Olympia Business Watch

Brunell: Will the Northwest economy be a casualty of the war on coal?

Activists waging a national war on coal have turned their attention to the Pacific Northwest, and the  consequences for the region's economy could be dire, AWB President Don Brunell writes in his weekly column.

Specifically, they are lobbying federal officials to add a second, expensive layer of environmental review to proposals shipping terminals that would export coal to China. Such projects already undergo a rigorous review known as the Environmental Impact Statement.

The second review, which some are calling a Programmatic EIS, would look at the potential cumulative economic and environmental impacts across the region, the nation or perhaps the world.

Even if adding another layer of review didn't block a project, it would slow it down for years. And it would establish a dangerous precedent in a state where one of every three jobs is linked to trade.

No one knows if it would go so far as to require, for example, an examination of greenhouse gas effects of jet engine exhaust around the globe in order to expand an aircraft manufacturing facility.

But for employers trying to decide where to locate or expand their business, the uncertainty is enough to make them take their business elsewhere, Brunell writes.

Consumer confidence falls amid concerns about jobs

According to Bloomberg, consumer confidence fell to a four-month low in May amid concerns about few jobs for the remainder of this year. Consumer confidence drives economic recovery creating jobs along the way.

The share of Americans expecting fewer job opportunities in the next six months climbed to the highest level since November, raising the risk that consumers will limit spending--not a good pattern.

Even a 30-cent decline in gasoline prices, in all places except the West Coast since early April failed to brighten spirits, showing that more progress is needed in the job market.

The Conference Board’s index decreased to 64.9 this month from a revised 68.7 in April, figures from the New York-based private research group showed today. Home prices in 20 cities dropped in the 12 months ended in March at the slowest pace in more than a year, according to another report.

 Bloomberg reports home prices in 20 U.S. cities fell 2.6 percent in the 12 months ended in March.  It is the smallest decrease since December 2010, according to an S&P/Case-Shiller index of property values.  Homebuilders are reporting their most-improved spring selling season in seven years, propelled in part by record-low mortgage rates.

Now if we can just get people back to work. 

Always Remember

During this Memorial Day weekend, please remember the men and women who gave their lives for our country.  Also think about those who are disabled and have crippling physical and emotional wounds.  And, most important extend your thanks to them and their families.  

6433 U.S. service members have died in the wars in Iraq and Afghanistan including 141 from Washington and 37 from my home State of Montana.  Some 633,000 veterans -- one out of every four of the 2.3 million who served in Iraq and Afghanistan -- have a service-connected disability, according to the Bureau of Labor Statistics.

44,000 American soldiers have been officially wounded. and an additional 55,000 have required medical evacuation out of the combat zones Operations Enduring Freedom, Iraqi Freedom, and New Dawn.

In World War II where my father and uncles served there were 400,000 American lives lost and over 48.2 million military and civilians lives lost on all sides. 

The old saying "War is Hell!" is very true and real to families and friends who are victims of it.  Unfortunately, too often victims of war just become numbers or grave makers---but they are names of real people who left behind real families and friends.  That is why the Vietnam War generation chose to remember their dead through lists of names on walls in nearly every state and in our nation's capitol. 

In all the wars leading up to the operations in Iraq and Afghanistan, over 1.3 million Americans in military uniforms died in combat.  And, that is just combat itself.  That includes an estimated 625,000 in our Civil War, over 58,000 in Vietnam and more than 36,000 in Korea.

As Winston Churchill total and audience in Great Britain following World War II:  "Never forget!  Never forget" NEVER FORGET!"  Have a safe and meaningful Memorial Day.....and pause to remember.

Thank you.

Don C. Brunell, President (DonB@AWB.org)

Brunell: Critical information lacking for new Ecology regulations

In 1970, when the Environmental Protection Agency was formed, our nation's environmental problems were easy to see, AWB President Don Brunell writes in his weekly column. Factories belched black smoke and rivers actually caught fire.

Today, so much has been accomplished that the remaining problems are literally microscopic. That's good news, but it means that solving the remaining problems require the use of good science.

Even so, the state Department of Ecology seems intent on moving forward with a proposal to raise water quality standards aimed at protecting people who eat a lot of fish, despite the lack of actual data to support the standards.

Not only is there a lack of scientific information to support the standard -- which is conservatively estimated to cost more than $1 billion per year -- but the department also admits that it will be impossible to meet for decades because the necessary water treatment technology doesn't exist.

Anyone who uses water should care about the issue, Brunell writes, because that's who will pay.

