By Warren Wise
The Post and Courier
Friday, June 4, 2010
Boeing Co. is slightly ahead of schedule on construction of its $750 million assembly plant in North Charleston, where it is building a second production line of its hot-selling 787 jet.
The 1.2 million-square-foot factory is expected to open on time, in July 2011, said Marco Cavazzoni, Boeing's vice president and general manager of final assembly and delivery at the company's North Charleston site.
Speaking at the annual meeting of the Charleston Metro Chamber of Commerce on Thursday, Cavazzoni said a realignment of South Aviation Avenue near the plant site is set to begin in September. The so-called topping out of the steel frame should be completed by October, and the shell of the new building likely will be finished in February, he said.
The first delivery of a completed 787 Dreamliner is set for the first quarter of 2012.
"The first delivery will be a really, really, really big party," Cavazzoni said. "We will shape the perception of South Carolina as an aerospace center."
The new assembly plant will open with 1,000 workers and eventually employ at least 3,800.
Boeing has received 866 orders for the 787 Dreamliner, Cavazzoni said.
The new passenger jet also is being assembled in Everett, Wash. Boeing chose North Charleston last year as the site to duplicate its West Coast 787 operations.
Friday, June 4, 2010
Tuesday, June 1, 2010
First on Dreamliners
By Julie Johnsson, Chicago Tribune
Tuesday, June 1, 2010
CHICAGO -- United Airlines may have been the last major U.S. carrier to order new airplanes, but its passengers would be among the first to experience Boeing's 787 Dreamliner if the United-Continental merger goes according to plan.
The new carrier, which would retain United's name and be run by Continental CEO Jeff Smisek, would be the launch customer in the Americas for the much-delayed but potentially game-changing 787, sources said.
If the deal is derailed, that honor would go to Continental Airlines, which said last week that it will take delivery of its first 787 in August 2011. That's about five years before United is due to receive the first of 25 Dreamliners it ordered late last year.
Billed as ground-breaking, the Dreamliner is designed to burn 20 percent less fuel than similar midsize jets and produce 20 percent fewer emissions. Its composite frame, more flexible than conventional aluminum fuselages, allows more humidity in its passenger cabins, lessening the effects of jet lag. Major fuselage components for the 787 are made in North Charleston.
Continental is scheduled to receive six of the 25 new jets it has on order next year, giving it a jump on other North American carriers with global ambitions. Continental plans to launch its first 787 service on Nov. 16, 2011, flying to Auckland, New Zealand, from Houston, the largest hub of the new carrier and the focus of its early expansion plans.
It's too early to know whether the 787s would arrive from Boeing bearing the Continental or United brand, said Continental spokesman Dave Messing.
Merging airlines typically don't begin to combine brands and repaint fleets until well after their deal closes, said aviation consultant Robert Mann. United and Continental executives expect to wrap up their deal by late 2010, provided their merger isn't subjected to lengthy scrutiny by antitrust regulators.
But it remains unknown whether the 787, more than two years late, will meet its latest deadline and perform as Boeing has promised, and the uncertainty has prompted some carriers to cancel orders or to take later deliveries after problems are ironed out.
Continental vaulted ahead of Delta Air Lines on Boeing's 787 delivery schedule after Delta gave up the early production slots that it inherited by buying Northwest Airlines, the original U.S. launch customer, sources said.
But the first planes off a manufacturer's assembly line frequently fall short of expectations, arriving heavier than anticipated. That lessens a jet's range or lowers fuel savings, analysts said.
Rumors about the 787's performance has swirled as Boeing has reinforced the jet's composite frame with metal in places, potentially increasing its weight.
"The view is it's been compromised, although nobody knows by how much," Mann said.
Boeing has conceded it had weight issues with the first few 787s, but said it is resolving those problems with significant design improvements that start with the 25th Dreamliner.
The Auckland flight, the longest in Continental's schedule, would put the new jet to an immediate test. The 7,400-mile journey appears tailor-made for Continental's 787, which will seat 228 people. That route is unlikely to draw enough passengers to consistently fill a jumbo jet, but is too long for other midsize planes.
Continental's jets will include the upgrades, said Boeing spokeswoman Lori Gunter, and should have the 787-8's maximum range of 7,650 to 8,200 nautical miles. The new Auckland route "is easily within the capabilities of the airplane," Messing added.
Delta, meanwhile, is exploring alternatives to the 787 to handle its overseas flights. Delta CEO Richard Anderson told analysts earlier this year that the Atlanta-based carrier is "technically" still a 787 customer but is "in negotiations with Boeing to figure out what's going to happen with those positions."
Some observers think Delta may be holding out for the next Dreamliner model, the 787-9, which will carry more passengers and travel longer distances.
"I suspect Delta is going to cancel or convert" its order, said aerospace blogger Jon Ostrower. He thinks Delta likely will add more Boeing 777-200LRs to its fleet.
The Post and Courier contributed to this report.
Tuesday, June 1, 2010
CHICAGO -- United Airlines may have been the last major U.S. carrier to order new airplanes, but its passengers would be among the first to experience Boeing's 787 Dreamliner if the United-Continental merger goes according to plan.
The new carrier, which would retain United's name and be run by Continental CEO Jeff Smisek, would be the launch customer in the Americas for the much-delayed but potentially game-changing 787, sources said.
If the deal is derailed, that honor would go to Continental Airlines, which said last week that it will take delivery of its first 787 in August 2011. That's about five years before United is due to receive the first of 25 Dreamliners it ordered late last year.
Billed as ground-breaking, the Dreamliner is designed to burn 20 percent less fuel than similar midsize jets and produce 20 percent fewer emissions. Its composite frame, more flexible than conventional aluminum fuselages, allows more humidity in its passenger cabins, lessening the effects of jet lag. Major fuselage components for the 787 are made in North Charleston.
Continental is scheduled to receive six of the 25 new jets it has on order next year, giving it a jump on other North American carriers with global ambitions. Continental plans to launch its first 787 service on Nov. 16, 2011, flying to Auckland, New Zealand, from Houston, the largest hub of the new carrier and the focus of its early expansion plans.
It's too early to know whether the 787s would arrive from Boeing bearing the Continental or United brand, said Continental spokesman Dave Messing.
Merging airlines typically don't begin to combine brands and repaint fleets until well after their deal closes, said aviation consultant Robert Mann. United and Continental executives expect to wrap up their deal by late 2010, provided their merger isn't subjected to lengthy scrutiny by antitrust regulators.
But it remains unknown whether the 787, more than two years late, will meet its latest deadline and perform as Boeing has promised, and the uncertainty has prompted some carriers to cancel orders or to take later deliveries after problems are ironed out.
Continental vaulted ahead of Delta Air Lines on Boeing's 787 delivery schedule after Delta gave up the early production slots that it inherited by buying Northwest Airlines, the original U.S. launch customer, sources said.
But the first planes off a manufacturer's assembly line frequently fall short of expectations, arriving heavier than anticipated. That lessens a jet's range or lowers fuel savings, analysts said.
Rumors about the 787's performance has swirled as Boeing has reinforced the jet's composite frame with metal in places, potentially increasing its weight.
"The view is it's been compromised, although nobody knows by how much," Mann said.
Boeing has conceded it had weight issues with the first few 787s, but said it is resolving those problems with significant design improvements that start with the 25th Dreamliner.
The Auckland flight, the longest in Continental's schedule, would put the new jet to an immediate test. The 7,400-mile journey appears tailor-made for Continental's 787, which will seat 228 people. That route is unlikely to draw enough passengers to consistently fill a jumbo jet, but is too long for other midsize planes.
Continental's jets will include the upgrades, said Boeing spokeswoman Lori Gunter, and should have the 787-8's maximum range of 7,650 to 8,200 nautical miles. The new Auckland route "is easily within the capabilities of the airplane," Messing added.
Delta, meanwhile, is exploring alternatives to the 787 to handle its overseas flights. Delta CEO Richard Anderson told analysts earlier this year that the Atlanta-based carrier is "technically" still a 787 customer but is "in negotiations with Boeing to figure out what's going to happen with those positions."
Some observers think Delta may be holding out for the next Dreamliner model, the 787-9, which will carry more passengers and travel longer distances.
"I suspect Delta is going to cancel or convert" its order, said aerospace blogger Jon Ostrower. He thinks Delta likely will add more Boeing 777-200LRs to its fleet.
The Post and Courier contributed to this report.
Friday, May 21, 2010
Direct, spinoff jobs for Boeing to exceed 15,000
Source: SC Future [www.scfuture.org].
The Boeing Company will add $6.1 billion to South Carolina’s annual economy, according to a new economic analysis.
Over the first 30 years of operation (the length of time for the state’s infrastructure bond issue), the study estimates that Boeing will generate almost $2.76 billion in state tax revenues, far outpacing the cost of incentives.
The analysis was prepared by Dr. Harry Miley, a Columbia-based economist who was chief economic adviser for Gov. Carroll Campbell.
The study was commissioned by The Alliance for South Carolina’s Future, a nonprofit organization in Columbia dedicated to the state’s economic growth.
The manufacturing facility will have a $5.9 billion annual impact to the Charleston region, including more than 15,000 jobs that will be created as a result of the company’s impact. That number includes the 3,800 announced jobs that Boeing will create, along with thousands of spinoff jobs in other sectors of the economy.
“These impacts will begin to occur immediately once the facility is operational and will continue for the entire life of the facility,” according to the study.
The construction phase of the project is expected to have a major short-term impact as well with almost 9,900 direct and spinoff jobs, and a $1.4 billion impact to the region.
Construction activity will generate an estimated $246 million in direct labor income. When multiplied throughout the region in indirect and induced impacts, the total increase in labor income is estimated to be more than $413 million.
“The Alliance for South Carolina’s Future commissioned this study to put the Boeing project in historical perspective,” said Ed McMullen, co-founder of the Alliance. “We also wanted to quantify the effect Boeing will have on our state. By every measure, the effect is profound.”
Other findings in the study:
· The announced capital investment for Boeing ($1.025 billion) nearly equals all of the private capital investment made in South Carolina in 2003 ($1.128 billion).
· Boeing’s capital investment per job ($268,816) more than doubles the statewide average in 2003 and is significantly above the average in South Carolina since then. The capital investment per job is a good indicator of whether a new facility will help support local governments.
· If Boeing’s investment in South Carolina grows at a similar rate as that of BMW over the next 17 years, the company would employ 9,500 people and have a $10 billion capital investment.
· South Carolina must compete for jobs and new investment with incentive packages in part because the state’s property taxes on industrial property are too high. One study ranks South Carolina highest in the nation, putting the state at a significant disadvantage.
To view the complete study, please click here.
The Boeing Company will add $6.1 billion to South Carolina’s annual economy, according to a new economic analysis.
Over the first 30 years of operation (the length of time for the state’s infrastructure bond issue), the study estimates that Boeing will generate almost $2.76 billion in state tax revenues, far outpacing the cost of incentives.
The analysis was prepared by Dr. Harry Miley, a Columbia-based economist who was chief economic adviser for Gov. Carroll Campbell.
The study was commissioned by The Alliance for South Carolina’s Future, a nonprofit organization in Columbia dedicated to the state’s economic growth.
The manufacturing facility will have a $5.9 billion annual impact to the Charleston region, including more than 15,000 jobs that will be created as a result of the company’s impact. That number includes the 3,800 announced jobs that Boeing will create, along with thousands of spinoff jobs in other sectors of the economy.
“These impacts will begin to occur immediately once the facility is operational and will continue for the entire life of the facility,” according to the study.
The construction phase of the project is expected to have a major short-term impact as well with almost 9,900 direct and spinoff jobs, and a $1.4 billion impact to the region.
Construction activity will generate an estimated $246 million in direct labor income. When multiplied throughout the region in indirect and induced impacts, the total increase in labor income is estimated to be more than $413 million.
“The Alliance for South Carolina’s Future commissioned this study to put the Boeing project in historical perspective,” said Ed McMullen, co-founder of the Alliance. “We also wanted to quantify the effect Boeing will have on our state. By every measure, the effect is profound.”
Other findings in the study:
· The announced capital investment for Boeing ($1.025 billion) nearly equals all of the private capital investment made in South Carolina in 2003 ($1.128 billion).
· Boeing’s capital investment per job ($268,816) more than doubles the statewide average in 2003 and is significantly above the average in South Carolina since then. The capital investment per job is a good indicator of whether a new facility will help support local governments.
· If Boeing’s investment in South Carolina grows at a similar rate as that of BMW over the next 17 years, the company would employ 9,500 people and have a $10 billion capital investment.
· South Carolina must compete for jobs and new investment with incentive packages in part because the state’s property taxes on industrial property are too high. One study ranks South Carolina highest in the nation, putting the state at a significant disadvantage.
To view the complete study, please click here.
Thursday, May 6, 2010
Union objects to potty numbers
By Katy Stech
The Post and Courier
Thursday, May 6, 2010
Reason No. 2, perhaps, that those 787 Dreamliners are so far behind schedule: long bathroom breaks at the North Charleston plants where workers piece together portions of the fuselages.
Employment has surged to more than 3,000 workers at the company's local campus as Boeing seeks to ramp up production of its hot-selling new jet. But male employees have complained that they are forced to share only a handful of bathrooms within the two existing industrial buildings.
The situation recently caught the attention of a union that represents some of the workers from the Puget Sound area in Washington who have been temporarily assigned to the Lowcountry plants.
Tom McCarty, president of Seattle-based Society for Professional Engineering Employees in Aerospace's Local 2001, and other labor officials traveled here last month to discuss the local working conditions with their roughly 100 union members at Boeing Charleston.
The male workers spoke of lines that, at times, snake out of the restroom areas.
"Sometimes, there's a waiting line, and the waiting line isn't insignificant," McCarty said.
Female employees reportedly have not faced a similar problem, likely because fewer women work at the plant, he said.
McCarty said he requested a meeting with local Boeing officials, who initially agreed, but pushed back the sessions to a point where the groups never were able to get together.
Boeing Charleston spokeswoman Candy Eslinger would not disclose the number of bathrooms on site, saying only that the facilities met local building code requirements. She said the company added two modular restrooms outside the plants last year.
McCarty, a 37-year Boeing employee, said he's never come across this situation in one of the company's buildings before.
He said it reflects the glitches that have pushed back the first 787 delivery by nearly two years.
Production problems at the airplane's worldwide network of vendors -- Reason No. 1 for the delays -- have forced Boeing to take more control of its far-flung supply chain.
McCarty said management "has been in got-to-make-it-work mode, and that's evident at the Charleston facility. They're scrambling."
The Post and Courier
Thursday, May 6, 2010
Reason No. 2, perhaps, that those 787 Dreamliners are so far behind schedule: long bathroom breaks at the North Charleston plants where workers piece together portions of the fuselages.
Employment has surged to more than 3,000 workers at the company's local campus as Boeing seeks to ramp up production of its hot-selling new jet. But male employees have complained that they are forced to share only a handful of bathrooms within the two existing industrial buildings.
The situation recently caught the attention of a union that represents some of the workers from the Puget Sound area in Washington who have been temporarily assigned to the Lowcountry plants.
Tom McCarty, president of Seattle-based Society for Professional Engineering Employees in Aerospace's Local 2001, and other labor officials traveled here last month to discuss the local working conditions with their roughly 100 union members at Boeing Charleston.
The male workers spoke of lines that, at times, snake out of the restroom areas.
"Sometimes, there's a waiting line, and the waiting line isn't insignificant," McCarty said.
Female employees reportedly have not faced a similar problem, likely because fewer women work at the plant, he said.
McCarty said he requested a meeting with local Boeing officials, who initially agreed, but pushed back the sessions to a point where the groups never were able to get together.
