Business Pulse magazine January|February 2020

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JANUARY/FEBRUARY 2020

2020

ECONOMIC FORECAST

Local Business Leaders Weigh In On the Future of the Whatcom County Economy

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VOL. 45 | NO. 1 PUBLISHER | Tony Larson

ASSOCIATE PUBLISHER | Melissa Vail Coffman EDITORS | Dave Brumbaugh, Mike McKenzie LIFESTYLE EDITOR | Danielle Larson COPY EDITOR | Larry Coffman CONTRIBUTING WRITERS | Dave Brumbaugh, Sherri Huleatt, Tara Nelson, Mike McKenzie GUEST COLUMNISTS | Paul Guppy, Asche Rider ART DIRECTOR | Scott Book ACCOUNT EXECUTIVE | Ashley Butenschoen ADMINISTRATION | Danielle Larson

— WBA BOARD OF DIRECTORS — BOARD CHAIR | John Huntley, President/CEO, Mills Electric

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EXECUTIVE COMMITTEE | Pam Brady, Director NW Government & Public Affairs, BP Cherry Point; John Huntley, President/ CEO, Mills Electric; Tony Larson, President, Whatcom Business Alliance; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC, Josh Wright, VP/Broker, Bell-Anderson Insurance BOARD OF DIRECTORS | Tyler Byrd, Founder/President, Red Rokk Interactive; Jane Carten, President/Director, Saturna Capital; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Owner, Tradewinds Capital; Jonathan Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein, Sharpe & Serka; Sandy Keathley, Founder, K & K Industries; Lynn Murphy, Sr. Government Affairs Rep, Puget Sound Energy; Laura McKinney, NW Regional Government & Public Affairs, Alcoa Intalco Works; Andy Riddell, NW Business Banking Manager, Wells Fargo; 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 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 © 2020 Business Pulse. All rights reserved.

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

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NEWSMAKERS • NUMBERS • OUT AND ABOUT PHILANTHROPY • MARKETING • SMALL BUSINESS • GUEST COLUMNS

From left, Kevin and Belinda Seutz and Debbie and Dave Black.

Dutch Mothers Now Rustlers’

R

unning one successful Lynden restaurant has kept Kevin and Belinda Seutz plenty busy for nearly two decades, but the opportunity to buy one of that community’s best-known eateries was impossible to resist. The couple reached an agreement to purchase Dutch Mothers Family Restaurant in downtown Lynden from Dave and Debbie Black, effective Jan. 1—operating under the new name of Rustlers’ Front Street Grill.

The Suetzes have owned the 180-seat Rusty Wagon, located just north of Hinotes Corner at 6937 Hannegan Road, since 2000. “We used to live right behind Dutch Mothers,” said Kevin, who was born and raised in Lynden. “I’ve always wanted to do something in downtown Lynden.”

Dutch Mothers opened in 1982 at 405 Front St., with seating for approximately 300, and the Blacks acquired it in 1996. They were open for breakfast and lunch, Monday through Saturday.

Their Dutch food and décor, along with award-winning pies, made Dutch Mothers a favorite gathering place for local residents and tourists alike. Debbie ran the restaurant while Dave focused

Dave Brumbaugh

inside

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on Lynden Dutch Bakery. They sold the bakery and moved to support their son, Ross, after he launched Simple Box Storage Containers, now with locations in Lynden and Marysville.

“We’re elated to sell it to them,” Debbie said. “We wanted someone from the community, with a love for Lynden, who would gave back to the community and do more than we did.

We’ve been blessed beyond measure to serve the community for all these years, and our family is looking forward to being loyal patrons of Kevin and Belinda.”

Rustlers’ Front Street Grill will have a western-themed décor, although Kevin noted that it will be different from the Rusty Wagon. The new menu items will include street tacos, steaks, and seafood, while retaining pannekoeken (Dutch pancakes), schnitzel, and the pies that were so popular at Dutch Mothers. Also, all of the staff members have been invited to continue working there.

Other changes include adding a lounge, staying open seven days a week, and expanding hours to serve dinner, in addition to breakfast and lunch.

Randy Cross of LaserPoint Awards & Promotional Solutions displays one of the plaques he has made to honor deceased veterans.

Owner Donates Personalized Plaques to Honor Veterans

BY DAVE BRUMBAUGH

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andy Cross, co-owner of LaserPoint Awards & Promotional Solutions with wife, Kathy, enjoys his work.

He uses his creative and technical skills to engrave plaques, name badges, and more for customers of the Bellinghambased company, which has grown steadily since being founded in 1997.

But the projects that mean the most to Cross don’t bring in a single penny. He makes and donates plaques in memory of deceased veterans, working with Patriot Guard Riders, a

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JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 11

Dutch Mothers’ Transition

Dedicated To Our Veterans

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leading edge SMALL BUSINESS

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enea and Scott Molyneaux operate a business that’s punprone (groan). Begin by humming a few bars of “I Knead You Now.” They’re rolling in dough. All rise.

“I love puns about our business,” Scott said, quickly quipping, “When we finish milling about here (in this interview at their bakery), we’ll get back out front to our customers.”

You guessed it. They bake bread. Yes, literally, their bread-andbutter is bread and butter. Their list of bread varieties runs alphabet-long—Asiago Pesto, Beer, Cinnamon Chip, Dakota Seed….

And the words etched in capital letters on the front door of Great Harvest Bread Co. at 305 E. Magnolia in Bellingham capsulizes their passion and their product: “Whole Grain Headquarters, over-arched by “Flour Milled On-Site Daily.”

They buy tons of different whole grains, and they turn out upwards of 100,000 loaves of freshly baked bread and other products a year. In a 90-minute, informal conversation you get a deeply passionate portrait of Renea and Scott’s mission, methods, staff, customers, and the m-m-m-goodness of their product.

Renea & Scott They met at Great Harvest, specifically at the Dillon, Montana bakery, he the professional chef and product developer, she the long-time Great Harvest employee since during her college days.

Scott graduated from the renowned Culinary Institute of America (CIA) in Hyde Park, New York, overlooking the Hudson River—a long hop from the Wilmette suburb of Chicago, where he grew up working in kitchens.

Renea earned an undergrad degree at the University of Montana, majoring in anthropology, and she added a master’s in archaeology from the University of Idaho. So, bread? “I grew up around bread. My grandma baked bread. And, I’ve known about Great Harvest since I was a little kid,” she said. “Loved it.

In college I began working there.”

Her archaeological career began for the National Park Service and later in the private sector for a cultural resource management firm, assessing potential damage to cultural property prior to activities such as coal mining (“so that history wasn’t forgotten”).

Scott was plying his trade in restaurants, in catering, and in butcher shops, moving all around… Then their career paths, and personal stars, aligned.

Renea: “I wasn’t super satisfied, so I talked to the owner of the bakery I worked for in Missoula (during college). He mentioned possible employment at the home office in Dillon.. I joined the corporate office and became a business consultant for new Great Harvest owners. That’s when Scott and I met—started dating, and worked together several years at the bakery in Dillon.”

Scott: “Preparing food has been my life since my first job at a restaurant called Betise, at age 14…prep work, peeling potatoes.

I showed up that first Saturday at 8 a.m., the chef handed me a knife and an apron and gave me onions. I helped make the staff meal that first day—pizza. I worked there all through high school learning to cook. I knew early-on that an office job was not going to work for me and that I wanted to become a chef….”

Scott said he did “a million different things” at restaurants, lodges, catering, moving about from Chicago, to California, to Port Townsend, and then…. “I was working in Seattle for a

A Marriage Made in Leaven Renea & Scott Molyneaux of Great Harvest— and the joys of milled wheat

BY MIKE MCKENZIE

Photo by Scott Book

22 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2020

group that supports military families by attending funerals and memorial services.

For Cross, it’s his way of showing respect for U.S. veterans and support for their family members. The feeling already was inside him. His father, Richard Cross, received three Purple Hearts while serving in the Korean War, but then came the terrorist attacks on Sept. 11, 2001.

“It all changed for me on 9/11,” Randy Cross said. “I changed as a man.”

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butcher shop startup; it folded, and I was looking for the next thing there was to learn.”

His love for the outdoors had him looking to land in Vermont, Colorado, Montana, or Washington. He responded to a want ad in the CIA alumni listings for Great Harvest Bread Co. “They were looking for someone in product development. I thought, ‘I don’t know bread yet and that sounds interesting.’ And it was in Montana. Perfect. I kinda fell into it.”

Three years ago, Renea and Scott bought the Bellingham bakery—the third oldest among the 190 or so Great Harvest stores in the U.S. Pete and Laura Wakeman started the chain in Great Falls, Montana in 1976. The second store was about 225 miles west in Kalispell, and then Bellingham opened as the first outof-state Great Harvest in 1979.

The bread “Toast is the world’s most perfect food because you can top it with anything.” That’s Scott speaking to one of the reasons, as a trained gourmet chef, he settled into the world of breadmaking.

The Molyneauxs and their crew create loaves six days a week, from 4 a.m. ‘til suppertime. (Oh, yeah—their sunup rises in the yeast!) They fill racks with bread loaves by the dozens. A customer can peruse about 35 different varieties a week, sometimes more during holiday periods and when seasonal ingredients become available.

Great Harvest sells by the loaf, and gives by the slice. When you walk in, immediately someone greets you, “Would you like a slice of fresh bread?” You can lather it on the spot with butter and/or honey. “That’s one of the ways we give back to the community, a free slice of fresh bread,” Renea said.

Some of their menu breads are familiar standards—whole wheat, white, rye, sourdough, cinnamon—with many variations of them (example: Cinnamon Raisin Swirl, Cinnamon Raisin with or without walnuts, Cinnamon Chip). Some original recipes have taste-teasing names, like High Country Crunch, Organic Heirloom Spelt, Apple Pie Swirl, Dakota Seed. Seasonal examples include Pumpkin varieties, Cranberry-Orange, Mocha Whiskey Cake, Stollen, Chocolate Babka, et al. Other regulars on the shelf are buns, rolls, and cheesy garlic breadsticks.

They all center on the basics. “We’re the only bakery in the area that mills our own flour, and we’re unique in that we specialize… we’re whole-grain focused,” Scott said. “And we mill kamut, spelt, and rye, not just wheat.”

Scott explained that although the bread-making routine is not complicated—mix, knead, let it rise, bake, cool, slice it (or not) and bag it—it’s vital to pay attention to details. “The more natural the product, the better off you are,” he said. “You have to adjust to weather, time, temperature, etc. It’s not an easy craft.”

He pointed to the racks of loaves. “There’s easily more than 20 varieties of bread for sale that we made just this morning. That’s a lot. It’s labor intensive, but it’s a labor of love. There can be no more fun way to work than this.

As a foodie, he confesses to having a sweet tooth. “We’re known as a bread store,” Scott said, “but we have different kinds of cinnamon rolls (made with apple sauce), scones, cookies, and holiday

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 23

By Mike McKenzie

Small Business Profile: Love and Leavening

2020 ECOnoMIC FORECAST

Local Leaders Weigh in on Business outlook

By Sherri Huleatt

B

usiness Pulse staff asked leaders across 15 local industries to respond to the burning question: What will the 2020 Whatcom County economy look like?

The responses addressed numerous issues strongly affecting our community. Several common trends surfaced: • Expensive housing adversely affects hiring and expansion: Inadequate and expensive housing will continue to permeate the economic outlook, particularly as the average local home price is expected to be about $450,000. If workers can’t afford to move here or live here, businesses can’t hire the labor they need—especially if wages once considered “good” aren’t good enough to pay for a home.

• Inadequate workforce and the “Silver Tsunami”: With Baby Boomers retiring, the younger generations have yet to fill the retirees’ shoes in the local workforce—particularly for construction and trades work. To remedy this, local construction businesses and building organizations are creating in-house training programs to equip the next generation for trades work and entry-level construction jobs.

• Construction continues to thrive: The construction industry has a strong pipeline of projects in 2020; in particular, energy-efficient projects are on the rise.

• Increased labor costs: Labor costs continue to rise; this especially impacts agriculture, construction, and small businesses as they struggle to hire and retain skilled workers

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at a wage that’s reasonable for both parties.

• Seattle and Vancouver spillover effect: High prices to the north and south of Whatcom County could push more businesses and residents to our—relatively speaking—more- affordable and less-congested community. This is especially true for ports and maritime businesses experiencing waterfront gentrification in Seattle and Vancouver.

• Waterfront and Port expansion: With domestic travel projected to increase in 2020, Bellingham International Airport looks to expand airline routes and attract more low-cost airlines.

