Business Pulse magazine January|February 2019

PULSE B

U

S

I

N

E

S

S

JANUARY/FEBRUARY 2019

2019

ECONOMIC FORECAST

Coming off a record 2018, how will our economy and your business fare this year?

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | A

FOCUS ON YOUR BUSINESS LET US FOCUS ON YOUR 401(k) PLAN Running a business is complicated enough.

Our low-cost 401(k) platform helps you cut through the jargon with customizable plans that are easy to operate.

Email, call, or click to learn more.

401k@saturna.com 1-833-STC-401K (1-833-782-4015) www.saturna.com/401k

Wide variety of investment choices Easy plan transfers Free evaluations Full service administration

Investing involves risk, including the risk that you could lose money.

B | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

SaviBank is a SBA Preferred Lender (That’s fancy speak for quicker turnaround times on business loan applications) As a preferred lender we have the authority to approve SBA guaranteed loans without prior SBA review, enabling us to provide faster loan approval for our business clients.

And because we’re a locally-based bank, we take a personal interest in bringing long-term success to all of our clients and seeing our community thrive.

Now that’s Savi.

Burlington 360.707.2272 1854 S. Burlington Boulevard Bellingham 360.685.0080 1910 Broadway

Freeland 360.331.3717 5575 Harbor Avenue, Suite 100 Mount Vernon 360.419.0300 208 East Blackburn Suite 100

Oak Harbor 360.720.2202 390 NE Midway Blvd B-107 Anacortes Loan Production 360.755.3436 1015 14th St Suite B

SaviBank.com

Your Local Rental & Sales Store on Kentucky St. in Bellingham 734.5717

PULSE B

U

S

I

N

E

S

S

VOL. 44 | NO. 1

Equipment - Tools - Product for Rental and for Sale. A Retail Store Too! DIY Projects • Home Maintenance • Gardening • Lawn Care

PUBLISHER | Tony Larson ASSOCIATE PUBLISHER | Melissa Vail Coffman EDITOR | Mike McKenzie

Bellingham 1619 Kentucky St. 360.734.5717

Mount Vernon 2609 Old Hwy. 99 S. 360.428.7788

Anacortes 8876 S. March Pt. Rd. 360.293.7788

Sitka, AK 1382 Sawmill Creek Rd. 907.747.5315

LIFESTYLE EDITOR | Danielle Larson COPY EDITOR | Larry Coffman CONTRIBUTING WRITERS | Dave Brumbaugh, Sherri Huleatt, Cheryl Stritzel McCarthy, Mike McKenzie, Mary Louise Van Dyke GUEST COLUMNISTS | Rich Appel, Todd Myers ART DIRECTOR | Scott Book PHOTOGRAPHY | Scott Book, Tiffany Brooks SENIOR ACCOUNT EXECUTIVE | Jon Strong ACCOUNT EXECUTIVE | Ashley Butenschoen AD TRAFFIC | Maggie Stafford SUBSCRIPTIONS | Amanda May ADMINISTRATION | Danielle Larson

— WBA BOARD OF DIRECTORS — BOARD CHAIR | Doug Thomas, CEO, Bellingham Cold Storage EXECUTIVE COMMITTEE | Jane Carten, President/Director, Saturna Capital; Pam Brady, Director NW Government & Public Affairs, BP Cherry Point; John Huntley, President/CEO, Mills Electric; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC BOARD OF DIRECTORS | Janelle Bruland, President/CEO, MSNW; Tyler Byrd, Founder/President, Red Rokk Interactive; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Owner, Tradewinds Capital; Jonathan Ensch, VP/Sr. Relationship Manager Commercial Banking, Washington Federal; Sandy Keathley, Founder, K & K Industries; Tony Larson, President, Whatcom Business Alliance; Lynn Murphy, Sr. Government Affairs Rep, Puget Sound Energy; Laura McKinney, NW Regional Government & Public Affairs, Alcoa Intalco Works; Becky Raney, Co-owner, Print & Copy Factory; Sarah Rothenbuhler, Owner/ CEO, Birch Equipment; Patti Rowlson, Owner, PR Consulting; Galen Smith, Owner, Coldstream Farms; Billy VanZanten, President, Western Refinery Services, Josh Wright, VP/Broker, Bell-Anderson Insurance For editorial comments and suggestions, write editor@ businesspulse.com. The magazine is published bimonthly at 2423 E. Bakerview Rd., Bellingham, WA 98226. 360.746.0418.

The yearly subscription rate is $30 (U.S.). For a free digital subscription, visit businesspulse.com. Entire contents copyrighted © 2019 Business Pulse. All rights reserved.

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

2 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

 �

Â?

"Wow Thank You�

leading edge

AFTER HOURS

and

NEWSMAKERS • NUMBERS • OUT AND ABOUT ENVIRONMENTAL STEWARDSHIP • PHILANTHROPY • GUEST COLUMNS

DINING / BEVERAGES / BOOKS

What Happens to That Lose-Weight New Year’s Resolution, and Other Insights From a Fitness Pro

By Mike McKenzie

usiness Pulse will have a new No. 1 in its 2020 rankings of privately owned Whatcom County companies. The Alpha Technologies group of companies (“Alpha”), which topped the list the last five years, has been purchased by a publicly traded company.

EnerSys of Reading, Pennsylvania, announced plans to acquire Alpha by the end of 2018 for $750 million ($650 million in cash, and $100 million in EnerSys stock or cash, depending on the stock price).

“Lock, stock, and barrel” is how Alpha Co-founder Grace Borsari described the deal. EnerSys said it acquired all issued and outstanding shares and certain assets of select entities within Alpha, including her company, Altair Advanced Industries, which manufactures all components for the Alpha Technologies group. The other Alpha Co-founder and largest stockholder, Fred Kaiser, called the deal “a marriage made in heaven.”

Kaiser and Borsari started Alpha Technologies in 1975, assembling backup power units for cable TV in an apartment in British Columbia. Now, as a global, multifaceted provider of power sources, Alpha will add $600 million in annualized revenue, as EnerSys described in its announcement, by “combining world-class complementary portfolios, (and) creating the only

fully integrated DC-power solutions provider.”

In a telephone interview, Kaiser explained that his characterization of the deal was because Alpha is staying put in its headquarters across from the entrance road to Bellingham International Airport. “They like our location, and see the potential for growing it even more here,” Kaiser said. “That’s why we picked them. We could have made a deal with bigger companies for more money, but they’d want to break us up, close everything, and move our operations. We’re proud to have built a great brand from scratch, and now people know where Bellingham is.”

Kaiser added, “Another key point is that we’re not walking away…it’s more of a merger than a sale. I’ve been appointed as a director at the highest level. When looking at a transition plan (for retirement) we wanted to do what’s best for the stakeholders, not just ourselves. That meant taking care of employees, customers, and community. This might turn me into a smaller fish in a larger pond, but it’s the same pond.”

In the Business Pulse annual listing of the Top 100 privately held companies later this year, the Alpha Group will remain at the top because the rankings will be based on 2018 revenues. But with EnerSys being publicly traded, a new No. 1 will surface in 2020.

Business Pulse: Studies show losing weight as the No. 1 New Year’s resolution every year, but more often than not, it’s broken. Why? GENE: The main reasons people fail are that they don’t set realistic goals and they don’t have a plan. Their expectations are way out of bounds. They say, “Yeah, I want to lose 20 pounds,” and that’s as far as it gets, because they think that happens quickly.

When it doesn’t, that’s demotivating.

What do you use as a motivator?

What works is creating a system where you can find success.

During the first year, break down some benchmarks—where you need to be in a month, two months, etc. That drives you to be more motivated. You see the progress and the benefits, and you’re creating value by charting progress.

What makes it so hard mentally?

The reality is that we’re designed to economize movement and energy. Every time you get set to work out, the brain is going, “No, no, no, no.” It’s telling you to conserve energy. When you get to a point where you understand that—after feeling clumsy and awkward at first—you get a second wind. The body turns on and goes.

That doesn’t sound easy.

Sure, I can tell you all day long, but it doesn’t exist for you. All you’ve ever related to with exercise is discomfort. When you push yourself, it gets to be like a toothache. There are ways to get around that.

46 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

As a gluten-loving, carnivorous cheese fiend, “non-meat beef ” isn’t exactly on my personal menu.

But I tried it and liked it at Wild Oat Bakery and Café, a new restaurant on Cornwall Avenue in Bellingham. The café opened last summer and is delighting vegan and non-vegan customers alike. “There’s one couple who drive all the way from Seattle for our linguini and ‘meetballs,’” said Crystal Davis, the café’s owner who’s worked every day since opening the restaurant in July 2018.

“You don’t have to be vegan to enjoy a good vegan meal,” Davis said. That’s why she’s packed her menu with popular comfort-food staples featuring a vegan twist, including a French dip, the “meetball” sandwich, gyro, reuben, “fysh” filet sandwich, and “The Impossible Burger”—a towering vegan burger with all the fixings.

Nearly all of the café’s ingredients are housemade, including a mushroom-based, “non-meat beef,” all salad dressings, sauces, sauerkraut, and dessert pastries. Davis even concocts her own milk formula and the chocolate ganache for a mocha.

Most of the dishes also are organic, and Davis sources as many local ingredients as possible while keeping menu prices down. Their most expensive item goes for $14.95. All local businesses also get 10% off at the café.

Davis opened the restaurant to give vegans more dining options. “If you’re a vegan and you go out to eat, your choices are so limited—you might get one to two options on the menu,” Davis said. “I wanted to create a nice little café where vegans could eat anything on the menu.”

The intimate, 29-seat café is open for breakfast and lunch Monday-through-Thursday, and stays open late Fridays and Saturdays for dinner. They also feature local acoustic musicians on Friday nights and display local art throughout the café, featuring endangered animals.

Davis, who’s been a vegan for five years, grew up on a farm in Oregon and has worked in nearly every role in the food and restaurant business, although this is the first restaurant she’s opened. Her dream is to generate enough profit at the restaurant that she can open a small farm and animal sanctuary.

Meanwhile, she keeps tinkering with vegan and organic servings for her specialty café and bakery. Like the chocolate ganache and the milk recipe for a mocha.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 49

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 9

9

49

46

No. 1 Alpha is sold; Trivial facts/numbers about Valentine’s Day; Lots of money raised for local charities, and pictures of oversized checks!

A vegan cafe; Entertainment listings that include Kinky Boots and beer! This must be Bellingham.

Q&A with local fitness trainer Gene (Geno) Kelly.

This guy can definitely get your butt off the couch.

local business forecast 2019

COOKIES

or CRUMBS?

By Business Pulse Staff At the end of every year, the Whatcom Business Alliance (WBA) surveys companies throughout Bellingham and Whatcom County to learn their business projections for the coming 12 months. Optimistic or pessimistic? Confident or shaky? Good fortune or not?

The survey serves another purpose: giving the WBA insights into how it can facilitate local-business success—its core value and mission. As always, the business-confidence survey results remain anonymous as we extract information industry-by-industry to get a reading on respondents’ outlooks and concerns. It also helps the WBA in planning and programming.

Among the 188 responses, more than one-half were from Bellingham and another 22% each were from other cities or unincorporated Whatcom County. The most responses came (about equally) from professional services, manufacturing, and maritime/fishing. Nearly half do business locally or in the region, about 38% have a national clientele, and 27% are involved in international business.

From the responses, we gleaned this picture: • Business was up in 2018 over 2017—with about one-third

reporting gains of 10% or more, and roughly the same with 5-10% gains. About 28% indicated that business stayed the same, and 12% showed a falloff.

• Projections for 2019 indicated that 88% of respondents either see a jump in their business coming, or at least remaining on an even keel. Just 12% said they expect business to go down.

About 28% said they expect about the same, 30% expect 5-10% growth, and 30% expect even higher than 10% growth.

• Two of the multiple-choice options stood out in the question about major constraints on business growth: one, availability of training; two, taxes and government changes in licensing and regulations.

• Four major concerns ranked about equally—healthcare costs; the general state of the economy; the availability of high-quality employees, and regulatory requirements.

Austin Karaffa hard at work in the Haggen bakery.

All in all, the survey seems to reveal a generally positive message as we embark on the new year, with confidence riding the wave of national and local reports of a healthy economy in terms of the stock market, employment, wages, and consumer spending.

“Most days, Austin arrives home with a flour-dusted apron,a sweaty brow, and a smile as he lists off the jobs that he completed that day.”

Benefits of Hiring People with Developmental Disabilities

By Cheryl Stritzel McCarthy Many local companies and nonprofits hire individuals with a developmental disability. And the benefits are many on both sides—the employer and the employee.

“You get a good employee, that’s the main benefit,” said Matt Carlson, Executive Director of Kulshan Supported Employment (KSE). It is a nonprofit that provides vocational services to adults with developmental disabilities that can include Down Syndrome, autism, cerebral palsy, fetal-alcohol syndrome, childhood brain injury, and more among their candidates for hire. KSE helps their clients find and maintain meaningful employment.

The Whatcom County Health Department estimates about 2,500 individuals in the region with developmental disabilities, though the department has no record of how many of those are seeking employment. Nationally about 85% are unemployed, 54% have Social Security as their only

Michelle Karaffa, Board of Directors, The Arc of Whatcom County, speaking of her autistic son who works in a Haggen bakery

income, and 82% of their families say that economic security is challenged among people with developmental disabilities. (Sources: The Arc of the United States, and Washington State Apple Health) KSE exists to bring together local adults seeking jobs with employers who need workers. “We help our clients by learning their strengths, and matching that to job openings or carved-out positions, which is a portion of a job description,” said Nicole Mathey, Program Manager at KSE. “We do specific job development when we have someone in mind, and talk to people to see if there’s a match.”

Organizations in the community currently employ 116 of KSE’s 125 clients. Those employers include Aramark, Western Washington University dining halls, Bramble Berry, The Opportunity Council, Whatcom Transit Authority, Haggen and others.

Tasks include handling office materials, working on production lines, performing janitorial services, and more. The public, according to KSE and the Health Department, is used to interacting with employees with developmental disabilities in local grocery stores and restaurants.

Michelle Karaffa, a board member of The Arc of Whatcom County, said that many of those employed locally receive support from job coaches who go with the employee, especially initially, and help them become acclimated. Generally, Medicaid funds the support services. “It makes it easier for employers interested in hiring people with developmental disabilities because they know there will be financial support,” Karaffa said.

She has first-hand experience with her son, Austin. “With the backing of KSE, this past summer Austin was hired by the Haggen store on Meridian Street as a member of the bakery department team,” Michelle shared. “For many people with autism, like Austin, employment positions with routine responsibilities are optimal.”

