1. The Impact of the Aerospace Industry in Washington State
February 12, 2014

2. WASHINGTON STATE AEROSPACE IMPACTS: Research Questions and Data Collection
Assess the economic impact of each Boeing Commercial production line in Washington State.
Determine any returns accrued to Washington State through investments in aerospace.
To an impact assessment, need four pieces of information: 1) direct jobs per line; 2) output per line; 3) wages; and 4) direct purchases.

3. Washington State Department of Revenue
WASHINGTON STATE AEROSPACE IMPACTS: Research Questions and Data Collection
Washington State Department of Revenue
Boeing Commercial financial statements/reports
Washington State Employment Security Department
SPEEA and IAM
Washington State Input-Output Model
Needed to determine:
Wages per line
Employment per line
Average price (actual) per aircraft
Direct purchases
To an impact assessment, need four pieces of information: 1) direct jobs per line; 2) output per line; 3) wages; and 4) direct purchases.

4. 1 WASHINGTON STATE AEROSPACE DIRECT IMPACTS
2 THE BOEING COMPANY IN WASHINGTON
3 WASHINGTON’S INVESTMENT IN AEROSPACE

5. WASHINGTON STATE AEROSPACE IMPACTS: employment
Washington State Aerospace Industry Employment
, Annual
Employees
Related
In 2012 the aerospace industry provided 132,500 jobs at 1,350 establishments.
Total jobs are up by 15,000 since 2007, showing 12.8% job growth.
Aerospace
Sources: Washington State Employment Security Department; Governor’s Office of Aerospace; Community Attributes Inc.

6. WASHINGTON STATE AEROSPACE IMPACTS: revenues
Washington State Aerospace Industry Revenues
, Annual, in 2012 USD
Billions
Related
Total aerospace and supporting industry revenues grew by $15.9 billion dollars, representing 35% growth between 2010 and 2012.
Aerospace
Sources: Washington State Department of Revenue; U.S. Bureau of Economic Analysis; Community Attributes Inc.

7. WASHINGTON STATE AEROSPACE IMPACTS: wages
Washington State Aerospace and Related Industry Wages
Annual, adjusted to billions 2012 $
Billions
Total aerospace and related industry wages grew by $1.5 billion dollars, showing 15% growth between 2010 and 2012.
Aerospace and related industries paid wages equaled 11% of all wages earned in Washington.
Related
Aerospace
Sources: Washington State Employment Security Department; Governor’s Office of Aerospace; U.S. Bureau of Labor Statistics; Community Attributes Inc.

8. WASHINGTON STATE AEROSPACE IMPACTS: exports
Washington Aerospace Exports
, billions USD, adjusted to 2012 $
Billions
Aerospace industry exports totaled $37.1 billion dollars in 2012, representing 49% of all Washington goods exports.
Sources: Washington State Department of Commerce; U.S. Bureau of Economic Analysis; Community Attributes Inc.

10. 1 WASHINGTON STATE AEROSPACE IMPACTS
3 WASHINGTON’S INVESTMENT IN AEROSPACE
2 THE BOEING COMPANY IN WASHINGTON

11. THE BOEING COMPANY IN WASHINGTON: deliveries
Boeing Commercial Deliveries,
Airplanes
601
Boeing Commercial deliveries totaled 601 airplanes in 2012, a growth of 139 airplanes since 2010.
481
477
185
Domestic
462
441
375
159
129
169
154
140
416
Foreign
322
348
287
293
235
Sources: Boeing Company; Community Attributes Inc.

12. THE BOEING COMPANY IN WASHINGTON: deliveries
Average Price per Aircraft, 2012
159
129
169
154
140
416
322
348
287
293
235
Sources: Boeing Company; Community Attributes Inc.

13. THE BOEING COMPANY IN WASHINGTON: employment
Boeing Employment in Washington
Employees
Boeing provided 83,200 jobs in 2012, a 15% growth in jobs since 2010.
The Boeing Company remains the largest employer in Washington.
Other
Manufacturing
*Estimate by Community Attributes Inc.
**As of August Source: The Boeing Company.
For 2012 and 2013, breakouts by manufacturing and other are estimates.
Sources: Washington State Department of Revenue; The Boeing Company; Community Attributes Inc.

14. THE BOEING COMPANY IN WASHINGTON: employment
Employment Allocated by Aircraft Family, 2012
Number of workers; total estimated Boeing Employment in Washington
Employees
777 production provided 19,700 jobs in 2012, representing 27% of Boeing Commercial employment.
Overhead and Related
We developed these estimates by way of triangulating several sources, including DOR facility-based employment headcounts (from aerospace credits).
Assigned to Program
Source: Industry sources; Community Attributes Inc.

