Boeing to close Wichita defense plant by end of 2013
By The Associated Press
Wednesday, January 4, 2012
WICHITA, Kan. (AP) — Faced with defense budget reductions, the Boeing Co. announced Wednesday it will close its defense plant in Wichita by the end of 2013.
The closure will cost more than 2,160 workers their jobs and end the firm's presence in a city where it has been a major employer for generations.
The decision was not entirely unexpected. The company said in November it was studying whether to close the Wichita facility, which specializes in modifying commercial aircraft for military or government operations, to address Defense Department budget cuts. The first layoffs are expected to begin in the third quarter of 2012.
The company said it was moving future aircraft maintenance, modification and support to its plant in San Antonio, Texas, and engineering work to Oklahoma City. Work on the Air Force refueling tanker will be performed in Puget Sound, Wash. The company said the 24 Kansas suppliers on that program will continue to provide parts as originally planned.
"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," said Mark Bass, vice president and general manager for the Boeing Defense, Space & Security facility in Wichita.
The study came even as the Pentagon had been working to prevent $500 billion in automatic, across-the-board defense budget cuts over 10 years in the wake of the failure by a bipartisan congressional supercommittee to agree on $1.2 trillion or more in deficit reductions.
Wichita had hoped the number of jobs at the facility would grow after Boeing won a contract worth at least $35 billion to build 179 Air Force refueling tankers. The modification work on the planes had been expected to be done at Boeing's Wichita plant — bringing with it 7,500 direct and indirect jobs with an overall economic impact of nearly $390 million.
Wichita Mayor Carl Brewer said the city, which prides itself as being the air capital of the world, has a long history with Boeing in the community. Brewer noted he worked there for 20 years before the company sold off its commercial operations.
"Many people — generations upon generations — have had an opportunity to be employed there and that could very easily be the end of that ... They are a very important part of us here," Brewer said.
But the mayor said the city would move on and take care of those families and continue working to be the "air capital of the world."
"This is not the first time we have had something of this magnitude. We have had other challenges and we have always managed to work through it and been able to survive," Brewer said.
Boeing has had a facility in Wichita since it bought the Stearman Aircraft Co. in 1929. During World War II, employment at the plant peaked at more than 40,000 as the company churned out four bombers a day. For decades the company remained the city's largest employer.
Then in 2005, Boeing spun off its commercial aircraft operations in Kansas and Oklahoma. At that time, the company still had roughly 15,000 employees in Wichita. After the divestiture, Boeing retained 4,500 workers for its defense work in Wichita but layoffs since have slashed that remaining workforce.
The Wichita facility is facing the end of some programs, such as the international tanker program that supplied refueling tankers to other countries. Over the summer, Boeing announced it would cut 225 jobs at its Wichita defense plant through the end of this year.
Even with the loss of the defense plant, Boeing would continue to have an economic impact in this aircraft manufacturing city. Spirit AeroSystems, which took over Boeing's commercial operations, continues to build parts here for Boeing's commercial airplanes.
"But it would be different to a certain extent because of the fact that, you know, it is kind of like family that you actually have and a member of the family is moving away," Brewer said. "So there is a lot of emotional and economic attachment tied to this."
thrashed (anonymous) says...
Huge loss.
January 4, 2012 at 2:34 p.m. ( permalink | suggest removal )
create (anonymous) says...
War is over. Can't have just one thing. But yes, huge loss nonetheless.
January 4, 2012 at 3 p.m. ( permalink | suggest removal )
spensanity (anonymous) says...
Many of the small towns within an 80 mile radius of Wichita will be hurting also due to this decision. A lot of the Boeing workers travel long distances everyday to work. They are all in my prayers........
January 4, 2012 at 3:24 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Quick someone tell them to put up rocks, they helped us so much!
January 4, 2012 at 3:57 p.m. ( permalink | suggest removal )
booker5m (anonymous) says...
