Gov. Gregoire addresses the second annual Aerospace Summit

October 7, 2008

AS WRITTEN

Good morning, and thank you Linda (Lanham) for that kind introduction.

It�s exciting to be here today for our second Aerospace Summit!

I first want to say how much I appreciate Linda and our other Alliance partners as we continue the great work we�re doing together to make sure aerospace remains one of Washington�s signature industries�

�And not just here in Everett but all across Washington -- from Puget Sound to Spokane.

Thank you all for your efforts, and congratulations.

It�s an extremely busy time for me, as I�m sure all of you can guess.

But there was no way I would miss another chance to talk about the importance of aerospace to Washington�s very fabric�and to talk about what we need to do next to keep it growing and strong.

So I�m here -- And speaking of showing up, I have a little story I like to tell.

I learned recently that there are people out there who worry I won�t show up at any given event.

Before I begin this morning, I also want to acknowledge what is on everybody�s mind --the labor dispute between the Boeing Company and the Machinists Union.

It�s my sincere hope that management and workers will sit down soon and get an agreement that is good for workers and good for Boeing�

�Because that�s good for Washington state. So, I sincerely hope they can get back to making the best airplanes in the world.

I know all of you will be working hard at this summit to network, strategize and think about next steps to confront challenges and strengthen the aerospace presence in Washington.

And I think it would be useful to set the stage with some very positive data regarding the current strength of aerospace and its importance to Washington families and businesses.

Fresh numbers from my Office of Financial Management tell the story:

  • Aerospace now provides our working families 86,700 jobs, and these are jobs that pay decent wages totaling $6.4 billion last year!


  • The average wage for aerospace workers last year was more than $90,000.


  • At the same time, aerospace provided 157,300 indirect jobs. Some people distinguish between �big business� and �small� when it comes to aerospace. We tend to forget that when big business thrives, so do small businesses�


  • �From restaurants and stores that do business with to aerospace workers and their families to car dealers who sell them new vehicles and construction workers who build their houses or repair their roofs.

  • Last year, the aerospace sector delivered 441 airplanes with a value of $40 billion.


  • And from January to just July of this year, aerospace delivered 277 airplanes with an order backlog of nearly 3,700 planes.

  • We all know our national economy is struggling badly thanks in large part to bad decisions on Wall Street and a failure by federal regulators to police our financial system.



    We�re feeling it in Washington too, from families suffering the high price of food and gas to businesses struggling to get the credit they need to meet their payrolls or finance their inventory.

    But I don�t think I need to tell you that our state is extremely fortunate to have a very powerful engine even in this downturn � a strong aerospace sector.

    When I spoke at our first Annual Summit last year, I talked about what I think all of us � together � needed to keep doing in order to keep our aerospace industry growing.

    And I�m happy to say we are growing with new companies -- from Aviation Technical Services of Everett to Cascade Aerospace of Spokane.

    And I�m also very pleased that we are making it happen as real partners.

    I very much appreciate the work of the Aerospace Supplier Strategy Council, which we created just a year ago.

    This council comprises aerospace leaders from around the state, and represents different segments of the industry and geographic areas. The council is, and will be, a big part of future successes.

    Indeed, we all have a role, and I�ve worked hard to fulfill my part.

    We need skilled workers to fill aerospace jobs from machinists to the men and women who overhaul and service airplanes already built.

    And we�re working hard to provide them.

    As part of our work to create a world-class, learner focused education system -- from early childhood through adulthood -- we have invested significant resources in our community colleges and universities.

    We are providing thousands of apprenticeships � in partnership with the private sector -- not to mention more computer scientists and engineers.

    In fact � in partnership with the private sector -- we have more than doubled the number of apprenticeships to nearly 18,000 in the past three years � And hundreds of them are in skilled aerospace jobs.

    Let me also mention that just this year I secured $3 million more for aerospace-worker training to focus on composite technology.

    And the investment is going now to train 130 Washingtonians at Everett Community College, Spokane Community College and South Seattle Community College.

    I know we still have work to do. In fact, I know that right now Aviation Technical Services and Cascade Aerospace are struggling to hire skilled workers, and we are trying to help meet the need.

    But more needs to be done, and working with all of you, I intend to make it happen.

    We need a business climate that attracts aerospace growth through thoughtful, targeted tax incentives. Among the nearly $900 million in tax incentives for business over the past four years, there are tax incentives for aerospace.

    For example:

    We have expanded tax incentives for the aerospace industry to businesses that aren't actually aircraft manufacturers but provide services such as research, design and engineering of commercial aircraft.

    And we extended by five years a 2003 tax break for aircraft repair that was to expire in 2006, saving the industry nearly $8 million in the current two year budget cycle.

    We also expanded that aircraft repair tax incentive to include a broader range of repair stations, saving the industry nearly $6 million this budget cycle.

    And I was pleased to sign legislation that provides that goods in the process of being imported into or exported from this state are exempt from the B&O and retails sales.

    This tax exemption allows Washington to continue as a leader in international trade.

    It kept businesses from using ports in other states and it saved money on transportation and other costs for Washington businesses and consumers.

    And before I took office, L&I insurance rates had grown by 450 percent, while in the past four years they have risen just 4.2 percent!

    Let me talk for a minute about transportation.

    The fact is, we are making real progress to improve safety and get people to work and home faster.

    When I took office in �05, DOT had completed only 12 transportation projects in all of 2004. Since the Legislature chose to put DOT under my control in July of �05, DOT has completed 167 projects!

    Right now, DOT is working on 66 more, and will start another 43 in the next six months!

    These are not stop signs. One project is the Tacoma Narrows Bridge or big improvements on I-5 through Everett. we�re putting in. We�re about real solutions!

    We�re moving forward on 520 with construction of pontoons beginning only months from now. We cut costs on 520 by $700 million and speeded up construction by four years.

    We�re moving forward on the Alaskan Way Viaduct, and two weeks ago we began replacing the most vulnerable south end � that�s 40 percent of the Viaduct!

    Thanks to the people of Washington � who voted for the gas tax to make it happen - we�re making real progress.

    Before I close, I want all Washingtonians to know that there isn�t a day goes by that I don�t think about what more we can do together to keep Washington�s aerospace industry healthy and growing.

    The future of aerospace will continue to unfold right here in Washington.

    Thank You