36 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 27

She said that his position has been a perfect blend of consistent job tasks combined with skills he learned in the Bellingham Technical College pastry arts program. “Most days,” Michelle said, “Austin arrives home with a flour-dusted apron, a sweaty brow, and a smile as he lists off the jobs that he completed that day.”

Executive Director Carlson said KSE pre-screens its clients.

“We know our clientele pretty well. We talk to the employer and find out what they want; there’s no wasted time for employers,” he said. “And our clientele are excited to work, and dependable.

They are long-term employees. If we do a good job learning what our client’s interests and abilities are, there are quite a few things they could do. As we figure out what employers need, different industries could open up. A lot of our clients, like anyone, can do different things.”

He offered high praise for the companies and nonprofits that KSE works with. “We have some champion employers in this community,” Carlson said. “They’re not hesitant to hire and place

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 37

26

36

Our comprehensive look at what you can expect for the upcoming year in business—delivered the only way we know how—

by LOCALS.

Advantages abound when you add a member to your team who is willing to work hard and offer a fresh, unique outlook.

anchors our way Cargo ships and jobs return to the docks of Bellingham

photo courtesy port of bellingham

By Dave Brumbaugh

P+

VEGAN FOOD GOES “WILD” AT DOWNTOWN CAFE

What’s the strongest negative force?

Physical training is all up here (he pointed to his temple). A longterm commitment to personal health is all in your head. I spend a lot of time mentally with clients. The body is just a vehicle to move us around.

photo by scott book

Interview by Mike McKenzie Business Pulse invited Gene Kelly to address the oft-doomed New Year’s resolution of losing weight, and—with health-care costs and workplace downtime as major issues—the importance of health and fitness in the workplace. Gene has worked the last 45 years in the physical-fitness training and life-coach industry.

He operates the Adventure Fit Academy locally and heads up the training programs at family-owned Bellingham Fitness. He has set up courses and taught at several colleges and provided certifications as a member of the Board of Education within the National Federation of Physical Trainers (NFPT). At the heart of his work, he says, is a simple message: Get up off that couch and move around outdoors!

No. 1 Alpha Technologies Sells Will Stay Put in Bellingham

B

+ MORE

By Sherri Huleatt

Turn Your Body On and Go!

26 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

FEATURES

PULSE

QA

photo by scott book

DEPARTMENTS

inside

PULSE

your cue to look for additional content online @ businesspulse.com

40 Now that the deal has been struck, Bellingham’s Port is about to see a major jump in ship traffic. Smiles all around!

$2000

COMPLIMENTS

*

GET UP TO

IN INSTANT CREDITS to buy additional appliances when you make a qualifying purchase. *See sales-associate for full details and qualified models.

We Service What We Sell

Local Delivery**

12 Months Financing**

**See sales-associate for details. Financing O.A.C.

LARGEST SELECTION OF APPLIANCES & MATTRESSES IN WHATCOM COUNTY! MERIDIAN SHOWROOM 3944 Meridian St. Bellingham, WA 98226 BURLINGTON STORE 1611 S. Burlington Blvd.

Burlington, WA 98233

360.733.5900 • WWW.DEWAARDANDBODE.COM

publisher’s note

Coming off a record 2018.

What does 2019 have in store for us?

TONY LARSON

Publisher, Business Pulse

I

hope this new year has found you and your family healthy, happy, and optimistic about things to come.

Dating back 30-plus years, the January issue of Business Pulse magazine has been dedicated partly to having experts provide us their best economic forecast for the nation, state, and Whatcom County to give us a sense of how our businesses might be impacted by events we don’t control.

Visit our website, businesspulse.com, to get a wrapup of our Economic Forecast breakfast that took place in November as well, but in this issue we invite you to learn the perspective of Paul Meeks regarding 2019. Meeks can regularly be seen offering his financial and economic insights and prognostications on many of cable’s financial news networks. Since 2012 he has resided in Bellingham where he manages the Wireless Fund (WIREX), and is teaching accounting and finance in the College of Business and Economics at Western Washington University. Starting on page 31, he offers a unique perspective I think you’ll enjoy.

One of the other ways we look to the future is by aggregating the responses from about 15 questions asked of local business leaders. Our annual Whatcom County Business Confidence Survey

reveals how local business did in 2018 vs.

2017 and what their expectations are for 2019 with respect to revenue growth, capital expenditures, hiring, etc. It also asks about possible impediments to growth.

Generally 2018 was reported as a booming year in Whatcom County. For many companies, it was a record year coming off 2017, which was reported as a very good year in comparison to 2016. A summary of the survey results can be found on page 26. You can review the complete results on our website.

In 2019 we should see some very positive results from the efforts of the Port of Bellingham. Not only will we see more activity on the Waterfront redevelopment project, but in late 2018, the Port of Bellingham signed a three-year service contract with Ports America, the largest terminal operator and stevedore company in the United States. The frequency of ships will determine the economic impact, but the opportunities are endless if this deal can open up the working waterfront.

You can read the story on page 40.

We at the Whatcom Business Alliance are excited about the prospects in 2019.

We’ve got a lot on our plate, including a new phase we are entering with our Youth Engagement Initiative. The initiative has been focused on building a bridge

6 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

between young people seeking entry level positions with local companies and those companies interested in finding motivated young people who can be trained and promoted.

First quarter of this year we will launch YES! Whatcom. YES stands for Youth Engagement Services and will include a website that will provide profiles of Whatcom County companies who provide entry level jobs, internships, and apprenticeships with opportunity for growth. Those companies can post their job opportunities which will be promoted to students and their parents from every high school in Whatcom County. Call me if you have questions or you think your company would benefit from being involved.

The Youth Engagement Initiative is one of many projects the WBA is working on and will be sharing at our annual meeting on February 13, at the Four Points by Sheraton. It is a members’ meeting, but if you’d like to learn more about joining the WBA, call me and you can be my personal guest to our annual meeting.

Wishing you a healthy, happy, and prosperous 2019.

Enjoy the issue.

Tony Larson 360.746.0411

Breaking the mold in breaking ground.

When you’ve specialized in construction lending for 100 years, you learn what builders and their clients need throughout the process.

At Washington Federal, we know that your work reflects your experience, commitment to quality and the professional follow-through of your team.

We couldn’t agree more.

With a one time closing for your client, local processing, underwriting & draws, and personalized service from one local originator... isn’t it about time we built something together?

Contact Ian or Grace to start a conversation about your Commercial Lending needs; Acquisition & Development Loans, Spec Construction, Multi-Family financing, and business lines of credit.

Ian Crawford

Grace Peschek

VP/Relationship Manager

VP/Commercial Division Manager

360-756-2641

360-255-2806

ian.crawford@wafd.com

grace.peschek@wafd.com

washingtonfederal.com | NMLSR# 410394

There are, in fact, roads to your happy place.

Though they won’t lead to a destination. At least not in the conventional sense.

Because once you’ve taken hold of a sports car, and there’s no sense of civilization around you, the last thing you’ll want to be slowed down by is a stopping point.

Porsche. There is no substitute.

The 718 Boxster.

Only A Sports Car Takes You There.

Porsche Bellingham 2200 Iowa Street Bellingham, WA 98229 Tel: (360) 734-5230 www.porschebellingham.com European model shown. Some options may not be available in the U.S. ©2018 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.

leading edge NEWSMAKERS • NUMBERS • OUT AND ABOUT ENVIRONMENTAL STEWARDSHIP • PHILANTHROPY • GUEST COLUMNS

No. 1 Alpha Technologies Sells to EnerSys Will Stay Put in Bellingham

By Mike McKenzie

B

usiness Pulse will have a new No. 1 in its 2020 rankings of privately owned Whatcom County companies. The Alpha Technologies group of companies (“Alpha”), which topped the list the last five years, has been purchased by a publicly traded company.

EnerSys of Reading, Pennsylvania, announced plans to acquire Alpha by the end of 2018 for $750 million ($650 million in cash, and $100 million in EnerSys stock or cash, depending on the stock price).

“Lock, stock, and barrel” is how Alpha Co-founder Grace Borsari described the deal. EnerSys said it acquired all issued and outstanding shares and certain assets of select entities within Alpha, including her company, Altair Advanced Industries, which manufactures all components for the Alpha Technologies group. The other Alpha Co-founder and largest stockholder, Fred Kaiser, called the deal “a marriage made in heaven.”

Kaiser and Borsari started Alpha Technologies in 1975, assembling backup power units for cable TV in an apartment in British Columbia. Now, as a global, multifaceted provider of power sources, Alpha will add $600 million in annualized revenue, as EnerSys described in its announcement, by “combining worldclass complementary portfolios, (and) creating the only fully

integrated DC-power solutions provider.”

In a telephone interview, Kaiser explained that his characterization of the deal was because Alpha is staying put in its headquarters across from the entrance road to Bellingham International Airport. “They like our location, and see the potential for growing it even more here,” Kaiser said. “That’s why we picked them. We could have made a deal with bigger companies for more money, but they’d want to break us up, close everything, and move our operations. We’re proud to have built a great brand from scratch, and now people know where Bellingham is.”

Kaiser added, “Another key point is that we’re not walking away…it’s more of a merger than a sale. I’ve been appointed as a director at the highest level. When looking at a transition plan (for retirement) we wanted to do what’s best for the stakeholders, not just ourselves. That meant taking care of employees, customers, and community. This might turn me into a smaller fish in a larger pond, but it’s the same pond.”

In the Business Pulse annual listing of the Top 100 privately held companies later this year, the Alpha Group will remain at the top because the rankings will be based on 2018 revenues. But with EnerSys being publicly traded, a new No. 1 will surface in 2020.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 9

leading edge NEWSMAKERS

People on the Move...

Bruland

Colon

Janelle Bruland, CEO of MSNW, has been awarded the Building Service Contractors Association International (BSCAI) James E. Purcell Leadership Award.

Founded in 1995 by Bruland in Ferndale, MSNW is a one-call source for complete facility services in Washington, Oregon, and Idaho. Bruland also has been named the Nellie Cashman Woman Business Owner of the Year and the Washington State Small Business Person of the Year. She is an author and speaker on business and industry topics, and an active community volunteer. MSNW also has been named to the Fastest Growing Private Companies Lists by Inc. magazine and the Puget Sound Business Journal.

Peoples Bank has announced the appointment of two new executives with strong backgrounds in the Northwest banking industry.

Sergio Colon has joined Peoples as Vice President and Real Estate Loan Manager for King and Snohomish Counties, based at the Everett Financial Center on Colby Avenue. Sergio has more than 10 years of experience in the mortgage business.

Originally from Bellingham, he relocated to Snohomish County in 2010, where he resides with his wife and four children.

Ryan LeCocq is the new Assistant Vice President and Commercial Banking Officer with the Bellingham Commercial Banking Group. Previously Ryan was an Analyst in the Asset Management Division of J.P. Morgan in Seattle. The fourth generation of the LeCocq family to join Peoples Bank, he has a master’s degree from the London School of Economics and bachelor’s degree from Western Washington University, where he earned magna cum laude honors

LeCocq

Ronhaar

and the Finance Graduate of the Year award in 2013.

Bill Ronhaar, President and Chief Underwriting Officer of Whatcom Land Title Company, recently became one of fewer than 100 people nationwide to earn a prestigious designation within his industry.

Ronhaar was named a National Title Professional by the American Land Title Association (ALTA). He also received the Washington Title Professional designation from the Washington Land Title Association (WLTA).

“The NTP designation is bestowed only upon land-title industry professionals who have made an extraordinary commitment to the industry and proved themselves through a rigorous vetting process,” said ALTA President Cynthia Durham Blair.

“Bill’s hard work, extensive experience, and sharp intellect make him an excellent example for the industry, and his designation is well-deserved.”

Ronhaar earned the honors by meeting requirements for industry experience, continuing education, and involvement in the associations. He is a three-time past President of the WLTA and a former Chair of the ALTA Education Committee.

A graduate of Lynden High School, Ronhaar attended Western Washington University before entering the title insurance industry. He joined Whatcom Land Title Company in 2014 after 30 years in management with Land Title and Escrow Company of Skagit and Island Counties.

“Bill Ronhaar justly deserves being placed among the best in our profession,” said Colleen Baldwin, Owner and CEO of Whatcom Land Title Company. “His leadership in improving our company and our industry has made a significant impact.”

10 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

Taylor

Governor Jay Inslee has appointed Teresa Taylor, Lummi Indian Business Council Project Manager for Economic Development, to the Whatcom Community College (WCC) Board of Trustees. Her term runs from October 2018 through September 2023. Her predecessor on the board, Tim Douglas, who served since 2008, recently completed his term as a trustee.

Taylor, a graduate of Whatcom Community College with an associate’s degree in arts and sciences, as well as a certificate in patient navigation, also studied project management, business administration, and accounting at Western Washington University. She is a member of the Ferndale City Council.

WCC Board Chair John Pedlow said, “Having a trustee with Teresa’s broad business and community connections adds depth and diversity to the board.

As a Whatcom graduate, she knows firsthand the value of community collegesand understands the key role we play as educators and job creators.”

Taylor, an enrolled member of the Lummi Nation, has served the community on numerous boards and commissions, including the YWCA, Womencare Shelter, Northwest Women’s Hall of Fame, Ferndale PTSO (Parent/Teacher/Student Organization), Lummi’s Law & Justice Commission, and the Lummi Constitution Committee.

The five trustees are appointed by the governor and serve five-year terms, and/ or until their successors are appointed. The board’s duties include setting the College’s strategic direction, establishing policy, awarding tenure, approving the operating budget, and hiring the College president.

At Alcoa, we believe diversity makes us stronger... www.alcoa.com

u

@AlcoaIntalco

4050 Mountain View Rd., Ferndale, WA

ONE LOAD AT A TIME...73 YEARS AND COUNTING

leading edge NEWSMAKERS

Abel New Owners at Bellewood Acres

From left: Julie, Eric, Raylee, Blake, Janelle and Rowe Abel. Raylee and Rowe Abel are the children of Blake and Janelle Abel.

A family that wants to increase awareness of agriculture and how food gets to our tables recently became the new owners of Whatcom County’s Bellewood Acres.

Eric and Julie Abel, along with their son and daughter-in-law Blake and Janelle Abel, recently acquired Bellewood Acres from Co-founders John and Dorie Belisle.

Bellewood Acres includes 62 acres of apple and pear orchards and a 14,000-squarefoot building containing a store, café, bakery, and distillery. The property is located at 6140 Guide Meridian, halfway between Bellingham and Lynden.

“We admire the legacy of Bellewood in our community and, combined with our love for agriculture, it became an obvious fit for our family,” said Eric Abel, now President of Bellewood Acres. “We also sought an environment where we could grow together as a family and now we have three generations right here on the farm.”

