Boeing welcomed to state

Boeing will bring an estimated 3,800 jobs to state and spur aeronautic industry

South Carolina had to offer a $450 million incentive package to Boeing to entice the company to build a new 787 aircraft assembly plant in North Charleston. But that looks like a smart investment in a deal that could come to rival the one that brought BMW to the Upstate 15 years ago.

The incentive package is the largest in state history but also conditioned on performance. Boeing will have to create at least 3,800 jobs and invest more than $750 million in seven years to take advantage of the perks.

One study of the likely economic impact of the new production line estimates that Boeing ultimately could bring $10 billion to the state. The study shows that income tax alone collected from new employees at the plant would pay for the entire $450 million incentive package.

Studies like this can be overly optimistic and wildly off the mark. In this case, however, much of the optimism seems justified.

Boeing is a giant, highly respected corporation that has been the industrial backbone of Washington State for decades. One measure of how fortunate South Carolina was to land the new assembly plant was the devastation felt by Washington at its loss.

The new 787 wide-body aircraft already is off to a good start even before the first test flight. To date, 55 airlines have placed orders for 840 of the jets, totaling $140 billion.

That, according to the company, is the most successful launch of a new commercial airplane in Boeing's history. The new South Carolina assembly line will help ensure Boeing can keep up with orders and make deliveries on time.

The promise of 3,800 new jobs is a shot in the arm for the state, even though many employees no doubt will come from out of state. In any event, much of the payroll will be spent in South Carolina.

The new operation also is certain to spawn a number of new subsidiary businesses and services. And nearly 4,000 new employees and their families will benefit existing businesses.

Economists note that small businesses generate the majority of jobs, and that certainly remains true for South Carolina. Nonetheless, bringing Boeing to the state is a big boost that could drive significant growth in the aerospace industry here.

Some critics have griped that Boeing has offered no guarantees that it will meet the terms of the incentive package. Meanwhile, the cost of government will go up at the expense of already-struggling citizens who can't afford the subsidy, according to one conservative think tank.

But ask most South Carolinians whether they think this was a good deal, and we suspect they'll be cheering the imminent arrival of this big new employer.