Business Pulse Magazine: Winter 2016

IN FEBRUARY: BELLINGHAM BUSINESS ACADEMY & WBA INDUSTRY TOUR

Lean Akers: No Mountain High Enough

MAGAZINE WINTER 2016

How to

transition IMCO forms two boards: in (Harvard) style Advisory and Family 2016 Business Confidence: Is Whatcom optimistic? Survey says…

Special Report: Legacy Companies

Frank Imhof (l.), CEO, and Tyler Kimberley, President IMCO Construction Company

Secrets of 6 who made it to 100

In the ‘Hood

The delightful, hidden history of Irongate

Industry Report: Solar Power play — here comes the sun…

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TABLE OF CONTENTS IMCO crews at work in the I-90 Tunnel project.

(Photo courtesy of IMCO)

52 12 22 60

COVER STORY: IMCO GOES IVY LEAGUE HARVARD SESSION STEERS TRANSITION Co-founder Patti Imhof suggested it. The upper management at IMCO Construction went first, then the entire Imhof family attended a one-week session at Harvard University centered on leadership transition. They now operate with an unusually-formulated board and family retreat as guiding concepts.

WHAT’S THE TEMPERATURE READING ON ECON ’16?

The Whatcom Business Alliance sent a survey to community business leaders to delve into their mindset about the economy and how their companies might go, bull or bear, this year. From a wide-ranging response and a crosssection of individual interviews, we present you with a mostly-positive vision of a 2016 about to unfold.

IN THE ‘HOOD: IRONGATE & E. BAKERVIEW — A FLIP OF THE COIN KICK-STARTED IT A golden rush of starkly different enterprises gradually filled 640 acres. In a new feature series, we’re taking a deep look at local ‘neighborhoods’ where business and commerce bustle with extraordinary results. We started with our own ‘hood, where our offices sit on a large duck, nee fishing pond that the original stakeholders built long ago.

Our trusty reporter Cheryl Stritzel McCarthy uncovered a wealth of fun, funny, and fascinating tales of success in Irongate Neighborhood (not all as industrial as it sounds, but in all cases industrious) and its boundary streets.

SOLAR FORGES INTO A FUTURISTIC NOW Long talked about and yearned for, solar power has arrived fully viable, affordable, and available through a cadre of local manufacturers and distributors. Everywhere you go in Whatcom County you’ll see the solar panels in residences, in office buildings, even in rural barns. Bring on the sunshine.

VOICES: PERSONALLY SPEAKING AND OPINIONS Perpetual-motion Man Paul Akers, former guitar-maker, turned pastor, turned woodworker, turned inventor, turned Lean guru, turned around-the-world traveler will delight you on pages 70-83 in our staple Personally Speaking interview. He climbs mountains, and instructs on how to climb life’s mountains…. Starting with a book excerpt (p. 82) a dozen guest columnists (pages 88-109) offer hot topics of $12 minimum wage, Obamacare, Alcoa plight, and more….

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TABLE OF CONTENTS Haskell Corporation awards (photo by Patrick Downing)

38 42 44 46 48

FRESH BREEZE ORGANIC MILK ROSE FROM ASHES

One, huge Zweegman homestead west of Lynden evolved into four family plots, Leon Zweegman of Rozelyn Farm outlines the ‘tree’ that today includes 5th-generation farmers Blankers and Langleys (see P. 39). Clarissa and Shawn Langley pioneered bottling certified organic milk in Washington to sustain their part of the chain.

HASKELL CORP. – FROM PLUMBING TO POWER PLANTS

Starting as schoolboys, Fred Haskell (Gen-4) and his son, Evan (Gen-5) learned the Haskell Corporation trades that have earned a wide variety of construction and fabrication project awards seen above. As his father “Red” did for him in 1984, Fred passed the presidency to Evan. Great-grandfather Edwin started it all in HVAC 125 years back.

‘THE SHOE’ FITS AND IT’S WORN NICELY During the midnight hours the venerable Horseshoe Café is slammed – long a traditional after-the-show or -bar Holly Street downtown drop-in. That’s long, as in more than any eatery in Washington, and maybe the whole West/Northwest. New ownership by the Family Groen last year brought a new look, but same comfy, home cooking style digs (the biscuits and gravy, pow!).

U.S. NAVY & COAST GUARD ANCHOR WITH LISTER

Wending its way from Vancouver, B.C., to Blaine, Lister Chain & Forge corners the market wherever large ships sail. Its leader, Michael Stobbart, defers to a 25-person team when speaking proudly of the company’s massive achievements, including two 15-ton anchors for the USS Gerald Ford class of aircraft carriers.

SAMSON ROPE TECHNOLOGIES RULES ITS WORLD

What do NASA space vehicles and singer Katy Perry have in common? Samson Rope. The company (est. 1878) added Technologies to its name in recent years because of science advancements that open new frontiers of rope making. They’re surging ahead, including new global markets, with new CEO Andrea Sturm, as “ropologist” Tony Bon phases into retirement after 42 years there.

Publisher Tony Larson Managing Editor Mike McKenzie

For editorial comments and suggestions, please write editor@businesspulse.com.

Business Pulse Magazine is the publication of the Whatcom Business Alliance. The magazine is published at 2423 E. Bakerview Rd., Bellingham, WA 98226. (360) 746-0418. The yearly subscription rate is $22 in the USA, $50 in Canada. For a free digital subscription, go to businesspulse.com or whatcombusinessalliance.com. Entire contents copyrighted © 2016 – Business Pulse Magazine. All rights reserved.

POSTMASTER: Send address changes to Business Pulse Magazine, 2423 E Bakerview Rd., Bellingham, WA 98226.

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Feature Writers Gerald Baron Sherri Huleatt Cheryl Stritzel McCarthy Guest Columns Randall Benson: Lean Jacob Deschenes: Investing Todd Myers: Environmentalism Lee Newgent: Labor Bob Pritchett: Book Excerpt CJ Seitz: Business Development Erin Shannon: Small Business

Dr. Roger Stark: Affordable Care Act Tech Help/Big Fresh: Technology Debbie VanderVeen: Agriculture Rose Vogel: HR Mallina Wilson: Real Estate Cover Photo Patrick Downing Photography Patrick Downing Sherri Huleatt Cheryl Stritzel McCarthy Mike McKenzie Courtesy Photos FastCap Fresh Breeze Organic Dairy

Horseshoe Café IMCO Construction Port of Bellingham Samson Rope Technologies Will Austin Photography Graphic Design/Layout Patrick Downing Adam Wilbert Ad Sales Jon Strong Subscriptions Katie Scott Administration Danielle Larson

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LEADING OFF Tony Larson | President, Whatcom Business Alliance The Whatcom Business Alliance is a member organization made up of businesses of every size and shape, from every industry. The WBA enhances the quality of life throughout Whatcom County by promoting a healthy business climate that preserves and creates good jobs.

WBA shares the optimism reported by majority of Whatcom businesses

A

s we enter 2016, how would you describe how you feel about your business prospects in the future? How was 2015 for you? How did it compare to 2014? What concerns, if any, do you have about the economy as we enter the new year? Are there any obstacles that you anticipate might impact your growth or profitability negatively?

Those are just a few of the questions we posed to local business owners, presidents, CEO’s and executive directors in a survey at the end of last year. The confidence that business leaders have about the future is important. When they expect good things to happen, they respond accordingly with new hiring, capital expenditures, expansion. That response impacts others, which impacts others, and so on… the multiplier effect.

In this edition, we have published the results of our Whatcom County Business Confidence Survey and provided some comments from several business leaders from different economic sectors.

More than half of the businesses surveyed expect their business to do better in 2016 than it did the previous year. A great amount of 10 | BUSINESSPULSE.COM

“cautious optimism” surfaced about 2016, despite some negative news headlines about closings that might suggest differently.

At the WBA, we are very optimistic about 2016. But before I share some of the exciting news for 2016, let me recap some of our activities in 2015.

• Our leadership network continued to grow all year, both in the membership and in the number of business leaders joining our online newsletter list. We saw a particular increase from Canadians interested in doing business in Whatcom County.

• We reported in Business Pulse and newsletters on a number of issues, including the regulatory overreach that’s strangling economic development; making sense of the Whatcom County charter amendments; crossborder business opportunities; farmers mobilizing to address concerns about the Department of Ecology; truths about the minimum wage; the Lummi Nation Marina proposal; the hotel boom, and market-based environmentalism, just to name a few. We celebrated the shining stars of Whatcom County companies and industries, of women in business, of the reopening of

•

the Semiahmoo Resort, and the Innovator of the Year.

We invite our members to join us after each of our board meetings when we host a program to inform.

These programs in 2015 included a look at the national movement of mandatory employer sick leave and a $15 minimum wage; a

More than 50 local business owners and leaders got directly involved in connecting with City of Bellingham officials regarding a proposed mandatory employer sick leave ordinance.

Port of Bellingham update; a look at water rights from the perspective of local farmers; the economic importance of investing in rail infrastructure; an Obamacare update; a comparison between the State of Alaska and Washington state’s hatchery programs; the Charter Amendments on the ballot last November, and a close look at the State Environmental Policy Act (SEPA) review process.

•

The WBA industry tours provide business leaders a close look at other companies to learn about their best practices, challenges, and how they overcome them. And to get to know other business leaders better.

Last year we visited Zodiac Aerospace, All American Marine, Alpha Technologies/ Altair Industries, and BP Cherry Point Refinery.

• We launched the Bellingham Business Academy and hosted the Business Awards Banquet, Northwest Business Expo, Economic Forecast Breakfast, and President’s Club seminar series.

• Our advocacy committee and members were very active in 2015. They worked hard to address issues important to local businesses. More than 50 local business owners and leaders got directly involved in connecting with City of Bellingham officials regarding a proposed mandatory employer sick leave ordinance. We were all appreciative of how the council listened to our concerns, and encouraged by their responses. Bellingham was the first place in the nation where this policy was introduced and not passed. We also helped pass state HB 1381, a tax-preference package for Alcoa’s Wenatchee and Ferndale plants. Unfortunately this became too little, too late.

The WBA also got involved with educating people on the Charter Amendments, and on state HB 1270 focused on building up our local fishing industry.

For the WBA, 2015 was a very active year, and like many local businesses in our survey we are optimistic about the coming year as well.

Eight new WBA board members with outstanding credentials at outstanding organizations join the leadership in January. I am pleased to welcome Ken Bell from Best Recycling, Tyler Byrd from Red Rokk Interactive, Jeremy Carroll from Dawson Construction, Tom Kenney from Washington Federal, Ben Kinney from Keller Williams Realty Bellingham, Sarah Rothenbueler from Birch Equipment, Billy VanZanten from Western Refinery Services, Josh Wright from Bell-Anderson Insurance.

Continuing growth in 2016 will propel the WBA as we focus on doing what we do, but even better. We will continue to grow the Bellingham Business Academy, and offer some outstanding industry tours, provide many opportunities to bring business leaders together to discuss the issues important to our economic growth and vitality. We believe there no bigger factor affects community prosperity than busi-

ness success. So we will continue to facilitate your success and advocate on your behalf.

We will launch a WBA mentorship program to connect business mentors with budding entrepreneurs and managers. If you are on either side of that equation, or want to get involved with the launch of this program, please call our office.

You have many other ways to become involved with the WBA, too. I encourage you to serve on one of our four outstanding committees. The chairs of our membership, technology & communication, programs, and advocacy committees welcome your participation. Give me a call and we’ll direct you to an area that best fits your interests.

Thank you, WBA Member, for making our efforts possible. If you have not yet become a member, I invite you to join our growing leadership network.

Wishing all of you a healthy, happy, and prosperous 2016.

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BUSINESS CONFIDENCE SURVEY

Taking the pulse

of Whatcom County business confidence Cautious optimism on the rise

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“We are pregnant with promise, though how long the gestation period may be and what will be delivered is still very much an open question. Nevertheless I am more optimistic now than at any time over the past decade.”

— Dr. Dennis Murphy, former dean of the College of Business and Economics, Western Washington University

Compiled by the Business Pulse staff

B

usiness confidence is an important economic indicator that measures the amount of optimism or pessimism a business owner or manager has about their prospects. It also provides a snapshot of the state of the economy.

Since confidence about the future often leads to business decisions about hiring, capital expenditures, expansion, etc., the confidence barometer can create a self-fulfilling prophesy.

When businesses are confident, they invest; it impacts other businesses that provide additional services and grow as a result; the economy expands.

The opposite can hold true. A business owner lacking confidence reduces payroll, hoards cash, reduces investment, then vendors do the same; the economy contracts.

Knowing the thinking of business owners and managers about the future is useful in analyzing what the economy might look like for all of us. Particularly in a local economy like Whatcom County where such data is not readily available.

A number of high-profile local companies

made headlines in 2015 for reasons that could fuel economic concerns. As part of its Chapter 11 bankruptcy proceedings, 33 core Haggen Food stores will be auctioned off Feb. 5. Last September, citing a downturn in the oil and gas industry, CH2M Hill closed its Bellingham office, impacting 120 well-paid employees.

Alcoa recently announced the closing of pot lines at its Ferndale and Wenatchee plants that will result in a loss of 465 family-wage jobs at the Ferndale Intalco Works.

“The economic environment of Whatcom County, and to a lesser extent Skagit, will feel the drag of the closings of Alcoa: Intalco Works and CH2M Hill in terms of employment and general economic activity,” Dr. Dennis Murphy said. He is the former dean of the College of Business and Economics at Western Washington University.

“The ripple-down effects will be significant.

These were high-paying jobs that will be hard to replace.”

Given the varied circumstances and headlines, how do we get a good barometer on what local business leaders are thinking across the board?

To that end as 2016 approached, the Whatcom Business Alliance and Business Pulse surveyed local CEOs, presidents, business ownWHATCOMBUSINESSALLIANCE.COM | 13

BUSINESS CONFIDENCE SURVEY

“This will be a year of explosive growth for us, driven by innovation and benefiting from the incubation and investments we made in people, time, and development in 2015. The same types of investments this year will continue our growth in 2017. We expect our sales to grow five times in 2016.”

— John Gibb, CEO, NutraDried Creations ers, and managers to discover a sense of what local business leaders from a cross-section of industries are thinking about 2016.

More than 200 responses came back from nearly 700 surveys. The responses came from business service companies, construction and development, financial services and insurance, wholesale and retail, manufacturing, health and community services, technology, hospitality and recreation, transportation, communications, government administration, education, farming/ forestry/fishing, and others.

As a value to you as a Business Pulse reader, we broke down statistical results of the respondents, and we interviewed a cross-section of local business leaders. Some basic results: • 55% of the respondents came from businesses located in the City of Bellingham, 22% from another Whatcom County city, 12% from unincorporated Whatcom County, and 11% from outside Bellingham city limits.

• 51% said 2015 was either somewhat or much stronger than 2014, with 32% saying it was about the same, and 17% saying it was weaker.

An example we sought that is representative of the positive note: NutraDried Creations in

Ferndale (manufacturing) and Blaine (distribution and admin). They launched three products in 2015. One, Moon Cheese, is distributed to all Starbucks in the U.S. and will enter Canada Starbucks this year, among many sources. The other products were extensions of that line in whey protein snacks, root vegetables, and a snack of honey, seed, and nuts.

John Gibb serves as CEO at NutraDried Creations. He responded to our follow-up to the survey. “This will be a year of explosive growth for us,” Gibb said, “driven by innovation and benefiting from the incubation and investments we made in people, time, and development in 2015.

“We will need to make the same types of investments this year, in order to continue our growth in 2017.”

Compared to 2015, half of the survey respondents believe 2016 will be either somewhat stronger or much stronger, with 38% saying they expect about the same and 12% expecting weaker performance.

Focusing on specific areas of performance, 59% expect to be more profitable, while 24% expect no change in profitability and 17% anticipate lower profitability.

Among the majority, Gibb expects

“In 2016, The Port of Bellingham has some larger than normal projects. They are not related to business levels, but rather timed — based on permits and other outside funding” — Rob Fix, Executive Director, The Port of Bellngham

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BUSINESS CONFIDENCE SURVEY NutraDried sales to grow five times in 2016.

“We will obviously need to add talent throughout our organization, yet by necessity, outsource some activities to achieve what is required,” he said.

More results from the survey show caution about employment: • 32% expect an increase in hiring, 29% expecting a slight increase and 3.5% expecting a significant increase.

• 53% expect no change in staffing levels and 15% expect a decrease.

Many business leaders consider finding quality labor a continuing difficult process. “The Millennium generation, even though it is a bigger population that Gen Y, does not seem to have the same work ethic as the older generation,” said Becky Raney, co-owner and chief operating officer at Print & Copy Factory.

SOME COMMENTS REFLECTING WHETHER LOCAL BUSINESS LEADERS SEE FULL-GO GREEN, YELLOW CAUTION FLAGS, OR RED AHEAD:

“We’re very optimistic about 2016 because we took on quite a bit of challenges and learned a ton in 2015 that we can move forward on. The biggest change we are making is we’ve demobilized, and moved forward with more focus on our strategies. We’re bringing a lot of our work back to Washington.”

— Tyler Kimberley, President IMCO Construction

16 | BUSINESSPULSE.COM

Kevin Weatherill, CEO of The Markets LLC: “I’m pretty cautious about 2016. Cash is king in an uncertain environment; we have only limited, quick-return investments planned.”

Mike Diehl, CEO of Diehl Ford: “With gas prices and interest rates remaining low, and with the advances in lightweight building materials, along with more efficient engines, consumers will continue to trade out of their current vehicles and upgrade to the newest products available.”

Diehl Ford sold 615 units through November 2015 and forecasts a 10–12 percent increase in 2016 along with an expected 4–5 percent increase in parts, service and body shop sales.

Tyler Kimberley, the president at IMCO Construction, is optimistic as well. He said the commercial side of his industry is doing especially well (as opposed to the industrial and civil engineering sectors).

“We’re very optimistic about 2016 because we took on quite a bit of challenges and learned a ton in 2015 that we can move forward on,” Kimberley said. “The biggest change we are making is that we’ve demobilized, and moved forward with more focus on our strategies. We’re bringing a lot of our work back to Washington.”

Survey Results: Select the economic sector that best describes your industry Business Services Construction/De velopment

Communications

Education

Farming/Forestr y/Fishing Financial and Insurance Government Administration Health and Community...

Hospitality/Rec reation

Manufacturing

Retail/Wholesal e

Technology

Transportation

Other

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How has your business performed over the LAST 12 months relative to the previous 12 months?

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Somewhat Stronger

About the Same

Somewhat Weaker

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WHATCOMBUSINESSALLIANCE.COM | 17

BUSINESS CONFIDENCE SURVEY ONE PHASE OF THE SURVEY INQUIRED ABOUT POSSIBLE CAPITAL INVESTMENTS THIS YEAR: •

“I am optimistically positive about this coming year. With gas prices and interest rates remaining low…consumers will continue to trade out of their current vehicles and upgrade….Employee benefits remain a large fixed expense that we must constantly pay attention to, and finding well-qualified staff is another challenge – especially in the diesel repair shop.”

— Mike Diehl, CEO, Diehl Ford

18 | BUSINESSPULSE.COM

48% expect slight or significant increases, with 44% expecting no change.

In 2016, The Port of Bellingham has some larger than normal projects. “They are not related to business levels, but rather timed — based on permits and other outside funding,” said Executive Director Rob Fix. “ Lots of cash is going out the door for deferred maintenance finally being addressed.”

Gibb said, “We will make significant commitments to capital investment, including facilities and equipment at both locations. However, we cannot bring that much capability on line fast enough; so out-sourcing in the short-term is a necessity.”

Print & Copy Factory, which would be considered a small business by all standards, will invest $150,000 in new technology to keep up with the increasing demands of their clients.

Asked how the survey respondents felt about the national economy in 2015: • 12% said it was strong.

• 76% said it was average or stagnant.

• 12% said it was below average or weak.

Regarding the Whatcom County economy in 2015: • 15% said it was strong.

• 68% characterized it as average or stagnant.

• 18% said it was below average or weak.

The expectation for our economy in 2016 was split: • 11% expect the national economy to strengthen.

• 74% expect it to be average or stagnant.

• 15% expect it to be below average or weak.

The local expectation was similar: • 11% expect the Whatcom County economy to be strong.

• 45% expect it to be average.

• 28% expect stagnation.

• 16% expect it to be below average or weak.

Local business leaders were also surveyed regarding their level of concern in 2016 on issues they had identified as challenging in previous WBA polls.

Diehl said, “Employee benefits remain a large fixed expense that we must constantly pay attention to and finding well-qualified staff is another challenge, especially in the diesel repair shop.”

Business Confidence Survey 2016

SurveyMonkey

Q4 How do you believe your business will

How doperform you believe your12business will perform in the in the NEXT months compared the last 12 months?

NEXT 12 monthstocompared to the last 12 months?

Answered: 141

In your opinion, what are the major constraints on the growth of your business?

Skipped: 1

Much Stronger

Somewhat Stronger

About the Same

Somewhat Weaker

Much Weaker

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5

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(Units in percent)

Choices

Responses

In your business do you expect an increase, decrease, or no change over the NEXT 12 months in the following areas?

Access to training/availability of skilled workers 13.14%

9.93%

14

mewhat Stronger

40.43%

57

out the Same

38.30%

54

mewhat Weaker

10.64%

15

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0.71%

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ch Stronger

Declining customer base 5.84% Global/national economic performance 12.41% Price pressure from competitors 13.87% Price pressure from customers 5.84% Problems with local or state Government planning regulations 5.84% Rising overheads and utility costs 6.57% Rising production costs 3.65% Taxes and government charges/ Licensing and regulations 19.71% Wages 9.49%

141

Profitability

Staffing Levels

Capital Investment

Significant Increase 11.27%

Significant Increase 3.52%

Significant Increase 7.14%

Slight Increase 47.89%

Slight Increase 28.87%

Slight Increase 40.00%

No change 23.24%

No change 53.52%

No change 44.29%

Slight Decrease 16.20%

Slight Decrease 13.38%

Slight Decrease 6.43%

Significant Decrease 1.41%

Significant Decrease .70%

Significant Decrease 2.14%

What do you predit the NATIONAL and LOCAL economic forecast to look like over the 1/1 NEXT 12 months?

National Economy

Local Economy

Strong 10.64%

Strong 10.79%

Average 37.59%

Average 45.32%

Stagnant 37.59%

Stagnant 28.06%

Below Average 9.93%

Below Average 13.67%

Weak 4.26%

Weak 2.16%

WHATCOMBUSINESSALLIANCE.COM | 19

BUSINESS CONFIDENCE SURVEY

“The Millennium generation does not seem to have the same work ethic as the older generation. I believe we’ll show improvement of sales of 5 percent, an increase over 2015 at 2 percent. We’ll invest $150,000 in two new machines.”

— Becky Raney, , Chief Operating Officer/ Co-owner, Print & Copy Factory

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Fix said, “Low price of oil and Canadian exchange rate have us concerned. State budget issues further exacerbate the problem.”

