The business case for the Boeing Co. to locate a second 787 line in Everett, as presented to the company by Gov. Chris Gregoire last week, is a compelling one. Washington offers the highest-quality workforce, the lowest risk to the company and a reasonably competitive cost structure for aerospace manufacturing, among other strengths.
There is danger, however, in leaving the perception that the state need do nothing more. Like any business, the state must continually push to become more competitive. The other states competing for Boeing production certainly are.
We’re not calling for more tax breaks — the report presented to Boeing last week and made public on Monday enumerates the billions already directed toward aerospace companies, by the state and the city of Everett. Washington also has made significant strides in providing key training to keep our aerospace workforce on the cutting edge, and — unlike competing states like South Carolina — its unemployment insurance fund is solvent and rates have been dropping.
The key issue for Boeing’s long-term commitment to Washington likely remains labor relations, and there’s little elected leaders can say in public about that without doing more harm than good. That the governor, local elected leaders and members of the state’s congressional delegation need to be working hard behind the scenes to facilitate long-term labor peace is a given.
One business-climate improvement the governor should be pushing is workers’ compensation reform. Recent good news about the state’s business environment — Washington recently was ranked by Forbes magazine as the second best state in which to do business, up from third a year ago — coincided with the announcement of a 7.6 percent increase in workers’ comp premiums by the state Department of Labor and Industries. Especially in a recession, that’s a big hit to all industries. A report last spring by Deloitte Consulting said Washington’s workers’ comp rates put it at a competitive disadvantage in attracting aerospace employers.
The governor’s report to Boeing doesn’t get into workers’ comp reform. It should have. Pushing for moderate reforms, like establishing an option for settling injured workers’ claims so they aren’t left open for decades, would be a sensible way to benefit all employers and encourage job creation.
Establishing a second 787 line outside of Washington would be a highly risky move for Boeing. Running in place may be just as risky for Washington.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
