Friday, July 31, 2009

The continuing saga of Washington's aerospace industry

Recent news about Boeing's purchase of a 787 supplier in South Carolina and rumors that the company is considering a second assembly line there for the 787 Dreamliner has sparked worried whispers about the future of the aerospace industry in Washington.
Stop the hand-wringing, say Reps. Jeff Morris and Phyllis Gutierrez in a recent Seattle Times op-ed.
They point out that we've worked hard to make Washington an international hub of the aerospace industry and state leaders are anything but complacent when it comes to ensuring we keep our strong standing.

This year, at the bill signing creating the new Aerospace Council to help bolster our industry, Gov. Gregoire stated:
"Washington is the best place in the world to build airplanes, primarily due to the robust aerospace infrastructure we have in place and our highly skilled, productive work force. Our advantages also include a competitive aerospace tax environment, strong aerospace research and development capacity, and this state's unparalleled quality of life… But in today's challenging times and with our faltering economy, we need to do more to stay ahead. The aerospace council is designed to ensure we are doing all we can in a sustained way to be even more competitive."
Gov. Gregoire also created a subcabinet position in her administration that will help guide us towards a long partnership with our state’s aerospace industry.
On our end at the Legislature, our state has collaborated with aerospace businesses, both big and small, to foster a new generation of highly skilled workers, invest in a state infrastructure that keeps our commerce moving, reduce the tax burden on their products, and streamline the permitting process.
House Democrats have pushed for and supported policies that help ensure Washington's aerospace industry remains strong and competitive.

The hard work has paid off. Despite some naysayers and critics, several business publications, academic studies, and public policy organizations have ranked Washington as a one of the best states to open and operate a business for several years now consistently.
Washington state has a proud history of building the world's best airplanes, whether it was the bombers that won World War II, the jetfighters defending America today, or the airplanes moving millions of people from every corner of the planet. Our aerospace workers are the best in the business, without a doubt. But they, and the businesses that depend on these highly skilled workers, rely on our state’s support to remain the best.
And while Boeing is certainly the flagship airplane manufacturer that’s shaped our region, it's not alone. There are myriad other aerospace businesses in Washington that have been attracted to our region, making our state the hub when it comes to parts suppliers, crafts persons, importers, exporters – all of the businesses it takes to keep the industry flying high, as they say.
But anyone in the business will tell you, it’s a tough one. Despite what one might think, studies show that the commercial airline industry is not a big moneymaker. On the contrary, over the history of commercial flight, it’s just barely in the black. That adds a lot of volatility to the market for airplanes, which is a reality our state has had to live with through Boeing’s boom times and busts.
In addition, Boeing and other local manufacturers are facing stiffer competition from foreign manufacturers than ever before, most notably Airbus headquartered in France.
We must remember that fortunes can shift quickly and that sometimes the grass can seem greener elsewhere. That is why we remain steadfastly devoted to ensuring our aerospace industry’s legacy as the world’s best.

(Photo from markjhandel)

Apture