Boeing Charleston spokeswoman Candy Eslinger would not disclose the number of bathrooms on site, saying only that the facilities met local building code requirements. She said the company added two modular restrooms outside the plants last year.
McCarty, a 37-year Boeing employee, said he's never come across this situation in one of the company's buildings before.
He said it reflects the glitches that have pushed back the first 787 delivery by nearly two years.
Production problems at the airplane's worldwide network of vendors -- Reason No. 1 for the delays -- have forced Boeing to take more control of its far-flung supply chain.
McCarty said management "has been in got-to-make-it-work mode, and that's evident at the Charleston facility. They're scrambling."
Tuesday, May 4, 2010
Boeing 787 design features a bit more headroom
By Katy Stech
The Post and Courier
Tuesday, May 4, 2010
There's a team of Boeing Co. professionals who are paid to study the dreaded elements of travel.
The fight, for example, to claim overhead bin space. The feeling of claustrophobia some passengers feel while strapped inside an airborne metal tube. That harsh slap of light at the end of the flight when attendants flip the switch so travelers can gather their belongings.
While Boeing can't do much about flight delays and strict security measures, executive Kent Craver said it has done its best to ensure "the onboard experience" for a 787 Dreamliner jet appeases even the pickiest travelers.
"We found that people love to fly; they just don't love to fly today," said Craver, Boeing's regional director of passenger revenue analysis.
The company provided the media and local officials a peek at a portion of a mocked-up 787 passenger cabin Monday at its North Charleston campus. The half-arc display was set up in one of Boeing's two existing fuselage plants, where a plastic-covered piece of fuselage section sat yards away, delivered fresh from a supplier in Grottaglie, Italy.
While many passengers board an airplane without giving much thought to the interior, Craver said he's confident the 787 has been designed in a way that passengers will notice.
"We do that with a sense of space," he said while inside the display's blue-lit interior.
The company's research showed that passengers are more conscious of the amount of space above their head than at their sides, so architects designed the 787 ceilings to seem taller than they actually are, Craver said. Also, the windows on the Dreamliner are 65 percent bigger than the ones installed in a 777 jet, adding to the spacious effect.
And instead of those plastic, roll-up window shades, each window has a dimmer button that tints the window to several different settings.
Lights throughout the plane are programmed to 14 different settings, which could help passengers on long flights adjust to the time of day.
The overhead bins can accommodate larger pieces of luggage. And engineers even tinkered with settings, such as cabin pressure and humidity, to ensure a more pleasurable flying experience.
The attention to detail has a bottom-line component to it. Craver pointed out that some seasoned frequent fliers and business travelers pick flights based on the aircraft model, so a well-designed plane could fill up faster.
"It increases demand with business-class passengers," he said.
The Post and Courier
Tuesday, May 4, 2010
There's a team of Boeing Co. professionals who are paid to study the dreaded elements of travel.
The fight, for example, to claim overhead bin space. The feeling of claustrophobia some passengers feel while strapped inside an airborne metal tube. That harsh slap of light at the end of the flight when attendants flip the switch so travelers can gather their belongings.
While Boeing can't do much about flight delays and strict security measures, executive Kent Craver said it has done its best to ensure "the onboard experience" for a 787 Dreamliner jet appeases even the pickiest travelers.
"We found that people love to fly; they just don't love to fly today," said Craver, Boeing's regional director of passenger revenue analysis.
The company provided the media and local officials a peek at a portion of a mocked-up 787 passenger cabin Monday at its North Charleston campus. The half-arc display was set up in one of Boeing's two existing fuselage plants, where a plastic-covered piece of fuselage section sat yards away, delivered fresh from a supplier in Grottaglie, Italy.
While many passengers board an airplane without giving much thought to the interior, Craver said he's confident the 787 has been designed in a way that passengers will notice.
"We do that with a sense of space," he said while inside the display's blue-lit interior.
The company's research showed that passengers are more conscious of the amount of space above their head than at their sides, so architects designed the 787 ceilings to seem taller than they actually are, Craver said. Also, the windows on the Dreamliner are 65 percent bigger than the ones installed in a 777 jet, adding to the spacious effect.
And instead of those plastic, roll-up window shades, each window has a dimmer button that tints the window to several different settings.
Lights throughout the plane are programmed to 14 different settings, which could help passengers on long flights adjust to the time of day.
The overhead bins can accommodate larger pieces of luggage. And engineers even tinkered with settings, such as cabin pressure and humidity, to ensure a more pleasurable flying experience.
The attention to detail has a bottom-line component to it. Craver pointed out that some seasoned frequent fliers and business travelers pick flights based on the aircraft model, so a well-designed plane could fill up faster.
"It increases demand with business-class passengers," he said.
Interior-fixtures factory to bring 150 Boeing jobs
By Katy Stech
The Post and Courier
Tuesday, May 4, 2010
Boeing Co. plans to build a jet interior-fixtures plant, creating another 150 jobs on top of the thousands that will come when the company opens its 787 Dreamliner assembly plant next year.
The manufacturing facility, which company officials want to locate within 20 minutes of their North Charleston campus at the Charleston airport, will help workers outfit the inside of the passenger jets quickly, said Raymond Conner, a Boeing executive who oversees supply-chain management for the company's commercial division.
The Boeing Fabrication Interiors South Carolina facility will make airplane parts such as overhead stow bins, closets and partitions between flight classes.
Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., manufacturing headquarters, but company executives said earlier this year that they want to duplicate its critical jet manufacturing operations in Charleston in case of West Coast work stoppages. A strike by the International Association of Machinists and Aerospace Workers in 2008 cost the company an estimated $1.8 billion.
"We wanted to create some independence," Conner said.
The plant will open in early 2012, around the time that the North Charleston plant is scheduled to finish its first passenger jet.
Executives haven't picked a location for the plant, setting the stage for a potential bidding war among Charleston, Dorchester and Berkeley counties. Each county has the power to grant economic incentives, such as tax breaks on a new building or on the manufacturing equipment inside.
"I'm sure incentives will come into play," said Charleston County economic development director Steve Dykes, who's responsible for recruiting businesses to the county.
Already, local and state officials used an incentives package worth more than $1 billion, according to a Post and Courier analysis, to land Boeing's second final-assembly line. That $750 million investment is expected to generate more than 3,800 jobs.
Gov. Mark Sanford, a critic of economic incentives, spoke at Monday's announcement meeting. Asked whether it was fair for adjacent counties to compete against each other for jobs and investment, Sanford emphasized that the state didn't offer any incentives to Boeing for this expansion.
"Counties are going to do what counties are going to do," he said.
The interior-fixture facility will hire workers who have gone through the existing training program set up for Boeing, which is paid for with state money.
Company officials hope to solidify a site for the estimated 250,000-square-foot building this summer.
The Post and Courier
Tuesday, May 4, 2010
Boeing Co. plans to build a jet interior-fixtures plant, creating another 150 jobs on top of the thousands that will come when the company opens its 787 Dreamliner assembly plant next year.
The manufacturing facility, which company officials want to locate within 20 minutes of their North Charleston campus at the Charleston airport, will help workers outfit the inside of the passenger jets quickly, said Raymond Conner, a Boeing executive who oversees supply-chain management for the company's commercial division.
The Boeing Fabrication Interiors South Carolina facility will make airplane parts such as overhead stow bins, closets and partitions between flight classes.
Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., manufacturing headquarters, but company executives said earlier this year that they want to duplicate its critical jet manufacturing operations in Charleston in case of West Coast work stoppages. A strike by the International Association of Machinists and Aerospace Workers in 2008 cost the company an estimated $1.8 billion.
"We wanted to create some independence," Conner said.
The plant will open in early 2012, around the time that the North Charleston plant is scheduled to finish its first passenger jet.
Executives haven't picked a location for the plant, setting the stage for a potential bidding war among Charleston, Dorchester and Berkeley counties. Each county has the power to grant economic incentives, such as tax breaks on a new building or on the manufacturing equipment inside.
"I'm sure incentives will come into play," said Charleston County economic development director Steve Dykes, who's responsible for recruiting businesses to the county.
Already, local and state officials used an incentives package worth more than $1 billion, according to a Post and Courier analysis, to land Boeing's second final-assembly line. That $750 million investment is expected to generate more than 3,800 jobs.
Gov. Mark Sanford, a critic of economic incentives, spoke at Monday's announcement meeting. Asked whether it was fair for adjacent counties to compete against each other for jobs and investment, Sanford emphasized that the state didn't offer any incentives to Boeing for this expansion.
"Counties are going to do what counties are going to do," he said.
The interior-fixture facility will hire workers who have gone through the existing training program set up for Boeing, which is paid for with state money.
Company officials hope to solidify a site for the estimated 250,000-square-foot building this summer.
Monday, May 3, 2010
Boeing to locate 787 interior parts factory in Lowcountry
Staff report
Monday, May 3, 2010
Boeing Co. today said it plans to hire 150 additional workers to make interior fixtures for the 787 jets that will be assembled in North Charleston.
The new venture will be located within 20 minutes of the company's existing manufacturing campus at Charleston International Airport, said Ray Conner, vice president and general manager for Boeing Commercial's supply chain management and operations.
The exact site has not been determined. A location is expected to be announced this summer. The interior parts factory will open in early 2012, just as the first locally made 787s start rolling off the assembly line.
The expansion is part of the company's plan to replicate all of its critical manufacturing operations for the new jetliner in South Carolina. Boeing executives have said that will enable the company to continue producing the airplane if the existing 787 assembly line in Everett, Wash., shuts down because of a strike or other reasons.
Boeing is building a $750 million, 3,800-worker production plant for its 787 Dreamliner jet at Charleston International, where it already makes major fuselage sections for its new passenger plane.
Monday, May 3, 2010
Boeing Co. today said it plans to hire 150 additional workers to make interior fixtures for the 787 jets that will be assembled in North Charleston.
The new venture will be located within 20 minutes of the company's existing manufacturing campus at Charleston International Airport, said Ray Conner, vice president and general manager for Boeing Commercial's supply chain management and operations.
The exact site has not been determined. A location is expected to be announced this summer. The interior parts factory will open in early 2012, just as the first locally made 787s start rolling off the assembly line.
The expansion is part of the company's plan to replicate all of its critical manufacturing operations for the new jetliner in South Carolina. Boeing executives have said that will enable the company to continue producing the airplane if the existing 787 assembly line in Everett, Wash., shuts down because of a strike or other reasons.
Boeing is building a $750 million, 3,800-worker production plant for its 787 Dreamliner jet at Charleston International, where it already makes major fuselage sections for its new passenger plane.
Boeing Plant Progress
Click here to see the latest photos of the work at the new Boeing facility.
(BE&K - Turner Joint Venture: Boeing 787 Plant, Charleston, SC. http://evshd.netfirms.com/bek01/flash.htm)
(BE&K - Turner Joint Venture: Boeing 787 Plant, Charleston, SC. http://evshd.netfirms.com/bek01/flash.htm)
Thursday, April 29, 2010
State borrows $270M for Boeing incentives
By Katy Stech
Thursday, April 29, 2010
The state of South Carolina has borrowed the money it intends to give Boeing Co. to cover more than one-third of the cost of the aerospace giant's $750 million assembly plant for the 787 jet in North Charleston.
The state's treasury office recently closed on $270 million in bonds, which Boeing doesn't have to pay back.
The company plans to spend most of that -- $206.1 million -- on the 787 assembly building, which construction workers recently began framing out.
Boeing plans to spend another $10 million of bond money on roads and $53.9 million on site work and utilities, according a state Department of Commerce document.
In return, Boeing has agreed to hire at least 6,000 workers by 2016 at its Charleston International Airport campus. Roughly 3,000 workers already report to the site, where the company makes two key pieces of the 787 fuselage.
So far, Boeing has requested and received slightly more than $13.82 million of the $270 million in bond proceeds, Commerce Department marketing and communications manager Kara Borie said.
Three investment firms participated in the first debt issue: Banc of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays Capital Inc.
This was the only planned bond issue from the state's portion of the Boeing incentive package.
The borrowing costs during the 15-year repayment period will amount to about $90 million, a figure that's smaller than what state officials originally expected to spend.
State treasury officials estimated in January that the total cost of the bonds, including premium and interest, would amount to $399 million. Instead, the cost is projected to be about $360 million.
The bonds carry an interest rate of 3.3 percent.
"Market conditions can change significantly in six months, and we did effect the sale under some very favorable market conditions," said Rick Harmon, senior assistant to state Treasurer Converse Chellis.
The debt will be repaid from the state's general operating fund.
Thursday, April 29, 2010
The state of South Carolina has borrowed the money it intends to give Boeing Co. to cover more than one-third of the cost of the aerospace giant's $750 million assembly plant for the 787 jet in North Charleston.
The state's treasury office recently closed on $270 million in bonds, which Boeing doesn't have to pay back.
The company plans to spend most of that -- $206.1 million -- on the 787 assembly building, which construction workers recently began framing out.
Boeing plans to spend another $10 million of bond money on roads and $53.9 million on site work and utilities, according a state Department of Commerce document.
In return, Boeing has agreed to hire at least 6,000 workers by 2016 at its Charleston International Airport campus. Roughly 3,000 workers already report to the site, where the company makes two key pieces of the 787 fuselage.
So far, Boeing has requested and received slightly more than $13.82 million of the $270 million in bond proceeds, Commerce Department marketing and communications manager Kara Borie said.
Three investment firms participated in the first debt issue: Banc of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays Capital Inc.
This was the only planned bond issue from the state's portion of the Boeing incentive package.
The borrowing costs during the 15-year repayment period will amount to about $90 million, a figure that's smaller than what state officials originally expected to spend.
State treasury officials estimated in January that the total cost of the bonds, including premium and interest, would amount to $399 million. Instead, the cost is projected to be about $360 million.
The bonds carry an interest rate of 3.3 percent.
"Market conditions can change significantly in six months, and we did effect the sale under some very favorable market conditions," said Rick Harmon, senior assistant to state Treasurer Converse Chellis.
The debt will be repaid from the state's general operating fund.
Tuesday, April 27, 2010
Dream on the line
By Katy Stech
The Post and Courier
Tuesday, April 27, 2010
A delegation of the Charleston area's top business recruiters flew to Washington state Monday for a weeklong visit that includes a tour of Boeing Co.'s main manufacturing hub and meetings with the aerospace giant's key suppliers.
The entourage is being led by David Ginn, chief executive officer of the Charleston Regional Development Alliance, which markets the three counties to employers that are looking to expand.
The visit has raised some eyebrows in the Seattle area, where business boosters who are highly protective of their region's high-paying aerospace jobs still feel the sting of Boeing's decision to build its new 787 assembly plant in North Charleston.
a big sell. I know they are, but I feel good about what we have here too," said Deborah Knutson, who heads Snohomish County's Economic Development Council. "I honestly don't think companies are going to pack up here and leave, but they could do an expansion in Charleston. And if an expansion need to be done, that's growing our companies, so it can be a win-win."
Knutson's group is demonstrating its own brand of hospitality by throwing a breakfast this morning for the Charleston area delegation and some top aerospace players. She said she thinks she knows some of the companies that Ginn's group plans to meet with, but she declined to identify them.
Joining Ginn on the cross-county trip are the economic development directors for all three counties: Steve Dykes from Charleston County, Gene Butler from Berkeley County and Jon Baggett from Dorchester County.
Heyward Horton, who recruits employers for the alliance, also made the trek, as did utility executives from South Carolina Electric & Gas, Santee Cooper and Berkeley Electric Cooperative.
Alliance spokeswoman Karen Kuchenbecker shied away from the notion that the purpose of the trip is to persuade Seattle businesses to relocate in the Charleston area.
"It's not technically to recruit," she said. "It's to get our community to understand what we can do to make Boeing successful."
