Texas Border Business
Last week, the Boeing strike finally came to an end, marking a significant moment for the business community nationwide. After nearly eight weeks of stagnation, a new contract for mechanists has resolved the standoff. This resolution is a major win for Texas, a state with diverse and thriving industrial and aerospace sectors that were directly impacted by the strike. The Texas Association of Business (TAB) was proud to join a coalition of more than 53 employer organizations from 42 states to write a letter to Boeing’s leadership calling for an end to the costly strike. This positive development will clear the way for Boeing’s economic machine to restart, pumping economic activity back into Texas and throughout the nation.
As our coalition letter made clear, the impact of the strike has been wide-ranging and catastrophic:
“The ongoing production worker strike at Boeing is not only disrupting the regional economy of the Pacific Northwest but its impact is being felt across the entire U.S. economy. Countless companies in the aerospace supply chain are being forced to lay off employees due to decreased work orders.”
The strike also plunged Boeing into further financial peril, threatening the American aerospace industry — specifically Texas — into uncharted economic waters. In the strike’s final moments, local businesses, such as restaurants and retailers that rely on the aerospace industry as patrons, were facing the brunt force of the strike.
The aerospace industry in particular is integral to the Texas and U.S. economic engine, employing more than half a million workers, supporting more than 2.2 million jobs, and injecting $424 billion into the U.S. economy, along with global exports worth $135 billion in American-made products. For Texas — a hub at the forefront of aerospace and defense innovation — the disruptions caused by the strike undercut the momentum of one of our most robust industries.
Texas has long been a leader in advancing cutting-edge technologies, hosting major players in aerospace manufacturing and defense, with some referring to the Lone Star State as the “Gateway to Mars.” With our strategic investments in the aerospace sector, Texas plays a critical role in strengthening America’s competitive edge on the global stage, making the strike a disruption to the industry that is not only felt locally but across the nation.
According to the Wall Street Journal, the end of the strike promises to “bring relief to Boeing’s sprawling supply chain,” but unfortunately the damage inflicted by the strike will be longer lasting, with the company confirming “it will be months before Boeing reaches the production levels that it had previously hoped to hit by the end of the year.”
Thanks to the efforts led by the Association of Washington Business in spearheading the coalition letter, with active support from TAB and our colleagues across the country, the business community can breathe a sigh of relief. With Texas on the brink of new, transformative efforts to lead in the aerospace industry – including the recent launch of the Texas Space Commission – it is important for the Lone Star State to remain the top power player on the global stage and maintain our steadfast commitment to innovation, collaboration, and key investments in infrastructure.
We applaud the resolution of this almost 2-month ordeal, which will allow Texas and the nation to refocus on advancing the dominance of our aerospace industry on the global stage and preserve our competitive position in international markets.
– Glenn Hamer, President & CEO, Texas Association of Business
