The Voice for Industry
 |
 |
 |
Ode to the 737
Our award for 2009's Best News Story That Almost No One Heard Of goes to the employees of The Boeing Company.
In 2009, while the region was deluged in news about the Great Recession, 787 set backs and the decision to expand into South Carolina, production teams at Boeing cranked out 481 commercial jetliners.
It was Boeing's largest aircraft production year since 2001. Deliveries were up 28% over strike impacted 2008, up 9% over 2007 and 71% over 2003, the most recent aircraft production low point.
This did not mean Boeing had a profitable year. Penalties for 787 delays and other problems helped shred the bottom line. But few things are better for our regional economy than a strong Boeing production year, and however awful your 2009 was, odds are it would have been worse if so many airplanes weren't rolling off local assembly lines.
According to Washington state tax records, aircraft manufacturing produced gross business revenues of nearly $20 billion in the first half of 2009. That was up 10% from the pre-strike first half of 2008. Aircraft also accounted for more revenue than the combined totals for all Washington state companies engaged in banking, real estate, insurance, telephone service, telecommunications, legal services, accounting and department stores ($18 billion).
Aerospace industry analysts are fairly gloomy about the production year ahead because most of the airplanes built today were ordered well before the financial meltdown. Worse, some say 2009 production was artificially stimulated by government programs to finance airplane purchases both in the US and in Europe.
But, enough negativity. It takes a lot of effort to build 481 jet liners in a period of 12 months, so let's give the production level the praise it deserves and take a moment to appreciate what it tells us about some big points that got lost in the news about South Carolina.
Boeing today possesses a record backlog of 3,375 airplane orders and because of the projected growth in world air travel, Boeing believes the world may need more than 29,000 new airplanes over the next 20 years.
Seattle Industry possesses absolutely no inside knowledge regarding Boeing's corporate approach to all this, but we suspect one goal is to make as much money as is humanly possible, and for our money that will mean building thousands if not tens of thousands of new airplanes right where they're built today, namely within 40-minutes driving time of the Space Needle.
How can we make such an assertion, given the decision to head south to Carolina?
Well, look at the numbers. According to the press releases, if the new assembly line in South Carolina comes together as planned, Boeing hopes the Carolinians will be able to build 3 Dreamliners a month by 2013. That's "three" airplanes per month.
In 2009, Boeing employees in Washington turned out three airplanes every two days.
Carolina may possess growth potential, and it might become an important asset in the Boeing family feud over labor relations, but if, as or after Carolina grows, Boeing will need to keep building hundreds of airplanes every year to keep up with global demand and our region remains the only place in the world where Boeing has the industrial capacity to help achieve that type of production.
This should be reassuring, but it is not a reason for complacency.
To build hundreds of airplanes in our region every year, people and goods must be able to flow between Renton, Everett and Boeing Field. We also need an on-going supply of highly skilled workers. Sounds simple enough, but our public processes for meeting these basic transportation and workforce needs are far from optimal. But, those are topics and challenges for another day.
We'll conclude this report in an upbeat mode and with a brief Ode to the 737.
Many of us might be awed by the 747, admire the 777, and remain hopeful for the fuel efficient future of the 787. But, the past, present and future of Washington state aircraft manufacturing remains pretty firmly tied to that good old reliable, the 737.
The single-aisle jet was first built in 1967 as part of the program to replace the historic 707 and as the 737 advances deeper into its fifth decade of production, it remains a linchpin to Boeing plans for the future.
Of the 481 airplanes completed by Boeing employees in 2009, 372 of them were 737s. That was 77% of the total. The model also accounts for nearly 62% of Boeing's record backlog and the 737 or an airplane much like it is expected to account for about two thirds of the 29,000 new airplanes needed over the next 20 years.
The larger wide-bodied jets might appeal more to the imagination, but the 737 is much better suited to serving the relatively short direct flights that are expected to grow so dramatically with the rise in world-wide air travel.
The wide bodied jets from Everett tend to make the news while Renton just makes airplanes, and in 2009, our region was lucky Renton made so many of them.
Keeping Freight Moving During Major
Transportation Disruptions
Washington will implement the Commercial Vehicle (CV) pass system
when major truck freight highways are closed or severely restricted and a
limited capacity highway detour is available. CV passes will be issued
based on the highway detour's capacity and the priority of goods
carried.
