Final Analysis: Crowning Achievement

| FROM THE PRINT EDITION |
 
 

Welcome to “the dark months.” This is what Mick McHugh calls the period between the end of one baseball season in late September and the beginning of the next one in early April.

McHugh owns F.X. McRory’s Steak, Chop & Oyster House, which debuted in Pioneer Square in 1977, the same year the Seattle Mariners were born. If you’re a diehard Seattle sports junkie, you’ve probably quaffed or noshed at McRory’s at least once. If you have visited during the dark months, it was probably on a day when the Seattle Seahawks were playing football.

There are only eight Seahawks home games each NFL season, so the dark months—October through March—are a challenge for establishments like McRory’s that rely on the sports-obsessed public for much of their income. Basketball and hockey are played during the dark months, which is why McHugh probably thinks Chris Hansen is a heavenly combination of messiah, mensch and Merlin.

Hansen is the rich guy from San Francisco who wants to put a basketball/hockey arena near the existing football and baseball stadiums in Seattle. He has spent more than $50 million buying up property nearby. In a recent blog post, McHugh described Hansen’s arena as having “the potential to … make a difference in the lives of not only the business owners in the area … but the staff we will be able to keep on during those quiet times and the additional people we will have to hire.”

In sporting circles, Hansen has already had his halo fitting. His canonization is likely on the fast track because anyone who can bring professional basketball back to Seattle—and maybe a hockey team, too—while footing much of the bill for a new arena is destined to be seated at the right hand of Oprah come Judgment Day.

But on the day in September that Seattle was celebrating the City Council’s tentative agreement over the financing of Hansen Arena, I was moderating a panel discussion about the outlook for the Washington state economy in 2013. Susan Sigl, CEO of the Washington Technology Industry Association, mentioned that our economic future is inexorably linked to our ability to close the high-tech education gap—the yawning chasm between the huge number of available tech jobs in Washington and the small number of graduates qualified to fill them.

It’s an oft-heard refrain, but if we don’t improve education in the so-called STEM disciplines (science, technology, engineering and mathematics), it doesn’t really matter if we get a shiny new version of the Seattle Sonics to play in a shiny new arena. Without a successful economy firing on all cylinders, adding one or two more teams to the professional sports landscape is like putting gas in a car whose fuel tank has a hole in it.

And so as I moderated the discussion, I began to wonder: Wouldn’t it be cool if somebody like Chris Hansen, a zillionaire who grew up in Seattle loving the Sonics and who wants to give back to the community he loves, were willing to pony up about $300 million to kick-start a first-class effort to close the tech education gap?

Look, I love sports. But sports is entertainment. It can boost civic identity to a point, but it’s not as if a city lives or dies according to the number of millionaire athletes it’s willing to coddle. Trust me. The city of Seattle and the state of Washington will survive without a pro basketball team. But without enough highly qualified tech graduates to stoke our economic engine, Mick McHugh’s dark months could become an all-year proposition.

JOHN LEVESQUE is the managing editor of Seattle Business magazine.

Final Analysis: Won’t You Come Home, Bill Boeing?

Final Analysis: Won’t You Come Home, Bill Boeing?

How can we celebrate such a momentous birthday when the honoree doesn’t even live here?
FROM THE PRINT EDITION |
 
 

Elsewhere in this month's issue you’ll find congratulatory notes honoring The Boeing Company on the occasion of its 100th anniversary. Allow me to add my own felicitations.

I just wonder if we all might get a little more jazzed about this upcoming centennial — the actual date is July 15 — if Boeing were still an honest-to-goodness Seattle company.

Sure, it still employs nearly 80,000 people in the Puget Sound region and helps drives our economy. But the day 15 years ago when Boeing announced it was going to move its corporate headquarters to Chicago is the day it essentially placed thumb to nose and said, “Buh-bye. We’re bigger than Seattle.”

I remember thinking at the time, “This makes no sense.” It still doesn’t. It was a move calculated by a CEO more interested in expediency than in legacy. Former Boeing CEO Phil Condit said it wasn’t unusual for a big corporation to have its headquarters distant from its factories. “What we are doing is being done for the benefit of the corporation,” Condit told shareholders at the time. “We want to grow The Boeing Company. If headquarters is to do its job, it must stand separate from any one of the business units.”

Seriously? Boeing is hardly a conglomerate. Despite the acquisitions of recent years, Boeing is and always will be a maker of airplanes and other things that fly through air and space. Condit wanted Boeing to be another United Technologies or another Textron, but it was really more of a true conglomerate in the 1930s, when it operated airlines, engine makers, propeller companies and other enterprises before the feds put the kibosh on all that vertical integration.

Boeing has prospered — and has helped thousands of Puget Sound families prosper — for generations. To suggest that the company is better off by having its corporate headquarters 1,700 miles from its main factories and most of its employees is just silly. What’s more believable is that Boeing wants to isolate itself from the fallout as it continues to ship jobs from Washington to less union-friendly states like South Carolina and Oklahoma. Since November 2012, Boeing employment in Washington state has declined by more than 10 percent — around 8,600 jobs — despite spectacularly generous tax incentives extended by the state Legislature to persuade Boeing to keep production of the 777X airliner in state.

It’s this kind of “thank you” — and the decamping of the corporate HQ staff to Chicago — that rubs Seattle the wrong way. We should be jumping up and down, waving balloons and having parades in Boeing’s honor next month. But am I the only one who gets the feeling that Boeing is still doing business in Washington state because it simply doesn’t want to spend the stupid sums of money it would take to move its Renton and Everett operations to cheaper “right to work” states?

Condit changed the culture at Boeing, and, judging from the difficult launch of the 787 Dreamliner, it’s a culture change that didn’t take. I’m inclined to believe his predecessors from Bill Boeing on would never have moved the company headquarters to Chicago, and I’d be willing to bet that the people who run the commercial airline business here would rather have the 500 or so headquarters people back in Seattle where they belong.

Whether that ever happens depends on what Boeing’s future CEOs value more: being proud of Boeing’s remarkable history or being fearful that its remarkable history somehow diminishes its opportunities.

John Levesque is the managing editor of Seattle Business magazine