And here’s what Senate Majority Leader Lisa Brown has to say:

“I am deeply disappointed in today’s announcement. I had great hope that Boeing, in the end, would decide to keep the second line of the 787 here in Washington.

“I’m especially disappointed that the decision was made at a level that we could not influence locally. In the Senate, we wanted to keep 787 here at home – we worked with both sides and saw strong local interest from local Boeing leaders and employees to keep the 787 here at home – but the decision was made far away, and, very unfortunately, we were unable to affect it here at home.

“I’m proud of our state. I continue to believe Washington offers a far more skilled and experienced workforce, far more competitive infrastructure, and a far more committed Legislature and governor than does South Carolina. I continue to believe that Boeing and the 787 are positioned most competitively right here in Washington.

“And while, sadly, some may use today’s disappointing announcement to score political points, Washington residents can be proud that their state remains a great place to do business according to almost every objective analysis, including those performed by national publications such as Forbes and U.S. News & World Report.

“I know that local Boeing leaders and the Machinists remain committed to Washington. Boeing is still the largest private employer in the state, and there remains plenty of work on the 737, the 777, the first line of the 787 and, we hope, the 767 tanker for the tens of thousands of Boeing employees in the state.

“We will continue to work together and identify ways to control our own destiny here in Washington in the future.”

Here’s what Rep. Cary Condotta has to say:

Boeing’s decision to locate this plant in South Carolina is a major blow to Washington’s working families and the larger business community. This is a missed opportunity that puts many jobs in Washington at stake. The fact of the matter is many small- and medium-sized employers rely on Boeing and their work force to support their companies. The governor and Democrat-controlled Legislature’s apparent lack of commitment to land the second 787 production plant hurts every business sector in the state.
“While I appreciate some of the eleventh-hour overtures being made on behalf of our state, it is apparent that it was too little, too late. Many of us have been trying to address the concerns of job providers for the last several years.
“The governor has been in denial about these concerns, citing the Forbes report that Washington is one of the top places to do business. I’m a business owner though and I know firsthand the difficulties employers face in our state. It’s obvious Forbes flew over Washington and never did business on the ground here. How many more businesses have to leave, and how many more jobs do we have to lose to other states, before we get serious about substantively improving our business climate? We need aggressive leadership committed to creating and protecting jobs for Washington families.
“This decision lights the ‘no vacancy’ sign to other employers who may have been considering bringing jobs to our state. While the governor and her staff have downplayed what they consider the loss of a mere 700 jobs the production plant could have created in Washington, I think the 350,000 people currently unemployed statewide would have liked a shot at the gainful employment the plant would have offered.
“The loss of these much-needed jobs could have been avoided. An independent report issued to the Legislature earlier this year practically handed the governor and lawmakers the keys to keeping and recruiting jobs to our state. The report made clear workers’ compensation and unemployment insurance reforms are top issues for every employer. Sadly, the report did not prompt action by the governor and legislative leaders.
“Washington will forever be known as the state that told the aerospace industry, and every other company looking to grow their operations, to fly to better climates. For those legislators who believe our state is better off without the second production plant, I have a bridge to nowhere to sell you.”

Tags: boeing, Gregoire, Sen. Lisa Brown

Gov. Chris Gregoire just sent out a statement on Boeing’s decision to leave AND you can see her LIVE on Tvw right now.

Here’s her full written release:

“This is obviously a very disappointing day for all Washingtonians, particularly the more than 73,000 Boeing workers in our state. We did all we could to demonstrate that Washington is the best place in America to build airplanes. State and local government worked hand in hand with our capable Congressional delegation, business and community leaders, educators and countless others to show our collective support for locating the second 787 assembly line here.

“Unfortunately, the active and intense discussions between Boeing and the Machinists union did not result in an agreement acceptable to both sides. My colleagues in the Congressional delegation and I worked tirelessly to urge an agreement if at all possible; ultimately the two sides could not come together.

“We must keep in mind that the first and best 787s will be build right here. We have over 80,000 aerospace jobs in Washington, all of which are in a dynamic and highly competitive industry. There will be other competitions to come – the tanker is next and we intend to win. We cannot soften our resolve to stay as good as we can possibly be, in order to be ready for future competitions.

“We may not build every single Boeing aircraft in Washington, but Washington will continue to remain the home of the best workers building the best airplanes for the next 100 years.

