The company announced this morning that the Boeing Defense, Space & Security facility, which currently employs more than 2,160 workers, will close by the end of 2013.
The net gain of jobs in the Puget Sound region will be minimal – 200 jobs to begin, with the number diminishing as production continues – and officials anticipate that most positions will be filled in Everett and perhaps at Boeing Field south of Downtown Seattle.
Meanwhile, the company announced that some 100 Washington positions involved in the production of U.S. government VIP aircraft will be lost to Oklahoma City.
“The decision to close our Wichita facility was difficult but ultimately was based on a thorough study of the current and future market environment and our ability to remain competitive while meeting our customers’ needs with the best and most affordable solutions,” said Mark Bass, vice president and general manager at the Maintenance, Modifications and Upgrades division.
“We recognize how this will affect the lives of the highly skilled men and women who work here, so we will do everything possible to assist our employees, their families and our community through this difficult transition,” he said.
Boeing Wichita is the base for the company’s Global Transport and Executive Systems business and its B-52 and 767 International Tanker programs. The facility also provides support for flight mission planning and integrated logistics, the company said in a release Wednesday.
Over the past five years, contracts in Wichita have matured, programs have come to a close or are winding down, and the site does not have enough sustainable business on the horizon to create an affordable cost structure to maintain and win new business, Boeing said.
“In this time of defense budget reductions, as well as shifting customer priorities, Boeing has decided to close its operations in Wichita to reduce costs, increase efficiencies, and drive competitiveness,” Bass stated. “We will begin program transitions in the coming months, with the complete closure of the site scheduled for the end of 2013. We do not anticipate job reductions as a result of this decision until early in the third quarter of 2012.”
Bass said that Boeing will continue to have a significant impact on the Kansas economy and the health of the state’s aerospace industry.
“The company spent more than $3.2 billion with approximately 475 Kansas suppliers in 2011, spanning its commercial and defense businesses, making it the fourth largest state in Boeing’s supplier network,” said Bass. “Based on Boeing Commercial Airplanes growth projections for the next few years, Boeing anticipates even more growth for suppliers in Kansas. Boeing values its long-term partnership with Kansas, and we will continue to work with all of our stakeholders in Kansas in support of a robust aerospace industry in the state.”
Future aircraft maintenance, modification and support work will be placed at the Boeing facility in San Antonio. Engineering work will be placed at the Boeing facility in Oklahoma City.
Although work on the KC-46 tanker will now be performed in the Puget Sound area, primarily in Everett, the 24 Kansas suppliers on the program will be providing vital elements of the aircraft as originally planned.
Boeing has been part of the Wichita community for more than 80 years.
According to the Wichita Eagle, Boeing had long promised that Wichita would become a finishing center for a next-generation aerial refueling tanker should the company win a U.S. Air Force contract, worth $35 billion, to replace the current fleet of tankers. Boeing said winning the contract would mean 7,500 jobs for Kansas, including several hundred at Boeing Wichita. Boeing won the tanker bid last year.
