Latest / The Productivity Podcast with Fexingo: Output, Efficiency, and Long-Term Economic Growth
How One Factory Error Cost Boeing Billions in Productivity
Boeing's 737 MAX crisis is often told as a safety story. But this episode reframes it as a productivity disaster — one that wiped out billions in output and revealed deep structural inefficiencies in aerospace manufacturing. Lucas and Luna trace how the decision to rush production of a new engine design for the 737 MAX in 2011 created cascading quality failures, regulatory slowdowns, and a supplier bottleneck that slashed Boeing's delivery rate from 52 planes per month to near zero in 2019. They examine the 2024 settlement with the FAA that capped output at 38 planes per month, and…
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