CHESTER — The power of Boeing to insist on lower prices by its supply chain is so great that the Federal Reserve mentioned it as a factor in the Northeast's regional economy.
Even for suppliers who don't directly sell to the Boeing or Airbus duopoly, what the government called "exceptional pressure" rolls downhill.
"We're spending colossal amounts of time in wringing costs out of the product," said Andrew Gibson, CEO of AeroCision, an aerospace engine parts manufacturer. In the past two years, the pressure from engine makers to lower costs has intensified, he said.
Engine manufacturers sign 3 to 10-year contracts with suppliers such as...