And the three other family members also have key leadership roles. Julie serves as Store and Café Manager. Blake is Vice President, overseeing farm operations and the 21 varieties of apples and six varieties of pears grown in the orchards. And Janelle is the Marketing and Community Relations Director, responsible for promoting in-store sales and sales to other retailers, including Haggen Northwest Fresh, two Community Food Co-op stores

in Bellingham, and seven Metropolitan Market stores in the Greater Seattle area.

Bellewood Acres harvested 1.7 million pounds of apples this year and is visited by more than 50,000 people annually.

The Abel family first heard about Bellewood Acres being for sale a year ago from childhood friends Wes and Diane Herman, Co-founders of the Woods Coffee chain in Northwest Washington and British Columbia. After much consideration, the Abel family reached an agreement with John and Dorie Belisle, who are helping the new team transition into the ownership role.

The Abel family said they don’t plan any immediate changes, but will become more involved with community and agricultural organizations. And the distillery will add hard cider next year to its eight existing types of spirits.

Eric Abel’s background is in marketing and product development, which will come into play as Bellewood Acres reaches out to increase its number of younger customers.

His appreciation for agriculture began as a child in his grandfather’s citrus orchard, which grew oranges and grapefruits. He wants people to share his appreciation of farmland and the food it produces.

“How can we get people interested in where food comes from and how things grow?” Abel asked. “How can we show the importance of foods in relationship to family time and the impact on community? Those are the questions that I want to join others in answering locally.”

Bellewood Acres launched in 1996 when the Belisles and their family began planting apple trees on the former Van Kooten dairy farm at 231 Ten Mile Road.

“By 2000, we began selling apples to our local schools and Haggen,” Dorie Belisle said. “In 2002, we opened our farm to the public and have enjoyed the support of the community ever since. Now it’s time for us to retire to spend more time with our children and grandchildren. We’re proud to leave our farm in such great hands. Please help us welcome the Abel family.”

12 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

Zorganics Adds Retail Store to Its Lineup Locally owned Zorganics Cosmetics, featuring an extensive line of natural, organic products for hair, skin, and body care, has opened a retail store in Bellingham’s Bellis Fair mall.

Zorganics Cosmetics is open daily at the entrance to the mall’s JCPenney wing, near the Abercrombie & Fitch store. Regular Bellis Fair hours are 10 a.m. to 9 p.m.

Monday through Saturday and 11 a.m.–6 p.m. Sundays.

The retail store is the latest expansion of Bellingham-based Zorganics by Frida Emalange, Owner and President of the company. Emalange launched the Zorganics Institute for Beauty and Wellness, a private school for aspiring cosmotologists, estheticians, massage therapists, and nail technicians, at Bellingham’s Bakerview Square in October. She also has operated salons and day spas in Bellingham and Bellevue since 2001. ”We’ve been using and selling Zorganics products in our salons since 2006,” Emalange said. ”They don’t include any additives or parabens and are very safe for men, women, and children. And they’re very concentrated, so not much is needed.”

Zorganics products include cosmetics, hair shampoo, conditioner, spray, gel, mousse, pomades, skin cleansers, scrubs, moisturizers, body washes, massage lotions, and more.

leading edge NEWSMAKERS

Alcoa Foundation Aiding Youth Drug Crisis The Alcoa Foundation is teaming up with The Boys & Girls Clubs of Whatcom County (BGCWC) to help address the health impacts of underage use of tobacco, alcohol, opioids, marijuana, and illegal drugs. This crisis has reached the point of an epidemic nationally and in Whatcom County.

With Alcoa Foundation’s support, BGCWC will run programs called Project Learn and Positive Action at all four club sites in Bellingham, Ferndale, Lynden, and Blaine. These programs involve a multi-dimensional effort designed to educate and empower youth to make good choices, build self-esteem, and commit to avoiding risky behaviors and rejecting illicit drugs.

The programs will focus on fundamental concepts, such as respect, trust, honesty, and communication, helping give participants the confidence to make safe and healthy choices in all aspects of their lives.

Project Learn reinforces the academic enrichment and school engagement of young people during the time they spend at the club. It includes leisure reading, writing activities, discussions with knowledgeable adults, helping others, homework assistance, tutoring, and games that develop young peoples’ cognitive skills.

Positive Action is a systematic educational program that promotes interest in learning and encourages healthy communication, relationships, and life choices. It works by teaching and reinforcing the intuitive philosophy that you feel good about yourself when you behave positively toward others and yourself.

Both of these programs encourage good choices, build self-esteem through adult interactions and guidance, and emphasize the importance of living a healthy lifestyle.

For more information please contact Sara Maloney, 360.738.3808, ext. 304, or Smaloney@whatcomclubs.org.

Brooks Raises Over $30K for Charity Thanks to 100% participation by its employees, the 2019 Brooks Manufacturing annual Charitable Contributions Campaign raised $37,784, including the 100% match by the company.

Since 1995, Brooks and its employees have contributed a total of $483,884 through the Charitable Contributions.

The initiative supports six community non-profits: American Red Cross, Whatcom Hospice, Boys & Girls Clubs of Whatcom County, St. Joseph Medical Center Foundation, Whatcom Family

YMCA, and Catholic Community Services.

“It’s astonishing that year-after-year, Brooks employees give in the manner that they do,” said Shannon Terrell, President of Brooks Manufacturing Co. Brooks Manufacturing has been a member of the business community in Bellingham and Whatcom County since 1915. The company manufactures engineered wood products for the electrical utility industry, featuring their ExtendaLife® End Plated crossarms.

Local Tough Enough to Wear Pink Donates $50,000 to Cancer Center

Tough Enough to Wear Pink Committee members, from left: Carol Brumet, Outreach Program Coordinator, St. Joseph Cancer Center; Tom Lagreid; Annette Hale; Susan Clegg; Committee Chair Tresie Wiersma; Janice Bogaard; Brenda Elenbaas, and Gurpreet Dhillon, Director, St. Joseph Cancer Center.

The Tough Enough to Wear Pink Committee’s $50,000 donation towards patient care at Bellingham’s PeaceHealth St. Joseph Cancer Center is the highest total ever raised in the 11 years of the local campaign.

Tough Enough to Wear Pink is a committee of the Lynden PRCA Rodeo. During the 2018 Northwest Washington Fair, contestants, volunteers, and spectators in the rodeo wore pink shirts in the competition to raise awareness of cancer.

“This amazing $50,000 donation was possible only because of generous

contributions from many sponsors, countless individuals, proceeds from our annual dinner auction, and hundreds of volunteer hours from our committee,” said Committee Chair Tresie Wiersma.

All of the proceeds go toward helping any type of cancer patient at PeaceHealth St. Joseph Cancer Center. Since its inception in 2004, the national Tough Enough to Wear Pink effort has raised more than $26 million for breast cancer research and patient care.

For more information, visit toughenough towearpink.com.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 13

leading edge NUMBERS

Can’t buy me love...?

...Well, we sure do try.

1,400

Varieties of Valentine greeting cards produced

by Hallmark annually, among approximately 144 million cards exchanged. Card exchanges are down 16% in the last 10 years.

(Source: Hallmark Inc. and Greeting Cards Association)

18.2

Billions of dollars spent at an average of $143.56 a person on Valentine’s Day gifts and outings in 2018, down from $19.7 billion the year before.

(Source: National Retailers Federation)

43

Age in 269 AD that Saint Valentine of Rome was executed in prison after writing a farewell note to his jailor’s daughter signed, “Your Valentine.”

(Roman legend)

5.50

153

Dollars spent on average by people purchasing Valentine’s gifts for their dogs.

Years since NECCO created the Valentine conversation heart candies. In May 2018 Spangler bought NECCO (New England Confectionary Company) in Federal bankruptcy court.

(Source: National Retailers Federation)

(Source: CNN)

14 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

Mike Morse, Morse Steel 4th generation owner Cyclist Sports dad

Each and every one of us is an original. Shaped by unique influences which make us who we are today. Here at Heritage Bank, we think differences can build a better bank, too. That’s why we share the best ideas from across all of our branches and local communities with one goal in mind: to serve our customers better every day. By sharing our strengths, we’re able to offer customers like Mike Morse—and you—more than a community bank. Rather, a community oƒ banks.

W H AT ’ S Y O U R H E R I TA G E ?

HeritageBankNW.com | 800.455.6126 | Member FDIC

leading edge OUT AND ABOUT 1

2

FOR HER FOR HIM

3

+

4

5

6

7

Alberto, 34 Heritage, Maceoo, Luciano Visconti, Carl Gross, Good Man Brand, Raffi and AG Jeans Bailey 44, 3 Dots, Vince, Kinross, Nicole Miller, Ecru, Bella Dahl, Donald Pliner Shoes

Mention this ad to receive 25% off one full-price item* *Valid January 1–February 28, 2019

QUINN + FOSTER

128 West Holly Street 360.671.2000 quinnandfoster.com

‘Light the Night at the Grand Ole Opry’ Auction Generates $454,000 for Whatcom Hospice Over 370 guests attended the sold-out auction, which was organized by Whatcom Hospice Foundation. Proceeds from the event enable Whatcom Hospice to offer services to patients and families above and beyond those that are reimbursed by Medicare and other insurers. 1. 2018 Auction Co-Chairs Tammy Yorkston (right), Yorkston Oil Company and Lesa Boxx, Country Financial.

2. The popular dessert dash sponsored by First Federal Bank raised $35,500. 3. A table of Whatcom Hospice caregivers enjoys the evening, courtesy of Presenting Sponsor Birch Equipment Rental & Sales. 4. Chad Nickisch, representing auction Video Sponsor Peoples Bank. 5. Troy and Sarah Wills, representing auction Dessert Dash Sponsor First Federal Bank with bank guest and longtime Hospice supporter Lynn Giuliani. 6. Live Auction Co-Chairs Erin Baumgart (second from right), Icy Strait Seafoods, and Bunny Iovan (far right) with guests Bridget Larsen and Peggy Cassidy. 7. Auction Co-Chair Lesa Boxx (fourth from left), Country Financial, enjoys time with her table guests.

16 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

DON’T GET CAUGHT OUT IN THE COLD! COME TO HARDWARE SALES FOR ALL YOUR WINTER NEEDS

2034 JAMES ST BELLINGHAM EXIT 254 360.734.6140

    

ICE AND SNOW MELT WOOD PELLETS -20 DEGREE WASHER FLUID OUTDOOR APPAREL WEARABLE ICE-TRACTION DEVICES

     

LED FLASHLIGHTS SAND LOCK DE-ICER PIPE INSULATION HEATERS AND MUCH MORE!

HARDWARESALES.NET

RENTAL DIVISION 2012 KING ST 360.734.6141 INDUSTRIAL DIVISION 2012 KING ST 360.734.4039

SERVICE SPECIALS! ARE YOU STORM READY? Be Sure Your Generator is In good shape before you need it.

Winterize your Lawn Equipment now So it’s ready for the Spring!

HONDA GENERATOR TUNE-UP

LAWN EQUIPMENT

$69.99

Plus Parts

PRICES GOOD THROUGH 1/31/19 AT OUR SERVICE CENTER, 2100 JAMES ST

WINTER SERVICE

$69.99

Plus Parts

PRICES GOOD THROUGH 1/31/19 AT OUR SERVICE CENTER, 2100 JAMES ST

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 17

leading edge MARKETING

How Facebook’s Changing Algorithm Impacts Your Business (and What to Do About It)

I

SHERRI HULEATT

n January 2018, Facebook released its new “meaningful interactions” algorithm to highlight more content from family and friends and less content from brands. While this might be a welcome change for the everyday social-media consumer, it’s anything but welcome for businesses scrambling to break through the social-media clutter.

According to a 2018 study by Buffer and Buzzsumo, which analyzed 43 million Facebook posts, overall Facebook page engagement dropped 50% in 18 months during 2017 to 2018; the average engagement per post also was down by a whopping 65%.

Shawn Kemp offers insights into this trend as CEO of ActionSprout, a Bellingham-based social-media software company (with locations also in Seattle and Portland) that Facebook refers to for nonprofit insights and data. Kemp said that most Facebook users have the possibility of seeing as many as 1,500 News Feed stories a day, but the average user spends only enough time on the site to actually see about 250. Because of this, he said, Facebook constantly updates its algorithm so users are more likely to see the content they want.

So what can your business do to remain relevant in the face of Facebook’s constantly evolving algorithm? Before addressing that, a quick refresher on how the algorithm works: Facebook ranks your content in the News Feed based on average time spent interacting with a post, when it’s posted, the story type, the completeness of your page’s profile, and how informative the post is. In other words, the more engaging and relevant your post is, the more likely people will see it.

Facebook also now prioritizes “active interactions”—such as

commenting and sharing—rather than “passive interactions,” such as liking and clicking a post. Even something as small as someone “loving” your post rather than “liking” it can earn you bonus points.

According to Kemp, posting more engaging stories frequently can make a major impact on reaching your audience. “You need to post at least once a day in order to send enough signals to Facebook, so they know who to show your posts to,” Kemp said.

If you’re struggling with content creation, he suggested sharing existing articles, images, and videos. Content-curation tools, like Feedly, Scoop.It, and Buzzsumo can save you a considerable amount of time, Kemp said.

Facebook Groups also rank high in the News Feed and can be managed by Pages. Kemp recommended that you post at least twice a week to your Group and always reply to members’ comments to gain increased engagement.

Going forward, Facebook will continue to prioritize content from family and friends. “Focus on giving people a reason to share your stories,” Kemp said. “Make it about your supporters so they look good when they share it.”

More than anything, he said, post relevant, quality content that your audience wants to engage with—not just what you want to share. For example, treating Facebook as only a repository for your latest products, sales, and events most likely won’t garner the quality engagement you’re looking for. Instead, ask questions, share behind-the-scenes videos, and post entertaining quotes, photos, and/or GIFs that elicit an emotional response (i.e., mix up your content so it’s not just about you, it’s about your customer).

18 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

5

Tips to Improve Your Facebook Strategy

Ask questions: The modern-day consumer isn’t shy with opinions (surprise, surprise). That’s why asking questions not only engages your customers, questions rack up comments, which is highly favored by Facebook’s algorithm. Ask what people are reading (relevant to your industry), do a product mashup and ask your followers to vote for their favorite, or post a photo and ask people to caption it.

The bottom line: Don’t be afraid to have fun.

1

Make it visual: Kissmetrics, a marketing automation company, says Facebook posts with photos get 53% more likes, 104% more comments, and 84% more click-throughs than text-based posts. Don’t have a graphic designer or photographer? No problem. Use free tools like Canva—which comes with hundreds of free design templates, icons, and stock photos—to create professional-looking graphics, without the price tag.

