January 11, 2008

The opinion below appeared in the following:

• Austin Business Journal
• Dallas Business Journal
• Houston Business Journal

AIR TANKERS COULD BOOST STATE'S ECONOMY
By Tony Bennett, Chairman, Texas Association of Manufacturers

When Texans think about the United States Air Force, they probably envision fighter jets screaming across the sky and are likely infused with a sense of pride and a feeling of security. One type of security civilians might not associate with the Air Force is job security. However, the Air Force is poised to deliver thousands of high-quality, highly secure manufacturing jobs if it opts to hire an American company to build its new fleet of aerial tankers. With so many jobs at stake, Texas -- with our significant investment in aerospace and defense manufacturing -- will lose far more than the 3,000 high-paying jobs if the Air Force ships this job overseas.

Right now, the Pentagon's top brass is preparing to award the $40 billion contract to build a new fleet of aerial refueling tankers to one of the top bidders: The Boeing Co. or EADS. If you're like most people, EADS (also known as the European Aeronautic Defense and Space Company) doesn't ring a bell. It would be a shame if the Air Force passed over a respected American institution for this tax-payer funded job.

The contract, one of the largest in American history, will create and support thousands -- maybe tens of thousands -- of jobs, and those jobs belong in the United States. Boeing has pledged that 85 percent of its tankers will be "Made in the USA," as opposed to EADS, whose airplanes will be manufactured elsewhere. Even if the company in this competition were not Boeing, there really should be no question about who should earn the contract.

As it is, Boeing is not only an American aerospace leader, but a vital corporate citizen of our state. In 2007, Boeing employed more than 5,200 Texans and did almost $2 billion in business with more than 1,000 Texas companies. Boeing estimates that the tanker project will create and support an additional 3,000 jobs and $125 million in economic growth in our state. At least 13 Texas companies will be engaged as suppliers or vendors on the project.

Our local political leadership has a real opportunity to grow jobs in Texas by supporting Boeing's bid. Many of the jobs created to support the tanker project won't be specifically tied to aerospace engineering, but will be down-market from the initial $40 billion investment. Businesses in every sector of Texas' economy will benefit from the new jobs, the raises and promotions spurred by the Air Force contract.

Thousands of jobs affecting thousands of families, and unlimited opportunities are within reach for Texas as the Air Force contemplates its decision. Our Congressional delegation has the opportunity to play a grand leadership role in supporting Texas jobs and guaranteeing high-quality American-made equipment for our military. Let's hope they are up to the task.

Tony Bennett is chairman of the Texas Association of Manufacturers.