Bombardier bills marquee jet as U.S.-made in Boeing trade fight
Bombardier Inc., a crown jewel of Canadian manufacturing, is billing itself as a major U.S. employer in a bitter trade fight with Boeing Co. that has profits, diplomatic ties and the future of a fledgling aircraft on the line. The maker of the narrow-body jet at the heart of the dispute has assembled an influential group of U.S. politicians, vendors and customers to back its side in a case brought by Boeing, which reaches a critical hearing next week in Washington, D.C. Bombardier says more than half its all-new C Series aircraft is made in U.S. factories even though final assembly takes place near Montreal. The U.S. International Trade Commission is slated to hear arguments Dec. 18 on whether American industry was harmed by Bombardier’s sale of its jet to Delta Air Lines Inc. at what Boeing calls an unfairly low price – enabled in part by subsidies in Canada. The U.S. Commerce Department sided with Boeing in a preliminary ruling in October and ordered tariffs of about 300 percent. Delta has vowed not to pay. While President Donald Trump likely won’t intervene directly in the case, the dispute is a test of his pledge to enforce U.S. trade laws more strictly while also encouraging foreign investment. Companies in other industries will be watching closely. A U.S. solar-panel maker is pushing for import tariffs, while steel producers are calling for a crackdown on shipments from China. The U.S. must also decide on washing-machine tariffs after a complaint brought by Whirlpool Corp. against Samsung Electronics Co. and LG Electronics Inc. ‘Bitterly disappointed’ The Bombardier case has already bruised U.S. relations with Canada and heightened tensions in the talks to overhaul the North American Free Trade Agreement. Canadian Prime Minister Justin Trudeau, who has aggressively defended Bombardier and discussed the matter with Trump, dropped the planned purchase of 18 Boeing fighter jets because of the dispute. The British government warned Boeing it could lose defense contracts. Prime Minister Theresa May said she was “bitterly disappointed” by the tariffs, which threaten about 1,000 jobs in Northern Ireland. For Montreal-based Bombardier, a loss would make other U.S. carriers hesitant about buying the C Series and could potentially prompt Delta to drop the order, said Addison Schonland, a partner at consultant AirInsight. The ITC ruling, expected in late January, is also critical to the company’s medium-term profitability as it prepares to deliver planes to Delta. In April 2016, the No. 2 U.S. airline ordered 75 of Bombardier’s CS100 jets, which carry fewer passengers than Boeing’s smallest aircraft, and secured options for 50 more C Series planes. The order has a list value of $5.6 billion before customary discounts. Bombardier hasn’t disclosed the price agreed to with Delta, nor has it revealed its unit costs in building the C Series. U.S. suppliers Bombardier will need all the help it can get in challenging the world’s largest aerospace company, which has developed a strong relationship with Trump. Bombardier argues that more than half of the aircraft’s content is sourced from U.S.-based suppliers, including engine maker United Technologies Corp. Bombardier employs about 7,000 in 17 U.S. states, while Chicago-based Boeing has 142,000 workers in all 50 states. The nationality of the C Series got even more complex after Boeing filed its complaint in April. That’s because its chief rival, Europe’s Airbus SE, announced plans in October to acquire a controlling stake in the program, throw its marketing heft behind the program and eventually open a second assembly line in Alabama. “It’s a huge victory for President Trump and all that he has been trying to do to bring more foreign investment and jobs to America,” said U.S. Rep. Bradley Byrne, whose Alabama district stands to gain 400 to 500 Bombardier jobs in Mobile. “This is not anti-Boeing. It’s pro-American.” Boeing, a major campaign donor, has plenty of friends of its own in Congress. It also spent $13 million to lobby in Washington during the first three quarters of 2017, compared with $1.1 million by Bombardier, according to data compiled by Bloomberg Government. ‘Enduring commitment’ Still, Bombardier has won plenty of support from politicians who have company employees in their states or districts. Letters shared with Bloomberg show members of Congress from both parties have written to the ITC, as has the governor of West Virginia and various airlines. “Bombardier has demonstrated an enduring commitment to the U.S., and its operations have had an unquestioned positive impact on our economy,” Arizona’s senators, John McCain and Jeff Flake, wrote in a Sept. 28 letter. The company has operations in Phoenix and Tucson. Bombardier Chief Executive Officer Alain Bellemare and other top executives addressed the trade dispute Thursday during a presentation to investors in New York. Bombardier has argued the C Series isn’t a comparable product to Boeing’s 737 and notes that Boeing didn’t formally take part in the competition that led to Bombardier’s sale to Delta. In a statement, Bombardier said Boeing is demonstrating “hypocrisy on launch pricing” by complaining about a tradition in the industry of giving major discounts to early buyers of a new aircraft. Boeing disputes the view that the C Series isn’t a direct competitor. The seating capacity of the CS300, the biggest model, is comparable to that of the smallest 737 jets. In its own statement, Boeing said Bombardier has “willfully broken U.S. and international trade law by illegally dumping its government subsidized C Series jets, which pose a direct threat to the Boeing 737-700 and 737 Max 7.” Besides bad blood between competitors, the case also threatens the very nature of the aviation industry’s global supply chain, aerospace observers say. “If this gets carried to its fullest conclusion and if there is retaliation, then you are damaging the idea that jetliners are an asset that everyone wants to finance, like New York real estate with wings,” said Richard Aboulafia, an analyst at Teal Group. “This is a global industry and the idea of trade barriers is almost quaintly obsolete.” Republished with permission from the Alabama NewsCenter.