The Post and Courier
Tuesday, April 27, 2010
A delegation of the Charleston area's top business recruiters flew to Washington state Monday for a weeklong visit that includes a tour of Boeing Co.'s main manufacturing hub and meetings with the aerospace giant's key suppliers.
The entourage is being led by David Ginn, chief executive officer of the Charleston Regional Development Alliance, which markets the three counties to employers that are looking to expand.
The visit has raised some eyebrows in the Seattle area, where business boosters who are highly protective of their region's high-paying aerospace jobs still feel the sting of Boeing's decision to build its new 787 assembly plant in North Charleston.
a big sell. I know they are, but I feel good about what we have here too," said Deborah Knutson, who heads Snohomish County's Economic Development Council. "I honestly don't think companies are going to pack up here and leave, but they could do an expansion in Charleston. And if an expansion need to be done, that's growing our companies, so it can be a win-win."
Knutson's group is demonstrating its own brand of hospitality by throwing a breakfast this morning for the Charleston area delegation and some top aerospace players. She said she thinks she knows some of the companies that Ginn's group plans to meet with, but she declined to identify them.
Joining Ginn on the cross-county trip are the economic development directors for all three counties: Steve Dykes from Charleston County, Gene Butler from Berkeley County and Jon Baggett from Dorchester County.
Heyward Horton, who recruits employers for the alliance, also made the trek, as did utility executives from South Carolina Electric & Gas, Santee Cooper and Berkeley Electric Cooperative.
Alliance spokeswoman Karen Kuchenbecker shied away from the notion that the purpose of the trip is to persuade Seattle businesses to relocate in the Charleston area.
"It's not technically to recruit," she said. "It's to get our community to understand what we can do to make Boeing successful."
With so much riding on new 787 composite jet, it's critical for aircraft giant to get Dreamliner right
By John Lippert and Susanna Ray, Bloomberg News
Tuesday, April 27, 2010
As Boeing chief executive Jim McNerney held court in Airbus SAS's backyard at the Paris Air Show in June, he made a promise: He told Wall Street analysts he'd be throwing a party in two weeks -- after the 787 Dreamliner's first test flight.
The plane, which is so radical that its fuselage is formed by wrapping composite-plastic tape around a mold and then baking it, was already two years late for its trial. The delays had crushed Boeing's credibility and helped drive shares down to $51.44 as the show opened from a record $107.83 in 2007.
The celebration wasn't to be. Back in the United States, as McNerney was driving home from Waukegan Regional Airport in Illinois, he got a call from Scott Carson, who was then president of Boeing's commercial aircraft division. Engineers had found separations in layers of plastic where the 787 fuselage meets the wing.
The only option was another delay. News of the postponed flight sent shares tumbling a further 6.5 percent on June 23.
Boeing reinforced the wing joint with titanium, and the Dreamliner flew its much-anticipated three-hour test over Washington state on Dec. 15, almost six months later.
Seated in a Boeing conference room 36 floors above the Chicago River on a blustery March afternoon, McNerney, 60, recalls the June delay.
"It was a tough day, but you've got to be levelheaded around here," he said. "If I get as excited as I want to be about all the cool stuff that happens and as disappointed as I want to feel when stuff doesn't go well, I'd be a Raggedy Ann doll," he said.
Shareholders, who were gathering in Chicago for the company's annual meeting Monday, can relate to that. After watching Boeing stock hit so many peaks and valleys in two decades that its price graph resembles a mountain range, investors are betting the Dreamliner will put Boeing back on the upswing.
"Once Boeing starts delivering the 787, the earnings power will double and the stock will double," predicts David Pearl, co-chief investment officer at New York-based Epoch Investment Partners Inc., which owned 2 million shares of the Chicago-based company as of Dec. 31.
Boeing shares jumped 51 percent to $75.13 in the six months through April 23. The increase was almost four times that of the S&P 500 Index.
Since July 2005, when McNerney took the reins as chairman and CEO after two ethics scandals had rocked the world's biggest aerospace and defense company, the shares have returned 26 percent, double the 13 percent gain for the S&P 500.
Boeing is the only stock with enough liquidity for large-cap portfolio managers looking for aerospace growth, said David Rowlett, a Baltimore-based analyst at T. Rowe Price Group.
"They can generate a lot of cash if they get the 787 right," said Rowlett, whose firm owned 7.9 million shares in December.
Getting it right hasn't been Boeing's forte. The Dreamliner, a two-engine jet that will travel 8,500 nautical miles while burning 20 percent less fuel than competitors, won't earn back Boeing's original investment of about $15 billion until 2018 or later, predicts Heidi Wood, an analyst at Morgan Stanley in New York.
Last year, Boeing's aircraft orders tumbled 79 percent to 142 amid the worst travel slump since World War II. Profit plummeted 51 percent to $1.3 billion. The company swallowed $1.8 billion in reduced income because of an International Association of Machinists and Aerospace Workers strike in 2008. And it lost its lead contractor role when the Pentagon canceled the $159 billion Future Combat Systems program, hurting the defense business that delivered 49.1 percent of Boeing's $68.3 billion in 2009 revenue.
On April 21, Boeing said first-quarter net income fell 15 percent to $519 million and revenue dropped 7.8 percent to $15.2 billion.
The 787 has added to the misery. Not only was the Dreamliner the first airliner designed largely with composite materials instead of metals; Boeing also farmed out entire pieces for suppliers to design and build. The company planned to assemble the plane in three days at its Everett, Wash., campus, joining the nose, wings and fuselage into a wide-body jet that could seat up to 290 people.
Major portions of the 787 fuselage are made in North Charleston, where Boeing is building a full production line that will turn out up to three jets per month and complement the primary final assembly plant near Seattle.
The new factory at Charleston International Airport is expected to open in mid-2011.
Boeing and Airbus constantly jockey for orders from the world's 100 major global airlines, New York-based aerospace consultant Wolfgang Demisch said. Winning can come down to price, shrinking pretax profit margins below 10 percent and forcing endless restructurings.
"McNerney is trying to do something that's really hard to do," said Charles Smith, chief investment officer at Pittsburgh-based Fort Pitt Capital Group Inc., which owned 236,000 shares in March.
The 787 will determine McNerney's place in history, Smith said. "If two years from now he's producing eight or ten 787s a month, we'll say he was very capable," he said. "Until then, the jury's out."
With the first 787s due by year-end, investors want to be sure McNerney can deliver steady profits and keep the stock price -- like the Dreamliner -- flying.
The Post and Courier and other Bloomberg reporters contributed to this report.
Tuesday, April 27, 2010
As Boeing chief executive Jim McNerney held court in Airbus SAS's backyard at the Paris Air Show in June, he made a promise: He told Wall Street analysts he'd be throwing a party in two weeks -- after the 787 Dreamliner's first test flight.
The plane, which is so radical that its fuselage is formed by wrapping composite-plastic tape around a mold and then baking it, was already two years late for its trial. The delays had crushed Boeing's credibility and helped drive shares down to $51.44 as the show opened from a record $107.83 in 2007.
The celebration wasn't to be. Back in the United States, as McNerney was driving home from Waukegan Regional Airport in Illinois, he got a call from Scott Carson, who was then president of Boeing's commercial aircraft division. Engineers had found separations in layers of plastic where the 787 fuselage meets the wing.
The only option was another delay. News of the postponed flight sent shares tumbling a further 6.5 percent on June 23.
Boeing reinforced the wing joint with titanium, and the Dreamliner flew its much-anticipated three-hour test over Washington state on Dec. 15, almost six months later.
Seated in a Boeing conference room 36 floors above the Chicago River on a blustery March afternoon, McNerney, 60, recalls the June delay.
"It was a tough day, but you've got to be levelheaded around here," he said. "If I get as excited as I want to be about all the cool stuff that happens and as disappointed as I want to feel when stuff doesn't go well, I'd be a Raggedy Ann doll," he said.
Shareholders, who were gathering in Chicago for the company's annual meeting Monday, can relate to that. After watching Boeing stock hit so many peaks and valleys in two decades that its price graph resembles a mountain range, investors are betting the Dreamliner will put Boeing back on the upswing.
"Once Boeing starts delivering the 787, the earnings power will double and the stock will double," predicts David Pearl, co-chief investment officer at New York-based Epoch Investment Partners Inc., which owned 2 million shares of the Chicago-based company as of Dec. 31.
Boeing shares jumped 51 percent to $75.13 in the six months through April 23. The increase was almost four times that of the S&P 500 Index.
Since July 2005, when McNerney took the reins as chairman and CEO after two ethics scandals had rocked the world's biggest aerospace and defense company, the shares have returned 26 percent, double the 13 percent gain for the S&P 500.
Boeing is the only stock with enough liquidity for large-cap portfolio managers looking for aerospace growth, said David Rowlett, a Baltimore-based analyst at T. Rowe Price Group.
"They can generate a lot of cash if they get the 787 right," said Rowlett, whose firm owned 7.9 million shares in December.
Getting it right hasn't been Boeing's forte. The Dreamliner, a two-engine jet that will travel 8,500 nautical miles while burning 20 percent less fuel than competitors, won't earn back Boeing's original investment of about $15 billion until 2018 or later, predicts Heidi Wood, an analyst at Morgan Stanley in New York.
Last year, Boeing's aircraft orders tumbled 79 percent to 142 amid the worst travel slump since World War II. Profit plummeted 51 percent to $1.3 billion. The company swallowed $1.8 billion in reduced income because of an International Association of Machinists and Aerospace Workers strike in 2008. And it lost its lead contractor role when the Pentagon canceled the $159 billion Future Combat Systems program, hurting the defense business that delivered 49.1 percent of Boeing's $68.3 billion in 2009 revenue.
On April 21, Boeing said first-quarter net income fell 15 percent to $519 million and revenue dropped 7.8 percent to $15.2 billion.
The 787 has added to the misery. Not only was the Dreamliner the first airliner designed largely with composite materials instead of metals; Boeing also farmed out entire pieces for suppliers to design and build. The company planned to assemble the plane in three days at its Everett, Wash., campus, joining the nose, wings and fuselage into a wide-body jet that could seat up to 290 people.
Major portions of the 787 fuselage are made in North Charleston, where Boeing is building a full production line that will turn out up to three jets per month and complement the primary final assembly plant near Seattle.
The new factory at Charleston International Airport is expected to open in mid-2011.
Boeing and Airbus constantly jockey for orders from the world's 100 major global airlines, New York-based aerospace consultant Wolfgang Demisch said. Winning can come down to price, shrinking pretax profit margins below 10 percent and forcing endless restructurings.
"McNerney is trying to do something that's really hard to do," said Charles Smith, chief investment officer at Pittsburgh-based Fort Pitt Capital Group Inc., which owned 236,000 shares in March.
The 787 will determine McNerney's place in history, Smith said. "If two years from now he's producing eight or ten 787s a month, we'll say he was very capable," he said. "Until then, the jury's out."
With the first 787s due by year-end, investors want to be sure McNerney can deliver steady profits and keep the stock price -- like the Dreamliner -- flying.
The Post and Courier and other Bloomberg reporters contributed to this report.
Thursday, April 22, 2010
Boeing on track for 787 delivery
By JOSHUA FREED, Associated Press
Thursday, April 22, 2010
MINNEAPOLIS -- Boeing Co.'s first-quarter profit fell almost 15 percent as it delivered fewer aircraft, but the company said it's on track for its most closely watched delivery, the first 787, by the end of the year.
Boeing's first-quarter report Wednesday was notable for all the potential bad news that wasn't there. Sticking with plans to deliver the 787 by the end of the year might reassure those analysts who had been worried about further delays.
Its 2010 profit guidance remained unchanged, except for an accounting charge that investors found out about last month. And it said 2011 revenue should rise.
"The financial outlook for the world's airlines has improved noticeably since last quarter," said Jim McNerney, chairman, president and chief executive officer, on a conference call Wednesday.
In relatively short order, Boeing has become one of the Charleston region's most important private-sector employers under an expansion driven by the delayed launch of its new 787 passenger plane.
Since last summer the aerospace giant has purchased two North Charleston-based suppliers that make major pieces of the jet's fuselage. In the fall, Boeing picked Charleston International Airport as the site for its second 787 assembly plant, "which is now well into construction," McNerney said.
The existing Dreamliner production facility is in Everett, Wash.
The North Charleston factory is set to open in mid-2011. It is expected to employ several thousand workers and turn out three 787s a month starting around 2013. Boeing estimated that its investment in its North Charleston expansion this year will total around $700 million.
Beset by production problems with suppliers, the 787 took its first flight more than two years late. Boeing said the test fleet has flown for a total of 500 hours as of Friday. One of the planes was moved to Florida on Sunday for extreme-weather testing at Eglin Air Force Base.
McNerney said the 787 "is performing very well."
Boeing has orders for 866 of the planes, from 57 customers. The sooner Boeing delivers the plane, the sooner it gets paid, although customers have made major pre-delivery payments.
Japan's All Nippon Airlines is set to take delivery of the first model later this year, a target that McNerney said was still on track.
The 787 update came as Boeing said it earned $519 million during its first quarter, or 70 cents per share. Analysts surveyed by Thomson Reuters expected a profit of about 63 cents per share.
Revenue fell almost 8 percent to $15.2 billion, close to what analysts had forecast.
The Chicago-based aerospace and defense contractor said it expects revenue of $64 billion to $66 billion this year. Analysts had been expecting $65.04 billion.
It reduced its full-year forecast to $3.50 to $3.80 per share to account for a previously announced charge of 20 cents per share related to recently passed health care legislation.
Boeing said it expects that 2011 revenue will be higher as it delivers the 787 and a new version of its 747.
McNerney said the company will decide soon whether to increase the production rate on its workhorse 737 from the current 31 per month.
Boeing's commercial airplanes unit delivered 108 aircraft during the first three months of 2010, down 11 percent from 121 planes a year earlier.
Revenue fell 13 percent to $7.47 billion. That segment's profit jumped 63 percent to $679 million because the year-ago quarter was held down by an accounting charge.
John P. McDermott of The Post and Courier contributed to this story.
Thursday, April 22, 2010
MINNEAPOLIS -- Boeing Co.'s first-quarter profit fell almost 15 percent as it delivered fewer aircraft, but the company said it's on track for its most closely watched delivery, the first 787, by the end of the year.
Boeing's first-quarter report Wednesday was notable for all the potential bad news that wasn't there. Sticking with plans to deliver the 787 by the end of the year might reassure those analysts who had been worried about further delays.
Its 2010 profit guidance remained unchanged, except for an accounting charge that investors found out about last month. And it said 2011 revenue should rise.
"The financial outlook for the world's airlines has improved noticeably since last quarter," said Jim McNerney, chairman, president and chief executive officer, on a conference call Wednesday.
In relatively short order, Boeing has become one of the Charleston region's most important private-sector employers under an expansion driven by the delayed launch of its new 787 passenger plane.
Since last summer the aerospace giant has purchased two North Charleston-based suppliers that make major pieces of the jet's fuselage. In the fall, Boeing picked Charleston International Airport as the site for its second 787 assembly plant, "which is now well into construction," McNerney said.
The existing Dreamliner production facility is in Everett, Wash.
The North Charleston factory is set to open in mid-2011. It is expected to employ several thousand workers and turn out three 787s a month starting around 2013. Boeing estimated that its investment in its North Charleston expansion this year will total around $700 million.
Beset by production problems with suppliers, the 787 took its first flight more than two years late. Boeing said the test fleet has flown for a total of 500 hours as of Friday. One of the planes was moved to Florida on Sunday for extreme-weather testing at Eglin Air Force Base.
McNerney said the 787 "is performing very well."
Boeing has orders for 866 of the planes, from 57 customers. The sooner Boeing delivers the plane, the sooner it gets paid, although customers have made major pre-delivery payments.
