I’m at the “Saving Washington Aerospace” conference this morning in Lynnwood. I’ll provide updates throughout the day either on this blog or on Heraldnet.
The conference is just getting underway with a welcome from Snohomish County Executive Aaron Reardon.
The conference was in the works before the Boeing Co. announced its purchase last month of Vought’s 787 facility in South Carolina.
“That’s about as far as we want South Carolina to go with the Boeing Co.,” Reardon said
But Boeing’s announcement has generated increased interest in the conference and in the topic of keeping the aerospace industry in the state. Politicians like Reardon worry that Boeing’s step is its first in moving out of the state.
“Whether we believe we’re in a competition with the rest of the country is irrelevant … the rest of the country thinks it’s in a competition with us,” Reardon said.
Next up, Rep. Norm Dicks …
UPDATE 11:15 a.m.
Rep. Norm Dicks, D-Wash., spoke about the conflict between the Boeing Co. and its unions.
Although this region offers a high skilled workforce, Boeing said it can’t afford labor strikes like last fall’s. Labor is likely a top consideration in the company’s decision where it puts a second 787 line.
Keeping in mind some comments made by Machinists’ national president last week, Dicks said he won’t butt into talks between the Machinists and Boeing.
But he did have a few comments:
“The people of Washington have a stake in this.”
“Don’t let the past decide the future …”
And, “it is my strongest hope that they reach an agreement quickly .”
UPDATE 11:35 a.m.
Adam Pilarski, with analyst with Avitas, talked about the large cycles in the aviation industry.
Airlines historically either have placed orders for more planes than they need or fewer airplanes than they need. That puts Boeing and Airbus in the position of increasing or decreasing jet production dramatically.
Pilarski sees this cycle as a fairly deep one that will take a while to get through.
Therefore, he said, “trust me, Boeing will cut production next year … Airbus will do the same thing.”
Boeing has indicated it would cut 777 production next year, but has said it won’t make other production cuts.
On outsourcing, Pilarski said:
“You can outsource anything, it doesn’t mean you will outsource anything.”
Pilarski’s advice on competition:
“You don’t have to be lowest cost, you have to be most efficient.”
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