Contract offers growth for Boeing (DOK)

USAF Picks Boeing Over Pemco For KC-135 PDM
Aviation Now | 9/11/2007

By Ja’Rena Lunsford
Business Writer
After two years of waiting, the Boeing Co. was awarded a $1.1 billion contract from the U.S. Air Force that will involve work in Oklahoma City.

The 10-year contract will continue Boeing's maintenance work on the KC-135 aircraft, strengthening the company's presence in Oklahoma.

"This means we will be able to continue to grow our company in Oklahoma City,” said Ben T. Robinson, KC-135 program director.

Boeing began working on securing the contract two years ago and expected to learn the results a year and a half ago. Robinson said although word on the contract did not come as soon as Boeing expected, executives are pleased the company was chosen. "We deeply appreciate the confidence the U.S. Air Force has shown in the Boeing Co.,” he said.

Boeing is no stranger to the KC-135. Along with building the aerial refueling aircraft more than 50 years ago, Boeing has been under contract to provide depot maintenance on the Air Force's fleet of more than 200 KC-135s since 1998.

"Always on time, the Boeing KC-135 (programmed depot maintenance) program has a solid track record with proven results,” Pat Finneran said in a statement. Finneran is president of Boeing Support Systems.

Boeing's program depot maintenance program management office is in Oklahoma City, near Tinker Air Force Base. The company has 80 employees in Oklahoma, 75 in Missouri and 300 in San Antonio, Texas.

Robinson said although the contract does not necessarily mean Boeing will add employees in Oklahoma City, the deal does result in job security for current employees.

"It certainly means we won't be losing any people,” Robinson said.

The contract also is a sign that the Air Force won't be losing the aging KC-135 anytime soon, Robinson said. Boeing plans on modifying the plane. Although the KC-X is expected to eventually phase out the KC-135, Robinson said the latter still has many years of flight left.

"There's no reason it can't be around another 30 to 35 years,” he said. Robinson said he expects Boeing to be along side the KC-135 during those years as well.

"Boeing built this airplane and we have a tremendous amount of pride in it,” he said. "We will never step away from it. We will be there until the day they retire this aircraft.”

OKLAHOMA CITY -- The Boeing Company says it is relocating two programs from Long Beach, Calif., to Oklahoma City, a move expected to bring 550 engineering jobs to the state.

Boeing announced in a news release Monday it is moving its C-130 Avionics Modernization program to Oklahoma City beginning in the first quarter of 2011. The move of the B-1 program is expected toward the end of 2012.

Both programs are part of the Maintenance, Modifications & Upgrades division of the company's St. Louis-based Boeing Defense, Space & Security.

MM&U Vice President and General Manager Mark Bass says the relocation will help Boeing "provide a more competitive cost structure for customers."

Boeing says some California employees will be relocated, while other positions will be hired locally.

Doesn't look like call center jobs. :D

Great news.

In my opinion, if Oklahoma focused on relocating businesses here from California alone it would have great success quickly. The state is in trouble and people are tired of paying the high price to be there. I am helping move 2 companies here from the LA area and when we compared, it wasn't even close. A slam dunk. Only question was whether to move it to OKC, Dallas or Denver. OKC won out. Cali is fertile ground.

That would be outstanding.

This is great news! Its definitely the largest corporate relocation to OKC since I've been here. Anyone care to guess when there was one larger?

This is great news! Its definitely the largest corporate relocation to OKC since I've been here. Anyone care to guess when there was one larger?

When the Texas State Legislature tried to hide in Ardmore?

When the Texas State Legislature tried to hide in Ardmore?

Heh.


Amazing to have these types of ENGINEERING jobs coming into the state. What's the opposite of brain drain? Brain regain?

Fantastic news!

OKC is way cheaper than Denver and less expensive than most parts of Dallas.

As the city's reputation continues to grow on a national stage, I think we'll see more of this, similar to what happened to Charlotte, Austin, Vegas, etc.


If you were a company looking for a nice place to operate a business where you could be efficient and still provide a great lifestyle to your employees, it would be hard to not take a hard look at Oklahoma City.

Bring on the 6 figure geeks!

Awesome news for sure

both of these programs are tied/related to the Oklahoma City Air Logistics Center at Tinker. Cheer those folks on!!

I'll drink to that!

Fantastic news!

OKC is way cheaper than Denver and less expensive than most parts of Dallas.

