California Closures Keep Coming

Boeing may be forced to shut down its C-17 manufacturing plant in California by 2008. The Pentagon, it seems, faces a budget crunch because of continued operations in Iraq.

Air Force officials "have told us in no uncertain terms that they're really struggling to meet their budget," Boeing C-17 Program Manager David M. Bowman told the Los Angeles Times. "If we don't receive a commitment by the end of the year, our supplier base will start knocking off."

So far, Boeing has completed 145 of the 180 C-17s called for in the original contract. They're built by 6,500 workers at the company's Long Beach facility. Each costs approximately $175 million. The last is scheduled for delivery in 2008. That's when the line would be completely shut down.

Closing down the C-17 manufacturing process would shock the entire aerospace industry in Southern California. Companies like Ducommun, based in Carson, CA, would be staggered by the blow. It makes aluminum skins for the transports -- a process that accounts for about 45-percent of the Ducommun's business.

"I can't run the business with nothing to do," Steve Woodhouse, vice president of operations for Ducommun, told the LA Times. "In all likelihood we'll have a reduction in force."

It's not like the military doesn't need more C-17s. Right now, they deliver about 70-percent of all personnel and material flown into Iraq. A recent study by the Pentagon indicated the military could make good use of another 120 C-17s. But because of budgetary pressures, Boeing says the military may have to slow its orders to a trickle -- accepting just one or two at a time until it has what it needs.

Closing the C-17 facility in Long Beach would be a second huge blow to the aerospace community there. The nearby 717 plant will shut down next year after the final delivery of the aircraft formerly known as the DC-9.

But Bowman said the closing of the C-17 plant would be even more saddening.

"The reality of a line shutdown is not new to Boeing. There is nothing that will go on forever," Bowman said. "But to shut it down, given that everybody acknowledges there is a need [for additional C-17s], would be a shame."

FMI: www.boeing.com