Likewise, the Blaine marine harbor will see muchneeded infrastructure improvements next year.

The Bellingham waterfront will get busier, as a new condo development breaks ground and businesses move into the new Granary building.

• Increased cross-border travel: While Canadian shoppers have declined since 2014, experts foresee an upward trend—positively impacting local businesses dependent upon Canadian traffic, such as retail stores, parcel services, and gas stations.

• Agricultural uncertainty: One of the longest-standing Whatcom County industries continues to see instability, due to increased labor and operational costs, unpredictable prices and harvests, and the ongoing fight for water access.

By Sherri Huleatt and Business Pulse staff

2020 Economic Forecast: Local Leaders Weigh In On Business Outlook

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publisher’s note

Positive Changes in 2020 For WBA Leadership and Local Economy TONY LARSON Publisher, Business Pulse President, Whatcom Business Alliance

H

appy New Year! As we get 2020 started, I offer my personal appreciation to Doug Thomas, CEO of Bellingham Cold Storage, who has served as chairman of the WBA Board of Directors for the last two years. Doug has been outstanding as chair.

While we’ll miss him greatly in that role, he’s still on board.

We welcome John Huntley, CEO of Mills Electric, as our new chairman. Doug will continue to lend his expertise on the Executive Committee as past chair.

A number of exciting changes lay ahead this year for the Whatcom Business Alliance. Mark your calendar for Tuesday, February 18, at 8 a.m. You’re invited to join us at the WBA annual meeting to learn all about those changes.

I think you’ll find this first issue of the year of Business Pulse interesting and insightful. We’ve reached out to hundreds of Whatcom County business and organization leaders to get a sense of how they’re feeling about their future prospects as we enter the new year.

We gathered information from them in several ways. First, we sent our annual business optimism survey out to a few thousand Whatcom County business leaders to get their feedback regarding their sales growth, profits, staffing, and capital purchases in 2019 relative to 2018.

We also asked them to share their expectations for 2020.

We’ve found that expectations can serve as an important and accurate economic indicator. You can dive into the results of the survey in this issue and see how it

compares to your own expectations.

In addition, we feature comments regarding national economic trends and policy issues that might impact your business— comments that came from the presentations at our annual Economic Forecast breakfast in November. The general perspective coming from our prominent speakers was that the optimism reflected in our local survey is consistent with expectations in the state and the nation.

Also in this issue we’ve asked local experts representing a cross section of industries to provide their perspective regarding trends and things we should be looking for in their respective industries as we begin 2020.

Laurie Trautman, Director of the Border Policy Research Institute at Western Washington University, discusses cross-border trade. Jane Carten, President and CEO of Saturna Capital in Bellingham, discusses the financial markets and what we can expect as we enter the presidential election year. Charles Prosper, the new Chief Executive of PeaceHealth Northwest, discusses the trends in healthcare. Sunil Harman, Director of Aviation at the Bellingham International Airport, shares some trends that may raise some concern.

Local dairy farmer Rich Appel, who’s President of Whatcom Family Farmers, shares how milk prices could breath life into a struggling industry, and some trends associated with our local raspberry crop.

Michael Gan, Interim Executive Director of the Technology Alliance Group NW, shares some trends in technology that

8 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2020

includer artificial intelligence, privacy, identity, social media, and cybersecurity.

Port of Bellingham Commissioner Ken Bell comments on some of the major initiatives that the Port will undertake in 2020.

Lance Calloway, the Northern District Manager for Associated General Contractors of Washington, provides insight relating to commercial construction, while Jacquelyn Styrna, Government Affairs Director for the Building Industry Association of Whatcom County, talks about the opportunities and challenges for home builders. Sandy Ward, CEO of the Bellingham Whatcom County Tourism provides us with the tourism numbers and emerging opportunities locally. CJ Seitz, Director of Western Washington University’s Small Business Development Center talks about trends important to local small businesses, and Sustainable Connections Executive Director Derek Long shares the three major issues he believes we’re facing throughout Whatcom County in 2020.

Teresa Taylor, Project Manager at the Office of Economic Policy for the Lummi Indian Business Council (LIBC), talks about the projects the LIBC has in the pipeline in 2020. And finally, Pete Granger, President of the Whatcom Working Waterfront Coalition, shares how they are engaging with the Port of Bellingham to preserve and expand marine trades in Blaine and Bellingham this year.

What a way to get 2020 started. Enjoy the issue!

—Tony Larson

We’re in this together.

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If you and your business do not participate in the shaping of public policy, you will be governed by those who do.

The WBA Policy Center was created to be the eyes, ears, and voice for Whatcom County businesses. There are thousands of rules and regulations being created at the federal, state, and local levels that may harm local business.

The WBA Policy Center provides both influence and credibility in the community by engaging in fact-based research, education, communication, and advocacy for its members on issues important to business. It also works proactively to advance policy issues that support business success, while advocating against those harmful to local business.

We hope you will consider supporting the WBA Policy Center — there is strength in numbers and your support will have an impact.

Be Informed...Get Engaged...Make a Difference!

How You Can Help • Contact us about issues that may be impacting your business or industry at wbapolicycenter.org/about-contact/.

• Become part of the solution by making your contribution to the WBA Policy Center’s Step Up Fund.

Your support makes it possible for WBA to proactively engage on issues on your behalf before they negatively impact your business.

START TODAY! Support the WBA Policy Center with a contribution at www.wbapolicycenter.org.

leading edge NEWSMAKERS • NUMBERS • OUT AND ABOUT PHILANTHROPY • MARKETING • SMALL BUSINESS • GUEST COLUMNS

From left, Kevin and Belinda Seutz and Debbie and Dave Black.

Dutch Mothers Now Rustlers’

R

unning one successful Lynden restaurant has kept Kevin and Belinda Seutz plenty busy for nearly two decades, but the opportunity to buy one of that community’s best-known eateries was impossible to resist. The couple reached an agreement to purchase Dutch Mothers Family Restaurant in downtown Lynden from Dave and Debbie Black, effective Jan. 1—operating under the new name of Rustlers’ Front Street Grill.

The Suetzes have owned the 180-seat Rusty Wagon, located just north of Hinotes Corner at 6937 Hannegan Road, since 2000. “We used to live right behind Dutch Mothers,” said Kevin, who was born and raised in Lynden. “I’ve always wanted to do something in downtown Lynden.”

Dutch Mothers opened in 1982 at 405 Front St., with seating for approximately 300, and the Blacks acquired it in 1996. They were open for breakfast and lunch, Monday through Saturday.

Their Dutch food and décor, along with award-winning pies, made Dutch Mothers a favorite gathering place for local residents and tourists alike. Debbie ran the restaurant while Dave focused

on Lynden Dutch Bakery. They sold the bakery and moved to support their son, Ross, after he launched Simple Box Storage Containers, now with locations in Lynden and Marysville.

“We’re elated to sell it to them,” Debbie said. “We wanted someone from the community, with a love for Lynden, who would gave back to the community and do more than we did.

We’ve been blessed beyond measure to serve the community for all these years, and our family is looking forward to being loyal patrons of Kevin and Belinda.”

Rustlers’ Front Street Grill will have a western-themed décor, although Kevin noted that it will be different from the Rusty Wagon. The new menu items will include street tacos, steaks, and seafood, while retaining pannekoeken (Dutch pancakes), schnitzel, and the pies that were so popular at Dutch Mothers. Also, all of the staff members have been invited to continue working there.

Other changes include adding a lounge, staying open seven days a week, and expanding hours to serve dinner, in addition to breakfast and lunch.

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 11

leading edge NEWSMAKERS

People On the Move...

Joyce

Newman

Ryan

Unity Care NW (UCNW) has chosen Jodi Joyce as its next Chief Executive Officer. Joyce moves to the new position from the University of Illinois Hospital & Clinics, where she was an Associate Vice Chancellor for Quality and Patient Safety.

She will succeed Desmond Skubi, the current CEO, the end of January.

“After a thorough and a comprehensive search process, which involved multiple community partners and staff, the Board is pleased to have found the best individual to assume leadership of this growing organization,” said Mel De Jong, UCNW Board Chair. “Jodi has a proven track record and has helped transform healthcare across the country. This, combined with her deep knowledge of health care and a nursing background, makes Jody uniquely qualified to lead UCNW successfully into the future.”

“Jodi was the best choice from a deep pool of interested and highly qualified candidates,” said Chris Phillips, a community member of UCNW’s CEO Recruitment Committee. “She is a successful and transformative health systems executive.

More importantly, she will be a good fit for UCNW and Whatcom County. We are delighted she has accepted the position.”

Ted Newman and Aretha Ryan, two experienced financial advisors with local ties, recently joined Salish Wealth Management (SWM) in Bellingham as Vice Presidents.

Newman graduated from the University of Washington with a degree in Finance and Economics and has 24 years of experience as a financial advisor. Ryan has a similar degree from Western Washington University and been a financial advisor 17 years.

Marks

Nygren

SWM President Scott Hume said, “With a combined 64 years of experience among Ted, Aretha, and myself, our knowledge and strengths create a skilled team focused on serving our clients and fostering longterm relationships.”

SWM provides investment management, financial and retirement planning, estate planning, life insurance and longterm-care insurance.

Two longtime Community Food Co-op employees have been promoted to StoreManager positions.

Wynne Marks has been named Manager of the Community Food Co-Op’s flagship store in downtown Bellingham, and Donna Nygren Manager of the Cordata neighborhood store.

Marks has worked at the Co-op for 20 years, most recently as Manager of the Cordata store. Marks said, “It’s extremely satisfying working with the Cordata store team and being part of its growth from opening day in 2009 to the well-established neighborhood store it has become. Although I’ll miss Cordata, I’m excited to return to the downtown store, which is not only an awesome grocery story, but also a community hub that is loved by all.”

Nygren has worked at the Co-op for more than 25 years, most recently as Deli Manager at the Cordata store since 2012. Nygren said, “I’m excited to step into a new leadership position at Cordata. Our hard-working, dedicated staff pretty much ensures a continued bright future for the store.”

The Co-op, established in 1970, is Whatcom County’s only community-owned grocer, with the two stores and a bakery cafe. It features certified

12 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2020

Bryson

Oliver

organic produce departments, as well as deli, meat, and seafood departments.

City of Bellingham Parks and Recreation Director Leslie Bryson retired January 3. She has been employed by the city since 1994, when she was hired as the first Parks Development Manager.

Since then, Bryson has implemented a variety of park projects, including the South Bay, Railroad, Interurban, and Whatcom Creek Trails and Taylor Dock, as well as acquiring properties that preserve many of Bellingham’s unique qualities. Bryson was also instrumental in adding parks and trails in the Cordata neighborhood and in development of the award-winning downtown waterfront park known as Waypoint Park.

“My tenure with the City has been a rewarding experience, working with a community that places such a high value on parks and recreation and with a dedicated, talented staff who love what they do,” Bryson said. “Together we have opened 12 new parks, built 20 miles of trails, preserved an additional 850 acres of open space areas and acquired the 2,200-acre recreation and conservation easements on Galbraith Mountain. Finishing my final four years with the City as Parks and Recreation Director has been the capstone of my 42-year career in local government.”

Mayor Kelli Linville said, “The City of Bellingham and its residents were wellserved by Leslie’s tenure as Parks Director.

“The community loves our parks, and Leslie had the passion and commitment to make sure that it had access to parks, trails, and recreational programs. We will miss her. I’m pleased to appoint Nicole Oliver as Interim Director. I’ve worked with Nicole in many city capacities, and

she always has put the community’s interests first. I believe she will be a good choice to continue what Leslie has begun.”

As a City of Bellingham employee for more than 20 years, Oliver is an accomplished project manager, supervisor, and strategic planner who worked in several other departments before joining the Parks and Recreation Department in July 2016 as Development Manager. From 2015 to 2018, she served on the Whatcom County Planning Commission and was elected Chair for three of those years.

Oliver has lived in Washington state most of her life. She graduated from the University of Washington with a degree in English and earned a Master of Arts degree in Political Science and Environmental Studies from Western Washington University.

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Record Turkey Donations

Snapper Shuler Kenner Insurance’s (SSKI) eighth-annual turkey drive in November received enough donations to give 384 turkeys—weighing nearly 2.5 tons—to two Whatcom County food banks. The turkey total smashed the drive’s previous record of 247.

The public donated $3,910, and Lynden-based SSKI matched the first $1,500 contributed and also donated time and vehicles to deliver the turkeys to the Bellingham- and Lynden-based Project Hope food banks.

