Olympia Business Watch

Brunell: Buying American products creates American jobs

With continued high unemployment, growing deficits and a sluggish economy, it's easy to think that a solution is out of reach.

But that's not the case, AWB President Don Brunell writes in his weekly column. By choosing to "Buy American," individual consumers can make a real difference.

Buying American is not anti-trade, but rather about consumer choice, Brunell says. He notes the case of Anders Lewendal, a Bozeman, Mont. contractor profiled by ABC News for building a home using only American-made materials.

Lewendal says that using just 5 percent more American products in construction projects would create 220,000 jobs. And yet the cost of his "all American" home was just 1 percent higher than homes built with materials manufactured offshore.

Former Cheers actor John Ratzenberger has become the face of the Buy American movement, and he's sounding the alarm about the shortage of skilled American laborers and craft workers that results from buying products from overseas.

It's not too late to turn things around. The Buy American movement shows that opportunities abound, Brunell writes. Even in the most dire situations.

Brunell: Thank goodness for farmers

With the holiday season nearly upon us, AWB President Don Brunell gives thanks to America's food producers, a group that leads one of the few bright spots in a persistently glum economy.

America's agricultural exports reached a record $127 billion this year and they are expected to grow another $2.3 billion in 2012, Brunell writes.

The sector got another shot in the arm last month, too, when Congress ratified new free trade agreements with South Korea, Columbia and Panama. Tariffs and trade barriers will fall as a result, and Washington state stands to be one of the biggest beneficiaries.

The trade agreement immediately wipes out a 24 percent tariff South Korea imposed on Washington cherries, reducing prices by 75 cents per pound.

It also phases out South Korea's 45 percent tariff on most apple varieties over the next 10 years and immediately eliminates that nation's 18 percent tariff on frozen potatoes.

"So while our nation and state struggle with record budget shortfalls and a skyrocketing federal deficit, it is good to start this year's holiday season with some good news," Brunell writes.

 

Canadian diplomat tells Wash. business leaders to look north

Denis Stevens, consul general of Canada in Seattle, made it clear Tuesday that Canada is ready and willing to partner with Washington businesses.

Stevens touted a long list of Canada's economic selling points during his address at AWB's Spring Meeting, including everything from low business taxes and a tech-savvy workforce to numerous free-trade agreements and an economy that weathered the recession relatively well.

"We've emerged in better shape than nearly every other economy around the world," Stevens said.

His message was aimed at strengthening what are already strong business ties between Canada and Washington state. Some statistics:

• In 2009, Washington exports to Canada totaled $5.3 billion, and imports from Canada totaled $11.8 billion.
• Canada was the state's second-largest export market after China, purchasing 13 percent of Washington's worldwide shipments. (Watch for the next issue of Washington Business for more on this topic -- due out next week.)
• Some 174,000 Washington jobs depend on trade between the two countries.

Stevens highlighted three points during his speech at Spokane's Davenport Hotel: Canada's business investment potential, the work that Canada and the U.S. are undertaking to improve perimeter security without hampering the flow of legitimate travelers and North America energy partnerships.

Lt. Gov. Brad Owen wants more diverse economy - and fewer NIMBYs

Lt. Gov. Brad Owen told AWB that Washington needs to diversify its economy in light of emerging Boeing competitors in places diverse as Brazil and China.

Owen, who spoke shortly before the announcement that Boeing won its bid to build the next generation Air Force tanker, noted the growth of Brazil's Embraer, which just opened a manufacturing facility in Florida, as well as China's development of the C919, a competitor for Boeing's 737.

Boeing realizes who its competitors are, Owen said. "The point is, we have to know this," he said Thursday at AWB's weekly Lobby Lunch meeting. "I don't think we can sit here and rely on The Boeing Company to continue to support the state of Washington for the next 30, 40 years down the road. They will continue to be incredibly important, but we need to find ways to diversify."

Owen, who was actually acting governor at the time of his visit, noted that he's now in his 35th year of public service in Olympia, counting his time in the House and Senate. As lieutenant governor, he has traveled on several trade missions, including eight or nine visits to China.

