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    Washington2013 Washington2013 Document Transcript

    • businessclimate.com/washington Sow Impressive State feeds the world Flight Assisted Major aerospace projects give industry new lift Discovery Zone Research flourishes in global health and life science Sponsored by the Washington state Department of Commerce | 2013
    • 44 Workstyle Composite Strength 22 Manufacturing legacy crafts innovation in advanced materials development Flight Assisted 26 Major aerospace projects give industry added lift 26 54 Business Friendly 32 State Commerce Department programs deliver for Washington Sow Impressive 36 Washington state agriculture feeds the world Outside Influences 44 From mountains to the sea, outdoor attractions are numerous – and spectacular – in Washington state Discovery Zone 50 Research flourishes in global health, life sciences Clean and Green 54 Diverse portfolio makes state a powerhouse in clean energy technology Table of Contents Continued on Page 9 50 On the Cover Washington state is an innovation leader, aided by numerous world-class research institutions such as the University of Washington School of Medicine. Photo by jeff adkins b u si n e ssc l i m a t e . c o m / was h i n g t o n 7
    • 80 Insight Overview 13 Almanac 14 Business Climate 19 Economic Profile 94 Livability Technology 63 Transportation 67 Education & Workforce 75 Livability 80 Gallery 86 All or part of this magazine is printed with soy ink on recycled paper containing 10% post-consumer waste. Please recycle this magazine 67 b u si n e ssc l i m a t e . c o m / was h i n g t o n 9
    • 201 3 Edition , volum e 1 Content Director Bill McMeekin Proofreading Manager Raven Petty Content Coordinator Jessica Walker Staff Writer Kevin Litwin Contributing writers Pamela Coyle, Melanie Kilgore-Hill, Bill Lewis, Kim Madlom, John McBryde, Stephanie Vozza, Gary Wollenhaupt Senior Graphic Designers stacey allis, Laura Gallagher, Kris Sexton, Jake Shores, Vikki Williams Graphic Designers erica lampley, kara leiby, Kacey Passmore Senior Photographers Jeff Adkins, Brian McCord Staff Photographers Todd Bennett, martin B. cherry, Michael Conti color imaging technician alison hunter Integrated Media Manager Matt McWhorter Ad Production Manager Katie Middendorf Ad Traffic Assistants Krystin Lemmon, Patricia Moisan Chairman Greg Thurman President/Publisher Bob Schwartzman Executive Vice President Ray Langen Senior V.P./Sales Todd Potter Senior V.P./Operations Casey Hester Senior V.P./Client Development Jeff Heefner Senior V.P./business Development Scott Templeton Senior V.P./Agribusiness Publishing kim holmberg V.P./business Development Clay Perry V.P./external communications Teree Caruthers V.P./Visual Content Mark Forester V.P./Content Operations Natasha Lorens V.P./travel publishing susan chappell V.P./Sales Rhonda Graham, Herb Harper, Jarek Swekosky Controller Chris Dudley Senior Accountant Lisa Owens Accounts Payable Coordinator Maria McFarland Accounts Receivable Coordinator Diana Guzman Sales Support project manager sara quint system administrator Daniel cantrell Web Creative Director Allison Davis Web Content Manager John Hood Web Designer II richard stevens Web Development Lead Yamel Hall Photography Director Jeffrey S. Otto Creative Services Director Christina Carden Creative Technology Analyst Becca ary Audience Development Director Deanna Nelson New Media Assistant Alyssa DiCicco Distribution Director Gary Smith Executive Secretary Kristy Duncan Human Resources Manager Peggy Blake Receptionist Linda Bishop Choose Washington is published annually by Journal Communications Inc. and is distributed through the Washington State Department of Commerce. For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by email at info@jnlcom.com. For more information, contact: Washington State Department of Commerce 2001 Sixth Ave., Suite 2600 • Seattle, WA 98121 Phone: (206) 256-6100 www.choosewashington.com Visit Choose Washington online at businessclimate.com/washington ©Copyright 2012 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent. Member The Association of Magazine Media Member 10 C h o o s e W as h i n g t o n Custom Content Council
    • business ® Digital Edition Sow Impressive From beef to dairy to crops, Washington state feeds the world Story by John McBryde Photography by Jeff Adkins T he numbers are impressive. Washington state has nearly 40,000 farms that produce some 300 agricultural commodities including national leaders such as apples, sweet cherries and pears. More than 700 licensed wineries line the countryside, making the state the second-largest wine producer in the country. Washington’s $40 billion food and agriculture industry employs approximately 160,000 people and contributes 12 percent to the Evergreen State’s economy. But to get a true understanding of how farming affects the economy, one needs to look beyond the numbers and consider the quality behind those figures Agriculture is a major engine for economic growth in the state, which produces $8 billion in crops and livestock. More than one-third of its agricultural products are destined for foreign markets, and exports are booming because the state is a leading supplier of in-demand commodities. The state’s food industry is also booming with products shipped throughout the United States. Many factors are behind the success, seen both domestically and internationally. The state is blessed with low energy costs, an abundance of water resources Cattle, like the ones pictured on the De Boer Dairy farm in rural Burlington, contribute to Washington’s $950 million in dairy commodities production. 36 CHOOSE WASHINGTON SETTING THE TABLE The top 10 commodities in Washington state (for 2010) and value of production: • Apples: $1.44 billion • Milk: $950 million • Wheat: $925 million • Potatoes: $654 million • Cattle/Calves: $568 million • Hay: $509 million • Cherries: $367 million • Nursery/Greenhouses: $300 million • Grapes: $214 million • Pears: $189 million Source: Bumper Crop BUSINESSCLIMATE.COM/WASHINGTON 37 Share with a friend Easily share an interesting article, stunning photo or advertisement of your business on Facebook, Twitter or via email. HAVE A BLOG OR WEBSITE? Embed the digital magazine into your site to add compelling information about the successful businesses located here, what it’s like to work here and why it’s a great place to live. DO MORE THAN JUST READ ABOUT IT Hear from decision-makers at leading companies, see video of the region’s success stories and find links to useful demographic information and information sources. businessclimate.com/ washington b u si n e ssc l i m a t e . c o m / was h i n g t o n 11
    • ONLINE l i f e s t y l e | w o r k s t y l e | d i g g i n g d e e p e r | v i d eo | l i n k t o u s | a d v e r t i s e | c o n ta c t u s | s i t e m a p choose washington CONNECTIONS An online resource at businessclimate.com/washington digital Magazine >> businessclimate.com/washington Sow Impressive State feeds the world Flight Assisted Major aerospace projects give industry new lift Lifestyle Find out what it’s like to live in Washington state and what makes it such a special place to be. Discovery Zone Research flourishes in global health and life science SponSoreD by the WAShIngton StAte DepArtment oF CommerCe | 2013 Read the magazine on your computer, zoom in on articles and link to advertiser websites. site guide >> Find available commercial and industrial properties with a link to a searchable database. Workstyle We turn a spotlight on innovative companies that call Washington state home. success breeds success >> Meet the people who set the pace for business innovation. Dig Deeper >> Plug into the state with links to local websites and resources to give you a big picture of the state. demographics >> A wealth of demographic and statistical information puts the entire state at your fingertips. See the Video Our award-winning photographers give you a virtual tour of unique spaces, places and faces. guide to services >> Links to a cross section of goods and services special to the state. go online businessclimate.com/washington 12 C h o o s e W as h i n g t o n
    • Overview Ten Good Reasons to Choose Washington The Evergreen State is a location of choice for investment, job creation 1. Innovation: The state has more patents per capita and the highest research funding. The University of Washington has received more than $1 billion in sponsored research funds. UW receives more federal research funding than any other U.S. public university. In the most recent ranking by China’s Shanghai Jiao Tong University, UW ranked 16th among the world’s top universities. 2. A cluster of highly diverse industries: The state is a global leader in industries ranging from aerospace and aviation to information technology, e-commerce, clean energy, global health, agriculture and marine trades. 3. A haven for smart workers: With 31 percent of the workforce having a bachelor’s degree or higher, two major research universities, numerous public and private fouryear institutions, workforce programs and 34 community and technical colleges, Washington companies enjoy access to skilled workers. 6. Powerful advantages: Fed by the Columbia River, the state is the leading hydro-electric power producer in the nation. Hydropower accounts for nearly 75 percent of electricity generation in Washington. The state offers among the lowest industrial power costs in the nation. 7. Known by the companies it keeps: Washington state 8. A desirable environment for investment and job creation: Spurred by its pro-business climate, skilled workforce, legacy of innovation, low energy costs and quality of life offerings, Washington has crafted a $355 billion economy 5 4. A global address: Washington has a trade network that keeps the state’s companies and products connected to the Port Angeles world. The state’s exports in 2011 totaled $64 billion. 5. The right connections: Aberdeen Washington’s transportation network includes 75 ports and 139 airports including 11 primary airports. It is positioned equidistant between key European and Japanese markets, making it a desirable logistics center. 10. A full menu of lifestyle options: Washington’s stature is the headquarters for eight Fortune 500 companies and some of the world’s best-known brands including, Amazon.com, Boeing, Costco, Microsoft, Nordstrom Starbucks and Weyerhauser. 9. The high life: The state’s mountains, including the Olympics and Cascades, offer opportunities for recreation. Major national parks, including Mount Rainier, Olympic, North Cascades and San Juan Island National Historical Park, are joined by several national recreation areas and dozens of state parks to give bikers, backpackers and birdwatchers hundreds of miles of trails to enjoy. as a center of global business is helping to attract new residents not just from the United States, but from nations around the world. It is a state that promotes diversity and healthy living. It not only offers a full range of cultural attractions, music and entertainment, but it is an inventor of new genres in all areas of the arts. Its diversity in lifestyles and cultures allows residents the freedom to be individuals and the opportunity for entrepreneurs to work where they want to live. Bellingham Everett Kirkland Seattle Tacoma Olympia Spokane Bellevue Renton Kent Wenatchee 90 Ellensburg Moses Lake 90 Yakima Sunnyside Kennewick Walla Walla 82 Vancouver b u si n e ssc l i m a t e . c o m / was h i n g t o n 13
    • Almanac State That Innovates Washington state has developed a unique tool to promote regional growth in specific industry clusters. The Innovation Partnership Zone program lets localities partner research, workforce training and private-sector participation in geographic proximity to encourage new technologies, marketable products, company formation and job creation. The variety of industry sectors that IPZs cover in Washington include development in green information technology, medical devices, clean marine transportation, alternative energies, semiconductor and display, viticulture, water management and aerospace. Charging ahead Washington has added charging stations along major highway corridors including Interstate 5. The West Coast Electric Highway along I-5 is a three-state network of electric vehicle charging stations that will span 1,300 miles from the Canadian border to the California border, with charging locations every 25 to 60 miles. The technology allows drivers to recharge electric vehicles, such as the Nissan Leaf, in 30 minutes or less, and there will be Level 2 equipment to recharge other plug-in electric vehicles. Highway 2 also has charging stations, allowing drivers to charge vehicles in Leavenworth and Wenatchee. For more, go to www.westcoastgreenhighway.com. Start the Engines B&G Machine, founded in 1953, is one of North America’s leading independent industrial diesel repair and remanufacturing companies for large-bore engines. Some of the current IPZs that have formed to develop innovation include an Interactive Media and Digital Arts IPZ in King County, an Urban Clean Water Technology Zone in Pierce County, an Aerospace Convergence Zone in Snohomish County and a Port of Bellingham Waterfront Innovation Zone in Whatcom County. Go to www.choosewashington.com for more. Super Cars Washington is home to SSC North America, a manufacturer of supercars such as the Ultimate Aero and the Tuatara. The Ultimate Aero was once the world’s fastest production car, able to reach a top speed of 245 mph. The Tuatara, the company’s newest product, can reach 276 mph. The Aero, Tuatara and the company itself are the brainchildren of Jerod Shelby, who started his career by building replica sports cars and then began designing supercars. The Ultimate Aero has a price tag of $650,000 and the Tuatara goes for about $750,000. Four Tuataras can be manufactured during a month. All cars are built at the SSC North America facility in West Richland. For more, go to www.sscnorthamerica.com. In its early stages, the company supported industries such as logging and fishing. B&G has evolved to serve markets including mining and large wind turbines. Its heavy diesel remanufacturing and engine rebuild shops in Seattle also serve marine and oil-and-gas industry customers throughout North America, Europe, Latin America, Asia and the Pacific Rim. Some of B&G Machines’ clients include Caterpillar, Cummins, Detroit, Deutz, Komatsu and Mack. Go to www.bandgmachine.com for more on the company. 14 C h o o s e W as h i n g t o n
    • SURF’s Up SURF is a business incubator that was originally conceived as a way to provide mentorship and meeting space for entrepreneurs of startup companies with a technical programming requirement. In 2012, SURF secured a floor of Class A office space in downtown Seattle, and today, the SURF Incubator brings together people from different technical and business backgrounds who represent various industry sectors. Photo Courtesy of owen kindig SURF’s highly collaborative environment allows entrepreneurs and developers to help one another succeed. Go to www.surfincubator.com for more. Zillow’s Home Zillow.com is an online real estate database founded in 2005 by former Microsoft executives Rich Barton and Lloyd Frink. Baking for 100 Years Roman Meal marked a rare achievement in June 2012 – a 100-year anniversary – and joined a prestigious list of fewer than 25 private companies in the United States that have notched a century in business. Roman Meal, headquartered in Tacoma, is a family-owned company that makes whole grain breads and cereals inspired by original recipes dating back to the company’s 1912 beginning. Roman Meal has grown to partner with more than 90 bakeries in the United States and internationally that bake and distribute the breads and hot cereals locally to assure product freshness. Specific products include honey wheatberry bread, 12-grain bread, multigrain hot dog buns and cream of rye cereal. Company officials say none of their products contains high fructose corn syrup, and three of their breads have earned American Heart Association Heart Check Marks. For more, go to www.romanmeal.com. The Seattle-based company’s database includes more than 100 million homes across the United States (not just those homes currently for sale). Zillow.com’s search engine is utilized on the websites of more than 180 U.S. newspapers. Zillow offers features like value changes of each home in a given time frame (such as one, five or 10 years), aerial views of homes and prices of comparable homes in the area. It also provides basic information on a given home such as square footage and the number of bedrooms and bathrooms. Users can also get current estimates for homes if there was a significant change made such as a recently remodeled kitchen. Have Web, Will Travel Expedia Inc. is an Internet-based travel website that was started by Microsoft researchers and later spun off as a multibillion-dollar business. Today, the Bellevue-based company is a $3.3 billion business that oversees several online travel brands such as Expedia.com, Hotels.com, Hotwire.com and Classic Vacations. Expedia companies operate in more than 60 countries, plus book travel for a number of airlines and hotels. The company also books car rentals, cruises, vacation packages, and various attractions and services via the Internet and telephone travel agents. Besides the United States, Expedia provides its travel services for 22 other countries such as Australia, Canada and France. b u si n e ssc l i m a t e . c o m / was h i n g t o n 15
