Maturing as an Economic Entity

Rockwell International Corp. long has been a symbol of Southern California’s association with the space program. As a business concern, it has been an important component in the growth of the region as a center of jobs and opportunity in the post-World War II era.

But the space and defense industries have been undergoing enormous change in recent years. This has accompanied such big events as the end of the Cold War and the onset of recession during the first half of the current decade. These larger developments contributed mightily to the uncertainty and disruption of the regional economy.

Rockwell’s recent decision to sell its space and defense businesses to Boeing Co. for $3.3 billion in a tax-free deal apparently was motivated by Rockwell’s intention to become a high-tech automation and electronics business, and by Boeing’s long-term strategic goals, said to include a union in the next century of space technology and consumer air travel.

These motives suggest the opportunity for some forward-looking thinking about positioning companies in Southern California for the 21st century. As such, there are some positive elements to be found in these developments. They suggest that the sale is not just more of the same gloomy economic news of recent years. The sale not only has the potential to keep Rockwell locally but also to bring Boeing into the area.

This leads to the question of the role of the county in recruiting business. It seems wiser now for its previous experiences. While others recruited California businesses for more attractive locations, the county too often was slow off the mark during the recession, lulled into a sense of well-being from the post-World War II boom years.

Local officials seem better positioned now to move to retain remaining Rockwell business in Orange County. For example, the Orange County Business Council made efforts to negotiate with the company. Some members made plans to go to Seattle to sell Boeing on business opportunities in the county. It is good to see the county responding this way, not just in retaining businesses, but in seeing the opportunities in announcements like this one. These efforts should be encouraged.

Much of the bleak economic news of recent years has given way to more positive assessments. Here is a major business announcement that carried no discouraging word of layoffs or plant closings, and workers seemed to be taking it in stride.

That change was also seen as an opportunity appears to signal a new maturity for the county as an economic entity.