Japan's All Nippon Airlines is set to take delivery of the first model later this year, a target that McNerney said was still on track.
The 787 update came as Boeing said it earned $519 million during its first quarter, or 70 cents per share. Analysts surveyed by Thomson Reuters expected a profit of about 63 cents per share.
Revenue fell almost 8 percent to $15.2 billion, close to what analysts had forecast.
The Chicago-based aerospace and defense contractor said it expects revenue of $64 billion to $66 billion this year. Analysts had been expecting $65.04 billion.
It reduced its full-year forecast to $3.50 to $3.80 per share to account for a previously announced charge of 20 cents per share related to recently passed health care legislation.
Boeing said it expects that 2011 revenue will be higher as it delivers the 787 and a new version of its 747.
McNerney said the company will decide soon whether to increase the production rate on its workhorse 737 from the current 31 per month.
Boeing's commercial airplanes unit delivered 108 aircraft during the first three months of 2010, down 11 percent from 121 planes a year earlier.
Revenue fell 13 percent to $7.47 billion. That segment's profit jumped 63 percent to $679 million because the year-ago quarter was held down by an accounting charge.
John P. McDermott of The Post and Courier contributed to this story.
Wednesday, April 14, 2010
Learning the Drill
The Post and Courier
Katy Stech
April 13, 2010
Power tools and teaching diagrams at Boeing Co.'s state-funded training facility in North Charleston sit in the shadow of two giant, thin arcs -- the cross section of a 787 Dreamliner jet.
The composite half-circles will help future Boeing employees get used to their new jobs, where reporting to work means descending into a dark, hollow tube to drill holes and seal fasteners. A training video showed some employees crawling through oval passenger windows to get to their work spaces.
"Make 'em work upside down," said Jeff Stone, director of training and employee development for Boeing. "Make them walk into an airplane with tools and (debris collection) bags, and then walk out at the end of the day."
Company officials and state program directors showed off the aerospace giant's new training space Monday at Trident Technical College's main campus on Rivers Avenue.
The facility has a smattering of teaching stations throughout the 22,000-square-foot building, which formerly was used by Robert Bosch, DuPont and other manufacturers under similar state training programs.
The program has graduated 1,700 Boeing workers, and the company's new 787 assembly line, scheduled to open next year at Charleston International Airport, will employ nearly 4,000. It's unclear how much training activity will occur at the center during the next few months.
State training officials stopped taking job applications on Boeing's behalf in January, and they have 1,315 applicants who already have qualified for the training but haven't started the program. Many of them won't be hired by Boeing before the end of the year, Stone said.
The training-schedule slowdown also caused state officials to back out of a deal with the city of North Charleston, which offered to lease to the company the 56,000-square-foot former city hall building on Lacross Road. The state had planned to use the building to recruit and train Boeing employees, but officials said they don't need the extra space anymore.
The training program does not expect to solicit more applicants until early next year.
"We don't want to create false hope," said Jim Maxon, the Boeing project director for ReadySC, a division of the S.C. Technical College System.
Meanwhile, the local head count at Boeing's two existing 787 fuselage plants near the airport has surged, increasing from about 2,200 workers last summer to 3,000 as the company plants ramp up to a quicker production rate.
Boeing spokeswoman Candy Eslinger wouldn't say whether the new workers were hired locally or brought in from elsewhere. Stone said the company is trying to maintain a balance between experienced workers and fresh hires.
Regardless, the state training center is ready to accommodate new workers for their typical eight-week training program and subsequent certification classes.
On Monday, a round of instructors explained the ins and outs of aircraft manufacturing, from how to properly drill fasteners into composite plates to repacking tools into pre-assembled kits to ensure that nothing is left behind. Anytime a tool or a piece of equipment disappears in an aircraft plant it is considered a serious matter, instructor Tony Walters said.
"It could bring an aircraft down," he said.
One station will show workers how to squeeze sealants between metal pieces, cutting back on long-term wear and protecting against cabin pressure drops. The trick for employees, instructor Greg Bartle said, is to figure out how little of the product to use.
"Every bit they put on, it adds weight," he said.
The state program, which is projected to cost $33 million during the next 15 years, pays for a worker's training costs, including instruction time and tools. Boeing pays each trainee's wages.
Officials said the training program helped seal the deal for landing the company's second 787 assembly line. The other is near Seattle. While searching for plant sites, Boeing told state officials that it was worried about finding enough skilled workers in the Lowcountry, which doesn't have a long-standing aviation manufacturing presence.
Katy Stech
April 13, 2010
Power tools and teaching diagrams at Boeing Co.'s state-funded training facility in North Charleston sit in the shadow of two giant, thin arcs -- the cross section of a 787 Dreamliner jet.
The composite half-circles will help future Boeing employees get used to their new jobs, where reporting to work means descending into a dark, hollow tube to drill holes and seal fasteners. A training video showed some employees crawling through oval passenger windows to get to their work spaces.
"Make 'em work upside down," said Jeff Stone, director of training and employee development for Boeing. "Make them walk into an airplane with tools and (debris collection) bags, and then walk out at the end of the day."
Company officials and state program directors showed off the aerospace giant's new training space Monday at Trident Technical College's main campus on Rivers Avenue.
The facility has a smattering of teaching stations throughout the 22,000-square-foot building, which formerly was used by Robert Bosch, DuPont and other manufacturers under similar state training programs.
The program has graduated 1,700 Boeing workers, and the company's new 787 assembly line, scheduled to open next year at Charleston International Airport, will employ nearly 4,000. It's unclear how much training activity will occur at the center during the next few months.
State training officials stopped taking job applications on Boeing's behalf in January, and they have 1,315 applicants who already have qualified for the training but haven't started the program. Many of them won't be hired by Boeing before the end of the year, Stone said.
The training-schedule slowdown also caused state officials to back out of a deal with the city of North Charleston, which offered to lease to the company the 56,000-square-foot former city hall building on Lacross Road. The state had planned to use the building to recruit and train Boeing employees, but officials said they don't need the extra space anymore.
The training program does not expect to solicit more applicants until early next year.
"We don't want to create false hope," said Jim Maxon, the Boeing project director for ReadySC, a division of the S.C. Technical College System.
Meanwhile, the local head count at Boeing's two existing 787 fuselage plants near the airport has surged, increasing from about 2,200 workers last summer to 3,000 as the company plants ramp up to a quicker production rate.
Boeing spokeswoman Candy Eslinger wouldn't say whether the new workers were hired locally or brought in from elsewhere. Stone said the company is trying to maintain a balance between experienced workers and fresh hires.
Regardless, the state training center is ready to accommodate new workers for their typical eight-week training program and subsequent certification classes.
On Monday, a round of instructors explained the ins and outs of aircraft manufacturing, from how to properly drill fasteners into composite plates to repacking tools into pre-assembled kits to ensure that nothing is left behind. Anytime a tool or a piece of equipment disappears in an aircraft plant it is considered a serious matter, instructor Tony Walters said.
"It could bring an aircraft down," he said.
One station will show workers how to squeeze sealants between metal pieces, cutting back on long-term wear and protecting against cabin pressure drops. The trick for employees, instructor Greg Bartle said, is to figure out how little of the product to use.
"Every bit they put on, it adds weight," he said.
The state program, which is projected to cost $33 million during the next 15 years, pays for a worker's training costs, including instruction time and tools. Boeing pays each trainee's wages.
Officials said the training program helped seal the deal for landing the company's second 787 assembly line. The other is near Seattle. While searching for plant sites, Boeing told state officials that it was worried about finding enough skilled workers in the Lowcountry, which doesn't have a long-standing aviation manufacturing presence.
Tuesday, April 6, 2010
One giant step
The Post and Courier
Tuesday, April 6, 2010
Boeing Co.'s new 787 assembly plant began to take shape Monday, with a lone 35-foot-long steel beam jutting straight from the ground.
After the piercing blast of an air horn, company executives and elected officials watched as the gray beam was lowered into place, a major milestone for Boeing's $750 million investment that's expected to bring several thousand jobs to North Charleston and put the Lowcountry on the map as a major aviation hub.
Work crews will install hundreds of the I-shaped girders during the next six months, slowly forming the skeleton for the planned 1.2 million-square-foot building that will reach 114 feet into the sky at its peak.
Despite abnormally heavy rainfall in recent months that sent construction managers scrambling, the massive new plant at Charleston International Airport is expected to open on time in July 2011, according to Boeing.
After that, nearly 4,000 workers are expected to report to the 787 final-assembly site, with major components made around the world entering one end of the building as individual pieces. At a rate of three a month, fully assembled, test-ready Dreamliners will emerge from the other end.
The beam put in place Monday will help support the northeast side of the factory.
"It looks like a simple thing, but it's a lot of work," said Marco Cavazzoni, the site's general manager, who sounded the air horn.
A towering yellow crane lifted the stick of steel off the ground and swung it over packed foundation-ready dirt. Construction workers carefully guided the post using ropes.
The beam was lowered onto a patch of concrete, the exposed top of a rebar-enforced stake that skewers the ground by roughly 80 feet. Within minutes, workers screwed on jumbo-size caps to secure it into place.
Over the coming months, crews will pour 1.08 million cubic feet of cement to lay the site's foundation -- enough to fill 12 Olympic-size swimming pools.
Boeing broke ground on the Dreamliner project in November. Days later, heavy-equipment operators had all but finished clearing 150 acres of dense forest behind Boeing's two existing Dreamliner fuselage plants.
Next month, workers will begin putting on the roof, and construction activity will peak early next year when the frame is enclosed.
The manufacturing plant will be anchored by two 75-foot-tall office towers on either side. Unlike most industrial spaces, design plans call for a strip of windows to let natural light into the building.
The entire structure has a footprint of 12 football fields. Two 787 Dreamliner jets, each with a wingspan of 197 feet, will be able to fit side by side inside.
Boeing's contractor said crews are working at a furious pace to make up for heavier-than-expected rainfall. Since November, the Charleston area has received a drenching 25.9 inches of rain, which is about 9 inches more than average, according to the National Weather Service.
At one point, construction officials ordered dump trucks to haul off the soaking dirt and bring in dry material.
Overall, 27 million cubic feet of earth have been moved around the site, or enough to fill 69,764 dump trucks.
So far, Boeing officials have spent more than 90 percent of the project's budget using South Carolina-based companies, much of which has gone toward the Greenville-based general contractor, BE&K/Turner Construction.
"That's a considerable number when you consider how specialized this building is," said Luther Cochrane, chief executive officer of BE&K.
He added that some features differ from the airplane assembly buildings at the company's manufacturing headquarters in Everett, Wash. It's going to take, for example, 400 tons of equipment to cool the building.
Tuesday, April 6, 2010
Boeing Co.'s new 787 assembly plant began to take shape Monday, with a lone 35-foot-long steel beam jutting straight from the ground.
After the piercing blast of an air horn, company executives and elected officials watched as the gray beam was lowered into place, a major milestone for Boeing's $750 million investment that's expected to bring several thousand jobs to North Charleston and put the Lowcountry on the map as a major aviation hub.
Work crews will install hundreds of the I-shaped girders during the next six months, slowly forming the skeleton for the planned 1.2 million-square-foot building that will reach 114 feet into the sky at its peak.
Despite abnormally heavy rainfall in recent months that sent construction managers scrambling, the massive new plant at Charleston International Airport is expected to open on time in July 2011, according to Boeing.
After that, nearly 4,000 workers are expected to report to the 787 final-assembly site, with major components made around the world entering one end of the building as individual pieces. At a rate of three a month, fully assembled, test-ready Dreamliners will emerge from the other end.
The beam put in place Monday will help support the northeast side of the factory.
"It looks like a simple thing, but it's a lot of work," said Marco Cavazzoni, the site's general manager, who sounded the air horn.
A towering yellow crane lifted the stick of steel off the ground and swung it over packed foundation-ready dirt. Construction workers carefully guided the post using ropes.
The beam was lowered onto a patch of concrete, the exposed top of a rebar-enforced stake that skewers the ground by roughly 80 feet. Within minutes, workers screwed on jumbo-size caps to secure it into place.
Over the coming months, crews will pour 1.08 million cubic feet of cement to lay the site's foundation -- enough to fill 12 Olympic-size swimming pools.
Boeing broke ground on the Dreamliner project in November. Days later, heavy-equipment operators had all but finished clearing 150 acres of dense forest behind Boeing's two existing Dreamliner fuselage plants.
Next month, workers will begin putting on the roof, and construction activity will peak early next year when the frame is enclosed.
The manufacturing plant will be anchored by two 75-foot-tall office towers on either side. Unlike most industrial spaces, design plans call for a strip of windows to let natural light into the building.
The entire structure has a footprint of 12 football fields. Two 787 Dreamliner jets, each with a wingspan of 197 feet, will be able to fit side by side inside.
Boeing's contractor said crews are working at a furious pace to make up for heavier-than-expected rainfall. Since November, the Charleston area has received a drenching 25.9 inches of rain, which is about 9 inches more than average, according to the National Weather Service.
At one point, construction officials ordered dump trucks to haul off the soaking dirt and bring in dry material.
Overall, 27 million cubic feet of earth have been moved around the site, or enough to fill 69,764 dump trucks.
So far, Boeing officials have spent more than 90 percent of the project's budget using South Carolina-based companies, much of which has gone toward the Greenville-based general contractor, BE&K/Turner Construction.
"That's a considerable number when you consider how specialized this building is," said Luther Cochrane, chief executive officer of BE&K.
He added that some features differ from the airplane assembly buildings at the company's manufacturing headquarters in Everett, Wash. It's going to take, for example, 400 tons of equipment to cool the building.
Monday, April 5, 2010
Boeing's big expansion advances
The Post and Courier
Katy Stech
April 5, 2010
Progress is humming at the Boeing Co. 's 787 Dreamliner assembly site in North Charleston.
Recent permit filings with the state Department of Health and Environmental Control show how the company's construction phases are advancing.
Company officials have applied to build a temporary office building, which will be made up of 40 trailer units that are bolted together. The space will be used by construction officials from general contractor BE&K/Turner Construction and Boeing project managers.
Construction crews also plan to set up a concrete batch plant, which will cut back on cement truck traffic, Boeing Charleston spokeswoman Candy Eslinger said in an e-mail.
Meanwhile, officials have also fixed what they referred to as a "parking crisis" at the company's two existing fuselage plants at Charleston International Airport.
"Due to a significant number of orders placed for (the 787) aircraft, Boeing has increased production virtually overnight, which has fortunately required them to hire a significant number of new employees," a site engineer wrote in a permit application. "With this increase in employees and overlapping of shifts, a short term parking crisis has resulted."
After the permit was approved, the company tripled the number of spaces available to a total of 1,200. Before the new spaces, workers had to park on grassy medians and makeshift spots between buildings when the parking lot filled.
The 787 assembly plant is set to open in mid-2011. The first plane is expected to roll off the production line in the first quarter of 2012.
In-migration
A Seattle construction company that has worked on more than 100 Boeing-related projects has opened a Lowcountry branch.
Schuchart Corporation, a 22-year-old firm, could be a familiar face to Boeing executives among contractors who want to do aerospace work throughout the Lowcountry. The company says it has worked with the aerospace giant on projects including industrial, manufacturing, stand alone buildings and more.
The company is angling to work with Boeing and its future suppliers in Charleston, according to a press release. Chris Burrell, a former development manager for CC&T Real Estate Services, will head the local operation.
Katy Stech
April 5, 2010
Progress is humming at the Boeing Co. 's 787 Dreamliner assembly site in North Charleston.
Recent permit filings with the state Department of Health and Environmental Control show how the company's construction phases are advancing.