Time to improve the Endangered Species Act: Redirect money from lawyers to threatened species

Washington Congressman Doc Hastings (R) chair of the powerful House Natural Resources Committee, believes too much money is spent on lawyers rather than on threatened wildlife.  

U.S. Fish and Wildlife Service Director Dan Ashe has testified that the agency spent more than 75 percent of its fiscal 2011 resource-management allocation on court orders or settlement agreements resulting from litigation. Ashe told Congress: "We fully agree with the concern that our resources are better spent on implementing the ESA than on litigation."

When the Endangered Species Act (ESA) was signed into law in 1973 by President Nixon, he spoke about the importance of preserving "the rich array of animal life with which our country has been blessed." Hastings believes that goal is as important today as it was back then. However, after nearly 40 years, it's time to take a fresh, honest look at the law and consider whether there are ways it could be improved to do a better job of protecting and recovering species.

Hastings began a series of hearings to review the ESA. The purpose of these efforts is to look for ways to update, improve and strengthen the law - not to turn back the clock to 1973, before the law was passed. Congress last renewed the ESA in 1988, which means it has been 24 years since any substantial updates have been made.

Hastings has five objectives.

One, focus on species recovery. There are 1,391 domestic animal and plant species listed under the act. Of these, the U.S. Fish and Wildlife Service (FWS) has declared just 20 species recovered. That represents only a 1 percent recovery rate. The law is failing to achieve its primary purpose of recovering endangered species.

Two, reduce ESA-related litigation. One of the greatest obstacles to the success of the ESA is the way in which it has become a tool for excessive litigation. Instead of focusing on recovering endangered species, there are groups that use the ESA as a way to bring hundreds of lawsuits against the government. In response, agencies have to spend time and resources addressing those lawsuits instead of focusing on species recovery.

Three, ensure taxpayer dollars are spent wisely and efficiently. Hundreds of millions of taxpayer dollars are spent each year on endangered-species protection. In the face of trillion-dollar budget deficits, Congress has an obligation to ensure that money is spent appropriately to achieve the law's intent - the recovery of species. Every dollar that is spent on court settlements and legal fees is a dollar that is not going to directly help endangered species.

Four, base decisions on independently peer-reviewed science. Any decisions made on whether to list or delist a species should be based on sound science, not politics and not just because of lawsuits.

Five, make the law work for both species and people. The implementation of the ESA too often goes beyond the original intent of species recovery and is instead used to block and delay job-creating economic projects and activities.

Hastings is spot-on. 

Don C. Brunell, President (DonB@awb.org)

 

How'd you like to be in California looking for a job with its lousy business climate?

While Washington unemployment rate fell to 8.1 percent in April, which is down from 8.3 percent in March, California's jobless rate is 11.1 percent.  Consider that 13 of the 15 metropolitan areas in our nation with the highest jobless rates are in the California, once called the Golden State. Only the San Diego, Santa Barbara and San Francisco areas were below 10 percent and all three were higher than the national average of 8.1 percent.

In Washington, an estimated 285,800 people were out of work in April, down from a peak of more than 365,000 in February 2010. As of May 5, 89,815 workers in Washington had exhausted their unemployment benefits.

Dave Wallace, senior economist at Washington's Employment Security Department said state officials are confounded by the mixed messages they are getting from the two different surveys used to calculate unemployment figures and job losses. 

Wallace also said it was important to not focus on just one number to get an idea of the state's job picture. The monthly unemployment rate does not reflect the number of people who are working part-time while they continue to look for full-time work, for example.

Manufacturing jobs were the brightest spot on the April report, with an estimated 2,900 jobs added, and business services added an estimated 600 jobs. Losing the most jobs in April were government, which lost an estimated 2,300 jobs; transportation, warehousing and utilities, which lost an estimate 1,300; education and health services, down 900; and leisure and hospitality, which lost 500 jobs.

The bottom line is a lousy business climate, like that of California, leads to high unemployment numbers. Hopefully, our elected officials will remember that and not let us slide south. 

Read more here: http://www.bellinghamherald.com/2012/05/16/2524258/wash-unemployment-rate-falls-to.html#storylink=cpy

Don C. Brunell, President (DonB@awb.org) 

Big Year for Washington Apples

Did you know that Washington designated the apple as the official state fruit in 1989?

Did you know that Washington produces about 42 percent of the apples grown in the United States (and 60% of those grown for fresh consumption)?

The majority of apple production occurs east of the Cascade Mountains in the central areas of the state. During 1997-2001 Washington's apple production averaged about 123 million bushels per year.

The 2011 crop has been a financial hit. Average prices for fresh apples are ahead of last year and a tight market for processing fruit has kept prices at near historic levels.