Gibb said, “I worry about the strength of the dollar as it relates to our international business. I am also carefully watching the Fed's decision on interest rate hikes to assess its impact on the US economy.”

Further survey results: • 18% expressed no concern about the economy in 2016.

• 53% expressed slight concern.

• 29% expressed significant concern.

• 14% expressed no concern regarding the cost of employer healthcare insurance.

• 86% expressed either slight or significant concern regarding that issue.

• 24% expressed no concern regarding the availability of quality employees, an issue that has been challenging for the local tech industry.

• 43% expressed slight concern.

• 33% expressed significant concern.

• Digging into this issue a bit deeper revealed that 35% of new employees hired need significant training.

• 21% expressed no concern regarding government regulatory over-reach • 31% expressed slight concern.

• 48% expressed significant concern.

Asked to identify the greatest impediments to the future growth of their business, the top answers were taxes, government charges and regulations, price pressures from competitors, availability of skilled workers and access to training, and global and national economic performance.

“Our business (grocer) is significantly impacted by the plummeting Canadian dollar,” Weatherill said.

“The drop from near par to under point-75 in just under two years has

hurt top line for a good number of our stores over the last 18 months.

With the Fed projected to raise interest rates over 2016 it appears that the exchange rate will continue to get worse before it gets better.”

For John Gibb at NutraDried Creations, the good problem he has is “keeping up with growth, while seeding and fertilizing for the future (and) managing a culture that embraces and thrives on continuous improvement and change, while maintaining our poise and professionalism.”

According to Dr. Murphy, financing costs for capital and real estate will increase now that the Federal Reserve has finally opted for a very minor increase in base interest rates. He said we really don’t know what distortions have been introduced into the system from eight years of essentially zero rates, but there is no doubt they are significant and will show up over the next 10 months or so.

“Corporate borrowings have been huge, but often for merger and acquisition purposes, not productive expansion,” Dr. Murphy said.

“Markets hate risk and recent performance data, the Fed’s optimism notwithstanding, indicates that risk is still underpriced.

“We are pregnant with promise, though how long the gestation period may be and what will be delivered is still very much an open question.

“Nevertheless I am more optimistic now than at any time over the past decade.”

“I’m pretty cautious about 2016. Cash is king in an uncertain environment; we have only limited, quickreturn investments planned.

Our business (grocer) is significantly impacted by the plummeting Canadian dollar. ” — Kevin Weatherill, CEO The Markets

WHATCOMBUSINESSALLIANCE.COM | 21

IN THE ‘HOOD: IRONGATE/E. BAKERVIEW

Howard Hammer, age 95, with the 1989 master plan for Irongate Industrial Park.

(Photo by Cheryl Stritzel McCarthy) 22 | BUSINESSPULSE.COM

Incubator of industry Irongate/East Bakerview area grew far past the early vision Article and photos by Cheryl Stritzel McCarthy

I

n the heart of Bellingham’s Irongate area, hidden among industrial steel buildings, stands a wooden two-story office building the size of a house. Inside this little building at the corner of Alpine & Mustang Ways rises the stout trunk of a cedar.

The tree in the lobby, six feet across and two stories high, stands in testament to the people who founded this industrial area, and helped make it the vast and thriving economic engine that exists today.

“We were a couple of loggers,” said Jerry Hammer, who bought property in Irongate in the 1970s from his older brother, Howard.

“The whole area was Howard’s vision.”

Many names contributed to the growth of Irongate and Bakerview Industrial Parks: Hinton, Pederson, Borders, Ossewarde, Henefin, Smith, Starry, Ryan, and more.

Development picked up, slowly, over decades. When the 1980s dawned, the area remained mostly

brush, trees, and a gravel pit.

Then political winds shifted.

Environmentalists gained clout; loggers and commercial fishers lost clout. New rules emanating from the state legislature in Olympia “made it difficult for the logging industry,” Peggy J. Hinton said.

She is owner of Strider Company and Strider Industrial Park, on the north side of East Bakerview Road.

“We believed in logging as a renewable resource. (As loggers) we planted thousands of trees, and Hammers did the same. But envi-

“We had a vision of what we could do. It’s become more than what we imagined.”

— Jerry Hammer, early developer

ronmentalists did not see logging as renewable. That’s when H & O (Hinton and Ossewarde) decided to get out of logging. We quit gradually. The boys decided we’d have to go into a new business.”

Peggy and husband Bob Hinton first bought five acres of undevel-

oped land, then later another five, across East Bakerview Road from Howard Hammer’s holdings. “Bob and I could envision our first building. We had a dream of developing an industrial park,” she said. “In 1986 we built one building, in 1987 two, in 1988 another, all on the west side of Strider Loop.”

Together, they put up five buildings. But Bob’s health was failing.

He told Peggy, “Sell it all.” But Peggy said, “I won’t. I’m going to fulfill our dream.”

Bob died in July 1990. Since then Peggy Hinton has built an additional four buildings in Strider Industrial Park, north of East Bakerview and west of Hannegan Road. Strider Loop and Strider Lane are private roads with utilities. Tenants included Motor Weld Inc., there from the beginning, plus automotive diesel and gas, gravel, heavy equipment rental, truck repair, gas wholesalers, propane providers, commercial laundry, automotive lube, and coffee.

Hinton’s business comprises eight acres.

“One of the reasons Bob and I envisioned this was to help others develop their own enterprises,” she said. “We helped them start by building buildings for them. They WHATCOMBUSINESSALLIANCE.COM | 23

IN THE ‘HOOD: IRONGATE/E. BAKERVIEW couldn’t afford both to buy land and build, so we did it and rented to them. They came to us. It gives me great pleasure to see these businesses flourish.”

The late ‘80s were a “wonderful economic time,” Hinton said.

Industrial property sold readily.

“We put thousands of dollars in, to have water. Business owners liked the location.”

Doug Smith, a professional engineer and founder of Com-Steel LLC on East Bakerview Road, formerly with Anvil Corporation, and former port commissioner, was instrumental in creating Water District 16 in the mid-1980s to serve the area. Smith’s efforts received vital support from the three county commissioners to create the water district, enabling businesses to operate using septic and drain fields.

“We didn’t have adequate fire suppression until the water district was built,” Smith said. “Property owners took the risk initially, putting in fire suppression and potable water delivery. All those property owners were cooperative. We worked as a unit, without any naysayers.”

Then during the ‘90s, Water District 16 was disbanded. City of

Brad Davison, owner of A-1 Welding, with one of the truck scales his company builds.

Bellingham annexed the property and installed city sewer. When Bellingham said yes to sewer “… that was a wonderful day,” Peggy Hinton said. “That meant we could go forward and build buildings. We couldn’t do large industrial buildings on a septic.”

Zoning was critical. Early property owners, including the Hammers, Bob Starry, the Hintons, and Brian and Steve Pederson,

worked with county commissioners on zoning.

Lurline Hammer, wife of Jerry Hammer, recalled, “At the time, there was light industrial and heavy industrial. Heavy was Cherry Point.

But light didn’t include activities such as metal fabrication or welding. There was a gap. They worked with commissioners to create a zone called general manufacturing. That was established for the Bakerview

Plank tapped out to double down on Irongate

Didn’t want his company next to farms, so he cashed out college funds…and it paid off big-time

By Cheryl Stritzel McCarthy Scott Plank was age 18 in the early 1970s when he started his dock-building and pile-driving business, Whatcom Construction Inc. A decade later, with Jerry Hammer offering a site, Plank considered moving to the nascent Irongate Industrial Park.

“Jerry told me I needed to come out, he’d give me the deal of the century,” Plank said. “Jerry was offering an acre in Irongate for $30,000. But back then, $30,000 would’ve bought you five acres in the county.”

Plank didn’t want his industry next to farms. He bought the acre in Irongate.

“At the time of sale, Jerry offered me an additional acre for the same price. But I was tapped out by the first $30,000.

I told Jerry I couldn’t buy a half-interest in a free lunch. He 24 | BUSINESSPULSE.COM

said if I didn’t buy the second acre, he’d put it out for sale at $60,000.”

Plank found the money: He took his childrens’ college fund to buy the second acre.

Eventually, Plank owned 5½ acres with 75,000 square feet of space in six buildings in Irongate.

And what of his kids’ college fund? One attended Stanford University. Another went to Columbia University.

The third went to Western Washington University.

“It turned out to be a good investment, as you can see,” Plank said.

Plank sold Whatcom Construction Inc. in 1998 to an employee.

Providing local jobs since 1985 Donated to U.S. Food Banks: 2015 Ø Ø Produce grown on company land: 32,000 Pounds Ø Committed to fighing global hunger

360.815.5272 6069 Hannegan Rd. • Bellingham, WA 98226

IN THE ‘HOOD: IRONGATE/E. BAKERVIEW BEGINNINGS: AN INDOOR CEDAR TREE, AND BIG MOTHER’S When construction began in September 1979, the little building with the big cedar tree inside sat virtually alone in the area, except for a warehouse belonging to Audrey Borders, and a business called Big Mother’s Auto Recycling on Bakerview Spur.

“We helped others start by building for them. It gives me great pleasure to see these businesses flourish.”

— Peggy J. Hinton, Strider Company/Strider Industrial Park

This two-story cedar trunk rises through an office building at Alpine Way & Mustang Way in the Irongate industrial area.

area.”

Jerry Hammer, along with Alpine Enterprises partner Bob Starry, had become involved in Irongate during the ‘70s. They hired contractor Myles Donnelly to construct the Cedar-Tree Building 26 | BUSINESSPULSE.COM

in 1979-‘80 as office headquarters for Alpine Enterprises. Alpine’s office had been in downtown Bellingham, but the new office, rising in the raw land of the industrial-park-to-be, was easier for employees to get to.

“I don’t remember what we paid for an acre,” Jerry Hammer said. “I didn’t pay more than I thought it was worth. But my brother Howard said, ‘What the hell do you think you’re doing? You can’t pay that kind of money for property out here.’ Then he said, ‘You want some more?’ I said, ‘Sure!’

“We made a good buy. We had a vision of what we could do. It’s become more than what we imagined.”

Part of the purchase involved a work trade, with Jerry’s company roughing in Irongate Road. “We wound up putting in 90 percent of the roads out there,” Jerry said.

HAMMER-VISION Jerry Hammer sold the little wood-clad office building, with its log posts and indoor cedar tree, in 1990. Over the years, it housed a construction company, a motherand-baby store, and an incineration company. Today it houses Road-iQ LLC, which makes driver vision systems.

Jerry, 80, and Lurline, 66, now live in the Everson/Sumas area.

They keep a business office on Mount Baker Highway, and enjoy their family that reaches through more than a dozen great-grandchildren. They spend part of the year in Arizona, where Jerry still builds roads. “Most people come here to golf,” he said. “I go to work. I wasn’t looking for a job, but they found me.”

Bakerview/Irongate provides a huge benefit to Whatcom County, Lurline said. “Companies have started there, creating employment for local families.

Established businesses moved there to expand. It’s given small business owners opportunity to locate with infrastructure, utilities, roads, and close to Bellingham. It’s given our area an opportunity to grow. If the property were acquired today, I’m not sure it would happen (the same way).”

Dan Griffin builds a staircase at A-1 Welding in Irongate.

REGULATORY BUMPS IN THE ROAD Stricter governmental regulatory involvement makes it harder, in Jerry Hammer’s view. “It was so easy back then. Government worked with us, instead of fighting us,” he said. “In later years, you had to jump tall buildings in a single bound. It wasn’t that way back then; it was a pleasure to work with them.

“Things could be easier today if people cooperated, with less monkey business regulating everything.”

The area’s diverse industrial activity includes cabinet making, bathtub manufacturing, warehousing, makers of stainless steel appliances for commercial kitchens, equipment repair, and a maker of float coats and other survival gear that contracts with national defense.

There’s also businesses of coffee roasting and drivethroughs, growing and distributing and selling of recreational marijuana, printing, scientific testing, automotive repair, sales, and tire and battery companies, lumber, building, construction, and much more – from large (home of the Whatcom Transit Authority, Whatcom Humane Society kennels, UPS, etc.) to quite small.

“It’s an excellent place for small business,” Lurline Hammer said. “In the late-‘70s to mid-80s, there was no other place to go. Howard (Hammer) had that vision, and so did the others, to create a place for companies that didn’t fit into zoning.”

Jerry Hammer said, “It was a lot of fun. We are proud to have been a big part of making it happen.”

“Things could be easier today if people cooperated, with less monkey business regulating everything.”

— Jerry Hammer, early developer

Peggy J. Hinton, owner of Strider Construction, in her office in Strider Industrial Park.

Location, size, and boundaries?

When anyone around Whatcom County says Irongate, they mean one of three entities: Irongate Industrial Park, Bakerview Industrial Park, or Irongate Neighborhood.

Irongate Neighborhood was created in 2010, after various annexations (including the 640-acre Bakerview-Hannegan area in 1998), increased the size of north-end neighborhoods. Irongate Neighborhood comprises 900 acres, mostly zoned industrial, with a small slice of creek and pond zoned

as open public land. It lies east of Interstate 5 and north of Sunset Drive.

The other two entities, created decades ago and developed over time, are contained within Irongate Neighborhood. Their names are interchangeable and often overlap. Generally, Bakerview Industrial Park refers to the eastern portion, and Irongate Industrial Park to the western.

— Cheryl Stritzel Mccarthy WHATCOMBUSINESSALLIANCE.COM | 27

IN THE ‘HOOD: IRONGATE/E. BAKERVIEW Howard Hammer in the mid 1960s, by the carport of his newly built home near the southwest corner of E. Bakerview and Hannegan roads. The home is now the office of WBA and Business Pulse.

Hammer used to break wild horses. He and wife Dee now own racing thoroughbreds through Remmah Racing, Inc. (Courtesy of Howard Hammer)

The first days of Irongate (30 acres, $7,000) Early developer Howard Hammer foresaw the growth that would come

by Cheryl Stritzel McCarthy

H

eard the rumor that the land that became Irongate Industrial Park was won in a poker game?

It’s not true.

It was a coin toss.

Of course, there’s more to the story than that. It concludes this story….

Irongate started on New Year’s Day, 1950. On that bitterly cold day, Howard Hammer, a logger from Deming, moved with his wife, two young sons, and infant daughter into an old house on the southwest corner of East Bakerview & Hannegan roads. A few months before, Hammer had bought that 30-acre parcel, with its single-story, two-bedroom house, and broken-down barn,.

The parcel cost $7,000. Hammer put $1,000 down. He had that much —barely— from the sale of his previous home.

Hannegan Road wasn’t what it is now. In 1950, it started from the north and ran south to a dead end at his corner 28 | BUSINESSPULSE.COM

intersection with East Bakerview Road. The young logger was guessing Hannegan Road would someday extend south to Sunset Drive, and when it did, development would follow.

The coin toss comes later.

“We were hard up, very hard up,” Hammer recalled. “The fella next door – there were only two houses out there – came over on New Year’s Day and brought wood. It was enough to put in the fireplace and keep warm. The northeast wind was blowing. There was ice on the windows, inside.

“I don’t remember where I was working, but I had a job.

For several years, things were really tight. We did what we could to get by, cutting wood, selling wood. After that winter, we raised a big garden. You can live right out of the garden, which mostly we did. We raised our own beef on that property.

“We started making a few dollars. I’d buy cattle. Kids went to school on James Street. My wife was a hard worker, as I was. Things eventually got better.”

Finances improved enough so that by the mid1950s, Hammer could buy two more parcels: 34 acres just east of his original 30, and 20 acres to the south, for a total of $11,400.

“I kept adding property. I cleared the ground, using bulldozers, excavators. Property was so cheap, I planned to get ahold of every piece I could afford.”

Around 1960, he bought 10 acres, west of what is now Irongate Road, and logged its second-growth timber. By now, Hammer had formed a logging company with a brother and another partner, and was earning a living by logging around the region.

Irongate, meanwhile, needed water. Hammer and nearby property owners formed an association.

“I agreed to sell an acre of ground to the association if I found water. So I drilled a well. It produced 43 gallons a minute, and I sold that acre next to Bakerview Road. The association built a water tank.”

Hammer by then owned 208 acres, from East Bakerview Road to Division Street to west of Hammer Drive. “Sometime in that era, I tried to get the county to allow me to build homes on the property,” he said. “I wanted to develop a residential area. We went to a lot of meetings but got shot down, so I dropped it. After that, we tried for an industrial area. That went dead, too. I decided to wait and try later.

“Next thing I know, I saw in the paper, the county

had accepted my industrial plan. Doug Smith was at the meeting and helped get it through.

“I kept clearing land. I was logging big-time. I was a hard worker. I’d get up at 3 or 4 in the morning and work on clearing and leveling (Irongate acreage). There were hills and valleys, a lot of wet areas.

“Then I’d leave about 6:30 in the morning for the hills, for the woods where my logging crew was working, at Glacier or Marblemount. I’d wrap up

“I’m happy I got the thing started. I’m no genius, but I was lucky to have bought that 30 acres. I’m proud of it.”

— Howard Hammer, early property owner and developer

about 8 at night. If I had a couple more hours after logging, I’d work at (Irongate) if I could. We’d cover it, smooth it. Today it looks good.

“The city doesn’t have any road problems today because we built the right kind of roads. Hammer Drive was a terrible wet spot. We dug 12 feet deep, took the mud out, and filled it with rock. It’s under

WHATCOMBUSINESSALLIANCE.COM | 29

IN THE ‘HOOD: IRONGATE/E. BAKERVIEW

This second iron gate, constructed at Irongate Road & Midway Lane, was taken down after annexation by the city (Photo by Cheryl Stritzel McCarthy)

there today.”

In the 1960s, Hammer sold his first property to Stan Larson, who owned and operated Northland Diesel Service on the site. Impero Construction, Pacific International Grout, and Whatcom Crane followed.

Hammer sold his house on the corner, and built a new house nearby for $36,000 in the mid-1960s. He put in a big pond with an island, and stocked it with trout. “We used to waterski on the pond. I’d bring a bunch of guys out after the logging show to barbecue. The pond went clear out to Hannegan Road then.”

That house is now the office of Whatcom Business Alliance and Business Pulse.

“I sold land to whoever wanted to buy. I sold a piece to the Pederson brothers. At the time, they said I was holding them up. Listen to them today, they figure they stole it.”

Hammer bought raw land in the 1950s for $225 per acre. That land, improved, was selling by the 1990s for $100,000 per acre.

“Things started escalating,” he said.

“Property was worth more. Other property owners were building roads too. The day the city brought sewer out was a big day. To get the sewer, we had to go along with annexation by the city.”

Hammer put up a shop, office, and twin buildings on Hammer Drive, 30 | BUSINESSPULSE.COM

eventually raising five buildings, plus 120 storage units.

Hammer put up his first iron gate, a simple waist-high bar on two posts, on Irongate Road just south of East Bakerview Road, where his daughter and son-in-law were building a home.

The second iron gate, a more elaborate affair at Irongate Road & Midway Lane, was taken out in the ‘90s when the city annexed the area.

About 10 years ago, he donated his last three acres near Baker Creek to the City of Bellingham.

His first wife, who died in 1980 of a heart attack, did not live to see Irongate flourish. “She died just when things were getting good,” Hammer said. “I told her, ‘It’s going to be a big industrial area. As soon as the Hannegan Road goes through, we’re going to start making some money.’

“And that’s exactly what happened.”

He said it far exceeded his expectations. “I couldn’t even believe it. When we were trying to get the water association started, they said you have to have at least 50 people working out there. That sounded like a lot. Look what we did for the city and county – the tax base.

“I’m happy I got the thing started.

I’m no genius, but I was lucky to have bought that 30 acres. I’m proud of it.”

In the mid ‘90s, Howard’s brother Jerry (married to Lurline) introduced Howard to Lurline’s sister, Dee.

Howard and Dee married, making Jerry and Howard brothers-in-law as well as brothers. Today Howard and Dee, married 18 years, live in Stanwood, and own thoroughbred racehorses through their company, Remmah Racing Inc., in California.

But what of the coin toss?

“In the ‘50s,” Hammer remembered, “a fella named Gus owned 10 acres on the southwest corner of Bakerview Spur and East Bakerview Road. Gravel had been taken out, it was a low area, and he started dumping garbage on it. Sea gulls were flying around. We all got together to get it stopped, and went to a hearing at the county courthouse.

“I told people at the courthouse, ‘I am familiar with dynamite. Either that gets cleaned up, or I’m taking two boxes of dynamite out there and blowing it up. We’re going to stop it one way or another.’

“Gus had always told me, in broken English (Italian accent), ‘The property, she’s a no good. She’s a worthless.’

After the garbage matter settled, he wanted to sell me the property. We became good friends.

“He wanted $12,000 for the 10 acres. I offered $8,000. I told him, ‘You always said, she’s a no good.’

“We agreed to toss a coin. I won, and got it for $8,000.”

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IN THE ‘HOOD: IRONGATE/E. BAKERVIEW

Neighboring industries depend on each other Industrial park makes supply-chain efficient Article and photo by Cheryl Stritzel McCarthy

W

hat do you do if you need more space for your business, but you’re 25 years old and don’t have much money?

If it’s 1989, you come to Irongate.

Brad Davison, owner of A-1 Welding, bought one acre in the budding industrial park from Jerry Hammer that year. “Jerry was kind enough to carry the contract for a while, because I didn’t have enough money to pay for it all,” Davison said.

“It was just dirt and stumps.

Roads were roughed in, with some gravel, and potholes. The land had 32 | BUSINESSPULSE.COM

been logged, and some of it excavated for gravel. There were half a dozen businesses here, with one to 25 people at a shop, max. The Pedersons (Pederson Bros. Inc., metal fabrication) were here before me.

“Customers told them they were too far out of town, and no one would come to them.”

Davison’s first building was 5,000 square feet. In 1990, he added another building, and expanded onto the first, for a total of 9,500 square feet. In those years, deer, eagles, and hawks were his neighbors. Other businesses were off in the distance. Then, in the mid-90s, he said, “It started taking off. You’d always see a building being constructed.

“We have suppliers here that

supply laser-jet cutters, water-jet cutters, routers. We can have all that done, plus painting, sandblasting, powder-coating. We almost don’t have to leave the area to run our business. We have trucking companies nearby to haul our products. McEvoy Oil is here to fuel trucks. We have a hardware store, Fastenal, two buildings down the street where we get nuts and bolts.

We have two really good machine shops here, CamTech Precision and Irongate Machine.”

Technology breeds quality, and it’s all handy – for each to the other.

And they lend each other a hand, or machine, when needed.

“All the technology businesses help us put out a nicer product,” Davison said. “A laser costs a million dollars; we don’t have to buy

A-1 Welding occupies 17,000 square feet in two buildings in Irongate.

one. There are two of them half a block away.

“It’s a community atmosphere.

If someone purchases equipment, they’ll call and ask to use my forklift, to get their purchase off the delivery truck, and of course I say yes. We have a vested interest in everyone succeeding. I like our suppliers to stay in business. They’re an integral part of our putting out quality product.”

