Boeing enjoys profitable model here in Puget Sound

Commentary | August 5, 2009 | By John Burbank | Everett Herald

Boeing's second quarter profit was $998 million. That's $46 million more than a year ago. How does this work, with the 787 sucking up billions of dollars in development and mistakes? The answer is embedded in Boeing's tried-and-true, decades-old business model. Each plane brings in gross revenues of $60 million to $70 million. Unionized workers supply the skills to build these planes from the ground up. Each plane is a custom-built, complex piece of machinery, with slightly different tolerances, set-ups and even lengths, as requested by the carriers, built to fly hundreds of people across thousands of miles. So how about that outsourced 787?

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Posted in An Inclusive Economy, Column