Utah’s business landscape is rich with professionals who have le...Read More
Social Media and Employers: Friends or Enemies?
The Case for HSAs
Time to Show Up
Make a Move
In the Lab
Rent to Own
Back from the Dead
A Breath of Fresh Air
Travel & Tourism
The Governor’s Office of Economic Development (GOED) 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.
“Utah’s manufacturing industry is growing, and the expansion of Boeing will bring us even higher,” Gov. Gary R. Herbert said. “I look forward to the growth this expansion will bring to Utah’s infrastructure and economy."
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 they 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 more than $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.
Boeing is the largest manufacturer of commercial and military aircrafts and leads the world in aerospace technology. It is also one of NASA’s largest service providers and is 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.
“Boeing’s reputation for innovation and leadership has in part helped Utah gain a reputation as one of the leading states for business,” GOED executive director Spencer Eccles said. “We look forward to seeing what this new project will bring.”
“EDCUtah is thrilled to see the continued expansion of Boeing in Utah.” said Jeff Edwards, president and CEO of Economic Development Corporation of Utah. “Boeing’s impact on the aerospace industry in Utah is significant to the success of this important economic cluster in the State.”
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.