Land prices aren’t what they were 27 years ago when Davison bought, but he said that Irongate’s industrial properties still offer “some of the most affordable land in our area. A new industrial park now would involve significant unknowns. You’d have to develop, and it’d have to cost more due to current regulation.”

A few of the businesses: Print & Copy Factory, Tony’s Coffees & Teas, Bellingham Coffee Roasters, Scratch & Peck Feeds, Les Schwab Tire Center, Bergen & Co. Embroidery Works, TailsA-Wagging dog care, Granite Precast, Northland Diesel Service Inc., Avalanche Ranch Lighting, Coastline Equipment Inc. with conveying equipment and fuel tanks, CB Wholesale Inc. sheetrock, HD Fowler Company irrigation equipment, Yamoto Engine Specialists, WTA bus maintenance headquarters, and Matrix Service Inc. “A lot of businesses, large and small, are tucked in here,” Davison said. “Most people don’t know about them.”

“We have a vested interest in everyone succeeding. Our suppliers are an integral part of putting out quality product.”

— Brad Davison, A-1 Welding

WHATCOMBUSINESSALLIANCE.COM | 33

SPECIAL REPORT: LEGACY COMPANIES

The Shoe through the ages (l. to r.) — 1905, 1958, 2015 (photos courtesy of The Horseshoe Café) 34 | BUSINESSPULSE.COM

special report:

Legacy CompaNIes

by Mike McKenzie

D

iscouraging developments arose among some marquee companies on the Whatcom County economic front during the last several months – e.g., CH2M Hill (closing its local office), Alcoa: Intalco Works (laying off 465), Haggen (gone? In spirit, for sure.).

In light of that, we set out to highlight positive business stories and optimism entering 2016, and we settled on a group of companies in a Legacy Series featuring local brands of 100 years or more.

Their stories stand out because of what they stand for – representative of how long-standing companies have provided the spine for our revered life style and prosperity in Whatcom County. They demonstrate how constantly adjusting their course helps keep up with and usually ahead of the rollercoaster known as the economy.

They thrive in a wide scope of economic sectors, some of which will surprise you.

Perhaps you knew The Horseshoe Café as the oldest active restaurant in the state. But who knew that a retail store selling pet food and pet fish, Clark Feed & Seed on Railroad Avenue in Bellingham, is the longestoperating company at same location in

Whatcom and Skagit Counties?

Some recorded histories say that the generational Lewis family newspapers, the Lynden Tribune and the Ferndale Record, are the oldest businesses in Whatcom County (estab. 1888) outside of Bellingham.

These Centenarian companies appear everywhere, town and country. Just on our own Top 100 Privatelyowned Companies in Whatcom County list we found several: Haskell Corporation and Diehl Ford downtown, Samson Rope Technologies hidden away in Ferndale, Smith Gardens at baywater’s edge, Diamond B Constructors and Mills Electric near the airport.

Also downtown: Union Foundry, and Hohl Feed & Seed. In the county, the original Zweegman Farms acreage still produces dairy and crops under fifth-generation family owners. And, organizations like WWU and the Fairhaven Library and the Y’s have graced the area for more than a century.

We selected a compelling half-dozen that are illustrative of all the shining-star legacy businesses, the small and the tall. Our subjects range from having a handful of employees to more than 350.

They all, expectedly, had some qualities in common: perseverance, family pride, flexibility, versatility, and vision for overcoming the obstacles of change – especially rapid or drastic change – and for growth.

Two-thirds stem from generational succession, and two moved here and adopted us to extend their longevity.

Enjoy these outstanding stories, as we salute their rich heritage and their amazing longevity as the spine of the community’s well-documented and enviable life style and prosperity: Fresh Breeze Organic Dairy, Haskell Corporation, The Horseshoe Café, Lister Chain & Forge, Samson Rope, and Union Foundry.

WHATCOMBUSINESSALLIANCE.COM | 35

SPECIAL REPORT: UNION FOUNDRY

Mike Hood stands amid the machinery and piles of sand at Union Foundry where, in the background, the work crew builds rudders and struts for recreational boats.

Time has stood still at Union Foundry – same place, same methods, same family Article and photos by Mike McKenzie

M

ike Hood will tell you, in all seriousness, that “nobody hardly knows we’re here.” How can that be, as long as his company, Union Foundry, has been at it – since 1906? I knew it was there because I drove past it a bazillion times, but I was more in the camp of, what do they do in there that’s gone on a hunnert years?

36 | BUSINESSPULSE.COM

So, a phone call opened the door, and Hood walked me through it…and straight into a time warp.

Witness: an ages-old craft of metal work, in an ages-old building, using ages-old machinery.

The small crew makes parts for recreational boats supplied to Marine Hardware in Redmond.

They also work a few other random projects here and there, such as a current one of bronze artwork that will go into a charity auction in a fund-raiser in Blaine.

The company stands right where it first began with his great-grandfather John Angus Hood in ‘06.

That’s 110 years and counting, in the same, nondescript building on Grant Street where it meets Ohio a few blocks from Bellingham High School.

And the workers who toil four days a week through 10-hour shifts still use pretty much the same machinery and the same methods as the Union Foundry folks did in aught-six. “Nothing’s changed all that much,” Hood said. “We’ve only had one new machine since my grandfather’s day.”

What’s changed is the metal they work with – moving away from mostly cast iron to manganese

bronze (a.k.a., brass). What’s also changed is the product: from gears, sprockets, and about anything you needed in ironworks, to leisure boat rudders and struts. Union Foundry has had a niche in the maritime market, at one time producing parts for minesweepers.

About the time Mike’s grandfather, James Finlay “Fin” Hood took over the business, cast iron began falling out of favor. “We took a big hit,” Hood said.

Mike had started work by then, when he’d walk over from Bellingham High after school. “Not that far,” he said, “but it took me half an hour to get here.” He continued through the years, and took over the company upon his father’s death in 1998. Mike’s daughter, Stephanie, and his mother, Patricia, work in the business. Patricia keeps the books, just like Mike’s grandmother Ariss had before her.

Four employees create the boat parts, from olivine sand to brass – the same number that worked there when the company started in ’06, and the same number that worked alongside Mike and his father. It’s been pretty much steady-on. “We hit some highs around 2000,” Mike Hood said. “Like most everyone, 2008 hit us hard, and it was a double-whammy because the recession included high fuel prices. There was a glut of boats.”

UNION FOUNDRY: UNDER THE HOOD (The Ownership Tree) John Angus Hood, 1906-‘30 James Finlay “Fin” Hood, 1930-‘73 James Finlay Hood Jr., 1973-‘98 Michael Finlay Hood, 1998-present

The walls up front at Union Foundry display the history there.

Photos of labor in the old days.

Framed articles about the company.

And some visuals of Hood’s hobbies, like a row of miniature bronze cannons. “The type pirates used to signal with,” he said. For a time he sold them on line; now they’re display art.

Photos also show his interest in auto racing: Forrest Metcalf, whose car Union Foundry sponsors in the sprint races at Skagit County Raceway.

“The industry forced our hand,” Hood said, “and we set our focus on maritime hardware and it’s been good to us ever since.”

As we concluded our tour, Hood expressed how proud the work group is to steadily produce as many as 50 rudders in a day. “Just wonder,” he said, “who in the world’s buying all those boats….”

The crew at union foundry shovels olivine sand into a mixture they pour into molds to produce brass rudders and struts for a recreational boat manufacturer. Their methods have scarcely changed in 100-plus years.

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WHATCOMBUSINESSALLIANCE.COM | 37

LEGACY COMPANIES: FRESH BREEZE ORGANIC DAIRY

Barn burned down, Fresh Breeze Organic sprang from the ashes Unique bottling process put new stamp on continuing the family traditions

by Mike McKenzie

T

he milk barn burned down on Shawn and Clarissa Langley’s 400-acre dairy farm near Lynden in 2003 – more than 100 years and five generations after Shawn’s family homesteaded out there.

As a result, the Langleys made a radical, unique turn in their business model, and Fresh Breeze Organic Dairy bottled milk debuted as part of the second century of the Zweegman ancestral farming legacy.

Ernst Zweegman, a Dutch immigrant, settled in 1901 on what became four partitioned separate farms, three of which continue operations (read Leon Zweegman’s 38 | BUSINESSPULSE.COM

tracing of the family tree).

The uniqueness of Fresh Breeze?

Only one other independent dairy farm in Washington bottles its own certified organic milk, and it’s on the eastern side of the state. A few

The year 2003 brought sudden and stunning changes to Shawn and Clarissa’s family. Then operating as Langley Farms, the barn burned down, their son Kenny was born the next day, and a genera-

“We decided to go organic, which had become more of a thing around here….(it was) already close to how we already farmed. We kinda knew it was here to stay locally.”

— Clarissa Langley, co-owner, Fresh Breeze Organic Dairy

others in Whatcom County produce organic cow milk, but they wholesale to mass bottling distributors such as the co-op Organic Valley in La Farge, Wis.

tion off the Zweegman-BlankersLangley farm legacy passed as both grandparents died.

When the barn went up in flames, the Langleys faced a life-

The livestock barn burned to the ground on this 400-acre, then-Langley Farm near Lynden in 2003. With nearly all their cattle surviving, Clarissa and Shawn Langley renamed the farm and made a bold move into bottling certified organic cow milk – the first in the state to do so. Soon thereafter, Shawn (left) made Fresh Breeze’s first delivery to Eric Schuster, a manager at Community Food Co-Op, from the milk processing plant at right. (Photos courtesy of Fresh Breeze Organic Dairy)

altering decision of whether to rebuild or bail. They were scarcely more than a decade into succeeding Shawn’s grandfather, Bertus Blankers. Shawn, whose father Ken Douma owned Mt. Baker Silo (he suffered a fatal fall from a silo when Shawn was 2), had spent sum-

mers on the farm since 6th grade.

He moved to Lynden to work the (then) Blankers farm full-time the day after graduation from high school.

“I loved working on the farm with my grandpa (who is his mother Joyce Langley’s father),” Shawn

is quoted on the farm’s website.

Grandpa Blankers remained active at the dairy until his death at age 91. (Shortly thereafter, Grandma Blankers died on Christmas Day.) This was the life style their family knew and loved, so the Langleys pressed on at a time when a wave

114 years and counting: Many parcels in the Zweegman homestead

By Sherri Huleatt The Zweegman Farm roots near Lynden reach back more than 100 years. When you ask Leon Zweegman, owner and operator of Rozelyn Farm (part of the four-farm legacy), to recount his family history—he can do it to a tee.

In 1872 his great-grandparents, Ernst and Teuntje Zweegman, moved from Holland to Kansas to start a new life and business. Ten years later, they made their way to Nebraska.

It wasn’t until 1900, nearly three decades after moving to the U.S., that Ernst heard of Lynden, a small farming community in the Pacific Northwest. Lynden offered everything he was looking for: rich, affordable farmland and a community that reminded him of his home in Holland.

One year later he packed up and moved his family – which included more than 20 persons—to a piece of land in Lynden that, at the time, was simply tree stumps and shrubs.

Upon moving the entire clan, Ernst bought another two parcels of 160 acres at $4,500 each—that’s 320 acres for just $9,000, or about $28 an acre. Leon Zweegman estimated

that today one acre would cost about $20,000, so if his great-grandfather purchased the same land today—he’d pay a whopping $6.4 million.

When Leon’s great-grandfather neared retirement, he split the dairy farm up amongst his four children; each inherited about 80 acres. Today, three of those four adjoining farms remain owned and operated by the original family, and still produce dairy—some of which comes from cows that are the offspring of the great-grandparents’ original farm.

While they’re all separately-operated farms today, the owners give all the credit to the farm’s originators: Ernst and Teuntje Zweegman.

Leon Zweegman, who was raised on his grandfather’s dairy farm and owns it today, feels honored to have carried out his family legacy. “I got to live my dream,” he said.

“Farming was something I wanted to do ever since I got out of college and after doing service in Vietnam . . . and I’m still doing it 44 years later.”

continued on page 43

WHATCOMBUSINESSALLIANCE.COM | 39

LEGACY COMPANIES: FRESH BREEZE ORGANIC DAIRY of consciousness about organic foods had swept full-force across Whatcom County.

“Rebuild or sell the farm? We had to decide,” Clarissa Langley said in a telephone interview. “It’s what we’d done all our life, so we stayed.” They received livelihoodpreserving support from neighbors when most of their livestock survived the blaze. “After the fire, many community people helped with their trailers to move our cows to an open dairy in Ferndale.”

Back in the beginning, when the Zweegman estate underwent intra-family buyouts in the dividing of the property, the original farm produced beef cattle and crops.

The Langleys still grow grass, field crops, and corn silage for internal uses.

But after buying their share in 1992 and spending five years raising beef steers, the newlywed Langleys switched their core business to dairy. Six years in, the barn burned. “It was October, so we had

to have the barn for the livestock to winter in – and we decided to go organic, which had become more of a thing around here.”

At first they figured to sell to existing organic bottlers, much as they had sold their milk previously to Darigold like so many other Whatcom County dairies. She explained how Shawn had become aware of the popularity of organic milk back in the Eastern United States. Plus, they operated “already close to how we already farmed – grass-fed, not many chemicals,” she said.

“Shawn noticed that nobody was bottling their own organic milk in the state. We kinda knew it was here to stay locally.”

And that was that. They sold off their adult Herefords, and transitioned into raising their own feed and their own calves organically – Holsteins and Jerseys, about 300 total. Clarissa said they developed methods unique to Whatcom County. They pasteurize in two

200-gallon sealed vats, heating at a lower-than-typical temperature (140 degrees, compared to other processes at 161 and 250). Lower heat destroys pathogens, yet leaves more proteins in the milk for a richer flavor (as explained in detail on their website).

The operations have expanded into fleet-trucking of tankers from the farm to their nearby milk plant, and refrigerated trucks delivering to now more than 100 stores that offer Fresh Breeze. Their sales took root in early distribution to the area’s Community Food Co-Op and Brown & Cole grocers. Today, the company has 15 full-time employees.

Does Fresh Breeze’s future hold a sixth generation, perhaps?

The Langleys have two children, Cassidy, 14, and Kenny, 12. What say they? “Cassidy is undecided,” Clarissa said. “Kenny is interested in continuing the farm....”

There has never been a better time to buy local.

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LEGACY COMPANIES: HASKELL CORPORATION

Oil opened Haskell Corp. to a wide, new world

From plumbing/HVAC to three other ‘P’s – pulp, paper, power

by Mike McKenzie

F

red Haskell retired about a year ago, semisorta. He still has an active hand in his family’s legacy heavy industrial construction business, Haskell Corporation. But at the start of last year he passed along the day-to-day top executive role to his son, Evan.

42 | BUSINESSPULSE.COM

That made the fourth handoff to a Haskell son in the company’s storied 125-year history. Evan’s greatgreat-grandfather Edwin Haskell started the chain in a bustling, rather new city called Bellingham during 1890, and ran the company about 25 years.

The tree branches grew long and strong. Frank assumed control during the ‘teens, Red during the ‘50s, and Fred in 1984. (One of Red’s brothers worked in the company,

running the business in Skagit County for many years.)

Haskell Corporation has moved stealthily into the fore of heavy industrial construction and fabrication in this entire corner of the Northwest U.S., and ranked No. 4 last year on the Business Pulse Top 100 of privately-owned companies with reported sales topping $125 million.

To get there, Fred Haskell had very large footprints to follow, foot-

Approaching 50 years in the company since a pre-teen start, Fred Haskell (left) has turned the head office over to his son Evan, who started at age 14. Global expansion is high priority as leadership moves to 5th Gen. (Photo by Patrick Downing)

steps he’d walked in since he was 12 years old: F. Murray Haskell, known popularly as “Red,” was a community icon (a former Business Pulse Lifetime Achievement Award recipient, for one thing) who died at 79 in 2002.

By then, the company’s expertise and market niche had changed dramatically. “Our early reputation,” Fred Haskell said, “was in HVAC specialization (heating, ventilation, and air conditioning), throughout Whatcom and Skagit Counties.

Until the early ‘80s it was all about mechanical engineering in plumbing and HVAC.” A few years before that a transition set in. The catalyst was contracts in Alaska. “We started working the North Slope within the oil industry,” Fred said. “We became involved in modular construction for pipeline.” The business grew out of contacts built over a period of decades; the Haskell family had begun working in Alaska in 1949, “…and we’re still there today.”

Today, though, the scope is as broad within the heavy industrial trade as broad can get. The company does business in locations that cross oceans (Hawaii, American Samoa), North American tundra, and the mountains of the Great Northwest. And that’s just the geographical outreach.

In terms of performance, the Haskell Corporation website is tell-tale. It describes the company’s breadth of expertise as “a heavy industrial, general contractor, and fabricator,” constantly evolving and expanding. “We perform a wide variety of EPC (engineering procurement construction), DesignBuild, Construction Management, as well as field and shop fabrication

The business grew out of contacts built over a period of decades; the Haskell family had begun working in Alaska in 1949, “…and we’re still there today.”

– Fred Haskell

construction services to clients in power, pulp and paper, renewable energy, manufacturing & processing, ASME (American Society of Mechanical Engineers) assemblies and structural steel fabrication.”

Whew. Oh, wait…there’s more.

Under specific applications, the business stretches through nine bullet-pointed specialties, selfdescribing as having “the ability to self-perform (these) construction activities.”

This all started steamrolling into new arenas during Fred Haskell’s realm.

“In the ‘80s (just before he took over) we decided to move into industrial general contracting,” Haskell said. During his 31 years at the helm, they show major projects – ranging from several thousands of dollars upward to over $100 million – in American Samoa (since 1979), Hawaii, Alaska, California, Idaho, Utah, Oregon, and Washington.

About 1 ½ years ago Haskell Corporation opened a satellite office in Salt Lake City.

Clients include city and regional governments, the Parks & Recreation Department in Seattle, Boeing, and monstrous electric power plants such as in California and Alaska.

“We’re in the infancy of branching into the Midwest and Southwest, too,” he said. “Some of our newer emphasis is on refining and petro-chemical projects. Plus, a lot of modular steel fabrication.

“We’re focused on three P’s – pulp, paper, and power.”

As a youth hustling around the company doing whatever they’d let him do – “I started working in the business when I was 12” – he never foresaw all of this happen-

ing. After high school he started a five-year apprenticeship program.

“I enrolled at Western (Washington University), and a week later I got my draft notice.”

Haskell joined the Air National Guard and served six years. He later attended Western, but Haskell Corporation became his life. And now, he’s walked away from the daily operations and spends more time with family, fishing, and traveling, leaving Evan to carry on.

(The Haskells’ other son is with Rice Insurance.)

Evan Haskell went to Central Washington for a management degree, but like his father, he started working for the company as a youth. “He worked on summer projects in remote locations of Alaska,” Fred said. “He’s worked his way through the ranks, assisting mechanics, driving forklifts, and cranes. He’s done it all.”

Five generations of Haskell experience has produced, in Fred’s view, “One of our best driving principles – the family’s understanding of the strong construction industry, and a great passion for what we do.”

Looking ahead, Fred Haskell said that the company’s future lies in developing more globally in the marketplace, and continuing to become more diversified.

He’ll watch from at least some distance. “Next year will be my 50th year with the company,” he said. “It’s time to transition and move forward.”

And even further down the road?

Evan has three sons, all still quite young. Fred said, “We’ll see someday if one, two, three, or any of them want to continue….”

WHATCOMBUSINESSALLIANCE.COM | 43

LEGACY COMPANIES: THE HORSESHOE CAFÉ

‘The Shoe’ still fits

And diners wear it well morning, lunch, and late, late night, entering its 130th year

By Sherri Huleatt

W

ith its bright neon sign smack dab on Holly Street, you can hardly miss the old-fashioned exterior of The Horseshoe Café—affectionately known as “The Shoe.”

And while it can seem like just another familiar staple of downtown Bellingham, the restaurant and bar represent a surprising bit of trivia: The Horseshoe Café is 44 | BUSINESSPULSE.COM

Washington’s oldest still-operating restaurant. Some even guess it’s the oldest still-operating restaurant west of the Mississippi.

Speculations aside, The Shoe has been around for about as long as Whatcom County. First opening in 1886, the restaurant catered to local loggers, coal miners, and fishers, and offered a bounty of goods beyond local diner fare. They sold smoking accessories, fishing tackle, hunting supplies, and gifts and novelties. Back then, a fisherman could come into the restaurant and get

both breakfast and a fishing license.

During the 1950s and ‘60s The Shoe really took off. With the added traffic from large downtown retail stores, such as The Bon Marche and Woolworths, the diner had to hire about 40 employees just to keep up with demand. They offered weekend dancing and live music by the Ian Smith Trio, and in 1950 The Horseshoe Café became the first licensed bar in Whatcom County.

In 1958, the restaurant moved across the street to where it stands

Kate Groen (at the cash register) and her family opened up the kitchen, shined new light on the interior, and made other overhauls to the old-time look at The Horseshoe Café last year…but kept the home-style comfort food as their staple fare.

(Photo by Patrick Downing)

received a ton of positive feedback.

“A restaurant doesn’t last 129 years without the support of some wonderful patrons and the community,” she said. “For years, The Horseshoe has been that place where ‘everybody knows your name’—it’s quirky and fun, and sometimes a little crazy, but you always have a good story to tell and it really highlights the Bellingham community.

“As a family-owned business, it’s important to us that we continue

that same small-town feel that has helped to define and set apart The Horseshoe from other restaurants.”

The Shoe has 19 employees who serve a wide variety of diners, from the Sunday morning brunch crowd to the late-night college crowd.

Kate Groen credited their staff for truly making The Horseshoe Café unique, and she said she hopes to keep the customers coming in for another 129 years.

today at 113 E. Holly Street. The Shoe also underwent a number of renovations over the years, taking the interior from classic diner, to western-themed, to what it is now.

The Ranch Room—the restaurant’s bar – has stayed relatively the same over the years.

During the spring last year, new owners took over the restaurant and temporarily closed its doors during a remodel. In June they reopened

“For years, The Horseshoe has been that place where ‘everybody knows your name’—it’s quirky and fun, and sometimes a little crazy….”

– Kate Groen, co-owner with family, The Horseshoe Café

The Shoe with a new menu and new look. The family of owners (parents, offspring and spouses) – Brian Waller, Barb Groen, Kate Groen, Joe Russell, and Adam Groen – wanted to restore the restaurant’s ‘60s vibe, so they opened up the kitchen, gave it a stainlesssteel look, and put a breakfast bar along the front window.

Co-owner Kate Groen said the refurbished Horseshoe Café has

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LEGACY COMPANIES: LISTER CHAIN & FORGE

Once a buggy blacksmith now the industry leader in chains

Lister Chain & Forge’s 104-year success started in B.C., anchored in Whatcom County

By Sherri Huleatt

F

ounded by Ward Lister in 1911, Lister Chain & Forge Inc. got its start as a blacksmith shop in Vancouver, B.C., specializing in buggy parts. With the advance of technology and the changes in consumer demand the company gradually changed its business model to industrial chain and, eventually, anchors.