As the city's reputation continues to grow on a national stage, I think we'll see more of this, similar to what happened to Charlotte, Austin, Vegas, etc.


If you were a company looking for a nice place to operate a business where you could be efficient and still provide a great lifestyle to your employees, it would be hard to not take a hard look at Oklahoma City.

Yes this. Except hopefully not the part about being like Charlotte (can you say banking bust?) or Vegas (needs no explanation.)

Great news nonetheless.

both of these programs are tied/related to the Oklahoma City Air Logistics Center at Tinker. Cheer those folks on!!

So will the facility be at Tinker or WRWA?

This is great news! Its definitely the largest corporate relocation to OKC since I've been here. Anyone care to guess when there was one larger?Clarification, this is "not" a corporate relocation of their HQ just jobs at an airplane factory. This is great news for OKC. It would be great if a major company moves into Devon Energy old tower when they relocate to the new one? Would be great if they were high paying white collar jobs!

Bring on the 6 figure geeks!

Awesome news for sure

Those kind of remarks make me proud to be a geek!

I think it's hilarious that when people here in Houston discover I am from Oklahoma City, they are left dumbfounded that there are software geeks that come from Oklahoma. Although lately they've changed their tune, thanks to a combination of press from OKC and my ambassadorship as a proud OKC native. I've schooled them several times.

When the Texas State Legislature tried to hide in Ardmore?
That was the Texas Democrats in the state legislature, the Democrats in the Senate went to Santa Fe, New Mexico. All that was in the redistricting battle in the 2003 session.

Those kind of remarks make me proud to be a geek!

I think it's hilarious that when people here in Houston discover I am from Oklahoma City, they are left dumbfounded that there are software geeks that come from Oklahoma. Although lately they've changed their tune, thanks to a combination of press from OKC and my ambassadorship as a proud OKC native. I've schooled them several times.

Keep up the good work!

Clarification, this is "not" a corporate relocation of their HQ just jobs at an airplane factory. This is great news for OKC. It would be great if a major company moves into Devon Energy old tower when they relocate to the new one? Would be great if they were high paying white collar jobs!

Gee thanks, us wrench benders and hangar rats are worthless to the economy. Keep in mind these are $30-100K+ a year jobs.... Not bad at all.

Are they moving into the old Devon mini-tower?

mini-tower?

it is a 19-storey tower that is at least 300 feet. ...

Yeah, that is mini. Chase is the mega. The new Devon tower is the monster.

No office jobs are moving in. There will be SOME office jobs, but not enough to be significant. I'm sure all jobs will be located at Tinker.

Pete, you are spot on. The cost of living and the cost of doing business in the Denver metro area is ridiculously high compared to Oklahoma City, and it has been that way for years. From what I understand, at least 2 major companies that were headquartered in Denver (Qwest Communications and Frontier Airlines) have moved to other parts of the country in the past 2 years because the state taxed them out. The state has very high taxes on everything, including a $.01 "soda tax" :please: that was recently implemented for any item that has sugar (soda, candy bars, etc.).

IMO, Colorado is setting itself up for disaster and may become another California in 20-30 years...

Great news indeed! Doesn't sound like we had to throw cash at them to get it, either.


When the Texas State Legislature tried to hide in Ardmore?

:LolLolLol

Frontier merged with Republic out of Indy earlier this year. I haven't heard of Qwest relocating.

We are considering whether to move to Denver or stay in Austin again, mainly to get away from the heat/humidity....we are just tired of it.

So are they building new facilities or just cramming into the old ones?

Frontier was bought by Republic, Midwest was bought by Republic. Frontier and Midwest are merging and moving their offices to Indy.

Maintenance did move out of DEN to Milwaukee. The city of Denver did place a tax on aircraft delivered to Denver, though. Since most planes straight from delivery go to a maintenance shop, they usually went to Frontier's Denver Maintenance base.

Now if only these engineers will want to move downtown, possibly take up some empty buildings in The Hill. That would be awesome.

Now if only these engineers will want to move downtown, possibly take up some empty buildings in The Hill. That would be awesome.

Downtown is actually a great location for jobs at Tinker. EASY 10 minute commute.

Clarification, this is just jobs at an airplane factory.

They aren't factory jobs. They are engineers and researchers.

http://i278.photobucket.com/albums/kk92/gandjdunlap/Boeing-OKC.jpg

Boeing 200,000 SF office building near Tinker....

Is that a rendering?

Just south of Tinker's Air Depot gate.

