Boeing’s new CEO Robert “Kelly” Ortberg’s appointment was well received by Wall Street investors, who were looking for an outsider with engineering and manufacturing experience to lead the embattled company. Ortberg, a former Rockwell Collins CEO, is praised for his success in growing the company’s revenue from $4 billion to $9 billion during his tenure. Analysts and aerospace consultants describe him as a competitive, detail-oriented executive with a strong background in parts making.
Ortberg’s experience in navigating the aerospace and defense supply chain is seen as a valuable asset as Boeing struggles to meet production demands. His focus on technology development at Rockwell allowed the company to pioneer the idea of a connected aircraft, which could be beneficial for Boeing’s future projects. His appointment was favored over Stephanie Pope, an insider with a finance background, and Pat Shanahan, a former Boeing executive.
One of Ortberg’s first challenges will be negotiating contracts with the union representing Boeing’s machinists and assembly workers, a process expected to be contentious. Boeing workers are still reeling from past negotiations that ended pension plans, and recent contract talks with firefighters and pilots ended on a hard note. The new CEO may seek to avoid a strike amidst the ongoing turnover at Boeing’s leadership.
Boeing faces a host of issues including manufacturing problems with the 737 MAX, a recent felony charge for defrauding the U.S. government, and a net loss of $1.44 billion in the second quarter. Ortberg is seen as a potential solution to these problems, with analysts expressing hope for the company’s future under his leadership. Investors reacted positively to the news, with Boeing shares trading up following the announcement.
Ortberg’s background in building a positive corporate culture at Rockwell and his success in growing the company’s revenue make him a strong candidate to lead Boeing through its current challenges. Analysts believe that his focus on technology development and understanding of the supply chain dynamics will be crucial in addressing Boeing’s longstanding issues. The new CEO will need to navigate contract negotiations with the union while addressing ongoing manufacturing problems and legal challenges facing the company.