    • Almanac Call for Security A Washington state company is on the front lines of the battle to thwart cyber criminals looking to create computer havoc. F5 Networks Inc. has developed expertise and resources to help companies protect their systems and networks. The company’s Application Delivery Networking system provides companies with expert services in virtualization, cloud computing and on-demand IT. F5, based in Seattle, has produced a three-minute animated video to explain to organizations how they must rethink ways to protect their network, applications and data from everchanging threats. The company helps customers effectively secure their applications and data under a single, unified platform. For more, go to www.f5.com. Cloud Formations Amazon Web Services (AWS) is a collection of cloud-based data farms that provide web services for individuals and companies. The cloud-computing platforms of AWS are offered by Amazon.com, with the most well-known of the services being Amazon EC2 and Amazon S3. AWS was launched in 2002 and remains in Washington, where the state’s low-cost energy and stable power grid in Eastern Washington are major advantages. AWS offers programs such as Amazon CloudFront, Amazon CloudWatch, Amazon Elastic MapReduce, Amazon Historical Pricing, Amazon Simple Email Service and AWS Storage Gateway. What’s in Store Wholesale club pioneer Costco, luxury retailer Nordstrom and outdoor chain REI are all based in Washington. Costco Wholesale Corp. was founded in 1983 in Kirkland and today is headquartered in Issaquah. It is the fifth-largest retailer in the United States, with about 600 locations, including 430 in the U.S. Nordstrom Inc., founded in 1901, is based in Seattle. Today, 225 Nordstrom stores operate in 29 states, with the company selling clothing, accessories, handbags, jewelry and cosmetics. Treatment of Water REI sells sporting goods, outdoor gear and clothing in 110 retail stores in 30 states. Founded in 1938, REI is headquartered in Kent. WaterTectonics began in 1989 in the Bothell home of founder Jim Mothersbaugh, and today, has more than 60 employees at its headquarters in Everett. The company has developed technology for water treatment at about one-tenth the energy cost of other methods, and sells its water treatment technology to a variety of industries including wastewater plants, construction companies, marine sectors, and the oil and gas industry. WaterTectonics’ electrically driven water treatment process is referred to as electrocoagulation, and has the support of the Washington State Department of Ecology. WaterTectonics is now devoting much of its time to treating water used by the oil and gas industry, and recently signed a global licensing agreement with Halliburton Energy. For more information, go to www.watertectonics.com. b u si n e ssc l i m a t e . c o m / was h i n g t o n 17
    • Business Climate A Powerful Combination Cost, workforce, innovation deliver wealth of opportunities in Washington Story by Stephanie Vozza Photography by Jeff Adkins State Incentives Washington offers an environment that is pro-business and a distinct quality of life that includes ready access to beaches, waterways, forests and mountains. Washington Gross State Product Source: U.S. Bureau of Economic Analysis $250B $200B $339.8 Billion $300B $331.8 Billion $350B $355 Billion $400B $333.7 Billion the business landscape from technology to manufacturing to retail. Companies such as Boeing, Costco, Amazon.com, Microsoft, Nordstrom, Weyerhauser and Starbucks are just a few of Washington’s leading corporate citizens. “We have a young population that is globally focused and open minded,” says James Palmer, business development manager for the Washington State Department of Commerce. $325.1 Billion T hanks to its pro-business climate, highly skilled workforce and long legacy of innovation, Washington state has created a highly desirable environment for business investment and job creation. It has leveraged its many assets, including a superior transportation infrastructure, an end-to-end supply chain, low energy costs and renowned research institutions, to spur a $355 billion economy across a diverse group of industries from aerospace and boat building to information technology and life sciences. Signature companies with names recognized around the world make their home in Washington and inhabit virtually every corner of $150B $100B 0 2007 2008 2009 2010 2011 b u si n e ssc l i m a t e . c o m / was h i n g t o n 19
    • high achiever #1 Best State to Start a Business, US News, 2009 #1 among all states in lowest average retail cost per kilowatt hour for industrial electricity (4.07 cents) #3 for Access to Capital, CNBC’s 2012 Best States for Business #5 for Technology and Innovation, CNBC’s 2012 Best States for Business #7 Forbes Best States for Business and Careers, 2011 #7 on State Business Tax Climate Index by the Tax Foundation, fiscal 2012 20 C h o o s e W as h i n g t o n It has the cheapest, cleanest power available in North America, with nearly 75 percent coming from renewable sources. In addition, it’s the only state on the West Coast with no state income tax. Washington ranked No. 7 on the 2012 State Business Climate Tax Index by the Tax Foundation. Washington also offers a decided logistical advantage including 75 ports and 139 airports. The quickest transit time from Shanghai to New York is through Seattle, Palmer says. Made in the U.S. Many U.S. companies are bringing manufacturing operations back home, and Washington is a leader in the industry’s revival. New Geography magazine ranks the state’s Seattle-Bellevue-Everett area No. 1 in Large Regions for Manufacturing Growth, thanks in large part to its aerospace sector. “We’ve always had a strong manufacturing base,” Palmer says. “One hundred years of being a home for (aerospace manufacturer) Boeing has attracted hundreds of companies to support it and its tier system. But we’re finding more and more companies bringing advanced manufacturing back from abroad due to rising costs, intellectual property protection issues, logistics issues and supply issues. And it’s a tremendous achievement to be the leader in that revival.” It was the culture of innovation and access to a highly skilled workforce that drew global brand StairMaster to Vancouver. The company purchased Star Trac, an Irvine, Calif.-based leader in commercial fitness equipment, and considered relocating its headquarters to California. With involvement from the state, company decision-makers chose Washington instead, a decision that led to the creation of 100 new jobs. “There is a quality workforce in the Vancouver area,” says Ean Reves, chief financial officer for both StairMaster and Star Trac. “And the Northwest area is home to a lot of fitness enthusiasts. We like that our employees are also participants in an active healthy lifestyle. The area is home to other like businesses and even though we may be competitors, it helps draw in talent and that’s good for all businesses in fitness markets.” Above: The original Starbucks coffee shop is located in downtown Seattle at 1912 Pike Place. Founded in 1971, Starbucks now serves coffee enthusiasts around the world.
    • Tax Incentives Washington offers incentive programs for businesses in industries such as aerospace, biofuel, aluminum smelting, agriculture, renewable energy, and more. Incentives are also provided for companies that locate in rural counties and counties with low employment, or that use renewable energy and other green processes. For more information, go to www.choosewashington.com. Big Business Palmer says Washington is home to more forward-thinking companies such as Costco, Starbucks and Amazon.com. “They were all ideas that were out of the box, created by progressive and creative people,” he says, adding that creative people are typically also collaborative people. “It’s our secret sauce,” he says. “Our information technology companies work with our biotech companies and our manufacturing companies to create a diversified economy. The cross pollination of ideas has created tremendous innovation such as better ways to deliver a vaccine.” And the state boasts a quality of life that includes a lower cost of living, good schools, renowned arts and cultural offerings, and countless outdoor recreation options such as hiking, biking, golfing and horseback riding. Water activities, including fishing, canoeing, sailing and scuba diving, are also popular pastimes in Washington. “Our business is family oriented,” Reves says. “We employ a lot of people with young families and this area has great schools and affordable housing. It makes a big difference.” Fortune 500 Companies headquartered in Washington (2012 rank) • Costco Wholesale, Issaquah (24) • Microsoft, Redmond (37) • Amazon.com, Seattle (56) • Paccar, Bellevue (159) • Starbucks, Seattle (227) • Nordstrom, Seattle (242) Ahh … Relocation Made Easy • Weyerhaeuser, Federal Way (374) • Expeditors International of Washington, Seattle (395) Pacific County offers it all! Choose your market! We’re looking for potential growth in commercial and industrial markets, R&D, food processing, and forest/wood products. ACCESS to a Collaborative Region Our cities, ports and county are ready to help jump-start your business. We offer state, regional and local incentives. ACCESS to State-of-the-Art Infrastructure We provide low-cost energy, telecommunications at 1 Mb/second or greater. ACCESS to Low Cost of Doing Business The cost of doing business here is advantageous. As of January 2011 our COLI index was 85%. ACCESS to a Distinctive Northwest Lifestyle We offer a high-quality lifestyle in a world-class natural setting and are an outdoorsman’s paradise. PAcific county EconoMic DEvEloPMEnt council 530 Commercial St. • Raymond, WA 98577 360.875.9330 (north) • 360.642.9330 (south) www.pacificedc.org www.tradeandindustrydev.com/Region/Washington/ pacific-county-economic-development-council-3567
    • 22 C h o o s e W as h i n g t o n
    • Composite Strength Manufacturing legacy crafts advanced materials innovation Story by Bill Lewis • Photography by Jeff Adkins I f some of the world’s most advanced products had a label, it would read Made in Washington. The state is a manufacturing powerhouse, with more than 7,000 companies employing almost 260,000 workers. These firms are making products for industries for which the state is renowned including advanced products for the aerospace, marine craft and forestry industries. “Technical manufacturing is the key to American industry,” says Lisa Janicki, CFO of Janicki Industries in Sedro-Woolley. “A capital-intensive business like Janicki Industries thrives in Washington where government understands and supports the aerospace industry.” The company designs and builds tooling for aerospace, marine, wind energy and transportation customers. Its R&D lab pushes the boundaries of composite fabrication materials and techniques. Location Yields Advantage Janicki Industries’ location in Washington state helps in a number of ways, Janicki says. Community and technical colleges collaborate with industry to design courses that are relevant to workforce needs, and aerospace grants have expanded a marine technology center in Skagit County to include advanced composite manufacturing. In addition, through specific funding from the state, six local high schools joined with Skagit Valley College to build the Northwest Career & Technical Academy, where high school students can earn certificates in specific work fields. The state is a world leader in advanced materials innovation, gaining a reputation as the Silicon Valley of Composites. Washington manufacturers are major players in the construction and use of parts, components and finished products using advanced composites, as well as tools to fabricate composite materials. Besides Janicki Industries, more than 40 composite companies work in the state including Hexcel, Composite Solutions, Toray and Triumph. The composites sector has expanded with the development and final assembly of the Boeing 787 in Everett, but is growing across a range of industries. SGL and BMW, for example, announced a joint venture in composite manufacturing in Moses Lake in 2010 to manufacture carbon fiber paneling for BMW’s new electric car, and automaker Lamborghini is partnering on composites research in the state. Pumped Up On Washington The state offers advantages with access to markets, a talented workforce and supportive governments, says Bruce Cazenave, CEO of Nautilus Inc. “Being at the center of the Pacific Northwest not only puts us in the bull’s eye for attracting creative individuals, but it also puts us in closer proximity to our offshore manufacturers, which becomes an advantage from a logistics point of view,” he says. “It’s also important for us to work in a city and state that fosters a strong business community, is supportive and makes doing business easy, and that is exactly what Vancouver, Washington, does for us,” Cazenave says. Left: Janicki Industries’ production autoclave is among the largest in the Northwest at 50 feet in length and 12 feet in internal diameter. The autoclave cures composite carbon fiber parts under high pressure and heat at the company’s facility in Sedro-Woolley. b u si n e ssc l i m a t e . c o m / was h i n g t o n 23
    • Washington State Export Volume 2011 $64.8 billion 2010 $53.4 billion 2009 $51.9 billion 2008 $54.5 billion 2007 $52.1 billion Top Export Categories, 2011 $28.1 billion Transportation equipment $11.4 billion Washington state’s active and healthy lifestyle is also a big plus. “Quality of life plays a huge role at Nautilus. As our brands promote a healthy, fit and active lifestyle, it only makes sense to do business in the state known for its healthy population and culture. Combine that with our talented employees who live our brands in their daily lives, Vancouver is the perfect match for Nautilus,” he says. Agricultural products $3.7 billion Petroleum and coal products $3.7 billion Computer and electronic products $2.9 billion Food and kindred products $1.8 billion Machinery, except electrical Source: WISERTrade 24 C h o o s e W as h i n g t o n Innovation Economy Advanced manufacturing is important to the economy, says John Vicklund, president of Impact Washington, a nonprofit organization that provides the sector with expertise and assistance. “Advanced manufacturing is critical to the U.S. and Washington economy because it drives more innovation than any other sector, performing two-thirds of all private sector R&D in the nation,” Vicklund says. Companies such as PACCAR, a leader in the design and manufacture of lightand heavy-duty trucks such as Kenworth and Peterbilt, and Genie Industries, one of the world’s best-known manufacturers of aerial lifts, scissor lifts and booms, have helped position the state as an international manufacturing leader. The sector contributes to Washington’s position as an export leader, shipping more than $64.8 billion in products in 2011. Seattle was the top U.S. city for manufacturing job growth in 2011. To build and maintain strength in the sector, the state offers incentive programs to assist manufacturing and resources such as Impact Washington. The Department of Commerce also provides expertise and technical advice to manufacturers to help them become more efficient and profitable. “Support for STEM education (science, technology, engineering and math), transportation, the aerospace industry and other leading-edge industry sectors is a top priority of state lawmakers,” says Vicklund. The state has another attribute that helps it succeed, according to Janicki. “The natural beauty of Northwest Washington attracts highly educated people who want to work hard and play harder. Access to activities such as mountain biking, kayaking and skiing are employee benefits that come with living within reach of both mountains and ocean,” she says.