“I want to thank our congressional delegation, local leaders and our regional and statewide business and labor communities for all of the work they put into this effort. This spirit will serve us well in future efforts to both grow our current companies and locate new businesses in Washington.”

She stuck to that outline during her brief statement. Here’s what she added in the Q&A portion (I didn’t catch all of the questions, but tried to provide some context):
“I urged them to stay at the table, that there was a lot at stake and a lot at risk and to do everything in their power … they said that’s exactly what they were trying to do,” she said. “In the end, it’s up to the parties at the table, and the parties couldn’t reach an agreement.

“When you’re not at the table, it’s hard to second guess. It’s hard to say, One party should have done, The other party should have done … both parties were very clear: They didn’t want anyone at the table besides them… what we were really doing as forcefully as they could is to continue to urge them to be at the table,” she said.

“In the end of the day, I’m disappointed, I’m angry, I hurt for the workers and I think the company made the wrong decision,” Gregoire said.

“You can’t say how much is Boeing worth, because you have to think about the indirect (costs),” she said. “The South Carolina is projected at its height to have about three 787s per month. Washington will have about seven,” she said, making it clear that Washington will continue to be the “home of Boeing… In any given year, it’s about 35 airplanes that will be built in South Carolina. Here, it’s about 500.”

“At no time has Jim Albaugh suggested to me that this means they will be moving Boeing to South Carolina,” she said — meaning she believes Boeing will continue to keep its roots in Washington state. “We’re going to have to continue to compete to make sure we maintain our position,” she said.

“They were very clear that part of the reason as Jim Albaugh mentioned to me is the cost of doing business unrelated to the state. He specifically said it’s not about workers’ compensation, it’s not about taxes … it’s about the wage they can pay to workers,” she said.

“It’s not for me to say what the future holds. I have to say to you, we have to be competitive… if we don’t keep pace with the competition, you can rest assured that Washington will not be able to keep those lines. It’s all about competition,” she said. “It’s incumbent upon us to do what we’ve been doing.”

“I don’t have a bad relationship with labor or Boeing. I have a good relationship with Boeing, and that has become very clear to me over the last several weeks … I may disagree with their decision today — and I do disagree with the decision they made today — but it is my job to argue for every job” Boeing brings to the state.

“I know you all want me to tell you what I know about (the conditions of the contract), but I think it’s best you hear from them,” she said, of questions on whether Boeing was asking for a 10-year no-strike guarantee.

“Boeing as a company … wants to talk about worker’s compensation … and unemployment insurance … so there will always be new agenda items where we can work with them and labor,” she said, in order to make Washington a more competitive place for businesses.

Gregoire said CEO Jim Albaugh told her “despite the fact that I kept telling you that (you couldn’t do anything more), you kept doing more.”

Tags: boeing, Gregoire

The Seattle P-I is reporting that Boeing’s second 787 line will be built in South Carolina. Stay tuned for details.

UPDATE: Here is Boeing’s news release, which says they chose South Carolina for the new plant because it “allows us to continue building on the synergies we have established in South Carolina with Boeing Charleston and Global Aeronautica,” said Jim Albaugh, president and CEO. He said the move will strengthen Boeing’s competitiveness in the long-range.

TVW will be LIVE at 2:45 (in just 40 minutes) with a press conference from Gov. Chris Gregoire.

Tags: boeing

Gov. Chris Gregoire released a statement today about Boeing’s second production line for the 787, which South Carolina is wooing.

She said she believes Washington is the best option, considering “More then $3 billion on the table in incentives, the best workforce in the world, and the lowest production risk for the company.”

She said she continues to work with both sides — Boeing management and labor unions — to work toward resolution. “It ain’t over ’til it’s over,” she said.

Meanwhile, the Seattle Times is reporting that it may, indeed, be over. Read the whole story here.

Update: Sen. Lisa Brown also sent out a release, saying: ““As I’ve told the Boeing’s Commercial Planes Division President and CEO Jim Albaugh, I believe the solution to Boeing’s needs can best be determined locally. The state Legislature has a long track record of working with Boeing on its key issues, including providing billions in tax incentives and, perhaps most importantly, investing in aerospace worker training and apprenticeships. I point this out not to say that Boeing should be satisfied with past efforts, but rather to demonstrate our willingness to do all we can to keep Boeing competitive on the global stage.”

