Center for Community and Business Research

The Center for Community and Business Research at the UTSA Institute for Economic Development conducted a study on Boeing Logistics Support Systems’ (BLSS) reach into the San Antonio and Texas economies. BLSS is an aircraft maintenance, repair, and overhaul facility at KellyUSA, the redeveloped Kelly Air Force Base closed in the 1995 BRAC round. The study reports on employment, salaries, and spending, and estimates the total economic and employment impact due to BLSS operations in the state of Texas. Key findings include 2004 economic impacts of $357.1 million in total output, and a projected $2.1 billion in total output over the five contract years spanning 2009 thru 2013.

The total economic impact of Boeing’s San Antonio operations was $357 million in the state for 2004, just one of the key findings from a University of Texas at San Antonio study released today.

The Boeing Logistics Support Systems (BLSS) site is a major anchor tenant at KellyUSA industrial park, the former Air Force base closed in the 1995 Base Realignment and Closure round. The Boeing site contributes to United States defense preparedness through contracts providing critical aircraft maintenance, repair, overhaul and support services for the KC-135, C-17, KC-10 and C-130 aircraft.

The study, conducted by the UTSA’s Institute for Economic Development, found that in 2004, the BLSS local workforce of 1,436 represented 29 percent of the private sector jobs replaced to date and its facilities were 17 percent of KellyUSA’s marketable space. This includes the world’s largest hangar, capable of holding 15 wide-body aircraft. Over 1,200 aircraft have been delivered back into service since BLSS began operations here in 1998.

“San Antonio needs more, not less, higher-skilled and higher-paid jobs such as these to improve the make-up of our labor pool, and ultimately improve the quality of life for our citizens,” noted the study’s principal researcher, Robert McKinley, Associate Vice President for UTSA. Using 2004 financial and contract data as the reference year, the study projects the BLSS total economic impact for the 5-year period from 2009 – 2013 could be as high as $2.1 billion and 4,000+ jobs pending future contract awards.

Other economic impact study findings include:

• BLSS spread its work among 208 Texas suppliers, spending $29.2 million for aircraft parts and other support. Most of these suppliers (109) are located in the San Antonio area, and received 83% of all BLSS supplier expenditures in the state.
• Direct BLSS expenditures overall in 2004 totaled $163.7 million, including $111.5 million on personnel related costs.
• The study noted that employee tuition reimbursement reached $2 million, and charitable contributions from employees and the company totaled $400,000. These contributions assisted local schools and charities such as the Boys & Girls Club, Girl Scouts, Elf Louise and others.
• UTSA’s estimates the multipliers for re-spending of these funds in the Texas economy added up to $357 million total economic output in 2004. BLSS’s own 1,436 jobs plus 1,336 supplier related jobs created new personal income and business expenditures leading to a total of 4,174 Texas jobs attributable to BLSS in 2004.

U.S. Representative Charles Gonzalez who represents the District including the Boeing plant, commented “Boeing’s operations at Kelly carry on a long legacy of strengthening our country’s defense preparedness, by using the talents of our local citizens. We are hopeful this activity can continue and even grow for many years to come.”

Boeing has invested more than $80 million for facilities and infrastructure at KellyUSA. "We are committed to a long-term future at Kelly and are proud to be a major contributor to quality jobs for Texas and a corporate leader for the redevelopment and success of KellyUSA,” said Dennis Stuart, Boeing Logistics Support Systems Site Executive and General Manager.

The UTSA Institute for Economic Development has provided extension services and research for 25 years. UTSA’s mission is to be the region’s premier public university, providing higher education, research and public service to benefit South Texas. Over 24,000 businesses annually receive consulting, training and research assistance through the Institute’s programs. In partnership with UTSA, Federal grant support from the U.S. Department of Commerce, the U.S. Small Business Administration and others support this work.