Howmet CEO Sees Jet Output Boost, Supply Chain Stability Despite Tariff 'Whiplash'

Howmet Aerospace CEO John Plant is optimistic about the aerospace industry's prospects in 2025, despite the challenges posed by tariff fluctuations and supply chain uncertainties. In a recent interview, Plant expressed confidence in the industry's ability to increase jet output and stabilize the supply chain, even as the sector grapples with the impact of changing U.S. tariff announcements.

Plant's optimism is supported by the recent performance of major planemakers, such as Boeing and Airbus. Boeing has announced plans to increase the production rate of its 737 MAX jet to 38 per month by mid-year, while Airbus expects to produce 75 single-aisle aircraft per month in 2027. These increases in production rates indicate a strong recovery in the aerospace industry, despite the challenges faced in recent years.

However, the aerospace industry continues to face challenges from tariff fluctuations and supply chain uncertainties. Howmet, for example, has been reacting to changing tariff announcements, such as the plans to put 25% duties on Mexico and Canada, only to see the threat removed a day later. This "tariff whiplash" creates uncertainty and volatility in the company's operations, leading to inefficiencies and increased costs.

To mitigate these impacts, Howmet employs several strategies, including reacting to changing tariff announcements, diversifying its supply chain, investing in technology and automation, and collaborating with industry peers. By implementing these strategies, Howmet can better navigate the challenges posed by tariff fluctuations and maintain a stable supply chain.

The stabilization of the aerospace supply chain, as mentioned by RTX CEO Chris Calio, also influences Howmet's operations and future growth prospects. Improved supplies of structural castings, the certification of Pratt & Whitney's GTF Advantage engine, and reduced uncertainty all contribute to a more favorable business environment for Howmet.

In conclusion, Howmet CEO John Plant sees improved jet output and supply chain stability in 2025, despite the challenges posed by tariff 'whiplash.' By implementing strategic initiatives and capitalizing on industry trends, Howmet is well-positioned to capitalize on the growth opportunities in the aerospace sector.