The single most important thing Boeing (NYSE: BA) can do to turn its business around is improve the delivery rate on its most important aircraft, the narrow-body 737 MAX. Given that increasing production has always been a key driver of profit margin expansion (unit costs tend to fall as production increases), it will increase earnings and cash flow for Boeing. In addition, improving 737 MAX production will positively impact the aerospace supply chain built around the company. The aerospace giant is traditionally the single largest U.S. exporter (dollar value) and can account for a couple of percentage points of U.S. exports. As such, improving 737 MAX production is a needle mover for the U.S. economy. However, it's a gauge shaker for the supply chain, and arguably no bigger impact than on the company that makes the sole engine option for the 737 MAX, namely the GE Aerospace (NYSE: GE) and Safran joint venture CFM International.
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