Gov. Gregoire announces strategy to ensure 737 MAX is built in Washington state

For Immediate Release: November 16, 2011

OLYMPIA � Gov. Chris Gregoire today announced a series of action items intended to ensure the Boeing 737 MAX, expected to support up to 20,000 direct and indirect jobs, is built and manufactured in Washington state.

�There is no question that Washington state is the best place in the world to build the Boeing 737-MAX jetliner,� Gregoire said. �And I believe that when all is said and done � Boeing will make the best decision and build this game-changing aircraft in this state. But I never take anything for granted � especially in a global market where business can go anywhere at a speed unknown even a decade ago.�

The governor�s strategy centers primarily around enhancements to our state�s education system to ensure the aerospace sector has the trained workforce necessary to succeed. Gregoire�s proposal includes:

� Investing $450,000 to expand the governor�s Launch Year program and provide 12 high schools with aerospace curriculum support to prepare high school students to enter the workforce. The investment would also provide two Skills Centers with aerospace manufacturing support to help train additional high school students;
� Spending $250,000 to add �Project Lead the Way� courses at 10 high schools � courses where students learn to problem-solve using their science, technology, engineering and mathematics skills;
� Putting $7.6 million toward expanding capacity at the University of Washington and Washington State University to enroll 775 more engineering students; and
� Investing $1.5 million, with additional support from companies, foundations and donors, to create a Center for Aerospace Technology Innovation at UW and WSU to support university research that will grow the aerospace sector and lead to new jobs in our state.

Gregoire also proposed creating a new Governor�s Aerospace Office to provide focus, direction, oversight and coordination to grow Washington state�s aerospace industry. The office will also gather industry intelligence to advise the governor in advancing Washington�s competitiveness nationally and globally.

Additionally, Gregoire will ask the Legislature to extend an existing aerospace tax incentive for pre-production expenses from 2024 to 2034 to realign the lifespan of the incentive to match the anticipated production duration of the 737-MAX.

�The 737-MAX is a once-in-a-generation opportunity for our state � and we have to go after it with all we�ve got,� Gregoire said. �It�s likely the largest manufacturing contract in the world for at least a decade. Generations of Washingtonians � engineers, machinists and managers � have built 737s and all the other world-class Boeing planes. They are the foundation of our middle class and the backbone of our economy.�

Gregoire�s action agenda follows the release of a competitive analysis conducted by Accenture, one of the world�s premier management consulting firms. The analysis determined what actions or policy initiatives could be taken to improve the state�s attractiveness to Boeing for the final assembly of the 737 MAX, and to make long term investments for strengthening Washington state�s aerospace cluster. Accenture examined Washington�s competitiveness across a range of qualitative factors, and conducted a thorough quantitative analysis of Boeing�s potential return on investment from selecting a 737 MAX assembly site in eight states with existing or emerging aerospace industries.

Today�s action agenda follows a series of steps the governor has taken during her administration to ensure a strong aerospace industry in Washington state, including:

� Investing $3 million this past year alone in federal Workforce Investment Act funds at her discretion to put Washingtonians to work in aerospace;
� Over the past five years, investing $16.9 million to increase math and science enrollments in the public four-year institutions, and $5.8 million for aerospace training and apprenticeship programs at the community and technical colleges;
� Proposing the largest reform in Washington�s workers� compensation system in its 100-year history. This bipartisan package protects our workers and businesses, and saves $1.1 billion over the next four years;
� Reducing unemployment insurance tax rates for 90 percent of businesses in our state, including avoiding a rate increase of 36 percent for 65,000 small businesses. Savings of $300 million are expected in the first year; and
� Making major investments in our state�s infrastructure, including improvements to property, transportation systems and airports.

�Thanks to Tayloe Washburn and the Washington Aerospace Partnership for their work to ensure Washington is home to the 737 MAX,� Gregoire said. �Their work, and that of many others, will help the state�s aerospace industry continue to grow and thrive in the global economy.�

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