Governor Sanford Welcomes Boeing to South Carolina COMPANY ANNOUNCES 2nd PRODUCTION LINE IN NORTH CHARLESTON
Columbia, S.C. - October 28, 2009 - Gov. Mark Sanford today issued the following statement on Boeing Company's announcement of its plan to establish a second production line for the 787 Dreamliner adjacent to the company's existing facilities in North Charleston.
"Boeing's decision to expand their presence in our state with an infusion of jobs and capital investment - the largest announcement in South Carolina history - represents not only enormously good news for our state's economy, but also a telling dividend from our state's continued efforts to better our business climate. For us, that means lowering taxes, easing regulatory burdens in our state's tort and workers' compensation systems, and keeping South Carolina a right-to-work state," Gov. Sanford said. "I'd first and foremost applaud the hardworking Boeing employees already in the Lowcountry for both their day-to-day efforts and their confidence in Boeing's management, and in the same way I'd thank Boeing - and in particular Chairman Jim McNerney - for returning that vote of confidence in our state.
"Just as the similarly monumental BMW investment catalyzed a now extensive automotive presence across South Carolina more than 15 years ago, we believe Boeing landing decisively in North Charleston will spur on an already growing aerospace hub in our state. Also just like BMW, Roche, or the Global Aeronautica investment that led to Boeing's foothold in South Carolina only four years ago, this project required a team effort from dedicated leaders in both the private and public sectors. Accordingly, I'd single out a few heroes in this process:
"First, I'd offer our and the state's appreciation to Commerce Secretary Joe Taylor and Senator Hugh Leatherman, who worked side-by-side on this matter, and whose work was complemented by Jack Ellenburg and Daniel Young. Legislative leadership was similarly vital - and decisive - in Boeing's commitment to South Carolina, and accordingly, I'd especially credit Senate President Pro Tempore Glenn McConnell and Speaker Bobby Harrell, along with Senator Leatherman, for the legislative yeoman's work they've done. I would also thank people at the local level like David Ginn, Steve Dykes and Heyward Horton. Lastly, but certainly not least, I'd give real credit to U.S. Senator Lindsey Graham for his invaluable efforts along the way. With all that said, we look forward to welcoming the Boeing team to South Carolina."
Wednesday, October 28, 2009
Boeing talks fall apart; S.C. likely to get 787 line
The Seattle Times
October 28, 2009
Discussions between the Machinists union and Boeing over the second 787 production line for Everett are effectively dead, according to a person familiar with the negotiations.
Boeing now appears close to choosing Charleston, S.C., as the location of the second line. The person close to the negotiations said an announcement could come within days.
Boeing management has turned down further talks over the potential 10-year no-strike agreement the company had sought, the person said.
"The union wants to continue talking," said this source, who is not aligned with the union. "The Boeing Co. does not want to talk any further.
"The company is fairly close to being done, if not done already," the person said.
Boeing spokespeople could not be reached for comment late Tuesday.
Last week, company negotiators asked for a "best and final offer" from the International Association of Machinists (IAM). The company wasn't satisfied with the union proposal and talks stalled.
U.S. Sen. Patty Murray, D-Wash., intervened over the weekend, talking to each side separately and acting as a go-between, her office confirmed. Gov. Chris Gregoire and Aaron Reardon, Snohomish County executive, also made calls to both sides and tried to encourage compromise.
That led to further direct talks Saturday between Rich Michalski, the IAM's general vice president, and Tim Keating, Boeing's senior vice president for government operations.
In those talks, Michalski assured Keating the union was willing to give more than it previously had offered, and the union thought a deal was attainable, said the person familiar with the negotiations.
It's not known exactly how far the union had moved in its offer to the company since last week, when it sought an extended series of predetermined wage increases as part of a no-strike agreement.
The Boeing board met Monday and decided to postpone a decision by at least a few days.
Meanwhile, in a special session of the South Carolina Legislature Tuesday, the Senate Finance Committee approved a lavish incentive package for Boeing if it chooses Charleston.
The proposed legislation, which does not mention Boeing by name, includes $170 million in upfront grants for startup costs, plus multiple tax breaks that would be worth tens of millions of dollars more.
