Geographical Summary of Boeing Actions
The following summaries show anticipated changes in net employment related to Boeing's facilities announcement and the previously announced discontinuation of the MD-80 and MD-90 jetliner programs.
This list does not take into account other factors that can influence employment levels such as new orders, new programs, adjusting production rates to meet changing needs of commercial and government customers, or implementing productivity initiatives.
It is Boeing's practice to reassign employees as much as practical and the net reductions will be met in part through attrition.
The company continues to study additional ways to gain more synergies from the merger of Boeing, McDonnell Douglas and Boeing North American.
No significant changes are planned for sites that are not mentioned in the following summary.
Definitions
Boeing has made a strategic decision to organize major activities within the existing operating groups into Program Management Centers, Assembly, Integration & Test centers, or Strategic Manufacturing Centers. Following, is a brief description of each:
- Program Management Centers (PMC) : Responsible for overall program management of Boeing product lines. PMCs are responsible for major program functions such as executive administration, product marketing, product design, engineering, research and development, and supplier management. While many PMCs will have on-site facilities for final assembly, integration and testing, some PMCs will manage programs that have assembly at other locations.
- Assembly, Integration & Test centers (AIT): Responsible for final assembly, systems integration and testing of products. They may have on-site management and engineering in support of the Program Management Centers.
- Strategic Manufacturing Centers (SMC): Responsible for producing parts and components, or serving as centers of excellence for specific manufacturing processes such as tooling, machining, composites fabrication, electrical fabrication, electronics fabrication and sheet metal fabrication. Associated engineering work may be performed within a Strategic Manufacturing Center.
Note: Boeing's two largest operating groups are referenced as follows in the geographical breakout:
BCAG: Boeing Commercial Airplane Group
ISDS: Information, Space & Defense Systems
Alabama
Establish Assembly, Integration & Test centers for International Space Station support in Huntsville and for Delta launch vehicles in Decatur. Terminate leases and move into company-owned facilities. Construction of a Delta facility in Decatur could add as many as 1,200 jobs by the year 1999 and an additional 800 after that. However, this anticipated employment increase is a result of previously announced new business opportunities and not a result of today's announcement.
Net employment impact: No significant change as a result of this announcement.
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Arizona
Establish an Assembly, Integration & Test center at Mesa for the AH-64 Apache Longbow helicopter. Establish Strategic Manufacturing Center at Mesa to produce electrical assemblies for the entire Boeing company. Transfer tooling, machining and composites manufacturing to Strategic Manufacturing Centers.
Net employment impact: Reduction of approximately 300 jobs by year 2000.
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Arkansas
As previously announced, phase out MD-80 and MD-90 component manufacturing at Melbourne. Company is studying whether to transfer additional commercial airplane work to Melbourne and the long-term viability of the site is under study.
Net employment impact: Not determined at this time.
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California
Establish an Assembly, Integration & Test center in Long Beach focused on assembly of the 717 jetliner. While the airplane will continue to be assembled in Long Beach, program management responsibilities will be transferred to the Seattle area after the 717 earns FAA certification. Phase out production of the MD-80 and MD-90 jetliners as previously announced. The MD-11 jetliner production remains in Long Beach. However, the future of the MD-11 jetliner program depends on the success of current marketing efforts, and the company expects to have a clearer picture of the program's future later this year.
Establish Program Management Centers for the C-17 in Long Beach; rocket engines, space power systems and lasers in Canoga Park/Desoto; satellites in Seal Beach; Reusable Space Systems at Downey; expendable launch vehicles and integrated defense systems in Huntington Beach; ICBMs, information management, missile defense and navigation, sensors and electronics in Anaheim. Establish Assembly, Integration & Test centers for International Space Station support at Huntington Beach and Canoga Park, and for Sea Launch at Long Beach. Relocate 1,000 Aircraft & Missile Systems employees from Seal Beach to Long Beach. Transfer 1,100 Reusable Space Systems support and satellites personnel to Seal Beach from Downey, and close selected facilities in Downey. Close electronic manufacturing facility in Monrovia, transferring avionics activities to El Paso, Texas, and surveillance and targeting activities to another Southern California facility. Close Site 9 modification center at Palmdale while establishing Assembly, Integration & Test center at Palmdale Site 1 for Space Shuttle modification, Joint Strike Fighter concept demonstration vehicle, prototype vehicle assembly and test, and X-vehicles. Transfer selected tooling, machining and composites to Strategic Manufacturing Centers. Terminate leases and move into company-owned facilities, and close several labs.
Net employment impact: Reduction of approximately 6,200 jobs by the year 2000.
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Colorado
Establish Assembly, Integration & Test center for Delta launch vehicles.
Net employment impact: No significant change.
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Florida
Establish Assembly, Integration & Test center for International Space Station support at Kennedy Space Center. Transfer Cocoa Beach space-related business Titusville.
Net employment impact: No significant change.