    • Whatever Floats Your Boat P h o t o C o u r t e s y o f pa cc a r Full speed ahead for the marine trades industry in Washington state From left: An employee exercises in the gym at Nautilus Inc.’s new headquarters in Vancouver; A technician at Janicki Industries creates a carbon fiber composite tool at the company’s facility in Sedro-Woolley.; Truck manufacturer PACCAR, whose brands include Peterbilt and Kenworth, is based in Bellevue. The marine industry in Washington state is cruising right along, generating an economic impact in 2012 reaching nearly $4 billion. Marine trades employ 28,000 workers in the state who earn an average salary of $56,000, according to the Northwest Marine Trade Association. Forty percent of those employed work in advanced manufacturing. “We’ve known for years that boating means business, but we didn’t fully appreciate its economic impact. We do now,” says Jim Hebert, Northwest Marine Trade Association chief researcher. Washington is a leader in the marine industry thanks in part to its port system and more than 170 miles of Pacific coastline. The state’s skilled workforce and advanced materials innovation has shaped a sector that includes disciplines as varied as yacht manufacturing, the repair of ferries and tug boats, the design and construction of shipyards, and the development of naval architecture. “Marine trades are part of an extremely diverse ecosystem, with many marine-related companies and businesses now expanding their focus and catering toward naval and commercial vessels as well,” Hebert says. A prime example is Westport Yachts, a company that began in 1964 building ocean-going craft for the North Pacific commercial fishing fleet and today is the largest yacht builder in North America. From its more than 400,000 square feet of manufacturing space at three shipyard locations in Western Washington, the company also is a producer of boats for military and government uses. Another company doing well in Washington’s marine industry is Bellingham Marine, which is a global leader in the design, production and construction of marinas and related products. The company has installed more than 20 million square feet of concrete floating docks around the world, says Roxie Comstock, manager of business enhancement at Bellingham Marine. It is also a truly international company, with nine manufacturing plants, 16 offices and 18 divisions in North America, Europe, Asia and Australia. Bellingham Marine recently completed a design/ build project for a transient marina in Con Brown Harbor in Aransas Pass, a community just outside of Corpus Christi, Texas. “We do planning, manufacturing and installing of marinas, and our portfolio encompasses mega yacht centers, fishing harbors, city ports and residential dock systems,” Comstock says. “We enjoy being headquartered in Washington.” – Kevin Litwin b u si n e ssc l i m a t e . c o m / was h i n g t o n 25
    • 26 C h o o s e W as h i n g t o n P h o t o C o u r t e s y o f br i t i sh a i rwAY S
    • Flight Assisted Washington’s support for aerospace gives lift to industry Story by Bill Lewis • Photography by Jeff Adkins W ashington’s aerospace companies have changed the way the world lives, works and plays, while firmly establishing the state as a global center for innovation, entrepreneurship and employment within the industry. From 1916, when industry leader Boeing incorporated with just 21 employees, to today, when the company completes final assembly of the world’s most advanced jetliner, the 787, in Washington, aerospace has become an economic powerhouse. And it’s just getting started. “Since Bill Boeing began his company here, naturally the industry grew up in the Northwest. As technology has developed, it stands to reason that the next great ideas are going to come from within the industry. Washington is where the expertise and tools already exist to create the next innovative technologies,” says Linda Lanham, president and executive director of Aerospace Futures Alliance, which promotes and advocates for the industry. Boeing and Beyond Today, more than 800 aerospace companies employ more than 123,000 workers, including 6,550 aerospace engineers. Boeing is a household name, but the industry’s scope extends far beyond aircraft assembly and includes leadingedge research and development in advanced materials, alternative fuels, next-generation air traffic management, space and avionics. Global aerospace leaders Crane, Esterline Technologies Corp., Fokker Elmo, Goodrich Aerostructures, GE/Smith, Clockwise from top: A new Emirates Air Boeing 787 Dreamliner takes off after being manufactured and assembled at Boeing’s Everett operations.; A British Airways aircraft features sidewalls that were supplied by Heath Tecna, based in Bellingham.; A worker creates aerospace parts at Electroimpact in Mukilteo. b u si n e ssc l i m a t e . c o m / was h i n g t o n 27
    • Washington aerospace facts 800 Aerospace-related companies in Washington $36 billion Economic impact of industry in the state $22.4 billion Exports from the sector, almost twothirds of U.S. total 123,000 Direct aerospace jobs in the state (indirect employment from the industry estimated at 209,300 jobs) $5.45 billion Aerospace industry-related wages $83,370 Average salary Leibherr Aerospace and Rolls Royce have a presence in Washington. “It is due to this concentration of aerospace activity and the supporting educational institutions that we are able to provide the supply chain requirements and skilled workforce necessary to sustain and grow this dynamic and leading edge industry,” says Randall Julin, who leads business development for Absolute Aviation Services. Among the companies serving the needs of the aerospace industry is Electroimpact, based in Mukilteo. The company, a supplier of automation and tooling solutions, is one of the world’s largest integrators of aircraft assembly lines and counts major aerospace manufacturers such as Airbus, 28 C h o o s e W as h i n g t o n An employee builds a capacitor assembly for a strobe light, which is designed for the wing tip of an aircraft, at the Absolute Aviation Services facility in Spokane. Boeing, Spirit Aerospace, Vought and Northrop-Grumman as clients. Aerospace Advantages Julin co-founded Absolute Aviation Services, which was recently purchased by Wencor LLC. The new owner kept the name and plans to grow the company in Washington – in part because the state provides advantages for aerospace businesses including a skilled workforce and highly integrated companies. Washington state has the largest concentration of aerospace workers in the nation. The industry is divided into six sub clusters: airframe manufacturing; avionics; composites; engineering and research; tooling; and interiors. The state offers resources, programs and incentives that encourage industry growth. Programs such as Air Washington, a consortium of 11 community and technical colleges that collaborate on aerospacerelated training initiatives, have ensured a skilled workforce. The state’s Centers of Excellence program promotes collaboration and connects employers and educational institutions in industries such as aerospace. A spot on the Pacific Rim and a strong transportation network guarantees global access and adds to the state’s aerospace cluster. Collaboration Is Key Heath Tecna is a major supplier of interior products for the passenger aircraft industry headquartered in Bellingham.
    • In March 2010, Northwest Economic Council-Whatcom County and Washington Department of Commerce staff met with Heath Tecna executives to map out what would become a comprehensive business retention/expansion plan to fuel the company’s expansion. That collaborative effort resulted in the creation of more than 400 jobs and support for Heath Tecna’s contracts acquisition plans, bringing $40 million in new export business and establishing a foundation for future growth. Since that initial meeting, Commerce Department staff has worked on two rounds of Workforce Investment Act (WIA) funds to Heath Tecna, which included a governor-approved WIA grant of $75,000 for 100 new jobs. Another Commerce-directed WIA grant for $69,500 will train 150 new line workers and 10 incumbent engineers in computeraided 3-D interactive applications. A number of regional and state organizations have partnered in these efforts including the Northwest Workforce Development Council, Impact Washington and the Washington State Employment Security Department. WIA grants helped provide training for several companies in the Unmanned Aerospace Vehicle (UAV) industry in the Columbia River Gorge region. The Commerce Department approved $70,000 for training for 85 to 100 workers at the region’s UAV supply companies, including Custom Interface, Sagetech, American Aerospace Engineering, Innovative Composite and Insitu. Julin credits the enthusiastic support at all levels among Washington’s major advantages, and cites such legislative and executive action as creation of the Governor’s Office of Aerospace. “I cannot think of a better place to start an aerospace company – it’s all here,” Julin says. Livingthe ground up. green starts from Living green is making sure the air in your home is healthy for your family to breathe. Test your home for radon and build radon-resistant. It's easy. That's living healthy and green. Just call 866-730-green or visit www.epa.gov/radon b u si n e ssc l i m a t e . c o m / was h i n g t o n 29
    • Fast Track Research University of Washington’s Lamborghini lab attracts global partners The era of aluminum and steel is stepping aside for the age of composites, and research being conducted at the Automobili Lamborghini Advanced Composite Structures Laboratory at the University of Washington is attracting industry partners from around the world, ensuring the state’s leadership in the field. International companies such as Volvo, Audi, Quantum Composites, Innovative Composites Engineering and Mitsubishi Rayon are accessing Lamborghini’s expertise and excellence in carbon fiber technology, says Professor Paolo Feraboli, the laboratory’s director. “We have a unique facility that enables us to follow the entire process for the development for a composite part – from concept to prototype to manufacture to testing. We also have a unique ability to tie the top composites knowledge derived from aerospace and apply it to any other field including design criteria, analysis practices and others,” he says. The lab, located at the University of Washington’s Aeronautics College of Engineering, is an example of how the state’s educational institutions provide support for the aerospace industry, as well as partner in the automotive, recreational and infrastructure industries. When an industry partner makes a request, the Automobili Lamborghini lab performs contract work in the form of standardized or specialty composite material testing. The lab also provides research on composite materials and structures that are of particular relevance to ensuring the safety of present and future aircraft and ground vehicles. Current research is exploring composite uses in airframes, developing standardized models for testing the crashworthiness of materials and studying how lightning affects composites. – Bill Lewis Top: A researcher tests carbon fiber lighting technology being developed at the Automobili Lamborghini Advanced Composite Structures Laboratory at the University of Washington, where automaker Lamborghini is advancing carbon fiber technology innovation. b u si n e ssc l i m a t e . c o m / was h i n g t o n 31
    • 32 C h o o s e W as h i n g t o n P h o t o C o u r t e s y o f p u g e t s o u n d b u s i n e ss j o u r n a l /a n t h o n y b o l a n t e P h o t o C o u r t e s y o f bmw J e ff Ad k i n s
    • Business Friendly Commerce Department programs deliver for Washington Story by Kim Madlom I f you’ve ever played a game on your computer, then you likely have enjoyed the creativity of Seattle-based PopCap Games Inc. The firm’s creations are so popular, it’s estimated that more than 1 billion people have played a PopCap game. That number speaks of a global reach. Asia is one of PopCap’s fastest-growing markets, thanks, in part, to the assistance of the Washington State Department of Commerce. “We were earlier entering the important Chinese game market than many of our competitors,” says James Gwertzman, vice president for the Asia Pacific Region. He says the Commerce Department’s role as a centralized point of contact and resource for funding were critical to PopCap’s success in this area. As a participant in the department’s 2005 trade mission to China, PopCap early on adopted an international business strategy focused on this emerging digital market, and has since worked closely with the department to develop its potential. In the process, the company has expanded its revenue by some $20 million and opened an office in China in 2008. Extending Global Reach Washington state businesses understand the power of tapping overseas markets, and the commerce department works closely with businesses that are exporting now or want to export in the future. Enprecis is another Seattle-based company that has opened an office in Shanghai with assistance from the state Commerce Department’s China Accelerator program. The company provides an online survey and reporting platform to the automotive industry. Its customer base now includes 12 automobile brands and eight global markets including China and Russia – a market outreach made possible in part by support and resources from the state. In 2011, Enprecis participated in a state-sponsored trade mission to Europe and made valuable contacts through meetings with major German and French automotive manufacturers, facilitated by the Department of Commerce’s Europe representative. These relationships led to new sales. Enprecis expects those contacts will result in a series of multimillion dollar contracts over the next several years. Clockwise from top left: The SGL Automotive Carbon Fibers plant, a joint venture of The BMW Group and The SGL Group, is in Moses Lake.; Ultra-light carbon fiber made in Moses Lake is being used by automaker BMW in its BMWi series of vehicles; Former Washington Gov. Chris Gregoire, center, at the opening of the SGL Automotive Carbon Fibers plant. b u si n e ssc l i m a t e . c o m / was h i n g t o n 33
    • The TOUGHEST boats in the world are made in the Lewis-Clark Valley “We Understand Manufacturing!” – Port of Clarkston To learn how the Port of Clarkston can help you grow your manufacturing business, go to www.portofclarkston.com/manufacturing. Port of Clarkston 849 Port Way • Clarkston, WA 99403 509-758-5272 34 C h o o s e W as h i n g t o n
    • Top washington state Export markets, 2011 China $11.2 billion Canada $8.5 billion Japan $6.5 billion United Arab Emirates $2.8 billion South Korea P h o t o C o u r t e s y o f bmw $3.3 billion United Kingdom Ultra light-weight carbon fiber made in Washington state is being used in BMWi vehicles. “Without the state’s assistance and programs, we would have been unable to get access to the key decision makers at these large global manufacturers resulting in swift decisions to move forward,” says Enprecis CEO Richard Counihan. In 2012, Enprecis participated in the state’s mission to India and Korea and continued expanding its presence in Asia. Partnering for Jobs Helping Washington businesses expand their markets is a key goal of the commerce department, but so is attracting new investment into the state. A recent success is a joint venture between The SGL Group, one of the world’s leading manufacturers of carbon-based products, and The BMW Group, one of the world’s most iconic brands. A $100 million investment from the two companies built a state-of-the-art carbon fiber manufacturing plant in Moses Lake that will create a total of 240 new jobs when all manufacturing lines are launched. The commerce department provided a muchneeded centralized point of contact for SGL and BMW to navigate the various stakeholders, opportunities and options for resources and services, especially at the local level, and in the $2 billion development of a competitive proposal in this international site search. “Members of the Department of Commerce in Washington state with whom we worked were as dedicated to the development and completion of this project as we were,” says Scott Carlton, president SGL Carbon North America. “Washington’s business climate provides a powerful blend of advantages that has launched some of the most successful companies in the world. From aerospace and advanced manufacturing to mobile tech, software and medicine, the common thread is innovation,” says Mary Trimarco, business development manager for the Washington State Department of Commerce. “As a state, we focus on cultivating the ideal fertile ground for business leaders and entrepreneurs to bring their products and services to market. “We invest in the education, workforce training, energy and technology infrastructure demanded by dynamic industry sectors,” she says. “We understand the challenges of competing in a global marketplace. We can dig in and work closely with companies to match Washington’s diverse benefits and opportunities with their specific business needs.” b u si n e ssc l i m a t e . c o m / was h i n g t o n 35
