---

 [ ARCHIVE ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=16)

#  Jobs Watch: New Boeing Line in California? We Can Do It!

November 18 2013

Written by Loren Kaye.

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

***![](https://www.citywatchla.com/images/stories/Nov-2013/cw11093g.png)BUSINESS WATCH***-It may be a longshot – but it’s worth the shot.

The venerable Boeing aircraft assembly plant in Long Beach apparently [is in the running](http://www.latimes.com/business/la-fi-boeing-long-beach-20131115,0,2497272.story#axzz2kl8HVk8q) to build the new generation 777X jetliner. Just the prospect of this development is astonishing, given that the plant had recently rolled off the line the final C-17 built for the US Air Force. The [company had said](http://articles.latimes.com/2013/sep/18/business/la-fi-boeing-long-beach-20130919) the assembly line would be shuttered for good in 2015.

That could all change with the [recent announcement](http://www.latimes.com/business/la-fi-boeing-long-beach-20131115,0,2497272.story#axzz2kl8HVk8q) that the Machinists Union in Washington had rejected a tentative labor agreement that would have brought the work to the Seattle area.

Other states reported in contention include Alabama, South Carolina, and Utah.

California faces daunting obstacles to land a major new manufacturing project, one that the machinists union had estimated would bring 10,000 direct and 10,000 indirect industry jobs to the Puget Sound.

California holds a major advantage with our highly skilled and experienced workforce, especially our deep bench of engineers. Long Beach is also centrally located in a web of transportation infrastructure, including the largest port complex in the country.

On the other hand, the cost of doing business in California is notoriously high, contributing to a steady exodus of manufacturing jobs, even as national manufacturing employment has recovered. These costs affect every part of business operations: energy, employment benefits and mandates, and environmental regulation including air emissions and waste and water disposal.

California should build on some tentative progress it has made in the past year to improve the investment climate:

● The Legislature enacted an [exemption](http://www.business.ca.gov/Portals/0/AdditionalResources/Reports/GEDIv2.2013.pdf) from state sales and use taxes for a company’s investment in manufacturing equipment. This would be worth about $8.4 million annually to Boeing – small compared with the hundreds of millions in new investments required at the plant, but not insignificant.

● The Governor also achieved a new “[California Competes](http://www.business.ca.gov/Portals/0/AdditionalResources/Reports/California%20Competes.FAQ.3.0.pdf)” tax credit, which provides an income tax credit for new economic development in the state. While the credit supposedly took effect last summer, the Governor’s economic development office has not yet released regulations that would describe the criteria and process to qualify for the credit. Depending on how healthy revenues grow over the next five years, this credit could theoretically be worth up to $150 million for a single company. Now that’s real money. The GO-Biz should roll out the rules for this tax credit as soon as possible.

The availability of these tax credits should not eclipse other efforts the state should take to reduce costs of doing business – for Boeing and for thousands of other businesses, big and small. Key cost drivers that should be addressed include:

● Workers’ compensation. Even after reforms enacted over the past decade, California still has the third most expensive system in the country. Continuous reform and cost control of workers’ comp should be a top priority of policy makers.

● CEQA. New investment inevitably brings the threat of litigation when it triggers the California Environmental Quality Act. Retooling a plant should not entail a years-long litigation free-for-all, where the process is used to leverage issues that have no bearing on the environment.

● Energy. Do no more harm. New rules governing greenhouse gas emissions, renewable generation mandates, water quality requirements, among others, have contributed to making our industrial energy costs among the highest in the nation. We are pricing ourselves out of the market for highly skilled industrial jobs.

California – and the very plant in Long Beach – was a birthplace of the aerospace industry. With top-level leadership and a bipartisan commitment to stemming the costs of doing business, we have within reach a remarkable achievement.