“We were overwhelmed by the community’s generosity this year, and the food banks were so grateful,” said Bobbi Green, a 28-year SSKI employee who headed the drive. “All of us thank the donors who made it possible to help so many families at Thanksgiving.”

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 13

leading edge NUMBERS

Whatcom County Economic Forecast

47.37%

Findings from the Whatcom Business Alliance 2019 Economic Forecast survey

83.34% 68.42% Expect an increase in profitability 5%+ over 2019

Charaterize the national and local economic strength as stong over the past 12 months

Believe local elections have a signifcant impact on the success of their business

63.16% 31.58%

Have found it more difficult to find qualified people in the last 12 months

Feel their new employees need training

For more information on the WBA Economic Forecast survey see P. 40

14 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2020

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leading edge OUT AND ABOUT

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Whatcom Hospice Foundation raised a record $463,000 through its “Light the Night in a Winter Wonderland” Gala Auction, held at Four Points by Sheraton on Nov. 9. Proceeds support terminally ill people and their families in our community.

Photos: 1. Auction Co-Chairs were Tammy Yorkston, Yorkston Oil Co., Inc. and Lesa Ferguson, Country Financial. 2. Auction Committee members Erin Baumgart, ARNP, PeaceHealth Center for Senior Health; Sylvia Holmstrom; Lynne Baron; Pattie Washburn, PeaceHealth Human Resources. 3. Welcome Sponsor Phillips 66, Brandi Civico (front, center) and guests. 4. The Dessert Dash raised an incredible $40,430! 5. Sydney and Troy Markus, DO, PeaceHealth Emergency Medicine with Anne Rasmussen, Chief Development Officer, Whatcom Hospice Foundation and PeaceHealth St. Joseph Medical Center Foundation (right). 6. Troy Wills, First Federal with Lynn Giuliani. 7. Ravinder and Gurpreet Dhillon, PeaceHealth Director of Service Lines: Cancer, Palliative and Hospice Care.

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leading edge PHILANTHROPY

Randy Cross of LaserPoint Awards & Promotional Solutions displays one of the plaques he has made to honor deceased veterans.

Owner Donates Personalized Plaques to Honor Veterans

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BY DAVE BRUMBAUGH

andy Cross, co-owner of LaserPoint Awards & Promotional Solutions with wife, Kathy, enjoys his work.

He uses his creative and technical skills to engrave plaques, name badges, and more for customers of the Bellinghambased company, which has grown steadily since being founded in 1997.

But the projects that mean the most to Cross don’t bring in a single penny. He makes and donates plaques in memory of deceased veterans, working with Patriot Guard Riders, a

group that supports military families by attending funerals and memorial services.

For Cross, it’s his way of showing respect for U.S. veterans and support for their family members. The feeling already was inside him. His father, Richard Cross, received three Purple Hearts while serving in the Korean War, but then came the terrorist attacks on Sept. 11, 2001.

“It all changed for me on 9/11,” Randy Cross said. “I changed as a man.”

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Cross was introduced to Patriot Guard Riders when they arrived at a memorial service for his stepfather and gave the family a plaque in his honor.

Cross realized he had found an outlet for his respect of veterans and knew that he could create even more memorable plaques for families with his high-tech laser engraving machine.

His plaques typically include a veteran’s name, rank, and service branch logo, plus the following message: “On behalf of a grateful America and Patriot Guard Riders, please accept our condolences on your tragic loss.” They are hand-delivered to the family at the memorial service.

Dean Thiem, a member of the Patriot Guard Riders who often contacts Cross to ask for plaques, sent him the following note after one of the services: “The funeral director for the Fink service was brought to tears when she saw the plaque you made for PO3 Fink. The presentation to the mother and father brought gasps and many tears from the whole family.”

Since 2018, Cross has made about 70 plaques for Patriot Guard Riders to give to families. He also donates plaques to others who serve our country, including the Pearl Harbor Survivors’ Association.

Randy and Kathy Cross founded LaserPoint Awards & Promotions in 1997. Their services now include embroidery, screen printing, imprinted products, engraving, and more. The company earned recognition as 1997 Startup Business of the Year by Business Pulse and as 2016 Small Business of the Year by the Bellingham Regional Chamber of Commerce.

But no award can mean as much to them as the gratitude shown by families of veterans who passed away. Sabrina Brown of Patriot Guard Riders shared these observations after one funeral: “Randy, I’ve told you before what an effect your plaques have on the families.

This time it was even more so. When Erik handed over the plaque, you could hear everyone within two rows just gasp.

The lady who received it, Julia, was just so overwhelmed and couldn’t say ‘thank you’ enough.”

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JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 19

leading edge MARKETING

No More Likes?

Instagram tests a Like-less platform: What it means for your brand

BY SHERRI HULEATT

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ocial media thrives on public displays of affirmation.

A social-media post is designed, after all, to get as many publicly showcased Likes, Shares, and Comments as possible— not only so your brand can affirm it’s liked, but also so you can proudly display just how liked you are.

It’s this second part—displaying Like counts—that’s an integral piece of the social media “bandwagon effect,” a type of cognitive bias that strongly motivates people to conform to what others are doing.

If, for example, a social media post receives a lot of Likes, other users will take notice and, out of fear of exclusion, pressure to conform, and basic human curiosity, they’re more inclined to Like the post.

But this type of online social pressure all could change soon, as both Facebook and Instagram have rolled out Like-less platform tests. Users still can Like posts, but the total Like counts and video views aren’t seen publicly; only the person or brand that posted the content can see total Likes and views.

Instagram launched the original test in seven countries in Summer 2019, and then expanded to parts of the U.S. in November

2019. Shortly after, Facebook (which owns Instagram) followed suit, implementing the same test in Australia in September 2019.

Why the change?

For Instagram, the reasons are twofold: • To depressurize the platform for mental-health reasons, particularly for young people who are more sensitive to online pressure and validation; and • To inspire higher-quality content that focuses less on easy-tocapture Likes (that can also be falsely-inflated with purchased Likes and/or bots that increase Like counts). Now, the emphasis shifts to more high-quality engagement, such as Comments, Shares, and link click-throughs.

How does this impact your brand?

Like count is an easy way for users to decide whether a post is worth their time. Without a Like count, users may be less likely to think a post is relevant or interesting and, therefore, may be less likely to engage with it.

According to recent studies by social media brands HypeAuditor

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and #paid, social-media influencers saw a marked decline in Likes after the test launched.

This poses several problems for brands.

They might see a decline in Likes which might impact how their content is prioritized by Instagram’s algorithm. Typically, the less engagement a post gets, the more likely it is to be deprioritized, therefore, not shown in users’ News Feeds.

Second, fledgling brands might find it difficult to reach new people. For example, if you’re a new business trying to get attention, without a Like count, other users may question the validity and quality of your brand—you’ll lose the bandwagon effect that has been at the core of social media since its inception.

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What can you do about it?

Likes are sometimes referred to as “vanity metrics”—that is, metrics that look nice, but don’t really count for anything.

Higher quality interactions, like commenting, following, clicking a link, and sharing, will become increasingly important to brands.

To keep engagement high, your brand should experiment with Instagram “stories,” which have never featured Like or view counts, yet they get prioritized at the top of users’ News Feeds and receive strong engagement. According to Instagram, one-third of the most-viewed stories are posted by businesses and one in five stories garner a direct message from viewers.

Likewise, you should focus your social media posts on quality rather than quantity; share posts that attract comments (such as asking questions) and shares. To begin, look back at your brand’s social media metrics to see what types of posts gained the most Comments and Shares, then experiment with similar posts to increase engagement.

Will the future be Like-less?

That’s yet to be determined. Neither Facebook nor Instagram has said what will deem this test a success or a failure, or how long the test will run.

You still have plenty of metrics you can track, though, and a strong foundation of other posts to experiment with—whether you Like it or not.

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 21

leading edge SMALL BUSINESS

A Marriage Made in Leaven Renea & Scott Molyneaux of Great Harvest— and the joys of milled wheat

BY MIKE MCKENZIE

Photo by Scott Book

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enea and Scott Molyneaux operate a business that’s punprone (groan). Begin by humming a few bars of “I Knead You Now.” They’re rolling in dough. All rise.

“I love puns about our business,” Scott said, quickly quipping, “When we finish milling about here (in this interview at their bakery), we’ll get back out front to our customers.”

You guessed it. They bake bread. Yes, literally, their bread-andbutter is bread and butter. Their list of bread varieties runs alphabet-long—Asiago Pesto, Beer, Cinnamon Chip, Dakota Seed….

And the words etched in capital letters on the front door of Great Harvest Bread Co. at 305 E. Magnolia in Bellingham capsulizes their passion and their product: “Whole Grain Headquarters, over-arched by “Flour Milled On-Site Daily.”

They buy tons of different whole grains, and they turn out upwards of 100,000 loaves of freshly baked bread and other products a year. In a 90-minute, informal conversation you get a deeply passionate portrait of Renea and Scott’s mission, methods, staff, customers, and the m-m-m-goodness of their product.

Renea & Scott They met at Great Harvest, specifically at the Dillon, Montana bakery, he the professional chef and product developer, she the long-time Great Harvest employee since during her college days.

Scott graduated from the renowned Culinary Institute of America (CIA) in Hyde Park, New York, overlooking the Hudson River—a long hop from the Wilmette suburb of Chicago, where he grew up working in kitchens.

Renea earned an undergrad degree at the University of Montana, majoring in anthropology, and she added a master’s in archaeology from the University of Idaho. So, bread? “I grew up around bread. My grandma baked bread. And, I’ve known about Great Harvest since I was a little kid,” she said. “Loved it.

In college I began working there.”

Her archaeological career began for the National Park Service and later in the private sector for a cultural resource management firm, assessing potential damage to cultural property prior to activities such as coal mining (“so that history wasn’t forgotten”).

Scott was plying his trade in restaurants, in catering, and in butcher shops, moving all around… Then their career paths, and personal stars, aligned.

Renea: “I wasn’t super satisfied, so I talked to the owner of the bakery I worked for in Missoula (during college). He mentioned possible employment at the home office in Dillon.. I joined the corporate office and became a business consultant for new Great Harvest owners. That’s when Scott and I met—started dating, and worked together several years at the bakery in Dillon.”

Scott: “Preparing food has been my life since my first job at a restaurant called Betise, at age 14…prep work, peeling potatoes.

I showed up that first Saturday at 8 a.m., the chef handed me a knife and an apron and gave me onions. I helped make the staff meal that first day—pizza. I worked there all through high school learning to cook. I knew early-on that an office job was not going to work for me and that I wanted to become a chef….”

Scott said he did “a million different things” at restaurants, lodges, catering, moving about from Chicago, to California, to Port Townsend, and then…. “I was working in Seattle for a

butcher shop startup; it folded, and I was looking for the next thing there was to learn.”

His love for the outdoors had him looking to land in Vermont, Colorado, Montana, or Washington. He responded to a want ad in the CIA alumni listings for Great Harvest Bread Co. “They were looking for someone in product development. I thought, ‘I don’t know bread yet and that sounds interesting.’ And it was in Montana. Perfect. I kinda fell into it.”

Three years ago, Renea and Scott bought the Bellingham bakery—the third oldest among the 190 or so Great Harvest stores in the U.S. Pete and Laura Wakeman started the chain in Great Falls, Montana in 1976. The second store was about 225 miles west in Kalispell, and then Bellingham opened as the first outof-state Great Harvest in 1979.

The bread “Toast is the world’s most perfect food because you can top it with anything.” That’s Scott speaking to one of the reasons, as a trained gourmet chef, he settled into the world of breadmaking.

The Molyneauxs and their crew create loaves six days a week, from 4 a.m. ‘til suppertime. (Oh, yeah—their sunup rises in the yeast!) They fill racks with bread loaves by the dozens. A customer can peruse about 35 different varieties a week, sometimes more during holiday periods and when seasonal ingredients become available.

Great Harvest sells by the loaf, and gives by the slice. When you walk in, immediately someone greets you, “Would you like a slice of fresh bread?” You can lather it on the spot with butter and/or honey. “That’s one of the ways we give back to the community, a free slice of fresh bread,” Renea said.

Some of their menu breads are familiar standards—whole wheat, white, rye, sourdough, cinnamon—with many variations of them (example: Cinnamon Raisin Swirl, Cinnamon Raisin with or without walnuts, Cinnamon Chip). Some original recipes have taste-teasing names, like High Country Crunch, Organic Heirloom Spelt, Apple Pie Swirl, Dakota Seed. Seasonal examples include Pumpkin varieties, Cranberry-Orange, Mocha Whiskey Cake, Stollen, Chocolate Babka, et al. Other regulars on the shelf are buns, rolls, and cheesy garlic breadsticks.

