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Today โ€” 6 January 2025Main stream

I worked at Boeing for over 30 years. I witnessed the fallout of outsourcing firsthand.

6 January 2025 at 02:26
Boeing sign
Former Boeing engineer shares what 30 years at the beleaguered plane company was like.

PATRICK T. FALLON/Getty Images

  • Manufacturing engineer Douglas Dorsey started working at Boeing in 1984 and retired in 2017.
  • Dorsey worked on the Boeing 777 and 787 Dreamliner, where he said things began to unravel.
  • He reflects on his time on the shop floor and how Boeing plans to repair its reputation.

This as-told-to essay is based on a transcribed conversation with Douglas Dorsey, from Washington, about his career as a manufacturing engineer at Boeing. The following has been edited for length and clarity.

I started my career at Boeing in 1984, and I worked there for over 30 years.

I was a manufacturing engineer. My responsibilities included writing instructions and coming up with assembly sequences for aircraft.

During my career, I worked on several aircraft projects for Boeing, including the Advanced Tactical Fighter program, the Boeing 777, and the 787 Dreamliner. It was always interesting and challenging. I worked with dedicated employees and on cutting-edge programs.

I retired in 2017 feeling proud to have worked there. I was a "lifer" with Boeing blue blood running through my veins.

However, while working on the Boeing 787 program in the 2000s, I noticed that outsourcing manufacturing tasks to suppliers became a really big problem for Boeing. When I worked on the shop floor, I saw the negative impacts of outsourcing to suppliers, such as slower production and delivering incomplete parts.

Even after retiring, I've stayed up to date with Boeing. I've followed the news on malfunctions and strikes, but I think management is taking baby steps in the right direction.

I saw chaos unfold at Boeing due to mismanagement and outsourcing

During the good old days, I had a positive opinion of Boeing. In my first decade at the company, the chain of command was clear. You knew what your job responsibilities were and could count on your line managers. Most importantly, there was no drama with executives, and we had confidence in those in command.

But in 1997, upper management was thrown into chaos when Boeing merged with McDonnell Douglas, with McDonnell Douglas executives taking top positions at Boeing. Harry Stonecipher, who was briefly Boeing's CEO, resigned in 2005 after he was found having an affair with an employee.

It was like a corporate soap opera played out in the media. As an employee, the news was distracting and felt like evidence of the level of disorder at the top of the company.

At the same time, the Boeing 787 program was underway. The 787 was launched as a complete departure from how Boeing airplanes had traditionally been constructed. To reduce the time from program launch to when the planes were in service, Boeing would have "risk-sharing partners" deliver complete aircraft sections to the final assembly site.

787 program managers and employees implicitly understood this new production method, and we cautiously believed it might work. But it began to unravel bit by bit and ended in a three-year delay.

I wondered why we were accepting substandard work on 787

I was a project manufacturing engineer for the 787, creating work instructions, and a liaison manufacturing engineer, working on the shop floor to resolve issues with existing work instructions.

At the beginning of each new airplane program, program leadership and supply chain management divided major sections of the aircraft among various subcontractors, suppliers, and risk-sharing "partners." When suppliers were late in delivering their components or delivered them incomplete, this became "traveled work," which had to be completed by Boeing employees during final assembly.

I spent much of my time on the program trying to accommodate parts that had a "non-conformance" tag on them and had to be reworked and installed into the build.

I wondered what was going on and why we were accepting substandard, incomplete work.

As an engineer, I wasn't privy to the decisions going on in the upper chambers of management, but I could see the chaos filtering down. It felt like the company wasn't listening to its mechanics about how to improve processes.

I remember group meetings where employees, including myself, questioned decisions by management and offered constructive criticism that was politely but bluntly blown off.

The 787 was sadly delayed three years.

Confusing supply chains seem to still cause problems

Earlier this year, there was an incident with a Boeing 737 Max plane, where a door plug blew out after take off.

Although I retired in 2017, I think this was caused by mismanagement of traveled repair work. The plug door was manufactured by Spirit AeroSystems, a Boeing subsidiary that was sold off in 2005.

An investigation found that because the part 737MAX9 fuselage is shipped in whole, mechanics at Boeing rarely work on the plug doors. When the plug door frame had to be repaired and the plug door replaced, two separate groups of mechanics working on the door made mistakes.

As a result, a plug door malfunctioned, and Boeing's reputation was damaged alongside it, causing the FAA to increase its oversight of 737MAX9 planes' production processes.

It's always disappointing when the company you worked for makes major news headlines for a mistake. However, it doesn't change my general opinion of Boeing. I know there are many dedicated employees who are committed to doing their jobs properly and safely.