The proposed legislation assumes the company will invest $750 million and create 3,800 new jobs in South Carolina within seven years — if it doesn't create that many jobs, it doesn't get any of the money.
That surprisingly large number suggests that if Charleston does win the second 787 line, Boeing will expand there quickly and add substantial work beyond the 787.
"That provision would not have been made up," Otis Rawl, chief executive of the South Carolina Chamber of Commerce, said in an interview Tuesday. "That came from the entity that's looking at the state. It's the number they anticipate creating."
Rawl said the incentives "go beyond what's normally offered."
"We hope that we create an environment where they want to be here for more than what we've talked about," Rawl said.
"We're doing everything we can to be in the game," he said. "We're putting $170 million on the table."
That's just the upfront money for infrastructure, buildings, equipment and training.
Other significant tax breaks mean Boeing won't have to pay sales tax on computer equipment, on building construction materials or on the aviation fuel it uses in test flights and aircraft delivery flights.
Under another provision, it will have virtually no corporate income-tax liability in the state for five years.
One advantage South Carolina has over Washington state in designing this package is that it is bidding purely for additional work that otherwise wouldn't exist, while Washington state is arguably trying to preserve existing jobs into the future.
Since a 787 line in Charleston would increase state revenue from payroll and sales taxes on the new work force and from an expected boost to the economy, Rawl said that over time it "will more than offset" the money South Carolina uses to woo Boeing.
Rawl said he expects the Legislature to pass the Finance Committee measure in special session today.
South Carolina officials are immensely secretive about economic-development-incentive negotiations.
Even now, with an incentive bill including a sales-tax break on jet fuel for test flights just a day shy of passage, Rawl did not name Boeing but referred only to "the entity that we both know we are talking about."
"It'll be off to the races tomorrow, pretty much. Everything will be done," Rawl said.
"This economic-development package, along with the decertification of the union in North Charleston, gives the entity all the indicators they need, I hope."
The person close to the talks between the union and the company said hope is fading fast for Washington state.
"The sun is certainly setting," he said.
October 28, 2009
Discussions between the Machinists union and Boeing over the second 787 production line for Everett are effectively dead, according to a person familiar with the negotiations.
Boeing now appears close to choosing Charleston, S.C., as the location of the second line. The person close to the negotiations said an announcement could come within days.
Boeing management has turned down further talks over the potential 10-year no-strike agreement the company had sought, the person said.
"The union wants to continue talking," said this source, who is not aligned with the union. "The Boeing Co. does not want to talk any further.
"The company is fairly close to being done, if not done already," the person said.
Boeing spokespeople could not be reached for comment late Tuesday.
Last week, company negotiators asked for a "best and final offer" from the International Association of Machinists (IAM). The company wasn't satisfied with the union proposal and talks stalled.
U.S. Sen. Patty Murray, D-Wash., intervened over the weekend, talking to each side separately and acting as a go-between, her office confirmed. Gov. Chris Gregoire and Aaron Reardon, Snohomish County executive, also made calls to both sides and tried to encourage compromise.
That led to further direct talks Saturday between Rich Michalski, the IAM's general vice president, and Tim Keating, Boeing's senior vice president for government operations.
In those talks, Michalski assured Keating the union was willing to give more than it previously had offered, and the union thought a deal was attainable, said the person familiar with the negotiations.
It's not known exactly how far the union had moved in its offer to the company since last week, when it sought an extended series of predetermined wage increases as part of a no-strike agreement.
The Boeing board met Monday and decided to postpone a decision by at least a few days.
Meanwhile, in a special session of the South Carolina Legislature Tuesday, the Senate Finance Committee approved a lavish incentive package for Boeing if it chooses Charleston.
The proposed legislation, which does not mention Boeing by name, includes $170 million in upfront grants for startup costs, plus multiple tax breaks that would be worth tens of millions of dollars more.
The proposed legislation assumes the company will invest $750 million and create 3,800 new jobs in South Carolina within seven years — if it doesn't create that many jobs, it doesn't get any of the money.