Company officials have applied to build a temporary office building, which will be made up of 40 trailer units that are bolted together. The space will be used by construction officials from general contractor BE&K/Turner Construction and Boeing project managers.
Construction crews also plan to set up a concrete batch plant, which will cut back on cement truck traffic, Boeing Charleston spokeswoman Candy Eslinger said in an e-mail.
Meanwhile, officials have also fixed what they referred to as a "parking crisis" at the company's two existing fuselage plants at Charleston International Airport.
"Due to a significant number of orders placed for (the 787) aircraft, Boeing has increased production virtually overnight, which has fortunately required them to hire a significant number of new employees," a site engineer wrote in a permit application. "With this increase in employees and overlapping of shifts, a short term parking crisis has resulted."
After the permit was approved, the company tripled the number of spaces available to a total of 1,200. Before the new spaces, workers had to park on grassy medians and makeshift spots between buildings when the parking lot filled.
The 787 assembly plant is set to open in mid-2011. The first plane is expected to roll off the production line in the first quarter of 2012.
In-migration
A Seattle construction company that has worked on more than 100 Boeing-related projects has opened a Lowcountry branch.
Schuchart Corporation, a 22-year-old firm, could be a familiar face to Boeing executives among contractors who want to do aerospace work throughout the Lowcountry. The company says it has worked with the aerospace giant on projects including industrial, manufacturing, stand alone buildings and more.
The company is angling to work with Boeing and its future suppliers in Charleston, according to a press release. Chris Burrell, a former development manager for CC&T Real Estate Services, will head the local operation.
Monday, March 29, 2010
Boeing calls key 787 test results 'positive'
Associated Press
Monday, March 29, 2010
NEW YORK — Boeing Co. said the results of a key airworthiness test for its long delayed 787 are "positive," but it will be weeks before the aircraft maker can say whether it's a success.
The aircraft maker said Sunday the test involved flexing the jet's wings while applying loads to the frame to replicate 150 percent of the most extreme forces the airplane could experience in flight.
The wings were pushed up about 25 feet (7 1/2 meters) during the ground test performed at Boeing's Everett, Washington, factory.
The test took more than two hours, and thousands of pieces of data were collected to measure wing performance.
Boeing, based in Chicago, says the data will be reviewed over the next several weeks.
Boeing has been testing the plane and its systems for more than three months, after production delays and problems with carbon-fiber composite materials used in the plane put it nearly three years behind schedule. The first test plane made an unplanned landing last month after an engine lost thrust.
Japan's All Nippon Airways is scheduled for the first delivery of the 787 later this year. Boeing says airlines around the world have ordered 851 of the aircraft.
The largest 787 model has a range of up to 3,050 miles and can carry as many as 330 passengers.
Monday, March 29, 2010
NEW YORK — Boeing Co. said the results of a key airworthiness test for its long delayed 787 are "positive," but it will be weeks before the aircraft maker can say whether it's a success.
The aircraft maker said Sunday the test involved flexing the jet's wings while applying loads to the frame to replicate 150 percent of the most extreme forces the airplane could experience in flight.
The wings were pushed up about 25 feet (7 1/2 meters) during the ground test performed at Boeing's Everett, Washington, factory.
The test took more than two hours, and thousands of pieces of data were collected to measure wing performance.
Boeing, based in Chicago, says the data will be reviewed over the next several weeks.
Boeing has been testing the plane and its systems for more than three months, after production delays and problems with carbon-fiber composite materials used in the plane put it nearly three years behind schedule. The first test plane made an unplanned landing last month after an engine lost thrust.
Japan's All Nippon Airways is scheduled for the first delivery of the 787 later this year. Boeing says airlines around the world have ordered 851 of the aircraft.
The largest 787 model has a range of up to 3,050 miles and can carry as many as 330 passengers.
Thursday, March 4, 2010
Boeing is a frequent topic among local economic development groups
By JOSH McCANN
jmccann@islandpacket.com
Published Wednesday, March 3, 2010
South Carolina officials have hailed Boeing's plans to build an assembly plant for its 787 Dreamliner in North Charleston as the biggest economic development project in state history.
The company plans to invest hundreds of millions of dollars and create about 4,000 jobs.
So what does Boeing's announcement, spurred by hundreds of millions of dollars in incentives, mean for Beaufort and Jasper counties?
Key players in the deal and local officials addressed that question in three recent meetings.
Ric Tapp, lawyer at Nexsen Pruet
Tapp's firm worked for Boeing to help broker the deal with the state. He spoke Wednesday during a Hilton Head Island-Bluffton Chamber of Commerce business event at Hampton Hall.
He said the 230-plus suppliers that provide parts for Boeing's plane should bring about 16,000 additional jobs to South Carolina.
Some suppliers might seek locations near the assembly plant, Tapp said, but such proximity does not tend to be an important component of Boeing's supply chain.
"None of this is so just-in-time sensitive," he said.
Other suppliers might want better trained workers than those available here, Tapp said. "But your technical colleges can take care of that."
Kim Statler, executive director, Lowcountry Economic Network
Statler, head of a public-private partnership that recruits businesses to the region, was slated to speak at another event Wednesday at Belfair in greater Bluffton.
The session -- titled "BOEING SC: Dreams Take Flight" -- was about how incentives can boost business in South Carolina.
Statler said Boeing's plant dovetails with fellow aircraft manufacturer Gulfstream's existing facility in Savannah and the arrival of the Joint Strike Fighter, a next-generation military jet. Some of the jets are expected to be based at Marine Corps Air Station Beaufort by 2014.
Network officials, who have identified the aerospace and defense industry as one of its four focus areas, are scouring supply chains to find businesses that serve one or more of those aircraft.
Such businesses "now might find South Carolina a very appealing location for (its) next manufacturing facility," Statler said. "That's the kind of thing we're looking at."
Statler said network officials "have some good ideas" about prospects, but declined to elaborate.
Statler plans to make the case that aviation businesses should consider the Lowcountry when she travels with state officials to England for a major trade show in July.
The region's advantages include proximity to military bases, Interstate 95 and rail lines, Statler said. CEOs also enjoy the coastal quality of life, she said.
Disadvantages include the high cost of property and "very limited" existing facilities available for light manufacturing.
Unlike Tapp, Statler said the area's workforce should be an asset because a steady rotation of people leave local military bases with aviation experience.
She cautioned the network's strategy might not bear fruit immediately, but she said the long-term outlook is promising because Boeing's arrival allows the region to seek businesses it couldn't before.
"Fifty percent of the battle is making it known what your emphasis is," Statler said.
David Ginn, president and CEO, Charleston Regional Economic Development Alliance
Ginn's agency works to develop the economies of Charleston, Berkeley and Dorchester counties. He spoke Feb. 16 at a Business 4 Breakfast event organized by the Beaufort Regional Chamber of Commerce at the Hilton Garden Inn.
Ginn said Wednesday local communities are ideally situated to capitalize on the presence of both nearby aircraft manufacturers.
When asked what benefit Boeing's plant might provide Beaufort and Jasper counties, Ginn said: "I would think Jasper County's position along I-95 and close proximity to both Charleston and Savannah would make it a good location for suppliers serving both the Boeing operation in our region and Gulfstream Aerospace in Savannah."
jmccann@islandpacket.com
Published Wednesday, March 3, 2010
South Carolina officials have hailed Boeing's plans to build an assembly plant for its 787 Dreamliner in North Charleston as the biggest economic development project in state history.
The company plans to invest hundreds of millions of dollars and create about 4,000 jobs.
So what does Boeing's announcement, spurred by hundreds of millions of dollars in incentives, mean for Beaufort and Jasper counties?
Key players in the deal and local officials addressed that question in three recent meetings.
Ric Tapp, lawyer at Nexsen Pruet
Tapp's firm worked for Boeing to help broker the deal with the state. He spoke Wednesday during a Hilton Head Island-Bluffton Chamber of Commerce business event at Hampton Hall.
He said the 230-plus suppliers that provide parts for Boeing's plane should bring about 16,000 additional jobs to South Carolina.
Some suppliers might seek locations near the assembly plant, Tapp said, but such proximity does not tend to be an important component of Boeing's supply chain.
"None of this is so just-in-time sensitive," he said.
Other suppliers might want better trained workers than those available here, Tapp said. "But your technical colleges can take care of that."
Kim Statler, executive director, Lowcountry Economic Network
Statler, head of a public-private partnership that recruits businesses to the region, was slated to speak at another event Wednesday at Belfair in greater Bluffton.
The session -- titled "BOEING SC: Dreams Take Flight" -- was about how incentives can boost business in South Carolina.
Statler said Boeing's plant dovetails with fellow aircraft manufacturer Gulfstream's existing facility in Savannah and the arrival of the Joint Strike Fighter, a next-generation military jet. Some of the jets are expected to be based at Marine Corps Air Station Beaufort by 2014.
Network officials, who have identified the aerospace and defense industry as one of its four focus areas, are scouring supply chains to find businesses that serve one or more of those aircraft.
Such businesses "now might find South Carolina a very appealing location for (its) next manufacturing facility," Statler said. "That's the kind of thing we're looking at."
Statler said network officials "have some good ideas" about prospects, but declined to elaborate.
Statler plans to make the case that aviation businesses should consider the Lowcountry when she travels with state officials to England for a major trade show in July.
The region's advantages include proximity to military bases, Interstate 95 and rail lines, Statler said. CEOs also enjoy the coastal quality of life, she said.
Disadvantages include the high cost of property and "very limited" existing facilities available for light manufacturing.
Unlike Tapp, Statler said the area's workforce should be an asset because a steady rotation of people leave local military bases with aviation experience.
She cautioned the network's strategy might not bear fruit immediately, but she said the long-term outlook is promising because Boeing's arrival allows the region to seek businesses it couldn't before.
"Fifty percent of the battle is making it known what your emphasis is," Statler said.
David Ginn, president and CEO, Charleston Regional Economic Development Alliance
Ginn's agency works to develop the economies of Charleston, Berkeley and Dorchester counties. He spoke Feb. 16 at a Business 4 Breakfast event organized by the Beaufort Regional Chamber of Commerce at the Hilton Garden Inn.
Ginn said Wednesday local communities are ideally situated to capitalize on the presence of both nearby aircraft manufacturers.
When asked what benefit Boeing's plant might provide Beaufort and Jasper counties, Ginn said: "I would think Jasper County's position along I-95 and close proximity to both Charleston and Savannah would make it a good location for suppliers serving both the Boeing operation in our region and Gulfstream Aerospace in Savannah."
Wednesday, March 3, 2010
Boeing chief tells why S.C. chosen
The State
Wednesday, March 3, 2010
By DOMINIC GATES - Seattle Times
SEATTLE - Jim Albaugh, chief executive of Boeing Commercial Airplanes, conceded that the choice of North Charleston, S.C., over the Everett, Wash., for a new 787 Dreamliner assembly line is expensive and risky.
In South Carolina, Boeing must build a new factory and hire workers from an inexperienced labor pool.
But in an exclusive interview, Albaugh said the cost of the strike at its Puget Sound operations in fall 2008 outweighed that.
Albaugh - who last fall recommended to the board that it choose North Charleston - said Washington state is his preferred location for building future airplanes.
He said Boeing didn't pick South Carolina for expansion last year because of Washington's tax rates or regulatory system. Nor was it a question of chasing low wages.
"The overriding factor was not the business climate. And it was not the wages we are paying today," Albaugh said. "It was that we can't afford to have a work stoppage every three years. And we can't afford to continue the rate of escalation of wages."
The 787 assembly line is South Carolina's biggest economic development announcement, with Boeing investing $750 million and hiring 3,800 workers. Suppliers are expected to add thousands more jobs.
Although many union members believe the decision to go to Charleston was made long before last fall's final negotiations with the Machinists, Albaugh insisted it was not.
"I went into this feeling that if we could get it done here, we could save the company a lot of money," Albaugh said. "There were two things we needed, and we couldn't get those things done."
He repeatedly made clear that those two things - first, no strikes; second, lowered escalation of wages in the future - remain deal breakers for placing future work here.
Without that, he said, the company won't be competitive, not only against Airbus, but also against looming threats from plane makers in Canada, Brazil, China and perhaps Russia.
"This is a great work force here. They are magicians," Albaugh said. "My job is to make sure they have jobs five years from now, 10 years from now, 20 years from now.
"If we don't have a company, nobody has jobs," he said. "That's the worst outcome for Puget Sound."
Boeing's next new airplane after the Dreamliner will determine the future of aerospace in the Puget Sound region.
Albaugh said that when the time comes to choose a final assembly site for that plane, he doesn't want to hold an open competition as the company did in 2003 for the 787 Dreamliner.
"If I'm involved, I'm not going to have a competition like that," Albaugh said. "The commitment I can give you is that the first preference is to put the work here."
Wednesday, March 3, 2010
By DOMINIC GATES - Seattle Times
SEATTLE - Jim Albaugh, chief executive of Boeing Commercial Airplanes, conceded that the choice of North Charleston, S.C., over the Everett, Wash., for a new 787 Dreamliner assembly line is expensive and risky.
In South Carolina, Boeing must build a new factory and hire workers from an inexperienced labor pool.
But in an exclusive interview, Albaugh said the cost of the strike at its Puget Sound operations in fall 2008 outweighed that.
Albaugh - who last fall recommended to the board that it choose North Charleston - said Washington state is his preferred location for building future airplanes.
He said Boeing didn't pick South Carolina for expansion last year because of Washington's tax rates or regulatory system. Nor was it a question of chasing low wages.
"The overriding factor was not the business climate. And it was not the wages we are paying today," Albaugh said. "It was that we can't afford to have a work stoppage every three years. And we can't afford to continue the rate of escalation of wages."
The 787 assembly line is South Carolina's biggest economic development announcement, with Boeing investing $750 million and hiring 3,800 workers. Suppliers are expected to add thousands more jobs.
Although many union members believe the decision to go to Charleston was made long before last fall's final negotiations with the Machinists, Albaugh insisted it was not.
"I went into this feeling that if we could get it done here, we could save the company a lot of money," Albaugh said. "There were two things we needed, and we couldn't get those things done."
He repeatedly made clear that those two things - first, no strikes; second, lowered escalation of wages in the future - remain deal breakers for placing future work here.
Without that, he said, the company won't be competitive, not only against Airbus, but also against looming threats from plane makers in Canada, Brazil, China and perhaps Russia.
"This is a great work force here. They are magicians," Albaugh said. "My job is to make sure they have jobs five years from now, 10 years from now, 20 years from now.
"If we don't have a company, nobody has jobs," he said. "That's the worst outcome for Puget Sound."
Boeing's next new airplane after the Dreamliner will determine the future of aerospace in the Puget Sound region.
Albaugh said that when the time comes to choose a final assembly site for that plane, he doesn't want to hold an open competition as the company did in 2003 for the 787 Dreamliner.
"If I'm involved, I'm not going to have a competition like that," Albaugh said. "The commitment I can give you is that the first preference is to put the work here."
Monday, March 1, 2010
Boeing Supplies Could be 10-ro-15
The Post and Courier
March 1, 2010
John McDermott
Boeing Co. won't be nailed down on the specific number of suppliers that could follow its 787 Dreamliner assembly plant to the Charleston area, but another Fortune 500 business that's almost certainly working to provide factory sites to those vendors has aired its own guesstimate.
During its latest earnings call with analysts, MeadWestvaco Corp. president Jim Buzzard gave listeners an update on the packaging giant's North Charleston-based real estate development arm.
'We unveiled the master plan for our large East Edisto property, which was met with a very positive reaction from the community in South Carolina,' he said. 'We're already working with local governments on long-term development agreements and infrastructure plans and we expect that work to continue through 2010.'
