Published: Sunday, November 8, 2009
REGIONAL ECONOMY
Aerospace: Are we in or out?
As the initial shock of Boeing’s South Carolina decision wears off, some unprecedented soul-searching must follow.
The region’s largest employer and main economic engine is playing by 21st century rules. Loyalty is an anachronism. Competitive pressures — chiefly costs — and shareholder returns trump all else. Playing one state, or nation, off another for the best deal is the way business is done.
Of course, none of this should come as news. Blame globalization, and the nature of private enterprise. But as a region, we’ve remained in at least a partial state of denial regarding these cold, hard realities. Now that we have an undeniable sense of the competition, we must decide whether we’re in or out.
Going all in doesn’t mean giving away the store, nor engaging in a race to the bottom by offering ridiculous tax breaks or settling for unlivable wages. To the contrary, a state with the resources to make meaningful and effective investments in education and infrastructure, and a world-class workforce that’s fairly compensated, are two key pieces to the competitiveness puzzle.
If the regional consensus is that we must retain a vibrant aerospace sector, however, plenty of work needs to be done. The state’s business climate can and must become more competitive. Being near the top of state rankings for workers’ compensation and unemployment insurance costs isn’t conducive to job creation. We shouldn’t strive to be near the bottom, either — just more competitive.
Labor, which justifiably feels it was misled by Boeing in recent weeks, must overcome short-term anger and take a long-term view. It’s not too early for union leaders to sit down with the company and discuss how to achieve the labor peace Boeing clearly demands. Strikes have become far too destructive, for all sides. A new, constructive relationship must be forged if aerospace jobs are to be a significant part of our economic future.
Many organized efforts are afoot to support a strong aerospace sector in our region. Coordinating them into a strategically effective whole will be crucial to convincing Boeing that Puget Sound remains the best place in the world to build airplanes. So will definitive action by labor, state lawmakers and the governor’s office.
The goal is clear: The next time Boeing makes a location decision, Washington must be the winner.
The region’s largest employer and main economic engine is playing by 21st century rules. Loyalty is an anachronism. Competitive pressures — chiefly costs — and shareholder returns trump all else. Playing one state, or nation, off another for the best deal is the way business is done.
Of course, none of this should come as news. Blame globalization, and the nature of private enterprise. But as a region, we’ve remained in at least a partial state of denial regarding these cold, hard realities. Now that we have an undeniable sense of the competition, we must decide whether we’re in or out.
Going all in doesn’t mean giving away the store, nor engaging in a race to the bottom by offering ridiculous tax breaks or settling for unlivable wages. To the contrary, a state with the resources to make meaningful and effective investments in education and infrastructure, and a world-class workforce that’s fairly compensated, are two key pieces to the competitiveness puzzle.
If the regional consensus is that we must retain a vibrant aerospace sector, however, plenty of work needs to be done. The state’s business climate can and must become more competitive. Being near the top of state rankings for workers’ compensation and unemployment insurance costs isn’t conducive to job creation. We shouldn’t strive to be near the bottom, either — just more competitive.
Labor, which justifiably feels it was misled by Boeing in recent weeks, must overcome short-term anger and take a long-term view. It’s not too early for union leaders to sit down with the company and discuss how to achieve the labor peace Boeing clearly demands. Strikes have become far too destructive, for all sides. A new, constructive relationship must be forged if aerospace jobs are to be a significant part of our economic future.
Many organized efforts are afoot to support a strong aerospace sector in our region. Coordinating them into a strategically effective whole will be crucial to convincing Boeing that Puget Sound remains the best place in the world to build airplanes. So will definitive action by labor, state lawmakers and the governor’s office.
The goal is clear: The next time Boeing makes a location decision, Washington must be the winner.
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