They all center on the basics. “We’re the only bakery in the area that mills our own flour, and we’re unique in that we specialize… we’re whole-grain focused,” Scott said. “And we mill kamut, spelt, and rye, not just wheat.”

Scott explained that although the bread-making routine is not complicated—mix, knead, let it rise, bake, cool, slice it (or not) and bag it—it’s vital to pay attention to details. “The more natural the product, the better off you are,” he said. “You have to adjust to weather, time, temperature, etc. It’s not an easy craft.”

He pointed to the racks of loaves. “There’s easily more than 20 varieties of bread for sale that we made just this morning. That’s a lot. It’s labor intensive, but it’s a labor of love. There can be no more fun way to work than this.

As a foodie, he confesses to having a sweet tooth. “We’re known as a bread store,” Scott said, “but we have different kinds of cinnamon rolls (made with apple sauce), scones, cookies, and holiday

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 23

Mike McKenzie

“We’re the only bakery in the area that mills our own flour, and we’re unique in that we specialize…we’re whole-grain focused. And we mill kamut, spelt, and rye, not just wheat.”

—Scott Molyneaux, Great Harvest of Bellingham specialties.” Plus, there’s house-made granola, pancake mix, scone mix, cookie dough, crackers, biscotti, and every Monday-throughFriday you can get a bowl of Scott’s original-recipe soup with a slice of bread. “I have a passion for that type of stuff,” Scott said.

Their bread runs costlier than that on shelves at grocery stores.

One bottom-line reason is that each Great Harvest loaf weighs a kilo (2 lbs., 3 oz.); most grocery bread is a pound. Another: added ingredients. In the menu displayed online, you’ll find about 20 different things enhancing the basic breads—seeds, berries, nuts, fruits, cheeses, and more.

Here’s the artisan chef speaking to grocery store bread: “It’s convenient and cheaper, but airy and light, and you don’t know how long it’s been sitting around—possibly months. Meanwhile, we’re taking a whole-wheat berry, milling it into a warm, aromatic flour, and turning it into a kilo of fresh bread within 20 hours. We’d like more people to know that difference.”

The operations Renea also works elbow-deep in mixing, kneading, and prepping goods for the oven. But mainly she’s the day-to-day taskmaster, drawing on her management, training, and business experiences before and since days of Great Harvest.

“Both of us are capable in all aspects of the business,” Renea said. “For instance, I’m on the production table every day, and manage it on Mondays. And, Scott works the front counter a lot.

Basically, though, Scott runs the baker team, orders all the ingredients, comes up with all the recipes, figures out how to make all these things, and I run the business side of things.”

They have two full-time employees, and 7-8 part-time. Three among them work primarily in bread-making. The routine, Renea said, “…is crazy insane, bowl after bowl after bowl.”

Customers drive their business philosophy, beginning with what you hear immediately upon entering the cozy setting: “Would you like a slice of fresh bread?”

Renea said, “The bread board is probably the most important item in our store. A gift. No strings attached. No obligations. You don’t have to buy anything.”

It does two things, Scott said: One, it’s an icebreaker. “Come eat, and then we’ll talk.”

Two, it allows people to taste the product and then figure out what they want. “It’s not just a small sample, either,” Renea said.

“It’s an inch-thick slice of bread.”

Scott loves to engage customers in talk about baking and the difficulty of creating a baking environment for bread at home.

“Bread doesn’t like to be made in that small of a quantity,” he tells a customer. “We can make small batches from one ball of dough in an environment it can rise and grow in, 20-30-40 loaves from one ball.

A large sign across from the bread counter displays the mission statement. “It’s in front of our employees all day,” Renea said. At

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the heart of it: “Generosity and kindness are a huge part of our business. We have several ways of contributing to the community. The small things we can do, a little giving back, go a long way,” Renea said.

Another staple is having fun. “We didn’t buy this business to have a stuffy place to work every day, where you feel you have to be here,” Scott said. “We created a fun, cool place for employees and us to hang out.”

Renea chimed in, “Customers, too. It has to feel good for anybody who walks through the door, and our crew has a chance to bring more kindness in this world.

“Also, our team is very important to us. If I’ve learned one thing, it’s that you can’t do anything by yourself; you must empower and help the team feel invaluable. We’re labor-intensive. We would be lost without them.”

The brand Great Harvest of Bellingham operates totally independently. “We’re a collective of owners,” Scott said, “who support each other, share ideas. But nobody calls us and checks in, tells us what color the floors or walls will be, what prices to charge, etc. We can do anything we want to. None of the stores looks alike or has the same menu.”

Some standard bread varieties are common at every Great Harvest, like white, whole wheat, and sourdough. Another example is a Great Harvest dessert classic, the fruit-smothered Savannah Bar, named after a long-ago franchise owner’s granddaughter.

About 85% of the Bellingham business is retail, with the other 15% comprising wholesale customers such as Boundary Bay Brewery, Horseshoe Cafe, Bayou on Bay, Twin Sisters, Big Stick Barbeque, and Old Town Café (their oldest customer).

Scott described their operation as “a treasure to Bellingham…and we’re tasked with preserving it at the moment. It’s so important to the people who shop here.

Some have been customers ever since the first owners.” (Renea and Scott became the third set of owners; the previous two had the store about 20 years each.)

Scott summed up their experience in one word. “It’s been,” he said of their venture, three years in, “amazing.”

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 25

leading edge GUEST COLUMN

Taking a Deeper Look At Your Business Drivers

BY ASCHE RIDER

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WWU Small Business Development Center

he minimum wage in Washington State increased by $1.50, to $13.50 per hour, on Jan. 1. It has been phased upward from $11 per hour in 2017 as part of initiative 1433, approved by voters in 2016. It will continue to increase on an annual basis, based on the Consumer Price Index. For many businesses, that may mean an eye-catching increase in labor costs.

The first step is to check on the fundamentals of the business.

Specifically, look at the relationship among cost, volume, and price. Think about things like: What does it cost to produce our product or service? How much do you sell? What do you charge?

Then, think about whether any of these components can be changed. Using financial statements to calculate the actual numbers for all of these items is highly encouraged:

working level, or is quite a bit of working capital parked on the shelves gathering dust? Is the business profitable every hour it’s open? Consider reducing open hours if not.

• Increase Efficiency—Think LEAN principles and Standard Operating Procedures. Is everyone doing everything the same way, and is it the most effective method?

• Price adjustments—How much does each product or service need to sell for? How much do gross sales need to increase based on the business’s cost of goods sold, additional variable costs, and fixed expenses?

• Innovate with the business model—Is there an option to be subscription or membership based? How can customers be offered great quality and value in a new way?

• Cost: Can expenses be reduced without compromising quality or service?

• Volume: Can sales realistically increase, or can more product be produced more efficiently?

• Price: How is the business positioned relative to the rest of the market? If price adjustments are made, will it tangibly impact the number of purchases made in a day?

Consider inviting employee input for ideas on how to make positive changes for the business, especially in operations.

Asking employees how they might be able to save five minutes a week can result in unexpected and fruitful options to consider.

Every business is unique, so proactive steps will be different for everyone. You will also want to be intentional about how much you communicate with employees and customers about any changes that need to be made to maintain a healthy business.

In addition to maintaining a finely tuned business, keep in mind that what makes your product or service a must-have staple or a great experience. Consumers vote with their dollars, based on the price, quality of products, and the service they experience.

With analysis, planning, and action generated by a sound understanding of fundamentals, a business can prepare itself to thrive in our vibrant local business community for years to come.

Further, think through what levers are available in the business to make adjustments. It may be adjusting one of the items below, it could be all of them, or something in-between: • Sell more—Is market share maximized? If not, can more realistically be sold? Can production increase to support increased sales?

• Reduce Expenses—Does a different supplier offer a similar product for a lower price? Is inventory held at a reasonable

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leading edge GUEST COLUMN

It’s the Young Who Get Hurt By the High Minimum Wage

BY PAUL GUPPY Washington Policy Center On Jan. 1, Washington state’s mandatory minimum wage rose to $13.50. That means it is illegal for anyone over the age of 15 to work for $13.49 or less, even if he or she wants to. For many young workers, there is a wage that is lower than the state minimum—that wage is zero. Yet for many people, these idled workers remain voiceless and invisible.

State officials admit that the high minimum wage hurts young people, because they already allow a lower wage for anyone under 16. Why? Because it’s clear that the time and labor of a 14or 15-year-old, no matter how conscientious and hard-working, is unlikely to be worth $13.50 an hour.

The same truth applies to many people over age 15; they do not yet have the skill, training, or experience to earn a higher wage. So they remain unemployed, because under the state’s harsh minimum-wage law, young and low-skilled people are not allowed to find work in the first place. The government has priced them out of the labor market.

This is not just an opinion. Economic research shows a high minimum wage has the greatest negative effect on people with low skills, such as teen workers and immigrants. A University of Washington study shows that Seattle would have 5,000 more jobs, mostly for youth, if it did not impose a high minimum wage. The study notes: “…if they [employers] are going to be paying as much as they have to pay, they are not taking a chance on a teenager, they are looking for a more experienced worker to fill that job.”

Among states, Washington consistently ranks among the highest in youth unemployment. Our unemployment rate for teen workers is 20%, more than four times higher than the general rate of 4 %. It’s obvious that high mandated wages kill jobs for youth.

Some people say the minimum wage should support a family of four. This is a false idea of what “minimum” means. The policy is based on the wages of one person. Research shows most minimum-wage workers are young, work part time, have never been married, and live at home. And most minimum-wage earners provide the second or third income in a household making more than $50,000 a year.

The Federal Bureau of Labor says only 3% of hourly workers make the minimum wage, and half of these workers are under age 25. Clearly, raising the minimum wage means more young people will remain jobless.

In some rural and urban communities, the high minimum wage increases poverty, because it kills job opportunities for low-income people, making it more likely they will stay poor.

Lawmakers should soften the law and allow a starter training wage. As young people gain experience, they generally earn a raise or move on to a higher-paying job. They also learn important character lessons that lead to lifetime success: how to be punctual; how to have a positive attitude; how to follow directions; how to be part of a team; and how to take pride in the shared success of the workplace.

Many people feel it’s generous when the government makes employers pay more, but, in fact, the workers who are hurt remain invisible. They choose not to see the teenager who can’t gain real-world skills, the newly arrived immigrant who is shut out, or the young graduate who can’t find a job. It’s time to shake up this smug attitude and realize that raising the cost of creating a job has a real downside.

Paul Guppy is Vice President for Research at the Washington Policy Center.

28 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2020

“WECU isn’t just where we bank. They are a business and community partner.”

Adrienne Renz, General Manager at Community Food Co-op WECU Business Member

wecu.com | 800-525-8703 Local Understands Local

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2020 ECOnoMIC FORECAST

Local Leaders Weigh in on Business outlook

By Sherri Huleatt and Business Pulse staff

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usiness Pulse staff asked leaders across 15 local industries to respond to the burning question: What will the 2020 Whatcom County economy look like?

The responses addressed numerous issues strongly affecting our community. Several common trends surfaced: • Expensive housing adversely affects hiring and expansion: Inadequate and expensive housing will continue to permeate the economic outlook, particularly as the average local home price is expected to be about $450,000. If workers can’t afford to move here or live here, businesses can’t hire the labor they need—especially if wages once considered “good” aren’t good enough to pay for a home.

• Inadequate workforce and the “Silver Tsunami”: With Baby Boomers retiring, the younger generations have yet to fill the retirees’ shoes in the local workforce—particularly for construction and trades work. To remedy this, local construction businesses and building organizations are creating in-house training programs to equip the next generation for trades work and entry-level construction jobs.

• Construction continues to thrive: The construction industry has a strong pipeline of projects in 2020; in particular, energy-efficient projects are on the rise.

• Increased labor costs: Labor costs continue to rise; this especially impacts agriculture, construction, and small businesses as they struggle to hire and retain skilled workers

at a wage that’s reasonable for both parties.

• Seattle and Vancouver spillover effect: High prices to the north and south of Whatcom County could push more businesses and residents to our—relatively speaking—more- affordable and less-congested community. This is especially true for ports and maritime businesses experiencing waterfront gentrification in Seattle and Vancouver.

