Renton chosen for new 737 MAX

SPOKANE - Ending months of speculation, Boeing announced it will base future production of the new 737 MAX aircraft in Renton.

State and area officials have worked months to persuade the company to keep production of the plane in Renton, where Boeing already completes final assembly of the current 737 airliner.

Boeing's union employees must still ratify their labor agreement on Dec. 7.

"Building the 737 Max in Renton will secure a long and prosperous future there, as well as at other sites in the Puget Sound area and in Portland, where 737 parts are built," stated Boeing Commercial Airplanes chief Jim Albaugh.

In Eastern Washington, Moses Lake was one site listed in an aerospace report done by Accenture in November.

The report also named possible locations in Snohomish County (excluding Everett), Everett, Bremerton, and Spokane, and outside the state in Idaho, Texas, North Carolina, Alabama, Florida, New Mexico, South Carolina, Kansas and California.

Pat Jones, executive director of the Port of Moses Lake, called the announcement a "win for Washington state."

"We hope that we'll be able to capitalize on that expanded investment by Boeing, by attracting more Boeing-related service providers here to Moses Lake," Jones said.

The Accenture report revealed Moses Lake had a number of distinct strengths as a manufacturing facility for aerospace companies, including Grant County International Airport's runway, ramps and some infrastructure, he said.

Moses Lake still requires a rail extension, additional road capacity, water supply and expanded roads, he said.

The report did raise questions about Moses Lake's labor availability and its ability to ramp up to Boeing's requirements as quickly as they needed, Jones said.

Moses Lake received high marks for the airfield's physical infrastructure and political environment, as area officials are supportive of economic growth, he noted.

Jon Smith, incoming director of the Grant County Economic Development Council, said the announcement wasn't surprising.

The community would rather have Moses Lake selected, but Boeing's decision "is understandable," Smith said.

"We think it is fantastic they are staying here in the state, just with our relationship our community has with Boeing, with (its) flight testing (here)" he said.

The process Moses Lake went through for the Accenture report, wasn't "for naught," he said.

Community members are continuing to put together a package, to show the benefits of manufacturing in Moses Lake.

"We've been able to put some things together that will help us with aerospace in the future," Smith said.

Nearly 100 miles east of Moses Lake in Spokane, officials there said they are delighted with the announcement and intend to get a piece of the action, including possibly landing a second production line for the new jet, expected to go into service in 2017.

Boeing said a deal between the company and the aerospace machinists union was struck to ensure the aircraft is built in Renton, considered the top contender for the manufacturing work. Spokane never presented itself as a candidate for the main production facility, but officials there said the area has advantages that could streamline 737 MAX production.

Citing the area's available land, workforce skills and infrastructure as assets to help Boeing meet 737 demand, a coalition of area groups, including the Community Colleges of Spokane, the City of Spokane, Spokane County, Greater Spokane Inc. and Spokane International Airport, plan to submit a proposal to Boeing next year, said Larry Krauter, the airport executive director.

That proposal has two targets, he said: to recruit Boeing to add a secondary production site in Spokane if it needs more capacity than Renton provides; and to recruit one or more suppliers of equipment and components for the 737 MAX.

If nothing else, Boeing might consider using a Spokane site as a secondary drop-off site for component assembly before the aircraft are hauled to Renton for final assembly, said Krauter.

Washington Gov. Chris Gregoire is seeking close to $10 million from the Legislature to enhance Washington's aerospace industry. Most of that is for job training, education, and transportation.

The aircraft industry accounts for at least 89,000 direct jobs in Washington, with many production salaries ranging from $81,000 to $91,000 per year, according to Tayloe Washburn, the governor's senior  adviser on aerospace development.

Greater Spokane Inc. President Rich Hadley said it made obvious sense for the Spokane coalition to underline the more than 80 aerospace-related companies in this area that are tied in some way to airplane  manufacturing.

Hadley said Boeing may very well look seriously at a second production site in the state if it discovers Renton can't make as many 737s as its orders require. Statements by Boeing union members indicate they  plan to produce about 42 of the 737 MAX aircraft per month in Renton.

"If that number goes to around 60, Boeing may well consider a second production site," he said. At the least,

Krauter said Spokane's airport has extensive land and untapped transportation resources for expanded aerospace production. He said sites on the west and south ends of the airport have been designated as locations for possible expansion and recruitment.

Gregoire hailed the contract agreement as good for the state, the company and the machinists.

"If you can do it in the current configuration, great," Gregoire said. 

If not, the state had other locations Boeing should consider. "For me, Spokane always was an option ... if the footprint in Renton wasn't sufficient."