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Study shows Boeing pumps millions into economy

By Adi Pavlovic
Student Writer, College of Liberal and Fine Arts

(Nov. 1, 2005)--A recent study by UTSA's Institute of Economic Development indicates Boeing Co.'s local economic impact totals nearly $357 million. The study shows the immense financial impact of Boeing Logistics Support Systems in San Antonio and its network of more then 160 suppliers.

The economic study was conducted by the Center for Community and Business Research, a division of the Institute for Economic Development housed at UTSA. U.S. Representative Charlie Gonzalez, D-Texas, with the help of Robert McKinley, UTSA associate vice president for economic development, provided details for the study.

The study reports on employment, salaries, spending and estimates the total economic and employment impact due to Boeing's operations in Texas. Key findings include 2004 economic impacts of $357.1 million in output and a projected $2.1 billion in output for 2009-2013.

Texas Secretary of State Roger Williams and Gonzalez hosted an Oct. 14 meeting to discuss Boeing's role in the San Antonio and Texas economies.

"Boeing's operations at Kelly USA carry on a long legacy of strengthening our country's defense preparedness by using the talents of our local citizens," said Gonzalez. "We are hopeful this activity can continue and even grow for many years to come."

Boeing began operations in the San Antonio area in 1998, building an Aerospace Support Center at the former site of the San Antonio Air Logistics Center at Kelly Air Force Base. Boeing agreed to a 17-year lease with the Greater Kelly Development Authority and provided a new hangar, which added 124,000 square feet of indoor capacity. The center now employs approximately 1,400 employees who perform depot-level maintenance, modifications and upgrades for the U.S. Air Force fleet of KC-135, KC-10 and C-130 aircrafts.

Boeing has invested approximately $80 million in upgrading the facilities and infrastructure at the former military. The center manages the Programmed Depot Maintenance (PDM), Global Air Traffic management (GATM), Contract Logistics Support (CLS), Avionics Modernization Program (AMP), and the C-17 Globemaster III Sustainment Partnership (GSP). Boeing Co. is considered an anchor tenant at Kelly USA.

For more information contact Robert McKinley at (210) 458-2455 or Wendy Locklear at (281) 226-4038.

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