In addition to abandoning the Dreamlifter center, Boeing has already transferred to South Carolina all the tooling for making the smallest Dreamliner model, the 787-8.
A Boeing spokesperson said Monday this was done following the end of local 787 final assembly work in February.
Until then, the North Charleston assembly plant had built only the larger 787-9s and 787-10s.
Revelation wrote:Now it seems they are selling the Dreamlifter facility at PAE to FedEx:
Seems to be yet another sign that they don't see themselves doing new projects at PAE.
iamlucky13 wrote:1) PAE is not being considered for NMA.
2) It is more cost effective to be paid by FedEx for the current buildings, cease lease payments to the airport and maintenance costs, and build a new operations center later.
3) Fuselage and wing fabrication will both occur at the final assembly site.
4) Part transportation will not be dependent on the Dreamlifters - rail or water-born transportation has been determined viable instead.
ssteve wrote:You'd think they'd want to keep unnecessary risks low for a new program, and you can't convince me that a greenfield facility will do that if it's not within a short drive of an existing one.
Noshow wrote:They have a super developed infrastructure in WA with production, management, research and suppliers aligned and then instead of harvesting what they have they move to new places? Is this intended to milk WA for new tax reductions again or are they serious about shrinking even more? Do they want to move to SC with everything? How expensive is this going to be?
In the not so distant future a lot will change with aircraft manufacturing with big investments needed. Keeping the well established infrastructure going might not be wrong. There will be enough risks and costs coming. Keep the powder dry for the best products.
ScottB wrote:I don't think Boeing wants tax breaks again from Washington State; those were the basis for Airbus's complaint to the WTO. But it wouldn't be a huge surprise if they were to shift manufacturing to a state without a B&O tax or weaker support for unions.
luckyone wrote:ScottB wrote:I don't think Boeing wants tax breaks again from Washington State; those were the basis for Airbus's complaint to the WTO. But it wouldn't be a huge surprise if they were to shift manufacturing to a state without a B&O tax or weaker support for unions.
Ultimately only Boeing accountants know this for sure, but I would wager that the B&O tax is a talking point for lip service only. The Washington B&O tax rate is 0.484%. Washington does not tax corporate profits nor personal income tax (South Carolina does, have fun with that if you relocate there from Washington with a high dollar Boeing salary). They do, however, tax gross receipts. So does the State of Texas (and Nevada and Ohio for that matter), which doesn't appear to be stopping companies from relocating there in droves, including manufacturers such as Tesla and Toyota (though I don't believe Toyota operates any manufacturing capacity in Texas, but Tesla certainly does). South Carolina taxes corporate profits at 5%, and Boeing's corporate headquarters is located in Illinois, which can tax profits as high as 9.5%, assuming that there isn't some deal being struck with either state. So long story short, this isn't about state taxes.
Property taxes, on the other hand, may be a more likely culprit. As the Puget Sound area has grown, property values have gone up with that growth--though Everett is a rather dumpy area in my opinion and its real estate values are comparatively lower to the areas around it, which could mean its ripe for investment. A manufacturing facility surrounded by ever-growing real estate resulting in relocation of said manufacturing facility is not a new scenario. We've been watching manufacturing jobs flow like water from higher to lower cost areas. This, coupled with Washington's unionized work force are much more likely influence Boeing's departure from the Puget Sound than any tax levied on Boeing's profits. It will be interesting to see what happens to the Charleston area after 40 years of growth
I only partially agree with you that Everett is dumpy. I agree the Casino Road area and Highway 99 areas aren’t the best. But Mukilteo is fairly upscale and the high-rent district. Parts of Everett are also upscale.
traindoc wrote:Toyota does indeed manufacture vehicles in Texas. Their Tundra PU truck is exclusively manufactured in San Antonio.
Noshow wrote:So it has to be cheap. Mhhh.
Why not move everything to Boeingladesh then?
Phil was just a bumbling fool, but I think he meant well. When I say “corrupt”, I mean people like Harry or Jim McNerney who seemed to make decisions based on their own egos or to line their own pockets with money, rather than what was best for the health of the company.
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