46 | BUSINESSPULSE.COM

Today, it specializes in largediameter marine chain and anchors for international and U.S. military craft. For example, two years ago Lister Chain & Forge produced the chain and two 30,000-pound anchors for the 2013 launching of the USS Gerald R. Ford, a new aircraft carrier scheduled for commission this year as the first of 10 in this classification.

Operating in Canada until 1988, Lister established operations at where it’s tucked away in the woods off the intersection of Portal Way and Loomis Trail Road (a massive ship’s anchor sits outside the gate),

just south of Blaine.

In the transition from its ‘smithing to manufacturing chain and anchors, the company served forestry, mining, pulp-and-paper, and cement industries. “Business was booming in those markets, but then they started changing methods and it dried up,” Stobbart said, seated in his corner office upstairs from the manufacturing facility.

“They modernized.”

And Lister Chain & Forge adapted and transformed with specialization in a niche market.

Entering its 105th year, Lister Chain & Forge produces about 2.7

“Just 25 of us putting chain and anchors on ships around the world, right here from little Blaine, Washington – can you believe it?” said Michael Stobbart, President of Lister Chain & Forge (far right). This group represents every facet of the operations: (from left) Orlando McCarty, Quality Manager; Wayne Pither, maintenance; Kristia Peschka, accounting; Bruce Wilson, VP of Operations; Nicole Larsen, quality; Dave Wager and Leif Salmonson, both production.

(Photo by Mike McKenzie)

million pounds of chain a year.

Stobbart’s office overlooks a sprawling property covered with a variety of heavy chains, and tons of anchors for U.S. military stealth, aircraft carriers, and many other large vessels.

Lister Chain & Forge appeared on last year’s Business Pulse Top 100 privately-held companies headquartered in Whatcom County at $8–10 million in sales, largely on contracts to supply U.S. Navy and U.S. Coast Guard vessels. As top executive Stobbart, with 32 years at the company, reports to a board of directors of an investment group in New York.

He worked his way through the company from a start as a teenager in the manufacturing plant where his father worked. At one stage as the ‘80s dawned the company sent him to Boston to open a sales office; it closed after a few years because, he said, “they could handle the business by phone.” He continued to sell for a few years out of their Richmond, B.C. office until guiding the market transition and moving here.

With Stobbart managing the vision for sales and marketing in a budding new specialty, today the company stands alone in its industry. Specifically, Lister Chain & Forge Inc. is the last remaining manufacturer of anchor chain in the U.S., and the leading manufacturer of large-diameter anchor chain and buoy-mooring chain for the U.S.

Navy and U.S. Coast Guard.

Stobbart credits the company’s success to its dedicated workforce and the demonstrated ability to change with the shifting economy and methodology by opening the satellite operation to tap into the U.S. marketplace. On his office wall hangs the U.S. operation’s first check, for $23,400, dated in 1990.

“It takes a while to set up a satellite manufacturing facility for what we produce,” he explained the nearly two-year gap between opening in ’88 and first payment from their initial customer that year.

By 2002 the company decided to close the Vancouver facility and move the entire operation to the U.S. They put a renewed focus on welded-marine chain – their most viable product. They moved with a

duction, engineering, sales, or management, Stobbart said, “Everybody puts a genuine focus on customer service and making a quality product.”

Another significant reason for the company’s success over the last few years, Stobbart said, was a mission to source their supplies locally.

He said that when they first moved to Whatcom County they still relied heavily upon B.C. suppliers.

Over the last eight years they’ve made many new connections with local businesses, and thereby cut costs.

“The level of support we’ve received in the supplier community has grown leaps and bounds,” Stobbart said. “Whether it be with product support from machine shops and lab testing, or indirect

“The level of support we’ve received in the supplier community has grown leaps and bounds.”

– Michael Stobbart, President, Lister Chain & Forge Inc.

lot of hope and not a lot of certainty in their rapidly-changing world.

Since moving here permanently, though, Lister has more than doubled its sales.

Stobbart displayed openly his strong feelings about the work team and asked that several of them appear in a group photo. “Just 25 of us altogether, putting chain and anchors on ships around the world, right here from little Blaine, Washington – can you believe it?” he said, smiling. “We’re very proud of what we do.”

About half of the work group has been with the company more than 20 years. Whether they’re in pro-

support of production consumables and equipment maintenance, we’ve substantially increased supplies from within Whatcom County and it’s been very rewarding.”

Stobbart said sourcing supplies locally has allowed for better communication in the supply chain flow, and a greater understanding for how local businesses can help one another.

Going forward Stobbart hopes to tap further into the commercial marine market, while also expanding Lister’s product line, continuing a long and strong history and forging the foundation to see it through its second century.

WHATCOMBUSINESSALLIANCE.COM | 47

LEGACY COMPANIES: SAMSON ROPE

Tony Bon, outgoing CEO Samson Rope Technologies

Andrea Sturm, new CEO Samson Rope Technologies

Bon to Sturm at Samson Rope (estab. 1878)

A music-school dropout with 41 years’ tenure hands the executive baton to multi-lingual marketer and the firm’s first woman CEO Article and photos by Mike McKenzie

48 | BUSINESSPULSE.COM

E

ver climbed a rope?

Swung on one into a creek? Towed with one? Tug o’ war? Been at the end of your rope?

Except for the last one, odds are that if you have used a rope for any other purpose, from backyard to boat, from flag-raising to the farmyard, the rope was designed and manufactured at a remote, woodsy location on a dead-end road in Ferndale called Samson.

More formally known as Samson Rope Technologies in its 138th year of operations, it has created a huge footprint on the Whatcom County business scene in a short span as one of the 10 highest-producing private companies.

Since 1984 the company has grown more than 500% from $18 million in 1984 annual sales to more than $100 million in 2015, just its 27th year with headquarters in Ferndale. And isn’t even close to being at the end of its rope.

Samson is known for its firsts, mostly in rope-making innovation.

On New Year’s Day, the company made its most recent major news flash with a staffing first: a woman as top executive. Andrea Sturm, the new president and chief executive officer, took the reins from Tony Bon, who will retire after 42 years with the company (CEO 2013-’15, and once a finalist among nominees as the WBA/Business Pulse Business Person of the Year Awards).

Bon will remain on staff this year to help Sturm through the transition, with an emphasis on new markets and research/innovation. Departing as general manager of Fluke Corp. in Everett, Sturm arrived at the home office in November and spent a couple of months becoming acclimated.

“First and foremost, it’s a great honor to lead a company with such a strong history and track record,” Sturm said during an introductory interview. She spoke English.

Native to Germany, she could have said it in German, French, Dutch, or Spanish – all learned from international education, travels, and career experience.

“I’m new to the rope industry.

But I have much familiarity with manufacturing durable products.”

That’s what Samson is famous for.

In business more than 100 years already before arriving in Ferndale, Samson operated under a variety of company names since the founder’s J.P. Tolman Company formed in 1878 in Shirley, Mass.

Samson Rope created the first patented switch-braiding machine, has the oldest, active, registered trademark in the U.S., helps NASA space projects, and held rockstar Katy Perry aloft during a Super Bowl halftime show.

Through the years since inception Samson has created indelible marks habitually. Examples: • The first patented switchbraiding machine in its industry, 1883. Its logo, depicting Samson slaying a lion, is the oldest, active, registered trademark in the United States, circa 1884.

• Since the Friendship Space program came about in 1962, Samson double-braided ropes have been used to retrieve all launched NASA space capsules. In 1977 on the first Space Shuttle flight, NASA used Samson ropes to operate the shuttle’s cargo bay doors.

•

Holding pop-star performer Katy Perry aloft during a Super Bowl halftime show.

All of Samson’s history is marked by first-of-this and firstof-that in fiber and rope technologies. Tolman, an engineer out of Massachusetts Institute of Technology (MIT), set the tone with more than a dozen patents in the early years (then called Samson Cordage works), and the company has averaged a patent a year since 2003.

The year 2013 brought two more landmark transitions – in executive leadership, and in expansion: 1. Leadership transferred from then-owner Steve Swiackey to Tony Bon. Business Pulse featured Swiackey on the cover of the Summer (July) Edition that year; he had owned Samson since 1984.

2. The new Innovation Center became a 15,000 sq. ft. addition to the plant to house the growing research and development team.

Both Bon and Sturm indicated that R&D will receive primary attention in her new role, coming off of Samson’s best year ever. Sturm will draw on years of expertise in product development and organic growth of companies and products. Before Fluke and its electronic testing tools, she helped Philips Consumer Electronics as VP of global marketing/sales in the Oral Healthcare line of Sonicare products. She earned degrees in international management, marketing, and an MBA. “I’m learning very fast,” Sturm said, “getting to know the team and rope-making…spending a lot of time on the manufacturing floor where there are always new shifts (of workers). What I enjoy most, and my main mission here, is to drive and accelerate continued growth. I enjoy developing customer applications.”

A corporate recruiter found her on behalf of Samson, culminating WHATCOMBUSINESSALLIANCE.COM | 49

LEGACY COMPANIES

“I’m learning very fast…to know the team and rope-making….What I enjoy most, and my main mission here, is to drive and accelerate continued growth….Who’d have thought rope could be in my future?”

– Andrea Sturm, new President/CEO at Samson

a wide search. Sturm, having succeeded in a variety of industries, said she’s always enjoyed “learning new things…but who’d have thought rope could be in my future?

At 18, I didn’t say, ‘I want to be CEO of a rope company.’ I’m humbled by this opportunity.”

Samson has had a manufacturing facility in Lafayette, La., tied to its inventive early ventures in the off-shore oil and gas industry.

Once upon a time the company had offices in London, England (since closed), and recently they expanded into Singapore.

Now they’re looking at the United Kingdom again, and Sydney, Australia, and mainland Europe, Bon said in a talk on the phone. “About 30 percent of our business is international,” he said.

Swiackey and Bon have overseen enormous and rapid exponential growth in revenues by dominating some industries, such as shipping, and by daring to explore new horizons, such as energy, international mining, and a recent breakthrough synthetic product for cranes.

Bon’s introduction to Samson was equally as unlikely as Sturm’s.

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“I’m a music school dropout,” he said.

He was a budding guitar player attending a music institute in Boston as a youth. He quit, and, needing a job, hired on with Samson as a materials handler on the factory floor. “I fell into the rope industry,” he said. “You might say I majored in ropology.”

Recalling the remarkable burst at Samson from the centennial year into the ‘80s that brought the move and renaming of the company, Bon pointed to 600 percent growth.

“When we moved to Ferndale, I think we had 35 employees here and about 75 in Massachusetts.

We’ve grown to over 200 here, and 350 total.”

He said that since 2000 Samson has stepped up the strategic planning mode for high-performance rope solutions, market development, and international strategies, all built on what they call “the Samson Advantage – peace of mind.”

The company’s value statements greet visitors in the entry lobby.

Samson contributes heavily to United Way and the Boys & Girls Club. “We have developed great core strengths,” Bon said. “Quality, integrity, doing things better. And strong emphasis on employees, children, families, and community.”

The cornerstones for another 100 years, it would appear.

“I certainly won’t live to see that, but there are a variety of new industries where we can bring our skills to bear with new products,” he said.

“We’re very focused on the long term.”

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BUSINESS PROFILE: IMCO CONSTRUCTION

52 | BUSINESSPULSE.COM

The Imco Construction bulldozers showed up quickly to assist in clearing the destruction of the horrible 2014 mudslides near Oso, Wash. (Photo courtesy Will Austin Photography)

‘Scrappy’ style gives way to ‘strategic and intentional’ Formal steps IMCO Construction took to manage the transition of leadership in a family business

By Gerald Baron WHATCOMBUSINESSALLIANCE.COM | 53

BUSINESS PROFILE: IMCO CONSTRUCTION

Frank Imhof continues as CEO and chairman of the internal advisory board that the company formed after a family transition-planning session at Harvard. “The whole family went up there twice,” Imhof said.

(Photo courtesy Will Austin Photography)

F

amily-owned businesses often don’t succeed with their second generation. About 30 percent of companies make that leap successfully, and just 12 percent survive into the third generation, according to reports compiled by the Family Business Institute that specializes in management succession planning.

IMCO General Construction, a Whatcom County-based construction company now into its fifth year of family leadership transition, looks to beat the odds.

To understand the full nature of this challenge, it’s important to understand who IMCO is and where it came from. Given the complexity, the variety, and the risk involved in construction projects in general, and particularly given the kinds of projects IMCO traditionally takes on, the transition to a new generation of leadership could be especially difficult.

54 | BUSINESSPULSE.COM

Frank Imhof, who founded the company with his wife Patti in 1978, said the transition is still very much in progress. The family management team has learned a great deal in the process of how IMCO has approached business and succession, yet Imhof said many lessons remain.

“Intentional” is the word that four family members used most often to describe how they went about the transition, as well as how the company is growing and operating now.

Intentional and strategic. That is seen both as a description of IMCO’s president, Tyler Kimberley’s approach and as a contrast to the scrappiness and entrepreneurial character of IMCO under Imhof ’s leadership.

Kimberley is 35 years old and married to Ashley, who is Frank and Patti’s youngest of three daughters. Kimberley was named the president of IMCO in 2013, with Frank remaining as CEO and Chairman of the Board of Advisors. In this arrangement Kimberley runs the company operations, reporting to Frank.

According to co-founder Patti Imhof the

succession process started with doing research.

“We read a book about families in business,” she said, “and talked to families who have experienced succession planning successfully and not so successfully.” This research led to the most important decision the Imhofs made: They traveled together as a family to Harvard to participate in a week-long transition planning session with other family business owners.

That experience was a game-changer. Ashley Kimberley said the discussion focused on three overlapping circles: shareholders, family, and business management. The keys were establishing separate structure for each of these elements, and including family members who were not involved in running the company.

The structure that came out of this included a Board of Advisors. Although all shares are held in the family, the Advisory Board consists of Frank and Patti Imhof, Tyler Kimberley, and one other member of the family who rotates through the board role. It also includes two non-family members who are not involved in managing the company. Tyler Kimberley said, “This board brought an outside authority that can oversee the transition, oversee Frank’s and my roles, and has some authority in the company.” It was an important step toward formalizing management structure and providing outside expertise, influence, and accountability.

Another critical step was forming a Family

After a session at Harvard, IMCO formed an Advisory Board of the management triad plus two non-family members outside the company…and a Family Assembly – the parents, three daughters and sons-in-law, and grandchildren – that meets twice a year to evaluate, discuss, and have fun.

Assembly. With two other daughters not directly involved in the business, plus a son-in-law and grandchildren entering adulthood, it was important to have a formal way of involving, informing, and dealing with family and business issues.

Twice a year the Family Assembly meets to evaluate and discuss – and have fun. “We look at successes and failures, not just the process but the emotions as well,” Patti Imhof said.

Wildfires, harsh winter, and no roads to the copper mine site create special challenges for the IMCO crews seen gathering here in Holden where they’re building a water treatment plant.

(Photo courtesy Will Austin Photography)

Everyone in the family over the age of 14 is invited, which means three grandchildren of the founders have become part of the Family Assembly. The same person who facilitated the Imhof family at the Harvard program flies in to facilitate these meetings. More than work, the family plans fun things to do as well as learning experiences. The assembly provides each an opportunity for involvement and to check progress – something they are all invested in.

Patti Imhof emphasized how important this family involvement is. “The family is supportive of what Ashley and Tyler are doing,” she said.

“Everyone is at the table, creating opportunity for the next generation.” While Tyler as president and Ashley as head of marketing and communications are the family members actively involved in managing the company, qualified family members can join the company by following a clearly-defined process. For those who want to become part of management, the process requires a college degree and relevant work experience with a different company.

While that formal process was not in place when Tyler Kimberley became involved, it closely described the approach that he and Ashley took toward company leadership. Tyler graduated from the construction management program at the University of Washington, then worked for Frank Coluccio Construction in Seattle and Hawaii.

“We took a very cautious approach to stepWHATCOMBUSINESSALLIANCE.COM | 55

“I had no idea what running an organization this size was going to take….Frank (Imhof) was unique, pushing me faster than I would have on my own. I appreciated being the one tapping the brakes, rather than trying to push him out of the way.

That’s one reason why it’s been successful.”

— Tyler Kimberley, President, IMCO CEO Frank Imhof (left) and President Tyler Kimberley look over project plans in what is known as the “Big Room” at IMCO Construction offices off I-5 northeast of Ferndale.

(Photo by Patrick Downing)

ping in,” Tyler Kimberley said.

“We moved to Seattle and set up a Seattle office.” Tyler said he did it because he wanted to make the best use of his urban construction experience, bring in some new kind of work to the company, plus “give

myself some autonomy.” He proved he could generate new business, particularly major private clients (in addition to the government contracting that IMCO has relied on) plus conduct projects profitably and manage his team well.

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Proving himself made it a relatively easy step into a VP of Operations role. “Once it became time to step into the president role, we needed to move and operate business from headquarters,” Tyler Kimberley said. So Ashley and Tyler moved the family, now with three young children, to Bellingham and to the base of operations in the company’s facility off of I-5 near Ferndale. This headquarters was designed by the talented duo of daughter Heather Cashman and architect son-in-law John Cashman who operate their design/build construction business, Axiom, in Seattle. John sits on the IMCO Board of Advisors as the family representative.

Over 35 years of Frank Imhof ’s leadership, with Patti playing a vital role, the company evolved into one of the most prominent and respected local businesses. IMCO works extended far beyond Washington state, even beyond the Pacific Northwest. Recently they closed operations in Guam after five years there, and completed projects as far afield as Guantanamo Bay for the federal government. IMCO became known for a strong anti-drug policy, for an exceptional safety record, for innovations in construction technologies such as early use of GPS-guided equipment and 3-D modeling. The company website features use of unmanned aerial vehicles (UAVs), better known as

Tunnels under I-90, abandoned mine near Lake Chelan among variety of IMCO project locales Many in Seattle these days might not be familiar with the name, but they are very familiar with IMCO’s work. The Interstate 90 tunnels connecting Seattle’s floating bridge to Mercer Island and beyond are getting new HOV lanes and safety upgrades to prepare for a Sound Transit train.

This is a $120 million IMCO project – the company’s largest project to date. The massive project requires frequent traffic diversions that cause commuter delays, as well as requiring IMCO crews to work all hours on the weekends to get the most done while causing the least disruption to the city traffic.

This is just one of numerous extremely challenging construction projects the company has taken on. Along with this project for the Washington State Department of Transportation, IMCO’s team is working for one of the largest mining companies in the world, Rio Tinto. IMCO is

building a water treatment plant at the site of an abandoned copper mine in Holden near Lake Chelan.

Holden is not accessible by road, so IMCO must barge all work materials all the way across the lake. Crews last summer had to halt work when wildfires threatened the site and the surrounding village, and harsh winter conditions added to the challenges.

Boeing is another present and past IMCO client. A current project is building a wastewater treatment plant near Paine Field.

Other projects include an addition to the City of Spokane’s Water Reclamation Facility; installing new tracks and railroad utilities for Amtrak at the Seattle King Street Station; a $30 million project for Everett’s Water Pollution Control Facility; pipeline maintenance and repair for Kinder Morgan, and reclaiming 127 acres of tidal marsh land to improve snow geese habitat on Fir Island in Skagit County for the Washington Department of Fish and Wildlife.

These ongoing projects reflect the wide range and complexity that IMCO has successfully completed over its 35-year history.

The company has received numerous awards and honors, including “Best Place to Work.” During 2015 IMCO received four awards from the Association of General Contractors of Washington (AGCW). One was a recognition for community service, two were Construction Excellence awards, plus AGCW handed the Grand Award to IMCO for the company’s work at the Oso landslide site.

IMCO’s team moved in shortly after the tragic landslide and helped restore Highway 530 a week ahead of schedule and $1.5 million below their budget of $4.9 million.

Community service has long been a hallmark of IMCO culture.

It may be best known in Whatcom County for its frequent and generous community contributions.

The AGCW Award recognizes the donation of more than $1 million given back to community causes in the last 10 years, and also the practical support of construction assistance to local communities. A prime example: helping Monroe’s Housing Hope Village project with construction labor and expertise.

(Photo courtesy Will Austin Photography) WHATCOMBUSINESSALLIANCE.COM | 57

BUSINESS PROFILE: IMCO CONSTRUCTION He admitted that the pressure got to him for a while. He talked about how he felt the need to be productive before he learned that working with his team to teach and train them was being productive. He also had to learn to avoid overthinking his decisions and disallowing the pressures to overwhelm his life.

“I had to reevaluate the impact my job was having on me personally,” Kimberley said. “I was letting the roller coaster of my job directly impact the roller coaster of me as a person. Have a great day, and I’d be in a great mood; The Imhof family traveled to Boston for a session in family-business transition bad day, I’d be in a bad at Harvard. This year a third teenager from among the eight grandchildren will mood. That wasn’t going join the Family Assembly set up by the company. to work. I had to get to the (Photo courtesy of IMCO) point I could have a rough day at work and not take drones, to document and collect critical data. it home. I gave myself permission to enjoy the How does a young son-in-law step into shoes ride, the challenges, the successes and failures.” of a man who so successfully built a sizeable Where Kimberley’s style is intentional and company with unique entrepreneurial abilities, strategic, Imhof ’s is fast-moving and techniinventiveness, pluck and some self-described cal. Kimberley is focused on relationships and “plain old stubbornness?”Tyler’s answer, echoed building a team; Imhof is fascinated by spreadby the others in the family management group: sheets and is a stickler for details. Yet the two Not try to be Frank Imhof. fundamentally agree on the core values of family, integrity, excellence, teamwork, competitiveness, and hard work. That central focus is an important part of making this transition work.

“We read a book about families But Patti Imhof made it abundantly clear that it is never easy. in business, and talked to families She spoke to the emotions involved. “It’s who have experienced succession hard for Frank to sit back and watch someone else take the lead, but he thinks he has the right planning successfully and not man taking the lead and making the decisions.” so successfully.”

Kimberley credited Patti Imhof as playing a very important role as “Frank’s coach.”

— Patti Imhof, Co-Founder, IMCO Kimberley said, “A lot of times I can hear her voice in him.” Still, he gave Frank all the credit for turning over the reigns. “Frank was unique, pushing me faster than I would have on my own,” Kimberley said. “I appreciated being the Stepping into those shoes, however, repone tapping the brakes, rather than trying to resented some big opportunities for learning. push him out of the way. That’s unique, and “I didn’t really know what I was getting into one reason why it’s been as successful as it has.” even though I went into it cautiously,” Tyler It’s also clear that the Imhofs aren’t going Kimberley said candidly. “Still I had no idea anywhere, other than their frequent trips abroad what running an organization like this was or, for Frank, on hunting trips. They plan to going to take.”

58 | BUSINESSPULSE.COM

stay actively involved in IMCO as long as they can. Patti Imhoff said, “It’s exciting because we are not stepping out of being involved, we can still participate in the vision.

