The Boeing Company [NYSE: BA] is a powerful economic force in Alabama, contributing $1.5 billion annually to the state economy and creating more than 10,000 direct and indirect jobs in the state, according to a recently completed economic impact study.
Commenting on the results, U.S. Representative Bud Cramer stated, "Boeing and its partners have invested a great deal in our state and our community in North Alabama. Their presence here continues to pay large economic dividends."
"Boeing has had a significant presence in Alabama for almost 50 years," said Chuck Allen, vice president, Business Operations in Huntsville. "As the largest aerospace company in the state, we are committed to the continued success of our customers, to the economic health of the state and to the overall quality of life in the communities where we live and work."
The Center for Business and Economic Research (CBER), University of Alabama, Tuscaloosa, conducted the economic impact study on behalf of Boeing. Two years ago, CBER conducted a similar study for Boeing using 2003 data. In operation since 1930, CBER is a major repository for business, economic and demographic data for Alabama and the surrounding region.
Using actual data for 2005, the study found that Boeing operations generate nearly $1.5 billion annually in Alabama. Major economic impacts in 2005 include:
- Created 10,000 direct and indirect jobs in the state (created 199 indirect jobs for every 100 direct Boeing jobs);
- Distributed a payroll of $237.4 million;
- Spent $556.5 million with 375 Alabama businesses;
- Stabilized and sustained a highly skilled, technical workforce in the region;
- On average, the high-skill, high-income Boeing workforce earned in 2005 more than twice the average 2004 earnings for an Alabama worker; and
- Made charitable contributions of nearly $1.2 million.
"While Boeing's overall economic impact is significant, it's important to note that Boeing's high skill, high wage jobs demand our best and brightest workers and significantly contribute to our economy," said Dr. Carl Ferguson, director of The University of Alabama's Center for Business and Economic Research.
Boeing is the largest aerospace company in Alabama. Today, the workforce of more than 3,000 employees work on the leading edge of key space and defense programs, including the International Space Station, Ground-based Midcourse Defense, Avenger and the PAC-3 missile.
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $30.8 billion business. It provides network-centric system solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer; a foremost developer of advanced concepts and technologies; a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in sustainment solutions and launch services.