Gov. Gregoire's Keynote Remarks at AWB's 2011 Legislative Day

(Recorded: Feb. 03, 2011) Gov. Chris Gregoire’s keynote remarks at AWB's annual Legislative Day luncheon. Topics include unemployment insurance, workers' compensation, state employee pensions and education.

AWB Institute: Manufacturing and Distribution Summit (Part Two)(Video)

Greg Weeks, Ph.D. (Director of Labor Market & Economic Analysis, Employment Security Department)

AWB Institute: Manufacturing and Distribution Summit (Part One)(Video)

This is the first of two one-day summits from the Association of Washington Business Institute and McGladrey. It is taking place at AWB's offices in Olympia. Tomorrow's event is in Lynnwood (you can still register). Topics include:

• An industry and U.S. economy outlook
• The impact of global activity on profitability
• Cost management
• Demand for "green" products and processes
• What employee skills manufacturing and wholesale distribution companies are seeking and where they're recruiting

Speakers

Tom Murphy, executive vice president of manufacturing and wholesale distribution, McGladrey: Murphy is a 25-year veteran in the industry and national practice leader. He shares his views on the latest industry trends, and reviews highlights from an annual survey conducted by McGladrey this spring.

Greg Weeks, labor market and economic analysis director, Washington State Employment Security Department: Weeks provides insight into the Washington economy and an out industry outlook from a workforce perspective.

Brunell: Selling America to China

China is pumping billions into the Greek economy, bailing out an over-extended nation and raising alarm among some Europeans about China's plan to flood their markets with cheaper Asian imports, AWB President Don Brunell writes in his weekly column.

The Greek government views it as a necessity, however, even though the money comes with strings attached, including demands that it take on its powerful unions to eliminate inefficiencies and improve productivity.

"Before Americans get too smug and dismiss what's happening as just a European problem, they should realize that we're on the same path," Brunell writes.

Ninety percent of the 440,000 jobs created in the U.S. last month were government jobs. Public and private-sector unions fight even the most modest efforts to privatize government services.

At the same time, the U.S. Treasury continues to borrow from cash-rich countries, including China.

"Do we have the political will to reverse course and avoid the same fate as Greece?" Brunell asks. "Or will we sell America's sovereignty to China in exchange for a bailout?"

Read the full column here.

Brunell: 'Buy America' sounds good ... until you dig deeper

 

There was a time when the patriotic call to "Buy American" made sense, but that time has long since passed, AWB President Don Brunell writes in his weekly column.

Although it's aimed at supporting American workers and companies, protectionism ends up hurting America because today's manufacturer's are international. He cites Campbell Soup and Boeing as examples of companies that depend on cross-border trade with Canada - companies that would suffer if that trade was curtailed.

"The fact is, the world's economy is all interconnected," Brunell writes. "The North American economy, especially, is highly integrated, and whatever actions government takes on one side of the Canadian border causes and equal if not greater action on the other side."

Washington Wine in Hong Kong

Update: Today's Seattle Times includes an editorial on Hong Kong's interest in Washington wines and wine tourism.

Hong Kong's Commissioner of Economic and Trade Office in Washington, D.C., is looking for ways to attract more Washington wine to Hong Kong.  Donald C K Tong J.P, met with AWB to discuss trade and business opportunities while he was in Olympia on May 26.  He is particularly interested in wine and wine tourism.

Hong Kong is a 427 sq. mile part of China with 7 million people.  Hong Kong is one of the world's leading financial centers. Its highly capitalist economy has been ranked the freest in the world by the Index of Economic Freedom for 15 consecutive years.

Currently, the Washington Wine Commission is working with Hong Kong to sell more wine to Hong Kong.  Given Washington's population is 6.5 million and passion for wine (and coffee),there should be plenty of opportunities for Washington wines (and coffee) in Hong Kong.

I'll be meeting with Commissioner Tong again on June 10.

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