Boeing’s decision to move its second 787 line to a plant in South Carolina could have a domino effect on the local economy as it ripples into counties surrounding the Everett plant, local legislators said.
State Rep. Dan Kristiansen, R-Snohomish, said though local contractors and commuters to Boeing facilities might not feel the impact of the company’s move immediately, they can expect it in the near future.
“I think contractors in this state should definitely be concerned,” he said.
About 140 contractors around the world provide parts and services to Boeing.
Janicki Industries in Sedro-Woolley provides aerospace tooling to many of Boeing’s plants across the country, including both the Everett and North Charleston plants.
The company’s ability to ship its unique parts wherever needed leaves it less affected by Boeing’s move, Kristiansen said.
“They’re a little bit of an anomaly versus the person that’s actually making the parts and is contingent on the plant being here,” he said.
Janicki President John Janicki was not immediately available for comment.
Kristiansen said Boeing’s decision is no surprise to those in the Legislature.
“We’ve been put on notice months ago,” he said. “My biggest concern is that we’re not paying attention and could lose not only future but also current projects from Boeing.”
Duncan Frazier, president of the Economic Development Association of Skagit County, said it’s still early to say exactly how specific Boeing contracts supplied by companies in the county will be affected.
“It’s such a lengthy extension into the business community of all of Puget Sound, it’s really hard to say how it’s going to trickle down,” he said. “I think the shifting of that line to South Carolina will undoubtedly limit if not reduce future jobs here in the region.”
U.S. Rep. Rick Larsen, D-Wash., said in a press release that though the case for Boeing in Washington remains strong, it couldn’t compete with South Carolina’s offer.
“It is now clear, if it wasn’t before, that there weren’t enough training facilities we could build, or a large enough B&O tax break we could give to keep Boeing from moving their second line to South Carolina,” he said in the release.
State Rep. Norma Smith, R-Coupeville, said in a press release that high costs for workers’ compensation, unemployment insurance and health insurance in the state were factors in Boeing’s decision.
“These employer concerns have also contributed to Washington state losing the last five location decisions made by aerospace companies. This means thousands of jobs lost in our region,” she said.
Kristen Whitener, president of Mount Vernon Chamber of Commerce, said Boeing’s decision could affect a number of commuters from Skagit County to the Everett plant.
But for now, it should open up necessary conversations about the issues affecting businesses in the state and what is needed to keep them here.
