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CONTACT THE HERALD
Mike Benbow, Business Editor
benbow@heraldnet.com
 
Published: Thursday, October 29, 2009

Boeing's decision raises doubts about long-term future

In the short term, Everett could see a boost in production.

EVERETT — Is this the beginning of the end for the Boeing Co. in the Puget Sound region?

That’s the question many are asking after Boeing picked Charleston, S.C., over Everett for the site of its second 787 assembly line.

“Over the course of the next decade and a half you could see Boeing being just a shadow of itself here,” said Scott Hamilton, a local analyst with Leeham Co., referring to Washington state.

The major concern for the region is whether Boeing’s next all-new jet programs, replacements for its 737 and 777 aircraft, will follow the second line out of Washington. Hamilton believes that Boeing could make a decision on the new plane programs in the 2013 to 2015 time frame.

Some local leaders say the state will need to up the ante if it hopes to convince Boeing to build those jets here.

“We can’t go along doing business as usual,” said Aaron Reardon, Snohomish County executive.

Deborah Knutson, executive director of the Economic Development Council of Snohomish County, called Boeing’s Charleston selection a “wake-up call” to the state and community. South Carolina was willing to make the effort — passing tax incentives in a special session — that Washington did to win the first 787 line in 2003, she said.

“We were just complacent,” Knutson said.

State Sen. Mike Hewitt, R-Walla Walla, suggested that state lawmakers take a hard look at a competitiveness study they funded last session.

“Washington must be leaner and meaner if we’re going to compete in this global economy,” Hewitt said.

Analyst Hamilton thinks the 2012 contract negotiations between Boeing and its unions could be key to the future of Boeing’s next airplane programs.

In the short term, Boeing’s decision on Wednesday could mean more jobs in Everett. The company will ramp up 787 work here before the Charleston site is operational. Boeing said this strategy will “ensure the successful introduction of the 787-9” the first derivative of the Dreamliner. Eventually, though, the extra capacity here will be phased out as Charleston picks up the pace.

Boeing said that the Charleston move makes the company more competitive, in turn ensuring jobs for its employees here in the Puget Sound region.

On Wednesday, however, some Boeing workers questioned how far Boeing plans to go to reduce its bottom line.

Charlie Grieser, a team leader on the 787 program, was in the Machinists hall in Everett shortly after Boeing’s announcement. He’s been with the union for 31 years and sees Boeing management, not its Machinists union, as the problem.

“I think the Boeing Co. has a long term plan to move to China, and South Carolina is just a pit stop,” Grieser said.

Reporter Amy Rolph contributed to this story.

READER COMMENTS
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(No heading)
I think it was a bad decision for the second line to go to a low income area as the quality of work will be what they pay for. Thus causing more expense than saving money.
James Brown | Oct 30, 2009 11:55 pm | 0 replies | View all | Post reply | Request removal
(No heading)
But Boeing workers are only entitled to their yearly fair raises and not what they think is a lot more because they work there. If another company had workers saying we deserve more than just our yearly raise the Boeing workers would say we pay taxes to keep the infrastructure up. So where is our share? So where is our share beyond what the fair yearly raises Boeing workers get, because without our paying taxes Boeing could not operate.
Nathan K | Oct 30, 2009 2:24 pm | 0 replies | View all | Post reply | Request removal
(No heading)
But Boeing workers are only entitled to their yearly fair raises and not what they think is a lot more because they work there. If another company had workers saying we deserve more than just our yearly raise the Boeing workers would say we pay taxes to keep the infrastructure up. So where is our share? So where is our share beyond what the fair yearly raises Boeing workers get, because without our paying taxes Boeing could not operate.
Nathan K | Oct 30, 2009 2:24 pm | 0 replies | View all | Post reply | Request removal
(No heading)
It isn't the fault of the machinists. They got pretty much exactly what they were asking for last time around. Boeing is the one that was dragging their feet. McNerney will singlehandedly sink this ship.

You pay for skilled labor. Boeing wants it cheaper, they'll get what they pay for. They're already seeing this with their vendor partners- the companies providing parts that just don't fit and don't work.

R N | Oct 29, 2009 6:50 am | 2 replies | View all | Post reply | Request removal
(No heading)
Right it is all the unions fault. Boeing has no cupability in this, they are true angels. The fact that McNerney has no alligence to the Puget Sound area & one of his first moves was to relocate corporate HQ to Chicago means nothing. The fact that it was managements ineptitude & not the strike that has caused the vast majority of delays in the 787. Let's blame the union & it's rank & file. Boeing offered the workers in North Charleston incentives to vacate the union, the workers are hoping to get raises next year, but Boeing management has said this is doubtful. In which case the interviewed workers stated, the union would be given another shot. So much for that. You folks on the outside just keep bashing the union, it is exactly what Boeing wants you to do....
Richard Duwe | Oct 29, 2009 7:49 pm | 0 replies | View all | Post reply | Request removal
oh my gd it's the baristas fault
it's not the unions fault!
the blame game is silly

brian smith | Oct 29, 2009 2:56 pm | 0 replies | View all | Post reply | Request removal
(No heading)
Boeing union machinists are ALWAYS saying its not their fault. if you guys werent go freakin greedy and always such a pain in Boeings ***...this would have never happen. They call it the Lazy B for a reason. You are always wanting more, more, more, me, me, me. You want more perks, hows this: you have a GREAT paying job with excellent medical in an economy where tens of thousands DONT!!! Stop living beyond yur means!!! There was a time and a place for unions..but nobody can deny that this union is OUT OF CONTROL!!! I am sure when you say "As a union we gave Boeing what they wanted" you were a day late and a dollar short. The union has left a bad taste in Boeings mouth one to many time. Why to go guys, you have no one to blame but yourselves!!!! GREEDY!!!!!
CT T | Oct 29, 2009 1:48 pm | 0 replies | View all | Post reply | Request removal
(No heading)
Quit going on STRIKE!! You Union people are SPOILED!!!
Hope your Happy!!

Rocco Huff | Oct 29, 2009 12:30 am | 1 replies | View all | Post reply | Request removal
The Good News
At least the new line will stay in the US, right? Unfortunate for Snohomish county workers or would-have-been workers, but still good news for the US, stockholders, and Boeing retirees like me! cool
Peter Scheldt | Oct 29, 2009 8:41 am | 0 replies | View all | Post reply | Request removal
(No heading)
You may considering firing your Union, taking the dues and putting in a savings account for the future (if any).
It will be interesting to see what happens if and when there is another strike in this area.

walter Lasher | Oct 29, 2009 3:58 am | 0 replies | View all | Post reply | Request removal

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