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Boeing to Expand in Missouri


 Boeing to expand in St. Louis, Missouri.

Governor Jay Nixon of Missouri announced Monday that Boeing will build parts for the 777X in St. Louis.

It’s no fluke that Boeing is heading to St. Louis, where it has a campus devoted largely to the manufacture of military aircraft. Missouri lobbied aggressively to win the 777X contract, beating several other states for the prize. The new production facility is expected to create 700 high-tech jobs once in full production somewhere between 2021 and 2023. It will also “diversify Boeing’s St. Louis campus and better position Missouri to compete for additional defense and commercial projects in the future.”

Both the governor and a Boeing spokesman spoke in glowing terms about the news. President and CEO of Boeing Defense, Space & Security Chris Chadwick said, “As a result of our partnership with the State of Missouri, the St. Louis site is well-positioned to compete for new business and job opportunities. As we move forward, the additional 777X and F-22 work coming to St. Louis allows us to build on our 75-year legacy of success and create the right environment for potential long-term growth.”

But Boeing doesn’t come cheap, having made clear what it wanted from its new home. It will receive healthy tax incentives from both the state and St. Louis County: a $1.7 billion package was passed during a special session of the Legislature; and St. Louis County officials approved an additional $1.7 billion in tax breaks. Right now, it is “unclear how much in incentives Boeing will reap from the county and state.” Much depends on the size of the plant, the value of the equipment, and “actual number of jobs, capital investment, and wages paid for workers…” (SL Today).

St. Louis will also be home to a new information technology center and 400 new information technology jobs. 400 additional jobs will be created for research and development, and another 500 for service and support of the Lockheed Martin F-22 Raptor aircraft. Boeing—the second largest aerospace and defense contractor in the world--is Missouri’s largest manufacturer. The St. Louis County campus currently employs more than 14,500 workers and is supported by more than 600 Missouri vendors and suppliers.

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photo credit: Eric Bégin via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.