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| Pilot's view of air-to-air refueling with a 'boomer' |
Francisco Javier Cruz Hernández wrote:
Boeing's outsourcing of production of the KC-767: is this the claimed Boeing’s “made in America"?
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| Boeing KC-767 |
There is a classic urban legend that tells that "buying Boeing" means protecting American jobs. Boeing has outsourced a lot of the B767 airframe. Whether you review part by part, you can conclude that most of the B767 is coming from overseas. Let's go to the specific data: the fuselage, tail, wings, doors, landing gear and other major components for Boeing's KC-767 are built subcontracted in Japan and Italy. In fact, the tendency is Boeing is shifting more and more workpackages related to B767 to Italy and Japan.
The motives for Boeing’s outsourcing to Japan and Italy are to access these markets, to spread risk, to gain access to capital, and lower US spending on research and development.
This has clear implications for US trade and employment, in that Japanese and Italian subcontracting boosts foreign imports and reduces the need for domestic production workers and US suppliers.
Boeing has opted for a systems integration mode of production. Under this system, key components and sub-assemblies are designed and manufactured by external suppliers. Boeing has especially favored Japanese companies for major subcontracts. The Boeing B767 was the first US aircraft program that entailed substantial outsourcing in aircraft manufacturing since 1970.
Japan aerospace industry (Mitsubishi, Fuji and Kawasaki) builds a high percentage of the Boeing 767. And this outsourcing is growing at a high rate. Boeing is going to contract 35 percent of the B787-airframe structures to Japan.
Therefore, if you compare the KC-767 vs. KC-45, you can realize that Boeing KC-767 is comprised of more foreign made components than the EADS North America KC-45 Tanker. While Boeing is dis-investing in America aviation industry, EADS will invest in the development of the aviation industry in America. EADS North America has a real commitment to American industry and workers.
The motives for Boeing’s outsourcing to Japan and Italy are to access these markets, to spread risk, to gain access to capital, and lower US spending on research and development.
This has clear implications for US trade and employment, in that Japanese and Italian subcontracting boosts foreign imports and reduces the need for domestic production workers and US suppliers.
Boeing has opted for a systems integration mode of production. Under this system, key components and sub-assemblies are designed and manufactured by external suppliers. Boeing has especially favored Japanese companies for major subcontracts. The Boeing B767 was the first US aircraft program that entailed substantial outsourcing in aircraft manufacturing since 1970.
Japan aerospace industry (Mitsubishi, Fuji and Kawasaki) builds a high percentage of the Boeing 767. And this outsourcing is growing at a high rate. Boeing is going to contract 35 percent of the B787-airframe structures to Japan.
Therefore, if you compare the KC-767 vs. KC-45, you can realize that Boeing KC-767 is comprised of more foreign made components than the EADS North America KC-45 Tanker. While Boeing is dis-investing in America aviation industry, EADS will invest in the development of the aviation industry in America. EADS North America has a real commitment to American industry and workers.
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| Airbus/EADS KC-45 |
Boeing has come to rely more and more on Japanese and Italian subcontractors. Boeing is transferring large quantities of previously American aerospace jobs to Japanese and Italian aerospace consortiums. Adding salt to the American economy’s wounds because that much of the B767 was developed with help from U.S. taxpayers, spite of that fact, the most of the Boeing 767 and KC-767 are built in Japan and Italy rather than in the United States.
And of course, Frank's Take on This Whole Boondoggle...!
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| Pilot's view of air-to-air refueling using a drogue trailed behind each wing |
I was working out of southern Alabama when the tanker project was 'awarded' to them - the Mobile area was ecstatic with, what would have been the creation of more than 300 high-paying jobs from EADS, not to mention all of the residual business that would have resulted, with an overall impact in excess of 1000 new positions for the region. As a former Boeing ME, and not much of an Airbus fan, I was partial to them winning the contract. However my position was changed once I and my friends (also former Boeing employees) reviewed the comparison of the specs for these aircraft - the 330 was easily the best platform for this mission. Still, I hoped that they would split the award, with a 50/50 purchase; it worked fine having both KC-10's and KC-135's in the fleet, so it seemed like a good 'Solomon-esque' decision... lol
Seeing what the Mobile area was going through during that time, it was obvious that they needed this to change their economic situation. Although the rest of the country was experiencing a boom, Mobile was desperately trying to get its economy off the ground. My friends there tell me that now it's much, much worse.
Not only Mobile would have gained, but South Carolina was also poised to see a large influx of work from this contract, although I was not keeping-up with that part of the proposed distribution, although the official projections from EADS were at 1500 direct hires at last count. Needless to say, the overall impact to that part of the country would have been enormous and could have stemmed a great deal of the recession's effect to those two regions.
Boeing's projections were merely to use existing manufacturing lines (we now know they were mostly in Japan and Italy) and integrate the program into the 767 production - no measurable growth in US positions.
My position on the program became cemented in opposition to my previous employer, the people of Mobile deserved this and the 330 was the right choice for a good many reasons.
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| Boeing workers 'protesting' |
It All Gets Nasty...!
I remember when Congress got involved, they cited the fact that it was "sending American jobs overseas" and that had to be stopped.
A parade of US Congressmen ranted and raved about the 'flawed awarding process' on the talk shows and television crews filmed staged protest rallies of US aerospace workers - btw, who were paid by Boeing to do so during their normal working hours. Some cheap publicity orchestrated by Boeing to create a backlash to the Pentagon's decision.
... and it worked - the White House stepped-in and postponed the award citing the need to 'review' the process.
To read Mr. Hernández's account of Boeing's current contract distribution for the 767, it sickens me to my core, although it doesn't surprise me either.
While at Boeing, I watched our management take entire divisions of what was once a massive McDonnell Douglas facility's machining equipment and sell it off in large crates directly to China, simultaneously laying-off an army of 20+ year machinists with the intent to "contract that work out" in the future. Meanwhile those highly-skilled men hit the bricks looking for work and management all received bonuses for 'improving shareholder value'.
I also watched them send large sections of our composite production overseas, and along with it, the technological capability. The company it was sent to is now an industry leader and a direct competitor to Boeing, which was 'unthinkable' at the time but a predictable result for all all of us who were not part of that decision process.
I also watched them send large sections of our composite production overseas, and along with it, the technological capability. The company it was sent to is now an industry leader and a direct competitor to Boeing, which was 'unthinkable' at the time but a predictable result for all all of us who were not part of that decision process.
While I was working out of Florida on another Boeing contract, the company was caught actually bribing a Pentagon official, Darleen Druyen with a juicy position offered to her in exchange for a favorable decision in contract awarding. Mike Sears, the Boeing CFO that hired Druyun, was sentenced to four months for aiding and abetting an illegal employment negotiation. She served 9-month in Federal prison. The s**t really hit the fan after that one, I remember!
Still Serving With Distinction
And meanwhile, the current fleet of USAF tankers, continue to fly countless sorties, participating in operations all over the globe, serving a vital role for our nation's military. However, with all of these aircraft having been built more than 40 years ago, everyone knows that the clock is running-out very quickly for them. The decision to award this contract must be made very soon, as delivery will require time to ramp-up. While big business plays games with politics, the military suffers the consequences.
Unfortunately, at the confluence of short-sighted businesses, large contracts and government, you will often find deep corruption, bad decisions and terrible lies to cover them up. This whole episode serves as a classic example.
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