Boeing Pullout in Seattle Shakes Faith in Northwest Economy.

• Author: GRENN, BEN
• Position: Brief Article

Editor's Note: As we went to press, Boeing Co. announced that it would lay off up to 30,000 commercial airplane workers by the end of 2002 at Puget Sound, Long Beach, Calif., and Wichita, Kan., offices. Boeing had a downturn in orders for 2002 and expects more of the same due to a troubled airline industry, affected by the terrorist attacks on the U.S.

When this transportation giant announced corporate headquarters was relocating to Chicago, 400 Seattle jobs were lost. But the big question on many individuals' minds is "what's next?"

The Sky is falling. The sky is falling.

Well, maybe not just yet, but there were plenty of people in Washington State who held their collective breath this past March when the Boeing Co. dropped a media bombshell on the Pacific Northwest saying that it was leaving Seattle for greener pastures.

True, it is only its headquarters that is moving to Chicago, but still it is one of the Emerald City's oldest and mosttrusted tenants packing up and heading for the Midwest. By doing so it shakes the economic confidence in the Northwest.

"Twenty or thirty years ago, news of this magnitude would have been devastating to the people of Seattle," said State of Alaska Labor Economist Neal Fried. "Yes, I think it's a wake-up call for them. Seattle or anyone, for that matter, should not take huge industry or corporation for granted."

Boeing, the world's largest transportation company, which has been a Seattle staple for over 93 years, announced this past winter that its corporate headquarters is relocating to the Windy City. It means a loss of nearly 400 jobs, of which 200 will be absorbed in their new headquarters offices. Ken Mercer, a Boeing spokesman, said the decision to move was made because staff at Boeing headquarters wanted to be closer to their shareholders. Production and other operations of the airplane giant are expected to remain in the Seattle and or Everett, Wash., plants.

More than 5,000 people in Chicago submitted applications in a three-day recruiting effort for the 200 openings.

"The number of job losses is not so significant," said Steve Leahy, executive vice president of the Seattle Chamber of Commerce. "(The problem) is that now nearly all the important decisions regarding Boeing will be made from Chicago and that could have major repercussions on the economy in this part of the country.

"Most of us (in the Seattle area) were totally caught off guard by the news of the move. I don't think many saw this one...