Boeing’s big announcement yesterday to assemble the 787-10 exclusively in North Charleston means more jobs and future expansions in the Lowcountry, according to aerospace analysts.
Saj Ahmad of Strategic AeroResearch said the huge move to not share 787-10 assembly with Puget Sound in Washington signifies Boeing’s plans to move all 787 production to South Carolina over time.
“Boeing has invested billions here — not for the sake of cash burn, but for future expansion and diversification,” Ahmad said in an email. “The 787-10 is certainly not the newest or last major Boeing jet we will see developed here. Boeing has invested for the long term — 50 to 75 years, and you will see new models eventually being born here, as well as Everett.”
Boeing said its decision came down to size. The 787-10 will be 18 feet longer than the 787-9 — too long to fit into an airplane to ferry from North Charleston to Everett, Wash.
Uresh Sheth, who runs the All Things 787 blog, said in an email that the announcement means continued expansion for Boeing South Carolina’s footprint as it delivers on rate increases. Construction has been underway for months to expand the Dreamliner campus near Charleston International Airport.
Additionally, Sheth said 787-10 certification flight testing could be performed in North Charleston. Flight tests of new Boeing jets currently take place at the Boeing Flight Test team headquarters in Seattle. If Boeing decides to test the 787-10 in South Carolina, some of its certification and testing teams will need to be relocated, Sheth said.
As Boeing plans to introduce the biggest 787 family member at Boeing South Carolina while increasing its local monthly output from three planes to five by 2016, additional job creation is a possibility, though Boeing South Carolina spokeswoman Candy Eslinger said it’s too early to discuss details. She said Boeing does not expect to see a significant number of new hires based solely on this announcement.
Sheth does not expect additional workers for the 787-10. He said more hires are likely over time to handle the production of seven planes per month by 2020.
Ahmad said more hires are inevitable, particularly to have more “hands on deck” to avoid traveled work issues and production snags like those that occurred earlier this year.
“With three 787 models in the bag, I firmly believe that this is just the start of bigger things to come,” Ahmad said.
As Boeing South Carolina grows and expands its campus with all three Dreamliner derivatives, Sheth said Everett operations will remain busy with production of the 787-8, 787-9 and 777X planes, noting they’ll “maintain a sizable staff for the 787 in Everett for a long time to come.”
Debate over union impact
Ahmad said South Carolina’s right-to-work laws, Gov. Nikki Haley’s anti-union rhetoric and the nonunionized North Charleston plant also played a huge role in securing the work for Boeing South Carolina.
“The Lowcountry has come leaps and bounds since Boeing’s arrival and they are reaping the rewards of not being in a union,” Ahmad said.
Sheth disagreed, saying the nonunion facility did not impact the decision for the 787-10 production but was likely a factor in deciding which plant would benefit from the production rate increases.
Unions have attempted to make inroads into the local facility. Earlier this year, the Society of Professional Engineering Employees in Aerospace held a meeting with Boeing employees and the International Association of Machinists and Aerospace Workers has opened an office in North Charleston.
Battles between Boeing executives and machinists leaders have been ongoing and intensifying in recent years.
The entities went head to head late last year over the 777X contract as machinists members demanded better benefits and pensions in Washington state. In response, Boeing flirted with other states, dangling the work in front of them while states competed with incentive packages. Boeing eventually nabbed $9 billion in incentives from Washington state and compromised with the union, which approved the contract to keep work there by a 51% vote.
The union and Boeing split hairs back in 2009 when Boeing decided to create a footprint in the Lowcountry and share 787 work between the sites. With the latest news that the 787-10 will not be assembled in Puget Sound, the machinists union released a statement Wednesday that said members were very disappointed, though not surprised.
“Our members have proven they are Boeing’s best chance for success for meeting production, quality and delivery expectations, on every airplane program,” Jon Holden, president of Machinists Union District Lodge 751, said in a statement. "If I could send one message to our members today, it would be this: Be proud of all you accomplish. Hold your heads high. And remember: We cower to no one."
Washington Gov. Jay Inslee echoed the union's sentiments in an emailed statement: "We wished all Boeing work was done in Washington. But today’s announcement that the 787-10 will be assembled in South Carolina is no surprise. In fact, our aerospace strategy anticipated this eventuality.”
Back in the Palmetto State, we're certain Haley is sitting in Columbia reiterating her oft-repeated mantra: "It's a great day in South Carolina."
Recent Comments