Boeing is venturing out of the current crisis. One of the big decisions it has to make is whether or not it will consolidate production of the 787 Dreamliner in Charleston, South Carolina. This would be a major blow to the Seattle area, which has so far produced most of Boeing’s aircraft.
Why South Carolina is in the process
Boeing’s roots are strong in Seattle, so it may surprise some people that the planner is considering consolidation in South Carolina. However, Boeing has a strong presence in Charleston. Charleston is the company’s second 787 Dreamliner definitive assembly and delivery facility.
The facility is quite advanced. The site is also where 787 hull sections are fabricated, assembled and installed for the rear sections of the hull. The remaining parts, such as the midbody sections, are flown to South Carolina via the Dreamlifter. The site has become a critical hub for Boeing. In fact, the largest Dreamliner variant, the 787-10, was made in Charleston alone.
In addition to releasing the company’s results from the second quarter, Boeing CEO David Calhoun announced that the aircraft manufacturer was studying whether or not to consolidate Dreamliner production at one location.
Why Charleston would make sense
Boeing has plans to reduce production of the 787 to six per month – something Charleston can only handle. Boeing believes that the high number of deferrals leads to fewer deliveries, more need for parking, and lack of customer orders guarantees the reduction of production.
In addition to being the only place that Boeing can produce the 787-10, Charleston also has a significantly high number of non-union workers, something the manufacturer can use to reduce labor costs for workers. Plus, there are many financial benefits that the government in South Carolina generally provides for businesses that provide jobs and production facilities.
It would be a rough outcome for the Everett area
According to a report in The Seattle Times, many governments and workers in the Seattle area have for some apparent reason taken a stand against consolidation in South Carolina. For one, the mayor of Everett is of the opinion that the relocation of the 787 assembly line to South Carolina would have devastating consequences for the local economy. Jon Holden, president of District 751 of the International Association of Machinists (IAM), which includes a good number of Boeing’s Everett employees, said that these jobs are critical and that Everett employees are those jobs. ” have earned “.
If the 787 Dreamliner production in Everett ceases, operations in Boeing’s Seattle area will be left to the low-threshold Boeing 767, 777, and soon-to-end 747 in terms of wide-body production. The one bright spot for the area’s staff would be the 737 MAX program, which will reach 31 per month by 2022.
What if Boeing opts for Everett?
If Boeing chooses Everett, it would be rough for Charleston. For one, Charleston also employs thousands with a focus on Dreamliner production. Unless Boeing makes changes to Everett, the manufacturer will only be able to produce the 787-8 and 787-9.
If Boeing decides that the 787-10 is not very important for a few years, then it may make sense to consolidate in Seattle. For one, Boeing can better manage production and quality, something that Charleston has come under control. On the other hand, if Boeing could make Dreamliners cheap in Charleston, then consolidating in Everett would not provide the full benefits for Boeing.
For Everett area employees, however, consolidation in the state of Washington would represent Boeing’s strong commitment to the Seattle area. Whether that kind of symbolism is what Boeing is looking for remains to be seen.
What will Boeing do?
Boeing has made a big decision. The planmaker has indicated that its focus is on efficiency in terms of operations and reducing costs amid a major financial crunch. The results of the study are not expected yet, which means there is still some time before Boeing makes a decision.
There will be some disappointment, despite what Boeing chooses. Maintaining two production points while the manufacturer only produces six per month is inefficient and would not provide the cost savings that Boeing is seeking.
What do you think Boeing will do when it comes to producing the Boeing 787 Dreamliner? Let us know in the comments!
