State tries to lure 7E7 suppliers

  • Bryan Corliss / Herald Writer
  • Thursday, April 8, 2004 9:00pm
  • Business

MOUNTLAKE TERRACE — Washington state officials believe the contractors who will supply the major components for the 7E7 Dreamliner will need to build factories of their own near the Boeing Co.’s Everett plant, and they’re working to persuade them to do just that.

"We want to take the same aggressive approach we took to win the 7E7," said Martha Choe, manager of the state’s 7E7 project office. "That’s the next opportunity for this state for jobs."

Choe last year headed the state’s effort to persuade Boeing to build its new jet here. She spoke with reporters Thursday after addressing the Lynnwood Rotary Club.

Choe said her office is working with groups including the Snohomish County Economic Development Council to implement the state’s 7E7 agreement with Boeing.

Part of that includes selecting a site for the proposed new Employment Resource Center, a school near the Boeing factory where 7E7 workers can be trained to build the new airplane out of composite materials.

"We’re working with developers and community colleges to make sure we’ve taken into consideration all of the available sites," Choe said. Her office next week plans to issue a formal request for information on potential sites as a prelude to starting a bidding process.

The state also is actively courting 7E7 suppliers in an effort to persuade them to come to Washington, she said.

State and local officials believe those suppliers will need facilities close to the 7E7 assembly line. So they’re meeting with them and with Boeing to discuss the benefits of doing business in the state. Those include the tax breaks given to the entire aerospace industry as part of the 7E7 package, the availability of skilled airplane builders and the fact that much of the area around Boeing’s factory has been pre-permitted by the city of Everett for use by aerospace manufacturers.

"What we want to do is … in-source jobs to an area of expertise for the state of Washington," Choe said.

Choe said the $3.2 billion package of tax breaks given to Boeing and other aerospace companies were essential to landing the 7E7. Without it, "I do not believe we would have made it out of the starting gate," she told the Rotary Club.

State officials felt more than the 7E7 was at stake, Choe said. "Wherever the 7E7 went, there was a good chance that …. (Boeing’s future jets) would likely go to wherever the 7E7 lived."

Gov. Gary Locke set the tone for the effort when he said he’d rather do too much to win the 7E7 than not do enough and lose it, Choe said. "Win or lose, we could look our families in the eyes and know there was absolutely nothing else we could have done."

Washington also took a different approach in that it decided not to focus on competing with other states for Boeing, but rather on ways it could help Boeing beat Airbus on a worldwide basis, Choe said.

Choe also defended the decision to hire site-selection experts from Delloite Consulting to assist in preparing the state’s bid.

Delloite Consulting is a division of Delloite &Touche, Boeing’s primary auditor.

The consultants had expertise in both the aerospace industry and site-selection process after working with other states on similar deals, she said.

"We thought that kind of understanding of other states would be important for us," Choe said.

She said there was a clear "firewall" between the consultants helping prepare the state bid and the accountants who go over Boeing’s books.

Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.

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