Tags: 787, boeing, Gregoire

Here’s what Rep. Cary Condotta has to say:

“Boeing’s recent announcement is a frank reminder that the economies of other states are much more competitive than Washington. Another warning flag went up this past legislative session when an independent study on the state’s aerospace industry competitiveness with other states cited several areas of concern, most notably high unemployment insurance and workers’ compensation taxes. The report also highlighted difficult labor relations that have led to further order delays and billions of dollars in lost revenue to the company.

“Boeing is simply looking for what so many other employers need in our state: a fair business and labor climate. Instead, we have incrementally pursued the so-called ‘progressive agenda.’ One only has to look as far as California or Michigan to see the results of such policy. It has failed everywhere it has been enacted. We must quickly change course or Boeing, Yahoo and others will change theirs.

“The bottom line is our region needs to retain and create new jobs. The best way to do this is to address employers’ needs. I will continue to join my fellow House Republicans in putting forward solutions for a better Washington, and we hope the governor and her party will finally embrace them.”

And after the jump is what Sen. Mike Hewitt thinks. (more…)

Tags: boeing

Boeing has announced it will buy a Vought facility in South Carolina. According to The New York Times, Boeing says the move could resolve “supply issues” that have lead to the 787’s delay.

Gov. Chris Gregoire released a statement, saying she’s sure this won’t jeopardize Washington’s place in the aerospace market: “Yesterday, I spoke with Scott Carson, who informed me of Boeing’s decision to purchase the Vought facility in South Carolina. I recognize that this announcement underscores that Boeing wants to ensure that it manufactures the 787 Dreamliner as efficiently as possible, thus they have made the decision to buy Vought. In my conversation with Scott, he assured that no decision has been made on a potential second line for the 787, and that today’s announcement doesn’t have anything to do with that. Washington state is proud to be home of the world’s best airplane manufacturer and most skilled aerospace workforce.”

Tags: boeing

Sen. Ed Murray: “Washington has been good for aerospace and aerospace has been good for Washington,” Murray said. “When it comes to aerospace, our higher education system is second to none.”

Murray said the council will help strengthen the state’s already established industry.

Rep. Jeff Morris said the state has done a lot, but must do more in order to stay competitive.

Sen. Mike Hewitt: “It’s very, very important for all of us to keep track of where we’re at, keep competitive and make sure that the next Boeing airplanes are built in the state of Washington.”

Gregoire said the council will help ensure that students across community colleges will have similar training, likewise for universities.

“Our research and development is great, but it sits in silos,” Gregoire said. She wants to integrate research from WSU and UW. “What we can do with this council, we can actually get ahead of anybody.”

Gregoire said Boeing wasn’t available for the press conference only because their representative couldn’t make it. She said they’re supportive of it.

She also said she found out this morning that she heard of the reduction in 777 production — from 7 to 5 — and she asked if it would lead to layoffs. “The answer was yes.”

Tags: aerospace, boeing

Here’s what Gregoire has to say about aerospace competitiveness:

“We have made it very clear in Washington state we will not forget for one minute the great industries we have in Washington state,” she said — including aerospace. “We need to do more, and that’s why we decided for an outsider to take a measured, objective and outsider look,” she said — the study she’s referencing today.

She said the state’s advantages include the workforce, strong research and development and quality of life.

“But the study also confirmed that we need to do more to stay ahead,” she said. She noted “creating an environment where labor and business can communicate.”

She’s introducing legislation to create a council on aerospace. She said it will work to coordinate efforts at Washington’s universities and community and technical colleges.

“We need to make sure that their training is coordinated statewide.” She said we also need to “seamlessly” connect UW and WSU’s research efforts that are “very critical to the future of aerospace in this world.”

She also wants the council to “foster an environment of supercommunication,” which means communication among her office, business, universities, researchers, and more.

The council will include four legislators, the UW and WSU presidents, a Boeing representative and many more.

“We are determined that that tanker will be built in not only the United States but in our state.”

Tags: aerospace, boeing, Governor

Gov. Chris Gregoire is holding a press conference at 2:45 — so, in just 45 minutes — to discuss the Aerospace Industry Competitiveness Study. She’ll also discuss “proposed aerospace legislation.”

We’ll have it Live on TVW. You can also watch it on tvw.org. I’ll post it here when it’s available online. And look for it in tonight’s Legislative Review, which airs at 11 p.m.

Tags: boeing, Governor