The momentum for the $1.4 billion industry, the state's largest agricultural commodity, is expected to extend into the fall, despite an anticipated large crop and concern over higher fuel costs and the adequacy of the labor supply. 

According to the Yakima Herald-Republic, the rosy outlook is partly due to what has been described as extensive late-April frost damage to apples in Washington's two major domestic competitors: New York and Michigan. Media reports say losses are widespread and could exceed 50 percent of the crop.

Although there are more than 7,500 varieties of apples worldwide, the following are the top 9 varieties of apples grown in Washington state. Our most famous apple, the Red Delicious, represents about 30% of apples grown in the state, but accounts for 48% of apples exported to other countries.

Harvest of Washington apples begins in mid-August and generally ends in early November. Each year, Washington harvests over 100 million boxes of apples, each weighing about 40 pounds.

Washington apples and other irrigated crops are made possible because of the Grand Coulee and Ice Harbor dams on the Columbia and Snake Rivers. As some activists continue to call for dam removal, it's important to remember the bounty they have helped to create.

Don C. Brunell, President (DonB@awb.org)

Brunell: Roll on Columbia!

In 1942, the completion of the Grand Coulee Dam was hailed as the "Eighth Wonder of the World."

Seventy years later, most of us aren't aware of the what the dam or the others on the Columbia River continue to do for us, AWB President Don Brunell writes in his weekly column.

Brunell, who recently drove most of the route that folk singer Woody Guthrie traveled decades earlier when he was writing songs about the river and its dams, observed a river system with floodgates open to aid salmon travel.

And when he arrived home in Vancouver, Brunell saw a Columbia River at its high-water mark, as it often is this time of year.

It was not, however, threatening to flood as it did in 1948 when Vanport, once Oregon's second-largest city, was washed away in floodwaters that killed 16 people.

The Grand Coulee and the rest of the dams on the Columbia-Snake River system have provided generations of electric power, flood control and irrigation water.

"For most of us, the dams have always been there," Brunell writes. "We never knew a time without them, when electricity was scarce, when we struggled to grow crops on barren land and lived in fear of raging floodwaters.

"But we shouldn't take them for granted."

Workers' comp retro pays dividends for AWB members

In the recently published issue of Washington Business magazine, AWB writer Jason Hagey discusses the value of CompWise, AWB's workers' compensation retrospective rating program.

Since 1996 when the Association of Washington Business started CompWise, over 800 members have shared over $56 million in refunds.  The refunds are generated by our participating members who have exceptional safety, accident prevention, worker treatment, return to work and claims management programs.

"The savings are rightly passed along to our participating members,"  AWB President Don Brunell added. "The retro refunds are returned directly to AWB members as a way for them to lower their workers' compensation costs." 

AWB has retro programs for manufacturing, service and retail, wholesale, hospitality and facilities and property management. 

CompWise is one of several public-private "retro" programs offered by AWB through the Dept. of Labor and Industries. Qualifying employers join CompWise as a way to lower workers' compensation premiums since Washington is a state which prohibits private insurance carriers from writing workers' compensation coverage---something AWB has lobbied to reverse.

In the latest issue of AWB"s magazine, Hagey reports that AWB members shared $9.4 million in refunds last year. Olympia-based coffee company, Batdorf & Bronson has participated in AWB's retro program since 1997. "We get back almost 15 percent of our premium just about every quarter, Jenny Huff, human resource director, said. 

Print NW, the company which prints Washington Business Magazine, received a $40,000 workers' comp refund check last December from AWB.

Look for more details in the spring issue of Washington Business magazine.

AWB Institute starts Health Care Listening Tour

The AWB Institute started a statewide listening tour in Vancouver today.

Focusing on businesses in the health care industry, this tour will research economic, regulatory and workforce challenges facing the industry. Input from these listening sessions will be used to guide the Institute’s work in support of the health care industry.

"Last year's manufacturing tour provided us with great insights into the manufacturing economy," said Amy Johnson with the AWB Institute. "We hope that this statewide tour of health care industry leaders provides similar insights into the future of the industry, how we can support it, and how we can train the next generation of health care workers."

A final report detailing the session findings will be published in October, similar to the Institute’s 2012 manufacturing report, “Challenges and Opportunities for Manufacturers in Washington State.”

Vancouver is the first stop of a one month tour around the state which includes stops in Seattle, Spokane, Tri-Cities, Moses Lake, Mount Vernon, and Snohomish. For more information about these upcoming events, contact Amy Johnson at 360.943.1600.

