http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable Will Boeing Have to Outsource Production to Remain Profitable? The evolving trade war between the USA under Trump and everyone else is having unexpected consequences. We just wrote about Harley Davidson moving production out of the USA. No matter that Harley is an American icon. It is not a huge company. How about the leaders of American industry that are also the biggest US exporters? The question we are going to consider is this. Will Boeing have to outsource production to remain profitable? A good article on CNN looks at the top US exports. Yes, the nation’s businesses and consumers spent $566 billion more on imported goods and services in 2017 than the United States sold in exports. But American companies still sold $2.3 trillion in goods and services to foreign businesses and consumers. The top US exporters are these according to the CNN article. Food, beverage and feed: $133 billion. Soybeans were the number one product in this category, with sales of $22 billion, followed by meat and poultry at $18 billion. Crude oil, fuel and other petroleum products: $109 billion. This is one of the fastest growing areas of US exports, up 37% in just the last year. Civilian aircraft and aircraft engines: $99 billion. This is what makes Boeing (BA) the nation’s largest single exporter. Auto parts, engines and car tires: $86 billion. Many of these are shipped to assembly plants owned by both US and foreign automakers in Mexico and Canada. A single company, Boeing, constitutes the vast majority of aircraft and engines exported by the USA. It is in third place behind all of US agricultural products and all of the gas and oil exporting business when measured by export dollars. What happens if Boeing gets caught up in Trump’s trade war? Will Boeing have to outsource production to remain profitable? How Does Boeing Make Money? Boeing makes money in defense and space systems. But, two thirds of its revenue comes from commercial airplanes. And a substantial portion of its commercial airplane business relies of foreign sales.

1. Will Boeing Have to Outsource
Production to Remain Profitable?
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
The evolving trade war between the USA
under Trump and everyone else is having
unexpected consequences.

3. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
We just wrote about Harley Davidson
moving production out of the USA.

4. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
No matter that Harley is an American icon.
It is not a huge company.

5. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
How about the leaders of American
industry that are also the biggest US
exporters?

6. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
The question we are going to consider is
this.

7. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Will Boeing have to outsource production
to remain profitable?

8. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
A good article on CNN looks at the top US
exports.

9. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Yes, the nation’s businesses and consumers
spent $566 billion more on imported goods
and services in 2017 than the United States
sold in exports.

10. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
But American companies still sold $2.3
trillion in goods and services to foreign
businesses and consumers.

11. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
The top US exporters are these according to
the CNN article.

12. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Food, beverage and feed: $133
billion. Soybeans were the number one
product in this category, with sales of $22
billion, followed by meat and poultry at
$18 billion.

13. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Crude oil, fuel and other petroleum
products: $109 billion. This is one of
the fastest growing areas of US exports, up
37% in just the last year.

14. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Civilian aircraft and aircraft
engines: $99 billion. This is what
makes Boeing (BA) the nation’s largest
single exporter.

15. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Auto parts, engines and car tires:
$86 billion. Many of these are shipped to
assembly plants owned by both US and
foreign automakers in Mexico and
Canada.

16. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
A single company, Boeing, constitutes the
vast majority of aircraft and engines
exported by the USA.

17. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
It is in third place behind all of US
agricultural products and all of the gas and
oil exporting business when measured by
export dollars.

18. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
What happens if Boeing gets caught up in
Trump’s trade war?

19. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Will Boeing have to outsource production
to remain profitable?

20. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
How Does Boeing Make
Money?

21. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Boeing makes money in defense and space
systems.

22. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
But, two thirds of its revenue comes from
commercial airplanes.

23. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
And a substantial portion of its commercial
airplane business relies of foreign sales.

24. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Will Boeing Have to Outsource
Production to Remain
Profitable?

25. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Boeing is already building a plant in
China. Forbes noted this in a 2015
article, Boeing To Build Its First
Offshore Plane Factory in China.

26. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Facing severe pressure from state-
subsidized foreign competitors and the end
of federal export financing, Boeing has
decided to throw in the towel.

27. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
After a hundred years of producing its
commercial aircraft exclusively in the U.S.,
the nation’s largest exporter will build its
first offshore aircraft plant in China.

28. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
This facility will primarily be used to finish
off interiors of commercial jets.

29. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Boeing maintains its position at the top of
the commercial airline business because it
guards its technical secretes, especially in
the business of producing jets.

30. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
Thus it does not want to ship valuable
technological expertise to other countries.

31. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
But, if the choice is to lose perhaps a third
of their business, Boeing may have to
outsource production of more high tech
parts in order to remain profitable.

32. http://profitableinvestingtips.com/stock-investing/will-boeing-have-to-outsource-production-to-remain-profitable
This may be the price Boeing has to pay to
avoid being chewed up in Trump’s trade
war.