Boeing's Productivity-Per-Dollar Lags In Comparison

Details of a study measuring productivity levels of Airbus and Boeing workers, posted this week on an aerospace analyst's blog, found the European planemaker has a distinct advantage relative to the cost of employing them.

The Seattle Post-Intelligencer reports Leeham Group analyst Scott Hamilton obtained a copy of the Deloitte Group study, conducted for the Snohomish County Economic Development Commission. The study was apparently commissioned to determine how attractive Washington state is to aerospace companies considering a move there.

Alas, the study found Washington lacking, at least compared with Boeing's rival in Toulouse. Airbus uses fewer workers, to deliver more (mostly narrowbody) aircraft... and, at least compared with Boeing, doesn't pay exorbitant labor rates to do it. The European company also has an advantage when it comes to labor relations, and cost of living factors.

The study gave Washington better marks for the state's skilled labor force, a competitive tax environment, and overall quality of life. Crime levels are typically lower in Washington, and its residents healthier.

The Deloitte findings pose some contradictions. The P-I notes the contributing factors to some of those positives would be viewed by employers as a negative -- for example, higher labor costs typically translate to better quality of life for workers.

Deloitte interviewed over 45 representatives with state agencies, former aerospace executives and industry experts as part of the study, according to the paper.

In addition to competing with overseas locales, Washington may also find it increasingly difficult to compete with locations closer to home. Though the state still employees more aerospace workers per capita than any other state -- 44 per 1,000 workers -- cities like Charleston, SC, Wichita, KS and San Antonio, TX are coming up in those ranks.

FMI: Read The Leeham Posting