2 3 4

Share videos: Facebook says that live videos get six times as many interactions as regular videos and lead to more discussions among followers.

Use Facebook Live to show behindthe-scenes clips, team interviews, new-product reveals, and more.

Advertise: Shawn Kemp at Action Sprout said, “Five dollars on a highly engaging story goes a long way.”

Advertising extends reach to your audience. Get the most bang for your buck by testing ads to discover what’s most effective. He recommended AdEspresso as one of the best tools, which easily tests up to 100 ad variations at a time so you can see which combination of copy, visuals, audience, and platform get the most conversions.

Reply to comments: This is good customer service, and it also signals to Facebook that your content is creating real discourse—winning you bonus points with the new algorithm. What if someone leaves a rude comment? Put your most friendly foot forward and respond with patience and empathy— apologize, offer a solution, and ask if you can take the conversation offline (or in a more private forum, like a direct message).

5

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 19

leading edge PHILANTHROPY

Homeless Find Warmth at ‘Hearts to Soles’

I

DAVE BRUMBAUGH

t was beginning to feel cold and wet outside early last November—and that’s if you had warm socks and waterproof shoes. Many local folks didn’t.

Barbara Lupo coordinated an event, Hearts to Soles, to deal with almost 600 people who had little or nothing to cover their feet.

For the 11th consecutive year, on November 11 an eclectic collaboration of businesses, nonprofit organizations, and 70 volunteers provided foot health assistance, footwear, other winter apparel, personal-care packets, backpacks, and a heavy dose of compassion.

“The purpose of the one-day clinic is to provide foot care, new socks, and weatherproof boots to folks in our community who were at high risk for spending most of their time outside,” Lupo said. “We get the opportunity to do medical care to treat needed issues, and provide a proper fitting for new boots.”

The first Bellingham event was spearheaded by Jeff Gray of Superfeet, Dr. Warren Tarranow of PeaceHealth Orthopedics, and

volunteer Angela Gum. Four organizations took the lead for this year’s event: Superfeet, PeaceHealth St. Joseph Medical Center, Cornerstone Prosthetics, and Lighthouse Mission Ministries.

And they had plenty of help.

Red Wing Shoes and Bogs Footwear donated boots. Nester Hosiery gave 500 pair of socks. The staff of Bellingham Foot and Ankle Clinic volunteered. Sanitary Service Co. provided sanicans and waste-disposal containers. Superfeet provided its quality insoles for each of 564 individuals.

“The clients received foot-hygiene kits along with personal-hygiene kits, coffee, juice, fruit, sandwiches, and the chance to receive a flu shot,” Lupo said. “It’s the hope of the clinic that we can mitigate unnecessary emergency-room visits caused by damp feet.”

In addition to the day-long clinic at Depot Market Square downtown, the organizers provided a separate clinic during the

20 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

afternoon for residents of Agape House in Bellingham, a program of the Lighthouse Mission Ministries. Sponsored by Superfeet and PeaceHealth Pediatrics, mothers and their children at Agape House received all the same services, along with coats, hats, gloves, pajamas, backpacks, and personal-hygiene kits.

Superfeet experts measured each recipient in both clinics for new-boot fittings.

All giveaway items came from employees of PeaceHealth St. Joseph Medical Center’s pediatric clinic through a giving tree. Friends of Hearts to Soles supplied food and snacks.

Lupo, a former downtown business owner, said each year the need for these cold-weather contributions has increased.

The number of people served in 2018 rose by 154 over the year before; the underwriting cost is shared among Superfeet, PeaceHealth, and generous volunteers.

“As a 100-percent, employee-owned company, we’re deeply committed to bringing out the best in our community,” said Gray, Superfeet’s Director of Outreach and Fit. “We believe that everyone deserves to live a pain-free and more comfortable life. By partnering with Hearts to Soles, we further our commitment to build strong foundations that positively impact the world around us.”

Hans Erschinger-Davis, Executive Director of Lighthouse Mission Ministries, said that the donated items and services are crucial to the well-being of many homeless or sheltered persons who otherwise would incur health problems associated with winter weather. “Foot-care is one of the most major issues facing the homeless of our area,” Erschinger-Davis said.

Above: Jeff Gray, Director of Outreach & Fit at Superfeet, fits a guest with footwear while Dr. Warren Taranow (background) shows a boot to another guest. Previous page: Superfeet’s volunteer team for ‘Hearts to Soles.’

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 21

leading edge GUEST COLUMN | ENVIRONMENT

Free Market Environmentalism

The Key to Saving Energy and Money? Consumers–Not Politicians...

TODD MYERS

W

ith the 2018 ballots tallied, Washington’s environmental activist community wants to call it a tie. Despite spending more than $15 million in support of Initiative 1631, which would have imposed a carbon tax, that initiative failed badly; it received about 43 percent of the votes, failing in 36 of 39 counties.

On the other hand, Democrats increased their margin in the legislature, giving environmental activists hope that what failed at the ballot box might pass when lobbyists have their say in Olympia.

Many Washington residents are willing to consider policies that reduce carbon dioxide (CO2) emissions, but are wary of increased taxes and don’t trust politicians to spend money wisely. The environmental community already has indicated it did not learn that lesson. By way of contrast, there’s an opportunity to engage voters who rejected 1631 by offering practical tools that reduce CO2 emissions inexpensively and effectively.

The key feature of the environmental community’s legislative agenda is to require that 100 percent of Washington’s electricity becomes renewable energy by 2040. More than 80 percent of Washington’s

energy generation now emits little or no CO2. Wind turbines are a relatively small portion of that amount, accounting for about seven percent of Washington’s low-CO2-emitting energy. Nuclear power is next at about eight percent. Hydro is the major power source, accounting for about 70 percent of our energy.

Despite praise for solar power from environmental activists, solar accounts for less than one-tenth of one percent of our electricity generation (Source: State of Washington Department of Commerce), because it is expensive and Washington is one of the worst places in the United States for collecting solar energy (Source: National Renewable Energy Laboratory).

Rather than simply replacing the small amount of Washington’s natural gas and coal energy with renewables, the environmental community likely will try to replace some of the reliable hydro and nuclear power with intermittent renewables like wind. If the goal is to reduce CO2 emissions quickly and effectively, this approach is nonsensical.

Wind and solar are still expensive, and replacing predictable

22 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

low-CO2 energy with intermittent low-CO2 energy would be paying more to get less.

Instead of political mandates, all utilities and energy consumers should be given more control over their own electric bills. Existing electricity-rate structures are based on the decades-old assumption that residential consumers have no ability to react to daily fluctuations in electricity costs. Residential users don’t see the high costs in the middle of the day when electricity use increases and prices climb.

Utilities companies end up passing on those higher costs in the form of higher rates for all parts of the day. If public utilities could provide a way to conserve in the middle of the day, residential customers could save money.

The technology now exists to do exactly that. Nest thermostats created a voluntary system called “Rush Hour Rewards” that allows local utilities to provide rebates to consumers who allow Nest to automatically adjust home temperature when midday rates climb. Consumers save money and utilities increase energy conservation.

This consumer-driven approach is more likely to be successful and at lower cost than politically dictated mandates which, like Initiative 1631, too often are focused on appeasing special interests. It can also appeal to people across the political spectrum, rewarding users with both environmental and financial benefits.

Governor Jay Inslee was elected six years ago and promised to take action on climate change. During that time, his record is extremely poor, even failing to meet the CO2-reduction goals he set for himself. If the governor, legislative leaders, and the environmental community continue to choose dogmatism over environmental effectiveness, that string of failures will continue, increasing costs on Washington residents while failing to help the environment.

The better approach is to engage consumers with positive incentives to save and technology that empowers conservation. Trying to impose pain on Washington residents has failed. It is time to engage and empower them with technology and incentives. P+

www.whatcomenvironmental.com 228 E. Champion St. #101 | Bellingham, WA 98225 | 360.752.9571

Todd Myers serves as Director of the Center for the Environment at Washington Policy Center in Olympia. He is recognized as one of the nation’s leading experts on free-market environmental policy, and author of “Eco-Fads: How the Rise of Trendy Environmentalism Is Harming the Environment.”

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 23

photo Jayson Korthuis for Whatcom Family Farmers

leading edge GUEST COLUMN | AGRICULTURE

Pollution-Control Ruling On Dairy Farm Permits a Big Deal?

Farmers Say a Resounding, ‘Yes!’ RICH APPEL “

V

Appel Farms Cheese/Vice-President Whatcom Family Farmers

indication” is the word local farmers typically use to describe the Pollution Control Hearings Board ruling last October on the Department of Ecology permit that affects dairy farms. Dairy operators say that the ruling gives credibility to their claims of strong environmental performance.

In Whatcom County, and extending now to Seattle, a debate has been taking place between farm advocates and environmental activists about dairy farms and their effects on the environment.

Dairy critics claim dairy farms are some of the largest sources of pollution, fouling the water, harming fish, causing shellfish bed closures, and making people sick, or even causing the death of infants.

Their solution to these serious problems has been to file lawsuits and pressure the Department of Ecology into imposing massive new regulations on dairy farms.

Dairy farmers, for their part, recognize that dairies have the potential to cause water-quality problems and, indeed, in the past they have been a significant cause of harm to fish and shellfish. But many laws and regulations have changed that over the last couple of decades, particularly since passage of the 1998 Dairy Nutrient Management Act. Moreover, farmer stewardship has contributed to protecting the environment better, and even improving it. One strong indication is the reduced nitrate levels in wells nearest dairy farms. Other recent studies also provide proof of improvements.

When you have a he-said, she-said situation, who is to be believed?

Farmers have a lot at stake. Many would say their very existence is on the line. Environmental activists also have much at stake because their credibility and their ability to secure donations essential to their future is affected by these claims.

For two weeks during late Spring of last year, the Pollution Control Hearings Board heard arguments from both sides on the hotly contested Concentrated Animal Feeding Operation (CAFO). The Hearings Board consists of three lawyers, including one who specializes in environmental law, all appointed by Governor Jay Inslee. One

of those specializes in environmental law.

Their job was to hear appeals filed by the environmental groups and the dairy community (working through the state Dairy Federation).

This CAFO permit is the tool the state uses to enforce water-quality laws and specifies what animal-farming operations must do and not do to protect water. The environmental groups said the permit issued by Ecology in 2017 didn’t go nearly far enough to protect water and therefore violated the law. The dairy community said Ecology went too far, particularly on how it changed the way manure lagoons were measured.

After more than four months of deliberation, the Board supported the dairy community’s position on the error Ecology made in how lagoons are measured. Ecology was “remanded” by law to change the permit to comply with national lagoon standards.

The big news for farmers was that each and every one of the arguments made by the environmental groups was fully and completely rejected. This applies to lagoons, to surface water monitoring, to groundwater monitoring, and a number of other claims.

How have the environmental groups responded? One—Jean Mendoza from Friends of Toppenish Creek in Yakima—commented that the Board was “uninformed.” Puget Soundkeeper Alliance said the board “made errors.”

But we farmers ask simply this: If their top advocate, an environmental attorney from Oregon known for suing dairy farms, couldn’t convince three lawyers on the board appointed by Governor Inslee— and one of those a fellow Oregon-educated environmental lawyer— why do they think they can convince anyone else? Whatcom farmers note with deep appreciation the decision of Bellingham-based RE Sources to withdraw from continuing this appeal.

The claims of pollution caused by dairy farms probably won’t go away, which means the work of setting the record straight also must go on. But we farmers do feel vindicated by this important but little-known ruling. And we believe our job of convincing the unconvinced will be much easier as a result.

24 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 25

local business forecast 2019

COOKIES

26 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

or CRUMBS?

By Business Pulse Staff At the end of every year, the Whatcom Business Alliance (WBA) surveys companies throughout Bellingham and Whatcom County to learn their business projections for the coming 12 months. Optimistic or pessimistic? Confident or shaky? Good fortune—or not?

The survey serves another purpose: giving the WBA insights into how it can facilitate local-business success—its core value and mission. As always, the business-confidence survey results remain anonymous as we extract information industry-by-industry to get a reading on respondents’ outlooks and concerns. It also helps the WBA in planning and programming.

Among the 188 responses, more than one-half were from Bellingham and another 22% each were from other cities or unincorporated Whatcom County. The most responses came (about equally) from professional services, manufacturing, and maritime/fishing. Nearly half do business locally or in the region, about 38% have a national clientele, and 27% are involved in international business.

From the responses, we gleaned this picture: • Business was up in 2018 over 2017—with about one-third

reporting gains of 10% or more, and roughly the same with 5-10% gains. About 28% indicated that business stayed the same, and 12% showed a falloff.

• Projections for 2019 indicated that 88% of respondents either see a jump in their business coming, or at least remaining on an even keel. Just 12% said they expect business to go down.

About 28% said they expect about the same, 30% expect 5-10% growth, and 30% expect even higher than 10% growth.

• Two of the multiple-choice options stood out in the question about major constraints on business growth: one, availability of training; two, taxes and government changes in licensing and regulations.

• Four major concerns ranked about equally—healthcare costs; the general state of the economy; the availability of high-quality employees, and regulatory requirements.

All in all, the survey seems to reveal a generally positive message as we embark on the new year, with confidence riding the wave of national and local reports of a healthy economy in terms of employment, wages, and consumer spending. P+

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 27

Worldwide Whatcom

Exports Face New Year Realities—Tariffs and USMCA Bring Mixed Reviews

By Mary Louise Van Dyke hanges have occurred rapidly for Whatcom County businesses that deal in exports, with the advent of the U.S. Mexico Canada Agreement, or USMCA, and alterations to tariffs with U.S. trading partners. The USMCA supercedes NAFTA—the North American Free Trade Agreement—that’s been in place the last 25 years but now is departing the international scene, leaving questions about the future of our local exports in its wake.

Through our annual business-confidence survey and individual interviews, Business Pulse reached out to several local companies to see how they view the changes in what we’re dubbing the Worldwide Whatcom Business Outlook for 2019. ____________

C

Marty VanDriel, CEO of Ferndale-based TriVan Truck Body, expects both USMCA and the tariff changes to have significant impacts on its business, whether through an increase in orders for its custom-designed products, the cost of component materials, or the sale price to the customer. On a positive note, VanDriel said, “The biggest thing for our local businesses is that our ability to compete with Canada might be a little better.”

TriVan manufactures specialized truck bodies and trailers. About 10 percent of its business is exports to Canada and to developing countries. As an example, TriVan creates mobile meat-processing units for farms and ranches in remote areas of Central America and South America and South Africa. “They’re designed for underdeveloped countries,” VanDriel said. “Most of these sites lie in remote areas that lack the infrastructure needed to process meat.” One of the most recent mobile meat-processing trailers was sent to the tiny island of Tinian in the Northern Marianas in the Philippine Sea. And they’ve made some for South African nations, as well.