15. THE BOEING COMPANY IN WASHINGTON: wages
Wages by Aircraft Family, 2012
Billions $, including benefits
Billions
737 production provided an estimated $2.7 billion in wages in 2012.
Combined wages from aircraft production totaled $9.5 billion in 2012, including benefits.
Sources: Industry sources; Community Attributes Inc.

16. THE BOEING COMPANY IN WASHINGTON: employment
Direct Impacts by Aircraft Family, 2012
777 production provided 19,800 jobs in 2012, representing 27% of Boeing Commercial employment.
We developed these estimates by way of triangulating several sources, including DOR facility-based employment headcounts (from aerospace credits
Source: Industry sources; Community Attributes Inc.

17. THE BOEING COMPANY IN WASHINGTON: Impacts
Direct Impacts by Aircraft Family, 2012
777 production provided 19,800 jobs in 2012, representing 27% of Boeing Commercial employment.
We developed these estimates by way of triangulating several sources, including DOR facility-based employment headcounts (from aerospace credits
Source: Industry sources; Community Attributes Inc.

18. 1 WASHINGTON STATE AEROSPACE IMPACTS
2 THE BOEING COMPANY IN WASHINGTON
3 WASHINGTON’S INVESTMENT IN AEROSPACE

19. WASHINGTON’S INVESTMENT IN AEROSPACE: tax incentives
Type of Incentive
Eligibility
Rate
Preferential B&O tax rate
Manufacturers & processors for hire
Aerospace product development businesses
Aerospace products
Certificated FAR part 145 repair stations
38-50% reduced rate
B&O tax credit for aerospace product development
Supplies
Cost of FAA certification
Computer & processing expenses
Amount of qualified expenditures x 1.5%
Sales and use tax exemption on computer hardware and peripherals
Hardware
Software
Plotters
Switches
Hubs
Full exemption
B&O tax credit for property taxes/leasehold taxes paid
Manufacturers
Tooling manufacturers
Certified FAR part 145 repair stations
B&O tax credit equal to leasehold taxes

20. 3 WASHINGTON’S INVESTMENT IN AEROSPACE: firm locations

21. Aerospace facilities across state, among those that used credit.

22. WASHINGTON’S INVESTMENT IN AEROSPACE: tax investments
Aerospace Industry Tax Investments by Washington State
Actuals, estimates (2013), $millions, based on fiscal year
Millions
Sales & Use Tax Exemption for Computers Used in Development & Design
B&O Tax Credit for Property Taxes on Land/Buildings
Between fiscal years 2007 and 2013, tax investments in aerospace from the State totaled over $900 million.
B&O Tax Credit for Aerospace Manufacturers for Preproduction Development Expenditures
B&O Tax Credit for Aerospace Product Development
Preferential B&O Rate FAR Certified Repair Station
Preferential B&O Rate for Mfg, Wholesale and Retail of Commercial Aircraft
Source: Washington State Department of Revenue; Community Attributes Inc.

23. WASHINGTON’S INVESTMENT IN AEROSPACE: other investments
Key Non-Tax Investments, 2003 through 2012
Workforce Training
Capital/Land Improvement
Other
Total
PROJECT OLYMPUS
$23,500,000
$340,500,000
$2,285,000
$366,285,000
PROJECT PEGASUS
$9,550,000
N/A
TOTAL
$33,050,000
$375,835,000 
Source: Community Attributes Inc.

24. WASHINGTON’S INVESTMENT IN AEROSPACE: fiscal benefits
State Fiscal Benefits from Boeing Operations,
Adjusted to 2012 $ USD, Millions
Millions
Between 2004 and 2012, Boeing’s commercial activities supported nearly $4.1 billion in State fiscal revenues.
In 2012, Boeing Commercial operations accounted for 7.4% of all B&O tax collected by the State.
Other Taxes
Sales Tax
B&O Tax
Sources: Washington State Department of Revenue; Washington State Office of Financial Management; Community Attributes Inc.

25. WASHINGTON’S INVESTMENT IN AEROSPACE: fiscal benefits, 2012

26. CONCLUSIONS
Boeing’s largest impacts come from induced impacts, i.e., spending of income throughout the economy. Induced effects accounted for 104,200 total jobs, compared with 31,700 through indirect effects.
In 2012, Boeing Commercial operations accounted for 7.4% of all B&O tax collected by the State.
Boeing Commercial’s fiscal impact significant, to the tune of nearly $600 million in 2012.

27. CONCLUSIONS

28. WASHINGTON’S INVESTMENT IN AEROSPACE: charitable contributions
In 2012, the Boeing Company, its employees, and retirees made charitable contributions of $51.8 million in Washington State.
Since 2000, Boeing has made 84 research grants to WSU worth $5.7 million.
Boeing executives sit on the Board of Directors for over 100 local non-profits.
Sources: The Boeing Company; Community Attributes Inc.