That surprisingly large number suggests that if Charleston does win the second 787 line, Boeing will expand there quickly and add substantial work beyond the 787.
"That provision would not have been made up," Otis Rawl, chief executive of the South Carolina Chamber of Commerce, said in an interview Tuesday. "That came from the entity that's looking at the state. It's the number they anticipate creating."
Rawl said the incentives "go beyond what's normally offered."
"We hope that we create an environment where they want to be here for more than what we've talked about," Rawl said.
"We're doing everything we can to be in the game," he said. "We're putting $170 million on the table."
That's just the upfront money for infrastructure, buildings, equipment and training.
Other significant tax breaks mean Boeing won't have to pay sales tax on computer equipment, on building construction materials or on the aviation fuel it uses in test flights and aircraft delivery flights.
Under another provision, it will have virtually no corporate income-tax liability in the state for five years.
One advantage South Carolina has over Washington state in designing this package is that it is bidding purely for additional work that otherwise wouldn't exist, while Washington state is arguably trying to preserve existing jobs into the future.
Since a 787 line in Charleston would increase state revenue from payroll and sales taxes on the new work force and from an expected boost to the economy, Rawl said that over time it "will more than offset" the money South Carolina uses to woo Boeing.
Rawl said he expects the Legislature to pass the Finance Committee measure in special session today.
South Carolina officials are immensely secretive about economic-development-incentive negotiations.
Even now, with an incentive bill including a sales-tax break on jet fuel for test flights just a day shy of passage, Rawl did not name Boeing but referred only to "the entity that we both know we are talking about."
"It'll be off to the races tomorrow, pretty much. Everything will be done," Rawl said.
"This economic-development package, along with the decertification of the union in North Charleston, gives the entity all the indicators they need, I hope."
The person close to the talks between the union and the company said hope is fading fast for Washington state.
"The sun is certainly setting," he said.
Tuesday, October 27, 2009
Good Signs for S.C. Economy
Tuesday, October 27, 2009
Persisting bad news on the jobless front in South Carolina was tempered last week by our report that North Charleston has made the final two sites for Boeing's new 787 factory. The decision, expected by the end of next week, could mean hundreds of new jobs. According to some estimates, it could even mean thousands.
While the community awaits Boeing's decision, other developments this year suggest that state officials have gotten their act together on economic development, despite last week's sad tidings that South Carolina's unemployment rate rose slightly in September to a grim 11.6 percent.
The latest big catch came on Oct. 7 when Red Ventures, an Internet marketing and sales company, announced its plan to expand its operations and locate its headquarters in Lancaster County. That new operation will bring more than 1,000 new jobs to the state -- the third 1,000-job announcement by the S.C. Department of Commerce this year.
Locally, Scientific Research Corporation, an advanced engineering company, two weeks ago announced its plan to expand its operations in North Charleston, adding 300 jobs over the next five years. A week earlier, TBC Corporation (TBC) said it would develop a Tire Kingdom distribution center in Berkeley County, creating up to 100 jobs.
And earlier this month in the Upstate, BMW added another shift -- and about 700 jobs -- to its Greer production facility.
So Commerce Department Secretary Joe Taylor has fair grounds for seeing positive momentum building. He recently told us: "It's part of a cycle, like a wheel turning. It's going to be a really good fall."
He said South Carolina is well positioned to compete for new businesses thanks to increasingly effective teamwork by elected officials and a variety of "business friendly" advantages, including relatively low taxes, fuel costs and delivery costs, and tort and worker's comp reforms.
Mr. Taylor cited Charleston's deep channel port as a critical edge and called the recent hiring of Jim Newsome as executive director of the State Ports Authority "an enormous statement" that should advance the cause.
Maersk, the world's largest shipping company, made a positive statement of its own about our port's direction last week by reversing an earlier decision to leave Charleston at the end of 2010. Instead, the Danish company and the SPA signed a new contract that will run through 2014.
Such marketplace victories and Mr. Taylor's upbeat outlook make our state's economic prospects sound good.
But that 11.6 percent unemployment rate still sounds awful. So does the shortfall in the state's unemployment fund. The state has been forced to borrow nearly $1 billion from the federal government.