Sounding a note of caution, Van Driel pointed out that a Canadian competitor based in Lower British Columbia recently went out of business, due to the impacts of paying double tariffs on importing component materials and then exporting the finished products.

TriVan is paying higher prices for some electronics, such as LED lights, and those increased costs are passed along to the

customer. “I don’t have huge concerns, though,” VanDriel said.

“We’re a custom builder and we build to order. Ultimately this will affect our sale prices the most.” ____________ Gear Aid, an outdoor-gear manufacturer based in Bellingham, is in the final year of its transition since purchasing and rebranding McNett, the long-time family company, according to Marketing Manager Cheriss Faiola. The company’s goal, she said, is to get people to engage in and enjoy outdoor pursuits, such as hunting, swimming, fishing, camping and hiking.

Gear Aid creates and distributes a plethora of products internationally, such as reflective items for runners, tent-repair kits, and wetsuit sealants that serve as useful aids for outdoor enthusiasts. Gear Aid has numerous new products in launch mode, including the Kotu Tanto survival knife they introduced last year. Consumers find Gear Aid brands in big-box retailers like REI and sporting goods stores.

“We’re really excited to launch products fully designed in-house,” Faiola said. About 15% of Gear Aid’s sales extend globally (excluding Europe, which is managed out of the company’s European headquarters in Germany). Gear Aid supplies dealers in Central America, South America, Canada, Japan, Thailand, and several other countries.

Regarding tariffs, the company is experiencing increased prices on purchases of cordage, sewn goods, and aluminum. Clark Campbell, President of Gear Aid, indicated that only a small portion of products that Gear Aid sells are imported from China.

“Like other companies in our industry, we rely on a globally integrated supply chain,” Campbell said. “We are hopeful that the current trade dispute between the U.S. and China will be resolved quickly, and that the U.S. government does not make the mistake of either expanding the categories or further increasing the tariff rates. Either of these moves would be strongly negative to Gear Aid’s business and to the outdoor industry as whole.” ____________ Darigold, based in Washington and with a plant in Lynden, is a dairy industry giant globally. And, with expansion and positive

28 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

“We are hopeful that the current trade dispute between the U.S. and China will be resolved quickly...”

—Clark Campbell, President, Gear Aid— photo by scott book

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 29

“The biggest thing for our local businesses is that our ability to compete with Canada might be a little better.” photo by scott book

—Marty VanDriel, CEO, TriVan Truck Body—

projections for the international market in 2019, Darigold is watching the national talk of tariffs and the trade situation with China very closely, according to Sarah Taydas, Director of Corporate Communications at the headquarters in Seattle.

Darigold is a cooperative subsidiary of the Northwest Dairy Association (NDA) with about 465 dairy farm members, producing a full line of dairy products for retail, food service, commodity, and specialty markets. The co-op markets its members’ dairy products out of 11 production plants, including the one that’s been located in Lynden for the last 100 years.

The Lynden plant opened only a year after Darigold was founded in 1918. About 60 employees work in Lynden where they process milk from co-op member farms in Whatcom and Skagit counties, producing primarily nonfat dry milk, skim milk powder, and bulk cream. The plant processes about 3.2 million pounds of milk daily—a large drop in the huge bucket of the cooperative’s total output of about 10 billion pounds a year.

Darigold ships more than 40% of all of its farm milk production to the international marketplace. And, about 80% of its exported product is bound for Japan, China, Southeast Asia, and their No. 1 foreign market, Mexico.

Taydas indicated in an email interview that Darigold plans to double down on its global operations and long-term commitment to growth in international markets. The company is creating an overseas sales, service, and distribution network, she

reported. Darigold has opened offices in Mexico City, Singapore, and Shanghai, and expects to expand to more countries soon.

The company projects it will grow from serving about 20 countries currently to serve 40 or more countries in the near future.

“It is a volatile and uncertain environment where we will be managing our risks,” Taydas said. (Read specifics about milk, cheese and more in the Darigold outlook for 2019 at business pulse.com).

One anticipated positive change, Taydas said, is the 2018 U.S. Mexico Canada trade agreement that displaced NAFTA (the North American Free Trade Agreement). “The trade agreement provides Darigold with some new access to the Canadian market and preserves and enhances the Mexico trade relationship with duty-free access,” Taydas said.

Tariffs, in the short term, have reduced some product demands from Mexico and China, like cheese and dry whey. “But if these U.S. tariffs result in new trade deals with greater access abroad, or create a level playing field, it would benefit Darigold in the long run,” Taydas said. ____________ While the companies that Business Pulse contacted expressed no pessimism for the coming year, they definitely have braced themselves to contend with the full effects of the recent changes in tariffs and international-trade agreements that continue to dominate the news.

30 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

SLOWDOWN

but not a

DOWNTURN

TV BUSINESS NETWORKS RELY ON INSIGHTS FROM TECH FUND GURU AND BUSINESS PROFESSOR PAUL MEEKS, SO WE WENT TO HIM, TOO. HERE’S YOUR LOOK THROUGH A WINDOW INTO HIS 2019 ECONOMY PROJECTIONS, AND HE SHOWS YOU FLASHING CAUTION LIGHTS LIKE TAX-BLOWBACK AND INTEREST-RATE

By Mike McKenzie REPERCUSSIONS. ‘ROBBING PETER IN ’19 TO PAY PAUL IN ’18….’

Photo and graphs by Scott Book

P

aul Meeks, a chartered financial advisor (CFA), manages a portfolio for a wireless communications fund (WIREX) and separately managed accounts for the fund Independent Solutions Wealth Management. The question put to him on a recent day in Fairhaven—where he works from home (when he isn’t in the classroom at Western Washington University as an instructor of accounting and finance in the College of Business and Economics)—was whether the economy, both nationally and locally, will continue to be strong jn 2019?

Yes, he said. Sort of. But also, no. Sort of.

Translation: The overall economy will continue to look good and healthy, though it won’t keep growing at the same pace, if at all.

Many economic indicators in 2018 from the key areas of unemployment, wage earnings, job creation, retail sales,

CNNfn, PBS, and Fox Business News; he appears from a set at the WWU Digital Media Center. Also, Paul has spoken to audiences as large as 2,000 in business forums, and in 2017 he made a TED Talk at WWU titled “Debunking Stock Investment Myths” (archived on YouTube).

Our topics ranged far and wide, beginning with the tech-effect of Seattle.

“In the Seattle metro area, the dollar-for-dollar share of the economy is huge because of the two Goliaths—Amazon and Microsoft,” Meeks said. “And other significant tech players—like Apple, Facebook, Netflix, Google—are bringing lots of employees there from California and creating Silicon Valley Northwest. We could benefit from it.”

Paul also noted the pending whopper of a merger between T-Mobile and Sprint. “T-Mobile has announced plans to spend $160 million to expand and rehab their facilities in

“The only thing that could cause a recession again is something that is not predictable right now—some geopolitical thing we can’t fathom.”

—Paul Meeks— and the stock markets, painted a rosy, even robust picture of the nation’s economy heading into this year. Brace yourself: Meeks foresees a slowdown. But nothing remotely close to the recession tailspin of 2008. Join us in a conversation to find out why….

Paul invited me to meet up at a nearby Fivebucks. Over a latte and a London fog, we talked about the ins and outs of the economy, both big picture and the Whatcom window.

Just hours before our meeting, I watched him on business network CNBC’s “Squawk Alley” in a discussion about tech-market investments.

A few days later, Paul reappeared there again, and then again a few days after that. He’s been making national TV appearances for many years as he has practiced his trade in several states before coming to Bellingham in 2012 (with Saturna Capital before going on his own). Others inviting his expertise include Bloomberg TV and radio, CNN and

Bellevue. To bring a major telecom to this neighborhood is a huge kick-starter.”

Meeks’s latest entrepreneurial venture, the Wireless Fund (WIREX), based in San Diego, specializes in tech stocks.

Managed assets currently are valued at $5 million. When that doubles, he becomes a 50% owner. Eventually he plans to take it over completely. “I’m excited about seeing it succeed and then running it from Bellingham,” he said.

“The beauty of it is that, in this Internet world, I’ll never have to go to San Diego unless I want to. All of these tech companies are out of New York and just platforms and commoditized entities, regardless of who you are. Merrill Lynch, Morgan Stanley, same thing. Anything you hear about a ‘secret sauce’ is just b-s.”

Paul then turned to the big picture of business confidence and projections for this year, including in Whatcom County.

“One thing to realize about the economy where we live is

32 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

HISTORY OF THE FEDERAL FUNDS RATE 22.00% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00%

1960

1970

1980

1990

2000

2010

The Federal Reserve lowers this rate to boost the economy or raises the rate to slow it. This 62-year chart shows it at 2.2% and increasing since mid-2017. It was lowered to essentially nil in late 2008 to help us out of the Great Recession. Rates remained there for years. Now that they’ve begun to reverse, monetary policy has turned to a modest (but not strong) headwind.

that it’s driven by small-to-mid-sized industrial companies.

Metal benders. That, and academia,” he said.

Economists divide their analyses into 11 economic sectors. “Around here, we’re kind of focusing on two sectors— industrials and academia,” Meeks said. “You have to be careful extrapolating. We’re not a good indicator of what’s going on nationally.”

Paul identified the biggest factor in economic projections this year as the Federal Reserve and interest rates. “Over the last seven years, we’ve enjoyed very low interest rates,” he said. “Now that we’ve recovered from the recession of ‘08, interest rates are rising. Low rates give the economy a boost, but now that we’re far enough away from the financial crisis, we’re going from a tailwind to a headwind. We call that monetary policy, and it’s controlled by the Fed bank. That signals caution for 2019.”

Another major factor affecting the coming year is the impact of tax codes. Paul said to always keep in mind that politicians in Congress and the President control fiscal policy. “The tax code changed around Christmas of ’17, and the big benefits of that were felt in ’18. In ’19, it has to slow because the big-growth vehicles have either exhausted

themselves or gone away.

“It’s not another recession,” he said, “but economic growth will slow down. Rather than the 3-4% growth of last year’s economy, it now will become about half that.”

Cautious optimism is a favorite term used by many business leaders when addressing their outlook on any given new year. Meeks was no different: “I feel cautiously optimistic this year. That is, I’m not depressed about the outlook, but it’ll be a slowdown. Instead of going 12-0, we’ll go 9-3.”

[He also used a football analogy on one of his CNBC guest appearances in December, a hint of his past. Meeks played football and lacrosse at Williams College in Massachusetts.]

Our conversation then navigated toward the more narrow view of Whatcom County, and how Paul’s tech-world view plays into it. “The county has to do better job of diversifying away from academia,” he asserted, ironically, for one who’s taught courses at the College of Charleston and The Citadel when he was working in South Carolina and now teaches at WWU. He’s referring, of course, to WWU, Whatcom Community College, and Bellingham Technical College, which represent a predominant sector of county employment.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 33

REAL GDP: PERCENT CHANGE FROM PRECEDING QUARTER 5 4 3 2 1 0

Q4

2014

Q1

Q2

Q3

2015

Q4

Q1

Q2

Q3

Q4

2016

Q1

Q2

Q3

Q4

2017

Q1

Q2

Q3

2018

This quarterly measurement shows how the U.S. economy has ticked up in 2018 from its pace coming out of the Great Recession.

The tech sector drives the economy in both Vancouver, B.C., and Seattle, Paul pointed out. “And we have a great opportunity to capture some market share, because both of those cities are very expensive to live in. Somebody else is going to become an exciting tech community along the I-5 corridor, so why can’t it be us and not Mount Vernon, or Anacortes, or Everett? We definitely have a chance for greater growth as techies travel north or south to us. Hey, give me 100 engineers and bring them to Bellingham, where they can enjoy a nice life and an easy commute.”

Any evaluation of the local economy inevitably draws attention to cross-border considerations. Paul pointed to currency fluctuation as a prime influencer. “Since we’re the largest and most important location on the U.S. side of the border, currency rates are very important,” he said. “When Canadians come across the border, we want their dollar strong. When it is, that’s another headwind for Canadians, especially if they’re buying all our stuff on the weekends at Costco and on the Guide Meridian.”

But there’s a catch-22. What was good for ’18 is not so good for ’19. The Tax Cuts & Jobs Act (TCJA)—enacted by President Trump as of Jan. 1, 2018—provided a boost for the U.S. dollar but “has maxed out, and, with interest rates rising, what were positives now are negatives….a short-term boost to the economy that won’t be repeated in out years,” Paul said.

“In one fell swoop, the corporate income tax rate went from 35% to 21%. Similarly, individuals benefited from new thresholds and brackets for personal income taxes. These tax savings from previous years will be realized when folks pay their taxes in the spring of 2019 for 2018. But what will they do for an encore? Has their extra money already been spent? So, just like monetary policy controlled by the Fed, the fiscal policy—the tax and spend—managed by the President and Congress may have outlived its economic boost as we go through 2019.”

But the good news is, he said, “The only thing that could cause a recession again is something that is not predictable right now—some geopolitical thing we can’t fathom.”

One final topic, germane to a community that supports two major refineries at Cherry Point—Phillips 66 and BP: “We recently saw oil prices take a 23% dip in one month, and the trickle-down effect depends on who you are: If they stay down, that’s good for you and me at the pump, particularly if you drive an SUV or use oil in your business, like so many industrial companies around here. But maybe it’s not such a good thing for our Cherry Point buddies. Last year, for example, Phillips 66 stock was up-and-down, up-and-down.

Oil prices cause volatility, and they’re in our neighborhood.”

Paul closed our coffee klatch with some insights and a plea for everyone to keep up with the economic scene, at least on a cursory basis: “The world is so global. When they cough in Beijing, we’re going to sneeze here in Whatcom County. We’re so tightly connected, some sectors more than others. What happened to us in 2008 caused a meltdown in every country, because we’re just like this (he raised interlocked fingers).

“People don’t realize that in 2018 the U.S. economy was the largest in the world, ahead of China—which will be No. 1 in the next 5-10 years—yet we’re only 23% of world’s total economy. And if we’re just a quarter, we’d better know what’s happening in the other 75%, because it affects us.”

In summary, and in predicting a backing off of economic growth this year, Paul identified that we may have “taken from Peter (in 2019) to pay Paul (in 2018).” Specifically, he outlined how The Organization of Economic Cooperation and Development (OECD) expects the U.S.’s real GDP— gross domestic product—growth to slow next year to +2.72% from +2.90% this year. Then real GDP is to decelerate again in 2020 to +2.13% and normalize thereafter at 1.87% per annum.

