US Company Reset 4-28-25

US Companies need to redefine themselves to return to “profitable growth” by returning to continual product improvement with cost reductions. They need to upgrade their equipment and systems to increase throughput and productivity. This should keep their costs in line. They need to abandon the practice of relying on high quarterly profit reports to attract stock buyers. They need to automate, use “continuous improvement and employ AI to automate data systems. 

It is not likely that Boeing, GM and Ford will recover easily. They are still busy cleaning up the mess.

Boeing's recovery plan focuses on stabilizing production, addressing safety and quality concerns, and strengthening its financial position. Key elements include increasing 737 MAX production, refocusing on core businesses, and streamlining operations. The plan also involves improving safety and quality culture through increased training and audits, and potentially selling non-core assets to reduce debt. 

Here's a more detailed breakdown:

1. Production and Deliveries:

Target: Increase 737 MAX production to 38 units per month, a goal set before the recent safety and manufacturing issues. 

Progress: Deliveries have increased from 17 in December to the "upper 30s" in January, exceeding initial expectations. 

Challenges: Production was hampered by a union strike and an incident that led to a production cap on the 737 MAX. 

Focus: Ramping up production to meet market demand and regain market share. 

2. Financial Stability and Operational Efficiency:

Goal: Stabilize finances and reduce debt by selling non-core assets like Jeppesen. 

Strategies: Focusing on core businesses, streamlining operations, and improving cash flow. 

Progress: Boeing expects to turn cash-flow positive in the second half of 2025. 

3. Safety and Quality:

Focus: Improving safety and quality culture through increased training, audits, and feedback from employees, customers, and regulators.

Commitment: Working under the FAA's oversight to ensure safe and high-quality airplanes. 

4. Core Businesses and Strategic Focus:

Focus: Refocusing on core businesses like commercial airplanes and defense.

Potential Actions: Selling off non-core assets like Jeppesen. 

5. Future Outlook:

Analyst Predictions: Analysts predict Boeing's earnings and revenue will grow by 84.2% and 13.5% per annum, respectively. 

https://www.google.com/search?q=boeing+recovery

There are no confirmed reports indicating Boeing is exiting the space business in 2025. However, there have been discussions about potentially selling or divesting certain aspects of their space business, particularly the Starliner program and some portions of the joint venture with Lockheed Martin known as United Launch Alliance (ULA). Despite these explorations, Boeing has stated its commitment to the space business, investing in its space programs and focusing on delivering capabilities to customers, according to SpaceNews. 

In 2025, General Motors (GM) is implementing a recovery plan focusing on boosting shareholder returns, investing in electric and autonomous vehicles (EVs/AVs), and reducing costs. Key components include a 25% increase in the quarterly dividend, a $6 billion share buyback program, and significant investments in EV and AV development. GM also aims to reduce fixed costs, including those associated with its autonomous vehicle division, Cruise.

https://www.google.com/search?q=gm+recovery+plan

Ford is focusing on customer satisfaction and addressing issues like vehicle theft and EV support in its 2025 recovery plan. They are offering theft protection with the Ford Security Package, a buy-back program for defective vehicles, and expanded EV support through the Ford Power Promise and BlueOval Charge Network. 

https://www.google.com/search?q=ford+recovery+plan+

Comments

I don’t think the Labor Unions in these critical industries will help them become more automated. Boeing, GM and Ford will need to develop “high performing teams” that include current union workers.

Most new US manufacturing facilities will be built in States with “Right-to-Work” Laws in the most affordable States.

Norb Leahy, Dunwoody GA Tea Party Leader