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    • Sow Impressive From beef to dairy to crops, Washington state feeds the world Story by John McBryde Photography by Jeff Adkins T he numbers are impressive. Washington state has nearly 40,000 farms that produce some 300 agricultural commodities including national leaders such as apples, sweet cherries and pears. More than 700 licensed wineries line the countryside, making the state the second-largest wine producer in the country. Washington’s $40 billion food and agriculture industry employs approximately 160,000 people and contributes 12 percent to the Evergreen State’s economy. But to get a true understanding of how farming affects the economy, one needs to look beyond the numbers and consider the quality behind those figures Agriculture is a major engine for economic growth in the state, which produces $8 billion in crops and livestock. More than one-third of its agricultural products are destined for foreign markets, and exports are booming because the state is a leading supplier of in-demand commodities. The state’s food industry is also booming with products shipped throughout the United States. Many factors are behind the success, seen both domestically and internationally. The state is blessed with low energy costs, an abundance of water resources Cattle, like the ones pictured on the De Boer Dairy farm in rural Burlington, contribute to Washington’s $950 million in dairy commodities production. Setting the Table The top 10 commodities in Washington state (for 2010) and value of production: • Apples: $1.44 billion • Milk: $950 million • Wheat: $925 million • Potatoes: $654 million • Cattle/Calves: $568 million • Hay: $509 million • Cherries: $367 million • Nursery/Greenhouses: $300 million • Grapes: $214 million • Pears: $189 million Source: Bumper Crop b u si n e ssc l i m a t e . c o m / was h i n g t o n 37
    • With more than 300 commodities commercially grown in Washington, it is no wonder we have been busy for the last 100 years! The Washington State Department of Agriculture (WSDA) opens doors to global markets through inspection, certification and/or licensing for: • Food Safety and Sanitation • Phytosanitary and Export Documentation • Product Grade, Size and Condition • Warehouse and Nursery Audits Serving Washington Agriculture and the Public Since 1913! • Animal Health Washington State • Pesticide Application 95% of the world’s consumers are outside the U.S. WSDA’s International Marketing Program wants to introduce you! We assist Washington companies with: • How to Start Exporting • Labeling and Certification Requirements • Meeting Buyers Around the World Department of Agriculture P.O. Box 42560 Olympia, WA 98504-2560 (360) 902-1800 http://agr.wa.gov
    • and top-notch transportation infrastructure. The port system on Puget Sound and the Columbia River is among the best in the United States. Railex, a freight rail carrier that provides nonstop, coast-tocoast delivery of Washington goods to the East Coast, has a refrigerated, mega-trans-load distribution center in Wallula. And in Rosalia, construction is under way on a new, $17 million grain-handling facility scheduled to open in 2013. Core Product Of course, when one thinks of crops from Washington, apples come to mind. The state’s apple industry accounts for 60 percent of U.S. production, with a value of $1.44 billion. An increasing slice from that industry comes from the relatively young Cashmere-based company Crunch Pak, which in 2001 introduced a method to treat apples so they would maintain their freshness after slicing. The company is now the world’s leading supplier of fresh sliced apples. “We’ll go through over a million pounds a week of apples,” says Tony Freytag, the company’s senior vice president for sales and marketing, and one of its founders. “On a national basis for all sliced apples (including those sold through fast-food chains), the total value is probably close to $500 million. That’s almost half Straw Power Ag Energy Products converts farm waste into sustainable energy, and it does it without competing with food sources or jeopardizing the future generation’s needs. The Spokane company accomplishes this through its product known as the Renewable Electrical System, which uses a thermo conversion process that breaks down organic material into a combustible fuel called SYNGAS. It is similar to natural gas and can drive a commercial generator. Source: AEP-LLC.com Washington leads the nation in the harvesting of several fruits, including raspberries. b u si n e ssc l i m a t e . c o m / was h i n g t o n 39
    • Washington is: #1 in the harvest of apples, sweet cherries, pears, concord grapes, red raspberries, carrots for processing, hops, spearmint and peppermint oil, wrinkled seed peas #2 J e ffr e y S . OTTO in the production of apricots, asparagus, grapes, potatoes, green peas and corn for processing, onions, nectarines #2 in the export of seafood #2 #9 largest grower of crops in the United States Clockwise from top: Washington’s apple industry is responsible for 60 percent of the apple production in the U.S.; More pears are harvested in Washington than in any other state.; Darigold of Seattle is the largest dairy processor/cooperative in Washington.; Crunch Pak is the world’s top supplier of fresh sliced apples. a billion dollars that didn’t exist 10 years ago.” Crunch Pak has evolved from that first sliced apple to include several variations of product and packaging. The company also offers party trays, apples and carrots packaged with dipping sauces, and multipacks. “Product development is very, very important,” Freytag says. Other strong economic influences from Washington’s agriculture and food industry include the Pacific Seafood Processors Association, a trade association whose members include several major seafood processing companies with operations in the state. Seattle-based National Frozen Foods began operations in 1912 canning strawberries, began freezing vegetables in the 1930s and, 100 years later, is now 40 C h o o s e W as h i n g t o n Photo Courtesy of darigold #3 in the export of food and agriculture products P h o t o C o u r t e s y o f cr u n ch pa k in the diversity of crops grown (over 300 crops) among the largest private-label frozen vegetable processors in the nation. The company processes more than 400 million pounds of frozen vegetables each year. It also procures high-quality fruits and vegetables from around the world through its wholly owned subsidiary, Rainier Food Products. milk and more Dairy foods make up the second-largest agricultural commodity produced in Washington, with a direct economic impact valued at $948 million. Darigold of Seattle plays a large role in that. “As the largest dairy processor/ cooperative in the state, we provide a secure market to over 350 dairy farms in the state and their employees,” says John E. Wells, Darigold’s senior vice president and CFO.
    • Exported from Washington Washington is the nation’s third-largest exporter of food and agriculture, with about two-thirds of the state’s agriculture products going to Asia. Japan, Canada, China, Taiwan and the Philippines are the top five markets for Washington agricultural exports. The Evergreen State exported more than $6.1 billion worth of agricultural and food products in 2010. Leading products include fresh fruit and vegetables, wheat, seafood, processed foods, meat, dairy products, wine and hops. Source: USDA b u si n e ssc l i m a t e . c o m / was h i n g t o n 41
    • Clockwise from top left: Visitors enjoy wine at Chateau Ste. Michelle, a winery located on 105 acres in Woodinville.; A variety of red and white wines are for sale in the shop at Chateau Ste. Michelle.; Visitors participate in a wine tasting in Chateau Ste. Michelle’s tasting room.; Aging barrels are stacked at Chateau Ste. Michelle.; The tasting room at Chateau Ste. Michelle enables guests to try a broad selection of wines and often includes a lesson in food pairing. 42 C h o o s e W as h i n g t o n
    • Buy the Bottle Washington wineries create vintage industry Uncork a bottle and raise a glass – Washington state deserves a toast for its thriving wine sector. Home to more than 740 wineries and some 350 vineyards, Washington is the second-largest wine producer in the United States. The industry brings in more than $8.6 billion annually and is responsible for more than 27,000 jobs in the state. Since 2005, Washington has increased its vineyards by more than 43 percent to above 43,000 acres today. While Eastern Washington grows the majority of the state’s grapes, wineries are a statewide business. “The wine industry really crosses the entire state,” says Ryan Pennington, communications director for the Washington State Wine Commission. “Chateau Ste. Michelle in Woodinville is known as the founding winery, and now the entire region of Walla Walla has become a premier wine destination with more than 100 wineries.” Located near Seattle, Chateau Ste. Michelle spans 105 acres and features two wineries focusing on white and red wines, respectively. “I love making wine in Washington because of the fascinating, unique grape-growing conditions and the pioneering spirit of our amazing growers,” says Bob Bertheau, head winemaker for Chateau Ste. Michelle. The state’s wide variety of wineries is also positively impacting area tourism. More than 2.4 million visitors head to Washington’s wineries and vineyards each year, generating an economic impact of $1.1 billion. The state supports the industry in other ways In the heart of winemaking country, the Tri-Cities Research District received $5 million for the Wine Science Center in Richland to promote research and education. The Tri-Cities district is part of the state’s Innovation Partnership Zones program. “The industry has seen truly phenomenal growth, especially over the last five to 10 years,” Pennington says. – Jessica Walker b u si n e ssc l i m a t e . c o m / was h i n g t o n 43
    • Outside Influences Outdoor attractions are numerous – and spectacular – in Washington state Mount Rainier, the highest mountain in the state of Washington, rises above a lake just outside of Mount Rainier National Park. 44 C h o o s e W as h i n g t o n
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    • Story by Kevin Litwin Photography by Jeff Adkins W ashington state has a rain forest? It certainly does, and the Evergreen State has numerous other natural and outdoor recreational offerings that provide a distinct quality of life. Ample opportunities await from one end of the state to the other for biking, boating, canoeing, climbing, fishing, golfing and horseback riding. Winter sports enthusiasts can cross country ski, downhill ski and snowshoe. For those who enjoy a rougher track, there are wheeled adventure options, both on- and off-road, pedal-powered or motor-driven. Amazing Attractions Washington’s varied climate has everything from deserts and alpine meadows to wetland estuaries and gorges. Some of the incredible natural attractions include Snoqualmie Falls, the Olympic Rain Forest, The Enchantments and Alpine Lakes Wilderness, while the Columbia River Gorge is unique in the Northwest landscape because it was carved by Ice Age floods 1,200 feet deep. Water Residents and visitors alike love the water, and across Washington there are multiple ways to enjoy it. The state has the highest per capita boat ownership in the country, thanks to its lakes, rivers and the Pacific coastline. In fact, taking into account the Pacific Coast of Washington and the state’s extensive tidal waterways and island perimeters, there are more than 3,000 miles of coastline for water sports such as scuba diving, surfing, swimming, water skiing and windsurfing. Clockwise from top left: Ferries move passengers and cars between the San Juan Islands along the coast of Washington;. Mount St. Helens is the only active volcano in the contiguous United States.; Washington’s Olympic National Park is home to the only rain forest in the contiguous United States.; Boats are docked near Friday Harbor, a town on San Juan Island and a top vacation destination. b u si n e ssc l i m a t e . c o m / was h i n g t o n 47
    • P h o t o C o u r t e s y o f O ly mp i c N at i o n a l Pa r k Clockwise from top left: The sky is reflected off the water from a creek running into the Pacific Ocean at Ruby Beach, which is part of Olympic National Park.; Olympic National Park spans nearly 1 million acres.; Visitors walk along the trail between observation decks at Snoqualmie Falls.; Boaters enjoy warm weather as they sail in the Columbia River in Vancouver with Mount Hood in the background. 48 C h o o s e W as h i n g t o n
    • Water pours over the top of Snoqualmie Falls, located on the Snoqualmie River between Snoqualmie and Fall City. Most water adventurers know about the Columbia River, but other top waterway destinations include Deception Pass, Haro Straits, San Juan Channel, Sauk River, Snake River and White Salmon River. The upper sections of the White Salmon are part of the National Wild and Scenic River system, and it has several tributaries that include Trout Lake as well as Buck, Dry, Gilmer, Mill and Rattlesnake creeks. Mountains Washington’s famed mountains, including the Olympics and Cascades, have year-round opportunities for recreation ranging from hiking and snowshoeing to cross country and downhill skiing. Washington also has Mount St. Helens, which is slowly recovering from its 1980 volcanic blast that turned one of the Cascades’ most beautiful peaks into a scarred landscape of fallen trees and fields of ash. It remains the only active volcano in the contiguous United States. Several visitor centers portray the events of the 1980 eruption and what has happened since. Parks Washington has three of the most beautiful national parks in the country – North Cascades, Mount Rainier and Olympic – along with more than 100 state parks and numerous wildlife preserves, wilderness areas, recreation areas and greenbelts. The 13 national parks in the state drew more than 7.3 million visitors in 2011. North Cascades comprises one national park and two national recreation areas, and this rugged and remote region is among the state’s least explored – including the North Cascades Scenic Highway, which offers incredible views on clear days. Olympic National Park has the only rain forest in the contiguous United States, with living plants growing in every square inch of space, and highlighted by miles of fog-shrouded beaches and lush alpine scenery. Mount Rainier National Park features glaciers and is Washington’s favorite mountain, with Sunrise and Paradise being the two best vantage points for viewing the massive bulk of Mount Rainier. The state is also graced with San Juan Islands National Historical Park, with forested mountains rising up from the cold waters north of Puget Sound to serve as a perfect setting for bald eagles, salmon, orca whales and more than 200 species of migratory birds. The San Juans are Washington’s top summer vacation spot. Ample Parking 13 National parks in Washington state, drawing more than 7.3 million visitors in 2011 3,000 Miles of coastline in Washington state, including Pacific coastline, tidal waterways and island perimeters 100+ State parks, wildlife preserves and wilderness areas in Washington 14,411 Elevation in feet of Mount Rainier, the largest singlepeak glacier system in the continental United States b u si n e ssc l i m a t e . c o m / was h i n g t o n 49
