Boeing announced plans to acquire key supplier Spirit AeroSystems for $4.7 billion, a move that it says will improve plane quality and safety amid increasing scrutiny by Congress, airlines and the Department of Justice.

Boeing previously owned Spirit, and the purchase would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes. That approach has been criticized as problems at Spirit disrupted production and delivery of popular Boeing jetliners including 737s and 787s.

“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.

Concerns about safety came to a head after the Jan. 5 blowout of a panel on an Alaska Airlines 737 Max 9 at 16,000 feet (4,876 meters) over Oregon. The Federal Aviation Administration soon after announced increased oversight of Boeing and Spirit, which supplied the fuselage for the plane.

No one was seriously injured in the Alaska Airlines door incident, which terrified passengers, but Boeing is under pressure from the U.S. Justice Department to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jetliners more than five years ago.

Boeing has until the end of the week to accept or reject the offer, which includes the giant aerospace company agreeing to an independent monitor who would oversee its compliance with anti-fraud laws, according to several people who heard federal prosecutors detail a proposed offer Sunday.

The Justice Department said in a May court filing that Boeing violated terms of a 2021 settlement allowing the company to avoid prosecution for actions leading up to the crashes in Ethiopia and Indonesia, which killed 346 people.

Those crashes were blamed on a faulty sensor in a flight-control system and the investigation is separate from the probe of the more recent Alaska Airlines blowout, which involved Spirit.

Boeing spun off Spirit, which is based in Wichita, Kansas, and not related to Spirit Airlines, in 2005. In recent years, quality problems have mounted, including fuselage panels that didn’t fit together precisely enough and holes that were improperly drilled.

Spirit removed its CEO in October and replaced him with Patrick Shanahan, a former Boeing executive who served as acting defense secretary in the Trump administration.

Things seemed to be going more smoothly until the Alaska Airlines incident. Investigators said a panel used in place of an extra emergency door had been removed at a Boeing factory to let Spirit workers fix damaged rivets, and bolts that help hold the panel in place were missing after the repair job. It is not clear who removed the bolts and failed to put them back.

Spirit said in May that it was laying off about 450 workers at its Wichita plant because of a production slowdown since the January incident. Its total workforce was just over 13,000 people.

“Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems,” Shanahan said.

The acquisition’s equity value of $4.7 billion is $37.25 per share, while the total value of the deal is around $8.3 billion, which includes Spirit’s last reported net debt, the aerospace company said.

Boeing common stock will be exchanged for Spirit shares according to a variable formula that depends on a weighted average of the share price over a 15-trading-day period ending on the second day before the deal closes, Boeing said.

The companies also announced an agreement with Airbus to negotiate the purchase of Spirit assets involved with programs operated by the European aerospace firm. The Airbus agreement is set to commence when Boeing’s acquisition of Spirit is completed, the two U.S. companies said.

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Oil prices jumped nearly 2.5% on Monday, reaching their highest since April as geopolitical tensions boost supply and demand sentiment despite economic and interest rate uncertainty, and as the summer driving season kicks off in earnest, sparking hopes of higher consumption.

On Monday at 4:20 p.m. ET, West Texas Intermediate (WTI) was trading up 2.35% at $83.46, while Brent crude was up 2.05% at $86.74. 

Summer demand optimism is being further buoyed by OPEC+ supply cuts, which were extended in early June, with plans to only gradually unwind cuts through late 2025 after having to initiate deeper cuts earlier in the year due to rising American shale output and new barrels coming from offshore Guyana. The most significant output cuts will be extended well into 2025.

On the geopolitical front, concerns continue that Israel will invade Lebanon in an all-out war with Hezbollah, potentially tightening Iran-Hezbollah and Iran-Russia cooperation and cementing the alliance.

“Hezbollah and Israel seem to be drifting closer and closer to a full-scale war that runs the risk of drawing in OPEC member Iran and its Shiite allies in Iraq, Yemen and Syria,” Bob Yawger, director of energy futures at Mizuho, said in a note, as reported by Reuters.

Summer driving was likely the biggest price booster on Monday. 

“The (energy) complex is beginning this new week in strong fashion as it continues to acquire support from … increasing geopolitical risk premium related to Israel-Hezbollah tensions (and) bullish demand expectations for this month with some increased hurricane premium,” analysts at energy advisory firm Ritterbusch and Associates said in a note cited by Reuters.

The weather could also add more upward momentum to oil prices later this week, with the National Oceanic and Atmospheric Administration (NOAA) warning that Hurricane Beryl, the first of the season and a category 4, is making its way towards the Gulf of Mexico, where it is expected to hit the Yucatan Peninsula on Friday. The hurricane could potentially disrupt the oil and gas industry.

