Australian manufacturing is the gold standard for Boeing

Boeing International President Marc Allen said that Boeing's Australian operations set the "gold standard" for manufacturing in its global operations because of ongoing innovations by the local team that have resulted in more efficient products. Allen is visiting Boeing's Brisbane and Melbourne operations.

"I'm … trying to take a measure of counsel from the success that they have, as we think about what it means to accelerate our international process globally," the US-based executive said during a visit to Sydney on Wednesday.

Boeing's Australian operation is its largest outside the US, with $1 billion in annual turnover and more than 3000 employees. The company has co-located its research arm at its manufacturing sites to create an environment where it is easy to make incremental improvements to the production process. The aerospace giant also has a deep partnership with the CSIRO, the Defence Science and Technology Organisation (DSTO) and Australian universities.

Allen said Boeing had been able to thrive under the current policy settings in Australia, but would continue to press its case with the government for even more support for research and development.

"We think when there is a focus on applied technology — moving technology from advanced research to applications — that there is an incredible beneficial result for both company and country," he said. "The ease of doing business is fabulous, but it can always be improved. But fundamentally, it is about the commitment by the government to help us to build and improve the ecosystem we are looking for."

Boeing and CSIRO have jointly invested $120 million in various projects, with one recent success being the development of a lighter top coat for the paint on aircraft.

"If you are an airline, you have a lot of weight in your paint," Allen said. "That drives fuel [burn] and that drives emissions. The research done to improve the top coat and reduce weight gives airlines a more competitive airplane to fly and it puts less emissions into the Australian sky."

Boeing's Melbourne operations manufacture products for several of its key commercial aircraft models, including the 737, 747, 777 and 787. It will continue to produce cove lip doors, elevators and rudders for the 777 freighter.

Allen said Boeing remained open to expanding its Australian manufacturing and was focused in general on opportunities outside the US, given the majority of its aircraft were now sold outside its home market. "There are always going to be opportunities over the next five to 10 years for partners around the world to make a compelling case for why they can accelerate our efforts to enhance our market competitiveness," he said.

Boeing already uses Australia as a base for Insitu Pacific, which provides a full range of drone systems for commercial and military applications. The unit sells products as far north as Japan and across south-east Asia. "That is plainly a model important for continued growth here in the next five to 10 years," said Allen.

Source: SMH.