Renton Mayor Denis Law supports the creation of a Washington Council on Aerospace, designed to keep the state’s aerospace industry – mainly Boeing – competitive in the world market.
The world’s most popular jetliner – the Boeing 737 – is built in Renton and that production, along with other Boeing business and the work of support industries, provides 10s of thousands of jobs in the city.
Nearly 11 percent of the state’s exports originate in Renton as Boeing products.
Because of that, much is at stake in keeping Boeing and other aerospace companies competitive – and in Washington state and Renton.
“If they are not successful, it doesn’t bode well for this state,” said Law, of state leaders’ efforts.
Support for the aerospace industry is one of the City of Renton’s top priorities in the state Legislature. Those jobs are important.
“It would be a difficult thing for this state to recoup the jobs if the aerospace industry ended up going elsewhere,” Law said.
However, Law pointed out there is not “a lot we can do,” because many of the issues facing the aerospace industry are outside the city’s control, including the state of the economy, labor and state taxes.
“Quite frankly, I think the Boeing Co. and the rest of the companies in the aerospace industry need to be talking to us about what we can do that is within our control,” Law said.
The competitiveness council was proposed last week by Gov. Chris Gregoire and is making its way through the legislative process. The Legislature is scheduled to adjourn at the end of April.
Gregoire’s proposal comes as the Boeing Co. announced that it will reduce the production rate in the next several months of its Everett-built, twin-aisle airplanes, the 777, the 747 and and 767, because of the worldwide recession.
Not affected by the production cuts is the Renton-built 737, the world’s most popular jetliner with a backlog of about 2,200 planes.
“The legislation we’re pursuing today will help us stay ahead of the curve as we compete with other states and other nations,” Gregoire said in a press release announcing the legislation, House Bill 2308.
“Washington has had the edge in the aerospace industry for 100 years. We need to make sure that edge stays razor sharp. This legislation is about making sure we provide a level of service the aerospace industry needs to continue to thrive and grow in Washington state,” said Gregoire.
Members of the council would include community college and university presidents, business and labor leaders representing the 650 aerospace companies in the state, and members of the governor’s cabinet, according to the governor’s press release.
The council would not include any local government officials.
However, Law said the City of Renton is “very active” in discussions on aerospace competitiveness efforts through the Puget Sound Regional Council. Law is a member of that council’s executive board.
Renton was also the first city to join the Aerospace Futures Alliance (AFA), whose purpose is to strengthen the aerospace industry across Washington. According to the city, the alliance’s top issues include:
• supporting tax policies that encourage the growth and long-term health of the industry
• improving transportation infrastructure
• enhancing training and education to support the aerospace workforce
• addressing rapidly increasing health care costs.
Trying to maintain a key industry’s competitiveness is something the government should do on an “ongoing basis,” Law said, rather than wait until “people are saying they are leaving.”
Boeing has been an industrial presence in Renton for more than 65 years. The first commercial jet, the Boeing 707, was built in Renton, and the city is home to three of the company’s six business units: Boeing Commercial Airplanes, Boeing Capital and Boeing’s Shared Services Group.
According to the city, Boeing’s Renton operations account for nearly $7 billion (2.7 percent) of Washington’s gross state product and more than 45,000 direct and indirect jobs.
Gregoire’s proposal also includes the creation of an aerospace subcabinet to ensure the competitiveness council’s agenda moves forward.
Gregoire’s proposed legislation comes after the completion and release of the Aerospace Industry Competitiveness Study by Deloitte Consulting. The governor asked for the report to give her a clearer picture of what needs to be done to keep Washington’s edge as the state where the best airplanes in the world are built, according to the press release.
“Our advantages include aerospace’s wide presence across the state, our incredible workforce, a competitive tax environment and strong aerospace research. The study also confirmed that we need to do a lot more to stay ahead – from making sure we get the most value from the dollars spent on training, to helping labor and management communicate better,” Gregoire said.
Scott Carson, executive vice president of The Boeing Co. and president and chief executive officer of Boeing Commercial Airplanes, said in the press release “there is no question the aerospace industry is extremely competitive here at home and around the globe. As we have said in the past, we all need to work together to make Washington a better place for all businesses to compete.”
Gregoire proposes that the council coordinate worker training programs at community and technical colleges, as well as at four-year universities. In addition, the council would be charged with managing the recruitment of aerospace companies, creating jobs to grow the industry, and providing policy advice to the governor and Legislature.
