Airbus Contemplates Expansion of Raw Material Demand Management Program to Include Steel

June 2024
Airbus Contemplates Expansion of Raw Material Demand Management Program to Include Steel

Further testament that supply chain issues are plaguing both sides of the Atlantic, Airbus said it is looking at expanding its raw material purchasing program to include steel. Under the program, the aircraft OEM negotiates price and quantity of material with the mills on behalf of its suppliers who are then responsible for placing orders for their material. Currently, Airbus only does this for titanium and aluminum.

Whereas Ti-6-4 is used in many different types of applications (including both stationary and rotating parts), steel comes in many specialty grades that often are specific to applications (e.g., engine mainshafts are only made from maraging steels, bearings and gears are only made from a narrow set of grades). If there is a supply issue in a particular grade, deliveries of parts made from that grade are delayed, which cascades to impact entire programs. Supply constraints have impacted availability of a number of steel grades.

Cliff Collier

By: Cliff Collier

Principal/Operations & Supply Chain

Improvement Lead