The talk then turned to the large industrial park near Summerville that MeadWestvaco is developing with the Rockefeller Group. Buzzard noted that the joint venture had landed its first tenant, tire importer TBC Corp.
'We are actively pursuing prospective tenants for a second site on this property as well as other industrial and development projects,' he said. 'The long-term dynamics for these properties are very strong, especially with the recent announcement that Boeing will open a second assembly plant for their Dreamliner aircraft in the North Charleston area and bring as many as 10 to 15 suppliers to the region along with them.'
March 1, 2010
John McDermott
Boeing Co. won't be nailed down on the specific number of suppliers that could follow its 787 Dreamliner assembly plant to the Charleston area, but another Fortune 500 business that's almost certainly working to provide factory sites to those vendors has aired its own guesstimate.
During its latest earnings call with analysts, MeadWestvaco Corp. president Jim Buzzard gave listeners an update on the packaging giant's North Charleston-based real estate development arm.
'We unveiled the master plan for our large East Edisto property, which was met with a very positive reaction from the community in South Carolina,' he said. 'We're already working with local governments on long-term development agreements and infrastructure plans and we expect that work to continue through 2010.'
The talk then turned to the large industrial park near Summerville that MeadWestvaco is developing with the Rockefeller Group. Buzzard noted that the joint venture had landed its first tenant, tire importer TBC Corp.
'We are actively pursuing prospective tenants for a second site on this property as well as other industrial and development projects,' he said. 'The long-term dynamics for these properties are very strong, especially with the recent announcement that Boeing will open a second assembly plant for their Dreamliner aircraft in the North Charleston area and bring as many as 10 to 15 suppliers to the region along with them.'
Thursday, February 25, 2010
ACAS Landing Gear Services Announces New Facility in Marion County
COLUMBIA, S.C. – February 25, 2010 – The South Carolina Department of Commerce, Marion County and North Eastern Strategic Alliance (NESA) today announced that ACAS Landing Gear Services, a full-service repair and overhaul company with extensive capabilities to service a variety of aircraft, will open new operations in Marion County. The $5 million investment is expected to generate 300 new jobs over the next five years.
“Our company continues to see its customer base expand as we grow our market share. The facility in Marion County will allow us to meet increasing customer demand for our services. South Carolina provides an excellent fit for us, with a positive business environment and a top-notch workforce. We look forward to opening our new operations there and appreciate all the support from state and local officials,” said Gary Partin, CEO of ACAS Landing Gear Services.
ACAS’s new facility, located in the former Sara Lee building in Marion, will focus on re-manufacturing landing gear and landing gear components. ACAS currently services the Boeing 707, 727, 737, 747, 757, 767 and 777. The company also provides aircraft capabilities for Airbus and an array of military and commercial aircraft.
“ACAS’s decision to make a substantial capital and jobs investment in our state is a telling reminder of South Carolina’s growing role as a hub for the aerospace industry. It’s also an indication that we’re making significant progress toward bettering our state’s business climate and making us more competitive by lowering taxes, easing regulatory burdens, and keeping South Carolina a right-to-work state. I’d applaud the hard-working team at Commerce and the local economic developers for their efforts in bringing job opportunities to Marion County,” said Gov. Mark Sanford.
South Carolina is home to more than 100 aerospace-related companies investing billions of dollars in the state and operating in 23 of South Carolina’s 46 counties. These companies employ over 16,000 South Carolinians. Last fall, Boeing announced it will locate the company’s second final assembly facility to support the 787 Dreamliner program in North Charleston. Once completed, the facility will be one of three final assembly facilities for wide-body jets in the world.
“Today’s announcement is another indication that positive things are happening in Marion County. ACAS’s investment in Marion County is an adaptive reuse of an existing structure that will provide the company with an unbelievably competitive location and a skilled workforce. This is the second large jobs announcement in Marion County in just a few months, which proves that hard work and enthusiasm can go a long way and I would thank County Council Chairman John Atkinson and Rodney Berry for their efforts to make a real difference in Marion County. We welcome ACAS to South Carolina and look forward to a long and mutually beneficial relationship with them in the years ahead,” said Joe Taylor, Secretary of Commerce.
“The most important thing I can do this legislative session is work with our local and state leadership teams to bring jobs to our citizens. ACAS’s announcement of their new operations in Marion County is another example of what can happen when everyone works together to attain a common goal - putting our workforce back to work,” said Senator Kent Williams (S.C. Senate District 30).
“I want to thank Gov. Sanford, the Dept. of Commerce, Rodney Berry and everyone else that has helped make this possible. Marion County has a great workforce that is eager to get back to work. This is very good news,” said Rep. Jim Battle (S.C. House District 57).
“Teamwork was the prevailing dynamic that won this project and it was performed firing on all cylinders by all entities. The announcement by ACAS substantiates that Marion County is back in the game competing for high quality skilled jobs. We welcome and embrace ACAS with a full commitment of continual support,” said Rodney Berry, executive director of the Marion County Economic Development Commission.
“We are delighted to usher in yet another outstanding company to the NESA Region,” said state Sen. J. Yancey McGill, chairman of NESA. “The announcement of ACAS will provide much needed jobs and capital investment for Marion County and is a further testament to the business-friendly environment of the NESA Region, the availability of a skilled workforce, and the dedication of this region to economic development.”
“When we worked to recruit Boeing’s second final assembly facility for the 787 to Charleston, we were confident that it would lead to a growth in aviation investments throughout the state and to see the first announcement come to the Pee Dee region is especially exciting. ACAS’s announcement also reinforces that companies and the aviation industry can be successful and flourish anywhere in our state,” said Sen. Hugh Leatherman, chairman Senate Finance Committee.
The company plans to begin hiring for available positions in March. Individuals interested in job opportunities are encouraged to contact the Marion One-Stop Workforce Center at: 843.423.8288 or visit their offices in Marion at 100 Northeast Court Street. The company will also join Marion County and state officials in an announcement ceremony in mid-March.
ACAS Landing Gear Services is a full service repair and overhaul facility with an extensive inventory and a wide range of capabilities. ACAS provides fast turnaround times and cost-effective repairs for more than 5,000 to over 20,000 types of hydraulic, pneumatic, electrical and electronic aircraft accessories. For more information about the company, visit www.acas.aero.
“Our company continues to see its customer base expand as we grow our market share. The facility in Marion County will allow us to meet increasing customer demand for our services. South Carolina provides an excellent fit for us, with a positive business environment and a top-notch workforce. We look forward to opening our new operations there and appreciate all the support from state and local officials,” said Gary Partin, CEO of ACAS Landing Gear Services.
ACAS’s new facility, located in the former Sara Lee building in Marion, will focus on re-manufacturing landing gear and landing gear components. ACAS currently services the Boeing 707, 727, 737, 747, 757, 767 and 777. The company also provides aircraft capabilities for Airbus and an array of military and commercial aircraft.
“ACAS’s decision to make a substantial capital and jobs investment in our state is a telling reminder of South Carolina’s growing role as a hub for the aerospace industry. It’s also an indication that we’re making significant progress toward bettering our state’s business climate and making us more competitive by lowering taxes, easing regulatory burdens, and keeping South Carolina a right-to-work state. I’d applaud the hard-working team at Commerce and the local economic developers for their efforts in bringing job opportunities to Marion County,” said Gov. Mark Sanford.
South Carolina is home to more than 100 aerospace-related companies investing billions of dollars in the state and operating in 23 of South Carolina’s 46 counties. These companies employ over 16,000 South Carolinians. Last fall, Boeing announced it will locate the company’s second final assembly facility to support the 787 Dreamliner program in North Charleston. Once completed, the facility will be one of three final assembly facilities for wide-body jets in the world.
“Today’s announcement is another indication that positive things are happening in Marion County. ACAS’s investment in Marion County is an adaptive reuse of an existing structure that will provide the company with an unbelievably competitive location and a skilled workforce. This is the second large jobs announcement in Marion County in just a few months, which proves that hard work and enthusiasm can go a long way and I would thank County Council Chairman John Atkinson and Rodney Berry for their efforts to make a real difference in Marion County. We welcome ACAS to South Carolina and look forward to a long and mutually beneficial relationship with them in the years ahead,” said Joe Taylor, Secretary of Commerce.
“The most important thing I can do this legislative session is work with our local and state leadership teams to bring jobs to our citizens. ACAS’s announcement of their new operations in Marion County is another example of what can happen when everyone works together to attain a common goal - putting our workforce back to work,” said Senator Kent Williams (S.C. Senate District 30).
“I want to thank Gov. Sanford, the Dept. of Commerce, Rodney Berry and everyone else that has helped make this possible. Marion County has a great workforce that is eager to get back to work. This is very good news,” said Rep. Jim Battle (S.C. House District 57).
“Teamwork was the prevailing dynamic that won this project and it was performed firing on all cylinders by all entities. The announcement by ACAS substantiates that Marion County is back in the game competing for high quality skilled jobs. We welcome and embrace ACAS with a full commitment of continual support,” said Rodney Berry, executive director of the Marion County Economic Development Commission.
“We are delighted to usher in yet another outstanding company to the NESA Region,” said state Sen. J. Yancey McGill, chairman of NESA. “The announcement of ACAS will provide much needed jobs and capital investment for Marion County and is a further testament to the business-friendly environment of the NESA Region, the availability of a skilled workforce, and the dedication of this region to economic development.”
“When we worked to recruit Boeing’s second final assembly facility for the 787 to Charleston, we were confident that it would lead to a growth in aviation investments throughout the state and to see the first announcement come to the Pee Dee region is especially exciting. ACAS’s announcement also reinforces that companies and the aviation industry can be successful and flourish anywhere in our state,” said Sen. Hugh Leatherman, chairman Senate Finance Committee.
The company plans to begin hiring for available positions in March. Individuals interested in job opportunities are encouraged to contact the Marion One-Stop Workforce Center at: 843.423.8288 or visit their offices in Marion at 100 Northeast Court Street. The company will also join Marion County and state officials in an announcement ceremony in mid-March.
ACAS Landing Gear Services is a full service repair and overhaul facility with an extensive inventory and a wide range of capabilities. ACAS provides fast turnaround times and cost-effective repairs for more than 5,000 to over 20,000 types of hydraulic, pneumatic, electrical and electronic aircraft accessories. For more information about the company, visit www.acas.aero.
Monday, February 8, 2010
Aviation training plan expands for HGTC
The Sun News
February 4, 2010
Horry-Georgetown Technical College and the Pittsburgh Institute of Aeronautics have expanded their plan to partner on an aviation-related training program, said Marilyn Fore, senior vice president for academic affairs at HGTC.
Talks held Tuesday and Wednesday have led to more options for an associate of applied science degree, with emphasis in aircraft maintenance power plant, aircraft maintenance air frame, aircraft electronics (avionics) and flight training, Fore said.
"We're very excited," said Fore, who added that details still are being worked out concerning how the program would be structured. "This would provide the training for a student to sit for the [Federal Aviation Administration] certification in any of those four areas."
PIA applied to the FAA in September for approval to offer the courses here and is awaiting a decision, Fore said.
She said approvals from HGTC's area commissioners still are required, and notifications must be made to the S.C. Commission on Higher Education and to the Southern Association of Colleges and Schools, HGTC's regional accreditation body.
It takes about a year to get the necessary approvals and have the program in place, Fore said.
"That's where the technical colleges are so responsive to building programs that support economic development," she said.
"We can do it fairly quickly ... and we have experts in the area to provide information and make sure we have what we need."
Jimmy Yahnis, chairman of the board of directors for the Myrtle Beach Regional Economic Development Corp., said that HGTC's program lays a good foundation for the area.
"It's a great example of everyone working together for the betterment of the community," Yahnis said.
"It sends a signal to companies that we're in favor of doing whatever it takes to bring them into town and shows a willingness to support the industry."
Horry County Schools and Horry County Council both have offered support in HGTC's development of an aviation program.
"We are in discussions with the Horry County school district regarding how we can connect with the training of junior and senior students," Fore said. "We would be delighted to go forward with them."
Horry County School Board member Joe DeFeo, District 3, said there has been discussion about sharing resources, possibly for final testing, which in aircraft maintenance is hands on and can take up to three days. He said he hopes HCS Superintendent Cindy Elsberry will hold meetings in the next couple of weeks to see how much of a partnership is possible.
Interest has been high in aviation industry careers since Boeing announced plans to locate a $750 million facility with thousands of jobs in North Charleston. HGTC's program would give residents the skills to work for a company such as Boeing and increase the employees available to work at such a facility.
"PIA is one of the best aviation schools in the United States," Fore said. "It's going to be a rigorous program of study, but PIA is experienced at this, and they will be valuable with their reputation in teaching these specialty areas."
February 4, 2010
Horry-Georgetown Technical College and the Pittsburgh Institute of Aeronautics have expanded their plan to partner on an aviation-related training program, said Marilyn Fore, senior vice president for academic affairs at HGTC.
Talks held Tuesday and Wednesday have led to more options for an associate of applied science degree, with emphasis in aircraft maintenance power plant, aircraft maintenance air frame, aircraft electronics (avionics) and flight training, Fore said.
"We're very excited," said Fore, who added that details still are being worked out concerning how the program would be structured. "This would provide the training for a student to sit for the [Federal Aviation Administration] certification in any of those four areas."
PIA applied to the FAA in September for approval to offer the courses here and is awaiting a decision, Fore said.
She said approvals from HGTC's area commissioners still are required, and notifications must be made to the S.C. Commission on Higher Education and to the Southern Association of Colleges and Schools, HGTC's regional accreditation body.
It takes about a year to get the necessary approvals and have the program in place, Fore said.
"That's where the technical colleges are so responsive to building programs that support economic development," she said.
"We can do it fairly quickly ... and we have experts in the area to provide information and make sure we have what we need."
Jimmy Yahnis, chairman of the board of directors for the Myrtle Beach Regional Economic Development Corp., said that HGTC's program lays a good foundation for the area.
"It's a great example of everyone working together for the betterment of the community," Yahnis said.
"It sends a signal to companies that we're in favor of doing whatever it takes to bring them into town and shows a willingness to support the industry."
Horry County Schools and Horry County Council both have offered support in HGTC's development of an aviation program.
"We are in discussions with the Horry County school district regarding how we can connect with the training of junior and senior students," Fore said. "We would be delighted to go forward with them."
Horry County School Board member Joe DeFeo, District 3, said there has been discussion about sharing resources, possibly for final testing, which in aircraft maintenance is hands on and can take up to three days. He said he hopes HCS Superintendent Cindy Elsberry will hold meetings in the next couple of weeks to see how much of a partnership is possible.
Interest has been high in aviation industry careers since Boeing announced plans to locate a $750 million facility with thousands of jobs in North Charleston. HGTC's program would give residents the skills to work for a company such as Boeing and increase the employees available to work at such a facility.
"PIA is one of the best aviation schools in the United States," Fore said. "It's going to be a rigorous program of study, but PIA is experienced at this, and they will be valuable with their reputation in teaching these specialty areas."
Friday, January 29, 2010
Area faces tough competition for supplier jobs
Boeing Co.'s 787 Dreamliner assembly line came with the hope of hundreds of supplier jobs that will crop up to support the aerospace giant as it pieces together the new passenger jets in North Charleston.
But those jobs aren't necessarily coming to the Lowcountry.
Because the aerospace industry tends to scatter its supply chain, vendors that work on the Dreamliner project could easily locate a short drive up the interstate to Orangeburg County, which has cheaper land, lower wages and an aggressive economic development strategy.
Or they could open up in Savannah, where Gulfstream Aerospace Corp. employs thousands of skilled aviation workers and where local officials enjoy nothing more than taking business from the Charleston area.
The possibility of having to compete with other areas for Boeing supplier jobs has local economic development officials gearing up for a fight.