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    • Discovery Zone Washington state is a global health and life sciences mecca Story by Melanie Kilgore-Hill Photography by Jeff Adkins F says. “Industry nonprofits and academic research institutes are all willing to sit at the table simultaneously to advance research and discovery.” New Meaning to Life Sciences Life sciences-related employment in Washington state Biotech and Biomed Booster Chris Rivera, Washington Biotechnology & Biomedical Association (WBBA) president, says the state’s life science industry meshes with its record of entrepreneurship and innovation. “Washington is emerging as the nexus for global health,” Rivera says. “Outside Geneva, Switzerland, Washington has the largest life sciences concentration in the world.” The WBBA supports the state’s $10.4 billion life science industry by promoting access to capital, partnerships, recruitment and commercialization. Advocacy also is provided on regional, state and federal levels. “Washington is a headquarters for information research, innovation and what is often called co-opetition,” Rivera Medical Innovation in Washington In 2012, global health-care company Novo Nordisk brought its North American Type 1 Diabetes Research Institute to Washington. And Seattle Genetics recently received FDA approval on a cancer drug for the treatment of non-Hodgkin’s lymphoma. In fact, three of the 21 drugs approved by the FDA in 2011 were discovered in the state. More than 190 nonprofit organizations in the state are involved in global health through service delivery, research, training, education and public awareness including the Bill & Melinda Gates Foundation, the world’s largest foundation. Seattle-based PATH is an international nonprofit transforming global health through innovation. Its $280 million budget helps deliver high-impact, low-cost solutions, from lifesaving vaccines and devices to collaborative programs with communities in 70 countries in Asia, Africa, Europe, Latin America and North America. The organization’s entrepreneurial approach touches on all aspects of health care, from epidemic diseases to medical technologies rom lab research to medical device manufacturing, Washington state is a life sciences heavyweight. More than 175 biopharmaceutical companies, 250 med techs and 36 nonprofit life science research organizations call the Evergreen State home. The state that pioneered ultrasound imaging and cardiac defibrillators also boasts medical schools and universities that draw billions in research funding. 26,300 $904.8 million Value of National Institutes of Health grants to Washington-based life sciences organizations 480 Life sciences companies in Washington state $1.4 billion Value of medical device and pharmaceutical exports from Washington A researcher uses a microscope to inspect a slide at the University of Washington School of Medicine’s newly expanded, 542,000-square-foot biotechnology and medical research hub in Seattle. b u si n e ssc l i m a t e . c o m / was h i n g t o n 51
    • Lab Partners legislature to foster growth of Washington’s life sciences sector. With a commitment for $350 million over a 10-year period, LSDF invests money from the Master Tobacco Settlement Agreement in research that demonstrates the strongest potential for delivering health and economic returns to the state. In July 2012, for example, LSDF announced $570,000 in awards as part of a new corporate grant program to support commercialization of new health and health-care products. The early-stage companies receiving the awards are developing and testing concepts that range from a technology for predicting patient responses to anticancer drugs to a new approach for removing blood clots from the brain for a specific type of stroke to an ultrasound- P h o t o C o u r t e s y o f n o v o n o rd i s k Washington supports industry cluster development and building regional economies through its Innovation Partnership Zone program. An example of the program is in Bothell, where a biomedical manufacturing Innovation Partnership Zone spotlights the industry and improves access to capital, improves the workforce pipeline and encourages collaboration. In 2012, the Washington State Legislature awarded the Bothell IPZ $500,000 to help design an incubator space for companies developing biomedical devices. to women and children’s health. And while Seattle is a global health-care hub, innovation is emerging from Spokane to the Tri-Cities region. Kennewick-based Cadwell Laboratories develops and manufactures neuromonitoring and diagnostic instrumentation used in the diagnosis of neurological, musculoskeletal and sleep disorders. Supporting life sciences and global health development in Washington are a number of specialized incentive and funding programs. The state, for example, offers a sales and use tax waiver/ deferral program for biotechnology and medical device manufacturers. The state also promotes life sciences innovation through programs such as The Life Sciences Discovery Fund (LSDF), created in 2005 by the governor and state From left: Next Generation FlexPen® by Novo Nordisk is a pre-filled insulin delivery device, eliminating the step of loading insulin into the delivery system.; Researchers work in the laboratory at the University of Washington School of Medicine’s facility in Seattle.; Researchers develop antibody-based therapies in the Seattle Genetics lab, located in Bothell. 52 C h o o s e W as h i n g t o n
    • guided system for placing catheters in the brain to drain excess cerebrospinal fluid. Well Schooled Washington’s life sciences and health research capabilities are vast and deep. From renowned universities to specialty institutes, some of the world’s most innovative advances and medical breakthroughs were born in the state’s labs. Microsoft co-founder and philanthropist Paul Allen provided seed money to found the Seattlebased Allen Institute for Brain Science, where leading minds in biology and technology collaborate on new ways of understanding the human brain. The 63,000-squarefoot, state-of-the-art lab includes robotic systems, automated digital imaging stations and a vast data center with astounding processing capabilities. The Infectious Disease Research Institute in Seattle develops advanced products for the diagnosis, prevention and treatment of diseases that are endemic in impoverished areas. At Seattle’s Benaroya Research Institute at Virginia Mason, a team of 220 researchers is dedicated to finding causes and cures to eliminate autoimmune diseases including Type 1 diabetes, arthritis, lupus, multiple sclerosis and scleroderma. BRI’s $40 million in research volume in 2012 includes grants from the National Institutes of Health, National Science Foundation and Department of Defense, as well as major regional and national foundations. The University of Washington plays a lead role in furthering research within the state. As the second-largest biomedical research university in the country, the University of Washington School of Medicine unites academic and private researchers from across the state’s life sciences continuum. In fact, a third of UW Medicine’s $3.8 billion budget goes toward research. “We approach research in an interdisciplinary fashion,” says Dr. Paul Ramsey, CEO of UW Medicine and dean of the UW School of Medicine. “We receive $40 million and $50 million grants that depend on individuals from different areas working together to address major problems in health care.” UW Medicine is the only U.S. medical school to cross state lines as a publicly supported medical school. Known as WWAMI, the program represents a unique partnership between Washington, Wyoming, Alaska, Montana and Idaho, receiving funding from all five states and providing one of the most cost-effective programs nationwide. US News & World Report has ranked the program No. 1 in the nation for primary care training for 18 years running. “We’ve worked together to develop the highest quality product at the best cost,” Ramsey says. “We’re a leader in the life sciences research arena and the education of the next generation of health-care professionals.” P h o t o C o u r t e s y o f s e at t l e g e n e t i cs R&D Tax Credit The state’s high-tech companies may be able to claim a Business & Occupation tax credit for research activities. Businesses that may qualify include those involved in advanced computing, advanced materials, biotechnology, electronic device technology and environmental technology. See the Washington State Department of revenue at http://dor.wa.gov for more. b u si n e ssc l i m a t e . c o m / was h i n g t o n 53
    • Where the Wind Grows Washington is highly ranked among U.S. states in installed wind generation capacity. Source: American Wind Energy Association 54 C h o o s e W as h i n g t o n
    • Clean and Green Diverse portfolio makes state a clean tech powerhouse Story by Pamela Coyle • Photography by Jeff Adkins A lready a recognized leader in wind, solar and hydropower, Washington state is making waves in other clean tech areas with immense potential impact. The state also is at the epicenter of advancements in building design and retrofitting, smart grid research and applications, and biofuels and biomass projects. Together, four core green areas – energy efficiency, renewable energy, pollution reduction, and mitigation and pollution cleanup – account for more than 80,000 direct jobs in renewable energy, a growing sector that has diversified Washington’s economy. An aggressive renewable energy portfolio standard that requires 15 percent of new electricity generated by 2020 to come from renewable energy sources, such as wind, tidal, biofuel, biomass and solar, helps drive investment and innovation, says Tom Rankin, CEO of the Washington Clean Technology Alliance, a trade organization with more than 100 member companies. Powerful Collaboration As of June 2012, Washington ranked sixth among states in installed wind generation capacity, with 2,699 megawatts, according to the American Wind Energy Association. The pace is picking up, and the state ranked fourth in new wind installations in the first quarter of 2012, with 126.5 additional megawatts online. Economic incentives; special innovation zones that partner private, public and academic interests; a highly educated workforce; a skilled labor pool; plus standout universities and high-profile research institutions, such as Pacific Northwest National Laboratory (PNNL) Wild Horse Wind and Solar Facility, located in Ellensburg, includes 149 turbines that cover approximately 10,000 acres and can generate up to 273 megawatts of electricity. b u si n e ssc l i m a t e . c o m / was h i n g t o n 55
    • At Silicon Energy in Marysville, employees assemble photovoltaic panels that are glass-on-glass and known for their durability. According to a test administered by the National Renewable Energy Lab, Silicon Energy’s solar panels are built to last for 80 years. in Richland, give the efforts extra horsepower. “The combined interest in collaborations in Washington state is one thing that really is unique,” Rankin says. Clean Energy Innovation At PNNL in Richland, worldclass researchers work on new clean technology on a daily basis in areas including next-generation batteries for electric vehicles, grid-scale energy storage systems, and bio-based alternatives for chemical and fuels production. Some of these innovations have already made their way to market, licensed by industry partners that can translate the scientific advancements they represent into tangible impact in the clean-tech sector. Others are close behind. In the past few years alone, several breakthrough clean technologies have emerged from PNNL with potential to make a national – if not an international – difference in the way energy and related resources are created, used, stored and protected. Some examples: • A new approach to vanadium redox flow battery chemistry that represents the first opportunity in this promising energy storage category for commercial viability at grid scale—an important advancement toward our nation’s goal to cost-effectively integrate renewables into our everyday energy mix. • A technology that generates enough energy from ambient air temperature differences to cleanly power devices such as sensors that monitor industrial equipment or critical structures in remote locations. Innovation Partnership Zones IPZs promote collaboration through a research-based effort aimed at new technologies, marketable products, company formation and job creation. The program partners research, workforce training and private sector participants in geographic proximity. IPZs cover clusters that include green IT, medical devices, clean marine transportation, alternative energies, semiconductor and display, viticulture, aerospace and more. There are 15 IPZs with clusters in Auburn, Grays Harbor, Tri-Cities and Walla Walla, and Kings, Clallam and Snohomish counties. b u si n e ssc l i m a t e . c o m / was h i n g t o n 57
    • Washington’s Clean Tech and Energy Economy A Demand Energy Networks employee tests a Joule.System, which is an electricity storage system, in the Liberty Lake area. 83,676 “Clean” tech jobs in the state 10 Rank of state’s clean economy among the 50 states and Washington, D.C. 7 Rank in percent of all jobs in the state tied to clean economy, with 2.8 percent of total jobs 14,570 New clean tech jobs created between 2003 and 2010 195 Clean technology patents, 1999-2008 • A tiny chip embedded in appliances that senses peaks and valleys in grid frequency, signaling momentary pauses in operation – or a controller that similarly regulates electric vehicle charging – to help alleviate grid stress while reducing consumer costs. At the Bioproducts, Sciences, and Engineering Laboratory at Washington State University’s Tri-Cities campus, PNNL researchers are also identifying renewable alternatives for a variety of traditionally petroleum-based processes, including catalysts that convert biomass into commodity chemicals, and production of drop-in jet fuels, among other applications. And these are just the tip of the iceberg. Powering New Discoveries An array of companies contributes to Washington’s clean energy sector. Silicon Energy in Marysville makes a solar panel that will perform for 80 years, according to recent testing by the National Renewable Energy Lab. The five-year-old company has grown from eight to 25 employees, says President Gary Shaver. Silicon Energy’s photovoltaic panel is glass-onglass, using a unique encapsulation process that creates a strong, durable product, he says. 58 C h o o s e W as h i n g t o n “Washington state has a progressive program that stimulates local economic development, plus incentives for clean energy generation,” Shaver says. “We answered the call.” So did Demand Energy Networks, a company based in Liberty Lake that has commercialized a proprietary electrical storage technology. The technology, already in use in the United States and China, incorporates three components: the physical storage medium, battery chemistries plus conversion, and software and control systems that manage the process. “The goal is to capture off-peak energy and store it and shift it back,” says Dave Curry, Demand Energy CEO. “When you combine it with new sources of generation, energy storage becomes a very compelling technology to introduce into the grid.” Building Better Buildings Washington’s growing stature as a hub for making buildings more efficient is another area experiencing major growth. Seattle-based McKinstry is an industry leader that’s grown to more than 1,600 employees. Half of its more than $500 million revenue in 2012 will be tied to energy-related building, says David Allen, the company’s executive vice president.
