Tax reform was “the biggest thing we could do in this country to unleash economic energy, and we’re seeing it,” Boeing CEO Dennis Muilenburg told CNBC Thursday.
Boeing is among a number of companies that have said the Trump administration’s tax law changes have allowed for billions in additional investment into its business.
“This is one of the best things that’s happened in the last few months, the passage of tax reform,” Muilenburg told CNBC’s “Squawk on the Street.” “You know, frankly, I’d like to thank the administration on the Hill for getting that done.”
Muilenberg’s comments come a few weeks after Boeing reported it set a company record for commercial aircraft deliveries in 2017, getting 763 new planes to its customers. This year Boeing forecast it will shatter that record again, saying it expects to deliver 810 to 815 commercial aircraft in 2018.
The aerospace and defense giant continues to ramp up production as a percentage of the company’s revenue, bolstered by hearty performance last year and an end-of-the-year backlog which neared half a trillion dollars.
Muilenburg said Boeing’s ability to invest in the next generation of aircraft is “all enabled by tax reform,” citing investments it made in the production rate of the 787 Dreamliner aircraft program as an example. He said the company will now produce 14 Dreamliners per month, up from 12 per month.
Similar investments will be made to “ramp the 737 production rate,” according to Muilenburg, now that Boeing will be able “to make the capital investments to do that.”
“The number one thing we’re doing with the tax reform benefit is we’re investing in innovation, investing in growth, and that’s going to create manufacturing jobs in this country,” Muilenburg added.
Boeing’s stock has risen more than 109 percent over the past 12 months, as of Wednesday’s close.