• Waterfront and Port expansion: With domestic travel projected to increase in 2020, Bellingham International Airport looks to expand airline routes and attract more low-cost airlines.

Likewise, the Blaine marine harbor will see muchneeded infrastructure improvements next year.

The Bellingham waterfront will get busier, as a new condo development breaks ground and businesses move into the new Granary building.

• Increased cross-border travel: While Canadian shoppers have declined since 2014, experts foresee an upward trend—positively impacting local businesses dependent upon Canadian traffic, such as retail stores, parcel services, and gas stations.

• Agricultural uncertainty: One of the longest-standing Whatcom County industries continues to see instability, due to increased labor and operational costs, unpredictable prices and harvests, and the ongoing fight for water access.

Cross-Border Trade Laurie Trautman, Director, Border Policy Research Institute, Western Washington University The last several years have been rocky for cross-border trade, business, and travel between the U.S. and Canada. Uncertainty around the NAFTA renegotiations, new tariffs (and counter tariffs), and a weak Canadian dollar all have impacted our economy.

Washington is the most trade-dependent state in the nation, and the trade war with China has had major impacts. Agricultural exports have declined by 24% due to Chinese tariffs. The effects of this unpredictable business climate and trade negotiations could lead to instability in 2020.

Finance Jane Carten, President and CEO, Saturna Capital The financial markets will see increasing volatility leading up to the presidential election, but this is temporary; investors should focus on staying invested for the long run and riding out the storm.

I believe President Trump will create a trade deal with China when it becomes necessary to create a market boost or floor. The economic areas most damaged should rebound nicely after the deal is finalized.

All signs point to interest rates remaining low. Consumers

Healthcare Charles Prosper, Chief Executive, PeaceHealth Northwest A shift continues in the way our patients experience healthcare. Improvements in healthcare technology often require less procedural and recovery time in a hospital and/or can be conducted entirely outside hospital walls in physician offices or other outpatient settings.

Also, there’s growing recognition of the valuable role our medical and non-medical community partners play in overall community health. From partners in housing and food distribution

Port / Aviation Sunil Harman, Director of Aviation, Bellingham International Airport The Bellingham International Airport (BLI) is well positioned to accommodate commercial airline demand over the next 20 years. Given its extremely low operating and capital costs, and high yield to airlines, BLI is increasingly drawing interest from legacy and low-cost airlines (especially since other regional airports are likely to increase prices to help fund upgrades).

Passenger and cargo demand at BLI is expected to remain steady. The Port of Bellingham also continues to

Although there were fewer Canadian shoppers last year, a precipitous drop that began in 2014 has stabilized. We seem to be on an upward trend for cross-border travel that bodes well for businesses benefiting from Canadian shoppers, including retail outlets, parcel services, and gas stations. This trend is likely to continue, barring an unforeseen impact on the exchange rate.

Overall, the strong real-estate market, low unemployment rate, and emerging momentum of the Cascadia Innovation Corridor have contributed to a positive 2020 outlook. If the stars align, we may see substantial spillover effects from the bloated markets in Seattle and Vancouver, as businesses seek expansion opportunities and residents seek a reprieve from increasing congestion and unaffordable housing. should take advantage of the low rates by borrowing whenever possible for appreciating assets, including residential purchases and new capital investments for businesses. People in the market for real estate will be increasingly motivated to buy, and housing prices should continue to rise.

Multi-employer retirement plans will allow residents to build wealth in a way other than real estate and also allow employers to better compete for talent in a low-unemployment environment. Those plans will permit businesses to join forces to offer a stronger catalog of retirement benefits, helping employers retain solid employees and increase workplace satisfaction. to those in public safety and education, our very definition of health—and what is healthy—is expanding.

PeaceHealth actively engages with internal and external stakeholders to help ensure that we fully support the needs of those acutely ill who require hospitalization, those who need access to primary and specialty clinic services, and those for whom access to services beyond the hospital and clinics makes sense.

Amid industry changes, PeaceHealth’s mission to serve all in our community, including those who are most vulnerable among us, is unwavering.

make a strong case for restoring airline services to Hawaii and Colorado (Denver), and adding new services to the Midwest and resort cities in Mexico, although it’s too early to predict new 2020 routes.

Nationally, the U.S. Commercial Airline Industry has a positive outlook for 2020, with passenger demand for domestic and international air travel expected to grow by 2.4%-2.7% (barring any geopolitical impacts to consumer confidence and jet fuel prices).

U.S. carriers continue to be impacted by the Boeing 737 MAX’s grounding in March 2019. The Boeing 737 MAX, once certified for delivery, will be the most rigorously-tested commercial airplane in service.

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“BLI is well positioned to accommodate commercialairline demand over the next 20 years.”

—Sunil Harman (Left), Director of Aviation, Bellingham International Airport

Photo by Scott Book

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Agriculture Rich Appel, Dairy Farmer/President, Whatcom Family Farmers!

Dark clouds provide uncertainty. After five years of very low milk prices, improved prices have breathed life into struggling dairies. But, consolidation and loss of farms continues. The raspberry crop was down in 2019 and overall prices remained low. Sadly, raspberry acreage is being reduced. While the crop was strong, the blueberry market declined. Seed-potato farmers are less affected by changing market conditions, and

Technology Michael Gan, Interim Executive Director, Technology Alliance Group NW (TAG) Globally, 2020 will see familiar topics in technology, including artificial intelligence, privacy, identity, social media, and cybersecurity.

Questions the tech community will continue to explore include: How will artificial intelligence and social media

Port / Marine Ken Bell, Commissioner, Port of Bellingham We’re undertaking some major initiatives in 2020; most significantly, our commitment to provide broadband services to areas in Whatcom County that are currently not served or underserved.

We’re pressuring our real estate partners on the former Georgia Pacific development site that has taken way too long to bring to fruition. We expect to see a completely leased Granary building, and groundbreaking for the condo development near

they report a relatively strong year for weather and disease prevention.

Labor costs are rising unsustainably, driven in part by harmful activism. Trade issues affecting dairy and berry farmers may take years to improve.

Water remains the biggest issue, with claims of not enough for fish and farms. Actually, we are blessed with plenty of water for fish and farms. Farmers continually get involved with habitat improvements and improvements for salmon runs. Fish need farms and farms need fish. In 2020, we will speak up about why. accommodate the increasing importance of privacy and identity? What elements of our identity should be protected? How will social media evolve to match cultural demand, as well as legal and cultural restrictions? Cybersecurity topics will continue to progress in importance, as we evolve our cultural values of privacy and identity protection.

In Whatcom County, the TAG Community will focus on workforce-development programs, community expansion, and community outreach to continue strengthening our technology community.

the waterway—creating an environment that draws people to the waterfront. On that note, we have initiated a process to bring temporary structures to the development that will soon create on-site commerce.

Our commitment to Blaine will be obvious over the next year, as we welcome new fishing and aquaculture partners and a new boatyard operator. Blaine is growing in amazing ways and we want to help in any way we can.

Changes in all of our maritime operations will positively impact the local economy. The gentrification of waterfront areas to the north and south are pushing industries out—and into our community.

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“We expect to see a completely leased Granary building and groundbreaking for the condo development near the waterway.”

—Ken Bell, Commissioner, Port of Bellingham

Photo by Scott Book

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“A hot topic this year is supporting the implementation of a countywide wayfinding system.”

—Sandy Ward, CEO, Bellingham Whatcom County Tourism

Photo by Scott Book

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Commercial Construction Lance Calloway, Northern District Manager, Associated General Contractors of Washington (AGC) The outlook for civil, industrial, and commercial construction remains positive. Our economy is still strong, even as some foresee a potential downturn in late 2020. Many contractors have a solid pipeline of projects to keep them busy.

The issue most echoed is inadequate workforce. Contractors are challenged in attracting and retaining new entry-level

workers. Many of the current skilled personnel are nearing retirement and our contractors are not finding the next generation of workers to fill these roles.

Entry-level employees often lack soft skills, such as a strong work ethic, willingness to learn, and punctuality—as well as being able to pass a drug test. Once having the employees they need, firms have to work hard to retain them. In our tight local labor force, I know a few firms who have had one—even two— mid-year wage increases to maintain their crews so they can complete projects.

“Many of the current skilled personnel are nearing retirement and our contractors are not finding the next generation of workers to fill these roles.”

—Lance Calloway, Northern District Manager, Associated General Contractors of Washington (AGC)

Residential Construction Jacquelyn Styrna, Government Affairs Director, Building Industry Association of Whatcom County (BIAWC) In 2020, BIAWC hopes more local families achieve the “American Dream” of homeownership. Excessive government regulation contributes to the high cost of housing, while internal city systems and redundant policies delay production and impact the market. In July 2019, the Whatcom County Business and Commerce Committee declared that Whatcom County is experiencing a housing crisis that can be solved if BIAWC’s builders are permitted to build the estimated 10,000 homes people need.

Our prediction is that the City of Bellingham will not make the

Tourism Sandy Ward, CEO, Bellingham Whatcom County Tourism Tourism is big business in Whatcom County: • $705.7 million in visitor spending—No. 5 in the state.

• 6,910 direct tourism jobs.

• $174.9 million payroll.

• $58 million in annual state and local taxes, an important piece of the County’s collective economic development.

A hot topic this year is supporting the implementation of

changes necessary to solve their part of the housing crisis and, as a result, small cities like Everson, Nooksack, and Sumas will lead the way to create the “missing middle” housing needed to accommodate growth.

For our part, the BIAWC has three focus areas in 2020. One is facilitating youth construction opportunities, such as helping high school juniors get the training and certifications they need for entry-level building jobs.

Another focus is permit timeline accountability—meaning, accountability from city governments for time-loss damages, as well as a ban on upfront timeline extension agreements. Lastly, we’re seeking attainable housing standards that add measurable housing metrics to the Growth Management Act (GMA).

a countywide wayfinding system that features vehicular and pedestrian signage, as well as kiosks and maps.

Another is a multi-purpose event center feasibility study. In 2021 and beyond, we’d like to develop a countywide, strategic tourism master plan and roadmap for the future.

We predict major movement this year toward sustainable tourism products and authentic experiences, especially those connected to nature and the outdoors; and more destination stewardship and finding visitors who share our values, because we want people who live here to be happy sharing spaces and experiences with visitors.

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Small-Business Development CJ Seitz, Director, Western Washington University Small Business Development Center (SBDC) The Whatcom County economy will feel the squeeze in 2020 as labor costs go up, the labor pool goes down, and the “Silver Tsunami” washes away legacy businesses.

Labor costs will increase due to increases in minimum wage and changes in overtime exemption for certain salaried workers. Businesses that use labor in creative and innovative ways will win the day.

Hiring will be more difficult in 2020, as the labor pool

Sustainability Derek Long, Executive Director, Sustainable Connections The three major issues facing Whatcom County in 2020 are: 1. Housing availability and affordability: Our work to address housing needs is driven by a vibrant and sustainable economy, public health, equity, and diversity. We host the Whatcom Housing Alliance—comprising representatives from a cross-section of public and private industries—to recommend public policies that address housing challenges and opportunities.

2. Energy and climate: Demand for energy- and climate-related

Tribal Teresa Taylor, Project Manager, Office of Economic Policy, Lummi Indian Business Council (LIBC) As the Lummi Nation searches for ways to increase revenue support, two major projects loom in 2020: Two new convenience stores operated by the Lummi Commercial Company will carry the Lummi Bay Market brand: the 3,600-square-foot Lummi Bay Market at Fisherman’s Cove (Gooseberry Point); and the Lummi Bay Market at Salish Village, a 10,000-square-foot build near I-5 and Slater Road (to be completed by the Spring of 2020). Each store will carry four kinds of fuel, plus fresh foods, deli items, and fisheries supplies, and have

Maritime Pete Granger, President, Whatcom Working Waterfront Coalition (WWWC) WWWC represents a voice for more than 120 waterfront businesses and individuals and engages with the Port of Bellingham to preserve and expand marine trades in Blaine and Bellingham. For example: The Port pledged to upgrade docks, floats, public access, and commercial storage this year at the Blaine marine harbor, bringing much-needed infrastructure improvements.

The Port reduced rents for water-reliant commercial marine trades by 10%, leading to new and expanded operations such as All American Marine and NTG Fabrication boatbuilding

continues to be inadequate to fill market needs. Creative employers are choosing “make” over “buy” with innovative on-the-job training and investments in employee development.

As Baby Boomers age out of the workplace, the “Silver Tsunami” is also washing away legacy businesses. Whatcom County’s economy is at risk without effective business succession planning. Owners who approach succession proactively will assure their business continues serving the community—and will gain the most from the transition.