    • “In 2002, we did $130 million with almost no work in energy,” Allen says. A full-service design, build, operate and maintain firm, McKinstry provides consulting, construction, energy and facility services for public and private projects, including school districts and college systems, in more than a dozen states such as Alabama, Colorado, Idaho and West Virginia. In new construction and retrofits, the company uses biomass boilers, more efficient equipment, gray water systems, smart climate control, recycling, integration software and other available technologies that help McKinstry reduce its carbon footprint. Allen uses four numbers to make the case for better building efficiency by removing waste from the equation: 82 billion square feet of nonresidential buildings in the United States consume 70 percent or more of the country’s electric power and produce at least 40 percent of the carbon emissions. Fifty percent of the energy used is wasted or on the table to save, he says. “We need to go down the conservation path hard, heavy and fast. That is where the biggest, fastest opportunity is,” Allen says. “We have the technologies right now, with huge savings not waiting for the future to take over.” Washington isn’t waiting, but it also has all the components in place for a powerful and unpredictable factor – serendipity. “In 1910, who would have predicted aerospace would be the state’s economic driver for the next 100 years? No one,” Rankin says. “Anywhere you can flip a light switch you have the potential for someone to come up with an idea that changes the world.” Building Green The Washington State Green Building legislation makes it the first state in the country to adopt high-performance green building standards for state-funded buildings. New and renovated buildings must follow the Green Building Council’s Leadership in Energy and Environmental Design (LEED) Silver Standard, which rates sustainable sites, water efficiency, energy and atmosphere, materials and resources, and indoor environmental quality. The process involves rigorous third-party review. LEED scores increase through four levels of recognition: Certified, Silver, Gold and Platinum. Port of Walla Walla – Wallula Gap Industrial Park A unique industrial site in the Pacific Northwest. Ideally suited for industrial businesses needing a large parcel, access to substantial water resources, and low-cost electrical power and utilities. • Home to 1,900-acre mega site • Zoned heavy and mixed industrial • 4,700-acre-foot per year water right • Two low-cost electrical power suppliers to compete for your business • TransCanada natural gas pipeline with available excess capacity near the site • Easy access on and off four-lane US Highway 12 • Formal site due diligence completed including survey maps, utility information, archaeological, geotechnical, biological and environmental • 20 minutes from Tri-Cities Washington Site is near the Boise White Paper Pulp and Paper Mill, Tyson Fresh Meats Processing Facility and the Railex USA Produce Distribution Center. These businesses were successfully recruited by the Port of Walla Walla’s proactive approach to economic development. www.portwallawalla.com 310 A St. • Walla Walla, WA 99362 • (509) 525-3100
    • Locate and Prosper at Blue Mountain Station • World’s First Natural and Organic Food Processing Park • Adjacent to Walla Walla Wine Country and Leading Organic Crop Producers • Certified Kitchen On Site • LEED Certified Small-Processor Facility Lease Rates Start at $.50/Square Foot • Build-Your-Own Lots for Sale or Lease For more information: www.bluemountainstation.com • 509-382-2577 visit our advertisers City of Edmonds www.edmondswa.gov/visiting.html City of Lynnwood www.ci.lynnwood.wa.us City of Tacoma www.cityoftacoma.org Economic Alliance Snohomish County www.economicalliancesc.org Economic Development Association of Skagit County www.skagit.org Grant County Economic Development Council www.grantedc.com Greater Grays Harbor Inc. www.graysharbor.org Jefferson County Chamber of Commerce www.jeffcountychamber.org Kittitas County Chamber of Commerce www.kittitascountychamber.com Olympic Composites Corridor www.olympiccomposites.org Pacific County Economic Development Council www.pacificedc.org Pacific Northwest National Lab www.pnnl.gov Paine Field Airport www.painefield.com 60 C h o o s e W as h i n g t o n Port of Bellingham www.portofbellingham.com Port of Bremerton www.portofbremerton.org Port of Chelan & Douglas County www.portofchelancounty.com Port of Clarkston www.portofclarkston.com Port of Columbia www.portofcolumbia.org Port of Everett www.portofeverett.com Port of Garfield www.portofgarfield.com Port of Kalama www.portofkalama.com Port of Longview www.portoflongview.com Port of Quincy www.portofquincy.org Port of Seattle www.portseattle.org Port of Skagit www.portofskagit.com Port of Sunnyside www.portofsunnyside.com Port of Tacoma www.portoftacoma.com Port of Vancouver USA www.portvanusa.com Port of Walla Walla www.portwallawalla.com Port of Whitman County www.portwhitman.com Puget Sound Energy www.pse.com/foryourbusiness Southeast Washington Economic Development Association www.seweda.org Spokane International Airport www.spokaneairports.net Thurston County Economic Development Council www.thurstonedc.com Tri-Cities Washington – Tri-City Development Council www.tridec.org Washington State Department of Agriculture www.agr.wa.gov Washington State Department of Commerce www.commerce.wa.gov Washington State University www.wsu.edu
    • Power Player Columbia River keeps Washington’s electric supply flowing One of Washington state’s key advantages is the availability and cost of power. The state has developed a reputation for capitalizing on energy efficiency opportunities to extend supplies and keep prices competitive, and both private and public utilities provide power to residential and commercial customers. The state’s generating capacity is powered by the Columbia River, making Washington the national leader in hydroelectric production. Hydropower accounts for nearly 75 percent of electricity generation and is a major draw for manufacturing and operations such as data centers that require large volumes of power. The average electric cost per kilowatt hour for industrial users in Washington is 4.07 cents, according to the U.S. Energy Information Administration, lower than Oregon and California, and well below the U.S. average of 6.77 cents per kilowatt hour. The federally operated Grand Coulee hydroelectric complex on the Columbia River, built between 1933 and 1942, is the highest capacity electric plant in the United States, producing 21 billion kilowatt hours of electricity every year. Power from the Grand Coulee provides the cheapest electricity to those in the region. The average price of industrial electricity in Washington is 4.07 cents per kilowatt hour. Thanks to legislation passed in 2006, Washington has also committed that 15 percent of new electricity generation will be produced through renewable energy sources such as wind, tidal, biofuel, biomass and solar sources. b u si n e ssc l i m a t e . c o m / was h i n g t o n 61
    • Technology Technical Mastery From software to gaming, cloud services to RFID, Washington is in the lead Story by Pamela Coyle Photography by Jeff Adkins M ove over, Silicon Valley. Washington state is a fusion reactor of information and communications technology, job creation and innovation that has earned global clout. The state’s vibrant technology economy is broad, as well as deep. Big name pioneers such as Microsoft, Amazon.com and RealNetworks laid a foundation for technology sector diversity that now encompasses cloud computing, e-commerce, software publishing, social media, telecommunications, mobile services and applications, network systems and health-care IT. Game development alone is an estimated $10 billion annual industry. Washington also is a recognized leader in Radio Frequency Identification, or RFID. Big players, including Intel, Oracle, Adobe and Google, have established engineering centers in the state, with Twitter, Facebook and Zynga more recent additions. “Our biggest asset is our talent pool, and Washington has a wonderful base of very talented technical people,” says Susannah Malarkey, executive director of Technology Alliance, an umbrella and advocacy group. “There is a reason why many companies from Silicon Valley are setting up engineering centers here.” Washington Ranks Washington ranked second on the Kaufmann New Economy Index in 2010, which evaluated states on such factors as knowledge jobs and transformation to a digital economy. The 2011 Milken Institute state index ranked Washington fourth on the tech and science workforce indicator and third on the technology concentration and dynamism index. In May 2012, Forbes magazine listed SeattleTacoma-Bellevue as tops in the country for tech job growth, ahead of Silicon Valley. The number of high-tech jobs mushroomed 43 percent since 2000 and grew 12 percent since 2010, according to a ranking system Forbes developed with the Praxis Strategy Group. Numbers only help tell the story. Tech-based industries employ more than 434,000 people in Washington, according washington’s tech impact 434,343 Direct technology jobs in Washington 1.4 million Total jobs supported by tech-based industries 45 percent Percentage of Washington’s salary and self-employed jobs tied to tech industries $86 billion Labor income from direct and indirect tech jobs 50,000+ Software engineers in Washington Source: technologyalliance.com b u si n e ssc l i m a t e . c o m / was h i n g t o n 63
    • From left: Software developers program the new Pirates of the Burning Sea multiplayer online role-playing game at Flying Lab Software, which is situated in downtown Seattle.; Russell Williams serves as the CEO of Flying Lab Software and founded the company in 1997. to a May 2012 report prepared for the Technology Alliance by the University of Washington. Excluding aerospace, the state’s concentration of technology-based industry is 31 percent above the national average, up from 20 percent in 2009, the study found. Tech jobs also have significant ripple effects – each direct job supports another 3.32 jobs in Washington, significantly higher than jobs in other sectors. Marquee names, such as Amazon, get lots of ink, but niche companies are making their mark, too, and are transforming other industries with technology they develop. Impinj Inc. is just one example. Founded in 2000, the company designs and manufactures radio frequency identifiers that have broad applications in retail, product manufacturing, consumer 64 C h o o s e W as h i n g t o n electronics, race timing and soon, livestock tracking. Impinj and its founders, Carver Mead and Chris Diorio – out of CalTech and the University of Washington, respectively – helped develop the open global standard for RFID technology and the company now holds more than 100 patents. With about 130 employees, the company typically makes entry-level hires from local institutions of higher education. “Washington state is highly educated, and the University of Washington, as well as other educational institutions, graduate very highly qualified candidates in engineering and RFID,” says Karina Miller, senior director of human resources at Impinj. “The quality of life here is so amazing that we also are able to recruit candidates from all over the world.” Going Mobile Glympse, a mobile app developer, started with three people and now has 14. The Glympse app allows users to send a link to friends and family members who can track realtime movement. The user specifies the length of the “glympse,” and no network membership like Facebook or FourSquare is involved. CEO Bryan Trussel says spouses send “glympses” when they leave the office for home, parents use them to pick up their children and business people use them to locate each other before meetings. Plane support is expected to be available by the end of 2012. “People will use this for a very specific scenario, but when they start using it deeper and deeper, it becomes part of their lifestyle,” Trussel says.
    • A former Microsoft team leader, Trussel launched Glympse in 2008 in Seattle. “I liked the dynamic better for hiring and technology. It is mostly affordable and has a critical mass of smart people,” he says. “I think we got the best place in the country for what we are doing.” Russell Williams also came out of Microsoft, where he was a program manager for Microsoft Exchange and the Microsoft Golf series. He started Flying Lab Software, the Seattle-based developer of Rails Across America, in 1997. The company’s newest massive multiplayer online roleplaying game is Pirates of the Burning Sea, which was released in 2008. He, too, does a lot of local hiring, including from the Art Institute of Seattle. “The talent pool is so good. We want you to love it,” Williams says. “We invest in people, work with mentoring and build in cross-pollination so people work on different aspects such as textures and 3D modeling. Yes, there is some inefficiency but we get a big bonus in being able to move people around.” That f lexibility is deeply rooted in Washington’s technology economy and is helping other sectors adapt while remaining competitive. “Technology is the fastestgrowing sector in our state by far,” Malarkey says. “People in information technology jobs are transforming other industries as well – in aerospace, computers are f lying planes. With life sciences, the human genome project is technology-driven. Our farmers use more technology than any other state. “You cannot overemphasize the importance of technology as a transformation aspect of the economy,” she says. You Say Potato... Grant County says Data Centers The city of Quincy, Washington, is home to giant data center facilities from major industry players including Microsoft, Intuit, Vantage Data Centers, Yahoo!, Sabey and Dell. Data center facility space tops 2.3 million square feet and is growing. The region is best known for potato farming, but easy access to inexpensive power is growing the data center sector.Commercial power costs are around $0.025 per KW/h, significantly lower than Rocky Mountain Power’s costs, already considered among the lowest in the country. To learn more, visit www.coloandcloud.com.
