South Carolina workers welcomed the Boeing Co. to Charleston. as Washington politicians and aerospace leaders convened today here in Lynnwood to discuss the industry’s future.
Boeing recently finalized its purchase of Vought’s 787 factory in South Carolina. Workers there celebrated the move Monday, unveiling the new “Boeing” sign on the North Charleston factory. Boeing’s Scott Fancher took part in the celebration.
Charleston and Everett are on Boeing’s short-list for a second 787 Dreamliner production line, Fancher said, according to the Charleston Regional Business Journal.
The publication quotes Fancher as saying that Boeing likely will make its decision on the second 787 line by year’s end.
Here in Lynnwood, aerospace leaders discussed Boeing’s Vought purchase and whether it will be a factor in the future of aerospace in Washington.
“Here in Washington state we have the finest aerospace workforce … that is not rhetoric it’s reality,” said Larry Brown, legislative director for the local Machinists union.
Brown said Boeing’s purchase of Vought isn’t necessarily an indicator that the company will move out of the state. Instead, Boeing was forced to buy Vought’s 787 factory because of that company’s inexperienced workforce. Boeing essentially is moving toward correcting a problem with its outsourcing model.
The Machinists were able to union some Vought workers there. But the Charleston Regional Business Journal reported that Machinists are circulating a petition to disband at the South Carolina facility.
Machinists’ Brown said he did not see this initial petition to disband the union as something that would tempt Boeing into putting the second line there.
Although Boeing’s Fred Kiga said the company’s trouble with unions isn’t the state’s only problem, he emphasized Boeing’s need to minimize labor stoppages.
But “we’re hoping we can take the risk of labor stoppages out of the equation,” Kiga said.
U.S. Rep. Norm Dicks, D-Wash., said it’s ultimately an issue for Boeing and the Machinists to sort out. Like the Machinists, he doesn’t see the Vought purchase as significant. Unlike Boeing’s Fancher, Dicks thinks Boeing won’t make a decision on the 787 second line until next year.
The future of Boeing’s aircraft production in the state has been made more significant in light of the global recession. Airlines have been cutting capacity and deferring and sometimes canceling aircraft orders.
Aerospace analyst Adam Pilarski told conference participants that this down cycle in aerospace will linger, which will force Boeing and its competitor Airbus to make additional production cuts in the next few years. Boeing has said it will slow 777 production rates but will keep its other lines’ steady.
“Trust me, Boeing will cut production next year … Airbus will do the same thing,” Pilarski said.
The “Saving Washington Aerospace” conference was hosted by Snohomish County and the Aerospace Futures Alliance. The Boeing Co. is Snohomish County’s largest employer.
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