“These forecasts are much slower than President Trump’s promised 4%,” Paul said. “So, again, it’s not another recession, because even as the economy slows, it will go into shrink mode. It’ll still grow, but not robustly. That’s not great for business, but it’s not a disastrous Armageddon either.” P+

34 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 35

Benefits of Hiring People with Developmental Disabilities

By Cheryl Stritzel McCarthy Many local companies and nonprofits hire individuals with a developmental disability. And the benefits are many on both sides—the employer and the employee.

“You get a good employee, that’s the main benefit,” said Matt Carlson, Executive Director of Kulshan Supported Employment (KSE). It is a nonprofit that provides vocational services to adults with developmental disabilities that can include Down Syndrome, autism, cerebral palsy, fetal-alcohol syndrome, childhood brain injury, and more among their candidates for hire. KSE helps their clients find and maintain meaningful employment.

The Whatcom County Health Department estimates there are about 2,500 individuals in the region with developmental disabilities, though the department has no record of how many of those are seeking employment. Nationally about 85% are unemployed, 54% have Social Security as

36 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

their only income, and 82% of their families say that economic security is challenged among people with developmental disabilities. (Sources: The Arc of the United States, and Washington State Apple Health.)

KSE exists to bring together local adults seeking jobs with employers who need workers. “We help our clients by learning their strengths, and matching that to job openings or carved-out positions, which is a portion of a job description,” said Nicole Mathey, Program Manager at KSE. “We do specific job development when we have someone in mind, and talk to people to see if there’s a match.”

Organizations in the community currently employ 116 of KSE’s 125 clients. Those employers include Aramark, Western Washington University dining halls, Bramble Berry, The Opportunity Council, Whatcom Transit Authority, Haggen and others.

Austin Karaffa hard at work in the Haggen Northwest Fresh bakery.

“Most days, Austin arrives home with a flour-dusted apron, a sweaty brow, and a smile as he lists off the jobs that he completed that day.”

Michelle Karaffa, Board of Directors, The Arc of Whatcom County, speaking of her autistic son.

Tasks include handling office materials, working on production lines, performing janitorial services, and more. The public, according to KSE and the Health Department, is used to interacting with employees with developmental disabilities in local grocery stores and restaurants.

Michelle Karaffa, a board member of The Arc of Whatcom County, said that many of those employed locally receive support from job coaches who go with the employee, especially initially, and help them become acclimated. Generally, Medicaid funds the support services. “It makes it easier for employers interested in hiring people with developmental disabilities because they know there will be financial support,” Karaffa said.

She has first-hand experience with her son, Austin. “With the backing of KSE, this past summer Austin was hired by the Haggen store on Meridian Street as a member of the bakery department team,” Michelle shared. “For many people with autism, like Austin, employment positions with routine responsibilities are optimal.”

She said that his position has been a perfect blend of consistent job tasks combined with skills he learned in the Bellingham Technical College pastry arts program. “Most days,” Michelle said, “Austin arrives home with a flour-dusted apron, a sweaty brow, and a smile as he lists off the jobs that he completed that day.”

Executive Director Carlson said KSE pre-screens its clients.

“We know our clientele pretty well. We talk to the employer and find out what they want; there’s no wasted time for employers,” he said. “And our clientele are excited to work, and dependable.

They are long-term employees. If we do a good job learning what our client’s interests and abilities are, there are quite a few things they could do. As we figure out what employers need, different industries could open up. A lot of our clients, like anyone, can do different things.”

He offered high praise for the companies and nonprofits that KSE works with. “We have some champion employers in this community,” Carlson said. “They’re not hesitant to hire and place

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 37

“Our clientele are excited to work and dependable, long-term employees. We have some champion employers in this community…(who) place people in positions where they can reach their full potential. It’s exciting to see clients thriving at work.”

Matt Carlson, Executive Director, Kulshan Supported Employment

Thirteen-year WWU employee Aaron Echivarria on his campus rounds.

Aaron works at Western’s print and copy center.

people in positions where they can reach their full potential. It’s exciting to see clients thriving at work.” And he said he sees a lot of that.

In a way, that’s what brought him to KSE. In 1989, Carlson was a college student in Bellingham with a part-time job at a rental store. One of his co-workers there had a developmental disability. “She was the only employee who was happy the whole time,” he said. “She came in, did her job, and did it well.”

Carlson eventually left that rental-store job, went to work for KSE, and was asked to stay on after getting his degree in chemistry education. He was named Executive Director in 1997. “I was going to be a teacher, and that’s what I like about supported employment,” he said. “It’s long-term. We can build relationships.

There’s value in what we do. It’s something I can believe in.”

Funding for nonprofits such as KSE first became available in the late ’80s. The idea was to promote supported employment within the larger community, rather than just in sheltered workshops.

KSE’s funding from federal and state sources is administered by Whatcom County. The County pays KSE on average $425 monthly for each client. KSE logs the hours spent on each client and receives payment by the hour, with caps on the billable amount.

Once an employee is trained, on the job, and communication between employee and employer is good, the KSE job coach backs off, Carlson said. “We try for 90% client independence, and check in 10% of the time. The goal is for the employer to be the supervisor, and for the client to see the employer as his boss.”

From there, he said, “We help with little things so they don’t become big. An example is helping a client understand why his regular shift might have to change, due to delivery-truck timing or something similar. “Sometimes our clients just need 15 minutes of explanation, and with that, they accept.”

In the process described by Carlson, a job coach not only helps a client know what to expect and how to interact, but helps the employer interact effectively, too. That could mean providing a picture list of steps involved in the task, or a written list rather than just verbal instructions. “As job coaches, we figure out what an employer needs so our client can be a good employee, and the employer can get results,” Carlson said.

Michelle Karaffa cited an example in her son Austin’s case: Early in his employment, the bakery department supervisors recognized that creating a written list of daily jobs would help Austin become a more independent and productive worker. “The bakery department team and store management continue to be in his corner,” she said. “When asked what he enjoys most about working at Haggen, he will tell you, ‘Contributing to the team.’”

KSE also communicates with its clients’ advocates outside of the job: family, care provider, or counselor. “Problem-solving goes along with helping that person become successful,” KSE Program Manager Mathey said.

“It’s awesome for that person to use their paycheck to have more financial freedom. They can afford a nicer place to live.

They pay back into the taxing system that supports this. Those are all great benefits of seeing someone be successful in a job.”

That success is derived from a simple concept, summed up by Carlson: “You’re looking at the person, not the disability.”

38 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019







We have $10 Million Ready!

For Business and Commercial Loans in Whatcom and Skagit County.

Call Bob!

northcoastcu.com | 1-800-696-8830 FB.com/NorthCoastCreditUnion

@NorthCoastCU

Bob Yost VP Commercial Lending (360) 685-4026 byost@northcoastcu.com *Loans are approved based on qualifications.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 39

photo courtesy port of bellingham

anchors our way Cargo ships and jobs return to the docks of Bellingham

By Dave Brumbaugh

photo courtesy port of bellingham

C

argo ships will return to the Port of Bellingham this year, but their economic impact depends on the frequency of their arrivals.

Ports America, the largest terminal operator and stevedore in the United States, signed a three-year service contract with the Port of Bellingham in late 2018. Port of Bellingham officials and Local 7 of the International Longshore and Warehouse Union (ILWU) have high hopes that the agreement will result in the first consistent use of the Bellingham Shipping Terminal in 16 years.

“What we’d like is to have several of the ocean carriers call on a monthly basis,” said Chris Clark, Terminals Business Manager for the Port of Bellingham.

Clark said the first cargo ships most likely will bring steel products such as coils, pipes, and beams. Under the terms of the contract, Ports America, based in New Jersey, also has exclusive stevedoring rights for certain types of steel, inbound international forest products, metal/aluminum ingots, modules, and oversized and project cargoes. Much of the inbound cargo will be stored temporarily at the Bellingham shipping terminal in Fairhaven before the cargo gets trucked to Canada as its final destination.

The Port of Bellingham and Ports America will combine marketing efforts to attract ocean carriers, Clark said.

The contract is great news for ILWU Local 7, which has seen Port of Bellingham jobs drop to nearly nothing, according to Darren Williams, the local union’s Secretary-Treasurer. “We have a very limited local workforce,” he said. “If we get a ship a month, we’ll add 5-10 members.”

Port Commission President Ken Bell foresees much more, though job and financial projections are not specifically cited in the agreement. In an interview after a news release announcement by Ports America, Bell said, “The possibilities are endless

in how this deal will open the working waterfront.”

The vision in the deal is for a return to the activity of the 1980s and 1990s when Bellingham’s Georgia-Pacific mill and the Alcoa Intalco aluminum smelter in Ferndale used the terminal. At their peak, they required 45 full-time union positions and 30-40 part-time workers. But the mill closed and the Intalco ships went away, and by March 2002 the terminal had no ships calling.

The only significant activity since then was a single cargo ship bearing organic soybean meal in 2017 and some barges last summer delivering armor rock for waterways. “It was a major transition from what it was then (’80s-’90s) to what it is now,” Clark said.

Bell commented, “It’s not so much the money it will make, it’s about employment opportunities and new products going in and out. We’ll generate revenue from fees for parking, storage, etc.

But it’s a long-term vision, not short-term gains. We can build up the infrastructure and actually put people to work that we haven’t been able to.

“Jobs, jobs, and more jobs.”

Local 7’s Williams praised recent efforts to attract cargo ships.

“Over the last 18 months, the Port has made the right decisions,” he said. Williams added that ILWU Local 7 leadership met with Ports America to ensure a mutual understanding of the scope of work, manning requirements, safety, and objectives.

Ports America stated that it recognized and valued Bellingham as the last Pacific Northwest seaport between the United States and Canada. “It was only a matter of time before cargo operators recognized the Bellingham Shipping Terminal as a congestion-free alternative to the docks and terminals serving Vancouver and Seattle,” Bell said.

42 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

“The possibilities are endless in how this deal will open the working waterfront.” ken bell / port commision president

photo by scott book

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 43

photo by James K. Papp

“There are many suppliers in Whatcom County who will benefit from increased cargo activity at the Bellingham Shipping Terminal.”

Darren Williams, Secretary-Treasurer, ILWU Local 7

Clark pointed out that ocean carriers increasingly face delays getting into Vancouver, B.C., ports and then customers struggle to get their cargo off of those terminals.

In breaking the news, Ports America Director of Breakbulk and Project Cargo Bart Goedhard acknowledged several advantages of the deal. “In addition to abundant berth space, warehouse and laydown space, the terminal is near major cities, has a dedicated truck corridor to I-5, and has close proximity to rail,” he said.

All of the primary local stakeholders, primarily the Port of Bellingham and the Local 7, believe the economic impact of the Ports America contract will extend far beyond just more union jobs. “Many suppliers in Whatcom County will benefit from the increased cargo activity,” Williams said.

Port of Bellingham is considering whether to designate the shipping terminal and surrounding areas as a Foreign Trade Zone (FTZ) where customers can store goods without having to pay United States import duties and taxes. But Clark is leery of the long-term storage aspects of an FTZ, which extends the industry standard of 45 days for cargo off-loaded at a terminal to be taken away to its final destination.

When much terminal space is used for cargo storage, it may prevent other ships from arriving. But long-term storage has strong appeal to shippers, both incoming (ships) and outgoing (trucks).

“If we have to do it (FTZ designation),” Clark said, “we will.”

In addition to the three-year contract, Ports America has options for two additional terms of three years each.

Headquartered in Jersey City, New Jersey, it is the largest independent marine terminal operator in North America. Ports America provides terminal management and a full suite of stevedoring and related services.

“This is outstanding because of unrestricted access to all the shipping terminals and ports they have access to,” Bell said.

Ports America, with about 12,000 employees, does business at more than 80 terminals in 42 ports in North America, handling containers, roll-on/roll-off cargo, general cargo, and cruise line passengers.

“We didn’t have those avenues to other markets,” Bell said.

“And ships will be empty when they get ready to leave us. We can be proactive with commerce going back out when ships come in, move things like wood and grains.”

Bellingham Shipping Terminal is a full-service, flexible facility capable of meeting a diverse range of business needs. Terminal assets include 1,250 feet of dock space on a deep-water pier, a 550-foot barge pier, 85,000 square feet of covered storage, 40 acres of available land, and access to resources by rail, barge, rafts, trucks, containers, and ocean-going vessels.

44 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

GRANDVIEW

BUSINESS CENTER y g r e n y S GBC! JOIN THE AT

NOW HOME TO OVER 75 INDUSTRIAL, MANUFACTURING, AND SERVICE BUSINESSES!

MINUTES FROM BELLINGHAM AND CA BORDER/1-5 VISIBILITY AND ACCESS FURNISHED, READY-TO-WORK, OFFICE, RETAIL AND INDUSTRIAL WAREHOUSE SPACE AVAILABLE FOR LEASE TODAY

(360) 380-2907 INFO@GRANDVIEWCENTER.COM GRANDVIEWBUSINESSCENTER.COM 7056 PORTAL WAY, FERNDALE, WA

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 45

QA and

Turn Your Body On and Go!

photo by scott book

What Happens to That Lose-Weight New Year’s Resolution—and Other Insights From a Fitness Pro

Interview by Mike McKenzie Business Pulse invited Gene Kelly to address the oft-doomed New Year’s resolution of losing weight, and—with health-care costs and workplace downtime as major issues—the importance of health and fitness in the workplace. Gene has worked the last 45 years in the physical-fitness training and life-coach industry.

He operates the Adventure Fit Academy locally and heads up the training programs at family-owned Bellingham Fitness. He has set up courses and taught at several colleges and provided certifications as a member of the Board of Education within the National Federation of Physical Trainers (NFPT). At the heart of his work, he says, is a simple message: Get up off that couch and move around outdoors!

Business Pulse: Studies show losing weight as the No. 1 New Year’s resolution every year, but more often than not, it’s broken. Why? GENE: The main reasons people fail are that they don’t set realistic goals and they don’t have a plan. Their expectations are way out of bounds. They say, “Yeah, I want to lose 20 pounds,” and that’s as far as it gets, because they think that happens quickly.

When it doesn’t, that’s demotivating.

What do you use as a motivator?

What works is creating a system where you can find success.

During the first year, break down some benchmarks—where you need to be in a month, two months, etc. That drives you to be more motivated. You see the progress and the benefits, and you’re creating value by charting progress.

What’s the strongest negative force?

Physical training is all up here (he pointed to his temple). A longterm commitment to personal health is all in your head. I spend a lot of time mentally with clients. The body is just a vehicle to move us around.

What makes it so hard mentally?

The reality is that we’re designed to economize movement and energy. Every time you get set to work out, the brain is going, “No, no, no, no.” It’s telling you to conserve energy. When you get to a point where you understand that—after feeling clumsy and awkward at first—you get a second wind. The body turns on and goes.