If you’re feeling the squeeze, or you’re considering selling your business, visit sbdc.wwu.edu to learn more. services are stronger than ever. Our 10-year-old Community Energy Challenge commercial buildings team pipeline of clients has been full for over a year; we’re working hard to keep the wait list manageable in 2020. The pace of building assessments nearly doubled in the past six months. Energy efficiency retrofits and renewable energy system investments approached $2 million for 2019.

3. Farming: Farming is one of Whatcom County’s top industries, delivering economic, environmental, and cultural benefits. Farms face pricing pressure, increased operational costs, and difficulty finding high-quality team members. Hopefully, we’ll see greater community and political support for farming this year. a small kitchen/grill.

Services at the Lummi Tribal Health Center have expanded greatly since 1978, increasing from 1,614 individuals totaling 7,404 visits a year to the present 4,729 individuals totaling more than 50,000 visits a year. And the individual count is projected to grow to 9,000 by 2035.

The existing clinic cannot accommodate that population growth. It no longer supports changes in program functions, suffers from normal wear and tear, and can no longer be retrofitted or remodeled. The new 50,000-square-foot Lummi Tribal Health Center will break ground in the Spring of 2020 and will meet the needs of a growing Lummi population for the next 25 years.

facilities on the Bellingham waterfront.

These commitments help avoid a trend in Washington, and nationally, of many urban waterfronts having seen gentrification take over waterfront property and push out vital marine businesses and their living-wage jobs.

Commercial salmon fishing seasons continue to experience diminishing runs. A proposal is gaining traction to build a combined private nonprofit salmon hatchery on the Whatcom Waterway. (See Business Pulse Nov.-Dec. issue cover story online.) The 2020 legislative session will see a bill to fund a feasibility study for the hatchery; similar hatcheries have proven very effective in Alaska.

Also, 2020 might see an initiative to expand the number of Port of Bellingham Commissioners from three to five.

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“A proposal is gaining traction to build a combined private nonprofit salmon hatchery on the Whatcom Waterway.”

—Pete Granger, President, Whatcom Working Waterfront Coalition (WWWC)

Photo by Scott Book

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O is for

OPTIMISM

Survey Foresees Modest Economic Growth In 2020

By Dave Brumbaugh

M

any local business leaders expect another year of moderate growth in 2020, but they don’t believe Whatcom County’s economic outlook is as strong as the national picture, according to results of a Whatcom Business Alliance (WBA) survey conducted late last year.

The survey found that 47% of respondents expect their business profits to increase by 5% or more in 2020. However, they like the national economic prospects better than the Whatcom County outlook. Nearly 64% of the respondents predicted a very strong or strong national economy in 2020, but only 55% felt the same way about the local economy.

Modest expectations contributed to caution about adding employees and making capital investments. According to the survey, 63% believe their staffing level this year will be similar to 2019, and only 24% see it rising more than 5%. The outlook for capital investment is slightly more positive, with 58% predicting it will be close to last year, and 32% looking for an increase of more than 5%.

The reluctance to add employees is linked to the challenge of finding good ones in a period of low unemployment, according to the survey. When asked to rate their areas of concern for their business this year, 57% said the availability of quality employees was a significant concern, and 63% reported it had become more difficult to find qualified people in the past year. Half of the respondents said new employees had few, if any, of the necessary workplace skills on their first day and needed training.

LOOKING BACK AT 2019 When asked to compare their 2019 business profits with 2018,

only 24% reported an increase of more than 10%. The survey found that 39% had little change in profits and 26% saw increases of 5-10%.

And, while not as desirable as higher profits, 34% reported revenues up more than 10% from the previous year, and 37% said they were 5-10% higher.

The challenges to profitability are numerous, as any business owner will attest. The ones most often cited by respondents were: taxes and government charges and regulations, 68%; local- and state-government regulations, 57%; wages, 41%; price pressure from customers, 41%; and access to availability of skilled workers, 35%.

By contrast, the areas cited by few respondents as problematic were: difficulties in obtaining financing, 5%; declining customer base, 5%; and access to technology infrastructure and broadband, 2%.

With the 2019 general election fresh on the minds of survey respondents—68% said local elections have a significant impact on the success of their business, and only 32% felt they had little or no impact.

DIVERSE RESPONDENTS The WBA survey drew responses from a wide cross-section of Whatcom County businesses. The top category represented was manufacturing, at 21%, followed by construction/development, 18%; retail/wholesale, 13%; financial services, 13%; professional services, 11%; agribusiness, 8%; and real estate, 5%.

Regarding location, 68% of respondents said they had a Bellingham mailing address, 18% were in another city in the county, and 18% were in an unincorporated area of the county, not near the Bellingham city limits.

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Despite Economic Clouds, No Storm Expected In 2020

By Dave Brumbaugh

While 2020 may be a turbulent year in politics, a pair of leading analysts expect the economy to be rather tame. They spoke at the annual Economic Forecast Breakfast, presented by the Whatcom Business Alliance.

“We don’t think there’s going to be a recession in 2020, but it’s going to be slow growth,” said Michael Serio, Regional Chief Investment Officer for Wells Fargo Investment Institute.

But Dann Mead Smith, President of the Washington Policy Center, warned that a downturn can’t be ruled out, noting that the New York Federal Reserve model has recession probabilities at the same levels as before the 2007-2009 recession. He also reported that Washington exports to China and South Korea were down by 30% for the first 10 months of 2019.

“Threats to economic expansion include concerns about international

trade and fiscal policy, geopolitical risks, and maturing expansion,” Smith said.

He cited forecasts of unemployment rates statewide creeping higher in the next

Dann Mead Smith

Michael Serio

several years, from 4.3% in 2019 to 4.9% in 2023, but he wasn’t concerned.

The unemployment rate is still incredibly low in Washington state,” Smith added.

Areas of concern for Smith include the

state’s hourly minimum wage rising to $13.50 on Jan. 1, numerous tax increases that have been implemented since mid-2019, and upcoming changes in overtime rules that will affect more salaried employees.

From a broader perspective, negative yields for nearly a quarter of the debt outstanding in the global bond market— including 10-year bonds in Japan and much of Western Europe—make Serio nervous.

But the key for him is consumer confidence, because consumer spending accounts for 70% of the U. S. economy.

“When consumers become fearful, they stop spending,” Serio said.

But when all the pluses and minuses are considered, he expects them to balance out with a slight bias toward growth.

“We believe that the U.S. economy is in the latter stages of the recovery, but we do not expect a recession in the next 12 months,” Serio said.

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Gazing Into Crystal Ball Proves More Amusing Than Accurate I

n 2015, Business Pulse asked Whatcom County business leaders what they envisioned for their industries for the years leading up to 2020. Acknowledging that not all companies operate under a five-year plan, the answers were varied and —if not entirely on the mark—at least interesting.

Predictions ranged from small businesses discontinuing healthcare, to an increasing demand for detached homes, to a growing interest in LEAN manufacturing practices. Other interesting answers included conducting real-estate tours in self-driving cars, having robotic milking machines take the place of hands,

BY TARA NELSON seeing cannabis become legal worldwide, and having farmers use self-driving tractors and cattle ankle bracelets—to name just a few.

Outgoing Whatcom County Executive Jack Louws even predicted the discovery of a 1920 time capsule full of gold that would pay for Whatcom County residents’ property taxes.

“Yeah, that didn’t happen,” he chuckled.

Louws, who was entering his last few weeks in office at press time, said he’s proud that most of the objectives on his 2020 “vision list” have been achieved or are in the process of being completed. They included adopting the 2006 Whatcom

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County Comprehensive Plan, getting the county into compliance with the Growth Management Act (GMA) without lawsuits, implementing alternatives to incarceration for non-violent and low-level offenders, and overseeing new construction on the Bellingham waterfront.

Other Louws predictions included reaching a resolution of the battle over water rights, traffic corridor improvements between Bellingham and Ferndale, expanded quiet zones for trains, countywide EMS funding, improvements to Lake Whatcom water quality, and a new Whatcom County jail.

“I was incorrect about water rights and

the jail, which are going to be issues for a long time,” he said. “But looking back I feel pretty good and I think we’ve accomplished quite a lot. There are some things that we haven’t been able to achieve, but that could be said about most everyone in any office.”

Louws said his next step after leaving office will be traveling with his wife, reflecting on what they’ve done throughout their careers, and figuring out what they’re going to do in the next chapter of their lives—aka retirement.

Major waterfront plans Port of Bellingham Executive Director Rob Fix said in 2015 that he envisioned Bellingham residents strolling through a

“Citizens Dock, which is an adaptive re-use of the Georgia-Pacific pier, is probably a little way off because the dock repairs have not yet had a source of funding. That probably will happen in phases over the next five years, however.

“Although we won’t see a clean energy fuel-cell research center open in 2020, the Port of Bellingham and Western Washington University continue to believe this is an ideal location for that activity, and we’re working with a number of companies to try and make clean energy research and application a reality for the waterfront.

“Mr. & Mr. Boomer may have to wait a little longer, as their residences still will

of office space isn’t as far along as we had anticipated. We’re also in discussions with Western Washington University regarding all kinds of high-tech engineering companies. I think we’re going to create a first-class waterfront that’s going to allow companies to recruit and retain talent.

“I can’t say how much of the new construction will be residential and how much will be retail; it’s hard to say. At the moment, the demand for office space is very slack, so residential demand will need to drive construction right now.

Zoning laws, however, could limit those figures,” Fix said.

Anything else?

“The state will announce a major new

“The (cannabis) pendulum has already swung. It’s not happening at the speed I anticipated...”

—Danielle Rosellison, owner of Trail Blazin’ Productions

futuristic downtown waterfront and enjoying breakfast or brews (or breakfast brews) on the outdoor deck of Bellingham’s newest brewpub. Fix predicted Generation Y members would be taking a five-minute commute from their new waterfront residences to work in offices with spectacular views of Bellingham Bay and the San Juan Island archipelago. However, Fix also said he may be in a padded room somewhere after “losing it” trying to get it all to come together.

So, how did his predictions measure up?

“As far as the brewpub in the Granary Building, I’m not sure if it will be a brewpub, but there will be a place for people to get food and a drink and it will open in 2020.

be under construction in 2020. It probably will take about 18 months to construct those types of buildings, so I was only about a year off on that one—which isn’t too bad.”

What can we expect over the next five years?

“I think we’re moments away from seeing a lot of activity on the waterfront. I think you’ll see significant construction starting and a lot more housing. Right now, we obviously have a housing shortage. Public access also will continue to improve. This past year, we unveiled the wildly popular pump track (for dirt-bike riders), and we’ll have more things like that in store for 2020.

“We’re continuing to work with a number of companies, because the construction

airport,” Fix said. “Whether that will be at Paine Field or another location, it could affect Bellingham International Airport, so we’ve been working to obtain new routes going east and west and connecting with regional airports, such as Portland and Spokane.”

Cannabis legalization slows Five years ago Danielle Rosellison, owner of Trail Blazin’ Productions, a grower and processor of recreational marijuana and president of The Cannabis Alliance in Washington state, predicted the federal government would reclassify marijuana from a Schedule 1 narcotic, that the industry would continue to expand into all areas of consumer goods and services, and that a majority of states

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“We’re moments away from seeing a lot of activity on the waterfront.

I think you’ll see significant construction starting and a lot more housing.”

—Rob Fix, Port of Bellingham Executive Director Photo by Scott Book

“Thinking about what might happen over the next five years, you start with the answer ‘nothing big.’

The refineries are going to keep doing their thing, as will the hospital and the public sector.”

—Hart Hodges, Director of Western Washington University’s Center for Economic and Business Research

would have legalized cannabis by 2020.

Her prediction made sense, too. At the time, the federal government, under the Obama administration, had eased enforcement of federal marijuana laws and Washington had just passed Initiative 502, making it, along with Colorado, one of the first states in the nation to make recreational use of marijuana legal. Two years later, however, then-White House Press Secretary Sean Spicer said the United States would seek greater enforcement of marijuana legislation and take action against states that sponsor or distribute recreational marijuana.

But as federal policy remains a political football, state legislatures across the country aren’t waiting around. As of July 2019, almost all states had medical marijuana on the books and 11 states and the District of Columbia had legalized marijuana for recreational purposes. Rosellison estimated that recreational usage is passing at the rate of two or three states per year.

And she believes it’s only a matter a time until it’s legal around the world.