Boeing is taking baby steps in the right direction

I still know some Boeing employees and followed the recent strike. I think employees have gotten a good package, but they didn't get a return to the legacy defined-benefit pension plan. When I retired, I still benefited from the traditional pension plan and also had a 401(k).

Back in 2014, Boeing promised employees that they'd build the 777-9 in Washington. Part of the strike package is also building the next new plane in Washington. These promises show that Boeing management is waking up to the matter of outsourcing.

Boeing is also bringing Spirit AeroSystems, which it sold in 2005, back in-house. All the workers will be merged back under one camp.

The lines of communication between two in-house teams are often simpler and more direct than with a supplier. When I was on the 777 program in the 1990s, I would call my counterparts at the Wichita site to resolve issues and exchange information. I couldn't do this with a supplier because all communication had to be through supply chain management.

I think this shows Boeing acknowledging it went down a bad path when it sold the supplier.

I see these actions as baby steps in the right direction. Kelly Ortberg, Boeing's CEO, is trying to steer the company on a new course, but I think it's going to take a long time.

Editor's note: In response to Business a request for comment from Business Insider, a Boeing spokesperson highlighted remarks by CEO Kelly Ortberg during the company's third quarter report:

"Much has been written about how we got to where we are, but most also recognize that Boeing was once a benchmark for what good culture looks like. And I believe we can return to that legacy. I know culture change starts at the top. Our leaders, from me on down, need to be closely integrated with our business and the people who are doing the design and production of our products. We need to be on the factory floors, in the back shops, and in our engineering labs. We need to know what's going on, not only with our products but with our people."

Read the original article on Business Insider

Before yesterdayMain stream

A successful VC predicts what the next 10 years in the venture capital industry will look like

4 January 2025 at 01:43
Venture capital founding partner Alex Witt's headshot.
Alex Witt said venture capitalists have an unprecedented chance to back five transformative technologies: Generative AI, robotics, autonomous electric vehicles, blockchain, and biotech.

Courtesy of Alex Witt

  • Founding partner Alex Witt shared three venture capital predictions for the next decade.
  • Witt says that managers who've launched less than three funds will get more attention.
  • He also says that five key technologies and the African market will see more investments.

Since venture capital funds plummeted from 2021 to 2023, VCs are looking for ways to stop the pain and regain a sense of control over their future. Still, many VCs predict the industry will significantly decline in 2025 due to high interest rates.

Alex Witt, general partner at Verda Ventures and cofounder of the payment platform SWFT Blockchain agrees with recent predictions. Based on his 14 years of experience in finance and technology, Witt also gave Business Insider three more core predictions for the VC industry's next decade.

He believes technological opportunity combined with changing demographics will shape the VC experience over the next 10 years, creating more investment space for emerging managers, five key technologies, and Africa.

1. Emerging managers will drive the highest returns in the next decade

As limited partners recognize that successful Fund 1s don't necessarily translate into successful Fund 2s or 3s, the VC landscape will see a greater focus on new managers who've launched less than three funds.

"Emerging managers have been traditionally underfunded despite their success," Witt explained.

For context, Witt explained that larger funds have a track record of underperforming: only 17% of funds larger than $750 million return over 2.5 times of capital. Yet smaller funds have been proven to consistently outperform.

"Funds under $249 million are disproportionately represented in the top decile and quartile of performers," he said. Witt explained that targeting smaller, high-performing funds will be critical for future success.

2. VCs have an unprecedented chance to back five transformative technologies

According to Witt, we're entering a new "industrial renaissance" fueled by breakthroughs in five key technologies he believes have massive VC potential.

  • Generative AI: Witt predicts that key players in this arena will be companies with unique datasets, such as Google with YouTube data and xAI with X and Tesla data. Generative AI will even affect the finance and pharmaceutical industries.

    "Some impacts of generative AI to watch for include drug discovery with even faster trials and finance with real-time, data-driven trading.

  • Robotics: Witt pointed to innovations like generative AI-driven physical AI โ€” for example, Nvidia โ€” and referenced Tesla. "Market leader Tesla is positioned to dominate this area with its 'robots on wheels' approach to manufacturing."
  • Autonomous electric vehicles: Witt said Chinese carmaker BYD stands out as a global leader in data access and scalable manufacturing. "In terms of cost impact, more than 70% of Uber ride costs are labor-related, and autonomous transport will significantly reduce expenses," he said.
  • Blockchain: Accessibility is an area to watch in blockchain. Witt said blockchain enables low-cost, borderless transactions, and more markets are using it. "For example, MiniPay, the #1 app in Kenya, surpassed Facebook and Instagram in downloads."
  • Biotech: As an emerging technology, Witt explained that gene-based therapies offer precision treatments for inherited or environmental genetic abnormalities. "As examples, Moderna's mRNA success foreshadows the broader potential of CRISPR and similar technologies," he said.