"Do we want to turn this into a blood bath? Absolutely not," said Charleston County Councilman Elliott Summey, who oversees the county's economic development committee. "But Charleston County is going to be competitive. ... We're not going to take this lightly."
Boeing hasn't yet put an estimate on the number of supplier companies that will need to be near the massive new assembly line under construction at Charleston International Airport.
"We don't have a sense for that," said Boeing Charleston spokeswoman Candy Eslinger.
Local commercial brokers and economic development officials say Washington-based suppliers have already begun to shop around the region for space. The question that remains is how far they'll be able to locate from the Boeing campus.
Economic development officials compare the Boeing investment to BMW's assembly plant in Greer, which has generated thousands of spinoff jobs from vendors and other businesses. But unlike an auto manufacturer that needs lots of parts right away -- a manufacturing practice termed "just in time" -- Boeing will be producing fewer planes and therefore have more time to round up parts from its suppliers.
And Boeing is not a company that's hesitant to scatter its supply chain. Parts of the 787 already are being flown from all over the world to Seattle for final assembly: wing tips from Korea, passenger-entry doors from France and the wing's movable back edges from Australia. Fuselage sections are made in North Charleston.
"You don't have to be that close," said Ed McCallum, a Greenville site consultant who works with companies looking to locate new operations throughout the Southeast. "Where they go -- whether it's an hour away or two, three hours away -- it doesn't matter for a major supplier."
McCallum pointed out that the Savannah region is home to Gulfstream, a private-aircraft manufacturer that employs 6,000 in that area. That operation shows that aerospace skills run deep within the local workforce, he said.
The agency responsible for recruiting new jobs and industry to South Carolina is keenly aware of the competition for Boeing suppliers that want to be relatively close to the North Charleston plant.
"We do believe there are opportunities, but I do think that you can make the assumption that North Carolina and Georgia will be pursuing those opportunities aggressively, too," said Kara Borie, spokeswoman for the S.C. Commerce Department of Commerce.
McCallum said a closer competitor for the Charleston region is Orangeburg County, which has a business recruitment team led by former Commerce official Gregg Robinson. That region has large swaths of ready-to-develop land, cheap utility rates and two major interstate highways.
"You can't count them out." McCallum said. "It's pretty common knowledge they're aggressive," he said.
Robinson confirmed that some Boeing suppliers have already looked at locating in Orangeburg, but he declined to give specifics.
"We have had a decent amount of interest as a result of the announcement, and everybody's excited about the opportunity," said Robinson, who called his rivalry with his Lowcountry counterparts "a friendly competition."
But those jobs aren't necessarily coming to the Lowcountry.
Because the aerospace industry tends to scatter its supply chain, vendors that work on the Dreamliner project could easily locate a short drive up the interstate to Orangeburg County, which has cheaper land, lower wages and an aggressive economic development strategy.
Or they could open up in Savannah, where Gulfstream Aerospace Corp. employs thousands of skilled aviation workers and where local officials enjoy nothing more than taking business from the Charleston area.
The possibility of having to compete with other areas for Boeing supplier jobs has local economic development officials gearing up for a fight.
"Do we want to turn this into a blood bath? Absolutely not," said Charleston County Councilman Elliott Summey, who oversees the county's economic development committee. "But Charleston County is going to be competitive. ... We're not going to take this lightly."
Boeing hasn't yet put an estimate on the number of supplier companies that will need to be near the massive new assembly line under construction at Charleston International Airport.
"We don't have a sense for that," said Boeing Charleston spokeswoman Candy Eslinger.
Local commercial brokers and economic development officials say Washington-based suppliers have already begun to shop around the region for space. The question that remains is how far they'll be able to locate from the Boeing campus.
Economic development officials compare the Boeing investment to BMW's assembly plant in Greer, which has generated thousands of spinoff jobs from vendors and other businesses. But unlike an auto manufacturer that needs lots of parts right away -- a manufacturing practice termed "just in time" -- Boeing will be producing fewer planes and therefore have more time to round up parts from its suppliers.
And Boeing is not a company that's hesitant to scatter its supply chain. Parts of the 787 already are being flown from all over the world to Seattle for final assembly: wing tips from Korea, passenger-entry doors from France and the wing's movable back edges from Australia. Fuselage sections are made in North Charleston.
"You don't have to be that close," said Ed McCallum, a Greenville site consultant who works with companies looking to locate new operations throughout the Southeast. "Where they go -- whether it's an hour away or two, three hours away -- it doesn't matter for a major supplier."
McCallum pointed out that the Savannah region is home to Gulfstream, a private-aircraft manufacturer that employs 6,000 in that area. That operation shows that aerospace skills run deep within the local workforce, he said.
The agency responsible for recruiting new jobs and industry to South Carolina is keenly aware of the competition for Boeing suppliers that want to be relatively close to the North Charleston plant.
"We do believe there are opportunities, but I do think that you can make the assumption that North Carolina and Georgia will be pursuing those opportunities aggressively, too," said Kara Borie, spokeswoman for the S.C. Commerce Department of Commerce.
McCallum said a closer competitor for the Charleston region is Orangeburg County, which has a business recruitment team led by former Commerce official Gregg Robinson. That region has large swaths of ready-to-develop land, cheap utility rates and two major interstate highways.
"You can't count them out." McCallum said. "It's pretty common knowledge they're aggressive," he said.
Robinson confirmed that some Boeing suppliers have already looked at locating in Orangeburg, but he declined to give specifics.
"We have had a decent amount of interest as a result of the announcement, and everybody's excited about the opportunity," said Robinson, who called his rivalry with his Lowcountry counterparts "a friendly competition."
Friday, January 22, 2010
Startup funding may help lure Southwest here, officials say
By David Dykes
Business writer
An Upstate lawmaker this week is expected to propose initiatives to boost airline competition at the state’s airports, including Greenville-Spartanburg International Airport, where efforts are underway to lure discount carrier Southwest Airlines.
State Rep. Bill Wylie, a Simpsonville Republican, said the legislation he expects to introduce will center on creating a state-administered fund to help an airline offset startup costs at any of South Carolina’s commercial airports.
While Wylie said his measure won’t target a specific airport, local officials believe it will be crucial to their efforts to bring Southwest to GSP — and put downward pressure on local airfares that are among the highest in the nation.
Wylie said he has lined up several sponsors to support the legislation, which would include a fund of approximately $15 million to reimburse certain losses for up to 24 months based on an agreement the airport and a carrier believe is equitable for both sides.
Local business and community officials hope to attract Southwest this year, but an airline spokeswoman said last week “there is no imminent plan” to announce any additional new service for 2010.
“First and foremost with Southwest, it’s not done, and it’s not dead,” Dave Edwards, GSP’s executive director, said in an interview.
“There’s always a possibility of Southwest being able to come in 2010,” he said. “Part of that would be can we assemble something that is of a nature that attracts Southwest to come to the community? I don’t think there’s any question that we have the market here, we have the pent-up desire of this community to have a low-cost, low-fare carrier in the market.”
Airline officials have confirmed that Southwest, the biggest U.S. discount carrier, sent its scheduling and planning officials to Greenville. The officials cautioned that airline representatives have attended similar recruitment meetings in many other cities.
In a statement last week, Southwest’s spokeswoman, Ashley Rogers, said, “Our new Panama City Beach (Fla.) service that begins in May is the only new service that’s scheduled for 2010.”
“The leadership here at Southwest is always open to exploring new areas and will continue to monitor the economic environment in an effort to make the best decisions for our customers and our employees,” Rogers said.
A spokesman for Gov. Mark Sanford said the Governor’s Office likely would wait to see the final language before deciding whether to support Wylie’s legislation.
The spokesman, Ben Fox, said, “carve-out incentives of this nature can be troublesome for some” and would need to go “through a rigorous cost-benefit analysis to make sure the taxpayer is protected alongside potentially boosting the local and state economy.”
Local business and community leaders are eager to bring Southwest and its large jet service to GSP, where regional carriers and smaller commuter aircraft dominate.
High airfares and a lack of western routes are causing two of every three potential passengers to bypass GSP in favor of flights in other cities, primarily Charlotte and Atlanta, according to business leaders and airport officials.
Currently, Allegiant, a low-fare carrier, provides service from GSP to several locations in Florida.
Edwards said GSP needs to broaden the airport’s discount-carrier offerings, particularly for business travelers who often fly on short notice.
“There is no question that people know that we’ve been in dialogue with Southwest,” he said. “We are trying to develop a partnership arrangement with the community, including the state Legislature, in order to assemble a package that might be attractive enough to secure service from Southwest at some point in the future. That’s our goal at this point — to try to get that in place.
“Most airlines will tell you for them to start new service at an airport, the station cost at the airport to install equipment, phones, get all of their build-out done for facilities usually runs a half-million dollars to $600,000,” Edwards said.
For airport operators, it’s important to “minimize that cost of entry for them,” and “basically just give them a turn-key operation that they can walk in the door with their staff, bring their ancillary equipment to the table, but have all of the hard infrastructure in place,” he said.
“That creates a much better situation for them to entertain coming into the market,” he said.
Edwards came to GSP last July after working at Asheville, where he helped attract more airline service, including discount carrier AirTran Airways.
It was a similar situation to GSP’s, Edwards said.
Airport officials in Asheville wanted more competition and developed an air-service plan to identify incentives that were allowed under FAA regulations, including marketing dollars and fee waivers, he said.
Airports can’t provide direct cash subsidies or direct revenue guarantees to an airline to ensure they’re going to be profitable in a market, Edwards said.
Overall, it took about five years of discussions with AirTran before Asheville secured the airline’s service, he said.
“That’s a long period of courtship,” Edwards said, “and it’s a constant discussion that you have to have.”
In the end, Asheville provided AirTran — as part of the airport’s air-service incentive policy — with marketing dollars and fee waivers and did some facility improvements “that would not only benefit them in their startup but also would enable us to help lure some other airlines to the table in the future,” Edwards said.
AirTran officials couldn’t be reached for comment.
These days, carriers are looking for an edge, and increasingly, funds need to go to keeping their costs down, Edwards said.
“It used to be there were no incentives required, essentially, to get air service to the table,” he said.
“Now, that’s become the standard, and now we’re kind of moving into this next phase, because of the economic climate, of having to help a carrier mitigate their risk in the first two or three years of providing service in order to give them an opportunity to get up and running and become successful in a market,” Edwards said.
Wylie has said his legislation won’t be geared to any one carrier. It will be an air-service development program, administered by state aeronautics officials, for any of South Carolina’s commercial airports, he said.
That suits Edwards, who said South Carolina needs to “raise the attention, heighten the awareness of how important aviation is to the future economic success of the state.”
It’s an economic opportunity similar to BMW’s presence in the Upstate or Boeing’s plan for the Charleston area, he said.
“Without appropriate air service to the state, it will never achieve the highest level of economic benefit that it can achieve,” Edwards said.
“Ultimately, it’s really all about jobs and quality of life and all of those things built around it,” he said.
For now, GSP officials are talking to several discount carriers, including Southwest, about starting service here, Edwards said.
“I think we have a good chance to be successful in securing a low-cost, low-fare carrier,” he said. “I think we have a good possibility in being successful with Southwest. But again, it’s not done, and it’s going to take all of the efforts that are currently underway, from the state Legislature to the local community to the private sector to the airport commission in order to bring this thing to fruition.
“And if all of those pieces of the puzzle don’t come together, it’s probably not going to happen.”
Business writer
An Upstate lawmaker this week is expected to propose initiatives to boost airline competition at the state’s airports, including Greenville-Spartanburg International Airport, where efforts are underway to lure discount carrier Southwest Airlines.
State Rep. Bill Wylie, a Simpsonville Republican, said the legislation he expects to introduce will center on creating a state-administered fund to help an airline offset startup costs at any of South Carolina’s commercial airports.
While Wylie said his measure won’t target a specific airport, local officials believe it will be crucial to their efforts to bring Southwest to GSP — and put downward pressure on local airfares that are among the highest in the nation.
Wylie said he has lined up several sponsors to support the legislation, which would include a fund of approximately $15 million to reimburse certain losses for up to 24 months based on an agreement the airport and a carrier believe is equitable for both sides.
Local business and community officials hope to attract Southwest this year, but an airline spokeswoman said last week “there is no imminent plan” to announce any additional new service for 2010.
“First and foremost with Southwest, it’s not done, and it’s not dead,” Dave Edwards, GSP’s executive director, said in an interview.
“There’s always a possibility of Southwest being able to come in 2010,” he said. “Part of that would be can we assemble something that is of a nature that attracts Southwest to come to the community? I don’t think there’s any question that we have the market here, we have the pent-up desire of this community to have a low-cost, low-fare carrier in the market.”
Airline officials have confirmed that Southwest, the biggest U.S. discount carrier, sent its scheduling and planning officials to Greenville. The officials cautioned that airline representatives have attended similar recruitment meetings in many other cities.
In a statement last week, Southwest’s spokeswoman, Ashley Rogers, said, “Our new Panama City Beach (Fla.) service that begins in May is the only new service that’s scheduled for 2010.”
“The leadership here at Southwest is always open to exploring new areas and will continue to monitor the economic environment in an effort to make the best decisions for our customers and our employees,” Rogers said.
A spokesman for Gov. Mark Sanford said the Governor’s Office likely would wait to see the final language before deciding whether to support Wylie’s legislation.
The spokesman, Ben Fox, said, “carve-out incentives of this nature can be troublesome for some” and would need to go “through a rigorous cost-benefit analysis to make sure the taxpayer is protected alongside potentially boosting the local and state economy.”
Local business and community leaders are eager to bring Southwest and its large jet service to GSP, where regional carriers and smaller commuter aircraft dominate.
High airfares and a lack of western routes are causing two of every three potential passengers to bypass GSP in favor of flights in other cities, primarily Charlotte and Atlanta, according to business leaders and airport officials.
Currently, Allegiant, a low-fare carrier, provides service from GSP to several locations in Florida.
Edwards said GSP needs to broaden the airport’s discount-carrier offerings, particularly for business travelers who often fly on short notice.
“There is no question that people know that we’ve been in dialogue with Southwest,” he said. “We are trying to develop a partnership arrangement with the community, including the state Legislature, in order to assemble a package that might be attractive enough to secure service from Southwest at some point in the future. That’s our goal at this point — to try to get that in place.
“Most airlines will tell you for them to start new service at an airport, the station cost at the airport to install equipment, phones, get all of their build-out done for facilities usually runs a half-million dollars to $600,000,” Edwards said.
For airport operators, it’s important to “minimize that cost of entry for them,” and “basically just give them a turn-key operation that they can walk in the door with their staff, bring their ancillary equipment to the table, but have all of the hard infrastructure in place,” he said.
“That creates a much better situation for them to entertain coming into the market,” he said.
Edwards came to GSP last July after working at Asheville, where he helped attract more airline service, including discount carrier AirTran Airways.
It was a similar situation to GSP’s, Edwards said.
Airport officials in Asheville wanted more competition and developed an air-service plan to identify incentives that were allowed under FAA regulations, including marketing dollars and fee waivers, he said.
Airports can’t provide direct cash subsidies or direct revenue guarantees to an airline to ensure they’re going to be profitable in a market, Edwards said.
Overall, it took about five years of discussions with AirTran before Asheville secured the airline’s service, he said.
“That’s a long period of courtship,” Edwards said, “and it’s a constant discussion that you have to have.”
In the end, Asheville provided AirTran — as part of the airport’s air-service incentive policy — with marketing dollars and fee waivers and did some facility improvements “that would not only benefit them in their startup but also would enable us to help lure some other airlines to the table in the future,” Edwards said.
AirTran officials couldn’t be reached for comment.
These days, carriers are looking for an edge, and increasingly, funds need to go to keeping their costs down, Edwards said.