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Georgia
Continue Hellfire missiles, seeker/sensors and other work at Duluth. Continue C-17 sub-assembly at Macon.
Net employment impact: No significant change.
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Illinois
Establish Strategic Manufacturing Center for precision gear fabrication and assembly. Transfer gear assembly work from Philadelphia and Puget Sound area to Chicago.
Net employment impact: Increase of approximately 50 jobs by year 2000.
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Kansas
Continue current commercial and military airplane work. Strategic Manufacturing Center in Wichita exists for production of commercial airplane nose sections, 737 fuselages, commercial engine struts and nacelles.
Net employment impact: No significant change.
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Mississippi
Establish Assembly, Integration & Test center for RS-68 rocket engines. As previously announced, approximately 100 jobs will be supported by this center.
Net employment impact: No significant change as a result of this announcement.
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Missouri
Continue assembly of F/A-18, F-15, T-45 and AV-8B tactical aircraft. Continue assembly of various missile systems. Establish Program Management Centers for small military aircraft in St. Louis and for tactical missiles in St. Charles. Establish Strategic Manufacturing Centers for medium complex composites; large complex machining; strategic tooling; and large sheet forming, superplastic forming/diffusion bonding in St. Louis. Eliminate in non-strategic tooling, sheet metal and composites.
Net employment impact: Reduction of approximately 300 jobs by the year 2000.
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Oklahoma
Continue manufacturing commercial, defense and space components in Tulsa. A Strategic Manufacturing Center exists in Tulsa for commercial airplane leading edges, slats, flaps, floor beams, and 747 center body sections. Tulsa facility transferred to BCAG, as previously announced. C-17 modification work transfers from Tulsa to San Antonio, Texas. Continue B-1 and other aircraft logistics support in Oklahoma City.
Net employment impact: Reduction of approximately 200 jobs by the year 2000.
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Pennsylvania
Establish a Program Management Center in Philadelphia for all military helicopters. Continue production of CH-47 Chinook, V-22 Osprey and RAH-66 Comanche, and BB609 subcontractor work. Transfer selected composites, tooling and machining to Strategic Manufacturing Centers. Transfer gear assembly work to Chicago. Transfer commercial airplane work from Philadelphia to BCAG.
Net employment impact: Reduction of approximately 900 jobs by the year 2000.
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Tennessee
Continue producing commercial airplane components. Oak Ridge facility transferred to BCAG and becomes a Strategic Manufacturing Center. Military work transferred to other Strategic Manufacturing Centers.
Net employment impact: Reduction of approximately 50 jobs by year 2000.
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Texas
Corinth facility becomes part of BCAG and becomes a Strategic Manufacturing Center for electrical products for the entire company. Establish Strategic Manufacturing Centers at El Paso and Irving to produce electronics assemblies for the entire company. Aircraft modification work for C-17 transferred from Oklahoma to the newly established Program Management Center for Aircraft Modification & Maintenance at San Antonio. As previously announced, this facility will support approximately 1,600 jobs. Establish Program Management Center for the International Space Station in Houston.
Net employment impact: Increase of approximately 500 jobs by year 2000 as a result of this announcement.
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Utah
As previously announced, phase out production of MD-80 and MD-90 fuselage sections. Transfer of additional commercial airplane work to Salt Lake City facility, which will become a BCAG Strategic Manufacturing Center.
Net employment impact: No significant change.
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Washington
Continue final assembly of 737, 747, 757, 767 and 777 jetliners and the 767 AWACS. Program Management Centers for 747/767 and 777 exist in Everett, and for 737/757 in Renton. Following certification of the 717 jetliner, transfer program management to Puget Sound while final assembly will remain in California. Strategic Manufacturing Centers exist for commercial composites at Frederickson; commercial machining, sheet metal and sub-assemblies in Auburn; and commercial floor panels and ducts in Spokane. Close selected manufacturing buildings at Seattle's Plant II.
Establish ISDS Program Management Centers for surveillance, reconnaissance and mission systems installation and checkout at the Developmental Center in Seattle; and Sea Launch and Communications, both in Seattle. Establish Assembly, Integration & Test center for F-22 and continue Joint Strike Fighter define and development program in Seattle. Establish ISDS Strategic Manufacturing Center in Seattle for large complex composites and medium complex machining. Transfer ISDS tooling, medium composites and large machining to new Strategic Manufacturing Centers. Close Tulalip test site and several labs.
Net employment impact: No significant change.
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INTERNATIONAL
Ontario, Canada
Continue current work at Arnprior. Continue C-17 and Delta III component production in Toronto. Discontinue MD-80 and MD-90 wing production in Toronto as previously announced. The future of MD-11 wing production will depend on the success of current marketing efforts and the company expects to have a clearer picture of the program's future later this year.
Net employment impact: Reduction of approximately 800 jobs by the year 2000.
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Australia
Activities currently being relocated from North Ryde near Sydney to Brisbane.
Net employment impact: No significant change.
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