Brooke Bacak: Pro-life voters should look beyond the ballot box
Voters in Alabama have great concern for the unborn. After Tuesday’s special election, many feel anguish over the loss of a reliably pro-life Senate seat, which could affect federal judicial appointments over the next several years. Without judges who respect the right of states to regulate abortion, pro-life voters feel especially helpless to defend the unborn. Yet, amidst much discussion of the issue, I feel compelled to share the irony of my experience working with an Alabama pregnancy resource center, where converting pro-life advocates to pregnancy center donors is a sobering challenge. This reality has been, frankly, especially difficult to reconcile with the fervor on display in recent weeks. While the political system in America will always have consequences for the unborn, it seems many advocates have overlooked opportunities and responsibilities that exist in our own backyard. Consider Tuscaloosa Sav-a-Life, which operates across the parking lot from the state’s busiest abortion facility. In the clinic, dedicated staff and volunteers offer: pregnancy tests and ultrasounds; prenatal and parenting education; essential baby supplies (even into the toddler years); and post-abortive counseling for those who seek it–all free of charge. Most important, workers share the gospel and compassion of Jesus Christ. The clinic stays booked and does everything possible to accommodate walk-ins. Sadly, the only thing preventing the clinic from accepting additional clients is a lack of funding. We need a nurse manager, as well as another ultrasound machine and sonographer. We would like to open five days a week, offer more services, advertise more effectively, and retain or recruit staff with more competitive salaries. But without increased financial support, these goals cannot be attained. Political candidates find no shortage of voters willing to finance their campaign or advocate their candidacy. But for those of us who believe, according to Scripture, that every individual is created in the image of God and is known to Him long before birth, it is a tragic and misguided mistake to place all our hope in men—flawed, by nature—who hold or seek office in a terribly broken political system. Spending even one day in a pregnancy resource center affirms that unborn babies and their mothers are best served by face-to-face acts of service. Moreover, it makes clear that even if Roe v. Wade were reversed tomorrow, there is a deeper human need that cannot be met by government restrictions or programs alone. This is not to dismiss the convictions of pro-life voters but to implore each of us to look beyond the ballot box. There are a number of pregnancy resource centers in Alabama: find one and support it. Talk to the leaders of your church or civic organization about becoming a financial partner. Include one in your personal year-end giving. A donation of any amount will have an immediate impact. Many mothers and fathers in our communities face unplanned pregnancies. By supporting organizations that exist to serve their needs, we can do more in one year to protect and preserve the sanctity of life than Washington will do in a lifetime. ••• Brooke Bacak is a guest contributor to the Alabama Policy Institute (API). Brooke is an expert in various public policy areas, having spent seven years of her career in Washington D.C. serving as policy advisor to several republican members of the U.S. Senate, including Senator Ted Cruz, Senator Jeff Sessions, Senator Jon Kyl, and Senator Tom Coburn. Brooke and her husband, a public school teacher, reside in Tuscaloosa with their three children.