We both love the big picture, the vision. When we started it wasn’t about vision, it was just survival. It’s so nice to be in a place where we can participate in something with so much potential, and having the right people.”

Instead of looking at what he might have lost in transition, Frank Imhof said he sees it as an advantage: “In a way it frees up a lot of my time to get involved in areas I feel need more of my time,” he said.

“Backing out of operations allows me to look at areas I haven’t looked at close enough in the past.”

Frank is well-known locally for his involvement in community activities such as his role on the PeaceHealth St. Joseph Medical Center Foundation board of directors. He also is taking advantage of more available time to work on issues important to him, such as open and fair competition in the construction industry. He will become president of the statewide Association of General Contractors in 2018, after using the next two years to work through the chairs and to prepare for his leadership role. It will involve travel to Washington, D.C., as well as numerous industry meetings and conferences.

For strong family-oriented business leaders like Frank and Patti Imhof, transitioning ownership and leadership to the next generation never comes easily – as sadly demonstrated by the statistics and so many broken family relationships in other family-owned companies. But Frank said, “Actually I’m enjoying the transition. I still have plenty to do, but I can get out of here when I want and be comfortable that the company is well managed.”

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INDUSTRY REPORT: SOLAR ENERGY

Solar industry bright in Whatcom County Low costs, high incentives power local growth Article and Photos by Cheryl Stritzel McCarthy 60 | BUSINESSPULSE.COM

Eric Wentz, VP/Marketing, Alpha Technologies Inc. in the Bellingham manufacturing facility.

N

ever mind our clouds and rain.

The future of the solar power industry in Whatcom County is bright – pun intended – according to Karl Untershuetz.

He’s the director of business development at itek Energy in Bellingham, a solar panel manufacturer that dominates the market in Washington, and beyond. “The industry is on the cusp, right on the brink, of being mainstream,” Untershuetz said. “It’s not latent or high cost anymore.”

Nearly everywhere you drive throughout the cities and outlying areas of the county, you’ll see solar panels on homes, businesses, even barns.

“We’re beyond the early adopter stage,” agreed Eric Wentz, the vice president of marketing at Alpha Technologies Inc. in Bellingham that includes design, manufacturing, and distribution of all solar components except panels. Alpha Technologies is a global firm headquartered in Bellingham as part of

the conglomerate Alpha Group (No. 1 on our annual Top 100 Private Companies list the last two years).

The solar industry’s impact on Whatcom County adds up to many millions of dollars annually. itek Energy, operating in the Irongate industrial area in north Bellingham, makes 80 percent of all solar panels installed throughout Washington.

“We’ve been doing 100 percent growth for four years straight,” Untershuetz said. “We look to be north of $30 million in revenue this year.”

Itek started with two employees in 2011, and now employs 78. The company is on target to build 20 megawatts of solar panels during 2015, up from two megawatts of panels in 2012.

Bellingham’s main solar installation companies, Western Solar Inc. and Ecotech Solar, show similarly robust growth. Dana Brandt, founder of Ecotech, started as the first solar contractor in the county in 2004 operating by himself. He said that a prevailing attitude was that solar wouldn’t work in Whatcom County’s climate. A decade later, costs have dropped, WHATCOMBUSINESSALLIANCE.COM | 61

INDUSTRY REPORT: SOLAR ENERGY incentives are generous, and “nearly everyone knows that solar works here,” Brandt said. Ecotech now has nine employees.

Itek Energy is seeking an additional 50,000-square-foot building to accommodate growth and increased manufacturing capacity to nearly double operations. The company has 28,000 square feet of space squeezed with one manufacturing and four storage facilities, and it operates two shifts over 20-hour days, four days a week.

In 2008, Western Solar Inc. moved its two employees from the founder’s Bellingham garage into a 2,500-square-foot building downtown. Then in April this year this solar-panel installer moved to a new 5,500-square-foot building in north Bellingham. Western now employs 14.

The “renewables” sector of Alpha Technologies Inc.’s international commerce, which includes solar,

is on track to become the company’s next $100 million division, Wentz said. Alpha employs 350 at its Bellingham administration and manufacturing facility near

ally. Across the U.S., 180,000 people work in the solar industry, compared to 93,000 in the coal industry.

“Costs have dropped significantly, incentives are incredibly generous, nearly everyone knows solar works here, and knows someone who has it.”

– Dana Brandt, founder, Ecotech Solar

the airport, more than one-third of its approximate 1,000 employees worldwide.

Whatcom County is a microcosm of the solar movement nation-

GOVERNMENT’S ROLE Western Solar’s story represents the trend. General Manager Josh Miller expects a continuance of the 50 percent growth they’ve seen

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every year since 2008, he said, “…

As long as rebates are in place.”

Government rebates and incentives spark industry growth in Whatcom County and Washington.

Solar can make economic sense for residences or small businesses. How does it work? Broadly: • A federal tax credit of 30 percent, net metering (the public utility issues a credit to you if your installation creates more energy than it uses); • In-state production incentive (utilities pay more if you buy equipment manufactured in Washington); • Sales tax exemptions.

“The cheapest installations drive the market,” Miller said.

That means most buyers nationally choose made-in-China panels.

But not in Washington; here, the greater the percentage of equipment made within the state, the higher your rebate.

“The longer people wait, the fewer incentives,” Miller said. The idea is for incentives to power up a nascent industry, bringing manufacturers and installers into the business, then taper off incentives over several years.

“Subsidies are available today, with no guarantee they’ll be available moving forward,” Wentz said.

Untershuetz said, “Homeowners in Washington get a better deal (on solar) than anywhere else in the country.” Itek Energy reported 95 percent of its sales as residential applications. “We are taking advantage of opportunities in Washington to grow; we are using it as an on-ramp to compete in the national market.” Counting the federal tax credit, net metering, Washington’s incentives, and sales tax exemptions, the return on investment (ROI) for customers here runs 4-5 years.

That might change. Washington will likely reduce the incentive rate next year, lengthening a solar customer’s ROI. Factor in that equip-

ment prices are lower now than five years ago, and “now’s the time,” Untershuetz said.

Solar can be good for small facilities because rebates favor buildings of less than 5,000 square feet.

Western Solar Inc. has installed systems for Columbia Valley Water Association in Glacier, International Longline Supply fishing store in Bellingham, a building at Bellingham Technical College, and Mountain Veterinary Hospital

on Mount Baker Highway.

Miller said small businesses in Washington can realize an ROI quicker than anywhere else in the country. A 10,000 watt, 36-panel system – what a large home or small business requires – maximizes state incentives.

The 62 solar panels on itek’s own manufacturing facility, “a relatively small system,” offsets 16 to 20 percent of its monthly electricity demand, Untershuetz said.

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INDUSTRY REPORT: SOLAR ENERGY The main driver – the power behind solar – is the 30 percent federal tax credit, which is set to expire December 2016. “That will be a watershed moment for the solar industry,” Miller said, “and potentially devastating for the industry in Washington. I’d like the industry to stand on its own…(but without incentives) the price of solar panels hasn’t come down to where we can produce power at the same cost as the dams.”

Miller’s message? “Do it sooner rather than later.” A system that’s turned on by midnight Dec. 31, 2016 will qualify for the credit.

Also, the Washington state rebate of $5,000 a year will last until June 2020. If you had installed solar in 2010, you would receive 10 years of payments. If you install now, you receive five years of payments.

In 2010 Washington launched its current rebate program for madein-Washington equipment, and the federal government raised the solar tax credit from $2,000 to its current 30 percent of the system. All of it came together to trigger explosive growth.

The federal tax credit could be extended, reduced somewhat, or expire, Untershuetz speculated. If the legislature takes no action, the residential credit expires, and the commercial credit lowers from 30 to 10 percent. Though some big projects would still be viable, “It will impact and slow the market,” Untershuetz said.

a global yet local icon of the energy industry (Cherry Point Refinery).

The cost of installing a watt of solar capacity has plunged over recent decades and could halve again in five years, according to business management consultant group McKinsey & Company (quoted in The Economist).

Globally, the sun provides enough energy to provide for all our electric needs today, Wentz said, but added, “The vast majority of that resource goes un-harvested.

Solar voltaics technology follows Mother Nature’s map of harvesting

energy from the sun, and changes it to a form we can use.”

Solar is here to stay, Miller said.

The cost per mile of an electric vehicle is substantially lower, and Washington consistently ranks among the top states for per capita use of electric vehicles. “You can produce your own electricity through renewable energy, but you can’t produce your own oil or gas,” Miller said. “I think oil companies need to be afraid. The switch-over to electric vehicles is happening faster than a lot of people expected.”

Some people like having their

“We’ve been doing 100 percent growth for four years straight.”

– Karl Untershuetz, director of business development, itek Energy

DO-IT-YOURSELF ELECTRICITY That potential lull in the market could be temporary. “Climate change is real. We are finding power sources to mitigate that, and solar is a major player,” Untershuetz said.

A decade ago, solar and other renewables provided less than 1 percent of energy worldwide. That has risen to 3 percent, and will reach 8 percent by 2035, according to a recent energy research paper by BP, 64 | BUSINESSPULSE.COM

Carly Gillilano, assembler, solders wires at itek Energy.

Trish Haveman, marketing coordinator, Western Solar Inc., shows the two solar arrays outside her Whatcom County home.

How solar works How does sunlight striking your roof become power for your house below?

Crystals of silicon are grown in a lab, then sliced into thin wafers. The wafers are charged, one side negative, one side positive.

A photon from the sun strikes this solar panel’s surface, making those electrons move and produce electricity.

Electricity travels through wires in the back of the solar panel through an inverter, and into the main panel of the house.

Power from sunlight comes in DC form. The inverter changes it to the AC form that consumers use.

Karl Untershuetz at manufacturer itek Energy said solar users can offset 40-50 percent of their household’s needs, if they are efficient users. That means using LED bulbs, efficient appliances, and tightly-sealed doors and windows.

Trish Haveman, marketing coordinator for Western Solar Inc., achieves 90 percent of her home’s energy needs by utilizing two 24-panel, ground-mount arrays on her family’s property on Smith Road in Whatcom County. Solar also powers their two electric cars.

Produce more electricity than you need, and it goes into the utility so others can use it. You get a credit to use for power later.

Whatcom County’s abundant sunshine this year has solar customers reporting 20 percent more production than usual. Installations produce best without shade, angled south. West and east also work. They don’t have to be on a roof; if you have space, panels can go on pole or ground mounts.

—Cheryl Stritzel McCarthy WHATCOMBUSINESSALLIANCE.COM | 65

INDUSTRY REPORT: SOLAR ENERGY

“Solar voltaics technology follows Mother Nature’s map of harvesting energy from the sun.”

– Eric Wentz, VP/Marketing, Alpha Technologies Inc.

Eric Wentz, vice president - marketing of Alpha Technologies Inc., holds a charge controller, used in remote sites in India, in the Bellingham manufacturing facility.

own, DIY personal energy source, Wentz said, and that market – producing your own electricity, yet still connected to the public grid – spells growth. Alpha celebrated its 1 millionth installation all the way back in 2001. The company’s various businesses make systems that serve consumer uses ranging from a single off-grid dwelling, to micro-grids of a dozen homes, to large-scale utility farms.

“Energy needs vary depending on the time of day,” Wentz said.

Some locales charge more at peakuse times. “Our technology allows you to sell excess electricity to the utility at times that it’s financially advantageous to the consumer.”

SAVE MONEY? SAVE THE ENVIRONMENT?

Karl Untershuetz, business development director, at itek Energy's manufacturing facility in the Irongate industrial area.

66 | BUSINESSPULSE.COM

The 2010 legislation also changed the type of customer in Whatcom County, as throughout the state. Before 2010, Miller said, his solar customers were “100 percent people who wanted to save the environment. Now people buy it because it saves them money (through) the fantastic rebate programs. Solar from a financial perspective is less controversial than

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Like you, members of a Vistage Private Advisory Board are proven business leaders and critical thinkers.

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INDUSTRY REPORT: SOLAR ENERGY

“You can produce your own electricity through solar, but you can’t produce your own oil or gas. Oil companies need to be afraid.”

– Josh Miller, GM, Western Solar Inc.

global warming. I never know (my customer’s) political leanings, but saving money is not controversial to anyone.”

More controversial nationally is President Obama’s proposed 32 percent cuts in carbon dioxide emissions by 2030. To encourage earlier compliance, the government might offer credits to states that boost renewable energy.

The landscape of the industry might change, but the basic need for energy will not. “The industry moves where incentives are highest,” Miller said. Right now, that is Washington.

“The need for global energy will grow with population growth,” Miller said. “We see it as an unlimited, untapped market, much like the phone industry. Most of the world had no phones. Then they skipped landlines and went right to cell phones. We expect alternative energy to become the primary energy of the developing world.”

Alpha provides solar power systems to cell phone towers around the world. In many cases, it’s either 68 | BUSINESSPULSE.COM

that or diesel. “A diesel generator requires fuel to be helicoptered in,” Wentz said. “Why would you do that when you have sunlight falling every day, and you can just put out a net to catch it?”

Globally, the rise of cell phones and the Internet means mankind’s need for power is urgent. “They can get away without air conditioning, but they have to power cell phones,” Wentz said. “Population centers in China and India are hungry for all that the Internet provides. It all requires power.”

WHAT ABOUT CLOUDS? In our cloudy climate, why go solar? Whatcom County is so far north, our summer days see more hours of sun than southerly locations. Solar installations here are positioned to catch angled rays.

Solar equipment works better in Washington’s cooler temperatures than Arizona’s blistering glare.

The technology of battery packs – solar energy storage – is improving. The up-and-down production of solar energy makes it difficult

for utilities to use, but better storage is changing that. “Cloud cover can be predicted,” Untershuetz said, and utilities can respond to affected production rates.

Wentz points to Germany, which has more solar power installed than any other country, and with latitude and sunshine similar to Whatcom County. “People say, ‘Really? Solar in Washington?’ But the bigger factor for Washington is (citizens’) access to inexpensive electric power.

Washington has a huge hydroelectric resource, as well as a great solar resource.”

Not so everywhere. In some places, such as Hawaii, electricity costs much more, so solar power is closer to parity with the grid.

Whatever the weather, in sunny Hawaii or cloudy Bellingham, “We are witnessing a revolution in the way the world produces and consumes electricity,” Wentz said.

“This will literally change the world.”

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PERSONALLY SPEAKING: PAUL AKERS

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Aisle after aisle of FastCap products, like the one Paul Akers visits here, fill a massive warehouse portion of the company’s location on the I-5 corridor frontage road south of Ferndale. FastCap welcomes inventions for consideration, and encourages entrepreneurs to pursue and produce their dreams here.

(Photo courtesy of FastCap)

personally speaking…

Paul Akers

with

A

t the starting point of this interview, Paul Akers, CEO of FastCap in Ferndale (a global enterprise with 900 products in 40 countries, estab. 1997) spoke from Shanghei with Managing Editor Mike McKenzie through FaceTime on their iPhones. Akers was wrapping up an “aroundthe-world” sojourn. At the finishing point of the interview, face-to-face, after a short time back home, he was leaving the next morning for Dubai to start his third circuitous global trip this year. While biting into a 5 o’clock snack of an apple at the FastCap facility, Akers personified the energy and excitement that leaps off your screen when you visit the FastCap website. “Do I seem the same in person as I do on the videos?” he asked.

Without question. He walks the talk. He

climbs mountains, literally and figuratively.

Innovation is his field, his niche, his passion.

Enjoy this around-the-world of business walk and talk that wanders through garbage bins seeking bicycle parts, through selling flowers on a street corner, crafting guitars, Baptist ministry, teaching high school…then into invention and entrepreneurial business, flying his plane across oceans, and finally into learning Lean and now spreading word as a teacher and evangelist for Lean thinking, practices, and culture (hence, the globetrotting as a consultant, and the popular book 2 Second Lean). Ready to innovate? Here’s your inspiration….

WHATCOMBUSINESSALLIANCE.COM | 71

PERSONALLY SPEAKING: PAUL AKERS FOR STARTERS: WORLDWIDE TRAVEL I am in Shanghai, ending a seven-country, around-the-world tour, teaching training for all kinds of different organizations in Lean.

First stop was Stuttgart, Germany for three days working with Mercedes Benz and later a company called Yellow Tools. Then, over to Spain to a Ford plant. Over to Portugal with a manufacturer.

A REPEATING STOP

The speaking circuit takes up many dates on Paul Akers schedule, as he relishes spreading the gospel of his “2-Second Lean” best practices with an audience anywhere in the world.

(Photo courtesy of FastCap)

In Kazakhstan I worked with the largest construction company there, Build Investments Group – my second time there. I’ll go for two weeks every two months. They’re a $1.8 billion company building all of the infrastructure for the country as it emerges, adding about 2 million square feet a year. They’re getting ready for the World Expo (AprilOctober 2016 in Antalya, Turkey).

Amazing organization and very passionate about Lean.

NOT ALL WORK Next I went to Thailand to work with a company there, and did some surfing while I was there.

Then over to China to work with my associates at FastCap; some of our factories are there.

CLIENTS AT HOME, TOO Finally, I flew over to the U.S. for three cities for presentations in Los Angeles, San Diego (his original hometown), and Des Moines, Iowa at construction and manufacturing companies.

This was my third trip around the world, and second this year. I’ll be home about two weeks, then leave for the third one – Dubai, Kazakhstan, India, Sri Lanka, Thailand, and China.

WHOLESALE 90% We retail about 10 percent of our business. The rest is commercial accounts. We have 2,700 distributors around the world in 40 coun-

Family matters at FastCap. Luanne Akers maintains daily flow when Paul is traveling. Their children also work in the business, Kolbe in production, and Andrea in graphics/design. Even Yoshi, their pet Yorkie-Shih Tzu, bounces around on various desks throughout the workday, a formidable watchdog (bark worse than bite) eager to stand and smile for a treat. (Photo by Mike McKenzie) 72 | BUSINESSPULSE.COM

tries. Primarily, cabinet hardware distributors carry our products – the outfits that cabinet makers go to for supplies.

MAIN PRODUCTS The fast cap obviously is one of our core products, though we have more than 900 products. About 10 core products now. Everything from the 3rd Hand Brace to our GluBot, and a variety of different tools, like our Laser Jamb. We have lots of really strong core products besides the Fast Cap, such as the Fast Edge, the Peel and Stick, and our glue product lines.

Business is very good for FastCap. We’re growing leaps and bounds, and always hiring people.

It’s been quite a ride.

INSPIRATION FOR INNOVATOR ‘GENE’ My dad taught me to be curious and exploratory in the way to approach life. Then, when I started at 17 years old making guitars with Bob Taylor Guitars, I got to watch his genius at work. That certainly molded and shaped me dramatically for how I approach my problemsolving and innovation at a very, very high level.

“I got to watch (guitar-maker Bob Taylor’s) genius at work. That certainly molded and shaped me dramatically for how I approach my problem-solving and innovation at a very, very high level.� — Paul Akers

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CHILDHOOD DREAMS? That’s a great question. I loved riding bicycles and motorcycles when I was a kid. I would ride my bike every night up to Convoy Street in San Diego and dig in the dumpsters there for old bicycle and motorcycle parts so I could cobble bikes together.

I used to ride by this place called the Fun Bike Center, and I’d watch this guy who owned the company – it was very small then, and now it’s a massive company. I’d see how he worked with customers and with salesmen and all, and I thought, “Wow, that seems like the coolest job.�

Because of that I always aspired to have my own business similar to what that guy had. It was very

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WHATCOMBUSINESSALLIANCE.COM | 73

PERSONALLY SPEAKING: PAUL AKERS inspirational to me. I definitely had a childhood dream to own a business, just for myself.

BOYHOOD BUSINESSES From a very young age I always had a lawn business and a paper route, and was very successful at it.

But it was nice, and fun. That was the moment I became hooked on woodworking. I loved creating things.

180-TURNABOUT: COLLEGE & MINISTRY I played guitar, and made my

“I was ordained as a pastor…(then) had a little stint teaching high-school industrial arts.

Loved the kids, and the experience. But, the bureaucracy drove me crazy, so….I said, ‘Enough of that,’ and…I started my own cabinet company and general contracting business...”

I was always making money, selling something – like flowers down on a corner in National City in San Diego.

I made quite a bit of money at a young age. There was something about really enjoying pleasing people and satisfying them, so becoming an entrepreneur was a good outlet for me.

WOODWORK: THE GENESIS My woodworking career is very interesting. My dad, though he wasn’t a craftsman at all, was very capable – maybe a little bit more of a hack, to be honest, but he was willing to try anything.

So I watched that attitude of just digging in and doing, solving problems. Then in 7th grade I took a wood shop class with Mr. Knox, and I built a modern deer. My brother took the same class a couple of years earlier, and his modern deer turned out looking like a Van Gogh piece. Beautiful, very artisticallyexecuted. Mine came out looking like a little paint-by-number sort of thing.

74 | BUSINESSPULSE.COM

first one when I was 15. That’s how I met Bob Taylor, and went to work for him the day I graduated from high school.

Two years later I decided to go back and get a degree at Biola University. I became a Christian when I was 18 years old and got some meaning and purpose in my life. I decided I wanted to go into the ministry and I got my degree in Christian Education (emphasis on Greek and German).

After graduating I was ordained and assigned to Glassell Park Baptist Church in inner-city Los Angeles as a pastor. (NOTE: Paul and Luanne Akers’ first home was an abandoned gang house that he repaired in La Puente.) I served that church for a couple of years, and enjoyed it. However, it was very time-consuming. It seemed maybe not the best for me – I wanted to have a family life, but I was always gone on pastoral duty.

SWITCH TO TEACHING I stopped being a pastor and had a little stint teaching industrial

No mountain high enough exists for Paul Akers to scale, figuratively or literally. He posed here in the Base Camp during his climb of the highest mountain on earth, Mt. Everest (29,029 ft.), during April last year. His climbing party had barely departed when the deadly avalanche struck.

(Photo courtesy of FastCap)

PERSONALLY SPEAKING: PAUL AKERS

“I treat our company like a ministry, in that I’m very concerned about people and committed to what is best for them, and try to guide them the best I can.

I feel that is my obligation as a business owner.”

COMPANY PRACTICES: DAILY U.S. HISTORY

Demonstrating the strength of one of FastCap’s bracket solutions, Paul Akers squats on a shelf supported by the invention.

(Photo courtesy of FastCap)

arts at Mark Kessel High School – one of the largest high schools in California (Alhambra), huge, multicultural with a lot of Asians and Hispanics.

Loved the kids, loved the experience. But, the bureaucracy drove me crazy, so after two years I said, ‘Enough of that,’ and decided to strike out on my own. I started my own cabinet company and general contracting business, and we were pretty successful at that.

76 | BUSINESSPULSE.COM

STILL MINISTERING I treat our company somewhat like a ministry, in that I’m very concerned about people and committed to what is best for them, and try to guide them the best I can. I feel that is my obligation as a business owner. (FastCap.com states that the company has never laid off an employee, never cut a salary, and “offers the highest entry-level pay of any company in the region.”)