By Charles Kennedy for Oilprice.com

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Business is all about numbers, making numbers the language of business. It’s puzzling why so many job seekers make their job search harder than needed by not speaking the language of business. The most common job search advice is to use numbers to showcase what you’re capable of. However, I rarely see a resume or LinkedIn profile populated with numbers (read: evidence) that quantify responsibilities and results.

Numbers drive business decisions. Consider which department largely influences a company’s decision-makers: Accounting. Accounting deals extensively with quantified numbers, presenting management with hard numbers regarding cost allocations, revenue, production, inventory, etc., so they can make informed decisions.

Hiring is a business decision. The few job seekers who grasp—they get it—that employers speak the language of numbers know they’ll have a competitive advantage by sharing, essentially presenting evidence, results and achieved metrics throughout their resume and LinkedIn profile, resulting in a less arduous job search. Without quantifying numbers, a resume and LinkedIn profile are nothing more than opinions. Based on my experience, 95% of resumes and LinkedIn profiles are nothing more than opinions. Employers don’t hire opinions; they hire results.

Quantify what you claim. Otherwise, it’s a valueless opinion.

• Opinion: “I’m a team player.”
• Quantified: “I’m a member of an inside sales department with 12 reps. In 2023, we generated $17.5 million in revenue, exceeding our target of $16 million. My contribution was $1.8 million.”
• Opinion: “Reviewed accounting records.”
• Quantified: “Audited accounting records weekly, reducing error rates by 32% within 18 months of my start date.”
• Opinion: “Increased online sales.”
• Quantified: “Initiated a social media campaign which increased web traffic by 40%, leading to a 15% increase in online sales.”

Which statements provide information the employer can use to evaluate the candidate’s skills and experience and, therefore, are persuasive?

Today, we live in an on-demand economy. Each employee performs a labour-based service regarded as a “business unit.” An employee is either a profit center delivering measurable (keyword) value or a cost center not delivering a return for their salary—an employee you don’t want to be.

Executives and business owners tend to devalue employees who can’t quantify their performance, results, and impact on the company. As a job seeker, you must think like an executive or business owner and quantify your accomplishments. Think of yourself as a sole proprietorship business, looking for a customer rather than wanting to be an employee.

An employer invests in its workforce through salaries and benefits and has the right to expect a positive return on its investment. For this reason, I’ve always viewed my employer as my customer and, therefore, approach my work with the motivational mindset that I must keep delivering measurable value to keep my customer.

C-level or above executives with business acumen know how much each position they oversee costs, the amount of investment it absorbs, and, most importantly, what it contributes to the business. For example, a VP of Marketing will want to be able to explain, using quantified numbers, such as the increase in market share and campaign costs, to their fellow VPs and the President, CEO, and board how the company’s marketing resources (marketing staff) and investments are being utilized and contributing to profitability.

C-suite executives and higher are constantly analyzing all activities under their purview for cause and effect while also considering the business impact of reducing or eliminating certain activities. In today’s competitive environment, company executives constantly search for employees and activities that are profit distractions. With changing market dynamics and technological advancements (AI, robotics, self-checkout, automation), they can take advantage of companies are, more than ever, focused on being lean.

When writing your resume and LinkedIn profile or speaking in an interview, emphasize your cause and effect. Ask yourself: “What measurable effect did I have? What numbers (evidence) can I show that prove I supported my employer’s success?”

A sidebar: Lean management explains an emerging trend I’m seeing among employers: the growing use of independent workers. Businesses increasingly prefer to hire human capital on an as-needed basis (freelancers, third-party vendors, hire on contract), saving on salaries and eliminating having to manage employees’ rising expectations.

Job seekers talk about having “awesome talent” or “being talented” and how employers need their “talent.” Almost no job seeker ever mentions, let alone offer numbers as proof, how their “talent” makes employers money, which is why the few who do stand out with employers.

An entitlement mentality has become all too common, resulting in the job market becoming filled with job seekers who feel employers should “hire for attitude” or “give people a chance” while expecting a high salary because of their personal circumstances, as if the employer created their lifestyle. That’s not how it works.

Unless the candidate can quantify the results their talent generates and articulate how their results contribute to revenue generation and/or savings, then there’s no proof their supposed talent offers value worth paying for. Consider it this way: How do you expect an employee to know your value if you don’t provide quantifying numbers?

If you’re struggling with your job search, it’s likely because you’re not showing employers numbers that demonstrate your value.

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Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.