Tuesday, October 18, 2016

Boeing Opens St. Louis Commercial Airplanes Center

Boeing Co. has opened a commercial airplane center in St. Louis that will enable the company to expand and diversify its area operations, including for building composite parts for BA's 777X commercial jetliner.

A Closer Look

Boeing Co. has invested more than $300 million to construct its commercial airplane center. Bob Ciesla, vice president and program manager for BA's 777X St. Louis work, said the commercial airplane facility will enable Boeing's workforce "to demonstrate its versatility and expertise, positioning [BA] for additional commercial and defense work."

In addition, Boeing said the center will generate approximately 700 jobs across the business' production, engineering and various support areas.

The workers at Boeing's commercial airplanes center may help the company drive revenue growth as well – something that could prove important due to the fact that Boeing has struggled in the commercial airplanes market recently.

Commercial Challenge

Boeing commercial airplanes orders fell to 150 in the third quarter of 2016, down from 182 one year earlier. However, the opening of BA's commercial airplanes center may provide BA with additional resources that it can use to boost its commercial airplanes sales.

Meanwhile, Boeing recorded nearly $24.8 billion in revenues in 2Q16, up 1% year to year. As the company explores ways to further increase its revenues, the commercial airplanes center may play a pivotal role in the business' revenue growth.

(Daniel Kobialka - Investopedia)

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