The reason we provide exposure to the Constitution every day is simple: I feel like I was very lucky to be born in the United States of America, the greatest country ever because of the freedoms we enjoy.

I say that not just as an American, but also as someone who’s been in 60 countries and seen all kinds of different cultures.

I’ve never seen another country that affords its citizens as much as the U.S. It’s my obligation as a business owner to make sure that the people I’m responsible for and to become reasonably welleducated on the treasures that we have as Americans. So we make sure that they have an exposure to the Constitution so that, one, they know their rights and, two, that our people are not ignorant about that.

SOLICITING INNOVATORS The whole idea of submitting your idea to FastCap is to have us take your product to market. We have over 900 products, meaning we’ve done this a lot with a lot of people all over the world.

That whole idea came from: Here I am, a lowly little cabinetmaker in my shop up in Bellingham, Washington, who came up with one idea, the fast cap, and figured it out all on my own, how to get it to market and become

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PERSONALLY SPEAKING: PAUL AKERS

One of the manufacturing missions reads clearly above Paul Akers’ head in the FastCap factory on the I-5 corridor just south of Ferndale. (Photo courtesy of FastCap)

successful. I reflect back on that situation all the time, put myself right back to that moment.

And I thought, you know, there are so many people like me who are struggling in their little business and they have great ideas. But maybe they have no vehicle to get their idea or product to market.

THE MODEL: 5% If we respected them, and they, indeed, have a good idea, and we took them to market and paid them a 5% royalty, what a great concept.

Whether or not it’s profitable for us is almost immaterial to me. It’s just that we would be honoring these 78 | BUSINESSPULSE.COM

people’s creativity.

Fortunately, it became very profitable for us – not always, but many times – and we get the joy of seeing these customers’ ideas get to

Example of 2-Minute Lean: “Fix what bugs you.

Now.” market. I wouldn’t change anything about it. I love the way we did it.

And it’s just a very cool business

model.

THE PROCESS –VIDEO In order to submit an idea to FastCap, you can’t email me a picture or diagram. Everything’s got to be in a video. You have to cobble together a prototype and then shoot me a quick, little 2-minute video on your phone. Send it to Paul at FastCap.com, and I’ll give you my honest opinion.

2-SECOND LEAN FastCap started in ’97. I learned Lean in 2000. I got really good at it when I worked with the Toyota

Photos on page 81, story continues on page 83

We wish you a happy and prosperous New Year! from the Business Services Department at WECU速 Business Services 360.676.1168 ext 7320 www.wecu.com

On his most recent around-the-world trip, Paul Akers sat with Norman Bodek (r.), a world-renowned quality control consultant and author of some 250 books on Japanese methodology. They worked with manufacturers in India.

(Top photos courtesy of FastCap)

During a prolonged stopover in India late last year Paul Akers spent time visiting schools and speaking to students about attaining excellence and reaching their goals.

Paul Akers, working on a couple of Apples – one, a snack from his current eating plan explained in a new book Lean Health, and the other his trusty computer which he is busy constantly with online videos, radio shows, blogs, book sales, and the evergrowing family of FastCap product lines.

(Bottom photos by Mike McKenzie)

The Akers family is deeply involved in FastCap success, led by Paul and his wife Luanne, who manages all the financials and runs day-to-day operations while Paul (whose name tag says “Process Engineer”) is traveling. Which, she said, “…Is basically all the time….”

Continued on page 83 WHATCOMBUSINESSALLIANCE.COM | 81

BOOK EXCERPT: BOB PRITCHETT FROM START NEXT NOW

Start Next Now: How to Get the Life You’ve Always Wanted Meet Bob Pritchett He is president and CEO of Faithlife in Bellingham, and he started the company at age 19. Formerly Logos Bible Software, it has grown to nearly 500 employees serving more than 3 million users worldwide. He’s a past winner of the Ernst & Young Entrepreneur of the Year award, and the Puget Sound Business Journal’s 40 Under 40. He blogs at BobPritchett.com, and publishes interviews on BellinghamWins.com.

We previously excerpted Pritchett’s first book, Fire Someone Today, published by Thomas Nelson in 2006 and translated into Korean and Russian. Your next read (now) is available at StartNextNow.com.

Start Next Now, the introduction: Permission to Try Anything Through years of mentoring interns, promoting employees, and raising two kids with his wife, Audra, Bob has learned exactly what life and career advice young people need most, and how rarely any of them heed it. But what amazing stuff happens when they do!

By Bob Pritchett

My parents were not particularly ambitious for me.

They didn’t push me to excel in school. My dad didn’t pressure me to win the game, and my mom wasn’t overly concerned with my report card. My parents cared a lot about my character but not as much, it seemed, about preparing me for a specific career or status or ambition. They didn’t push me to do anything in particular.

82 | BUSINESSPULSE.COM

What my parents did give me was encouragement to find and explore my own passions. Every project, idea, and fleeting career ambition was met with their encouragement, support, and a suggestion of what I could do right now to explore that passion.

When I wanted to be an FBI agent, my parents introduced me to a police detective who gave me a stack of professional law enforcement magazines. When I expressed an interest in bees, they put a beehive in the backyard and encouraged me to start a honey business.

My interest in business got me sent around the neighborhood with a cart selling vegetables from the garden; my curiosity about journalism was met with the support to launch a school newspaper.

I have read many stories about parents driving children toward excellence in one pursuit or another, but none of parents giving such benign and nonspecific support as I received. Athlete, merchant, cop, or president of the United States—my parents led me to believe that every option was open to me, and they offered suggestions on how to start exploring it right now.

My interest in computers led to a high school business selling software for computer programmers. In writing and online no one knew I was just a kid, and during the day my mother took phone messages so I could return calls after school.

That experience helped me land an internship at Microsoft when I was eighteen. A year later I was working full time at Microsoft when I started a hobby project with a friend that grew into yet another business. At twenty I left to pursue that business full time, and I am still leading it more than twenty years later.

I love being an entrepreneur; it’s fun to set a vision and lead a team and even make some money. But the joy I find in my daily work doesn’t come from money

Akers, continued from page 81

Bob Pritchett (file photo)

or position, but rather from doing purposeful work I love with people I love. And I am wise enough to know that I am not a self-made man. I am the beneficiary of many advantages, not the least of which is permission.

Today I employ hundreds of people. In interviews and coffee conversations, I hear over and over again how people were held back by parents who discouraged them, by teachers and coaches and bosses and counselors who told them they weren’t qualified, and by socalled friends who laughed at their dreams.

If you are among those who did not find encouragement to pursue your passion, then I am here to pass along the wisdom of my gently supportive parents: You have permission to try anything and my belief that you can accomplish whatever you’d like. It might be hard, it might take time, and maybe you won’t even want to. But we can start finding out right now.

You have permission to do something incredible.

You can have the life you’ve always wanted.

You can start your next…now.

Production System (TPS) in Japan, and became quite a student of it.

I wrote the book 2 Second Lean because we got so good at it, and people kept asking, ‘How’d you do it?’ We documented how we developed this culture. The book is in its third edition, we’ve sold so many it’s staggering. Thousands and thousands and thousands of books a month. Pretty crazy.

It’s now in nine languages, truly a global phenomenon. The irony of it is that I just wrote my latest book called Lean Health and I think it’s going to be 10 times bigger than 2 Second Lean. And I happened to write that book in 6 weeks while I was on a trip around the world.

2-SECOND EXAMPLE? Fix what bugs you. Now.

RUNNING FOR OFFICE ON LEAN (NOTE: Akers ran for state senate in 2010 on a platform of transforming government by empowering people.) Wow. The cool thing is that the entire state of Washington has adopted Lean as a mantra.

When I was interviewed by The Seattle Times they looked at me like I was some kind of space cadet.

Lean in government? I’ll never forget the arrogance of The Seattle Times looking at me and thinking like, “This guy is so out to lunch.

He has no clue what he’s talking about. He’s just a little Boy Scout here in the big leagues.”

And today, if you talk to our governor, that’s all they want to talk about is Lean, and Lean has

spread through every organization within the state. But back then The Seattle Times didn’t have a clue about the power of Lean. Today, it’s completely taken over government, and I’m very proud of that. It’s awesome.

ALL THAT MATTERS All that matters is that we keep getting better every, every day for customers. We have to be relentless.

NO AWARDS DISPLAYED You walk into our building and you won’t see a single plaque or award anywhere. All that matters is that we’re giving phenomenal customer service, and that we are continuously improving everything, and driving down costs, and eliminating waste so that we can remain globally competitive as a relevant company for 50 years from now… or longer.

That’s the way we think about everything we do. I won’t say that we don’t like to win awards; it’s just not what we focus on.

FOCUS ON INNOVATION I encourage everybody to become an innovator. Because once you do, you become very proficient at solving your problems. That’s what innovation is really all about: You see a problem, and then you set out to improve the current state.

That’s what everybody needs to know how to do. Man, woman, young, old, you name it. Everybody needs to know how to creatively solve problems and improve the quality of their life, and in the process you become an innovator.

Paul Akers’ Top 3 Pointers for innovators, inventors, and entrepreneurs….

1.

2.

3.

Be fearless.

Counsel with other people who are much wiser than you, and listen carefully to what they tell you. Their experience is invaluable.

There are no excuses. None, to not succeed. Zero.

WHATCOMBUSINESSALLIANCE.COM | 83

Member News New look on WBA Board Carten becomes chair; eight new members seated Jane Carten (left) takes over the chair of the WBA Board of Directors on Jan. 19.

She has led the programming committee as a member of the executive committee. Jane is part of the family ownership group at Saturna Capital, serving on the board of directors and as the company president.

Jeff Kochman led the WBA as chair for two years. The board established a role on the executive committee of past chair for transitional purposes, and he will fill that role for one year. Jeff is president and CEO of Barkley Company, celebrating his 25th anniversary with the firm.

Jane Carten, President/Director at Saturna Capital Corp., assumes the board chair this month, and the Board of Directors voted to install eight new members as the WBA approaches its fourth anniversary since forming in April 2012.

Carten has served as the lead on the Programs Committee. She succeeds Jeff Kochman of Barkley Company, who will serve one year in a transitional role of past chair.

“Jeff has been an outstanding leader the last two years in helping set the WBA on a steady growth course,” said Tony Larson, WBA president.

“Jane has led the way to our outstanding programming for members and prospective members.

She will continue the momentum our organization has built on 84 | BUSINESSPULSE.COM

behalf of business and commerce throughout Whatcom County.”

The eight new board members: • Ken Bell, President, Best Recycling • Tyler Byrd, President, Red Rokk Digital Creative Agency • Jeremy Carroll, Dawson Construction • Tom Kenney, Regional President, Northern & Eastern Washington at Washington Federal • Ben Kinney, Owner, Keller Williams Realty Bellingham • Sarah Rothenbuhler, President/CEO, Birch Equipment Rental & Sales • Billy VanZanten, President, Western Refinery Services • Josh Wright, Broker, Bell Anderson Insurance “We are grateful for the remark-

able commitment from our outgoing board members,” Larson said. “They have been instrumental in our charter board of directors building a brand as a champion for businesses, small to large, which the WBA’s mission recognizes as the key to prosperity in the community.”

Rotating off the board: Dave Adams of Emergency Reporting; Randi Axelsson of Washington Federal; Bruce Clawson of US Bank; Kevin DeVries of Exxel Pacific; Greg Ebe of Ebe Farms; Paul Kenner of SSK Insurance, and Troy Muljat of The Muljat Group (and the WBA’s first chairperson).

Continuing service on the board: Executive Committee in addition to Carten and Kochman – John Huntley of Mills Electric, Doug Thomas of Bellingham Cold

Storage, and Marv Tjoelker of Larson Gross; Pam Brady of BP Cherry Point; Janelle Bruland of Management Services NW; Scott Corzine of Puget Sound Energy; Andy Enfield of Enfield Farms; Guy Jansen of Lynden Transport Inc.; Sandy Keathley of K&K Industries (ret.); Bob Pritchett of Faithlife; Brad Rader of Rader Farms; Becky Raney of Print & Copy Factory, and Jon Sitkin of Chemlik Sitkin & Davis P.S.

NEW SHAREHOLDER AT METCALF HODGES Kira Bravo, CPA, has joined Metcalf Kira Bravo Hodges PS as an equity owner. She has 10 years in public accounting, specializing in tax planning and compliance, estate, trust, and gift taxation. She previously worked at a large regional firm after graduating from Western Washington University.

FIRST FEDERAL OPENS BRANCH The home office in Port Angeles opened the Bellingham branch at 1270 Barkley Blvd. recently.

First Federal started in 1923. The branch’s management team comprises Troy Wills, VP, Market Area Manager; Julia Parker, Customer Sales & Service Manager; former WBA charter board member Randi Axelsson and Jami Peterson, Universal Bankers, and Adam Finfer and Dale Holt, Commercial Relationship Managers.

The Bellingham branch features innovative Interactive Teller continued on page 86

Water taxi built by All-American Marine last year for King County (File photo)

COHANIM DEVELOPERS LEASE LAST BELLWETHER PROPERTIES A change in ownership occurred for three mixed-use office buildings and the last parcel available in the Bellwether on the Bay development area with leases with the Cohanim family. Port Commission President Dan Robbins said, “The Cohanims have been involved in a number of exciting and successful projects throughout the region, and…will help us strengthen our vibrant local economy.”

The Cohanim family has developed mixed-use, multi-family, and hotel projects in the Pacific Northwest since the 1970s. The family acknowledged Shropshire Law Office and Glacier Real Estate Finance for helping acquire the properties. One of the buildings office space vacated by CH2M Hill, which might become residential units.

BIG MOVE RELOCATING ALL AMERICAN MARINE, TWO OTHERS The agreements include constructing a manufacturing facility for WBA member All American Marine (AAM) on the downtown Central Waterfront.

All American Marine, which built the passenger ferry seen above, will move downtown and add 27 employees to its 46-person staff.

The other two new residents will

be Fairhaven Shipyard, and the planned Bellingham International Sailing Center.

A special loan-and-grant program enabled The Port to move on this project, and AAM will repay for the facilities on a 25-year lease. Fairhaven Shipyard, operating under Puglia Engineering in Tacoma, will move into AAM’s vacated space in Fairhaven.

HARMAN NAMED NEW AVIATION HEAD Sunil Harman joined the Port Sunil Harman team recently to manage the Ports aviation operations. Sunil has worked large and small airports — JFK and LaGuardia in New York, Miami, San Diego, Tallahassee, and NW Florida Regional. He also has extensive experience at five General Aviation airports – Miami - Opa Laka Executive, Opa Laka West, Miami Executive, Miami Homestead General Aviation, and Dade Collier Training & Transition).

With over 30 years experience, Sunil serves on the board of Airports Council International of North America. He has a B.S. in Aviation Administration and a master’s in Aviation Management from Embry Riddle Aeronautical University in Daytona Beach, Fla.

WHATCOMBUSINESSALLIANCE.COM | 85

Machines (ITMs) that allow consumers and businesses to manage banking transactions on their own, or with the help of a representative by way of an interactive screen.

tions, $1 of each sale helps fund financial aid for Western students.

This generated about $2,500 last year.

NORTHWESTERN MUTUAL MOVES TO BARKLEY

WECU BUYS BUILDING

The recent move from Cornwall Avenue downtown puts the group at 2219 Rimland Drive, Suite 407, a remodeled location.

Paul D. Twedt, CLU, ChFC, Wealth Management Advisor said the space is 2,200 square feet in close proximity to the Barkley Village financial district with adequate parking. Northwestern Mutual Puget Sound has 110 financial representatives.

BOYS & GIRLS CLUBS NAME COMMUNITY ALL-STARS The Whatcom County Clubs named Tiny La, 15, as its 2015 Youth of the Year. She will compete at the state level in Seattle with a speech on March 25. The Community All-Stars were named at the year-end awards banquet with 450 in attendance: Athletics – Photographer Radley Muller; Bellingham – Wendy DeFreest, Owner, Avenue Bread; Blaine – City Manager Dave Wilbrecht; Ferndale – Volunteer Dianne Marrs-Smith, and Lynden – Volunteer Diana Bedlington.

THE WOODS COFFEE NEWS OPENING IN B.C. Soon, the 18th Woods location will become the first in Canada, inside the Tsawwassen Springs Golf Club developed by Shato Holdings Ltd.

VIKING BENEFIT CONTINUED Western Washington University renewed its partnership for the 7th year with The Woods Coffee producing Viking Blend to benefit scholarships. Available at all loca86 | BUSINESSPULSE.COM

The purchase of the former Union Bank Building at 3410 Woburn St. in Bellingham supports plans to house WECU’s Business Services Department. WECU has 11 branches, 17 no-charge ATMs, and over 77,000 members in Whatcom County.

FOUR POINTS BY SHERATON Meeting space is scheduled for completion by the first quarter of 2016. The hotel has 132 rooms.

GM Larry MacDonald announced that 100-plus employees are staying, and Providence Hospitality Partners will continue to manage the property under the Sheraton/Starwoods Hotels & Resorts banner.

This will be just the third Four Points property in Washington state among 200 worldwide, counting 25 planned openings this year. “Starwood has an excellent reputation among businesses for hosting conferences,” MacDonald said, adding that the events and meeting rooms will be complete this spring.

FABER CONSTRUCTION OPENS IN SEATTLE AREA Based in Lynden since 1987, owner Rick Faber announced opening an office on 142nd Avenue in Woodinville recently.

Building commercial warehousing, schools, apartments, restaurants, and other specialty projects, Faber has 85 employees and handles projects ranging from $5,000-$15 million.

They have projects in King, Snohomish, and Pierce counties, including a $4.6-million seismic renovation of Fire Station 18 in Ballard, and a $1.5-million renovation of Everett’s Henry Jackson

Park. Tom Landsberger, GM of Faber Construction, said, “Being in the Seattle market is a first-hand example of our commitment to outstanding customer service… simply the next step in the process.” Todd Nyquist is the project manager there.

NEW END-OF-LIFE PROGRAM INITIATED An initiative of the Washington State Hospital Association and the Washington State Medical Association selected PeaceHealth to implement a new program, Honoring Choices Pacific Northwest, this year. It facilitates conversations in advance care planning for a person’s future health care decisions.

Bree Johnston, M.D, the director of Palliative Care, and Margaret Jacobson, M.D., the medical director for Whatcom Hospice, serve as the local leaders for the program. Honoring Choices Pacific Northwest provides guidance on how to have those conversations and to plan for end-of-life care.

MAKES TOP 100 LIST FOR NEURO & SPINE CARE PH St. Joseph Medical Center is listed in the recent 2015 Becker's Hospital Review three times: • Healthgrades’ America's 100 Best Hospitals for Spine Surgery Award (3rd straight year); • Healthgrades’ America's 100 Best Hospitals for Stroke Care Award in 2015 and 2016, and • CareChex Top 50 hospitals in the nation for neurological care.

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Find the care you need at peacehealth.org/phmg/bellingham

GUEST COLUMN: AGRICULTURE Debbie VanderVeen | Board Member Whatcom County Farm Bureau Debbie VanderVeen serves as a board member and president of the Whatcom County Farm Bureau. Debbie and her husband, Jason, own and operate Veen Huizen Farms LLC, a dairy and crop farm in Everson. Veen Huizen Farms participates in the Lynden Chamber of Commerce.

‘Caring’ and taking action

Farm Bureau stands as strong antidote to threatening lawsuits & regulatory glut

T

he farm community is speaking out more now because the threats against the future of farming in our community are very real – not just perceived, or a figment of our imagination.

From lawsuits, to new regulations often prepared without science or much thought, to continuing accusations of harm to water quality and water usage, individuals and groups who take aim at farming have become increasingly visible and vocal. Farmers already know what is at stake. We understand that it is far more than our futures and our livelihoods.

The very nature of our entire community is at stake.

As the president of Whatcom County Farm Bureau, one of the 88 | BUSINESSPULSE.COM

largest agricultural organizations in our county, I understand the importance of sharing our farming stories.

Whatcom County Farm Bureau members each have our own agricultural story, and each story has a common thread that we share with our consumers.

We find happiness and joy in caring for our animals and our land. We love our livelihoods, even through our challenges and strife.

We have chosen this work knowing there will be joys and heartaches.

Watching our seeds sprout and grow is never taken for granted; we are thankful for each plant. How to save a struggling newborn calf is taught from one farming generation to the next. Our basic farming traditions continue on, while utilizing new technologies and improved science. We provide food and fiber for our world.

As Whatcom County Farm Bureau’s mission statement reads, “We are a voluntary, grassroots advocacy organization representing the social and economic interests of farm and ranch families at the county level. By providing leadership and organizational skills, Farm Bureau seeks to gain public support on the issues affecting farm and ranch families.” We serve as a resource to farmers, ranchers, agricultural businesses, and consumers within our community.

We are proud to support the livelihood of these farmers and ranchers.

One of our Farm Bureau goals focuses on educating the public that agriculture is an honorable and productive occupation, and we encourage and promote more participation in agriculture. We especially encourage cooperation with

other farmer organizations where our interests coincide, such as the recently formed Whatcom Family Farmers.

We support our youth in 4-H and FFA agricultural programs by teaching public speaking, leadership, farming, and agribusiness skills for the future.

Citing the 2015 Washington Farm Bureau Policy Book, Whatcom County Farm Bureau supports that Farm Bureau is a free, independent, non-governmental,

we are hosting preschoolers or senior citizens, environmental students of Huxley College or geography students of University of Washington, or the governor of our State or the Whatcom County Council members, our message is the same: We farm to provide nutritious food while prioritizing the care we give to our land and animals.

Farming matters. Not just to me, but to all consumers.

It matters environmentally, economically, and culturally. Because we value it so much, farmers and farm leaders spend more and more of our very busy lives trying to preserve family farming for the future.

We ask all of you who understand that it really matters to support us in this fight for the future – not just of farming, but our community as we know and love it.

“I value what farming brings to our community…. caring for our land, our environment, our water….(and) about the many businesses and employees who depend on us in our entire community.” voluntary organization of farm and ranch families united for the purpose of analyzing problems and formulating action to achieve educational improvement, economic opportunity, and social advancement and, thereby, to promote the national well-being.

I value what farming brings to our community and I become encouraged to share my story even more when I see or hear of those who place little or no value on agriculture. It is caring for our land, our environment, our water – but so much more than that. It is caring about the many businesses and employees who depend on us in our community. It is caring about our future, and being productive citizens and contributors to the good of our nation and communities.

On our farm, Veen Huizen Farms, it does not matter whether WHATCOMBUSINESSALLIANCE.COM | 89

GUEST COLUMN: FREE-MARKET ENVIRONMENTALISM Todd Myers | Environmental Director Washington Policy Center The Washington Policy Center is an independent, non-partisan think tank promoting sound public policy based on free-market solutions. Todd Myers is one of the nation’s leading experts on free-market environmental policy and is the author of the 2011 landmark book Eco-Fads: How the Rise of Trendy Environmentalism is Harming the Environment. His in-depth research on the failure of the state’s 2005 “green” building mandate receives national attention.

