Boeing's Outsourcing Strategy with the 787

I've been reading Boeing Versus Airbus, and Boeing's new outsourcing strategy with the 787 caught my eye. This new strategy has shifted a good amount of the manufacturing work to Japan, China, and Europe. In fact, Airbus' parent company is building the aft pressure bulkhead. The reasons for each outsourcing decision varies, from market access, to capital access, to cost reduction. Boeing is outsourcing over 70% of the airframe--that gives you an idea of the extent of this new strategy.

In the near-term, this is probably a good move. It'll keep their costs stable (or reduce them), it'll provide them with leverage when negotiating with unions, and it'll give them access to additional expertise. But, will it benefit them in the long run? Or will it enable a new Airbus to come about in China and/or Japan? It's difficult to say, but that's the risk when it comes to outsourcing core competencies. It should give them a real cost advantage against Airbus over the next few years, but others may come about and undercut both companies down the road.