Gregoire plans competitiveness push for aerospace

Gov. Christine Gregoire is creating a new council to promote aerospace manufacturing in Washington State. The move is spurred by fears that the state may lose Boeing work — specifically a second production line for the 787 Dreamliner — to states in the southern U.S.

At a press conference this afternoon, the governor is set to announce legislation setting up the new 13-member council with a goal to improve the state's competitiveness in the aerospace sector.

The new council will have four members appointed from industry and labor: one from Boeing; one representing the more than 250 smaller aerospace suppliers in the state; one from the Machinists union; and one from the white-collar engineering union.

In addition, there'll be nine council members from public agencies, the legislature and public institutions, among them members of the state House and Senate economic development committees, and the presidents of the University of Washington and Washington State University.

The Governor's bill also proposes to use federal workforce investment funds to increase training, research and development activities in aerospace.

The announcement follows a study from Deloitte Consulting, commissioned by the Snohomish County Economic Development Council (EDC), to assess the state's competitiveness in the aerospace sector, specifically comparing Washington to Kansas, North Carolina, South Carolina, and Texas.

The Snohomish EDC is a non-profit funded in part by contributions from industry, including Boeing. Deloitte was the firm commissioned by the state in 2003 to come up with a plan to ensure that the 787 would be built here.

Deloitte's 2003 report came up with a recommendation, later implemented, that the state grant Boeing tax breaks worth in excess of $3 billion.

The new Deloitte assessment states that "Washington has not been a player in recent site selection decisions by aerospace companies."

It cites the choice of South Carolina for a plant that builds the mid-section of the Boeing 787 and seleection of a site in North Carolina by Spirit Aerosystems for its plant that will build pieces of the Airbus A350.

"Leaders in Washington believe there is a growing gap in Washington's ability to compete with other states for attracting and retaining aerospace companies," the report states.

The report specifically recommends:

• Setting up a state aerospace council

• Increasing opportunities for training in aerospace skills

• Funding aerospace-relevant research

• Legislative changes to reduce business costs — including the costs of unemployment insurance, workers' compensation, and business taxes.

Dominic Gates: 206-464-2963 or dgates@seattletimes.com