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    • Transportation Gateway to the World Washington connects U.S., global markets with superior transportation infrastructure Story by Gary Wollenhaupt Photography by Jeff Adkins W ashington state is a hub of global business, sending $64 billion in products to overseas markets in 2011. Among the exports was everything from transportation equipment and food to chemicals and petroleum products. Located equidistant between Europe and Asia, Washington’s geographic advantage and integrated logistics system have positioned it perfectly for its key world business role. Products move in and out of the state via 75 public ports, including river ports, such as the Port of Klickitat on the Columbia River. The state’s water transport system extends 352 river miles inland, with additional port facilities on the mid and upper Columbia River and Snake River. As expected in a state with a major aerospace and aircraft presence, Washington is also a force in the air, with 139 airports including 13 with commercial service. Seattle-Tacoma International Airport is one of the world’s busiest, seeing more than 32 million air travelers and transporting more than 275,000 metric tons of cargo annually. Ships load and unload cargo at the Port of Seattle near the city’s downtown area. b u si n e ssc l i m a t e . c o m / was h i n g t o n 67
    • Primary commercial airports • Bellingham International Airport, Bellingham • King County/ Boeing Field, Seattle • Orcas Island Airport, East Sound • Pangborn Memorial Airport, East Wenatchee • Port of Friday Harbor Airport, San Juan Island • Port of Anacortes Airport, Anacortes • Pullman-Moscow Regional Airport, Pullman • Seattle-Tacoma International Airport, Seattle • Spokane International Airport, Spokane • Tri-Cities Airport, Pasco • Walla Walla Regional Airport, Walla Walla • William R. Fairchild International Airport, Port Angeles • Yakima Air Terminal McAllister Field Airport, Yakima Infrastructure Investment The Port of Tacoma, a rare natural deep-water port, serves as a gateway for international trade for products including container traffic, automobiles, grain and other natural resources. The port, served by two Class I railroads and a short-line carrier, also serves domestic markets in Alaska and Hawaii. As one of the largest container ports in the United States, Tacoma handled 1.5 million containers in 2010. Recently, the Port of Tacoma added five ocean carriers to the roster of services provided at the Travelers walk through the terminal at the Seattle-Tacoma International Airport in Seattle. 68 C h o o s e W as h i n g t o n
    • port. Also, the port is investing in infrastructure to handle the larger vessels that will call after the Panama Canal expansion is finished. In the past few years, the port has completed extensive improvements such as the $24.5 million project that built grade separations in the port’s road system to avoid delays in rail and truck traffic, part of the regional FAST (Freight Action Strategy for the Everett-Seattle-Tacoma Corridor) infrastructure initiative. “We put [a] premium on the partnerships we are able to create, whether that’s with the transportation industry or surrounding communities, and those partnerships allow us to maximize our performance in moving cargo,” says Sean Eagan, Port of Tacoma government affairs director. The Port of Seattle also serves the state and comprises the Seattle-Tacoma International Airport, Shilshole Bay Marina, Bell Harbor Marina and Harbor Island Marina, as well as a variety of conference centers and industrial properties. In addition, the port is responsible for nearly Global Business Efforts Two companies have been recognized for their global business efforts by the World Trade Club. Brown & Haley, a Tacoma-based confectioner that manufactures and markets premium confections, and Enprecis, a Seattle-based company that provides a software-based data collection and analysis product that helps organize data for major automobile manufacturers. Cargo ships move in and out of the Port of Seattle near downtown Seattle. b u si n e ssc l i m a t e . c o m / was h i n g t o n 69
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    • Washington Ports 75 Port districts 11 Deep-draft ports 7 Percent of U.S. exports, along with 6 percent of imports handled in Washington state 3 Rank of the Port of Seattle and Port of Tacoma among U.S. ports for total container load The Port of Seattle comprises the Seattle-Tacoma International Airport, Shilshole Bay Marina, Bell Harbor Marina and Harbor Island Marina, as well as a variety of conference centers and industrial properties. 200,000 jobs in the state that generate more than $6.8 billion in payroll. With as many as one in three jobs related to international trade, Washington is a vibrant place for companies to do business. “The people here understand the connection between us and the rest of the globe,” says Brian Mannelly, Port of Tacoma planning director. Pro-business climate At the Port of Klickitat, Custom Interface Inc., a manufacturer of custom cable and wire harnesses and electromechanical assemblies, is building a new manufacturing and headquarters facility. The new building, located in a HUB or historically underutilized Source: aapa-ports.org business district, will allow the company to consolidate operations from three buildings into one and give them space to add jobs, says Jane Beatty, president. “We literally have no place to put another person now, and we’ll be able to implement far better lean manufacturing that allows us to expand our research and development,” she says. The company looked at sites in other states, but decided to remain in Washington because of the pro-business environment and emphasis on the aerospace industry. “State government is very interested in growing the aerospace industry, and that’s certainly an area that we do well in, and want to continue to grow in,” Beatty says. North American Port Container Activity, 2011 by Twenty-Foot Equivalent Unit (TEU) 1. Los Angeles: 7.94 million 2. Long Beach: 6.01 million 3. New York and New Jersey: 5.5 million 4. Savannah: 2.94 million 5. Metro Vancouver, Canada: 2.5 million 6. Oakland: 2.34 million 7. Seattle: 2.03 million 8. Hampton Roads: 1.92 million 9. Houston: 1.87 million 10. Manzanilla, Mexico: 1.51 million 11. Tacoma: 1.49 million 12. San Juan: 1.48 million b u si n e ssc l i m a t e . c o m / was h i n g t o n 71
    • Linked In Grays Harbor goes big with world-class transportation connections As the closest West Coast port to Asia, Grays Harbor is the second-largest export destination for American-made automobiles on the coast, and a major export hub for soybean meal and grains grown in the Midwest. In 2011, the 100-year-old port was named Port of the Year by the Washington Public Port Association. Grays Harbor, the only deep-water Washington port directly on the Pacific Ocean, reinvented itself after timber industry and manufacturing exports fell off. “We’re still resource- and manufacturing-based; we’re just manufacturing different kinds of things and finding new processes and markets,” says Callie White, communications director, Greater Grays Harbor Inc. A diverse industrial base, including Imperium Grays Harbor, a biofuel manufacturer, and PanelTech, a company that makes kitchen countertops from recycled paper, calls Grays Harbor home. Pasha Automotive Services processes vehicles for export, shipping more than 37,000 new vehicles and 70,000 metric tons of heavy equipment. The port is served by the only fourlane highway north of San Francisco and two Class I rail carriers, Burlington Northern Santa Fe and Union Pacific, which give companies competitive rates for rail service. The harbor offers direct rail service to the marine complex, reducing costs for moving cargo between ships and trains. The port recently added 37,000 feet of rail to the marine terminal complex. – Gary Wollenhaupt b u si n e ssc l i m a t e . c o m / was h i n g t o n 73
    • Education & Workforce The Smart Approach State’s higher education system feeds a deep pool of skilled workers Story by Kevin Litwin Photography by Jeff Adkins A s a center of innovation across industries as diverse as advanced manufacturing, aerospace, medical devices and communications technology, Washington state has built a deep bench of highly skilled and highly educated workers. Nearly nine in 10 Washington adults over 25 have a high school degree, the highest concentration of any Western state, and the state ranks sixth among all U.S. states. More than 40 percent of adults have a bachelor’s degree, 12th among the states. Its two major public research institutions and roster of public and private colleges and universities confer more than 30,000 bachelor’s degrees and 12,000 advanced degrees each year. Washington’s 34 community and technical colleges have a total enrollment of more than 270,000 students and form a backbone of training and workforce development efforts in the state. Those colleges are involved in a number of innovative programs that improve the skills of the workforce and help meet industry needs. Students walk across the campus of the University of Washington in Seattle. b u si n e ssc l i m a t e . c o m / was h i n g t o n 75
    • Who Goes to College After High School in Washington? 64% High school graduates enrolled in college within one year of graduation (2009) 33% Those who attend community or technical college 23% Public four-year institutions 8% Private institutions 23% of Washington college students earn bachelor’s degrees annually, compared to the national average of 16 percent. Source: Washington Higher Education Coordinating Board Students walk out of the Suzzallo Library at the University of Washington in Seattle. Air Washington is one such program. Based at Spokane Community College, the $20 million program brings together 11 community and technical colleges whose goal is to ultimately educate 2,615 students for careers in the state’s vast and growing aerospace industry. Twenty-five percent of those students are armed forces veterans. Students are being trained in the hands-on part of aerospace to eventually begin careers in fields such as airport power plant maintenance, avionics electronics, advanced manufacturing composites and aircraft assembly. “Another aspect of the program is to provide training for existing businesses to eventually earn AS 9100 certification, a top-quality measurement,” says Rod Taylor, Spokane Community College associate dean for technical education. “Big aerospace companies 76 C h o o s e W as h i n g t o n like Boeing won’t look at supplier companies today unless they are AS 9100 certified, so this Air Washington initiative is actually training students, as well as entire businesses,” he says. Worker Retraining Air Washington is one of many initiatives to prepare the state’s workforce for careers of the present and future. Jim Crabbe, director of workforce education for the Washington State Board for Community & Technical Colleges, says more than $85 million in state and federal programming is currently earmarked for workforce education. “Our largest program is Worker Retraining, for workers who have lost their jobs or are looking to upgrade their careers,” Crabbe says. “In 2011, 20,000
    • Washington College/ University Enrollment Figures 270,573 Students attending public community and technical colleges (fall 2010) 94,118 P h o t o C o u r t e s y o f wa l l a wa l l a c o mm u n i t y c o l l eg e Public undergraduate students 21,975 Public graduate/ professional 51,740 Private undergraduate Walla Walla Community College has been training wind turbine technicians since August 2010 through the school’s Wind Energy Technology program. The program lasts for two years and includes hands-on courses. Source: Washington Higher Education Coordinating Board Pullman Innovation Partnership Zone – Catalyzing Innovative Business Development • • • • • • Business advisor/mentor partnering programs Tech transfer assistance Community leadership synergy Virtual residency First office program Space to grow Port of Whitman County 800-535-7678 port@portwhitman.com www.portwhitman.com b u si n e ssc l i m a t e . c o m / was h i n g t o n 77
    • Degrees and Certificates Conferred in 2009-10 Public universities in Washington • Central Washington University www.cwu.edu • Eastern Washington University www.ewu.edu • University of Washington www.washington.edu • University of Washington Bothell www.bothell.washington.edu • University of Washington Tacoma www.tacoma.washington.edu 28,812 Public community and technical colleges 22,278 Public bachelor’s • Washington State University www.wsu.edu • Washington State University Tri-Cities www.tricity.wsu.edu • Washington State University Vancouver www.vancouver.wsu.edu • Western Washington University www.wwu.edu 5,138 Public master’s students completed the Worker Retraining program, with more than 90 percent of them getting new jobs.” The Washington State Board for Community & Technical Colleges works closely with the state’s Workforce Training & Education Coordinating Board, which is made up of representatives of business, labor and government who work on employment development strategies. Crabbe says courses are constantly being evaluated and new ones added at community and technical colleges to better reflect in-demand future careers. “From 2009 through 2011, we launched 213 new programs at the 34 colleges, and cancelled 560 programs,” he says. “Washington’s colleges are 1,633 Public doctoral/ professional 7,700 Private bachelor’s 4,531 Private master’s 706 Private doctoral/ professional Source: Washington Higher Education Coordinating Board Students make their way to class at the University of Washington in Seattle. 78 C h o o s e W as h i n g t o n teaching important, pertinent courses to students who businesses want to eventually hire.” Wind-Wind Situation The state’s burgeoning clean energy technology industry is another area of focus for training programs. Walla Walla Community College (WWCC) has been training wind turbine technicians since August 2010 through the school’s Wind Energy Technology program. According to WWCC officials, the college has an interesting way of making sure that student candidates really want to pursue this demanding career. “During the first semester of this two-year program, we make sure students learn about all of the challenges that go into being a wind turbine technician,” says James Bradshaw, WWCC director of energy systems technology. “That way, students won’t waste their time and money pursuing a career that might not suit them.” Those first-semester challenges include climbing a 300-foot ladder that simulates the ascent to the top of a wind turbine tower. “We also take students on a field trip to a wind tower in the late fall when the weather is often windy and cold and snowy, to have the students experience how it feels to repair a wind turbine in raw weather conditions,” Bradshaw says. Walla Walla Community College works with area companies such as H&N Electric, UpWind, EnXco and Vestas that support the wind energy program with internships and by hiring graduates. “Our students are job-ready when they graduate,” Bradshaw says. “Starting pay is around $20 an hour, with plenty of room for advancement.”