You are invited to attend an informational briefing on
Washington State's new Commercial Vehicle Pass system:
- Wednesday,
January 20: 1 - 3pm at the WSDOT South Central Region Headquarters, 2809
Rudkin Rd, Union Gap, WA
- Thursday, January 21: 10:00 am -
12:00pm at the WSDOT Northwest Region Headquarters, 15700 Dayton Ave. N.,
Shoreline, WA
- Friday, January 22: 1 - 3pm at the WSDOT Southwest
Region Headquarters, 11018 NE 51st Circle, Vancouver, WA
-
Wednesday, February 3: 1 - 3pm at the WSDOT Eastern Region
Headquarters, 2714 North Mayfair St., Spokane, WA
Keeping
freight moving during major transportation disruptions is key to
supporting the state's economy and jobs, and to ensure that our citizens'
essential needs are met. The Washington State Department of Transportation
(WSDOT), in partnership with the Washington State Emergency Management
Division (EMD) of the Washington Military Department, Washington State
National Guard and the Washington State Patrol (WSP), have developed a new
Commercial Vehicle Pass system that will support the state's emergency
responders, citizens' needs, and the economy by safely and efficiently
authorizing emergency, essential and other goods delivery to and through
affected areas during a highway disruption of two to seven days
duration.
When the new CV pass system is operational in 2010 and a
highway disruption occurs, shippers and trucking companies will be able to
request and receive CV passes on-line. The CV pass will be affixed to the
truck cab window and used to authorize entry onto detours at highway
checkpoints.
To learn more about the new Commercial Vehicle Pass
system and try out the online system, please RSVP to Joy Dopita
atdopitaj@wsdot.wa.gov indicating which briefing session you plan to
attend, your company name, representative's name and email address, by
January 18.
If you cannot attend a briefing session, look for more
information to be distributed through the WSDOT freight notification
system and the Washington Trucking Association
Nightly Closure of SR 18 between Weyerhaeuser Way and I-5
Beginining on Monday, January 11, the two right lanes of westbound SR 18 between Weyerhaeuser Way and I-5 will be closed on Monday and Tuesday nights from 10 p.m. to 5 a.m. for construction work. The ramp from westbound SR 18 to northbound I-5 also will be closed at the same time. It is estimated to be completed by Tuesday, January 19. A signed detour will be in place.
More information on these improvements is available on the project Web site.
Sodo Construction Update
Highlights:
- Jan 22, westbound S Spokane St between 6th and 4th Avenues S will be closed until 2012.
- Jan 22, the westbound off-ramp from the Spokane Street Viaduct to northbound 4th Ave S into SODO will be permanently closed.
- Jan 22-24, the northbound I-5 access to West Seattle will be removed for the weekend with a detour in place.
This information can also be found online: http://www.seattle.gov/transportation/sodo_latest.htm
East Marginal Way Grade Separation
Construction begins Thursday, Jan. 14, 2010
When complete, the new overpass will decrease traffic delays, improve business access and increase safety. The new structure will be in service by mid-2011.
- The right-hand east bound lane of S Spokane St between E Marginal Way and Duwamish Way will be closed from 7 a.m. to 4 p.m. January 14, 15 and 18.
- All lanes on S Spokane St will be open between 4 p.m. and 7 a.m.
- The permanent closure of the northbound lane of Duwamish Way begins January 14.
- Both lanes of Duwamish Way will be closed for the duration of the project beginning February 1.
Visit our Website
Click to read.
Past eBulletins
Coming and Going Janus
Markey Machinery - Honest to Goodness Greenies
Green Shoots Finally
Meet Dan Satterberg
Big Rate Hike?
Subscribe to our eBulletin.
We Need
You
Do you
like what you are hearing from us? The Manufacturing Industrial Council is
a member based, non-profit organization that advocates for manufacturing
businesses, and we need you! To become a member click
here.
More
Info?
Questions, Comments, or suggestions about the Seattle Industry
eBulletin are always welcome. Your input will make the bulletin a more
successful product. Contact us at (206)762-2470 or fax
(206)762-2492.
