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Comments about ‘Boeing considering Utah for 777X production’

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Published: Thursday, Nov. 14 2013 5:45 p.m. MST

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Say No to BO
Mapleton, UT

This sounds like a salvo fired over the bow of the union in Seattle.
But Boeing politics is entrenched in Washington. It would be like the LDS Church moving its HQ out of Salt Lake.

Back Talk
Federal Way, WA

The Boeing Union already forced Boeing to move one production line for the 787 to S Carolina. There is another one in Everett WA.

The 777X is a new plane that can go anywhere even supposedly without OBama running to rhe rescue with a lawsuit claiming retaliation against unions.

We need a Govennor who will act for the benefit of all the citizens of Washington and not just the Boeing Union and Teachers Union.

PRide and arrogance on both sides is what drives this problem. Just look what happened with the 787. The Union is betting Boeing wont want to try it again. We will see.

B Man
Orem, UT

I don't think this is just posturing. Boeing placed a Final Assembly line in South Carolina a few years ago, and it would not be the first time they have reacted strongly to the IAM choosing to put short term greed over long term mutual benefit. Based on what I have read elsewhere, I think there is an 80% or better chance that Boeing will put 777X Final Assembly and Wing Production outside the Puget Sound.

Boeing seems to have quite a bit of confidence in its team in Salt Lake, as evidenced by its willingness to expand by 850,000 square feet and put new high-tech composites work there.

This will be interesting to follow. I would put the current odds by site at 30% San Antonio, 30% Salt Lake City, 20% Long Beach, and 20% Everett. Here's hoping these thousands of jobs come to Salt Lake City, Utah! It would be a major coup for the state.

UtahBlueDevil
Durham, NC

Boeing already moved its headquarters out of Washington state many years ago... it is now in Chicago.

It is also now producing Dreamliners in South Carolina. Boeing has extensive operations throughout the country and abroad.

That said, this would be a great win for Salt Lake to bring these high-tech manufacturing jobs to the valley. These jobs, and the ones needed to support these jobs would be a giant boom for good paying jobs.

2 bits
Cottonwood Heights, UT

This happens every few years. Both Boeing and McDonald Douglas bring Utah into the mix wherever they negotiate because they know Utah will offer huge tax incentives and a cheap well educated labor force. But it's mostly a ploy to get the old place to match whatever we are offering. It never ends up coming to Utah, no matter what incentives we offer.

We may get aome parts plants or something, but they would never commit to doing something as large as final assembly in Utah. It's mostly a ploy to get better offers on the table and scare the other sites bidding for the facility.

JoeCapitalist2
Orem, UT

The state definitely wants to attract high skill, good paying jobs to Utah. While it may be a win-win situation to get Boeing to locate more jobs here, it is not an automatic thing that should be pursued at all costs.

Too many states offer big tax incentives or dangle other carrots in front of potential companies only to find out that it is an economic drain when you end up sacrificing more than you end up gaining over the long run.

I just hope we have very good negotiators who will put the long term interests of Utah citizens above selfish, short-term interests of politicians. Attract good jobs to Utah by offering fair incentives that will pay off over the next 10 years == GOOD. Give huge tax breaks just so a politician can say "look who I brought to Utah" or to fill his own election campaign coffers == BAD.

Say No to BO
Mapleton, UT

B Man
Huntsville gets no odds with you?
Hmm.

Johnny Triumph
American Fork, UT

The Union rejecting the proposed contract was shortsighted, they were looking at short term benefits rather than longer term stability. Too bad for them that Boeing needs to kill this new plane. Boeing is a business and has pretty fierce competition from Airbus, they need to save all the $$ they can and giving in to bad pension agreements is not the way to do that.

Also playing against the Union is the fact that Utah has remained so strong financially through the bad economy, we've got the ability to give Boeing the short term farm and thus secure long term rewards. So here's to Utah success in landing this plane!

Shaun
Sandy, UT

I doubt Boeing will move production of that plane to Utah. Investing in the infrastructure needed to build that plane would be more cost prohibited than agreeing to keep the current union pensions.

Plus it takes skilled tradesman to build aircraft. Where are they going to find people with those skills in Utah?