That doesn’t sound easy.

Sure, I can tell you all day long, but it doesn’t exist for you. All you’ve ever related to with exercise is discomfort. When you push yourself, it gets to be like a toothache. There are ways to get around that.

46 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

Like how?

Do things, go places. I set goals for my clients. Big goals. We want to expand your horizon, expand the threshold to what you’re capable of.

Examples?

Canyoneering, for one. In my physical-trainer certification classes and in my boot camps, I offer a trip to the Grand Canyon. Mentally, it’s an enormous goal, overcoming the discomfort of hiking 12 miles to the bottom and back up. I’ve done that with thousands of people, and all but a very few have said that hike changed their life. It doesn’t have to be the Grand Canyon. We can hike Mt. Baker.

What if hiking doesn’t hold appeal or seems too intimidating?

The idea is that to enjoy a better life, create a better experience—enrich your life. There are many possibilities. We’ll go paddling, biking, skateboarding, anything that’s entertaining and fun and that you can do on regular basis that’s active. It doesn’t have to be rigorous. For some, it’s gardening.

We’ve gone foraging for plants. Bird watching. All you have to do is be active.

What about the workouts themselves?

Mainly, I focus on balance and flexibility and short bursts of intense activity. Work just on simple movement for several weeks. An example is squat, squat, squat.

If squatting is too hard, do what I call crutching—hold onto something when you squat.

Does it help to work out with somebody else?

Yes, that’s one of the biggest motivators.

Camaraderie. The feeling of, “I’m not alone here.” I far prefer to put clients into a group program—large or small—whichever is their preference. I work out with all of them, all day long. I love working out with all my clients because then they know I know what they’re going through.

All fitness clubs market to companies for corporate memberships for that reason, right?

Yes, we encourage that as a fitness club and healthcare provider, and companies see the value in having healthy

QandA Continued on Page 55 JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 47

Logo Design - Websites - Business Cards - Stationery - Direct Mail

Starting a new business?

Get off on the right foot.

Print & Copy Factory is here to help.

Visit our website to see our start-up packages or give us a call today and you can be running smoothly in no time.

Print & Copy Factory | 360.738.4931 | quotes@printcopyfactory.com | www.PrintCopyFactory.com PCFJan2013_BizPulse.indd 1

48 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

12/14/12 3:47 PM

PULSE

HOURS AFTER DINING / BEVERAGES / BO

OKS + MORE

By Sherri Huleatt

photo by scott book

VEGAN FOOD GOES ‘WILD’ AT DOWNTOWN CAFE

OLIVER VENABLEROSE DRAWS AN ORIGINAL-FORMULA MOCHA AS BARISTA AND SERVER AT WILD OAT CAFE IN DOWNTOWN BELLINGHAM.

As a gluten-loving, carnivorous, cheese fiend, “non-meat beef ” isn’t exactly on my personal menu.

But I tried it and liked it at Wild Oat Bakery and Café, a new restaurant on Cornwall Avenue in Bellingham. The café opened last Summer and is delighting vegan and non-vegan customers alike. “There’s one couple who drive all the way from Seattle for our linguini and ‘meetballs,’” said Crystal Davis, the café’s owner, who has worked every day since opening the restaurant in July 2018.

“You don’t have to be vegan to enjoy a good vegan meal,” Davis said. That’s why she’s packed her menu with popular comfort-food staples featuring a vegan twist, including a French dip, the “meetball” sandwich, gyro, reuben, “fysh” filet sandwich, and “The Impossible Burger”—a towering vegan burger with all the fixings.

Nearly all of the café’s ingredients are house-made, including a mushroom-based, “non-meat beef,” all salad dressings, sauces, sauerkraut, and dessert pastries. Davis even concocts her own milk formula and the chocolate ganache for a mocha.

All of the dishes contain as many organic and local ingredients as possible while keeping menu prices down. Their most expensive item goes for $14.95. All local businesses also get 10% off at the café.

Davis opened the restaurant to give vegans more dining options. “If you’re a vegan and you go out to eat, your choices are so limited—you might get one to two options on the menu,” Davis said. “I wanted to create a nice little café where vegans could eat anything on the menu.”

The intimate, 29-seat café’s Winter schedule serves breakfast and lunch seven days a week from 8 a.m. to 3 p.m. They also display local art throughout the café, featuring endangered animals.

Davis, who’s been a vegan for five years, grew up on a farm in Oregon and has worked in nearly every role in the food and restaurant business, although this is the first restaurant she’s opened. Her dream is to generate enough profit at the restaurant that she can open a small farm and animal sanctuary.

Meanwhile, she keeps tinkering with vegan and organic servings for her specialty café and bakery. Like the chocolate ganache and the milk recipe for a mocha.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 49

event picks PULSE AFTER HOURS MUSIC Portland Cello Project Plays Radiohead, Coltrane, & Bach JAN 13 Don’t miss this huge, orchestral ensemble that includes brass, percussion, and guest vocals by Patti King of the Portland band The Shins. Formed 12 years ago with nine classically trained cellists, Portland Cello Project has a mission to bring cellos to new places, bring new music to cellos, and bring to audiences all of the sonic ecstasy that happens in the process. Expect this alternative-classical group to perform an evening of powerful arrangements from unexpected artists, culminating in Radiohead pieces that wander from truly epic to breathtakingly intimate.

Mount Baker Theatre, 3 p.m.

Tickets at mountbakertheatre.com.

VoicePlay JAN 18 Roam the breadth of the musical landscape when VoicePlay recreates the orchestrated sound of an entire musical production with just five voices. VoicePlay is an imaginative and original theatrical experience that takes the timeless sound of vocal music and turns it completely on its head. Great for all ages, this full-blown stage show combines humor, harmonies, and “how did they do that?” into a powerfully fun musical experience. Don’t miss this barbershop act turned touring sensation.

Mount Baker Theatre, 7:30 p.m.

Tickets at mountbakertheatre.com.

Mike Allen Quartet Featuring Miles Black JAN 30 Vancouver jazz masters Allen and Black have played together in various configurations for over 20 years—it is sheer delight to hear them together. On their 2017 album, “Bob’s Piano,” Ted Quinlan of Whole Note magazine notes “Allen’s burnished tone and understated approach mesh perfectly with Black’s melodicism, the two soloing as one at times.” The evening promises to be distinctive, memorable.

Sylvia Center for the Arts, 7 p.m.

Tickets at door after 6 p.m. Doors at 6:30 p.m.

An Acoustic Evening with Lyle Lovett & John Hiatt Jan 31 Ride alongside two titans of Americana on a trail that winds through rootsy rock, country, and blues. Singer, composer and actor Lyle Lovett has broadened the definition of American music in a career that spans 14 albums. Coupled with his gift for storytelling, the Texas-based musician fuses elements of country, swing, jazz, folk, gospel, and blues in a convention-defying manner that breaks down barriers. Singer-songwriter John Hiatt has four decades of contributions to the music scene. Long celebrated as a skilled storyteller and keen observer of life’s

STOMP JAN 24 & 25 STOMP is explosive, provocative, sophisticated, sexy, unique, and appeals to audiences of all ages. This international percussion sensation has garnered awards, rave reviews, and numerous national television appearances. The eight-member troupe uses everything but conventional percussion instruments—such as matchboxes, wooden poles, brooms, garbage cans, Zippo lighters, or hubcaps—to fill the stage with magnificent rhythms. As USA Today says, “STOMP finds beautiful noises in the strangest places.”

STOMP. See what all the noise is about.

Mount Baker Theatre, 7:30 p.m.

Tickets at mountbakertheatre.com.

50 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

twists and turns, Hiatt can get at the heart of a knotty emotion or a moment in time with just a sharp, incisive lyric or witty turn of phrase.

The Eclipse Sessions, his newest collection, demonstrates that Hiatt is only getting better with age, his guitar playing more rugged and rootsy, his words wiser and more wry.

Mount Baker Theatre, 7:30 p.m.

Tickets at mountbakertheatre.com.

Pearl Django with Gail Pettis FEB 9 Listen to masterful gypsy jazz reverberate in the Chamber Hall. The band’s signature style is marked by pristine and dexterous string work, colors of Bal Musette, the steady pulse of rhythm guitar, and an unmistakable swing that delights audiences of all musical sensibilities. Although the band’s roots are firmly in the music made famous by Django Reinhardt and Stephane Grappelli, its extensive repertoire includes traditional jazz classics and original compositions. With a performance history spanning more than two decades, Pearl Django endures as one of the most highly regarded Hot Club style groups working today. Pearl Django has performed at festivals, dances, and nightspots throughout the U.S. and abroad.

Jansen Art Center, 7:30 p.m.

Tickets at jansenartcenter.org

JAZZ LEGEND

ROY MCCURDY WITH COREY WEEDS 1.15,18 | 7:00 PM SYLVIA CENTER JAN 15 Roy McCurdy represents more than 50 years of jazz history. His swift and fluent drumming has powered some of the best-loved names in jazz, including Sonny Rollins, Count Basie, Ella Fitzgerald, Sarah Vaughn, Herbie Hancock, and “Cannonball” Adderley. Corey Weeds and McCurdy lead an all-star band of Northwest talent in celebration of Cannonball Adderley’s music and a newly released album.

Lucas Hicks Theatre in The Sylvia Center for the Arts, 7 p.m. Tickets at the door after 6 p.m. Doors at 6:30 p.m. First come, first seated.

PU

LS

PR PICIME K

Natalie MacMaster & Donnell Leahy: Visions from Cape Breton and Beyond

E

FEB 23 Natalie MacMaster and Donnell Leahy command the stage with an explosive celebration of raw energy and passion that infuses their traditional heritage with their taste for the contemporary. In this unique show, Natalie and Donnell share the musical traditions of their hometowns of Lakefield, Ontario and Cape Breton, Nova Scotia, as well as the talents of some of their six children. Come prepared for dancing, singing, and world-class music-making with these international stars.

Mount Baker Theatre, 7:30 p.m.

Tickets at mountbakertheatre.com.

DANCE Los Vivancos Born to Dance FEB 16 Journey to a place where total commitment to renaissance artistry results in complete entertainment. Los Vivancos are seven brothers. Educated in different world cities, each speaks a minimum of four languages, plays at least two instruments, and many have been solo artists in major ballet and contemporary dance companies.

Reunited, they have channeled their passion into their own eclectic style that dares to unify flamenco, ballet, martial arts, street dance, theatre, and acrobatics. Born to Dance brings together the artistic collaboration of Daniele Finzi Pasca (Director of Cirque du Soleil’s Corteo) with Music Director Fernando Velazquez. Expect charisma, physicality, showmanship, dramatic effects, and the exceptional sense of rhythm that is setting audiences ablaze around the world.

Mount Baker Theatre, 7:30 p.m.

Tickets at mountbakertheatre.com.

THEATER Kinky Boots FEB 28 Kinky Boots is Broadway’s hugehearted, high-heeled hit. With songs by Grammy and Tony-winning pop icon Cyndi Lauper, this joyous musical celebration is about the friendships we discover and the belief that you can change the world when you change your mind. With direction and choreography by two-time Tony Award

VISUAL the sound of moonlight: Paintings by Todd Horton NOW – MAR 1 The Jansen Art Center is pleased to welcome Todd Horton to the Fine Arts Gallery for an exhibit of his work this winter. Todd Horton lives on his boat on the Samish River in Edison, Washington. He works full time at his studio in nearby Blanchard.

Horton will be giving an artist demonstration at the reception throughout the evening.

Jansen Art Center, jansenartcenter.org. winner Jerry Mitchell (Legally Blonde, Hairspray) and a book by Broadway legend and four-time Tony Award winner Harvey Fierstein (La Cage Aux Folles), Kinky Boots is the winner of six Tony Awards including Best Musical, Best Score, and Best Choreography.

Mount Baker Theatre, 7 p.m.

Tickets at mountbakertheatre.com.

VISUAL Romantic Rural: Paintings by Elizabeth Wonnacott NOW – MAR 1 The paintings by Elizabeth Wonnacott are about the substance of paint, the accuracy and abstraction of objects and

subjects, the use of descriptive gesture in brushwork and the clarity of a very limited color palette. A common feature in the artwork is the dramatic depiction of light and shadow. Wonnacott will imagine her colors in full warm sunlight to emphasize detail and contrast with flat, simple shadows that often become the essential compositional element.

While looking at left-behind architectural beauties, Wonnacott conjures a vision that life on these homesteads was charming, simpler and more fulfilling but knows in reality the past occupants lived lives of hard work, difficulty and sacrifice. While creating this art, Wonnacott explored the connection between what was real and her own sentimental and romantic perspective.

Jansen Art Center, jansenartcenter.org.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 51

PULSE PNW Winter-Survival Beers AFTER HOURS As you well know, we are blessed to live in an area with one of the greatest concentrations of breweries per capita in the world (our fact checker is off for the holidays, so if that’s “fake news” we sincerely apologize). In this oasis from the “dilly dilly” world of watered-down beer, it’s time to step up and pour a pint of something robust and meaty—a stout or a porter. You’d think that in an area this obsessed with coffee, these beers would get a little more attention, as many stouts and porters regularly have hints of coffee in their deep, full-bodied flavor profiles. The selection below will help keep you warm and glowing this winter—just look at those ABV percentages! As always, enjoy responsibly.

Wander Global Mutt Baltic Porter, (ABV 7.0%) Coffee sourced directly from the farmer in Brazil, Fair Trade cocoa nibs from the Democratic Republic of Congo, chocolate from Theo’s in Seattle, water from Bellingham, hops from Yakima, and specialty malt from Europe dance together in this BIG Baltic porter…a true Global Mutt.

Farmstrong Brewing Company Steer You Right Imperial Stout, (ABV 9.0%) Offers immensely complex flavors and a big malt body.

Subtle hints of cocoa and coffee are present with a slightly boozy finish. Not sure where your day is headed? This beer is very well-suited for aging.

Kulshan Brewing Company Kitten Mittens Winter Ale, (ABV 8.0%) The perfect beer for these cold months; this rich, medium bodied beer elicits nuances of chocolate, dates, and figs. Balanced bitterness and playful hop aroma fit like a mitten. Stay warm out there…

52 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

Wander Barrel-Aged Earlybird Imperial Breakfast Stout (ABV 9.6%) Wander wakes up Earlybird once a year after it’s long, deep slumber in bourbon barrels. This sticky, sweet, bold, and fully refreshing imperial stout is brewed with lactose, house-made dolce de leche, oats, and coffee. The perfect addition to a well-balanced breakfast.

Don’t forget the donuts.

Boundary Bay Imperial Oatmeal Stout (ABV 8.5%) A local Winter/early Spring favorite, this nutritious “meal in a glass” is well aged to warm your very soul.

JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 53

reads PULSE AFTER HOURS Principles: Life and Work Ray Dalio In 1975, Ray Dalio founded an investment firm, Bridgewater Associates, out of his two-bedroom apartment in New York City. Forty years later, Bridgewater has made more money for its clients than any other hedge fund in history and grown into the fifth most important private company in the United States, according to Fortune magazine.

In Principles, Dalio shares what he’s learned over the course of his remarkable career. He argues that life, management, economics, and investing can all be systemized into rules and understood like machines. The book’s hundreds of practical lessons, which are built around his cornerstones of “radical truth” and “radical transparency,” include Dalio laying out the most effective

ways for individuals and organizations to make decisions, approach challenges, and build strong teams. While the book brims with novel ideas for organizations and institutions, Principles also offers a clear, straightforward approach to decision-making that Dalio believes anyone can apply, no matter what they’re seeking to achieve.

Here, from a man who has been called both “the Steve Jobs of investing” and “the philosopher king of the financial universe” (CIO magazine), is a rare opportunity to gain proven advice unlike anything you’ll find in the conventional business press.

(September, 2017, Simon & Schuster) Hardcover $30: Available to order Village Books, Barnes & Nobel, and Amazon.

Girl, Stop Apologizing: A Shame-Free Plan for Embracing and Achieving Your Goals Rachel Hollis Rachel Hollis, host of the Rise and Rise Together podcasts, CCO of the company she founded, and mother of four wants you to stop thinking you have to balance it all and apologize for wanting it. This bestselling author of Girl, Wash Your Face and founder of TheChicSite. com urges women to stop apologizing for their desires, hopes, and dreams and instead to go after them with passion and confidence.

Hollis has seen it too often: women not living up to their full potential. They feel a tugging on their hearts for something more, but they’re afraid of embarrassment, of falling short of perfection, of not being enough.

In Girl, Stop Apologizing, #1 New York Times

Willpower Doesn’t Work: Discover the Hidden Keys to Success Benjamin Hardy We rely on willpower to create change in our lives...but what if we’re thinking about it all wrong? In Willpower Doesn’t Work, Benjamin Hardy explains that willpower is nothing more than a dangerous fad—one that is bound to lead to failure. Instead of “white-knuckling” your way to change, you need to instead alter your surroundings to support your goals. This book shows you how.

The world around us is fast-paced, confusing, and full of distractions. It’s easy to lose focus on what you want to achieve, and your willpower won’t last long if your environment is in conflict with your goals—eventually, the environment will win out. Willpower

54 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

bestselling author and founder of a multimillion-dollar media company, Rachel Hollis sounds a wake-up call. She knows that many women have been taught to define themselves in light of other people—whether as wife, mother, daughter, or employee—instead of learning how to own who they are and what they want. With a challenge to women everywhere to stop talking themselves out of their dreams, Hollis identifies the excuses to let go of, the behaviors to adopt, and the skills to acquire on the path to growth, confidence, and believing in yourself.

(March 12, 2019, HarperCollins Leadership) Hardcover $24.99: Available to order Village Books, Barnes & Nobel, and Amazon.

Doesn’t Work is the needed guided for today’s over-stimulating and addicting environment.

Benjamin Hardy will show you that nurture is far more powerful than your nature, and teach you how to create and control your environment so your environment will not create and control you.

“If you only read one book in 2018, make it this one. This book will help you accomplish more in less time than any other book—by changing your entire approach to confidence and personal commitment.”—Inc. (March 6, 2018, Hachette Books) Hardcover $26: Available to order Village Books, Barnes & Nobel, and Amazon.

QandA Continued from Page 47 employees. I’ve worked in corporate fitness my whole career.

Does insurance cover an individual to work out?

Here, we support two plans for older clients, too—Silver Sneaker (covered by Medicare) and Silver Fit. For others, Blue Cross Blue Shield and many insurance companies pay up to $250 a year for individuals to have a gym membership. You have to dig for it. They don’t advertise it.

But it’s a common option.

Any idea of the cost to business of health issues?

I’ve done some research and found that leading health organizations have conducted studies that show the cost at about $530 billion a year spent on dealing with chronic diseases that could be prevented.

That’s a huge impact on the workplace.

What’s the biggest contributor to that cost?

The biggest cause of work loss is overweight employees. That’s because obesity creates so many complications—Type 2 diabetes, back issues, heart problems. And obesity has increased greatly over the 45 years I’ve been a trainer because we have so many opportunities now to overeat, with junk-food stores on every corner. It’s the evolution of society.

What do you recommend?

It all comes down to education—learning how your body works. I emphasize immune-system health and how it works with the lymphatic system, and stress that the only way these systems can clean the body is through activity.

What about cholesterol?

Learn about cholesterol management, too—how intense exercise turns bad cholesterol to good and repairs tissue. If you’re not exerting yourself, there’s no adjustment and you get in trouble.

How did you get into this career track?

As a little boy in southwest Texas, I always wanted to live to be 100. I knew I had to exercise and live a clean life to do that. At age 19, heading to college at Texas Tech,

I figured I might as well as get paid for it.

Working that summer at the Presidents Racquet Club in Dallas, I got certified as a personal trainer.

But your resume says firefighter, too. How did that happen?

My family moved to Arizona and I became a bartender in a casino out there. But, bartending had too much smoke and alcohol, so I looked for something else. One day I walked into a fire station; it had a lot of trophies on a shelf, and I thought, “They know how to play –I’m one of them.” I joined and immediately got into technical rescue, and then into health and wellness and created programs for families through the National Fire Protection Agency during my 20-year career as a firefighter.

Your passion for fitness is obvious.

I believe so strongly in what we do. Get moving. Your life is your pride. Go accomplish something. Begin now. Time is your biggest asset. You’ve got to make it count. P+

THE GENE KELLY FILE • Goes by Geno, as in AdventureFitGeno in his email address.

• Traveled during teen and college-age years as a musician.

• Developed a 20-year career as a firefighter in Arizona, specializing in administering health and wellness programs for families through the National Fire Protection Agency.

• Wife, Patty, now a librarian in Ferndale, once managed a gym where he worked.

• Started a company that built custom pools, waterfalls, and caves in people’s homes in California.

• Trained with Arnold Schwarzenegger at Venice Beach and Gold’s Gym. Also, with names like Frank Zane, Franco Columbu, Bill Pearl (“watched him dead-lift 790 pounds at 78 years old”), Charlene Johnson, Tony Horton of Beach Body, and took students to Biggest Loser camp with Jillian Michaels and Bob Harper.

QandA Continued on Page 56 JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | 55

— COMING IN MARCH 2019 —

MARKETPLACE Special Advertising Section

Now any sized business can afford to reach the affluent decision makers in Whatcom County in each issue of Business Pulse with an ad in the new MARKETPLACE.

2-BLOCKS Horizontal 2.25” x 3” Photo Up to 100 Words Phone + URL

360.123.4567 businessname.com

3-BLOCKS Vertical 2.25” x 3” Photo Up to 235 Words Phone + URL Construction Inspection

4-BLOCKS 4.7” x 3” Photo Up to 230 Words Phone + URL Small Business Accounting Aquas alicia ipsum inum voluptatur, que vellectas consed que offictes dent volent as inulpar uptium quis sam, odis aut inim hitTaecus accus atisquunt quodis moluptur, odi veniatures consequas eatio. Nat. Hent omni dellam aborro et alitiundit volenec torecum re sam, sequaestium int rem sus alit parchicid ut ipsamusci cor as ipicabor remperi opta nosanias ad quia qui que sitio mil is imolori busdam quo inimi, omnihil earcimu santis dolupitati simolores nam excest, ate natesti orepre, is si demporeprero volo berem que ex et, odi totate dolupta tquam, imendaestiis dolent cuptatus.qui sim expere demporis modigenet aut quunt in rem qui omnihiciis et aut et que lant. Aquas alicia ipsum inum voluptatur, que vellectas consed que offictes dent volent as inulpar

uptium quis sam, odis aut inim hitTaecus accus atisquunt quodis moluptur, odi veniatures consequas eatio. Nat. Hent omni dellam aborro et alitiundit volenec torecum re sam, sequaestium int rem sus alit parchicid ut ipsamusci cor as ipicabor remperi opta nosanias ad quia qui que sitio mil is imolori busdam quo inimi, omnihil earcimu santis dolupitati simolores nam excest, ate natesti orepre, is si demporeprero volo berem que ex et, odi totate dolupta tquam, imendaestiis dolent cuptatus.qui sim expere demporis modigenet aut quunt in rem qui omnihiciis et aut et que lant. demporeprero volo berem que ex et, odi totate dolupta tquam, imendaestiis dolent cuptatus.qui sim expere demporis. Aquas alicia ipsum.

360.123.4567 | businessname.com

Aquas alicia ipsum inum voluptatur, que vellectas consed que offictes dent volent as inulpar uptium quis sam, odis aut inim hitTaecus accus atisquunt quodis moluptur, odi veniatures consequas eatio.

Nat. Hent omni dellam aborro et alitiundit volenec torecum re sam, sequaestium int rem sus alit parchicid ut ipsamusci cor as ipicabor remperi opta nosanias ad quia qui que sitio mil is imolori busdam quo inimi, omnihil earcimu santis dolupitati simolores nam excest, ate natesti orepre, is si demporeprero volo berem que ex et, odi totate dolupta tquam, imendaestiis dolent cuptatus.qui sim expere demporis modigenet aut quunt in rem qui omnihiciis et aut et que lant. Aquas alicia ipsum inum voluptatur, que vellectas consed que offictes dent volent as inulpar uptium quis sam, odis aut inim hitTaecus accus atisquunt quodis moluptur, odi veniatures consequas eatio. Nat. Hent omni dellam aborro et alitiundit volenec torecum re sam, sequaestium int rem sus alit parchicid ut ipsamusci cor as ipicabor remperi opta nosanias ad quia qui que sitio mil is imolori busdam quo inimi, omnihil earcimu santis dolupitati simolores nam excest, ate natesti orepre, is si demporeprero volo berem que ex et, odi totate dolupta tquam, imendaestiis dolent cuptatus. qui sim expere demporis modigenet aut quunt in rem qui omnihiciis et aut et que lant. Aquas alicia ipsum inum voluptatur, que vellectas consed que offictes dent volent as inulpar uptium quis sam, odis aut inim hitTaecus accus atisquunt quodis moluptur, odi veniatures.

360.123.4567 businessname.com

For more information, contact: melissa@businesspulse.com 56 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019

MARKETPLACE | Professional Services

Landscaping Aquas alicia ipsum inum voluptatur, que vellectas consed que offictes dent volent as inulpar uptium quis sam, odis aut inim hitTaecus accus atisquunt quodis moluptur, odi veniatures consequas eatio. Nat. Hent omni dellam aborro et alitiundit volenec torecum re sam, sequaestium int rem sus alit parchicid ut ipsamusci cor as ipicabor remperi opta nosanias ad quia qui que sitio mil is imolori busdam quo inimi, omnihil earcimu santis dolupitati simolores nam excest, ate natesti orepre, is si demporeprero volo berem que ex et, odi totate dolupta tquam, imendaestiis dolent cuptatus.qui sim expere demporis modigenet aut quunt in rem qui omnihiciis et aut et que lant.

QandA Continued from Page 55 • Taught courses at Bellingham Technical College, Whatcom Community College, Dixie State University, and College of Southern Nevada. Also, has created certification programs as a member of the Board of Education for the National Federation of Person Trainers.

• Holds national certifications as a Personal Trainer and as a Life Coach.

• Trains for Junior Adventure and for Guide certifications. “I’ve certified over 1,000 personal trainers and guides all over the country.”

• After passing through this area on honeymoon, Patty and Geno moved to Bellingham, raised two children here, and he worked nine years at Bellingham Fitness while operating his tour guide/ adventure academy and other business activities.

• Moved to Las Vegas for a few years, returned in July 2017, and recently became Fitness Director at Bellingham Fitness.

SIX TIPS FOR GETTING STARTED Thoughts from Gene Kelly, CPT 1. Get a coach or mentor. “This is the most important one. All professionals, no matter what they do, have someone to show and teach them and help them find a path to success. Start training with a coach until you can take it over on your own.”

2. Educate yourself. “Learn how your body works. Learn about stress management and nutrition. About 80% of health is about diet.”

3. Cut out all sugar. “Today. If you can’t, make a plan and taper off.”

4. Get variation in your workout.

“Engage in outdoor activities that keep you moving.”

5. Be honest with yourself. “Write your goals, and off to the side write the benefits of achieving them. Work your goals into your life routine. That’s what a professional does.”

6. Start right now. “Time is our biggest asset. You’ve got to make it count.”

It’s all about you.

As it should be.

When you partner with us, you can count on experts who listen, learn and get to know your business, so we can provide solutions specifically tailored to your needs.

Respect, responsiveness and commitment. That’s been our approach in Whatcom County for more than 35 years, and it’s what you and your business deserve.

Let’s create tomorrow, together.

Small Business Administration — Washington State 2017 Regional Lender of the Year

Connect with our Whatcom Commercial Banking Center: 360-752-8205

bannerbank.com

Member FDIC JANUARY/FEBRUARY 2019 BUSINESSPULSE.COM | C

c

l

u

b

206

Savings Account

For customers who enjoy earning a competitive interest rate by carrying a higher balance The Club 206 Savings Account is designed to compliment your lifestyle with:

c

l

u

b

206

● ● ● ●

An exclusive 2.06% APY* for a competitive return on your money 2.06% APY* for balances $0.00 - $749.999.99 1.01% - 2.06% APY* for balances $750,000 and above Earn an additional 0.15% interest with a checking account with monthly direct deposits

● Convenient access to your funds in person, by mail, online, or by ATM ● Earn money on your funds with the flexibility of having access to your funds when you need them

● And so much more...

Learn More > ourfirstfed.com > 800.800.1577 *APY means Annual Percentage Yield and assumes interest will remain on deposit for one year. A minimum balance of $20,000.00 in funds not previously held on deposit at First Federal is required to open this account.

If your daily balance falls below $10,000 any day during the statement period, a monthly maintenance fee of $15.00 will be deducted from your account. Fees may reduce earnings. This is a variable interest rate account and rates may change after account is opened at bank discretion. Customers who have an active First Federal checking account with Direct Deposit each month will earn an additional 0.15% interest. Balance Tiers: $0.00-$749,999.99 = 2.06% APY, remaining balance above $750,000.00 = 1.01%-2.06% APY. We use the daily balance method to calculate the interest on your account and interest is compounded monthly. Rates are effective as of 06/14/2018.

D | BUSINESSPULSE.COM JANUARY/FEBRUARY 2019