Boeing Lands In SC
Taking advantage of an exceedingly-generous incentive package, Chicago-based Boeing has chosen North Charleston, S.C. over Washington State as the location for a second assembly site for its 787 Dreamliner program.
It’s one of the largest economic development announcements in the history of the Palmetto State – and a reversal of Boeing’s decision five years ago to locate its main 787 assembly plant in Everett, Washington.
“Establishing a second 787 assembly line in Charleston will expand our production capability to meet the market demand for the airplane,” Jim Albaugh, president and CEO of Boeing Commercial Airplanes, said in a statement. “This decision allows us to continue building on the synergies we have established in South Carolina with Boeing Charleston and Global Aeronautica.”
Boeing Charleston is a former Vought Industries plant in North Charleston that employs 900 workers to produce the Dreamliner’s rear fuselage. Next door, another plant (half-owned by Boeing) employs 1,600 to assemble the Dreamliner’s central fuselage.
The announcement from Boeing came on the same day that S.C. lawmakers formally approved $170 million in new, up-front incentives for the company – although that money is only one part of a massive incentive package that includes multiple tax breaks and a five-year window during which Boeing will not have to pay corporate taxes to the state.
South Carolina leaders – desperate for good news – hailed the announcement.
“Boeing’s decision to expand their presence in our state with an infusion of jobs and capital investment – the largest announcement in South Carolina history – represents not only enormously good news for our state’s economy, but also a telling dividend from our state’s continued efforts to better our business climate,” S.C. Gov. Mark Sanford said.
Meanwhile, in Washington State, the blame game is already underway.
One local columnist in Seattle blasted “lazy, overpaid union goons” who “refused to give Boeing the labor stability it needed to compete in a global market” among a host of responsible parties.
Comments
By Katherine Jenerette on October 28th, 2009 at 6:33 pm
This is great news. This is how the ‘free’ market is supposed to work. Politicicians ‘move’ the government out of the way [read tax breaks etc.] and they will come.
By No Way! on October 28th, 2009 at 6:59 pm
I could not be more excited for South Carolina and the Charleston area! This is great news for the state. I lived in the Greenville area when BMW located its first plant in the U.S. You cannot begin to believe the positive impact it has on the upstate. That is in addition to Michelin Tire locating its North American Headquarters there. This is a major win! The people who put this deal together deserve a hearty thanks! These are good jobs with excellent benefits! Look everywhere else! Detroit, Seattle, ect who link with Obama will soon depend on him wholly for support. South Carolina brings home the jobs with honest, hard working people!
By No Way! on October 28th, 2009 at 7:00 pm
Also, I hope the Unions get the picture here! You should plan to fold soon! Labor is available without the unions! Come to South Carolina!
By vicupstate on October 28th, 2009 at 8:05 pm
“Free Market”. Please. I’m thrilled that Boeing is coming, but let’s not delude ourselves here. Corporate welfare is involved in a big way. That is not exactly ‘free market’. Keep that in mind, when you criticize a low income person buying groceries with food stamps.
By Soft Sigh From Hell on October 28th, 2009 at 8:32 pm
Good for Charleston (I hope; assuming it’s not another Mack Trucks in 10 years).
It is fun though to watch conservatives calling massive state incentives (akin to bribes) the “free market” and their glorying in more docile labor as a draw. No one here does that when industry leaves South Carolina in another step down the development ladder, from our quasi-Third World state to a real one.
By Willow on October 28th, 2009 at 9:09 pm
Congratulations SC and great work by all SC officials elected or otherwise involved in this deal.
By El Cid 90 on October 28th, 2009 at 9:13 pm
Ok, here’s how it works out – Sanford stays due to Boeing announcement. Probably was part of the deal, they wanted a “stable” state goverment, or at least one that would give them the tax breaks and incentives. Next, Sanford is hailed as the new Carroll Campbell (ala BMW), and all his sins are forgiven. King David stays and the RINO’s score big in 2010. Must be good to be king. But alas, no queen, you fool.
In summary, SSDD for SC. As always, the regular folks get screwed.
By justsaying on October 28th, 2009 at 10:31 pm
5 years tax free is not a big deal in the large scheme of things. And as another poster noted, the positive impact this will have on other businesses scouting the state cannot be measured. This is great news for the state. Oh, and ElCid, Sanford will stay because the putzes in the state house cannot dawdle anymore. They keep trying to look like they are working at something, yet missed an important piece of legislation having to do with unemployment benefits. So it is kind of difficult for them to yammer that Sanford is distracted and not doing his job, when they have failed to do theirs.
