GE Aviation Bringing Work Back In House

The new Boeing Dreamliner 787 is affecting not only local United Technologies Aerospace Systems (UTAS), but also GE Aviation Division.  Not sure what it means for the local Loves Park operation, but an article in the Thursday WSJ headlined “GE Brings Engine Work Back”.

The lead paragraph states:

As Boeing Co. pays a price for having farmed out crucial parts on its new Dreamliner, General Electric Co’s aviation division is busy bringing work back on its engines back in-house.

In late December, GE Aviation agreed to buy Italian parts supplier Avio for $4.4 billion. That comes alongside the acquisition of a three-dimensional printing company, a joint-venture with a component casting company in Montana and another venture to secure access to a key raw material—silicon carbide, which is used to make high-tech ceramic parts.

This year, GE plans to open a pair of parts factories in Mississippi and Alabama and soon will announce the location of a third.

By doing more of the work itself, GE hopes to protect its technology, speed up development and secure supplies of needed components.

The article doesn’t say where the present work is being done, whether domestic of off-shore.. but at least for GE-US, it should increase production requirements as well.

The question then, is how will it impact our local GE Aviation operation?