Save the environment from its friends Alcoa blunted by regulatory uncertanty

I

f you watch soccer – or as they say in England, “If you say soccer one more time I’m going to give you the old foot-ball, if you know what I mean…” – you understand the concept of an “own goal.” Instead of scoring for his own team, a player puts the ball in his own goal and scores for the other side.

Players who repeatedly put the ball in their own goal are encouraged to find jobs elsewhere as accountants or manure spreaders. In America we are more forgiving. We elect them to positions of political power.

How else to explain recent climate policy decisions in Washington state and in our nation’s capital?

The Keystone Pipeline represents one example. After years of consideration – by which I mean doing literally anything but considering building the pipeline – Pres. Barack Obama announced he would not 90 | BUSINESSPULSE.COM

approve construction. The Keystone Pipeline would have carried oil from Canada and the Dakotas to

Without Keystone….

Canadian oil will be shipped through the Gulf Islands and the Strait of Juan de Fuca, potentially increasing oil tanker traffic in that environmentally-sensitive region from five a month to one a day – an increase of 600 percent.

other parts of the U.S. or for shipment overseas.

The United States is now the world’s largest producer of oil, and the pipeline would have created good-paying jobs.

Pres. Obama argued that pipe-

line construction would create environmental risks. It took just 24 hours for the environmental consequences of that decision to become apparent: Canadian oil will be shipped through the Gulf Islands and the Strait of Juan de Fuca, potentially increasing oil tanker traffic in that environmentallysensitive region from five a month to one a day – an increase of 600 percent.

Adding insult to injury, new Canadian Prime Minister Justin Trudeau announced he will block construction of a pipeline to British Columbia’s northern coast. As a result, West Coast tanker traffic will be funneled entirely through the Strait.

The Keystone decision didn’t stop oil production. It simply ended a safe way to transport it and added the additional risk of increased tanker traffic in a narrow strait.

That is not the only environmental “own goal” we have seen recently.

ALCOA IDLED BY IRONY: WORLDWIDE CO2 “LEAKAGE” After Gov. Jay Inslee’s costly capand-trade climate plan was rejected

by House Democrats, he decided to push ahead with a regulatory alternative. If his goal is to reduce Washington state's carbon emissions, he has succeeded before his rule is even finished, even if that means increasing emissions worldwide.

Alcoa announced it will “idle” two Washington aluminum plants, one in Ferndale, indicating “regulatory uncertainty” added to worldwide competition, resulting in the layoff of hundreds of employees. If Gov. Inslee’s regulations are adopted, it will make it more difficult for Alcoa’s plants to reopen.

The regulations would cost Alcoa’s aluminum plants in Washington an estimated $3 million a year in compliance costs.

That cost increases as carbon emission targets are lowered over time.

Ironically, the jobs lost are goodpaying, union jobs, exactly the kind the Governor claims he wants but always seems to risk with his climate policy.

The global environment, however, will be worse off. Instead of being produced in efficient plants here, aluminum will be manufactured overseas, where plants have lower standards and emit far more CO2 and other pollutants.

There is a term for policies that simply move carbon emissions overseas without reducing the overall amount. It is known as “leakage,” a word you don’t want to be associated with in your personal, or political, life.

Even this is not enough for environmental activists. Their policy would go even farther, increasing costs dramatically for Alcoa’s aluminum plants and for environment-destroying villains like the solar-panel manufacturing plant in Moses Lake.

So many “environmental” policies doing so much damage to the environment. Is it any wonder some Americans don’t like soccer?

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WHATCOMBUSINESSALLIANCE.COM | 91

GUEST COLUMN: LABOR MARKET Erin Shannon | Small Business Director Washington Policy Center Erin Shannon became director of the Washington Policy Center for Small Business in January 2012. She has an extensive background in small business issues and public affairs. The Center improves the state’s small business climate by working with owners and policymakers toward positives solutions.

How the City of Tacoma ended up with a $12 minimum wage L

ast fall, voters in Spokane and Tacoma soundly rejected measures to mandate super-high minimum wages.

Spokane’s Proposition 1, the “Worker Bill of Rights,” would have increased the minimum wage in that city up to $28 an hour.

Further, the proposed law would have: • Mandated equal pay for all workers; • Ended the “at-will” employment relationship that allows employers to lay off or fire employees as needed; • Stripped incorporated business owners of their legal rights.

Over 63 percent of voters in Spokane realized that Proposition 1 was unfair, that it would reduce jobs, drive up costs, and take away the rights of law-abiding business owners. The measure wasn’t just defeated – it was crushed.

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On the other side of the state, Tacoma voters likewise crushed by even a wider margin—72 percent— the extreme $15 an hour minimum wage immediately, a measure pushed by a local grass-roots organization called “15 Now Tacoma.”

However…

The minimum wage ballot had two parts.

On the other part, 58 percent of turnout voted that the city’s minimum wage should be higher than the current state minimum wage of $9.47 an hour. (We’ll explore the dynamics behind that support in a moment.)

So, instead of no increase, 72 percent voted for a lower and slower approach of a $12 minimum wage phased in over three years.

Spokane and Tacoma saying “no” to a super-high minimum wage reveals that voters in cities outside of the Seattle left-leaning bubble realize the devastating impacts of an artificially high minimum wage.

It hammers a city’s business climate and the job opportunities available

for both young and low-skill workers.

Spokane and Tacoma weren’t the only cities across the country saying “no” to super-high wages.

Spokane and Tacoma saying “no” to a superhigh minimum wage reveals that voters in cities outside of the Seattle left-leaning bubble realize the devastating impacts of an artificially high minimum wage.

Voters in heavily-Democratic Portland, Maine similarly rejected a $15 wage. Although Democrats outnumber Republicans there by more than 3-to-1, nearly 60 percent

of voters opposed a $15 measure.

A political science professor was quoted in local media, “I think it was too much, it was too far a step for people.”

Clearly Tacoma and Spokane voters felt the same. So how did Tacoma end up with a more-than 25 percent increase to an eventual $12 minimum wage?

The answer is simple: Voters there were offered a less extreme alternative to the $15 measure.

Some businesses and business organizations encouraged a compromise deal because they were terrified that voters might pass the radical $15 measure, as they did in SeaTac. (Seattle’s $15 minimum wage was not put to a vote of the people; rather, the City Council passed it.)

Organized labor supported a compromise because they were terrified Tacoma voters would reject the radical $15 wage measure. A total loss at the ballot would have interrupted the momentum that the $15 minimum wage movement has relied on to push the issue in cities across the U.S. The fact that union executives balked at the radical “15 Now Tacoma” measure appearing as the only option on the Tacoma ballot is telling. If labor leaders thought the extreme measure would win, they would not have hesitated to support it. They don’t think increasing the minimum wage to $15 overnight is a bad idea; they just knew it would be a tough sell for voters in Tacoma.

They were right. Long before the November election, polls showed that voters did not support the “15 Now Tacoma” measure. Still, just the threat of a $15 minimum wage was enough to scare much of Tacoma’s business community into embracing the $12 wage option.

So they actively supported and campaigned for the compromise of $12 phased in over three years.

Ultimately (and ironically), the strongest support for a higher minimum wage in Tacoma came from

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business owners.

Organized labor did not have to persuade voters to increase the city’s minimum wage, because the business community did it for them by convincing the voters that a $12 wage is “right for Tacoma.”

In the weeks leading up to the election, one Tacoma newspaper columnist observed that while advocates of the $15 measure may not understand the basic economics of an overnight jump to a $15 minimum wage, they deserve “credit for their understanding of basic politics and the application of uncomfortable pressure.”

The column continued, “To be as blunt as their initiative, ‘15 Now Tacoma’ has already won. Think about how far our public discourse has evolved. When pondering whether or not to raise the city’s minimum wage, the only questions remaining appear to be how high, and how fast?”

In short, it was a brilliant

strategy. Whether Tacoma voters approved $15 or $12, either way provided a victory for unions and activists pushing for a higher minimum wage. As The Washington Post put it: “In many cities, $15 an hour is really just an opening bid – advocates know they’re going to get bargained down. Without starting high, they wouldn’t have gotten even to $12 at all.”

No one can say for certain whether voters in Tacoma would have rejected a $15 minimum wage had it been the only choice. But since they were offered a seemingly more reasonable $12 alternative, what we can say for certain is that we’ll never know.

Cities facing $15 minimum wage campaigns – such as appears inevitable soon in Bellingham and Whatcom County – would do well to remember the Tacoma experience.

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GUEST COLUMN: SMALL BUSINESS DEVELOPMENT CJ SEITZ | Director, SBDC CJ has nearly 20 years’ experience in executive planning, administration, financial strategy, and marketing. She served in leadership positions with several Bellingham nonprofit and governmental organizations, and held a senior admin position with a commercial construction firm. CJ has a degree in accounting and a master’s degree in business administration from Western Washington University.

Baby Boomer ownership exodus Emerging retirement opportunities can provide a path to budding entrepreneurs

M

any motivated and creative prospective entrepreneurs find common themes that keep them out of the business world: • • •

Access to capital; Adequate collateral; Lacking a robust network of business contacts, and • Lack of deep insights into serving a target market.

These can present formidable barriers to entry into entrepreneurism, and have barred too much talent from contributing to the economy by way of business ownership.

Fortunately for aspiring entrepreneurs, a recent demographic shift is presenting new opportunities free of many of the deterrents inherent in the classic approach. The shift centers on the well-documented departure of the Baby Boomers from the workforce. As the largest generation in history enters retirement, the business world struggles to fill the roles they’ve left behind.

Especially important is the impact of the Baby Boomer entrepreneurs who hope to retire from 94 | BUSINESSPULSE.COM

business ownership. Prospective buyers of those businesses find difficulty in obtaining capital, and therefore they are unable to obtain the financing needed to take over a mature business.

What can an emerging, aspiring entrepreneurial business owner do to ease into the generational transition?

ONE CLIENT’S EXAMPLE A recent client of the Small Business Development Center at WWU – we will call her Roberta – might well have found the answer.

Working in the restaurant industry most of her adult life, Roberta is one of the hardest-working, most creative people I have met. Over the years her insight, drive, and enthusiasm have earned her the respect of her superiors and peers alike. She is a top leader in a large local company but her biggest dream is to own a restaurant of her own. While Roberta has the proven managerial chops (no pun intended) to be an outstanding restaurant owner, she lacked two essential ingredients for the project – adequate available cash to invest in a project, and few assets to help secure what funding might

be available.

So, what did Roberta do? She used the one skill every entrepreneur must master: networking.

Roberta met with local restaurant owners in order to learn more

Stan, 64, wanted to sell but….interested buyers couldn’t get financing.

Roberta wanted her own restaurant. The pair worked out a 7-year transition plan for Roberta to gradually buy out Stan’s shares (and) benefit from Stan’s expertise to guide her along the way. about opportunities in the community. Before long, Roberta met a gentleman I’ll call Stan. He had

built a successful local restaurant with a wonderful reputation, and he suddenly had found himself in a predicament.

At the very time he was being encouraged to open a third location Stan was feeling like it was time to retire. He recently celebrated his 64th birthday and he had explored selling his business. The problem was, the value of his business holdings was so high that interested buyers just couldn’t swing the financing.

After discussing his challenges with Roberta, the two of them discovered an opportunity. Stan was very impressed with Roberta’s industry skills and realized that over the short term Roberta could help him open that third location.

Meanwhile, over time Stan and Roberta could work out a succession plan for Roberta to take over the entire operation. The pair met with Stan’s accountant and worked out a seven-year transition plan, making it possible for Roberta to gradually buy out Stan’s shares of the business. Stan’s role will diminish over that time, but Roberta will benefit from Stan’s expertise to guide her along the way.

Their outcome is a win for Stan, a win for Roberta, and a win for the local economy.

Economic data tell us that Roberta’s experience is far from unique. For example, Inc. Magazine estimates up to 70 percent of existing business owners will exit by 2020, and a 2008 Gallup Press survey indicated 52 percent business owners exiting by 2017 – just a year from now.

Is there a Boomer transition opportunity in your future? Are you a Boomer looking for an exit plan? Your Western Washington University Small Business Development Center is here to help you find each other.

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WHATCOMBUSINESSALLIANCE.COM | 95

GUEST COLUMN: REAL ESTATE Mallina Wilson | Owner International Real Estate Investments Inc. Mallina Wilson is licensed with Keller Williams Western Realty/Ben Kinney Real Estate. She is a certified international property specialist and an instructor for both the National Association Realtors and Keller Williams International, specializing in the global market (e.g., Canada, Great Britain, Costa Rica, and more) across all property types.

Foreign national buyers have strong interest in Whatcom real estate B

ellingham and Whatcom County hold a strong attraction to five distinct segments of prospective real estate buyers from across the Canadian border:

1. Second-home seekers.

2. Investors interested in having a property close enough to manage themselves.

3. Commercial property purchasers who understand the price-point difference between Vancouver’s market and our own.

4. Berry land farmers who want inventory that they have run low on in Lower British Columbia, and 5. Multi-unit investors looking for high cap rates (even though our vacancy rates are so low).

While total unit sales from

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international home buyers purchasing in the U.S. decreased in 2015 compared to 2014, the total sales dollar volume increased 13 percent, according to the National Association of Realtors® (NAR) 2015 Profile of Home Buying Activity of International Clients.

Year-over-year during 2014-‘15 showed total international sales estimated at $104 billion, up considerably from the previous year's approximate $92.2 billion. That volume represented 8 percent of the total existing-home sales dollar volume across the U.S. "In 2014, sales transaction to buyers outside of the U.S. dropped 10 percent," said NAR Chief Economist Lawrence Yun. “Possibly that was due to the strengthening of the U.S. dollar in relation to international currencies and weakening foreign economies. However, the amount of money spent has increased.

“This means international pur-

chasers in the U.S. have become an upscale group of buyers, spending more money on fewer properties."

In 2014, five countries accounted for just over half of all purchases by international buyers in the U.S. (51 percent). Buyers from China topped U.S. sales both in units purchased and in dollar volume – an estimated $28.6 billion. Buyers from Canada spent about $11.2 billion, followed

by India with $7.9 billion, Mexico with $4.9 billion, and the U.K. with $3.8 billion, according to NAR. We have a large Asian stream of buyers coming from Vancouver and Lower B.C. I sold a home to a buyer from China recently; we emailed each other for 6 months until she traveled to Vancouver to visit relatives. She crossed the border and cashed out a purchase of a second home in Semiahmoo. It was a better buy than in Vancouver where her sister lives and where she visits often. She spent $750,000.

The average purchase price

for an international buyer in the U.S. is $499,600. Chinese buyers purchased the most expensive properties, at an average price of $831,800.

About 47 percent of Canadian purchases were vacation homes.

The attraction to Bellingham/ Whatcom County is the short drive from doorstep-to-doorstep. Within Canada, the closest equivalent price point for lakefront property lies about 5 hours from Vancouver, which makes for an onerous commute.

Most international purchases take place as a cash exchange, although lending options in our region are quite attractive, too. The currency exchange has had an effect on the cross-border business, yet it hasn’t stopped the most savvy buyers looking at a more global perspective on investing.

So why is this important to Bellingham and the county?

Foreign investors boost our economy and tax gain. For some that brings thoughts of the long lines at Costco or the Bellis Fair Mall parking lot (groan). On the other hand, during a down market like the U.S. experienced a few years back, our city and county still experienced positive movement in the real estate market as a direct result of our proximity to the border.

For a seller like the previouslymentioned one in Semiahmoo, whose home was sitting vacant, having a cash buyer was a blessing – an opportunity to sell when no one else was buying. Therein lies the advantage of thinking international.

Our cross-border relations allowed our market to experience less drastic impact from a down market than many locations around the nation.

Business owners have a direct gain and benefit on a regular basis, as our Canadian and foreign national buyers find Bellingham and Whatcom County real estate attractive.

On purchase and sale agreements, the contract now asks sell-

ers if they are a foreign national.

Washington finally caught up with most of the nation on this requirement. The reason for the question is that a Federal tax (FIRPTA) is collected at the time of sale by the title

“International purchasers in the U.S. have become an upscale group of buyers….”

– Lawrence Yun, a chief economist with the National Association of Realtors

company. If the designation isn’t made, the buyer can be held liable.

One out of every 12-14 buy-

ers this year in the U.S. will be a foreign national. I find that most sellers are very aware of this as I present an international marketing plan in my listing presentations.

We have tracked 183 different countries viewing our website, so make sure you are being seen as a seller.

Real estate is still the best investment available. I have placed an offer on a home, and I am waiting for the response to my counteroffer. My primary home will become my second rental. Why? Because loans with today’s interest rates are like free money. I bought my first home in the 1980s with an interest rate of 12.9 percent.

As a buyer or seller, prepare yourself to compete against cash transactions. In Vancouver, B.C., many buyers using a lender can’t compete.

Educate yourself and prepare to think globally.

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GUEST COLUMN: AFFORDABLE CARE ACT Roger Stark MD (ret.) | Healthcare Policy Analyst Washington Policy Center Dr. Stark is a retired cardiothoracic surgeon. He is the author of two books on national healthcare issues, including Our Health Care Crisis, How It Happened, and How We Can Fix It, and an in-depth study on the impact of the Affordable Care Act (ACA) in Washington state. He has testified before three Congressional committees on the ACA. He graduated from the University of Nebraska College of Medicine, served residencies in Seattle and the University of Utah, practiced in Tacoma, and became a co-founder of the open-heart surgery program at Overlake Hospital in Bellevue.

Impact of the Affordable Care Act on businesses with 2016 mandates I

n March 2010, after 14 months of intense debate and with narrow partisan votes and substantial bipartisan opposition in Congress, President Obama signed the Affordable Care Act (ACA), or Obamacare, into law. Never in U.S. history has such broad, wide-sweeping social legislation become law by such a slim political margin.

The law is being phased in and is scheduled to be fully implemented by 2018.

The ACA is based on an individual mandate that requires every adult citizen of the U.S. (18 or older) to have government-approved health insurance, or otherwise pay a penalty. Enforcement of the mandate began in 2014.

Money to pay for the ACA comes from two sources – new and expanded taxes, and significant cuts to Medicare. After administrative expenses, the money is dispersed to: 1. Pay for subsidies in the state 98 | BUSINESSPULSE.COM

and federal health insurance exchanges; 2. Fund the expansion of the Medicaid entitlement program.

The exchanges function as insurance brokerages where people can purchase government-approved health insurance and, depending on income, receive taxpayer subsidies to help pay for the premiums.

In 2012, the U.S. Supreme Court ruled on the legality of the ACA. In a surprising two-part ruling, the Court found that the penalty that Congress imposed on individuals for not having approved health insurance counts as a “tax” under the U.S. Constitution. The Court also found that the federal government could not constitutionally force states to expand their state Medicaid programs.

Officials in Washington state chose to expand Medicaid and to set up a state health insurance exchange.

The ACA forces employers with 50 or more full-time equivalent employees (FTEs) to provide employee health insurance, or to pay a tax, which the Obama Administration is now calling a “shared responsibility fee.”

“Full time” for an employee

is defined as 30 or more hours a week. This mandate was delayed until 2015 for employers with 100 or more employees and until 2016 for employers with 50-99 workers.

Employers with 100 or more workers had to provide health insurance for at least 70 percent of their work-

Employers of all sizes are experiencing a significantly greater regulatory burden, more government-mandated paper work, fewer choices in health plans for their employees, and no mechanism to control costs…(and) a severely negative impact on employment. force last year, and that increased to 95 percent starting Jan. 1, 2016.

The employer tax hits businesses at $2,000 for each uninsured

employee, annually, with the first 30 employees exempted. All insurance plans must meet a government-established minimum value.

If they do not, the tax becomes $3,000 for each employee who either receives taxpayer subsidies or receives Medicaid.

Small businesses may qualify for tax credits determined by the number of employees and by average wages. Basically, the smaller the business, the larger the tax credits its owner could receive.

The ACA attempts to establish an exchange marketplace for employers with fewer than 50 fulltime-equivalent (FTE) employees. The Small Business Health Options Program (SHOP) was designed by Congress to help “businesses provide health coverage to their employees.”

Employers with more than 50 FTEs can use SHOP starting this year, and employers with more than 100 FTEs will have access to the program starting in 2017.

The demand and interest level of employers in an insurance exchange such as SHOP was never determined. Only a few insurance companies offer plans in the SHOP Exchange program in Washington state.

New Medicare taxes began in 2013. The Medicare tax on income went up 0.9 percent a year on wages over $200,000 for individuals, and over $250,000 for married couples and for small businesses filing as individuals. Taxpayers at these income levels are also required to pay a new 3.8 percent tax on “unearned” income.

Starting in 2018, a 40 percent excise tax will be placed on highvalue health insurance plans, socalled “Cadillac plans.” That tax starts at $10,200 for individual plans and $27,500 for family insurance plans.

Employers of all sizes are experiencing a significantly greater regulatory burden, more government-mandated paper work, fewer

choices in health plans for their employees, and no mechanism to control costs. These provisions will have a severely negative impact on employment.

In many cases, paying the tax for not offering health insurance will cost employers considerably less than paying for employee health coverage. Some companies have decided to pay the smaller amount in taxation and to force their employees into the governmentmanaged insurance exchange plans.

Other companies have cancelled coverage for part-time workers.

As a result, many workers are losing their current health coverage, despite President Obama’s repeated promise that no one would be forced into another health plan or to change doctors.

Other employers have begun reducing employee work hours to avoid the artificial 30 hours a week threshold set by the ACA. Many employers are limiting their company’s growth to no more than 49

employees to avoid the employer mandate.

The ACA’s trouble stems from its use of coercion. Successful health care reform should be based on three voluntary principles that put patients in charge of their health care: • Patients, as consumers of health care, should have insurance choices with stable premiums and plans that fit their needs – not government mandated insurance.

• Patients should have security in knowing they can get medical care when and where they need it.

• Finally, patients should have protection to know health care is accessible, even with pre-existing conditions.

As Obamacare enters its sixth year, more and more people are looking for alternatives – ones that take a fresh approach to reform using these patient-centered principles.

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GUEST COLUMN: PERSONAL INVESTING Jacob Deschenes | Owner Era Capital Management LLC Jacob Deschenes is a licensed investment advisor operating a registered, fee-only investment management firm serving individuals, wealth advisors, and corporate clients throughout the United States. He uses contrarian methodology with uniquely-developed matrixex and mathematical and statistical analyses. Visit www.eracapitalmanagement.com.

Divesting of fossil fuel-related opportunities is hogwash The notion is hardly possible, let alone desirable

A

n environmental movement that is gaining traction suggests divesting large-investment portfolios from owning fossil fuel-related companies.

Across the nation, especially many universities and their boards watching over foundations (such as Western Washington University right here in Bellingham) and endowment funds have experienced pressure to make this change.