By JOEBOB on October 28th, 2009 at 10:33 pm
Jenerette are you stupid! Boeing would not announce until the GOVERNMENT intervened with $170 million in giveaways to get them here. They didnt come here because the government got out of the way. they came here because the government GOT IN the way. This isn’t free market at all. Free market would mean everyone gets the same playing field. That is not the case here.
By Kingrichard on October 28th, 2009 at 11:01 pm
I see Sanfraud is already trying to take credit for this – makes me want to throw up – S.C. got them inspite of our stupid Governor. When will this headache go away? Please, does anyone really believe he had anything to do with landing this? Lord, I hope the good people of S. C. know better! He’s an idiot, and I know it had to be hard for McConnell AND Leatherman to stand there and let this IDIOT stand there and try to take credit for this cue.
He is so pitiful, unbelievable!!!!! Again, they came here IN SPITE of our stupid LuvGov.
IO
By marvin on October 28th, 2009 at 11:21 pm
Soft Sigh: You’re right. And Katherine, you are smarter than that. Think! Is government really “getting out of the way” when they essentially pay a company with our money to come here? That’s not the free market.
The politicians slipped this one in when no one was looking. And all the small businesses in this state will have to pick up the tab for this, because they didn’t get to create jobs.
Bad stuff. And getting worse….
By OhNoNotAgain on October 28th, 2009 at 11:45 pm
This is free market, Ms. Jenrette?
They are going to need a massive influx of government services and they aren’t going to paying a fair share to support them. If nothing else, the fire departments nearby are probably going to need a massive upgrade, and that cost is going to get passed on to everybody else. And thanks to the crappy “property tax reform” from 2006 that was property tax relief for people who own more than one six figure home, those property taxes are going to fall on commercial property owners and people who rent houses.
There’s plenty of that in Charleston, but they’ll be pitching a fit in a couple of years, I’m pretty sure.
By Sue on October 29th, 2009 at 5:56 am
You watch. The governor will take full credit for it and start comparing himself to higher Biblical figures than King David.
By Commonman on October 29th, 2009 at 7:39 am
“If you pay them, they will come.” This a no brainer. Give enough away and you can buy any business. Mercedes would have been here if Alabama had not gotten shameless and gave them a blank check. Let’s hope this one grows and stays.
By Just another Joe on October 29th, 2009 at 8:23 am
Wonder how many years of taxing (income, sales and property) the new Boeing employees it will take for the state, regional and local governments to break even on the incentive packages given to Boeing?
By CNSYD on October 29th, 2009 at 9:01 am
Sanfraud can claim all the credit he wants to claim. His political career is toast, so what good is having all this credit going to get him? Does he think Boeing will hire him or something? What I am waiting to see is how the non entities like Tumpy are going to try to spin this so that it appears that they were the brokers.
By Katherine Jenerette on October 29th, 2009 at 9:10 am
It’s called cost benefit analysis – the long term benefit of Boeing being here in South Carolina will eventually outweigh the cost. This is no different than building a highway or airport, which requires far more incentives, to attract business and create jobs.
The public side of a free market solution is will always have built in arguments by naysayers to the Public vs Private debate; I just subscribe to the notion that less government and less taxes ends up on top in nearly every situation. The SC government provided the Boeing Friendly operational environment; now it’s time for the Government to get out of the way and let market forces do the rest.
That’s all for now,
Katherine
P.S. By some of the logic posted here; couldn’t State and Federal highways be argued as corporate welfare schemes since people without cars pay for them too? But, eventually don’t the people derive a benefit by the goods and services that flow along them?
By CL on October 29th, 2009 at 9:21 am
“Boeing would not announce until the GOVERNMENT intervened with $170 million in giveaways.”
Ah yes, because the income generated in this state is really the government’s money, and they generously allow us to keep a little over half of what we earn. Taxes are government intrusion into the free market. Removing or lowering the tax burden does, in a real sense, increase the freedom of the market place (which will never be entirely free or entirely managed anywhere other than in a theoretical sense). It is intervention when they put their hand in your pocket, not when they take it out.
Now, certain aspects of the deal, such as the low interest loans, support the point about corporate wellfare, but the tax cuts do not.
By John Steinberger on October 29th, 2009 at 9:22 am
Great that Boeing is coming to South Carolina! But what about the thousands of small businesses struggling to meet payroll? We need to create conditions which enable small business creation and expansion if we expect to put a significant dent in the state’s unemployment rate. Ask your legislators and candidates for Governor to support the South Carolina FairTax Act!