"This era is reminiscent of the early 20th century's transformative, broad-based innovations like electricity and the internal combustion engine," Witt said. For VCs, Witt believes the coming decade marks a rare chance to back category-defining companies in emerging industries โ€” but he emphasized that success won't come easy.

"VCs will face the challenge of identifying category-defining winners," Witt said. "As history shows, industries tend to consolidate around one or two dominant players, with only a small fraction of companies emerging as leaders โ€” think Amazon and Google among the dot-com era's 500 IPOs."

3. Africa and the Global South will lead in VC-backed innovation

Beyond technology, Witt stressed that demographics are a critical and often overlooked factor shaping VC trends. He projects that population dynamics will increasingly determine the locations where innovation thrives.

"Demographics are destiny," Witt said.

He predicts that VCs will increasingly allocate capital to the Global South, particularly Africa, due to its "explosive" consumer and market growth potential.

"This shift will redefine traditional portfolio strategies, emphasizing demographic-driven investments," Witt said.

As support for his prediction, Witt noted that Africa leads global population growth, and that all of the top 20 fastest-growing populations are in the Global South.

He added that countries with aging populations and declining birth rates, such as Korea, with a fertility rate of 0.68, face a shrinking workforce and reduced appetite for risk and technological adoption.

In contrast, he believes that regions like Africa, with a fertility rate of 4.18, offer a young, growing population and expanding market potential.

"This is why some VCs are betting on the Global South as the next frontier for innovation and growth," Witt concluded. "Large populations equal large markets, and big markets mean that one or two successful companies can offset eight or nine failures, which is critical for VC success."

If you're a VC who would like to share your thoughts on the industry, please email Manseen Logan at [email protected].

Read the original article on Business Insider

I'm still looking for a job 8 months after my layoff. I have 20 years of experience and can't get hired — I'm scared.

2 January 2025 at 02:03
woman applying to jobs
Jennifer Gittelman says one regret may be holding her back from getting hired.

Maria Korneeva/Getty Images

  • Jennifer Gittelman faces prolonged unemployment after a mass layoff in healthcare administration.
  • Despite extensive job applications, Gittelman struggles with lack of responses and feedback.
  • Gittelman has one regret which she believes may be impacting her ability to get a job

This as-told-to essay is based on a conversation with Jennifer Gittelman, 44, from Philadelphia. It's been edited for length and clarity.

After a 20-year career in healthcare administration, I was part of a mass layoff in April. It sucked, but I remember thinking it would be OK. I figured if I started applying to jobs on July 1, there was no way I'd still be unemployed by the time my unemployment benefits ran out in October. I was wrong.

Here we are in December, and I've hardly done anything since July but apply for jobs all day, every day. As the weeks go by, it's been getting scarier and scarier.

My unemployment benefits ran out, and I'm pinching pennies to hold onto my savings. If I didn't have my 78-year-old mom to take care of, I think I'd just give up. But I can't and won't.

I've been in healthcare administration for pretty much my entire career

I worked at a Medicare DME supply company for 15 years before resigning in 2019 to relocate from Florida to Philadelphia. I take care of my mom, and I wanted to move her closer to our extended family.

I quickly landed a new role in medical staffing as a traveler support specialist. Six months later, the pandemic hit, and by November 2021, my entire branch was dissolved, and I was laid off. After an intense two months of job hunting, which I thought was forever at the time, I landed a job at a medical staffing company as a compliance and credentialing specialist.

I worked steadily there until April, when I was part of a mass layoff. Luckily, I was given a severance package and unemployment benefits through October, which helped cushion the blow.

I decided to rest for the next two months before applying for jobs in July. I haven't received any offers, and it's been a scary, disheartening time.

I've applied to countless jobs

Nearly all of my time, other than cleaning, grocery shopping, and volunteering for a nonprofit, is spent applying for jobs. I've searched through what feels like every job board possible: Indeed, GlassDoor, LinkedIn, ZipRecruiter, and more obscure ones like PowerMyCareer, Monster, and PSG.

I've tried all the free job search memberships and even some paid ones. I've applied to more jobs than I can count and nothing has seemed to work.

It's frustrating because I feel like my rรฉsumรฉ is pretty decent. In 20 years, I've only had three jobs, all in the same industry, and I have references from each place. I even have a letter of recommendation from a director at my last job.

