It’s not unusual for buyers and suppliers to dispute price and delivery terms. What is unusual is for the dispute to result in filing a legal action. Like Spirit AeroSystems going public last summer with its disagreement with Boeing about cost reductions, we read Howmet’s action as another sign that subtier suppliers experiencing input and labor price inflation may not continue to deliver to customers at prices that do not yet reflect the current cost environment.
Read More: Howmet Counter-Sues Lockheed and Lockheed Sues Howmet