By Hal I. on October 29th, 2009 at 9:38 am
Would one of Mrs. Jenerette’s handlers please proofread her public comments. WHOOSH!
By Rick on October 29th, 2009 at 10:34 am
I wonder how many small businesses will benefit from Boeings presence? Wonder how many new small businesses will start up to service Boeing? Wonder if the employees that work for Boeing will continue to contribute to Boeings growth by becoming better educated and pro-business minded? Wonder if eventually South Carolina will be such a positve influence on Boeing that they leave Seattle? 170 million, yeah alot of money….will we get it back? Many times over if we’re smart and don’t screw the deal up. Just saying…
Thanks Boeing for employeeing South Carolina’s workforce, bringing jobs to a devastated economy, employing South Carolina men and women, and last but not least, allowing these Men and Women to support their families instead of relying on a welfare check. Ya’ll come on down, partake of the goodness of South Carolina.
By Cheese Toast Messiah on October 29th, 2009 at 11:11 am
This is great news and all, but can we please hear more about the graveyard sex scandal now?
By Dismayed on October 29th, 2009 at 11:12 am
This is a fine example of the need for both strong government and strong private input to maintain a 21st century society. The state of South Carolina and local governments in the Charleston area are going to be putting out a lot of money for many kinds of infrastructure, from roads to schools, before Boeing starts paying off that investment. We have already invested a lot of public money in tech schools, harbor development, and so forth to attract businesses like this one. Presumably the deal with eventually be good for everyone, but without that government-funded investment, they wouldn’t be coming here. The notion that this is a triumph of the unfettered “free market” is absurd.
By Jonny D on October 29th, 2009 at 11:29 am
For you ASSHOLES who are saying that Boeing landed in SC despite the Luv Guv, Fuck You. In the words of the Luv Guv himself (ok, Eminem):
Success Is My Only Motherfucking Option, Failure’s Not.
http://www.youtube.com/watch?v=hO2wA0Te0wM
By Eric on October 29th, 2009 at 12:35 pm
Hey, guys remember Larry Phillips made SC look a fool. Looks like SC got the upper hand today. http://www.fitsnews.com/2009/08/07/washington-state-candidate-rips-south-carolina/
By Crooner on October 29th, 2009 at 1:40 pm
Cost benefit analysis is something that one might undertake to determine the return on the goodies handed out in the long run. Where would we find that? Does anyone really believe that the powers that be did anything more than give up what they had to to land Boeing?
Hell, maybe I can sell that empty house I have to one of their executives. Anyone know how many are coming?
By Just another Joe on October 29th, 2009 at 2:47 pm
“How many are coming?” I’m fairly certain that not all of the 3800 projected employees will come out of the Ashley-Cooper basin and elsewhere in SC. Are there enough employees in the state with the skill sets needed by Boeing in this plant? What is the break down of the prior residences for workers in the other aircraft manufacturing plants n North Charleston that are up and running now? Was training required to get these employees up to Boeing standards. I expect that many will be relocating from the Seattle area along with their own ideas that are somewhat foreign to SC’s way of just pissing along. Like providing a quality education to our children.
Sure don’t want an untrained riveter assembling an aircraft that I will be flying in.
By K Trane on October 29th, 2009 at 4:31 pm
It is exciting that Boeing is coming to South Carolina, however, it is important we don’t make the same mistakes Michigan did by not continuing to diversify our economy.
By SCCON on October 29th, 2009 at 5:33 pm
$170 million plus perks for 1300 jobs. These had better be HIGH paying jobs, at a minimum price tag of $130,000 in taxpayer dollars PER JOB.
By SnakeMD on October 30th, 2009 at 5:03 pm
By SnakeMD on October 29th, 2009 at 7:19 pm
Look what the unions did to GM and Chrysler. Companies like these die a slow death when they hook up with these stiffs. The unions at Winchester never allowed this, 100 year old +, firearms manufacturer to fully modernize. They closed up and reopened here under license with F and N Manf. What disturbs me is that Boeing is coming here with only lease agreements. They are renters until they get a foothold. I hope it works for them as well as SC. Folks in southern California brag about how much the corporations there pay their employees and here in SC the companies brag about how little they pay their employees. So, basically we are couple of pay scales above China. However, any job is better than no job. Wonder how many South Carolinians will get hired? There will be 50,000+ applications coming in from all over the nation. Maybe Boeing should get additional incentives for each SC resident they hire. Full throttle to the wall…
By commercial property to let on November 5th, 2009 at 11:35 pm
I like to take a fly in Boeing. This is my wish