    • Brain Stormers UW, WSU are key research centers Research students at Washington State University are making large strides in developing wheat straw into usable fuels. In addition, WSU graduate students are producing cell phone and automobile batteries made with tin that will change how batteries are used in the future. The state of Washington has an ample supply of educated workers who provide a backbone for technological innovation, with the University of Washington and Washington State gaining reputations as major centers of research. “Washington State University has a history of research in areas that include agriculture, aerospace and veterinary medicine, and in the fall of 2012, opened a School for Global Animal Health,” says Darin Watkins, WSU executive director of external communications. “We know today that 100 percent of all emerging diseases in the world come from animals, with animal names such as avian flu, swine flu and mad cow disease. Paul Allen and the Bill & Melinda Gates Foundation provided much of the funding for our School of Global Animal Health.” Washington, at least for the first five years,” Watkins says. “It’s a great state to live, work and conduct research.” – Kevin Litwin Volcanoes and Healthy Aging At the University of Washington, students are involved in research projects such as developing sensors that detect increased seismic activity prior to underwater volcano eruptions, and are studying better biological pathways to healthy aging. UW students have also been researching the genomics of liver disease and HIV, and are studying continued advancements in pediatric bioethics. “Most WSU and UW research grads will stay and work in Campus of the University of Washington in Seattle
    • Livability The Seattle skyline can be seen from the Central Waterfront area in downtown Seattle. 80 C h o o s e W as h i n g t o n
    • Come One, Come All Residents, businesses find their place in Washington b u si n e ssc l i m a t e . c o m / was h i n g t o n 81
    • Story by Jessica Walker Photography by Jeff Adkins T hanks to its excellent quality of life and thriving business climate, Washington state is attracting new residents – and even luring former residents back. And while it may be best known for its largest city, Seattle, the Evergreen State’s smaller communities also appeal to newcomers. Making A Move Born and raised in Seattle, Sue Harris moved across the state to Spokane 14 years ago after her husband secured a job in the area. “We had never been here before, but we have absolutely fallen in love with the city,” she says. Harris, age 67, says she enjoys Spokane’s Riverfront Park, which is located in the downtown area, as well as the Spokane Symphony and the abundance of parks dotted throughout the city’s neighborhoods. “While we are in a much smaller city than Seattle, we have many of the same venues,” she says. “I especially enjoy the moderate cost of living and the small-town feel. Traffic is not a problem, and it is very easy to navigate around the town.” Carol Frizzell, who serves as the Clark County Newcomers Club membership chair, moved to the Hockinson/Brush Prairie area in 2011. After living in Orange County, Calif., for several years, Frizzell and her husband chose to relocate to Washington after they retired. “We have family here, and the cost of living is attractive,” Frizzell says. “Plus, we love to camp and hike, and we’re still discovering all of the opportunities – that’s what’s fun.” Thanks to their proximity to Washington’s fourth-largest city, Vancouver, the Frizzells are just a 20-minute drive from big-city From left: People walk along the Spokane River at Riverfront Park in downtown Spokane, which comprises 100 acres of land and water.; A variety of colorful flowers are available at Pike Place Market in downtown Seattle, which covers nine acres and is commonly known as “The Soul of Seattle.”; Guests fill the tables for dinner on the outdoor deck at Joe’s Crab Shack on the Columbia River in Vancouver. 82 C h o o s e W as h i n g t o n
    • b u si n e ssc l i m a t e . c o m / was h i n g t o n 83
    • Photo Courtesy of the Port of Sk agit Clockwise from top left: People enjoy the outdoors along the Central Waterfront in downtown Seattle.; La Conner Marina at the Port of Skagit; Tourists take in the view of the downtown Seattle skyline from Kerry Park in the Queen Anne neighborhood of Seattle. 84 C h o o s e W as h i n g t o n
    • amenities including music venues, theaters, top-notch restaurants and shops. In addition, Vancouver offers cultural attractions such as Fort Vancouver and the Pearson Air Museum, as well as outdoor opportunities including hiking at Mount St. Helens and water activities at Hood River Marina. Business-Friendly Community Zachery Battle, president and CEO of Mavrik Marine Inc., which designs and constructs commercial aluminum boats, moved back to Washington after living in Dubai for three years. Battle, who formerly lived in the city of Bellingham on the state’s western side, set up shop in nearby La Conner. Battle says La Conner was an excellent choice for his business because of its proximity to the Port of Skagit, which owns and operates the Skagit Regional Airport, Bayview Business Park and La Conner Marina. “The Port of Skagit and the people welcomed us with open arms and made a place for us,” Battle says. “The rest is history.” Battle also notes that La Conner has proven to be a good fit for Mavrik Marine Inc., due to the city’s established workforce. The La Conner Marina, which attracts casual boaters, commercial fishermen, and a variety of businesses and manufacturers connected to the marine industry, also contributes to the company’s success. “Specifically, it’s a hub for the maritime industry and supports growth from a supply and resource perspective,” Battle says. “There are some great ports with a large client base locally. This is the key when you look at Choose WHY GARFIELD COUNTY … Family living • Year-round recreation in the Blue Mountains and Snake River • Vicinity of universities and colleges sustainability, because we need a good core to work from.” In addition to operating a thriving and successful business, Battle finds time to enjoy the state’s beautiful landscape. La Conner’s convenient location – a two-hour drive from Seattle – makes it easy. “I think the best thing about Washington is the geography and the proximity to such a diverse range of life,” Battle says. “You have mountains, lakes, ocean and the San Juan Islands. You have several large cities, and you have the neighbor to the north to explore as well.” What’s Online  Learn more about Washington’s fun attractions and things to do online at businessclimate.com/washington. Garfield County is located in southeastern Washington state – bordered on the north by the Snake River and on the south by the Blue Mountains. The rural community is located strategically with State Highway 12 running through Pomeroy, connecting routes traveling in all directions. Historically an agricultural region, Garfield County’s business economy is based largely on service, retail and small production. The rural charm of this neighborly community offers a safe and inviting environment for families and businesses. • Local hospital and nursing home • Speedy permitting • Primary through grade 12 • Shovel-ready property • Low crime rate • 35 miles to the airport • True, friendly, small-town living • Business incentives Port of Garfield • P.O. Box 788 • Pomeroy, WA 99347 509.843.3740 tel • 509.843.3811 fax Please visit us at www.portofgarfield.com • Strategic location • Skilled labor • High-speed broadband BUSinESS
    • Gallery The Japanese Garden at Lake Sacajawea Park in Longview. Photo by Todd Bennett 86 C h o o s e W as h i n g t o n
    • Spokane Falls SkyRide in downtown Spokane’s Riverfront Park Photo by Jeff Adkins b u si n e ssc l i m a t e . c o m / was h i n g t o n 87
    • Gallery The one-mile Lewis and Clark Bridge stretches over the Columbia River along State Route 433 between the cities of Longview, Wash., and Rainier, Ore. Photo by Staff Photographer 88 C h o o s e W as h i n g t o n
    • A variety of wines are for sale in the shop at Chateau Ste. Michelle, a winery located in Woodinville. Photo by Jeff Adkins b u si n e ssc l i m a t e . c o m / was h i n g t o n 89
    • Gallery The Columbia River Gorge separates Washington from Oregon. Photo by Jeff Adkins 90 C h o o s e W as h i n g t o n
    • Sailboat passengers take in the downtown Seattle skyline and the city’s Central Waterfront area. Photo by Jeff Adkins b u si n e ssc l i m a t e . c o m / was h i n g t o n 91
    • Gallery 92 C h o o s e W as h i n g t o n
    • Seattle’s downtown skyline is easily seen from Kerry Park in the city’s Queen Anne neighborhood. Photo by Jeff Adkins b u si n e ssc l i m a t e . c o m / was h i n g t o n 93
    • economic profile Business snapshot Washington state’s pro-business climate, highly skilled workforce, legacy of innovation, low energy costs and a diverse and distinct quality of life have created a dynamic and diverse $310 billion economy. The state has internationally recognized industry clusters in aerospace, advanced manufacturing, life sciences, information technology, clean energy and forest products, and is home to Microsoft, Amazon.com, Starbucks and Costco, as well as other top companies. Its many business advantages include no personal or corporate state income tax, low energy costs, major port and air facilities, and a highly educated and skilled workforce. Population 2011: 6,830,038 2000: 5,894,143 Median Household Income (2010) $57,244 Households: 2,577,375 Major Population Centers (2010) 1. Seattle: 608,660 2. Spokane: 208,916 3. Tacoma: 198,397 4. Vancouver: 161,791 5. Bellevue: 122,363 6. Everett: 103,019 7. Kent: 92,411 8. Yakima: 91,067 9. Renton: 90,927 Median Housing Price (1Q 2012) Statewide: $208,300 Seattle/King County: $322,400 Tacoma/Pierce County: $175,900 Spokane/Spokane County: $158,100 Vancouver/Clark County: $174,800 Everett/Snohomish: $234,700 Source: Washington Center for Real Estate Research Transportation 10. Spokane Valley: 89,755 Airports Per Capita Personal Income (2010) $29,733 Washington state is supported by an air infrastructure of 139 publicuse airports including 13 scheduled commercial-service airports. Seattle-Tacoma International Airport and Spokane International Airport represent two of the largest commercial service airports in the state. Air freight is moved though 26 primary locations in the state. SeattleTacoma International Airport, King County/Boeing Field and Spokane International Airport support the majority of air freight. Highways Four major interstate highways, I-5, I-405, I-90 and I-82, serve the state and provide direct access to markets within the state and throughout North America. Additionally, I-205 and I-182 allow inter-loop connections for Vancouver and Tri-Cities (Richland-Kennewick-Pasco) areas. Railroad Union Pacific and Burlington Northern Santa Fe Railway are the major transcontinental rail providers in Washington. Both offer intermodal double-stack container rail transport that allows goods to be transported to the Midwest in less than three days, while eastern coastal cities can be reached within five days. Intermodal facilities are located in Seattle, Tacoma and Spokane. There are 17 additional local service railroads. Water The state has seven deep-draft ports on Puget Sound, one on the Pacific Coast and three on the Columbia River. Asia-Pacific markets can be reached one to This section is sponsored by 94 C h o o s e W as h i n g t o n
    • two days faster from Washington state than California. The Port of Seattle and Port of Tacoma are the third-largest container load centers in the U.S. The state’s water transport system extends 352 river miles inland with additional port facilities on the mid- and upper-Columbia River and Snake River. Learn more at www.washingtonports.org. Sources: • www.choosewashington.com • https://fortress.wa.gov/esd/ employmentdata/home • quickfacts.census.gov • www.bea.gov Labor Force Civilian labor force (2011): 3,480,300 Total nonfarm employment (July 2012): 2,371,000 Private employment (July 2012): 2,891,000 Fortune 500 Headquarters Major industry sectors (2011) Costco Wholesale (24) Issaquah $88.9 billion Microsoft (37) Redmond $69.9 billion Amazon.com (56) Seattle $48 billion Trade, Transportation & Utilities: 20.5% Paccar (159) Bellevue $16.4 billion Professional & Business Services: 12.1% Starbucks (227) Seattle $11.7 billion Leisure & Hospitality: 10.1% Nordstrom (242) Seattle $10.9 billion Other Services: 3.8% Weyerhaeuser (374) Federal Way $6.6 billion Expeditors International of Washington (395) Seattle $6.2 billion Government: 17.9% Education & Health Services: 13.2% Manufacturing: 10.0% Construction: 5% Financial Activities: 4.8% Information: 3.6% *Adds up to more than 100% due to rounding What’s Online  For more in-depth demographic, statistical and community information on Washington, go to businessclimate.com/washington and click on “Facts & Stats,” then “Demographics.” b u si n e ssc l i m a t e . c o m / was h i n g t o n 95
    • Ad Index 60 City of Edmonds 34 City of Lynnwood 41 City of Tacoma 34 Economic Alliance Snohomish County 62 Pacific Northwest National Lab 30 Paine Field Airport 8 Port of Bellingham 11 Port of Bremerton C3 Economic Development Association of Skagit County 14 Port of Chelan & Douglass County 34 Port of Clarkston 96 Grant County Economic Development Council 60 Port of Columbia C2 Port of Everett 85 Port of Garfield 73 Port of Kalama 72 Port of Longview 18 Port of Quincy 6 Greater Grays Harbor Inc. 29 Jefferson County Chamber of Commerce 12 Kittitas County Chamber of Commerce 4 Olympic Composites Corridor 21 Pacific County Economic Development Council 1 Port of Seattle 83 Port of Skagit 94 Port of Sunnyside 66 Port of Tacoma
    • Ad Index (cont.) 2 Port of Vancouver USA 59 Port of Walla Walla 77 Port of Whitman County 65 Puget Sound Energy 79 Southeast Washington Economic Development Association 70 Spokane International Airport 10 Thurston County Economic Development Council 56 Tri-Cities Washington – Tri-City Development Council 38 Washington State Department of Agriculture C4 Washington State Department of Commerce 74 Washington State University
    • Going Green in the Desert “ … The Port now has a treatment plant that can attract businesses to the area and protect surface and ground water area. Waste water went from causing permit violations … to turning it into a renewable resource.” ~ Washington State Department of Ecology No. 11-10-062 Come to E p h r ata for a little R&R! Whether it’s rest or relocating your business, Ephrata has a place for you! RecReaTion oppoRTuniTies RelocaTe youR Business • Concerts, skiing, hunting, fishing, flying, hiking, touring regional vineyards and much more! • Low operating overhead (property and utilities) • Spokane, Tri-Cities and Seattle areas available within a 1.5 to 2-hour drive. • Property available for lease and sale to accommodate commercial, light and heavy industrial or aviation operations and manufacturing • Fifty-year land leases available with direct airport ramp and taxiway access • Port-owned rail line that connects directly to the Burlington Northern Sante Fe (BNSF) Railway mainline ~ Internal rail operations served by the BNSF ~ Strategically located with unrestrained rail capacity on the Pacific Northwest Gateway and the Great Northern Shipping Corridor • Pre-approved, shovel-ready sites www.portofephrata.com poRT DisTRicT no. 9 oF GRanT counTy, WashinGTon POST OFFICE BOX 1089 • EPHRATA, WASHINGTON, 98823 Telephone (AC 509) 754-3508 (FAX 509) 754-5119
    • Skagit Valley Big Valley, Small-Town Feel ©2012 Kirsten Morse Choose Skagit Valley Ideal Location: Halfway between Seattle and Vancouver, BC, with easy access by rail, I-5 and by sea, Skagit Valley is convenient to a population of more than 6.5 million people within a 100-mile radius, but just removed enough to avoid the traffic and congestion of the big city. Just a half hour’s drive to the aerospace hub around Boeing. Quality of Life: A picturesque community in the foothills of the Cascade Mountains and the gateway to the San Juan Islands with rural landscapes and snow-capped mountain vistas; ample opportunity for boating, hiking and outdoor activities; and historic small towns along the Skagit River supporting a vibrant community life. Award-winning hospitals and well-performing schools. The home of the world-renowned Tulip Festival makes Skagit Valley a first-class destination. Courtesy of Dakota Creek Industries “The community in Skagit County is supportive of our business and elected officials understand what it takes to get work done. What a beautiful place to live and work!” ~ Lisa Janicki, Janicki Industries Business Climate: A strong, well-trained workforce with supportive vocational and educational facilities; a cooperative business environment with a focus on manufacturing, marine, aerospace and agriculture; deep water port; state-of-the-art business parks; and available land for new construction. Photo by Steve Berentson Courtesy of Janicki Industries For more information contact: Port of Anacortes 100 Commercial Ave. Anacortes, WA 98221 (360) 293-3134 christine@portofanacortes.com www.portofanacortes.com Economic Development Association of Skagit County P.O. Box 40 Mount Vernon, WA 98273 (360) 336-6114 don@skagit.org • www.skagit.org Port of Skagit 15400 Airport Dr. Burlington, WA 98233 (360) 757-0011 debbie@portofskagit.com www.portofskagit.com