The Governor’s Office of Economic Development has announced that it will work with The Boeing Company over the coming years to expand the number of high-tech manufacturing jobs located in its Utah operations.
GOED will enter into a 20-year incentive agreement with Boeing. The main goal of the agreement, which may have incremental adjustments during its life, is to increase composite manufacturing in the State. Currently, Boeing manufactures 787-8 and -9 vertical fin in Utah, and in March announced it would assemble the 787-9 horizontal stabilizer.
The first phase of employment will include the addition of 104 new highly incented positions that will pay at least 125 percent of Salt Lake County’s average yearly wage including benefits over the life of the agreement. Wages paid out over the life of the incentive will exceed $146 million. Over the lifetime of the agreement, Boeing will pay over $5.5 million in new state taxes.
Along with Boeing’s growing work in process, the addition of 104 new positions will help the company support airplane production rate increases. The Department of Workforce Services (DWS) and the Industrial Assistance Fund (IAF) will be matching Boeing training funds up to $225,000 for specialty training. In addition to this training DWS will be providing up to $100,000 in inaugural “WorkKeys” funding in Utah. “WorkKeys” is a national program that allows the company to have greater accuracy in determining the skill set of potential new employees. These programs working in tandem should allow the company to increase the proficiency of its incoming workforce.
As the world’s leading Aerospace company, Boeing is the largest manufacturer of commercial and military aircrafts and leads the world in aerospace technology. They are also one of NASA’s largest service providers and are in charge of operating the Space Shuttle and International Space Station. Boeing has operations in roughly 70 countries and customers in nearly 150 countries worldwide. They are headquartered in Chicago and employ more than 170,000 people. They are one of the largest exporters in terms of sales in the United States.
The GOED Board of Directors has approved a $1,376,254 Economic Development Tax Increment Financing (EDTIF) post-performance refundable tax credit, or 25 percent of Boeing’s new state revenues over the incentive’s 20 year lifetime. Standard Examiner