Shaw Industries investing $184 million in Alabama fiber manufacturing facility
Shaw Industries Group, Inc. (Shaw) announced on Tuesday it will invest $184 million in its Andalusia, Ala., manufacturing facility, which creates fiber used to manufacture carpet. “Shaw’s significant new investment in its Andalusia manufacturing facility is a welcome development that positions the plant for the future and demonstrates the company’s confidence in its large Alabama workforce,” said Alabama Governor Kay Ivey. “We look forward to working with Shaw to help its Covington County operation not only succeed but also thrive.” The project will include construction of new and expanded building assets, and installation of substantial amounts of new manufacturing equipment. “These investments will ensure the long-term viability of this critical operation within Shaw’s portfolio of manufacturing facilities. They are designed to improve the plant’s ability to compete successfully in the marketplace for the short and long term,” stated Vance Bell, Shaw Chairman and CEO. “This facility upgrade will utilize state of the art technology and innovative processes that will be industry leading in cost and quality.” Greg Canfield, secretary of the Alabama Department of Commerce, acknowledged, “We’ve made it a priority in Alabama to assist companies like Shaw that are reinvesting in their facilities and upgrading their operations to enhance competitiveness and efficiency. This project shows Shaw’s commitment to its Andalusia facility, and it will benefit employees there for the long haul.” The changes will improve efficiency and production as well as ergonomics and safety for the more than 1,000 associates who work at the plant. Demolition work is underway at the facility, and new equipment is set to be in place and operational by mid-2018; the facility will remain operational throughout the transition. “Shaw’s commitment to safety and product quality are the cornerstone of business,” added Ron Fantroy, Shaw Plant Manager for Plant 65/Andalusia. “This tremendous investment illustrates our continual effort to improve our operations and employ advanced manufacturing techniques to meet the needs of our associates and customers.” Shaw’s operations are more complex than ever. As a result, almost every job at Shaw — from designers and data scientists to machinists and managers — requires a higher skill level than in the past. Shaw benefits from a talented, well-trained associate base in Covington County, where it is the county’s largest employer. “Shaw is involved in an array of education programs – from kindergarten to college, from reading to robotics – to help support the development of a highly skilled workforce necessary for 21st century jobs,” Bell noted. Greg White, Chairman of the Covington County Commission said, “This sort of investment would not be made unless the company had great confidence in the folks that show up to work with them every day. And, I am especially thankful for everyone throughout our community who looked for every way possible to support this investment. These efforts are providing a long-term economic stability that most communities could only hope for.” “Andalusia and Shaw Industries have worked together in the past to make sure that Shaw’s Andalusia operation is poised for success,” added Andalusia Mayor Earl Johnson. “The Andalusia Council, Utilities Board and myself together with Southeast Gas and PowerSouth Energy Cooperative were glad to do our part to help Shaw decide to make this major investment in the Andalusia plant. Shaw had other options, and in making this decision, we are pleased that they will be part of our community for years to come.”
Roy Moore refuses to concede, saying ‘immorality sweeps over our land’
Former Alabama Chief Justice Roy Moore refused to concede the special U.S. Senate election in a fiery video statement released Wednesday night, warning Alabamians “the heart and soul of our country is at stake.” “Today, we no longer recognize the universal truth that God is the author of our life and liberty,” the former Republican candidate said. “Abortion, sodomy and materialism have taken the place of life, liberty and the pursuit of happiness.” Moore lost the election to Democrat Doug Jones Tuesday night, but in the video, Moore said his campaign is still waiting for the official vote count from Alabama officials. But Moore believes that provisional and military ballots could still swing the race in his favor. “This has been a very close race and we are awaiting certification by the Secretary of State,” Moore Said in the video. Alabama Secretary of State John Merrill has said it is “highly unlikely” that Jones would not be certified as the winner, given the unofficial results: — Jones received 671,151 votes (50 percent), to Moore’s 650,436 votes (48 percent). With an additional 22,819 (2 percent) write-ins. The Moore campaign can call for a recount, but would have to pay for it unless the margin is within half a percentage point. In the video, Moore went on to assert the political process has been “tainted” by “baseless” allegations and money from outside groups. “Immorality sweeps over our land. Even our political process has been affected with baseless and false allegations, which have become more relevant than the true issues which affect our country,” Moore said in the four minute and 46 second video. “This election was tainted by over $50 million from outside groups who want to retain power in their own corrupt ideology.” Watch Moore’s statement below: Read Moore’s full remarks below: Tomorrow, my wife and I will celebrate our 3