That building has been there for about four years at SE 59th and Air Depot between Tinker and I-240. I have been in it many times.

My experience is that the engineers like to actually be near the planes, including the guys that work on them. That is one thing I love about engineers.

Frontier merged with Republic out of Indy earlier this year. I haven't heard of Qwest relocating.

We are considering whether to move to Denver or stay in Austin again, mainly to get away from the heat/humidity....we are just tired of it.

Qwest moved its HQ from Denver to Monroe, LA after a merger.

And about Denver, I struggle with the same decision each summer. I used to live there and the summers are very nice compared to Oklahoma/Texas.

Yeah there's no reason for them to move downtown. That's too far away compared to being right off the runway where the new facility is. Sorry folks.

But, The old office space in the MWC area that Boeing had is still available...ie 29th and Sooner. Lockheed, Northrup, Pratt and Whitney, etc....they all still have offices in the area. When Boeing built the new facility, they freed up a lot of space in those areas. Plus, there's still an entire pad side open for another building should they chose to build.

Otherwise, there's actually plenty room over by the new Boeing building as well.
http://www.flickr.com/photos/43309757@N05/4856952802/

Also, anyone know how to get a Flickr url for the image and not the page? It's annoying having to use the URL....

Like this?
http://farm5.static.flickr.com/4097/4856952802_8d3bca4116.jpg

Right-click the image on Flickr and choose Copy Image Location (Firefox) or for IE choose Properties and then copy the URL. Come back here and choose the "Insert Image" button on the toolbar above the post and put the URL in there.

Yeah there's no reason for them to move downtown. That's too far away compared to being right off the runway where the new facility is. Sorry folks.

I think the comment was directed at them living downtown, not working downtown.

Yeah there's no reason for them to move downtown. That's too far away compared to being right off the runway where the new facility is. Sorry folks.

But, The old office space in the MWC area that Boeing had is still available...ie 29th and Sooner. Lockheed, Northrup, Pratt and Whitney, etc....they all still have offices in the area. When Boeing built the new facility, they freed up a lot of space in those areas. Plus, there's still an entire pad side open for another building should they chose to build.

Otherwise, there's actually plenty room over by the new Boeing building as well.
http://www.flickr.com/photos/43309757@N05/4856952802/

Also, anyone know how to get a Flickr url for the image and not the page? It's annoying having to use the URL....

Reread the posters comment, it was about them living downtown, not moving the Boeing facility downtown. He said he hoped the engineers would gobble up some of the vacant downtown units for sale.

I don't know if they would move right in to downtown. After them living in California and paying 250,000 for a shack 10 miles from the beach and no yard, I bet they will all move to the suburbs and pay 300,000 for a nice big house with a big yard.

Not necessarily. Some are used to the urban lifestyle and want to keep it. Plenty of Tinker folks living downtown. Also, especially if they continue to develop that rail line from Tinker to Downtown it would make it even more desirable.

paying 250,000 for a shack 10 miles from the beach and no yard

It would be at least $500K for a crappy place in that area.

It would be at least $500K for a crappy place in that area.

Yup.

When a former neighbor of mine retired from a job in California (a loong time ago, before all the financial meltdowns), he sold his house out there and moved here to be close to one of his kids. He told me that his daughter faxed him photos of homes near where she lived in SW OKC, and he thought the fax machine had literally cut off one of the zeroes from the price listings. When she told him, "no, dad, that's how much these houses cost out here," he bought a place based solely on the picture and pocketed an astonishing amount of change from the sale of the California home.

After he'd been here a year or so, he'd tell me how Oklahoma was an "awesome" place to live and how it was one of the "best kept secrets anywhere." He loved the people, the cost of living, everything. We moved to a different neighborhood a few years later, but I visit that area frequently and he's still there, over a decade later...

The point in all that is that someone with appreciable equity in a California home and able to sell it for what might be termed the "going" rates there could become a relatively very wealthy individual in this part of the country...

The point in all that is that someone with appreciable equity in a California home and able to sell it for what might be termed the "going" rates there could become a relatively very wealthy individual in this part of the country...

There is the problem. Unless these people have been paying on their home for 15 years they aren't going anywhere. I have friends in California that would love to move but unless they want to keep making loan payments on a home they no longer live in they can't do it. California is a slow motion train wreck in progress.

Reread the posters comment, it was about them living downtown, not moving the Boeing facility downtown. He said he hoped the engineers would gobble up some of the vacant downtown units for sale.