I feel like employers have been unprofessional

For most applications, I'm not even getting a response from a human, let alone an opportunity for an interview. Typically, it's just an automated response saying the company is moving forward with someone else. There's no feedback, just rejection. It's insane.

I've had some interviews and a few that I thought went really well โ€” we spoke for an hour, the employer asked lots of questions, we discussed pay, and they even told me I was moving on to the next round.

Then, I'd write them an hour later, thanking them for the interview, and I'd never hear back. The one time I got a written rejection from a person, I asked if it would be possible to provide some feedback as to why I was not chosen. I didn't get a response.

I don't get excited about interviews anymore because who knows what could happen.

I have one regret that might be making it harder to land a job

I didn't finish college, and that's the one thing I regret. I've thought about going back a lot over the years but I couldn't justify accumulating all those student loans when I was already making a solid salary.

Now I feel like maybe I should've gone back to school because, in today's competitive job market, it helps a lot to have a degree.

I feel like I'm in this gray area of being overqualified for regular customer service positions, but because I don't have a degree, I'm underqualified for higher positions, even though I'm technically qualified to do them.

If I get a job offer, I'm taking it

I'm getting more scared as the weeks go by. Before my unemployment benefits ran out, I'd go out and buy a coffee from time to time. Now I won't even grab something at a WaWa. I want to save every penny I can.

At this point, I'm not in a position to turn down any job. It took me forever to save the money I have, and at 44, I don't want to spend my entire savings being unemployed.

I always try to make Christmas really nice for my mom because, at her age, who knows when it's going to be her last. This year I told her I was sorry because I couldn't do that, and she was like "Are you crazy? Do you think I care about presents at this age?" I know she doesn't care, but I can't help but feel bad.

Sometimes, I think, "What if I didn't have my mom to take care of?" Maybe I would just give up, lay in bed, and become homeless. Having someone who depends on me makes it so I can't give up.

This time has been disheartening, but I won't give up.

If you've struggled to find a job since a layoff and would like to share your story, please email Tess Martinelli at [email protected].

Read the original article on Business Insider

How Gen Z turned awkward holiday photos into viral gold for JCPenney Portrait Studios

1 January 2025 at 02:15
Jenny Powers, her husband and daughter pose for an awkward holiday photo in blue Hanukah themed sweaters looking into a light source off to the left/
The awkward holiday photo trend made up 30% of holiday photos at JCPenney Portrait Studios in 2024.

Courtesy of Jenny Powers/JCPenney Portrait Studios by Lifetouch

  • Lifetouch used the awkward holiday photo trend in its JCPenney studios to engage Gen Z customers.
  • The trend boosted foot traffic and JCPenney brand recognition among the younger generation.
  • One JCPenney Portrait Studio saw over 100 daily sessions during the holiday season.

Inside the Ocean County Mall in Tom's River, New Jersey, marketing professional Brandon Van Houten, 26, and his girlfriend of three years, Cassandra DiFabio, 25, prepared for their 15-minute awkward holiday photo shoot at the JCPenney Portrait Studio.

"I remember thinking, who gets their pictures taken at JCPenney anymore? It turns out a whole lot of people do," Van Houten told Business Insider.

The couple had a two-hour wait, along with dozens of crying babies and a group of twenty-somethings clad in all denim waiting to get their awkward on.

When Van Houten posted his photos on TikTok and tagged JCPenneyPortraits, the company playfully replied, "Sooo how do we get on your Xmas card list? Asking for a friend."

Brandon Van Houten and Cassandra Superman Pose in Christmas photo.
Van Houten and his girlfriend DiFabio did an awkward Superman pose for one of their holiday photos.

Courtesy of Brandon Van Houten/JCPenney Portrait Studios by Lifetouch

"The fact that they responded was both unexpected and awesome, and it made me look at JCPenney in a whole new way," said Van Houten. "It's clear from their social media that the portraits team is made up of a younger generation that knows how to engage with their audience."

In other words, this isn't your mama's JCPenney. In fact, it isn't really JCPenney at all. The studios belong to Lifetouch and its parent company Shutterfly Inc. and they're using the awkward photo trend to grow their Gen Z customer base.

JCPenney hasn't owned the portrait studios since the '80s

In 1983, Lifetouch, a national leader in school photography, acquired the JCPenney Portrait Studios from the retail giant. Then in 2018, Shutterfly Inc. acquired Lifetouch in an $825 million cash deal. So, in reality, the JCPenney Portrait Studios by Lifetouch are now under the Shutterfly umbrella, which becomes evident when customers are prompted to create or log into their Shutterfly account to receive their digital images through the cloud-photo management service.