The pressure comes from selfstyled, environmentally-conscious student associations and other national organizations. Locally, the Western Washington University Foundation was asked to divest its portfolio holdings from any fossil fuel related companies,* but choose not to participate in this illinformed initiative.

The idea of filling the world's energy needs without the use of fossil fuels could be considered a wellintended, perhaps noble endeavor.

But oil, coal, and natural gas are necessary material inputs to nearly 100 | BUSINESSPULSE.COM

everything aspect of our daily lives that cannot be replaced completely by wind and solar power sources.

In the marketplace, we must recognize the benefits of having affordable, available-on-demand energy if we want a vibrant economy. Investment fads often get traction around an emotional appeal to draw you in – and fossil fuel-free investing is an example. Is it even

Look at the top 10 constituents of stock free fossil fuel, index holes begin to form large enough to drive a Mack truck through. possible to invest in a portfolio free of fossil fuels as the index promoters claim?

It's a strong claim to be free of fossil fuel investment when free by its very definition means zero. If we look at the top 10 constituents that make up this stock free of fossil fuel, index holes begin to form large enough to drive a Mack truck through.

Berkshire Hathaway, for example, is by no means a fossil fuelfree company; it fully owns BNSF Railways, which is a transportation company, and any transportation

company needs fuel to move goods.

Investors need to exercise caution before removing entire sectors – in this case, the energy and utility sectors – from their portfolios and look under some layers. Not only because of diversification purposes, but you’ll discover also that these sectors form the backbone that allows every other business sector to exist.

Other examples, by taking a deeper look past the seemingly simple concept of fossil-free investing: • Service-based companies such as financial institutions and technology firms are not exempt from the needs of fossil fuels. Companies require electricity for heating and air conditioning, as well as computer equipment office furniture and so on, all of which would not be possible without carbon-based fuels.

• The Nissan Leaf by no means is a zero-emission product. The mining, refining, smelting, manufacturing, and transporting of the raw materials that make up the finished product gobble up considerable amounts of carbon-based fuels before becoming a finished product.

With so much of our consumer products made overseas, the paradox out-of-sight and out-of-mind takes root. We cannot be naïve.

TOP 10 CONSTITUENTS (30-JUNE-2015) The supply chain that makes products become reality is reliant on carbon-based fuels, and therefore no matter what the industry or business, everyone has a fingerprint on it – including the food you eat.

In order to genuinely say that you're investing in a fossil fuel-free manner you must go beyond the surface of any product or service and analyze the full supply chain involved.

You, as an investor, can combine profit motive with societal good that meets your beliefs. However, I’d argue that fossil fuel-free investing doesn't exist.

Consider when you build your portfolio that you avoid restricting yourself to the point where diversification can't be achieved. Our economy is interconnected in such a way that if one sector struggles, it affects all. Without affordable energy, including oil, coal, and natural gas, the price of just about everything we use today would be out of reach to many or not even possible

Company

Index Weight

Sector

JP Morgan Chase & Co

1.27%

Financials

Apple Inc

1.27%

Information Technology

Wells Fargo & Co

1.26%

Financials

Pfizer Inc

1.25%

Health Care

Johnson & Johnson

1.25%

Health Care

General Electric Co

1.25%

Industrials

Procter & Gamble

1.24%

Consumer Staples

Berkshire Hathaway B

1.23%

Financials

Microsoft Corp

1.22%

Information Technology

Verizon Communications Inc

1.17%

Telecommunication Services

Source: http://fossilfreeindexes.com/fossil-free-indexes-us/

to produce.

So, while those appealing to the board in charge of stewardship of the Western Washington University Foundation to exercise environmental conscience and divest of companies and sectors that support fossil fuels mean well, they should

be careful what they ask for.

It does not benefit the greater good of maintaining a stable economy. * See WWU Foundation letter at http://www.wwu.edu/alumni/ eblast2014/foundation/letter.html

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GUEST COLUMN: LABOR Lee Newgent | Executive Secretary Washington State Building & Construction Trades Council Lee Newgent serves as executive secretary of the Washington State Building & Construction Trades Council (WSBCTC) that represents more than 70,000 members. The WSBCTC, AFL-CIO, a voluntary coalition of more than 60 construction-related labor organizations, is a member of the Alliance for NW Jobs & Exports.

Terminals in costly limbo As reviews drag on, will opportunity wait or invest elsewhere?

W

ashingtonians who work in labor, agriculture, and business, and whose livelihoods rely on the trade industry, have long awaited state government agencies to move ahead on environmental reviews on two projects that will ultimately determine the future of our trade-based economy.

These delays have resulted in continuing uncertainty for both (a.) a workforce benefiting from expansion for proposed shipping terminals in Bellingham and Longview, and (b.) investors who plan to infuse more than $1 billion in private capital into this region’s transportation infrastructure.

The delays and the related regulatory overreach put our standing as an export leader in jeopardy.

Investments might go elsewhere.

Ports in California and Canada have positioned themselves to compete with Washington state for shipping products to Asia and other global markets.

As we look ahead in 2016, questions remain: Will we choose responsible growth of our export 102 | BUSINESSPULSE.COM

capability, or will we allow activist political agendas to cause more job losses and less economic opportunities?

The drum beat by opponents of trade terminals continues with objections to increased rail traffic, using this as a reason to block port capacity expansions. A study released last summer by the Puget Sound Regional Council, however, forecasts that rail traffic will double in Washington in the next few years, regardless of the outcome of the fossil fuel debate.

Expert analysts in the industry agree that coal will continue to travel by rail through Washington for decades to come. If we continue to stall export capacity, trains traveling through the region will head north to Canadian ports. Another scenario: Asia purchasing lowergrade coal from sources outside the U.S., more harmful to the environment and with no economic upside for the region.

The Washington State Department of Ecology’s “cradleto-grave” approach stands unprecedented. The well-documented plans for these terminals show they were designed to meet or exceed the high environmental standards of the Pacific Northwest. So why have state departments in Washington continued to delay the environmental reviews for these projects? The delays clearly have a chokehold on

our state’s competitiveness.

Every waiting day that passes hinders family-wage jobs, not only close to the terminals themselves, but all across the state. The recent Alcoa closure and impending layoffs of nearly 500 workers in Ferndale brings the economic picture for Whatcom County

A study released last summer by the Puget Sound Regional Council, however, forecasts rail traffic will double in Washington state in the next few years regardless of the outcome of the fossil fuel debate. into sharp focus. Opportunities for trades workers in the area are already limited. As former mayor Gary Jensen of Ferndale wondered aloud recently, “What’s next?”

As labor leaders have said previously, no other projects on the horizon hold the promise of such a scale and benefits over such a longlasting time frame as the proposed terminal expansions in Bellingham and Longview.

Also, many specialized trade

crafts help create and build large infrastructure projects like these export terminals—representing hundreds of quality jobs in the building trades. Those are careers with good pay, benefits, healthcare, and pensions that our workers need in providing for their families.

What’s more, many of these large-scale projects are absolutely vital to facilitating apprenticeship programs. Those allow the next generation of labor-industry workers to receive training for safety-first introduction these important skilled professions. They include pipe fitters, electricians, iron workers, operating engineers, welders, steel workers, truck drivers, carpenters, and roofers, among many others.

Our coalition members understand that investment from coal provides the resources to expand the trade terminals. They also know the outcome is much broader than any single commodity. Agricultural products will benefit from expanded capacity. For those whose jobs are not directly impacted by the terminal expansions, the revenue they generate cannot be overlooked: millions of new tax dollars that will flow annually into our public schools and social programs.

Regulatory overreach blocking private investment of crucial trade infrastructure improvements is the last thing Whatcom County’s economy needs. The delays stand in the way of continued growth as a vital trade gateway. Trade and exports must thrive to keep Whatcom County and Washington state competitive and desirable for investments.

On behalf of labor, all businesses, and agriculture around Whatcom County, our organization looks back at 2015 as a year spent waiting for answers. We advocate for the discussion to move forward efficiently in 2016 with positive, fact-based solutions so these vital projects can become a reality.

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GUEST COLUMN: LEAN AND PERFORMANCE Randall Benson | Lean and Performance Consultant Randall Benson is a management consultant, author, and Lean master based in Whatcom County. You can visit his blog “The Lean Heretic” at www.leanheretic.com, and his website at www.bensonconsulting.com.

Does ikigai drive high performance?

Why some people seem to light up at work

Y

ou know them; they bring passion, creativity, imagination, and a sense of purpose to what they do. They make things happen. They are the highfunctioning individuals who form the backbone of every high-performance organization.

What makes them different from the others?

One interesting possibility is that more is going on than simply having passion, or, as renowned writer/ lecturer Joseph Campbell put it, “Following your bliss.” High functioning employees might be feeling what the Japanese call “ikigai” (pronounced ee-KI-guy).

Could the concept of ikigai contribute to our understanding of high performance? Most definitely, according to many recent studies.

Ikigai loosely translates as a “reason for being,” or a “reason to get up in the morning.” People who feel ikigai bring their full potential to their work (and the other parts of their lives). Studies reveal that those who feel ikigai are also significantly happier than most others.

104 | BUSINESSPULSE.COM

The Ikigai diagram portrays the nexus of four spheres of purpose: 1. That which you love.

2. That which the world needs.

3. That which you are good at.

4. That which you can be paid for.

Feelings of ikigai develop through a journey of exploring and ultimately realizing how they fit into the four spheres of purpose.

The spheres combine in different ways to create passion, mission, profession, and vocation.

Ikigai: “reason for being,” or a “reason to get up in the morning.” People who feel ikigai tend to bring their full potential to their work…and also are significantly happier.

Ultimately, high performers become capable of tapping into a sweet spot at the center – where their sense of ikagai is always available; feelings of ikigai intensify gradually as you develop clarity of purpose.

When you experience ikigai, you approach work with a heightened sense of purpose. Work provides an opportunity to express ikigai through more passion, creativity, and imagination in performance.

Researchers report that individuals who feel ikaigi experience heightened feelings of satisfaction and fulfillment and feel more worthwhile and valuable.

They tend to connect with the purpose of the organization, not out of compliance, but because it moves them along their own path of selfrealization.

People who experience ikigai are different, and that difference may be more than superficial. In his TED Talk, Dan Buettner described a study of the residents of Okinawa that suggests that experiencing ikigai correlated with positive changes in physiology, improved mental resilience, and remarkably long and productive lives.

If ikigai holds the potential to inspire high performance in organizations, then we should ask ourselves how we can encourage employees to find their ikigai. Here are six tips for fostering ikigai in organizations: 1. Share the ikigai diagram.

Many people find it highly engaging and begin connect-

ing it to their own sense of life’s purpose.

2. Create sufficient degrees of freedom for employees to explore, discover, and express creative and innovative ideas. Make sure employees can spend creative time to improve their work, products, or the customer’s experience.

3. Make sure your organization has a powerfullystated higher purpose, and communicates how that purpose will relieve suffering and make the world a better place.

4. Encourage employees to continually develop their capabilities not simply to do their jobs well, but so they can benefit the organization in yetunknown ways.

5. Respect and value employees by recognizing their special talents, skills, and contributions. Reward them for developing capability.

6. Cultivating your own feelings of ikigai is the best way to foster it within your organization. To that end, for example, I’m writing out my personal purpose in each sphere.

I love working with organizations that demonstrate an infectious spirit of purpose, where employees seem engaged and excited. They may not call it ikigai, but they appear to embody its potential.

What would the ikigai spirit look like in your organization?

WHATCOMBUSINESSALLIANCE.COM | 105

GUEST COLUMN: HUMAN RESOURCES Rose Vogel | HR Programs for SHRM Rose Vogel is a vice-president co-chair of the Programs Committee for the local Mt. Baker Chapter of the Society for Human Resources Management (SHRM). She serves as director of human resources for Anderson Paper & Packaging, a company with 62 employees. She is a graduate of WWU-Fairhaven in Human Resources labor relations.

Successful recruiting relies on applicant trends

H

uman resources leaders are quick to say, “People are our most important asset.” I agree, and as an HR leader I also think employees have the potential to be an employer’s biggest liability.

That’s why recruiting should receive strong emphasis, with solid HR support. Most employers aren’t large enough to have a dedicated recruiter in their HR department.

Often, the owner or CEO relies on an HR generalist, an outside recruiting agency, or a staffing agency to avoid the liabilities of a bad hire.

Either way, here are some impor-

tant guidelines: A recent study (see footnotes) showed what recruiters want to see in a resume • 54%: A job candidate’s entire professional experience on their resume.

• 20%: Up to 20 years of job history.

• 18%: Another length of employment information.

• 8%: 10 or fewer years.

The study also reflected feedback on the desired length of a resume.

Nobody said a resume should be limited to one page. Almost twothirds (63%) thought 2 pages was enough; 14% four pages, and 17% said it should run as long as the applicant feels it needs to.

When recruiting, remember that talent isn’t the only criteria for

longevity. Look for skill combined with motivation, attitude, and passion. How does your candidate handle challenges? Does the candidate take on goals and challenges with a can-do, problem-solver approach, or does the candidate blame external factors for incomplete goals?

Now that we know what recruiters prefer, let’s look at applicant statistics: • 70%: Likely to use social media in job searches.

• 89%: Likely to use mobile devices during job searches.

• 51%: Apply for jobs using mobile devices.

Despite this new normal in talent acquisition and despite CEOs rating talent as a top concern, If 89% of job seekers report they might use a mobile device to search, is your

RECOMMENDED READING ON THE TOPIC OF RECRUITING • • • • •

HR Magazine SHRM website Human Resource Management by Gary Dessler Accountability in Human Resource Management by Jack J. Phillips The Essential HR Handbook by Sharon Armstrong and Barbara Mitchell

106 | BUSINESSPULSE.COM

One in six newly-hired employees quit their jobs between the first week and the third month of starting in a position. Almost one-fourth of them said (in a survey) that receiving clearly-defined guidance about their responsibilities would have prevented them from leaving.

HRIS system adaptable and does your application process support applicants’ mode of responding?

WHY ON-BOARDING MATTERS One in six newly-hired employees quit their jobs between the first

week and the third month of starting in a position. Often, that results from lack of a defined process for getting them started and settling in during the first year.

Of those who left within the first six months, 23% said that receiving clearly-defined guidance about their

responsibilities would have prevented them from leaving.

One-third of those who left within six months said they received little or no on-boarding.

And, 15% said the lack of an effective on-boarding process contributed to their decision to leave.

For maximum effectiveness, onboarding should start even before the new hire’s first day and last at least one year, according to staffing experts.

An understanding of tendencies in recruiting and in application of orientation (on-boarding) steps, guided by an HR professional, will lead to smoother acclimation of a new hire and to more longevity.

SOURCES OF STUDIES cited in this article, all within the last two years: Challenger, Gray & Christmas survey of 150 recruiters. Glassdoor Aberdeen Group.

McKinsey. Harvard Business Review.

Bamboo HR survey of 1,000 employees.

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LIFE IN THE TECH LANE Experts at Tech Help in Bellingham, a division of Big Fresh, provide answers to the questions that are trending among clients. If you have a tech question for our experts, send an email to getanswers@gotechhelp.com

Why Apple, Samsung, and Android Pay signal the future of payments W

ithin the last year we’ve become aware of many well-known retailers targeted in creditcard data thefts. These breaches generally happen one way:

The computers that process payments when you check out (a modern cash register) get hacked and instructed to silently send your credit-card data to a server computer controlled by the hackers.

To avoid these sorts of problems, you can use an app already loaded onto your smartphone. Utilizing Apple Pay, Android Pay, Samsung Pay, or another smartphone payment solution, you’d be less likely to fall victim to such a breach.

You can read online the technical details of how Apple Pay, Android Pay, Samsung Pay, and other smartphone payment systems work. In summary, all of these services provide more security than traditional plastic card-based payments. How so?

• When you use one of these 108 | BUSINESSPULSE.COM

•

apps to pay from your smartphone, the retailer never gets your actual credit card number.

Instead, they get a virtual card number and a one-time-

When you use these apps to pay from your smartphone, the retailer never gets your actual credit card number…. a one-time-use code allows them to charge only once. use code that allows them to charge something to your card only once.

If that retailer’s payment database gets compromised, the attackers wouldn’t be able to charge anything else to your card. They simply don’t have what they need to do that; they’d need your phone to generate another one-time-use code.

If you’ve been shopping on the Internet for years you’ve probably used something similar – PayPal. Despite many valid criticisms that can be leveled against this service, it works similarly to the smartphone apps.

(The negatives of PayPal: They are influenced by U.S. government policies, such as disallowing donations to sites like WikiLeaks.

PayPal is involved in several classaction lawsuits over their policy of holding 30 percent of vendor transactions for 90 days for some merchants and sellers. PayPal argues that is intended to make funds available to customers to cover a fraudulent transaction, providing PayPal the funds to refund the seller.)

Still, it has been successful (owned by eBay) because you’re not handing out your credit-card details to every store you do business with.

The same applies to Apple Pay, Android Pay, Samsung Pay, and other services.

While smartphone payment systems are not available everywhere, the security benefits of these apps pay off in the long run.

8 Best Apps

for skiers and snowboarders Compiled by Tech:Help / Big Fresh

Snow is falling and the slopes are busy. These apps can help you save time, inconvenience, and money.

OFFGRID, FOR ANDROID Recently-released, it’s made for outdoor enthusiests who have trouble unplugging at the right moments. By a push of a single button, OFFGRID blocks all incoming messages to your smart phone. With a firewall that can be surpassed by certain exceptions, and an automatic reply letting possible peace-time intruders know you’ve stepped away a moment, it’s per fect if you like to escape for a couple of hours. Offering a report detailing what you’ve missed while you were out, OFFGRID is for those who like to earn their escapes as well.

SKI TRACKS, FOR IPHONE Ski Tracks is a great mobile GPS app that allows you to track your runs, routes, and elevation all day as you bomb down some black diamonds. With over 14 hours of available storage, you’ll have to resort to night skiing to fill up its memory. And the best part, when you get home you can upload your day’s data onto your computer and get a cool portrait showing what your day was like.

LIFTOPIA, FOR IPHONE Liftopia does offer local snow and ski reports, so you can check out the closest powder. But its best use comes from the lift ticket discount finder. Browse the updated selection of deals from your favorite mountain’s

ticket windows. Find that great deal and suddenly that dream run of yours, or that weekend vacation, just became a little bit less expensive.

SKI & SNOW REPORT, FOR IPHONE AND ANDROID A great place to start, the Ski and Snow Report app tracks your location and displays ski and snow reports in the surrounding mountains.

Free for both users, this app is great for the info; fresh snow, snow base, lifts open & lifts closed, trail maps, and mountain webcams. And it’s a quick reference for deciding how many layers to wear or for sniffing out powder stashes.

ALPINEREPLAY, FOR IPHONE AND ANDROID For the most comprehensive set of stats about your ski day, turn to AlpineReplay. This app for both systems tracks not only your speed, vertical drop, and total distance, but you can also check out calories burnt, airtime, and time spent on the lifts. A great way to break down your day and record the progress you make all season long.

PEAKFINDER EARTH FOR IPHONE AND ANDROID

aren’t too heavy, a smartphone can answer that. Just point your camera in the direction of your mysterious peaks, open either app and see for yourself. With detailed listings of every thing that peaks, this app will get you knowing the landscape you see before you.

EPICMIX, FOR IPHONE AND ANDROID A social app for some of the biggest resorts in the west (Vail, Beaver Creek, Breck, Keystone, +6 more), this app allows you to find friends, share mountain statuses, and track your vertical distance. Earn pins along the way denoting you as king/ queen of the mountain, and gain all the professional pictures taken after your visit to the resort. Get your free account today.

KINOMAP MAKER, FOR ANDROID If you enjoy geocaching, or the idea of leaving little presents hidden on a map; the Kinomap Maker is per fect for you. This app allows you to record video at specific geographic locations, and using your phone’s GPS, store the video at that particular location. It is then thrown onto Google maps, publicly or privately, to be seen by those who travel there next. It’s a fun way to leave your mark without touching a stone. Or perhaps an effective tool for an elaborate scavenger hunt…?

One question commonly heard atop the ski lift is “what peak is that over there?” And now, if the wind gusts WHATCOMBUSINESSALLIANCE.COM | 109

SCENE ON THE STREET

SCENE

ON THE

STREET

On the corner – Merchbot and Maniac Photo and Essay by Mike McKenzie

T

he Black Drop Centurian greets patrons in downtown Bellingham with a message like “We support our teachers,’ or “Gift baskets – we haz them.”

The doorman is also known as Merchbot, the name of a small business that closed. “The owner, Django at the (nearby) comics shop, loaned it to us,” Ryan Siu said. Siu is co-owner of the Black Drop Coffee House along with Stephanie Oppelaar.

Teri Bryant and Alexarc Mastema V opened the Black Drop in 2002.

They operate Maniac Coffee Roasting. Black Drop is known for Maniac creations. The “Fat Elvis” with peanut butter, banana, and chocolate (Elvis Presley’s favorite snack reportedly was a fried peanut butter and banana sandwich). “The Level 10 Fireball” is a chipotle mocha breve, and “Electric Chog” consists of – what else? – chai tea and egg nog.

The Black Drop evolved into one of the key storefronts in the rejuvenation over the last several years of the Bay Street/Champion neighborhood, along with Temple Bar, Mount Bakery, the Pickford Theater, the Spark!

Museum, Bayou on Bay, and The Woods Coffee.

Siu stepped out to visit from behind work benches and tools; the Black Drop is expanding. “We’re baking our own goods now and need kitchen space,” he said, “and we’ll have meeting space for groups, and some coffee cuppings.”

110 | BUSINESSPULSE.COM

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ADVERTISER INDEX American Canadian Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Anderson Paper & Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Archer Halliday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Banner Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Barkley Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover Bellingham Bells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Bellingham Cold Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Birch Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Care Medical Group / Express Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Chmelik Sitkin & Davis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114 Chocolate Necessities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Data Link West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 DeWaard & Bode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Faber Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 Four Points by Sheraton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Gateway Centre Executive Suites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Gravity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Haggen Market Street Catering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Hardware Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Heritage Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Industrial Credit Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Invent Coworking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Jalapenos Family Mexican Restaurants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Larson Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Laserpoint Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Lyndale Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Mills Electric. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Noggin Branding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Northwest Propane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101 PeaceHealth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Peoples Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Perry Pallet Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Print & Copy Factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 ReBound Physical Therapy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Saturna Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SaviBank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Silver Reef Hotel Casino Spa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Skagit Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Tech:Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108 Vistage Worldwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 VSH CPAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Washington Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 WECU. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Whirlwind Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 WHATCOMBUSINESSALLIANCE.COM | 113

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Forward Thinking Skagit Bank is always looking ahead, providing customized financial solutions to help you stay on the right path. We are a local, independent bank, firmly rooted in the Northwest and serving our business communities since 1958.

We believe in Genuine Lasting Relationships.

We are Skagit Bank.

Genuine Lasting Relationships (800) 246-4402 | SKAGITBANK.COM

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