Re: “Boeing snubs state for new 787 production line” (TNT, 10-29).
John Gillie wrote a great article about the Boeing situation and the second 787 production line going to South Carolina. But there were only three numbers in that article that really explain why Boeing went to South Carolina. Assembly workers in South Carolina make $14 a hour, and workers in Puget Sound make $26 a hour. Extrapolating this to the number of workers (about 3,800) and using this as an average delta, Boeing saves $45,600 per hour of operation in South Carolina and $364,800 per day. It adds up quick.
I am not slamming the workers, but this is the competitive market place and it comes down to cost. Boeing was not interested in a no-strike clause, they needed lower wages. Why? Because the company lost the first Air Force tanker round due to higher cost. My guess: Because it was strapped with higher Everett production rates.
This is not about a second 787 line in South Carolina, because South Carolina already builds major 787 parts. But now Boeing will have a cheaper labor force that will make it more competitive on the next Air Force tanker round. Which means: Guess where the next Boeing tanker will be built? But, then, the possibility of any new tanker in the near future is another story.
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