State of the Union Address by President Donald J. Trump February 5th, 2019
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Gregoire, Murray boost Boeing in tanker bid

Gov. Chris Gregoire and Sen. Patty Murray said Monday an estimated
11,000 jobs in Washington are at stake as Boeing vies for the Air Force
contract to build the next generation of refueling tankers.

Boeing declined to disclose exactly how it arrived at the jobs
estimate. However, spokesman Bill Barksdale said the figure includes
Boeing jobs along with jobs at its suppliers and also non-aerospace jobs
in Washington — everything from pizzerias and flower shops in Everett
to bars and auto dealers in Marysville.

Both Boeing and its rival for the tanker contract, Airbus parent
EADS, have each claimed tens of thousands of jobs around the United
States, releasing figures state by state to score maximum political
points.

Currently the 767 commercial-airliner production line in Everett is
assembling one airplane a month. That slow rate employs directly about
600 production workers.

If EADS were to win the contract, those jobs would disappear as the
767 line closes down.

If Boeing wins, 767 production will likely rise to about three planes
every two months, and thousands of engineers will get busy working on
the tanker design.

The order for 179 planes worth $35 billion would extend the life of
the 767 line and would likely lead to more orders for the air-refueling
plane.

The non-aerospace jobs created from the aerospace economy are
calculated using a multiplier ratio. For example in 2003, when the state
worked out the impact of keeping the 787 assembly site here, a
multiplier of about three was used.

That assumes the spending power of one new aerospace worker creates
two jobs in service industries.

On that basis, it appears the 11,000 assumes about 3,700 jobs at
Boeing and its suppliers in the state. These jobs would be a “blend of
existing and new” jobs, Barksdale said.

The remaining 7,300 local jobs would come as part of a broad economic
lift, and again would be a mix of new jobs and jobs saved.

Appearing Monday with Everett-area officials and union members
holding signs that read “Doing it right in the USA” and “Best tanker
made by American workers,” Gregoire and Murray said the tanker program
would impact a total 50,000 jobs and 800 suppliers nationally. Seventy
of those suppliers are in Washington state.

Boeing said the overall impact on the state’s economy would be worth
about $693 million annually.

“Boeing is ready for this contract. Washington is ready for this
contract. Our workers are ready to start building it tomorrow,” Gregoire
said.

Murray said the jobs are a reminder of what’s at stake for the state.

“A robust aerospace industry in Washington state affects our
businesses, schools, communities and families,” she said.

The Pentagon plans to award the tanker contract by September.

The Pentagon has been trying for more than 10 years to start the
process to replace Boeing KC-135 tankers that date from the 1950s. Past
attempts have failed repeatedly for reasons ranging from bungling by the
Pentagon to the criminal convictions of a Boeing executive and a top
Defense Department official.

The Air Force formally reopened the bidding earlier this year.

– Seattle Times

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