SIGforum
Boeing Moves All 787 Dreamliner Production To South Carolina

This topic can be found at:
https://sigforum.com/eve/forums/a/tpc/f/320601935/m/3440051574

October 01, 2020, 02:44 PM
wcb6092
Boeing Moves All 787 Dreamliner Production To South Carolina
https://www.zerohedge.com/econ...ction-south-carolina

Boeing's decades-long ties to Washington state could soon be numbered.

In a massive blow to Seattle, labor unions and the liberal run state of Washington, Boeing is moving its 787 Dreamliner production to South Carolina in an effort to cut costs, Bloomberg revealed on Thursday.

It is a move that is raising questions about how long Boeing may remain at its massive plant in Everett, where it has produced planes since the 1960s.

Dreamliner production is being consolidated as demand for Boeing's planes has dropped amidst the 737 MAX controversy and the ongoing pandemic which has decimated the travel industry. The easiest way for Boeing to cut costs is to move to non-union labor in South Carolina and trim its operations.

It's also the latest move in Boeing bolstering operations in Republican-governed South Carolina. Aerospace analyst Richard Aboulafi noted that 747 production would end by 2022 and that “the overhead costs will be increasingly borne by the surviving planes, the 767 and 777X, which don’t have a lot of pricing power right now.”


_________________________
October 01, 2020, 02:48 PM
HRK
https://sigforum.com/eve/forums...0601935/m/6490031574
October 01, 2020, 03:01 PM
HK Ag
Sounds like a smart fiscally responsible move. The cost to live and work in Seattle will continue to be ever more onerous.
Seattle better thank its lucky stars Amazon has done well to this point and caused alot of urban investment.
My bet is with Covid if this drags on they will hire folks well outside of Seattle and begin to shutter their buildings that they have renovated all over "Amazonia" there.

HK Ag
October 01, 2020, 03:39 PM
BBMW
Boeing committed to building the next generation 777 at Everett by building the wing plant there. They'd have to make a huge investment in SC to move production of other models there.

But I do think this is meant as a warning to the unions in the Seattle area plants.