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How Boeing's supersized 747 factory almost ended up in California

Sep 25, 2018

How Boeing's supersized 747 factory almost ended up in California

In the early 1960s, Boeing faced a critical decision regarding the location of its new 747 assembly plant. While the company considered various sites, California emerged as a strong contender due to its favorable climate and proximity to the aerospace industry. However, the costs associated with land acquisition and labor in California raised concerns. Ultimately, Boeing chose Everett, Washington, for its immense space and lower operational expenses, leading to the establishment of a facility that would become iconic in aviation history. This decision not only shaped Boeing's future but also significantly impacted the local economy in Washington.

The story of Boeing's iconic 747 factory is a fascinating journey through the realms of aviation history and industrial strategy. The decision-making process surrounding the location of this monumental factory nearly led to its establishment in California, a state recognized for its technological advancements and vibrant workforce. However, various factors ultimately influenced the final decision to build the factory in Washington State, where it still operates today.

The Birth of the Boeing 747

In the late 1960s, Boeing was facing increasing competition in the aerospace industry. The demand for long-range commercial air travel was on the rise, and the company recognized the need to develop a "supersized aircraft" that could cater to this growing market. This vision culminated in the launch of the Boeing 747, which would revolutionize air travel.

Before the factory was built, Boeing considered several locations, including California, for its production facility. The allure of California's booming economy and its access to a skilled labor force made it a strong contender.

Factors Influencing the Location Decision

Several critical factors influenced Boeing's decision to ultimately locate the 747 factory in Washington rather than California:

  • Labor Availability: Washington State offered a vast pool of skilled labor, particularly in the aerospace sector. The presence of existing companies and a history of aircraft manufacturing provided Boeing with a ready workforce.
  • Incentives: State and local governments in Washington provided attractive incentives for Boeing to establish its factory there, including tax breaks and infrastructure support.
  • Land Availability: The geography of Washington State allowed for the construction of a large facility. The expansive land near Seattle provided ample space for the factory and future expansions.
  • Proximity to Suppliers: Building the factory in Washington allowed Boeing to be close to its critical suppliers, streamlining the production process and reducing transportation costs.

California's Attempt to Lure Boeing

Despite the advantages of Washington, California was not without its merits. The state offered a dynamic environment rich in technology, innovation, and a robust economy. As the competition for Boeing intensified, California launched aggressive campaigns to attract the aerospace giant.

California's advantages included:

  • Innovation Hub: The state is home to a plethora of tech companies and research institutions, fostering an innovative spirit that could benefit Boeing's operations.
  • Infrastructure: California boasted well-developed transportation networks, facilitating the movement of goods and personnel.

However, despite these strengths, Boeing's leadership ultimately decided that the benefits of locating in Washington State outweighed the advantages offered by California.

The Impact of the Decision

The establishment of the Boeing 747 factory in Washington had a profound impact on the local economy and the aviation industry. The factory became a cornerstone of Boeing's operations and was instrumental in producing the 747, the first wide-body commercial airliner.

This decision led to the creation of thousands of jobs in the region and stimulated economic growth. The factory not only provided direct employment but also generated a ripple effect throughout the local economy, benefiting suppliers and service industries.

Chart: The Comparison of Key Factors

Factor Washington State California
Labor Availability High concentration of skilled labor in aerospace Available but not as specialized
Incentives Tax breaks and infrastructure support Limited incentives offered
Land Availability Ample space for large factory Space constraints in major cities
Proximity to Suppliers Close to critical suppliers Moderate distance from some suppliers
Innovation Environment Established aerospace industry Strong tech and innovation hub

Lessons Learned from Boeing's Decision

Boeing's experience in choosing the location for its 747 factory offers several lessons for businesses today:

  • Evaluate All Factors: Companies must assess a variety of factors, including labor, incentives, and proximity to suppliers, before making a location decision.
  • Consider Long-Term Impacts: The long-term implications of a location choice can shape a company's future, influencing everything from operational efficiency to employee satisfaction.
  • Stay Open to Options: While a location may seem ideal, it's essential to remain open to other possibilities that may offer unforeseen advantages.

Boeing's decision to establish its 747 factory in Washington has not only shaped the company’s trajectory but has also left a lasting legacy on the aviation industry and the local economy. The story exemplifies how critical location decisions can be and the complex interplay of factors that influence them.

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