Final assembly of Boeing’s latest 787 will be exclusively in S.C. – but what does that mean for the state and our region?
Final assembly of Boeing’s latest Dreamliner airplane will take place exclusively at the company’s facility in North Charleston. With final production of the first 787-10 scheduled for 2017 and design of the plane already underway in Everett, Wash., state officials and members of the Upstate’s aerospace industry are bracing for potential economic impact.
Boeing is an important partner and a major anchor of South Carolina’s aerospace sector, said Bobby Hitt, secretary of commerce. Over a five-year period, the state has experienced more than 600 percent growth in aerospace-related jobs, he said.
“Just like BMW before it, their success in the Palmetto State is encouraging the location of aerospace suppliers, such as carbon fiber manufacturer Toray Industries in Spartanburg, and service providers like Kaman Engineering Services in Charleston,” Hitt said.
Clemson economist Bruce Yandle said the Boeing expansion is so large that it will send ripples across the entire region, and certainly to the Upstate, which is populated with specialized component manufacturers and service providers that are already Boeing-connected.
A sign of things to come
Those Upstate manufacturers may not see an immediate boost in demand for their products, however, said Jason Premo, CEO of Greenville’s Adex Machining Technologies. Boeing’s announcement is a sign of things to come, although results similar to BMW’s effect on the region’s automotive industry should not be expected, he said.
Most parts for the 787 are made internationally and flown over to Seattle, Japan, Sweden, India, Canada and Australia, so centralizing production to South Carolina would not affect that strategy, he said.
But the state is poised for growth in that sector with or without Boeing, Premo said. The state’s economic climate, skilled workforce, pro-manufacturing legislature, low unionization, and port access remains the most attractive incentives to potential businesses.
“Above Boeing’s expansion, these factors will be more important in suppliers choosing South Carolina to locate (or relocate) their factories,” he said.
Premo said the state would eventually be the exclusive production center for the 787, one of the world’s most advanced modern commercial jets, which is receiving strong customer demand and a backlog that continues to rise.
“While not definitive, it should lead to some additional 787 suppliers locating in the area,” he said.
A “huge” win for S.C.
In a release issued by the company last week, Larry Loftis, vice president and general manager of the 787 program, said Boeing considered a variety of options before deciding the most efficient and effective solution was to build the new plane at Boeing South Carolina.
Production of the 787 will now take place in both North Charleston and Everett to increase production rates, he said. “We’re happy with our growth and success in South Carolina, and the continued success at both sites gives us confidence in our plan going forward.”
Following Boeing’s announcement, Gov. Nikki Haley issued a statement calling the company’s exclusive operations in North Charleston “huge” for the Palmetto State.
Boeing’s decision to commit the Dreamliner’s future in South Carolina is a testament to its workers, she said. “South Carolina workers are the best around.”
The Everett facility will continue to assemble seven airplanes per month, while Boeing South Carolina final assembly will gradually increase from three 787s per month to five per month in 2016 and seven per month by the end of the decade.
The aircraft manufacturer will continue to assemble both 787-8s and 787-9s in Everett, Wash., and North Charleston.