“The pendulum has already swung,” she said. “It’s not happening at the speed I had anticipated, but we’ve come a long way.”

Rosellison added that, while Washington was one of the first states to make recreational marijuana legal, there still is a lot of work to be done in terms of consumer education and quality control of both cannabis and hemp products. “Even in the I-502 world, we’re required to test for pesticides and heavy metals, but there’s no way for anyone to enforce that,” she said.

Rosellison said she still sees the product market expanding for cannabis products. She hopes that, over the next five years, consumers become better educated about different strains and that sellers

become more educated about what dose to start people on when they’ve never used cannabis before. She also cautioned against gimmicks that manufacturers might be cashing in on, noting that she recently came across a CBD pillowcase and CBD shampoo.

“I think we’ll just see more and more research and consumer education around marijuana and what makes this plant so magical,” she said. “That said, you probably shouldn’t be buying your CBD products in a gas station.”

City of subdued growth Hart Hodges, Director of Western Washington University’s Center for Economic and Business Research, said, looking five years forward, he anticipates a lot more of the boring same old…but in a good way.

“We’ve got this very stable economy.

It’s kind of boring, but it’s got a stable, non-cyclical core. It does give you some confidence in saying nothing big is going to happen.”

Hodges was comparing Whatcom County’s economy with surrounding metropolitan areas that have bigger swings in their business cycles. For example, Seattle was hit hard by the early ’90s recession, the ‘dot-com’ bust, and the recession of 2011, but Whatcom County and Bellingham continued to enjoy employment growth of 1.5%-2%, even during those times.

In fact, for 26 out of the past 27 years, Whatcom County has enjoyed slow and steady growth.

“We’ve been the tortoise,” he said.

“Seattle gets hit a lot harder in recessions, Boeing slows down, they have lay-offs, and job growth slows down. But Bellingham doesn’t have a dot-com sector, so we’ve

had remarkably stable—unimpressive but remarkably stable—growth, even when Seattle’s economy dropped.”

Hodges said part of that stability comes from a large chunk of Whatcom County’s economy being composed of government offices, state and community colleges, healthcare, and refineries.

Approximately 17% of jobs in Whatcom County are in government (including state and community colleges), 10% are in healthcare, and 8% are in refinery work. Altogether, that represents about 35% of all jobs in Whatcom County, and even more if you include jobs in supporting industries—which is what economists call the ‘multiplier effect.’

Hodges said Whatcom County’s “non-cyclical core” gives some foundation for saying nothing big is going to happen, meaning the next recession may not be a big deal here just like they weren’t in 1991 and 2001. Of course, there are always “what if ” questions about specific firms or projects. But the starting point is the stable core, he said.

Hodges added that he wonders whether, in five years, we will have a noticeable information sector. Much of the job growth in the U.S. over the last 10 years has been in the information sector and has taken place in a small number of “superstar cities.” Seattle is one of those cities (along with San Francisco, Austin, Boston, and a few others) that has seen a dramatic increase in highwage information jobs.

“Those jobs aren’t well represented here in Whatcom County,” he said. “Can that change? Are we too small and too close to Seattle for that to happen? Or can we somehow develop information and related jobs here?”

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QA and

Farmer Ben: ‘Everything’s a Battle’ “Are we using real science, or political science? There seems to be very little real data to support a lot of the assumptions behind the politics.”

BY MIKE MCKENZIE In 1901, Ben Elenbaas’s great grandfather brought his family here from The Netherlands, attracted to farming by the quality of soil, climate, and the community. Ben—known familiarly as “Farmer Ben”—grew up on acreage near Lynden, learning about seed and soil from his father, who was a professional agronomist.

Ben worked his way through Western Washington University as a commercial pesticide applicator while playing football and earning a self-designed degree in Natural Sciences, Environmental Studies, and Geography.

He’s worked the last 18 years at BP Cherry Point, while still actively farming, and his voice rings across all of Whatcom County agriculture as President of its Farm Bureau, Vice-President of its Cattlemen’s Association, and now as a newly installed County Councilman.

Previously, he was appointed to the county Planning Commission, and elected to the county’s Charter Review Commission. “Pretty much my entire adult life I’ve been working with local and state government trying to influence regulations that are workable and that use common sense,” says Ben, father of four, and a SCUBA diver in what spare time he can muster. And he had plenty else to say to Business Pulse about what he believes is sorely misguided local and state governance that works against agriculture hereabouts.

Business Pulse: How does the Farm Bureau function?

Ben: It’s the biggest ag organization in Whatcom County, representing all types of farms. The Farm Bureaus originally formed because farmers needed a unified voice, mainly in the area of policy and government. It operates all the way up through the national level. It serves as sort of a ‘union’ voice for the farmer.

Ours is a chapter of the Washington State Farm Bureau, which is part of the American Farm Bureau Federation Is it the same with the Whatcom Cattlemen’s Association?

No. It’s a local chapter of the Washington state association. There’s a national organization, but Washington and Whatcom County are not affiliated with it. The Cattlemen’s Association, like its name implies, addresses all things regarding the cattle industry, which tends to be smaller operations, mainly family oriented—typically, the ranch owner and maybe a couple of cowboys who show up seasonally.

What’s your background in agriculture?

I grew up where I farm now in Whatcom County, fourth generation. I’d love to farm full-time, but it seems everything’s a battle. So it’s hard to make a living as a small farmer anymore and off-farm income is a reality for most of us. We had a little over 180 acres at one point. Now, about 100. We had around 140 head of cattle and 80-90 pigs. Now we’re down to 45 cattle. And I have a few cattle horses on 10 acres where we live near Ferndale. My farming—my first love—is shrinking rapidly.

What are the biggest issues as you head to the national convention of the Farm Bureau this month?

For the Farm Bureau nationally, tariffs and immigration policy. For the state, labor issues surrounding foreign workers (H2A visa) and overtime pay. Locally, water is always the biggest issue. And landuse policy that reflects an understanding of what it takes to produce food in Whatcom County.

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What’s on your front burner in the roles you represent for local ag?

A hot topic going into 2020 among farmers is simply harvesting their crop, whether that’s berries, dairy, or livestock.

Logistics for the fresh and frozen food industry!

Are problems different for cattlemen?

Land use in Whatcom County isn’t real friendly toward harvesting cattle. There’s not enough slaughtering capacity. That’s symptomatic of Western Washington. The two facilities I used are in Stanwood and Lynden. This is a slow time of year, and they’re booked 3-4 months out, so I typically must schedule a year out…(and) with differing rates of growth from animal-to-animal it can be hard to be accurate a year out.

In the past, you sold straight to consumers from your farm, didn’t you?

We used to USDA-slaughter so we could sell individual cuts of meat. But the only place to get that accreditation for a while was in Moses Lake. My goal was to have my animals born on the farm, raised on the farm, and then be processed locally. That’s what the local food consumer wants.

But I had a hard time getting local processing and was shipping my animals over-themountain, which was counter-productive to producing locally, as well as cost prohibitive.

It’s a high-input, low-margin business. USDA certification costs almost $2 a pound, because of fees, and that doesn’t allow a scalable operation for an artisan, small-scale farm like ours— and most of the family farms in our area.

Why the cutback in Whatcom County?

Rivers run red with blood. Bad karma.

People who bought from me testified against us on regulations. They didn’t want land use that would permit local slaughtering. The issue hasn’t been resolved with anything that helps the rancher.

20 percent of the dairy cows in the state reside in Whatcom County. A dairy cow is just a beef cow, eventually. What do they do? They have to ship them somewhere else when they make that transition from dairy cow to beef cow. How’s that for a carbon footprint? Not exactly what local food enthusiasts have in mind when they buy local. But the County Council makes it hard. Current regulations functionally disallow harvesting cattle locally because

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HOURS AFTER BOOKS + EVENTS NOT TO

Bellingham Startup Challenge Jan 24–26 Bring on the entrepreneurial excitement! This 54-hour challenge is a unique opportunity for both aspiring and seasoned entrepreneurs to work with and get to know new people over the course of an exciting and fast-paced weekend. A diverse, well-balanced team is critical for a startup to be successful and participants with interests in areas such as engineering, software development, branding, graphic design, marketing, sales and project management will be in attendance. Regardless of your skill level or specialty, the most important trait for all participants to have is the desire to learn and the willingness to work hard in order to achieve success.

We’ll kick off the 6 p.m. Friday with a Meet & Greet and soon after we’ll start working to

form weekend teams of 4-5 people. As the teams begin to solidify, each one will also choose a startup idea to pursue. Once both your team and idea are set, it’s time to get down to work because the clock is ticking!

Over the course of the next two days, an impressive mix of experienced startup mentors will work one-on-one with your team and help you to iterate quickly and pivot when needed. And to help maximize the time available to build traction for your startup, we’ll keep everyone well-fed all weekend. If your team makes good progress and manages its time well, you’ll be pulling everything together on Sunday afternoon and polishing off your startup pitch for Sunday evening.

For the final presentations, each team will have five minutes on stage to pitch its startup to a panel of judges, as well as an audience of the

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general public. Once the pitch is complete, the judges will spend another five minutes asking questions in order to learn more about the startup. Once all of the teams have finished their pitches, the judges will deliberate and then announce who has won the coveted title of Startup Challenge 2019 Grand Champion!

Attend one of the events listed on the “Leadup Events” page at BellinghamStartupChallenge.com and purchase a ticket for $10 less than what you would have paid online!

Full-time students may use the promotional code, “student” to receive 20% off of any participant ticket. A valid student ID will be required at check-in on Friday night.

Invent Coworking Jan 24 6pm, -Jan 26, 9 p.m.

See website for more information bellinghamstartupchallenge.com

JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 49

event picks PULSE AFTER HOURS 2019-2020 Winter Juried Exhibit NOW–FEB 28 Enjoy live music in the Piano Lounge, meet the artists and explore all of the Jansen Art Center Winter Exhibits. The Juried Exhibits are open to the public as a way to showcase the artistic talent in Whatcom County and the surrounding region. Each season, artists are invited to submit up to five pieces to be judged by a qualified jury made up of artists, curators, and other figures in the arts community. The selected pieces are displayed in the Jansen Art Center for the community to enjoy.

Jansen Art Center, Lynden See website for more information. Cost: Free. www.jansenartcenter.org

Bill Anschell Trio JAN 8 “No matter where he plays on the keyboard, Anschell sounds like no other pianist” –JazzTimes. The same can be said of both Jeff Johnson on bass and D’Vonne Lewis on drums. This is how to begin the year.

Sylvia Center for the Arts, Bellingham 7–9 p.m. Cost: $10-5 www.wjmac.org

‘THINK BIG’ Student Club Challenge JAN 13 Student club finalists present their projects vying for grants totaling $10,000.

Imagine the ingenuity of “Shark Tank” coupled with the excitement of “America’s Got Talent!”

Every audience member gets to vote...so come join the fun AND vote for your favorite project!

Bellingham High School Auditorium 6:30-8 pm. www.bellinghamschoolsfoundation.org/thinkbig/

Friends of the Bellingham Public Library Book Sale JAN 22–25 The Friends of the Bellingham Public Library Winter Book Sale begins on Wednesday, Jan. 22 and runs through Saturday, Jan. 25. As usual, there is a large selection of books and media for all ages.

Most items are only $1. Tables are re-stocked continually. All proceeds benefit the Bellingham Public Library.

Bellingham Public Library: Central Branch

10 a.m.–6 p.m. Cost: Free www.bellinghampubliclibrary.org/friends-ofthe-library

Bellingham Folk Festival JAN 24–26 The Bellingham Folk Festival is a celebration of folk music in the heart of beautiful Bellingham. The festival offers three days of inspiring workshops, performances, dances, and jams for all ages and abilities.

Bellingham Unitarian Fellowship Fri.: 4:30–8 p.m., Sat.: 9 a.m.–8 p.m., Sun: 1–8 p.m. Cost: $10-$11 www.thebellinghamfolkfestival.com

ReSet For More Excellence JAN 24–26 Take the first step on your journey toward a more effective, satisfying life! ReSet for More Excellence will help you discover your intrinsic ability to manifest the life you want. You’ll learn practical tools you can use immediately—and shift your context in ways that last a lifetime. The purpose of ReSet for More Excellence is to prepare you to take your next step in life, with excellence.

Through dialogue, practice, experience, and laughter, you will: Discover your ability to create excellence—an ability you already possess.

Commit to winning in life—of course, you get to choose what that means to you. Surround yourself with people who genuinely want you to win. Prepare yourself to get maximum value from BreakThru, the next course in The Excellence Series Oxford Suites Bellingham Jan 24, 12 p.m.–Jan 26, 6:30 p.m. Cost: $695 Buy 1 get get 1 half off.

