Texas Chamber Business News: End of Boeing Strike Benefits the State’s Aerospace Economy

Last week, the Boeing strike finally came to an end after nearly eight weeks when a new contract for mechanists was approved by the union. This resolution is a major win for Texas, a state with diverse and thriving industrial and aerospace sectors that were directly impacted by the strike. The Texas Association of Business (TAB) was proud to join a coalition of more than 53 employer organizations from 42 states to write a letter to Boeing’s leadership calling for an end to the costly strike. This positive development will clear the way for Boeing’s economic machine to restart, pumping economic activity back into Texas and throughout the nation.

As our coalition letter made clear, the impact of the strike has been wide-ranging and catastrophic:

“The ongoing production worker strike at Boeing is not only disrupting the regional economy of the Pacific Northwest but its impact is being felt across the entire U.S. economy. Countless companies in the aerospace supply chain are being forced to lay off employees due to decreased work orders.”

Local businesses, such as restaurants and retailers that rely on the aerospace industry as patrons, were facing lost sales and, potentially, layoffs for their employees.

The aerospace industry in particular is integral to the Texas and U.S. economic engine, directly employing more than half a million workers, supporting more than 2.2 million jobs, and injecting $425 billion into the U.S. economy, along with global exports worth $135 billion in American-made products. Texas has long been a leader in advancing cutting-edge technologies and hosting major players in aerospace manufacturing and defense innovation.

A prolonged strike threatened strategic investments in the aerospace sector that have led some to refer to the Lone Star State as the “Gateway to Mars.” Because Texas plays a critical role in strengthening America’s competitive edge on the global stage, the strike not only caused a disruption to the industry globally but also locally.

According to the Wall Street Journal, the end of the strike promises to “bring relief to Boeing’s sprawling supply chain,” but unfortunately the damage inflicted by the strike will be longer lasting, with the company confirming “it will be months before Boeing reaches the production levels that it had previously hoped to hit by the end of the year.”  

Thanks to the efforts led by the Association of Washington Business in spearheading the coalition letter, with active support from TAB and our colleagues across the country, the business community can breathe a sigh of relief. With Texas on the brink of new, transformative efforts to lead in the aerospace industry – including the recent launch of the Texas Space Commission – it is important for the Lone Star State to remain the top power player on the global stage and maintain our steadfast commitment to innovation, collaboration, and key investments in infrastructure.

We applaud the resolution of this almost 2-month strike, which will allow Texas and the nation to refocus on advancing the dominance of our aerospace industry on the global stage and preserve our competitive position in international markets.

-Glenn Hamer, President & CEO, Texas Association of Business

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