Killing me goodoleboy LOL The great minds have been quiet bout the rocks lately and they dont seem to bragging about them anymore.I still dont see the how those things could have cost so much?
January 4, 2012 at 6:57 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
The Emporia model is hard to argue with, just look at this town in 1990, fast forward twenty years and just bask in the monumental failure our leaders have help usher in. We truly are the blueprint for what NOT to do.
3 years 4 months to go.....
January 4, 2012 at 8:32 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Oh also Wichita should build a monstrosity of a courthouse because they are beacons of hope and good omens.
January 4, 2012 at 8:33 p.m. ( permalink | suggest removal )
booker5m (anonymous) says...
The great minds do not plan ahead at all. I once asked at commish meeting what plans they had if the beef should close. I was told that would never happen they are here for good. Wonder if they would like to restate that remark
January 4, 2012 at 9:04 p.m. ( permalink | suggest removal )
mike_nelson82 (anonymous) says...
I live in Wichita. I've put in over 80 job applications and still haven't gotten a job. With Boeing closing, even more people will be suffering.
Crime is out of control here in Wichita, and it will only get worse. I'm sure the higher-ups at Boeing could care less, since it all comes down to numbers, and not the livelihood of human beings.
January 5, 2012 at 12:17 a.m. ( permalink | suggest removal )
create (anonymous) says...
Good post, mike_nelson. I certainly can feel for you Wichita folks with this new situation.
Although I enjoy the pokes at the rocks whenever I see them -- good one, goodoleboy -- we need to look beyond the local scene too. It's right there in the article, "The study came even as the Pentagon had been working to prevent $500 billion in automatic, across-the-board defense budget cuts over 10 years in the wake of the failure by a bipartisan congressional supercommittee to agree on $1.2 trillion or more in deficit reductions."
Let me raise the larger spectre right here in this link to an msnbc story this morning involving the continuing Sunni versus Shiite killings in Iraq now that we have left that blood-stained country. 4500 American lives lost over what? Thank you, Dick Cheney for convincing Dubya we needed to be there; thank you Dubya for believing the BS and not having the guts to say no; and thank you Obama for actually thinking you could possibly install peace in that nation of prayer rugs and bombs. Peace Prize be damned!
Don't forget to read the discussion section that follows the article:
http://www.msnbc.msn.com/id/45881411/...
January 5, 2012 at 7:09 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
from the cj article;
“We should all learn that throwing money at wealthy corporations to attract or retain jobs doesn’t guarantee loyalty or longevity,” Wagnon said. “We need a new approach to economic development that invests first in our schools, our people, our roads and communities.”
According to the Kansas Legislative Research Department, the state has enacted at least nine measures that supported or benefited Boeing in the past 10 years, including tax incentives, subsidized training programs and investments in the National Institute for Aviation Research.
DuH!
In other words, if you have a community with good services and infastructure along with smart able workers the companies will come. If they don't you still have a good community.
January 5, 2012 at 7:17 a.m. ( permalink | suggest removal )
create (anonymous) says...
Good post, booker. I like your "great minds" reference.
Was anybody here at the huge meeting that took place at the meeting room of the auditorium several years ago over the Somalis being brought here in large numbers? Those "great minds" had not planned ahead there either, and they sure had a lot of nothing to offer that night except wide-eyed looks of disbelief that so many Emporians would show up and ask to be heard.
January 5, 2012 at 7:19 a.m. ( permalink | suggest removal )
create (anonymous) says...
Good find, Steve. Tons of Kansas money thrown at Boeing, all for a few years of employment.
Yes, Steve, I agree, you will still have a good community with good infrastructure and good services, and yes, companies will come, but they still end up asking for tax breaks.
I have been saying for years that we need to beef up our services, medical services in particular. But everyone always puts down that idea and wants industry instead.
January 5, 2012 at 7:29 a.m. ( permalink | suggest removal )