Registration Form: https://goo.gl/forms/ N1kN4orcKh8Wyqe73

The 2019 Sundance Film Festival Short Film Tour JAN 25–27 The 2019 Sundance Film Festival Short Film Tour is a 97-minute theatrical program of seven short films selected from this year’s Festival, widely considered the premier showcase for short films and the launchpad for many now-prominent independent filmmakers for more than 30 years. Including fiction, documentary, and animation from around the world, the 2019 program offers new audiences a taste of what the Festival offers, from sharplywritten comedy and drama to edgy genre and an intimate family saga.

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Fueled by artistic expression and limited only by their runtime, short films transcend traditional storytelling. They are a significant and popular way artists can connect with audiences. From documentary to animation, narrative to experimental, the abbreviated form is made for risk-taking. The Festival has always treated short films with the highest regard and gives a home to both established and new filmmakers with shorts for audiences to discover and celebrate.

Limelight Cinema, Bellingham 4–6 p.m. Cost: $8 members, $8.50 student/ military, $11.25 general www.pickfordfilmcenter.org/2019-sundancefilm-festival-short-film-tour/

A Cocktail Odyssey FEB 7 & 8 Introducing two brand new events to cap off Bellingham Cocktail Week.

A Cocktail Odyssey is a two-day tasting expo and gala featuring craft distilleries and spirits brands. Ticketholders will be able to sample a variety of different spirits and purchase bottles to take home at the Tasting Expo. The Expo will also feature multiple educational panels, presentations about spirits, and other serviceindustry oriented sessions to elevate Bellingham’s already world-class cocktail scene. The Gala will be held on Saturday, February 8th in the Hotel Leo’s historic ballroom. Mark your calendars, dust off your sparkliest outfit, and get ready for an evening of cosmic festivities.

Hotel Leo, Bellingham See website for more information. Cost: $30-$125 downtownbellingham.com/events

Downtown Art Walk FEB 7 On the first Friday of every month, downtown’s Art Walk features galleries, studios, museums, shops, and restaurants showcasing the creative talent found in Bellingham’s growing art scene. We invite you to stroll through the streets of downtown to enjoy art, food, and community!

Downtown Bellingham, various locations 6–11 p.m. Cost: Free www.downtownbellingham.com/art-walk/

The Gatlin Brothers FEB 15 Larry, Steve, and Rudy—the Gatlin Brothers—are a Grammy Award-winning trio that has dazzled audiences for more than 60 years with a lifetime of noteworthy

achievements in their storybook career, including a Grammy for Best Country Song (“Broken Lady”), three ACM awards for Single of the Year (“All The Gold In California”), Album of the Year (Straight Ahead) and Male Vocalist of the Year for Larry Gatlin, along with five nominations for CMA Vocal Group of the Year, Single, Album and Male Vocalist of the Year. The Brothers have accumulated 7 #1 Singles, 32 “Top 40” records, 22 studio albums, a massive catalog of “Top 40” hits written for other stars, and major awards too numerous to list all attest to their greatness. That these three brothers have been doing what they love together all this time: something truly magical to witness.

Mount Baker Theatre, Bellingham 7:30–9:30 p.m. Cost: $25.50-$59.50 www.mountbakertheatre.com

Bellingham’s Got Talent 2020 FEB 23 Does Bellingham have talent? Bring it on! This family oriented talent show features music, comedy, and general talent acts, with cash prizes for first and second place in each category.

See Facebook for details on how to get your auditions reviewed. Judges will be local talent.

The net proceeds go to the Lighthouse Mission Ministries for the Street Connect program, taking support to the homeless of Bellingham for essential needs. Bring in your talent. The goals are to have fun on a Winter’s day, develop local talent, and offer the infrastructure for talented individuals, stage managers, and the public to broaden their experience and skills in the performing arts.

Mount Baker Theatre, Bellingham 1–3 p.m. Cost: $12.50, 7.50 for children bellinghams-got-talent.com

17th Annual Children’s Literature Conference FEB 29 Western Washington University will host four award-winning children’s and young adult book authors and illustrators at Western’s Performing Arts Center as part of Western’s 17th Annual Children’s Literature Conference.

This year’s authors are Mac Barnett, Jason Chin, LeUyen Pham, and Ruta Sepetys.

Western Washington University Performing Arts Center Concert Hall 8 a.m.–3:30 p.m. Cost: Full registration: $175.

Discounts available for students, para-professionals,

NOVEMBER/DECEMBER 2019 BUSINESSPULSE.COM | 51

reads PULSE AFTER HOURS The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution Gregory Zuckerman Jim Simons is the greatest moneymaker in modern financial history. No other investor—Warren Buffett, Peter Lynch, Ray Dalio, Steve Cohen, or George Soros—can touch his record. Since 1988, Renaissance’s signature Medallion fund has generated average annual returns of 66 percent. The firm has earned profits of more than $100 billion; Simons is worth $23 billion.

Drawing on unprecedented access to Simons and dozens of current and former employees, Zuckerman, a veteran Wall Street Journal investigative reporter, tells the gripping story of how a world-class mathematician and former code breaker mastered the market. Simons pioneered a data-driven, algorithmic approach that’s sweeping the world.

As Renaissance became a market force, its

executives began influencing the world beyond finance. Simons became a major figure in scientific research, education, and liberal politics. Senior executive Robert Mercer is more responsible than anyone else for the Trump presidency, placing Steve Bannon in the campaign and funding Trump’s victorious 2016 effort. Mercer also impacted the campaign behind Brexit.

The Man Who Solved the Market is a portrait of a modern-day Midas who remade markets in his own image, but failed to anticipate how his success would impact his firm and his country. It’s also a story of what Simons’ revolution means for the rest of us.

(Nov. 5, 2019, Portfolio) Hardcover $30

The Third Pillar: How Markets and the State Leave the Community Behind Raghuram Rajan Raghuram Rajan, a distinguished University of Chicago professor, former IMF chief economist, head of India’s central bank, and author of the 2010 FT-Goldman-Sachs Book of the Year Fault Lines, has an unparalleled vantage point into the social and economic consequences of globalization and their ultimate effect on our politics. In The Third Pillar, he offers up a magnificent big-picture framework for understanding how these three forces—the state, markets, and our communities—interact, why things begin to break down, and how we can find our way back to a more secure and stable plane.

The “third pillar” is the community we live in.

Economists all too often understand their field as the relationship between markets and the state, but

they leave squishy social issues for other people.

That’s not just myopic, Rajan argues; it’s dangerous. All economics is actually socioeconomics—all markets are embedded in a web of human relations, values and norms.

Rajan is not a doctrinaire conservative, so his ultimate argument that decision-making has to be devolved to the grassroots or our democracy will continue to wither, is sure to be provocative. But even setting aside its solutions, The Third Pillar is a masterpiece of explication, a book that will be a classic of its kind for its offering of a wise, authoritative, and humane explanation of the forces that have wrought such a sea change in our lives.

(February 26, 2019, Penguin Press) Hardcover $30

Unlocking the Customer Value Chain Thales S. Teixeira Based on eight years of research visiting dozens of startups, tech companies, and incumbents, Harvard Business School professor Thales Teixeira shows how and why consumer industries are disrupted, and what established companies can do about it—while highlighting the specific strategies potential startups use to gain a competitive edge.

As Teixeira makes clear, the nature of competition has fundamentally changed. Using innovative new business models, startups are stealing customers by breaking the links in how consumers discover, buy and use products and services. By decoupling the customer value chain, these startups, instead of taking on the Unilevers and Nikes, BMWs and Sephoras of the world head on, peel

52 | BUSINESSPULSE.COM JANUARY/FEBRUARY 2020

away a piece of the consumer purchasing process.

Birchbox offered women a new way to sample beauty products from a variety of companies from the convenience of their homes, without having to visit a store. Turo doesn’t compete with GM. Instead, it offers people the benefit of driving without having to own a car themselves.

It’s illustrated with vivid, in-depth, and exclusive accounts of both startups and reigning incumbents, like Best Buy and Comcast, as they struggle to respond, Unlocking the Customer Value Chain is an essential guide to demystifying how digital disruption takes place—and what companies can do to defend themselves.

(February 19, 2019, Currency) Hardcover $28

Q AND A continued from Page 47

there’s so much red tape and costs. No one is interested in investing in a facility when there is no certainty in land-use permitting Does ag have concerns about the area going all-electric—a big initiative in Bellingham City Council?

Think about what hydroelectric dams have done for food production. Now, special interest groups want to close them down. What?

No nuclear. No natural gas. Bellingham, going all-electric. But take the dams out?

It boggles the mind. There’s been almost a billion dollars designated for a study of the Snake River Dams. But does anybody have a plan for what to do if they’re gone? Absolutely not. Nobody does.

We hear a lot about labor costs and shortages as a major dilemma.

Farm overtime is a massive issue for the Washington Farm Bureau. The state wants to mandate back-pay and overtime. Some operations with 100s of employees wouldn’t be able to cover the cost. For example, a fruit orchard, where they have seasonal workers 60 to 80 hours a week for a limited time.

Historically they have not paid overtime because it’s not very feasible.

As for cattlemen, it’s usually just you and a couple of guys on horses. Cattlemen probably have more border collies than they do farmhands.

Does the national immigration hot button trickle down to Whatcom County?

The H2A worker—the visa program where you can bring in folks from other countries for specific roles at a specific wage—is another big matter. There are a lot of H2As. They come from all over. Whoever wants to work.

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What’s the rub?

It’s a pretty neat thing. But, say a farm brings one in to pick apples, and regardless of how much they pick, they get paid anyway.

Locals get paid on production—an amount per pound they pick. If a worker is paid the same to pick three apples as someone who picked 3,000….

Are there no alternatives?

By law you can’t move that H2A picker into, for example, a warehouse job. You can’t

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Q AND A continued on Page 54 JANUARY/FEBRUARY 2020 BUSINESSPULSE.COM | 53

Q AND A continued from Page 53

reposition or send them back home. That ties the hands of the farmer. Normally, as an employer, you can do something about it if an employee isn’t producing. But you can’t just send the H2A worker home if they aren’t producing. So it can be hard to performance-manage that particular worker, because of tension with the local worker who is not happy being paid on par with a worker possibly taking a nap in the field.

Many industries bemoan over-regulation. Is agriculture among them?

What we have is more layers of cost and not much benefit to the worker or the farmer, which is typical of our local and state governments. Not all regulations are bad, but they have to serve a purpose.

Seems like the talk, and controversy, about water rights never ceases.

Water is always a critical issue. And new attacks are coming at agriculture with a target on water rights (and) becoming more efficient with our water use. But most of what has been proposed so far, we’re already doing.

The same folks who were trying to vilify rural

residents for their rural lifestyles have now shifted their focus to food producers to try and regulate and control out of existence.

Can the legislature or County Council help?

I’ve sat with lawmakers and others, heard their spiel, and it’s the same. No real solutions. No plans. Water issues don’t seem to be about conservation or saving the salmon anymore. They seem to be about finding their next funding source that typically takes the shape of a government grant. It’s purely political. If you can perpetuate an issue, it’s like printing money for your favorite nonprofit.

Our habitat is under-utilized. Water quality has been where it needs to be for a while now. It’s almost as if there is more money in ‘saving the salmon’ than harvesting them.

We’re not seeing anything with meaningful results on the local or state level.

What’s an example?

The NSEA (Nooksack Salmon Enhancement Association). Don’t get me wrong, it has partnered well with agriculture over the years, and I hope we can continue to work well together on restoring habitat

and protecting water quality. But at some point, in the absence of meaningful salmon enhancement we need to look at what’s next.

If you look at NSEA’s Top 10 achievements on their website you’ll see that they’ve invested in infrastructure, restored habitat, and secured enough grant money to remain fiscally stable for the foreseeable future. But nowhere do they boast that they’ve actually enhanced salmon in the form of sustainable harvestable fish numbers.

What’s at the heart of all the divisiveness between local government and ag?

Assumptions, agendas, and control. Using political science instead of real science to perpetuate an issue instead of solving it.

Having an issue brings money and power; if the issue is solved, that money and power might disappear.

We’re supposed to protect agriculture as a resource, but increasingly it seems that protecting the environment is the only thing on policymakers’ minds. Policy is taking the approach that you can’t have both a viable ag economy and a healthy environment.

But, again, science doesn’t support that.

We can have both. We must have both.

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