Boeing’s problems are nothing when compared to ‘the old days’

Boeing has experienced a lot of bad press recently. From President-elect Donald Trump publicly bad-mouthing their government deals, to canceled orders and staffing cuts.

But none of that should worry locals, at least when it comes to the local economy, according to GeekWire’s Alan Boyle.

“Back in the 1970s the joke was, ‘The last person leaving Seattle turn out the lights,'” Boyle said. “That was because of a drastic cut in Boeing’s workforce back then. The cut in the workforce now is not nearly as significant. It’s noteworthy and Boeing has a challenging year ahead. Not only because of the Trump transition but because of the changing market. But it’s not going to be anything like it was in the old days. And thank God for that.”

Related: ‘No surprise’ Boeing to reduce 777 production in Everett

Boyle is a veteran space and science journalist who has been tracking the industry in Seattle for more than 30 years. He points out that people watch for how well Boeing is doing as an indicator of the local economy — when the company does poorly, that can have dramatic effects on the local economy.

Boeing vs. the tech boom

But while that once was true, it isn’t the case anymore. That’s because the Seattle region has diversified its economy.

“I don’t think (recent developments) will have much of an effect on the non-Boeing worker,” Boyle said. “Boeing is going to be shedding jobs, and if you are a Boeing worker you are going to be on guard for that.”

“But it’s such a boom time for the tech sector,” he added. “You are going to be more worried about traffic and what housing is going to be like. That points to how the economy of the area is diversifying and it’s catching a wave on the tech front.”

Boyle notes other business considerations will affect local aerospace operations in the future, such as the freight jet market taking off. The company is also focusing on emerging markets in places such as Vietnam and Iran. Trump’s approach to those regions could affect Boeing’s business.

“I wouldn’t be too worried,” Boyle said. “For folks who are not working at Boeing, it’s not going to be the same situation that it was in the ’70s.”

That’s partially because even if a Boeing worker loses a job, there’s a variety of other companies in the region that could snatch them up.

“The aerospace business is turning into more of a data-driven, software engineering business,” Boyle said. “So you not only have prospects at Amazon and Microsoft, there’s a growing aerospace sector in, honest to God, outer space. We’ve got Blue Origin tripling its employment to more than 900 employees over the course of the year. That’s Jeff Bezos’ space venture.”

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