Building the Future . . . Together
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BUILDING THE FUTURE . TOGETHER. The Business Case for 777X Wing and Final Assembly in Washington State TABLE OF CONTENTS Century of Know-How .............................................7 Established Supply Chain ..........................................9 Workforce and Education .........................................13 Culture of Innovation ............................................21 Pro-Aerospace Business Climate. 25 Sites. .37 Summary ......................................................49 777X Site Selection Proposals Boeing Everett. .53 West Spokane ..................................................95 Paine Field Aerospace Business Park ..............................137 2001 Sixth Avenue Suite 2601 Seattle, WA 98121 260.256.6100 A Message From The Governor For nearly a century, Washington State and The Boeing Company for workforce development and to have been partners in designing and manufacturing the world’s most make permitting for major projects successful airplanes, becoming the global leaders in aerospace in smooth and efficient. This legislative the process. After you read through our response to your company’s package passed quickly and with strong request for proposals, I believe you will agree with industry experts bipartisan support. Work continues on who say there is simply no better place to build the 777X and its a comprehensive transportation package that we agree is essential carbon fiber wings than here at home. to the long-term economic vitality of Washington State. Recent polls have shown tremendous support for this incentive program as our The men and women of Boeing in Washington have helped connect residents understand the important role Boeing plays in our economy. the world by making the 777 the best-selling twin-engine, twin-aisle commercial aircraft of all time. More than 1,100 of the company’s There is more to be done. We plan to present to the 2014 Legislature 777s have taken off from the Everett plant, a testament to Boeing’s additional investments that will help Boeing maintain its high-caliber incredible vision for aviation and the skill of our state’s workforce. workforce and assist the industry in developing new technologies in With a current production rate of 100 planes a year and the future aerospace and advanced materials manufacturing. of the program guaranteed with the introduction of the 777X, the I also continue my personal involvement in looking for ways to bring importance of this plane to Boeing, its shareholders and commercial Boeing and its unions together to secure labor stability, control costs aviation in general cannot be overstated. and continue the successful partnership that builds the best airplanes The program is equally important to Washington State. The 777X in the world. will ensure we maintain our leadership in the aerospace industry, Washingtonians are proud of their long and productive partnership employ thousands of workers — not just at Boeing but at more than with Boeing, and I look forward to strengthening that relationship in 1,300 aerospace suppliers — and contribute to our state’s vitality and the years to come. It is my pleasure to offer our response to this RFP economic growth. and present a thorough business case for building the 777X and its Washington has clearly demonstrated its commitment to Boeing. carbon fiber wings in Washington State. The Legislature extended our aerospace tax incentive programs Very truly yours, for construction of the 777X and its carbon fiber wings, valued at $8.7 billion over 16 years. The Legislature also approved funding Jay Inslee Governor A Message From The Washington State Delegation KEY MILESTONES FOR Washington THE AEROSPACE INDUSTRY IN wins production The 777 makes of the 737 its first flight. MAX thanks WASHINGTON STATE United Airlines Boeing 787 to Boeing/ is the launch Dreamliner, IAM contract customer. the first agreement. passenger jet Boeing 737 makes 1994 its inaugural flight. made mostly 2011 The 737 and its of composite variants will go on materials, Washington State makes its to become the best- Alaska Airlines selling jet airliner leaders mobilize first flight. Pacific Aero Products acquires efforts to secure the in the history of Horizon Air. incorporates with aviation. production of the 2009 just 21 employees. Both companies 7E7 (later 787) in A year later, it is 1967 now operate Washington State. renamed the Boeing as Alaska Air Airplane Company. Group. 2003 - 2004 The Boeing built 1986 1916 Boeing Lunar Roving delivers its first Vehicle allows Boeing wins Air commercial jet astronauts to cover aircraft, the 707, greater distances Force tanker contract. Alaska to Pan American in their exploration Boeing Commercial Airlines Worldwide of the moon. selects Everett, WA founded. Airways. as the site for 787 2011 1971 final production. 1932 1958 2004 The Boeing Company merges with Advanced plastic McDonnell Douglas composites are Corporation, creating Seattle produces the world’s largest thousands of introduced into 737 horizontal tails. aerospace enterprise B-17 Flying The first with 220,000 Fortress to employees. jumbo jet, 1982 defeat Axis the 747, rolls forces in Europe out from the 1997 and the Pacific. Everett plant, The Boeing B-29 the largest Boeing wins 1937 Superfortress is building in the contract to developed and the world. design and build used extensively modules for the during WWII and 1969 International the Korean War. Space Station. 1942 1987 A Century of Know-How Washington State and Boeing share a history that is nearly as long Recently, Washington has increased its investment in Boeing’s future. as the history of the airplane itself. Since 1916, we have partnered In November, the Legislature extended the suite of aerospace tax to redefine aviation, producing some of the world’s most amazing incentives to include the 777X. The additional 16 years of incentives aircraft, bringing people from all across the globe closer together, and totals $8.7 billion in reduced tax burden to Boeing and other in turn, creating a legacy of innovation and excellence unparalleled in commercial airplane suppliers. Additionally we have made heavy the industry. investments in workforce education and training that will directly support the ramp up to 777X production. We continue to work The expertise and know-how of Washington’s workforce is with the company to improve labor relations with the representing unmatched. We have been building 777s since the program’s unions and the state Legislature is working on a significant package of inception and have established a track record of high productivity investments that will improve transportation throughout the state to and unrivaled quality. One only has to compare production in support the aerospace industry’s needs. Washington’s Boeing plants with other Boeing sites to see that the state is the optimal choice for delivering the 777X on time with Finally, our mature aerospace cluster offers Boeing a confident uncompromising quality and profitability. environment in which to produce the plane. Our state’s aerospace companies are ready to work closely with Boeing to develop a just-in- In fact, one of the greatest advantages of selecting the state is our time manufacturing pipeline that streamlines the development of the knowledge of the aircraft. Not only does our workforce understand plane while greatly reducing the cost associated with building new how to build the 777, but our supply chain of Tier 1 and Tier 2 assembly facilities out of state. As you know only too well, production suppliers is also familiar with the exacting requirements of producing delays and cost overruns associated with building such a complex a new model of aircraft for The Boeing Company. What’s more, our aircraft can be a window of opportunity for Boeing’s competitors. workforce training programs and higher education institutions are Collectively, we can ensure that Boeing continues to lead the way teaching the workers of tomorrow to work specifically on Boeing in commercial aviation, beating the competition in the process, by planes, from design and engineering to line production. We can working together to build the 777X. support the introduction of the 777X and continue to build it for decades to come. 7 ESTABLISHED SUPPLY CHAIN The Business Case for 777X Wing and Final Assembly in Washington State A Proven Supply Chain The 777X project will benefit greatly from the extensive, multi- A robust, seasoned network of suppliers is engaged in all facets tiered supply chain that exists in Washington State. There are 1,350 of aerospace, including airframing and aerostructures; aerospace aerospace and aerospace-related establishments in Washington. engineering, research and design; avionics and navigational Including Boeing, Washington’s aerospace workforce stands at systems; composites and advanced materials; tooling; interiors; and 132,515. These companies and their workers support the production maintenance, repair and overhaul. of more than 1,300 aircraft annually in the state, including 600 • About 90% of these aerospace-related companies are within 60 commercial and military jets and 700 unmanned aircraft. Boeing jets miles of a Boeing facility. pour from factories throughout the state, including the 737, 747, 767, 777 and 787. In Renton alone, nearly two new 737s are produced • Washington has the largest average number of employees per each and every day. aerospace firm in the country. Washington aerospace suppliers produce a wide range of products • The state’s network of