And the blundering S.C. Employment Security Commission is responsible for a debacle of major proportions. The agency's ineptness caused a gap in jobless payments that could affect more than 120,000 unemployed South Carolinians.
The Legislature will meet in special session today to restore emergency jobless benefits, funded under federal stimulus legislation.
Meanwhile, doesn't the possible impeachment of Gov. Mark Sanford undermine the state's economic development mission by creating a severe conflict between the legislative and executive branches?
Mr. Taylor, ever the optimist, replied: "Not a bit."
He praised the continuing -- and collaborative -- job-seeking efforts of the governor and legislative leaders, including House Speaker Bobby Harrell and Senate Finance Committee Chairman Hugh Leatherman: "When it comes to recruiting a business that will make capital investment in South Carolina and bring jobs to South Carolina, all politics go away."
So before succumbing to despair over South Carolina's economic plight, fairly consider the accumulating evidence of jobs headed our way -- and Secretary Taylor's contagious enthusiasm that they will soon lead to better economic days.
Persisting bad news on the jobless front in South Carolina was tempered last week by our report that North Charleston has made the final two sites for Boeing's new 787 factory. The decision, expected by the end of next week, could mean hundreds of new jobs. According to some estimates, it could even mean thousands.
While the community awaits Boeing's decision, other developments this year suggest that state officials have gotten their act together on economic development, despite last week's sad tidings that South Carolina's unemployment rate rose slightly in September to a grim 11.6 percent.
The latest big catch came on Oct. 7 when Red Ventures, an Internet marketing and sales company, announced its plan to expand its operations and locate its headquarters in Lancaster County. That new operation will bring more than 1,000 new jobs to the state -- the third 1,000-job announcement by the S.C. Department of Commerce this year.
Locally, Scientific Research Corporation, an advanced engineering company, two weeks ago announced its plan to expand its operations in North Charleston, adding 300 jobs over the next five years. A week earlier, TBC Corporation (TBC) said it would develop a Tire Kingdom distribution center in Berkeley County, creating up to 100 jobs.
And earlier this month in the Upstate, BMW added another shift -- and about 700 jobs -- to its Greer production facility.
So Commerce Department Secretary Joe Taylor has fair grounds for seeing positive momentum building. He recently told us: "It's part of a cycle, like a wheel turning. It's going to be a really good fall."
He said South Carolina is well positioned to compete for new businesses thanks to increasingly effective teamwork by elected officials and a variety of "business friendly" advantages, including relatively low taxes, fuel costs and delivery costs, and tort and worker's comp reforms.
Mr. Taylor cited Charleston's deep channel port as a critical edge and called the recent hiring of Jim Newsome as executive director of the State Ports Authority "an enormous statement" that should advance the cause.
Maersk, the world's largest shipping company, made a positive statement of its own about our port's direction last week by reversing an earlier decision to leave Charleston at the end of 2010. Instead, the Danish company and the SPA signed a new contract that will run through 2014.
Such marketplace victories and Mr. Taylor's upbeat outlook make our state's economic prospects sound good.
But that 11.6 percent unemployment rate still sounds awful. So does the shortfall in the state's unemployment fund. The state has been forced to borrow nearly $1 billion from the federal government.
And the blundering S.C. Employment Security Commission is responsible for a debacle of major proportions. The agency's ineptness caused a gap in jobless payments that could affect more than 120,000 unemployed South Carolinians.
The Legislature will meet in special session today to restore emergency jobless benefits, funded under federal stimulus legislation.
Meanwhile, doesn't the possible impeachment of Gov. Mark Sanford undermine the state's economic development mission by creating a severe conflict between the legislative and executive branches?
Mr. Taylor, ever the optimist, replied: "Not a bit."
He praised the continuing -- and collaborative -- job-seeking efforts of the governor and legislative leaders, including House Speaker Bobby Harrell and Senate Finance Committee Chairman Hugh Leatherman: "When it comes to recruiting a business that will make capital investment in South Carolina and bring jobs to South Carolina, all politics go away."
So before succumbing to despair over South Carolina's economic plight, fairly consider the accumulating evidence of jobs headed our way -- and Secretary Taylor's contagious enthusiasm that they will soon lead to better economic days.