Pictured: AWB Institute's Amy Johnson with (L to R) Greg Seifert, Biggs Insurance Services; David Horowitz, CPA; David Bennett, Rebound Orthopedics and Neurosurgery; and Paul Baker, Wells Fargo Insurance Services.

Gregoire calls on business to help stop spread of whooping cough

Tom Hosea, chairman of the board of AWB, receives a whooping cough booster vaccine. (Screen grab from KING 5 news report.)

In response to a request from Gov. Chris Gregoire, the Association of Washington Business is urging employers throughout the state to join the fight to stop the spread of whooping cough.

More than 1,200 cases of whooping cough, or pertussis, were reported as of Monday, and the state Department of Health has declared an epidemic. Last year at this time, there were 117 reported cases.

Employers can help stop the spread of the highly contagious bacterial infection by informing their workers about the need to get vaccinated. Teens and adults who have already been vaccinated should get a booster, officials said, because the vaccine wears off over time.

Whooping cough usually starts with mild cold symptoms or a cough but can turn into severe coughing spells followed by gagging or vomiting. It's particularly dangerous for infants and can lead to complications that require hospitalization or even cause death.

Infants are the most at risk, but they are too young to be protected by the vaccine.

"So, it's up to families, caregivers and communities to protect them by getting vaccinated," Gregoire said.

The Tdap (tetanus diphtheria and accelluarl pertussis) booster vaccine is widely available at doctor's offices, pharmacies, healthcare offices and clinics.

In Olympia, the vaccine was available from the Safeway pharmacy for $59.95 without insurance. With insurance, the cost may be less.

More information:

Pertussis fact sheet from the Washington State Department of Health

Brunell: Some dams should come down, but not the Snake River dams

Demolishing two dams on the Elwha River west of Port Angeles is a good thing, AWB President Don Brunell writes in his weekly column.

The dams, which were blocking salmon from moving upstream, were built in the early 1900s to bring electricity to the Olympic Peninsula at a time when salmon and steelhead were plentiful in other rivers.

But breaching the four dams on the lower Snake River is an entirely different matter for a variety of reasons, not least being the success that's coming from years of work to improve fish passage and spawning habitat throughout the Columbia and Snake River system.

Salmon are moving upstream in great numbers.

Other importance differences: The Elwha dams produced relatively little electricity, they did not irrigate thousands of acres of productive farm land and they didn't create a vital marine highway that keeps trucks off the highways.

"All this nonsense about digging a ditch around those four massive structures is just that -- nonsense," Brunell writes.

"We should thank our lucky stars the four lower Snake River dams are there and get on with implementing the cooperative management plan that allows both fish and families to thrive."

Washington Business Week summer program set to launch: Your Help Needed

When Washington Business Week (WBW) was launched 36 years ago at the Association of Washington Business (AWB), its founders had no idea it would grow to the point where it is in 26 states, Poland and Australia.  Nor, did they envision separate pathways focusing on health care, manufacturing, agra-business, and energy.

From the beginning, Washington Business Week has been a student and teacher, hands-on, economic education program funded through private contributions, mainly from AWB members, service clubs and individual donations.  Since it costs more than $1,200 per student to fund the program and our tradition is to provide financial aide to students who cannot afford the full-cost, each year we ask for your financial contributions.

WBW started as a series of one-week summer programs at Central Washington University in 1975.  Since, the summer program has expanded to Gonzaga, Western Washington and Pacific Lutheran universities in Washington State.  Along with the traditional Business Week programs where students are put together in 10-person companies along with an adult adviser from business or education, students now a operate their own clinic at Health Care Week (Gonzaga and Pacific Lutheran), a manufacturing company (Western Washington) as part of Manufacturing Week; or, operate a farm or natural resources or energy company as part of Energy and Ag weeks (Central Washington).

During the school year, students can participate in the one-week in-school programs.  For example, in Omak, business leaders like Greg Hamilton, Hamilton Farm Implements, Okanagan, and the Omak Rotary Club conducted their annual in-school program during the week of Marhc 5.  Last month, with the backing of Puget Sound Energy,75  students at Bremerton High School participated in Energy Week.

With the in-school programs completed, the summer program will launch at Western Washington University on June 24.   The four Business Week session in Poland will begin in City of Boleslawowo on July 8.  The other one-week sessions in Poland will be in the cities of Gdansk,  Minsk Mazowiecki, and Gydnia.  Last year, America's Ambassador to Poland, Lee Feinstein, was the commencement speaker at Gdansk.

Since Washington Business Week started at AWB, more than 50,000 students and teachers have graduated from the program. WBW is privately funded mostly by AWB members.  Here is how to register or contribute to the program.

Don C. Brunell, President (DonB@awb.org)