2nd Boeing 787 production line in South Carolina?
by
spreadsheet
10/29/2009, 6:18 PM #
This move may be of some pretty dramatic import, and I suppose I could raise at least a coupla dozen questions. Here are a few.
1. We're going to be finding out whether or not $14hr people can be as productive as $28hr people. Considering our "flat world", do we Americans really hope that Boeing can pull this off? For if even the manufacturing of the world's highest-tech jetliner can be performed as well by half-priced labor, where's our bottom? What's our American upside? What's to prevent Boeing from having $1hr Chinese labor have a go at this?
2. IF a non-unionized red state can perform this work more efficiently than a unionized blue state, how do we account for the federal tax-flow disparity between these two states? How come the blue one is a net contributor and the red one a net taker?
3. How will the market respond, when they're offered products from these two remarkably different sources? For the same price, you can choose a 787 manufactured in the traditional home of aeronautics, or one built in a cheap labor red state?
And as an aside, rather than a question; This looks to be a risky move on Boeing's part. On the one hand, they may be banking on some measure of "competition" between these two assembly sites. And no doubt, they'll bank on using the cheap laborers to leverage the union laborers. But...one thing they can't control - try as they might - is the inevitable "spirit of competition" that will drive the one site to badmouth the other site's product. And...that won't serve Boeing well in the marketplace.