Friday, October 23, 2009
Charleston, S.C. boasts upscale homes, high school with aerospace class
Seattle Times
October 23, 2009
CHARLESTON, S.C. — If Boeing chooses Charleston over Everett for its second 787 assembly line, a lot of engineers and managers may have to move there. Will they find decent houses and schools? Will their quality of life take a dive?
If your Southern stereotypes run to rednecks and rural poverty, think again.
A likely neighborhood for white-collar Boeing employees is suburban Mount Pleasant. Neighbors there might well include Air Force officers from the C-17 base near the Boeing plant.
Mike Bunker, director of operations at the Global Aeronautica plant that assembles the 787's central fuselage, this summer bought a 3,600-square-foot house in the particularly tony Park West enclave of Mount Pleasant.
He paid $469,000, according to the local Post & Courier newspaper, which publishes details of every Charleston real-estate transaction over $150,000.
The public high school that serves Mount Pleasant and nearby neighborhoods is Wando High, an imposing 5-year-old building set among lawns and trees. Last month, the principal, Lucy Beckham, was named national high-school principal of the year by an association of peers.
Though the school houses 3,300 students, its corridors were hushed on a recent visit. A female student in a blue military uniform was the only one outside a classroom. With so many Air Force families in the area, there's a thriving ROTC program for about 300 kids.
Mike Bunker should be really interested in teacher David Roemer's aerospace-engineering class. Roemer, formerly an engineer, wants to arrange internships at the 787 plants.
Using computer-aided design software, students design airfoils and other structures. Then they press "print."
The room has a "3-D printer" resembling a small oven. It creates a three-dimensional model of the design by extruding molten plastic and applying it layer by layer until the structure is complete.
The classroom has a small wind-tunnel — a Jetstream 500 that generates sustained wind speed up to 80 mph. Inside sits an airfoil designed by one of the students.
Cody Matthews, 16, is a junior in the class. His dad, who spent 26 years as an aviation mechanic in the Navy, is now a quality manager at the Boeing Charleston plant.
"I've been around jets my whole life," said Matthews. "I want to go to tech school for engines and things and start working on planes."
Lexy Bridges, 16, one of only two girls in the class of 21, has set her sights on NASA. But like Matthews, she'd be very happy if she ended up at Boeing.
"It's the whole flight thing I'm really into," said Bridges.
October 23, 2009
CHARLESTON, S.C. — If Boeing chooses Charleston over Everett for its second 787 assembly line, a lot of engineers and managers may have to move there. Will they find decent houses and schools? Will their quality of life take a dive?
If your Southern stereotypes run to rednecks and rural poverty, think again.
A likely neighborhood for white-collar Boeing employees is suburban Mount Pleasant. Neighbors there might well include Air Force officers from the C-17 base near the Boeing plant.
Mike Bunker, director of operations at the Global Aeronautica plant that assembles the 787's central fuselage, this summer bought a 3,600-square-foot house in the particularly tony Park West enclave of Mount Pleasant.
He paid $469,000, according to the local Post & Courier newspaper, which publishes details of every Charleston real-estate transaction over $150,000.
The public high school that serves Mount Pleasant and nearby neighborhoods is Wando High, an imposing 5-year-old building set among lawns and trees. Last month, the principal, Lucy Beckham, was named national high-school principal of the year by an association of peers.
Though the school houses 3,300 students, its corridors were hushed on a recent visit. A female student in a blue military uniform was the only one outside a classroom. With so many Air Force families in the area, there's a thriving ROTC program for about 300 kids.
Mike Bunker should be really interested in teacher David Roemer's aerospace-engineering class. Roemer, formerly an engineer, wants to arrange internships at the 787 plants.
Using computer-aided design software, students design airfoils and other structures. Then they press "print."
The room has a "3-D printer" resembling a small oven. It creates a three-dimensional model of the design by extruding molten plastic and applying it layer by layer until the structure is complete.
The classroom has a small wind-tunnel — a Jetstream 500 that generates sustained wind speed up to 80 mph. Inside sits an airfoil designed by one of the students.
