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Published June 2003
Regional
leaders vow action to meet Boeing's 7E7
site-selection criteria
By
Bryan Corliss
Herald Business Writer
Everett’s chances of becoming home to the Boeing Co.’s next new airliner are good, observers said after the company released its site-selection criteria for the 7E7 in mid-May.
After reviewing the list, “my first conclusion was Everett, “ said T.M. Sell, a professor of political economy at Highline Community College and the author of a book on Boeing. “The workers are there, the facilities are there, and costs consequently would be lower than many other alternatives.”
Snohomish County Executive Bob Drewel and other elected officials vowed to “work this as hard as it can be worked” to ensure that Boeing builds its next-generation airliner here.
“If I need to, I will build a new red barn for Boeing myself,” said U.S. Rep. Rick Larsen.
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Report:
7E7 program would have SCBJ Staff The Boeing Co.’s 7E7 program would generate about 7,500 jobs and have a total economic impact of about $1.2 billion a year for the Puget Sound region, according to a study commissioned for the Snohomish County Workforce Development Council. The report by consultant Robert Chase of Kirkland was issued prior to Boeing’s announcement that it plans to employ between 800 and 1,200 people on the 7E7 line, wherever it is located. That estimate still is preliminary, and doesn’t consider the number of people to be hired by local parts suppliers or shipping companies Boeing spokeswoman Mary Hanson said. Boeing did not participate in the study. Chase estimates that Boeing would hire 4,000 workers, and its suppliers would hire 3,500 more. That would be the initial work force needed in 2008, when Boeing plans to launch the 7E7. Those workers would earn about $600 million a year, he estimated. Their paychecks, in turn, would help support close to 13,000 other workers providing other goods and services. The combination of this direct and indirect spending would pump $1.2 billion into the regional economy, adjusted for inflation. |
Transportation issues, facilities and the cost of doing business top the list of criteria Boeing is considering as it looks at where it will build the new jet.
Final assembly of the plane will take place within the United States, the company said.
Between now and June 20, a site selection consultant hired by Boeing will take written applications from interested state economic development agencies, said company spokeswoman Mary Hanson. Boeing will choose a location by year’s end.
The site it picks will have to fulfill the set of criteria Boeing released May 16, Hanson said. That list includes:
- Suitable airport access and proximity to a seaport, rail lines and interstate highways that can handle heavy traffic between the port and the plant.
- Available land and buildings for both 7E7 final assembly and for suppliers.
- The cost of land, buildings, construction, site preparation, taxes and local government services.
In addition, Boeing said it will consider work-force issues, including the quality of local schools; environmental considerations such as severe storms or earthquakes; and community support for Boeing and other manufacturers.
The payoff for the winning location: a Boeing assembly line and 800 to 1,200 jobs, Hanson said.
Officials here said they are confident that the “E” in 7E7 does in fact stand for Everett.
“Everett stacks up pretty good against the site-selection criteria,” Larsen said.
When it comes to construction costs, Boeing’s Everett factory is the world’s largest building by volume, and “given what they’ve done with production, they could easily accommodate the 7E7 in the existing facility,” Sell said.
Boeing and the Port of Everett are working on plans for a new pier that would improve the company’s cargo-handling. Gov. Gary Locke has said he would ask for $16 million in state money to build the pier, which would be at the Mukilteo tank farm and would allow Boeing to run parts directly by rail from the waterfront to the factory.
Boeing officials have complained loudly about the region’s crowded freeways, but “a transportation fix is on the way” now that the Legislature has approved a 5-cent-a-gallon gas tax for highway improvements, said Mark Blondin, Machinists union district president.
In addition, Larsen said he is pursuing federal money dedicated to easing the flow of freight.
When it comes to work force, the Seattle area has “the deepest highly skilled labor pool in the world for aerospace,” Blondin said.
That could be a key factor, said Richard Aboulafia, an aerospace analyst with the Teal Group in Virginia. Other states will dangle tax incentives or lower labor costs, he said, but the Puget Sound area’s history as a jet-building center gives it a clear advantage.
“Low cost doesn’t mean more efficient,” he said. “There’s a balance to be struck between cost and productivity.”
U.S. Sen. Maria Cantwell said her proposed composite materials research center at the University of Washington would help “create new training opportunities so our workers can acquire even more skills.” A number of schools, including Edmonds Community College, have launched efforts toward this, the Democrat noted.
Permits wouldn’t be an issue if Boeing decided to build the plane in Everett, said Mayor Frank Anderson. Boeing and the city already have worked together on the environmental studies that would be required for the company to expand the factory.
There are a couple of criteria that need to be worked on, the officials acknowledged.
Snohomish County PUD and its suppliers need to stabilize electricity costs, Drewel said.
The Legislature needs to address Boeing’s complaints with the unemployment compensation system, Larsen said.
And the region needs to make a show of support for Boeing, several officials said.
The Regional Partnership, comprising government, business and labor leaders from around Puget Sound, said “losing the 7E7 would be a catastrophe” and called on legislators to “take bold and dramatic action that demonstrates Washington will do what it takes to win the competition to assemble the 7E7 here.”
“We can’t afford to lose, and we absolutely intend to win,” Drewel said. “I’m very confident that come June 20, we’ll not only have a competitive package, we’ll have the best package.”
© The Daily Herald Co., Everett, WA