***(Loren Kaye is President of the California Foundation for Commerce and Education. This column was posted first at [FoxandHoundsDaily.com](http://FoxandHoundsDaily.com))***

***-cw***

**CityWatch**

**Vol 11 Issue 93**

**Pub: Nov 19, 2013**

 [ ![save up to 4000 on used evs](https://www.citywatchla.com/images/LADWP/dwp%20ev%20ad2.png) ](https://www.citywatchla.com/component/banners/click/107 "LA DWP | Save $4K, Green | Priority Ad")

 [ ![Donna Tryfman](https://www.citywatchla.com/images/ADS%20FOR%202026/Donna-Tryfman-Ad-Final-Complete-Border-White-Margin.png) ](https://www.citywatchla.com/component/banners/click/98 "Donna Tryfman - HS1-1")

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 [ ![David DeJute Campaign](https://www.citywatchla.com/images/ADS%20FOR%202026/DejuteAd.png) ](https://www.citywatchla.com/component/banners/click/111 "David DeJute Campaign")

 [ ![Pay Water Bill Help](https://www.citywatchla.com/images/LADWP/dwp%20-%20cares-ad.jpg) ](https://www.citywatchla.com/component/banners/click/97 "Home - LA DWP #2 (Pay Water Bill Help)")

 [ ![Anna Reitano Vertical R. Col](https://www.citywatchla.com/images/ADS%20FOR%202026/reitano%20vertical%20rework.png) ](https://www.citywatchla.com/component/banners/click/112 "Anna Reitano Vertical R. Col")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Last Name

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/8c/074h-8ccaaf79.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33349:l-a-county-faces-a-government-shake-up&catid=312)

### [L.A. County Faces a Government Shake-Up](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33349:l-a-county-faces-a-government-shake-up&catid=312)

WESTSIDE - Currently larger than 40 states in terms of population with roughly 10 million residents, Los Angeles County…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/4d/073e-4dc54bff.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33336:may-day-international-workers-day-a-major-us-holiday-ignored-by-the-media&catid=398)

### [May Day/International Workers Day, a Major US Holiday Ignored By The Media](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33336:may-day-international-workers-day-a-major-us-holiday-ignored-by-the-media&catid=398)

PLANNING WATCH - Monday, September 7, 2026, was Labor Day, a holiday only celebrated in the United States and Canada as…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/17/074g-17fdff1c.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33346:before-we-ask-god-to-judge-us-the-jewish-people-must-judge-ourselves&catid=375)

### [Before We Ask God to Judge Us, the Jewish People Must Judge Ourselves](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33346:before-we-ask-god-to-judge-us-the-jewish-people-must-judge-ourselves&catid=375)

Yom Kippur demands more than personal repentance. At a defining moment for Jews everywhere, it asks whether we have tru…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/12/073d-1253ced3.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33338:quid-pro-no&catid=378)

### [QUID PRO NO](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33338:quid-pro-no&catid=378)

MY VIEW - Quid pro quo: Latin for “this for that.” English for “bribe.” In Assemblymember Schiavo-speak: quid pro no—“N…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/09/073i-0998df2d.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33330:cd3-doesnt-need-another-promise-it-needs-a-councilmember-who-can-deliver&catid=401)

### [CD3 Doesn’t Need Another Promise It Needs a Councilmember Who Can Deliver](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33330:cd3-doesnt-need-another-promise-it-needs-a-councilmember-who-can-deliver&catid=401)

THE BOTTOM LINE - Los Angeles voters have heard the promises before: safer streets, cleaner neighborhoods, more housing…

---

##  [ ARCHIVE ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=16)

 [ ![](https://www.citywatchla.com/images/stories/Apr-2018/034e.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)### [Early Intervention and Jobs are Key to Stemming Chronic Homelessness in Los Angeles](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)

### [Tucker Carlson and Gay Rightwinger Blame California Wildfires On Hiring LGBTQ People](https://www.citywatchla.com/index.php?option=com_content&view=article&id=18755:tucker-carlson-and-gay-rightwinger-blame-california-wildfires-on-hiring-lgbtq-people&catid=16)

### [Anti-LGBTQ Veep Just Can’t Stop Talking about Mayor Pete](https://www.citywatchla.com/index.php?option=com_content&view=article&id=17690:anti-lgbtq-veep-just-can-t-stop-talking-about-mayor-pete&catid=16)

 [ ![](https://www.citywatchla.com/images/stories/Apr-2018/033j.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)### [NEWS PULSE: ‘Corrupt System’ Reason for Not Voting in 2018 … Majority Wants More Than Two Parties](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)

 [ ![](https://www.citywatchla.com/images/stories/Jan-2016/1404d.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)### [Dead Dog Set on Fire … Sparks Fears for Strays in Los Angeles](https://www.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>