Cody Matthews, 16, is a junior in the class. His dad, who spent 26 years as an aviation mechanic in the Navy, is now a quality manager at the Boeing Charleston plant.
"I've been around jets my whole life," said Matthews. "I want to go to tech school for engines and things and start working on planes."
Lexy Bridges, 16, one of only two girls in the class of 21, has set her sights on NASA. But like Matthews, she'd be very happy if she ended up at Boeing.
"It's the whole flight thing I'm really into," said Bridges.
Thursday, October 22, 2009
Boeing Acquires Alenia North America’s Interest in Global Aeronautica
SEATTLE, Dec. 22, 2009 – Boeing [NYSE: BA] said today it has acquired Alenia North America’s half of Global Aeronautica, LLC, a South Carolina fuselage subassembly facility for Boeing’s 787 Dreamliner, and is now the sole owner of that entity. Alenia North America is a subsidiary of Italy’s Alenia Aeronautica, a Finmeccanica company.
Operationally, Boeing will integrate the Global Aeronautica facility with the rest of Boeing’s organization in North Charleston, S.C.
“The Boeing Charleston site is critical to the success of the 787 program,” said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. “Through this acquisition, Boeing benefits by joining together two solid operations – including their talented employees and state-of-the-art facilities – into one Boeing team. Ultimately, we believe integration of the site will increase productivity for the 787 program and allow us to maintain our long-term competitiveness.”
“We are proud of the major contribution we have made over the past four years through our partnership in Global Aeronautica to the 787 program and to the state of South Carolina,” said Giuseppe Giordo, president and CEO of Alenia North America. “We are confident that the foundation we have developed will continue to flourish as it is integrated into Boeing Charleston.”
The acquisition was effected through a wholly owned subsidiary of Boeing; other terms were not disclosed.
“We look forward to integrating the employees of both operations into one team in North Charleston, along with continuing our partnership with Alenia on the 787 program,” said Albaugh.
Global Aeronautica, LLC, began in 2004 when Alenia North America and Vought Aircraft Industries formed a 50/50 joint venture in support of the Boeing 787 Dreamliner. In 2008, Boeing purchased Vought’s interest in Global Aeronautica, making the company a 50/50 joint venture between Alenia North America and Boeing.
Global Aeronautica’s integration entails the joining of the mid-fuselage sections, the installation and testing of associated elements, and the application of surface finishes to more than 60 percent of the 787’s fuselage. Global Aeronautica sits adjacent to the Boeing Charleston site and shares a 240-acre (97-hectare) campus.
Operationally, Boeing will integrate the Global Aeronautica facility with the rest of Boeing’s organization in North Charleston, S.C.
“The Boeing Charleston site is critical to the success of the 787 program,” said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. “Through this acquisition, Boeing benefits by joining together two solid operations – including their talented employees and state-of-the-art facilities – into one Boeing team. Ultimately, we believe integration of the site will increase productivity for the 787 program and allow us to maintain our long-term competitiveness.”
“We are proud of the major contribution we have made over the past four years through our partnership in Global Aeronautica to the 787 program and to the state of South Carolina,” said Giuseppe Giordo, president and CEO of Alenia North America. “We are confident that the foundation we have developed will continue to flourish as it is integrated into Boeing Charleston.”
The acquisition was effected through a wholly owned subsidiary of Boeing; other terms were not disclosed.
“We look forward to integrating the employees of both operations into one team in North Charleston, along with continuing our partnership with Alenia on the 787 program,” said Albaugh.
Global Aeronautica, LLC, began in 2004 when Alenia North America and Vought Aircraft Industries formed a 50/50 joint venture in support of the Boeing 787 Dreamliner. In 2008, Boeing purchased Vought’s interest in Global Aeronautica, making the company a 50/50 joint venture between Alenia North America and Boeing.
Global Aeronautica’s integration entails the joining of the mid-fuselage sections, the installation and testing of associated elements, and the application of surface finishes to more than 60 percent of the 787’s fuselage. Global Aeronautica sits adjacent to the Boeing Charleston site and shares a 240-acre (97-hectare) campus.
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