Vince Ballard
South Ogden, UT

We need good manufacturing and technology jobs in the worst kind of way. Overemphasis on tourism and various related gimmicks have left us selling each other hot dogs, per Lee Iacocca. Time to get quality jobs back in Utah!

RedShirt
USS Enterprise, UT

I say offer them all sorts of tax breaks. With the jobs that it will create, the state will have more tax revenues than it would without the jobs.

NightOwlAmerica
SALEM, OR

2 bits
Cottonwood Heights, UT said:

"This happens every few years. Both Boeing and McDonald Douglas bring Utah into the mix wherever they negotiate because they know Utah will offer huge tax incentives and a cheap well educated labor force. But it's mostly a ploy to get the old place to match whatever we are offering. It never ends up coming to Utah, no matter what incentives we offer.

We may get aome parts plants or something, but they would never commit to doing something as large as final assembly in Utah. It's mostly a ploy to get better offers on the table and scare the other sites bidding for the facility."

The same was said about S. Carolina. Now look what they are doing. There is great potential for Boeing expansion in Utah. Talk about a boon for trade schools, community college and others to train and teach these skills. In addition to some employees moving there.
The negotiator's and power structure of the Boeing market is not as it once was in Washington State.

What in Tucket?
Provo, UT

Unions always think it is a "worker's market." Sorry but our economy is not good enough for that. We have an employer's market. It's sort of like real estate. In Utah Co rental real estate is hard to come by at a reasonable price whereas there are a lot of good buys in Cache Valley. It's a seller's market in Provo and a buyer's market in Logan. Unions can be very hard to deal with.

Fan Base
Salt Lake City, UT

What we should say instead is that we will create the most productive work force you will find anywhere and then live up to that promise so all businesses win, not just the political favorites.

2 bit
Cottonwood Heights, UT

NightOwlAmerica,
I'm not saying it wouldn't be good to get it. It would be GREAT to get it. I'm just saying don't get your hopes up. But of course we should try anything we can to get it. Just pointing out that Boeing, McDonald Douglass, and Lockheed have all been here many times before to court Utah for their best offer (but they never seriously intended to move here, they needed a bargaining chip).

I think these companies should have to put some money up front to pay the State for the expense of putting together the bid. It's always a big gamble. We put $millions into preparing the bid... and get nothing for it in the end. But Boeing gets a nice bargaining chip they can use in their negotiations with the Unions.

Like South Carolina proved... it's not impossible, but it's very unlikely Boeing would actually come to Utah in any big way. But I agree it would be nice for the economy if they did.

spring street
SALT LAKE CITY, UT

low paying jobs in exchange for cooperate welfare sounds like a perfect fit for Utah

LDS Liberal
Farmington, UT

Wishful thinking ---

Boeing is "using" Utah as a bargaining chip to drive down the costs in competing States.

There is NO way Boeing will do "Final Assembly" in Utah,
and here’s why...

Airlines begin booking tickets long before planes are delivered.
So, there are huge penalties for missing delivery.

Utah is frozen 6 months of the year.
BUT--
We also have America’s worst inversions.
and deliveries would completely stop during those inversions.

A single day slip in delivery costs Boeing $10’s of millions per day in late fees and penalties to both the Airlines and Global Suppliers (also under contracts).

From a business stand point,
ANY missed deliveries due to weather cost the same as a full blown Union Strike,
and inversions happen every year.

So it’s not even a question about labor costs.

My bet?...
Long Beach, CA – and he’s why:

Boeing closed the USAF C-17 production line there just 6 months ago.
Big Aircraft Plant,
already established,
already paid for,
good weather,
and
an already skilled workforce now looking for work.

BTW -- I've seen this all before,
I worked at Boeing for over 22 years.
===========

LDS Liberal
Farmington, UT

2 bits
Cottonwood Heights, UT
This happens every few years. Both Boeing and McDonald Douglas bring Utah into the mix

8:02 a.m. Nov. 15, 2013

========

Boeing merged with McDonnell Douglas almost 20 years ago.

But I agree with everything else you said.

Pragmatic One
Mesa, AZ

Airbus is now building in Alabama. Boeing has elements of it's business all over the US. The days of Boeing being a Washington company are over. Look at GM, Ford, and Chrysler. Like it or not we now live in a global community and have to think along those lines. It's obvious the IAM (among others) haven't figured out that they too need to compete on a global scale.

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