Officials who have been wooing the Boeing Co. say it’s too soon to say whether they have succeeded in convincing the company to base its 7E7 assembly plant in Everett.
“I know for a fact that no final decisions have been made,” said U.S. Sen. Maria Cantwell, who met with new Boeing chief executive Harry Stonecipher this week.
But analysts say Everett remains the most logical choice to build the new plane.
“The advantages of an experienced labor force, unquestionably the best geography, plenty of turf they already own, and a state government that’s future is at stake are overwhelming,” said Richard Aboulafia, an analyst with the Teal Group in Virginia.
The Seattle Times reported Friday that executives with the 7E7 program have decided to recommend that the company assemble the new jet in Everett. The report was based on information from one unnamed person within the company.
A spokeswoman for the Everett-based 7E7 design team did not confirm the report.
“No decision has been made, and no decision is going to be made until we discuss results of the site evaluation with the board,” Mary Hanson said.
She refused to confirm whether the site evaluation team had completed its work.
It’s highly likely that the board will approve the 7E7 program this month, said Bob Toomey, an RBC Dain Rausher analyst in Seattle. But a decision to base it in Everett is nowhere near as certain, he added.
“All of this is still very much open-ended,” Toomey said. “You can’t count your chickens yet here.”
Elected officials said they have heard nothing from Boeing to suggest the Seattle newspaper report is true.
“I thought it was all conjecture,” Gov. Gary Locke said at an afternoon press conference. “We’re not going to celebrate based on a headline or based on the rumor of the day.”
Washington “is still in the running,” Locke said. State officials have been meeting with Boeing’s site-selection team to clarify and refine the state’s proposal.
Locke spoke with Stonecipher and other executives this week to discuss the 7E7 and “a whole host of things,” he added.
State and local officials also continue to work on issues surrounding the state’s bid, added Everett city spokeswoman Kate Reardon.
“We are very optimistic,” she said.
However, other states are maneuvering to up the ante, the governor said. “It’s not over.”
“Boeing clearly understands our proposal,” Locke said. “We’re keeping our fingers crossed. We’re very hopeful.”
Union leaders said they have had no indications from the company about the 7E7 assembly site.
“As far as we know, no decision has been made,” Machinists union spokeswoman Connie Kelliher said. “I don’t think Boeing would be quiet about it if the decision is made.”
Boeing refuted the report in an internal memo to employees on Friday.
According to the Associated Press, Everett had higher costs than three other finalist sites in every major category aside from facilities. That included more expensive taxes, transportation, equipment and labor.
However, the 20-year, $3.2 billion tax incentive package approved by the Legislature and signed into law by Locke in June narrowed the cost differences and kept Everett competitive with the other top sites, according to the report.
The AP also reported that the assessment team was concerned about the impact on morale in the company’s Puget Sound workforce, which has been reduced by 26,000 jobs since 2001.
A third factor, according to the article, was the state’s congressional delegation, which has provided critical support for Boeing on a number of fronts, including the $22 billion air refueling tanker deal. The delegation also secured funds for a research center and job-training programs to familiarize Boeing workers with the new composite materials to be used on the 7E7.
“Boeing has to know that should they choose Everett, they have a delegation that will do everything in its power to make sure it’s successful,” said U.S. Rep. Rick Larsen, whose 2nd Congressional District includes the Boeing plant.
Aboulafia said congressional support could be a deciding factor, given the furor over the 767 tanker deal, which resulted in Monday’s resignation of Boeing chairman and CEO Phil Condit.
“They just had their necks handed to them in Washington, and Washington state politicians are among their few strong allies,” he said. It would be folly for Boeing to alienate such loyal supporters, he added.
But Seattle economist Dick Conway said simply weighing risk vs. reward makes Everett the logical choice.
Other places may offer cheaper labor, but “any cost benefits would be outweighed by the risk of going someplace else,” Conway said. “I’d be surprised if the 7E7 wasn’t built in Everett.”
Labor officials also said Everett was the logical choice.
“We hope it’s true,” said spokesman Bill Dugovich at the Society of Professional Engineering Employees in Aerospace. “It makes sense.”
Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.
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