Strike Woes Continue

The aerospace giant Boeing's stock (NYSE: BA) remains in bear territory, hitting a new 52 week low of 151.24 before ending the day down 2.74%. The pre-market session continues to make new lows, with an indicated open of $150.87. The firm is facing a significant challenge as a machinists' strike, which started last month continues to impact its production lines for key aircraft models, including the 737 MAX, 767, and 777 weighs on sentiment.

This strike marked the first in 16 years for Boeing and involves around 30,000 machinists. The implications of the strike are extensive, resonating through the company's supply chain and affecting suppliers such as Pathfinder Manufacturing and New Tech Industries.

Pathfinder Manufacturing has been forced to furlough 14 out of its 54 employees due to the strike, while New Tech Industries, which has a significant reliance on Boeing's operations, has postponed necessary machinery upgrades. These suppliers are not only worried about the immediate financial challenges but also the long-term ability to retain skilled workers, manage cash flows, and navigate the uncertainty of future production schedules as long as Boeing's production remains halted.

In an effort to mitigate the impact and retain their talent, some suppliers, for example, Pathfinder, are continuing to extend health care benefits to furloughed workers. They are taking this step with the hope that workers will be available to resume their positions once operations kickstart again.

Apart from the strike, Boeing is dealing with a host of other issues that have caused a 40% decline in its stock price in 2024 so far. Ongoing production bottlenecks, regulatory oversight, and elevated safety concerns that were highlighted most recently by the National Transportation Safety Board's recommendation for immediate safety checks on the 737's rudder control system also continue to be challenges.