Nevertheless, the awkward family photo trend has been a boon for both Lifetouch and the JCPenney brand. Not only do the JCPenney Portrait Studios maintain their original name, boosting the JCPenney brand recognition among younger generations, but since all 357 studios in the United States are located inside JCPenney stores, there's an increase in foot traffic.

Additionally, a Lifetouch representative told BI that their company leases the studio spaces from JCPenney, adding another benefit to the partnership.

The holidays bring in 100 daily customers to a single JCPenney Portrait studio

Linda, a JCPenney Portrait Studio photographer who asked BI not to publish her last name for privacy reasons, has worked at a high-volume location in the Northeast for three years. She told BI that during the holidays, her studio regularly sees over 100 sessions a day, with wait times ranging from 45 minutes to up to two hours, as DiFabio and Van Houten experienced.

"The only reason we're having these awkward portrait sessions is because they went crazy viral on TikTok," she said.

The social media trend commonly referred to as "This is your sign to do an awkward photo session at JCPenney Portrait Studios" took off last year and has continued to soar to new heights during the holiday season.

On TikTok, where people showcase live content from their portrait sessions, #JCPenney has more than 25,000 posts, with some videos getting up to 10M views, and #JCPenneyPortraits has over 12,000 posts.

Jose and Samantha Colon pose for an awkward photo.
Samantha Colon posed for an awkward Christmas photo with her husband Jose.

Courtesy of Samantha Colon/JCPenney Portrait Studios by Lifetouch

"We had so much fun posing and working with our photographer that now we want to do this for every holiday," said 27-year-old Samantha Colon, whose recorded session with her husband garnered nearly 64,000 views on Tiktok. "I'm already thinking about Valentine's Day."

In the '80s and '90s, parents dragged their reluctant kids to the local JCPenney for a portrait session. Now, the kids are coming in on their own in droves to intentionally replicate a nostalgic experience from an era they weren't even alive for.

I tried the trend with my family, and my Gen Z daughter loved it

Inspired by all the social media posts in my feed, I booked a holiday portrait session for my own family. My husband and our Gen Z daughter scoured the internet for awkward Hanukkah attire and turned to Pinterest for pose inspirations which we practiced at home.

A week later, we drove an hour to the nearest JCPenney in Brooklyn, New York. It was my first time in a JCPenney in decades.

Jenny Powers, her daughter, and her husband awkwardly posing ear-to-ear for a holiday photo.
The Powers family got pose ideas from Pinterest and the studio photographer.

Courtesy of Jenny Powers/JCPenney Portrait Studios by Lifetouch

The photographer was very familiar with the awkward trend and alternated between instructing us on how to pose and looking at the shot list we'd created, thanks to Pinterest. The session wound up taking 25 minutes versus the allotted 15 minutes, which is likely part of the reason there's a lot of waiting time involved in these sessions โ€” we waited for an hour when we arrived.

Counting our roundtrip drive and studio waiting time, the experience took four hours and cost $145 โ€” thanks to a $70 coupon โ€” between the $15 per person sitting fee and the 38-photo digital album.

We all had a blast, and our fifteen-year-old daughter is already asking when we can return and do it again.

The trend has captured a new generation of customers

Getting Gen Z into the stores and through those studio doors is hopefully just the beginning. Emilee Feneis, director of marketing performance for Lifetouch (Shutterfly Inc.), told BI, "This has been a great new customer acquisition channel for us in terms of bringing in younger generations, and our goal is to be able to retain them as customers for all of the different stages of their lives and grow as a business."

Feiness said during November and December, the studios see 90% more sessions captured than during the rest of the year. While the core of its business remains traditional family photography, a staggering 30% of the photo sessions this holiday were of the awkward family variety.

Jenny and Jeff Powers bending at the waste facing each other with arms wrapped around the other person's waste in an awkward holiday photo pose.
Jenny and Jeff Powers stand in awkward poses for their JCPenney holiday photo session.

Courtesy of Jenny Powers/JCPenney Portrait Studios by Lifetouch

"We wanted to engage more with our younger audience and meet them where they're at, so last November, we launched our own TikTok account," said Hayley Schroer, a marketing manager at Lifetouch.

One year later, the brand's TikTok account has 11,000 followers.

At the end of the day, Nikki Massimore, director of retail photography at JCPenney Portrait Studios, whose team is responsible for training studio photographers, says, "It's not just about a handful of pictures. It's the whole experience of bringing people together in a whole different way to do something fun and unconventional."

Between the flurry of social media posts, it seemed to have worked The awkward family portrait was one of the most unlikely comebacks and a big lure for Gen Z.

Read the original article on Business Insider

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