Well, I can see that. Maybe some will. Most engineers I know of, however, are way too practical to want to spend more for less and if they have families, they tend to be pretty traditional and want a little room and good schools.

Well, I can see that. Maybe some will. Most engineers I know of, however, are way too practical to want to spend more for less and if they have families, they tend to be pretty traditional and want a little room and good schools.

These people were working in Long Beach - 'practical' left the building a long time ago.

I did find this postcard interesting. Look familiar?

http://rocksoft.files.wordpress.com/2009/06/oil_fields_at_signal_hill_long_beach_california_l6 22.jpg

This should be good news to see some of the aircraft industry wanting to come back here. With TAFB acquisition of the old GM plant, I hope we see some more expansion in the future.

So will the facility be at Tinker or WRWA?

Edit: Already answered up there ^

http://blog.thenewstribune.com/business/2010/08/03/boeing-moving-two-programs-to-cheaper-locale/
Found an informative article out of Tacoma, WA. Maybe other corporations will take notice that Oklahoma is a low-cost state.

Qwest moved its HQ from Denver to Monroe, LA after a merger.


No it didn't. Qwest is still headquartered in Denver. (at least that's what Qwest seems to think according to their website.) ;-)

No it didn't. Qwest is still headquartered in Denver. (at least that's what Qwest seems to think according to their website.) ;-)

I think they're in the process of moving to Louisiana right now. They announced the decision in March or April of this year.

There is the problem. Unless these people have been paying on their home for 15 years they aren't going anywhere. I have friends in California that would love to move but unless they want to keep making loan payments on a home they no longer live in they can't do it. California is a slow motion train wreck in progress.
We had quite a few engineers from California come to work for us in OKC, many moved because they could afford to as most were in their 50's and had bought their houses out there in the early 90's. They came to Oklahoma to work until retirement and retire comfortably. Some familial connections to Oklahoma so that made it an easier decision for most.


I think they're in the process of moving to Louisiana right now. They announced the decision in March or April of this year.
I found an article from last week about the issue.

The Denver Post - After several headquarters losses, Colorado labors to boost its corporate clout (http://www.denverpost.com/business/ci_15596506)

I see. Thanks for the clarification and info.

http://blog.thenewstribune.com/business/2010/08/03/boeing-moving-two-programs-to-cheaper-locale/
Found an informative article out of Tacoma, WA. Maybe other corporations will take notice that Oklahoma is a low-cost state.

I see the folks up there are still bitter. From the comments: "Oklahoma is a champion.....in the race to the bottom."

The "race to the bottom" comment is actually accurate in competing to be the lowest-cost place in my opinion...

Seattle v. Oklahoma...come on lol.

Why do we have this Bass Ackwards approach to things?

AFTER Boeing announced on Monday that they ARE relocating about 500 jobs to OKC. Then it was reported the City will be "likely" be giving Boeing incentives.


Boeing likely will receive some kind of economic incentives from the city to move jobs here, Assistant City Manager Cathy O'Connor said.

"We don't know the amount yet," she said.

O'Connor said Boeing could be eligible for job creation grants from the city's strategic investment program, which is bankrolled by economic development funds approved by voters in 2007.

The Oklahoma City Economic Development Trust is expected to authorize the city manager to negotiate with Boeing.

Negotiate? Negotiate what? You offer incentives to someone who is thinking about relocating, or beef up your incentives if you have made it as a finalist. You don't offer incentives AFTER they have already made the announcement they are coming!

Nothing against Boeing and the good, high paying jobs that are coming this way. Don't even have a problem with some sort of "thank you".

Why do we have this Bass Ackwards approach to things?

AFTER Boeing announced on Monday that they ARE relocating about 500 jobs to OKC. Then it was reported the City will be "likely" be giving Boeing incentives.



Negotiate? Negotiate what? You offer incentives to someone who is thinking about relocating, or beef up your incentives if you have made it as a finalist. You don't offer incentives AFTER they have already made the announcement they are coming!

Nothing against Boeing and the good, high paying jobs that are coming this way. Don't even have a problem with some sort of "thank you".

Those a job incentives as opposed to building incentives. Once the city knows the exact amount of payroll Boeing plans to roll out in Oklahoma, then the city can determine the exact amount of incentives.

Job incentives? Not sure what you mean as they have announced the jobs are coming and the number. Now if you are talking about negotiating and offering incentives to bring even more than the announced numbers and/or job categories not included in the announcement, that would be another matter.