“It used to be there were no incentives required, essentially, to get air service to the table,” he said.
“Now, that’s become the standard, and now we’re kind of moving into this next phase, because of the economic climate, of having to help a carrier mitigate their risk in the first two or three years of providing service in order to give them an opportunity to get up and running and become successful in a market,” Edwards said.
Wylie has said his legislation won’t be geared to any one carrier. It will be an air-service development program, administered by state aeronautics officials, for any of South Carolina’s commercial airports, he said.
That suits Edwards, who said South Carolina needs to “raise the attention, heighten the awareness of how important aviation is to the future economic success of the state.”
It’s an economic opportunity similar to BMW’s presence in the Upstate or Boeing’s plan for the Charleston area, he said.
“Without appropriate air service to the state, it will never achieve the highest level of economic benefit that it can achieve,” Edwards said.
“Ultimately, it’s really all about jobs and quality of life and all of those things built around it,” he said.
For now, GSP officials are talking to several discount carriers, including Southwest, about starting service here, Edwards said.
“I think we have a good chance to be successful in securing a low-cost, low-fare carrier,” he said. “I think we have a good possibility in being successful with Southwest. But again, it’s not done, and it’s going to take all of the efforts that are currently underway, from the state Legislature to the local community to the private sector to the airport commission in order to bring this thing to fruition.
“And if all of those pieces of the puzzle don’t come together, it’s probably not going to happen.”
Sunday, January 17, 2010
Airbus snagged more orders in '09, but Boeing netted more cash
The Seattle Times
SEATTLE — SEATTLE — Airbus topped Boeing both in the number of planes produced and in the total of new orders last year, but the U.S. company prevailed in perhaps the most important tally: the actual money received for airplanes delivered to customers.
Whether calculated on list prices or on more realistic data using standard sales discounts, Boeing’s deliveries were worth about $4 billion more than Airbus’s.
Airbus said last week that it won 271 net orders versus Boeing’s 142, and delivered a company record 498 airplanes compared to Boeing’s 481. The European plane-maker’s executives also conceded serious problems with the A380 superjumbo jet program and with the money-draining A400M military cargo plane.
Orders and deliveries are the numbers that get the most attention, but from a business perspective, the value of deliveries is key.
According to data from aircraft valuation firm Avitas, after standard sales discounts the Boeing jets delivered in 2009 were worth an estimated $32.8 billion.
Airbus’ 2009 deliveries were worth an estimated $28.4 billion.
Despite delivering 17 fewer airplanes, Boeing produced a more valuable mix: Airbus’s output of the more expensive large jets didn’t match Boeing’s 777 production line in Everett.
Airbus rolled out only 20 of its larger-sized wide-bodies: only 10 from the moribund A340 program and another 10 from the A380 superjumbo program, which has slowed to a crawl because of production issues.
In contrast, Boeing rolled out 88 of its expensive large wide-body 777s in 2009, a record pace.
In addition, Boeing delivered eight of its pricey 747-400 jumbo jets before it suspended that assembly line last May as it transitions to the new model 747-8.
According to the catalog list prices of the airplanes delivered, not allowing for discount pricing, Boeing’s delivery total is $55.1 billion compared to Airbus’ $51.6 billion.
That outcome fits the pattern of recent years, though the Machinist strike in 2008 that stopped production for two months meant Airbus beat Boeing in the value of its jet deliveries that year.
But in 2007 and 2006, Boeing topped Airbus both in the number of new jet orders and in the dollar value of jet deliveries.
At the Airbus news conference, chief executive Tom Enders spoke of two issues that Boeing executives will watch closely as they consider their own corresponding moves.
He said Airbus expects to roughly maintain production rates in the year ahead. And the leadership will decide whether to go ahead with a new engine program for the A320 narrow-body family.
Enders also said Airbus should cancel the delayed and over-budget A400M project if customer governments fail to commit more funds soon because it is swallowing money and valuable resources.
And he acknowledged a “big disappointment” with Airbus’ newest plane, the A380 superjumbo, which has suffered from costly delays. Airbus’s 10 deliveries last year were well below its initial goal of 18, and Enders said the program will be “a financial liability” for years to come.
At the same time, the hulking gray A400M turboprop, which made its first flight only last month, is costing euro100 million ($145 million) each month and valuable engineering resources, Enders said.
“Part of my responsibility as CEO is when you see a clear danger coming up, that you speak up, that you suggest action, that you take action and that is what I am doing,” he told The Associated Press in Seville, Spain.
The money being spent on the A400M could be used on other Airbus projects: it wants to double production of the A380 to 20 planes this year. Airbus is also working on a new widebody, the A350 XWB, and is thinking about fitting a new engine to its A320 single-aisle workhorse.
Airbus was “stupid” to agree to the original fixed-price contract for the A400M with an unrealistic delivery schedule, Enders said at the company’s New Year’s news conference in Seville.
EADS CEO Louis Gallois called some of the A400M arrangements imposed on the company by governments “baroque.” He said governments should resolve the issue of who pays for the extra costs “no later than end of January.”
“The A400M puts all of Airbus in jeopardy,” Enders said.
Analysts have said the threat is aimed at forcing governments to move ahead with a project that supports 40,000 jobs, many of which would be based in Seville, where the A400M is assembled.
The A400M project was launched six years ago with an order for 180 planes from seven governments — Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.
The original price was euro20 billion ($29.5 billion), but a preliminary report by auditors PricewaterhouseCoopers said EADS might need an extra euro5 billion — inflating the final bill by 25 percent. Some reports have put the extra bill as high as euro11 billion.
Defense officials involved in the project are due to meet in London on Thursday, ahead of a Jan. 30 deadline to reach a financing deal on how to cope with the cost overruns. That deadline has already been extended several times, and it is a year since Airbus proposed a “new approach” for the troubled program.
In its main jetliner business, Airbus survived a crisis year for the airline industry to post better results than Boeing on both orders and deliveries.
“Under the circumstances it was a rather good year,” Enders said.
The European planemaker captured 310 gross orders in 2009, within the target range set by chief salesman John Leahy a year ago.
The net tally of 271 beat Boeing’s 142 after the Chicago-based rival suffered multiple cancellations of its delayed 787.
Leahy said he expects between 250 and 300 gross orders this year, as well as more than four orders for A380s this year for a total of less than 10 plans. The pickup won’t come before 2012, he said.
He denied that Airbus gained more orders than Boeing because it is offering bigger discounts. “We never had cheaper planes,” he said.
Enders said he expects deliveries in 2010 to remain at the same level as the past two years, and has no plans to slow down production schedules for any of its planes.
The crisis, however, has caused disruption, with changes to 500 delivery slots, he said. Airbus has moved up some of its more financially secure customers to 2010 slots for planes originally scheduled for delivery in 2011, 2012 and even 2013, he said.
Enders said that in 2010 he plans to make a decision on whether to put new engines on the A320 to keep up with competition — a decision he described as crucial.
“That’s our bread-and-butter business,” he said. “If I get that wrong, I would be in serious trouble.”
Airbus’ parent company EADS also gave an early view of its full-year earnings, saying 2009 revenue fell 3.6 percent to euro41.7 billion ($60.6 billion) from euro43.26 billion in 2008.
Gallois blamed the weakening dollar, saying revenue was “a bit less than 2008 not in volume but only because of the dollar effect,” he said.
Airbus sells its planes in dollars, but many of its costs are in euros.
SEATTLE — SEATTLE — Airbus topped Boeing both in the number of planes produced and in the total of new orders last year, but the U.S. company prevailed in perhaps the most important tally: the actual money received for airplanes delivered to customers.
Whether calculated on list prices or on more realistic data using standard sales discounts, Boeing’s deliveries were worth about $4 billion more than Airbus’s.
Airbus said last week that it won 271 net orders versus Boeing’s 142, and delivered a company record 498 airplanes compared to Boeing’s 481. The European plane-maker’s executives also conceded serious problems with the A380 superjumbo jet program and with the money-draining A400M military cargo plane.
Orders and deliveries are the numbers that get the most attention, but from a business perspective, the value of deliveries is key.
According to data from aircraft valuation firm Avitas, after standard sales discounts the Boeing jets delivered in 2009 were worth an estimated $32.8 billion.
Airbus’ 2009 deliveries were worth an estimated $28.4 billion.
Despite delivering 17 fewer airplanes, Boeing produced a more valuable mix: Airbus’s output of the more expensive large jets didn’t match Boeing’s 777 production line in Everett.
Airbus rolled out only 20 of its larger-sized wide-bodies: only 10 from the moribund A340 program and another 10 from the A380 superjumbo program, which has slowed to a crawl because of production issues.
In contrast, Boeing rolled out 88 of its expensive large wide-body 777s in 2009, a record pace.
In addition, Boeing delivered eight of its pricey 747-400 jumbo jets before it suspended that assembly line last May as it transitions to the new model 747-8.
According to the catalog list prices of the airplanes delivered, not allowing for discount pricing, Boeing’s delivery total is $55.1 billion compared to Airbus’ $51.6 billion.
That outcome fits the pattern of recent years, though the Machinist strike in 2008 that stopped production for two months meant Airbus beat Boeing in the value of its jet deliveries that year.
But in 2007 and 2006, Boeing topped Airbus both in the number of new jet orders and in the dollar value of jet deliveries.
At the Airbus news conference, chief executive Tom Enders spoke of two issues that Boeing executives will watch closely as they consider their own corresponding moves.
He said Airbus expects to roughly maintain production rates in the year ahead. And the leadership will decide whether to go ahead with a new engine program for the A320 narrow-body family.
Enders also said Airbus should cancel the delayed and over-budget A400M project if customer governments fail to commit more funds soon because it is swallowing money and valuable resources.
And he acknowledged a “big disappointment” with Airbus’ newest plane, the A380 superjumbo, which has suffered from costly delays. Airbus’s 10 deliveries last year were well below its initial goal of 18, and Enders said the program will be “a financial liability” for years to come.
At the same time, the hulking gray A400M turboprop, which made its first flight only last month, is costing euro100 million ($145 million) each month and valuable engineering resources, Enders said.
“Part of my responsibility as CEO is when you see a clear danger coming up, that you speak up, that you suggest action, that you take action and that is what I am doing,” he told The Associated Press in Seville, Spain.
The money being spent on the A400M could be used on other Airbus projects: it wants to double production of the A380 to 20 planes this year. Airbus is also working on a new widebody, the A350 XWB, and is thinking about fitting a new engine to its A320 single-aisle workhorse.
Airbus was “stupid” to agree to the original fixed-price contract for the A400M with an unrealistic delivery schedule, Enders said at the company’s New Year’s news conference in Seville.
EADS CEO Louis Gallois called some of the A400M arrangements imposed on the company by governments “baroque.” He said governments should resolve the issue of who pays for the extra costs “no later than end of January.”
“The A400M puts all of Airbus in jeopardy,” Enders said.
Analysts have said the threat is aimed at forcing governments to move ahead with a project that supports 40,000 jobs, many of which would be based in Seville, where the A400M is assembled.
The A400M project was launched six years ago with an order for 180 planes from seven governments — Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey.
The original price was euro20 billion ($29.5 billion), but a preliminary report by auditors PricewaterhouseCoopers said EADS might need an extra euro5 billion — inflating the final bill by 25 percent. Some reports have put the extra bill as high as euro11 billion.
Defense officials involved in the project are due to meet in London on Thursday, ahead of a Jan. 30 deadline to reach a financing deal on how to cope with the cost overruns. That deadline has already been extended several times, and it is a year since Airbus proposed a “new approach” for the troubled program.
In its main jetliner business, Airbus survived a crisis year for the airline industry to post better results than Boeing on both orders and deliveries.
“Under the circumstances it was a rather good year,” Enders said.
The European planemaker captured 310 gross orders in 2009, within the target range set by chief salesman John Leahy a year ago.
The net tally of 271 beat Boeing’s 142 after the Chicago-based rival suffered multiple cancellations of its delayed 787.
Leahy said he expects between 250 and 300 gross orders this year, as well as more than four orders for A380s this year for a total of less than 10 plans. The pickup won’t come before 2012, he said.
He denied that Airbus gained more orders than Boeing because it is offering bigger discounts. “We never had cheaper planes,” he said.
Enders said he expects deliveries in 2010 to remain at the same level as the past two years, and has no plans to slow down production schedules for any of its planes.
The crisis, however, has caused disruption, with changes to 500 delivery slots, he said. Airbus has moved up some of its more financially secure customers to 2010 slots for planes originally scheduled for delivery in 2011, 2012 and even 2013, he said.
Enders said that in 2010 he plans to make a decision on whether to put new engines on the A320 to keep up with competition — a decision he described as crucial.
“That’s our bread-and-butter business,” he said. “If I get that wrong, I would be in serious trouble.”
Airbus’ parent company EADS also gave an early view of its full-year earnings, saying 2009 revenue fell 3.6 percent to euro41.7 billion ($60.6 billion) from euro43.26 billion in 2008.
Gallois blamed the weakening dollar, saying revenue was “a bit less than 2008 not in volume but only because of the dollar effect,” he said.
Airbus sells its planes in dollars, but many of its costs are in euros.
Monday, January 11, 2010
Boeing Co. deal earns national recognition
The Post and Courier
Celebrities have the People's Choice Awards. Smokestack chasers have the annual Economic Development Deal of the Year Awards, as chosen each year by Business Facilities magazine.
And as it turns out, Joe Taylor and his staff over at the S.C. Department of Commerce rose to the top for 2009 on the wings of none other than Boeing Co.
Agencies from 15 states nominated what the trade publication call 19 "big-ticket projects" for consideration by a panel of judges who evaluated economic impact statistics, job-creation estimates and project narratives.
The commerce department snared the "Gold Award" for Boeing's decision to pick North Charleston as the site of its new 787 Dreamliner assembly plant, the magazine noted.
With completion set for mid-2011, the $750 million investment "vaults the Palmetto State into a leadership position in aerospace manufacturing," according to the Tinton Falls, N.J.-based publication.
"The choice of North Charleston as a manufacturing site for Boeing's best-selling commercial jet will have a seismic impact on South Carolina's economic development," said editor-in-chief Jack Rogers.
Several mega-projects -- with a projected overall economic impact of more than $1 trillion -- were nominated for the top award. The runners-up were Tennessee's Department of Economic & Community Development for luring a Hemlock Semiconductor plant; and the Virginia Economic Development Partnership for its role in landing the Northrup Grumman Shipbuilding-led AREVA/Newport News partnership.
Celebrities have the People's Choice Awards. Smokestack chasers have the annual Economic Development Deal of the Year Awards, as chosen each year by Business Facilities magazine.
And as it turns out, Joe Taylor and his staff over at the S.C. Department of Commerce rose to the top for 2009 on the wings of none other than Boeing Co.
Agencies from 15 states nominated what the trade publication call 19 "big-ticket projects" for consideration by a panel of judges who evaluated economic impact statistics, job-creation estimates and project narratives.
The commerce department snared the "Gold Award" for Boeing's decision to pick North Charleston as the site of its new 787 Dreamliner assembly plant, the magazine noted.
With completion set for mid-2011, the $750 million investment "vaults the Palmetto State into a leadership position in aerospace manufacturing," according to the Tinton Falls, N.J.-based publication.
"The choice of North Charleston as a manufacturing site for Boeing's best-selling commercial jet will have a seismic impact on South Carolina's economic development," said editor-in-chief Jack Rogers.
Several mega-projects -- with a projected overall economic impact of more than $1 trillion -- were nominated for the top award. The runners-up were Tennessee's Department of Economic & Community Development for luring a Hemlock Semiconductor plant; and the Virginia Economic Development Partnership for its role in landing the Northrup Grumman Shipbuilding-led AREVA/Newport News partnership.
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