Business Pulse magazine January | February 2022 by Business Pulse magazine

BUSINESS PULSE

JANUARY / FEBRUARY 2022

THE PULSE OF WHATCOM COUNTY

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Major support from the tech industry brings cybersecurity training to Whatcom County

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VOL. 47 | NO. 1 PUBLISHER Whatcom Business Alliance EDITOR Matthew Anderson, Bellingham PR & Communications CONTRIBUTING Dustin McKissen WRITERS Tony Moceri Cheryl Stritzel McCarthy Lorraine Wilde GUEST COLUMNISTS Ken Bell Justin Brown Dave Mastin Todd Myers Dann Mead Smith ART DIRECTOR Whitney Pearce PHOTOGRAPHY Sattva Photo EXECUTIVE DIRECTOR Barbara Chase Cover Photo by Oliver Parish

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WBA BOARD OF DIRECTORS: BOARD CHAIR: Pam Brady, Director NW Gov’t & Public Affairs, BP Cherry Point EXECUTIVE COMMITTEE: ; John Huntley, President/ CEO, Mills Electric Inc.; 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, CEO, Red Rokk Interactive; Jane Carten, President, Saturna Capital; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Managing Principal, Tradewinds Capital; Jon Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein Sharpe & Serka; Sandy Keathley, Former Owner, K & K Industries; Tony Larson, President, Barlean’s; Becky Raney, Former Owner, Print & Copy Factory; Sarah Rothenbuhler, Owner/ CEO, Birch Equipment; Patrick Schuppert, Commercial Banking Relationship Manager, Wells Fargo; Galen Smith, Operations Manager/Owner, Coldstream Farms; Carryn Vande Griend, Government Affairs Representative, PSE; Billy VanZanten, CEO, Western Refinery Services For editorial comments and suggestions, write info@whatcombusinessalliance.com. The magazine is published bimonthly at 3111 Newmarket St., Ste. 106, Bellingham WA 98226. (360) 746-0418. Yearly subscription rate is $25 (US). For digital subscription, visit businesspulse.com. Entire contents copyrighted ©2022 Business Pulse. All rights reserved. POSTMASTER: Send address changes to Business Pulse, 3111 Newmarket St. Ste. 106, Bellingham WA 98226

JAN/FEB 2022 | BUSINESSPULSE.COM

IN THIS ISSUE 10 WHATCOM COUNTY TAKES ON CYBERSECURITY Local educational institutions are stepping up training with major support from the tech industry.

15 FINDING WAYS TO THRIVE The logging industry has been in a state of

continual change for more than a century and a half - and A.L.R.T is changing with the times.

19 2022 SHOWS GLIMMERS OF HOPE FOR BUSINESS Local industries and companies face common

challenges and opportunities in the coming year.

24 TRANSITION BIKES HAS LASER FOCUS — ON ITS RIDERS Continuing to innovate with great mountain bikes and new ways to bring the community together.

34 AMS STICKS TO THE TOP BY CREATING NEW OPPORTUNITIES The Blaine company is now the largest label producer north of Seattle and still growing.

38 PERSONALLY SPEAKING Meet Eva Schulte, executive director of the

Whatcom Community College Foundation, which serves almost 10,000 students annually.

COLUMNS 42 Two legislative

50 Effective succession

45 Three new ways

53 Washington state’s

47 Blue Water Scholarship

55 Port of Bellingham

proposals tackle challenges to Washington forests businesses can engage on policy issues Fund helps youth enter maritime work

BUSINESSPULSE.COM | JAN/FEB 2022

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JAN/FEB 2022 | BUSINESSPULSE.COM

BP UP FRONT

IN REMEMBRANCE As this issue goes to print, we want to stop and take a moment to remember Sen. Doug Ericksen. He was passionate about many issues, both large and small — the environment, local businesses and a vibrant economy in Whatcom County, and he was well respected across both sides of the aisle. He leaves a legacy of courage, deep friendships and love of community. We are grateful for his 22-year commitment to public service and work on behalf of all citizens. ■

Our community needs our leadership, now more than ever There is no sugarcoating it: businesses in Whatcom County are frustrated. They are frustrated by a broken supply chain. They are frustrated by the skyrocketing cost of basic goods. They are frustrated by labor shortages that prevent them from being able to fully serve their customers. They are frustrated by inconsistent and unexpected mandates that seem to shift the burden of enforcement onto private companies. They are frustrated by local governments that often focus on national issues they cannot influence, to the detriment of basic services. The flooding that has devastated our county is a perfect example of the type of challenges local governments can and should focus on. The cleanup of the latest round of flooding and a plan to prevent or minimize future flooding must be an absolute priority. But there are also genuine reasons for hope. The elections that occurred this past November show voters are tiring of political messaging and candidates who rely on anti-business rhetoric. The Bellingham City Council somewhat surprisingly voted to oppose a

BUSINESSPULSE.COM | JAN/FEB 2022

Our collective voice can give the business community the power to affect the economy. string of anti-business initiatives that ultimately failed at the ballot. A group of industry and environmental leaders worked for years to put forward a compromise that recognizes environmental concerns and the importance of the Cherry Point Industrial Zone to local families and the Whatcom County economy. And there are even more reasons for hope in the pages of the first edition of Business Pulse published in 2022. In her piece on cybersecurity (page 10), Lorraine Wilde tells us how Whatcom County’s colleges are leaders in

training a new generation of cybersecurity professionals. In “A tale of modern logging” (page 15), Cheryl Stritzel McCarthy profiles the modern logging industry and how it remains a thriving staple of the Whatcom County economy. On page 19, Dustin McKissen shares some challenges local businesses face, and how important it is for policymakers and business leaders to be on the same page. The local innovators behind Transition Bikes tell their story beginning on p. 24, and Whatcom Community College Foundation Executive Director Eva Schulte is interviewed on p. 38. Despite the challenges our economy and businesses face, the leaders and visionaries profiled in the pages of Business Pulse are exactly why our long-term future is so bright. We live in a beautiful place. Our population, statistically speaking, is better educated and better prepared to thrive in the modern economy than most other communities. The wins at Cherry Point and the defeat of anti-business initiatives show that while it can be a challenge, change is possible. The last several years have seen an extraordinary increase in anti-business

legislation and language. However, there are positive signs that the tide has begun to turn. In 2022, we expect more policymakers at every level to focus less on empty rhetoric that needlessly and inaccurately demonizes the businesses that put food on our tables and money in our checking accounts. It is an election year, which means results matter — and the economic results of the last year have been less than ideal, regardless of any political spin that says otherwise. Our businesses know this. Our leaders know this. This publication’s readers know this — but knowing is one thing. Acting is quite another. And in 2022, it is time for our action. The business community needs to stand up and be heard. Our community needs our leadership, now more than ever. As business leaders, we can have a voice in the type of economy we want to see — but we must use that voice. We must be in regular contact with policymakers. We must build relationships with the politicians who can affect our businesses most, even when we do not agree with them, or did not vote for them. Our collective voice can give the business community the power to affect the economy. Even in a region like Whatcom County, change can come. Together, through a shared voice, we can find and deliver hope. We have the potential to overcome the challenges ahead in the coming year — and together, we will.

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JAN/FEB 2022 | BUSINESSPULSE.COM

BP NEWSMAKERS

Scott Isenhart

Mark Thoma

Tiger Construction acquires Pearson Construction Tiger Construction, a general contractor headquartered in Whatcom County, has acquired Pearson Construction, one of the most respected general contractor firms in the Pacific Northwest since 1927. “The addition of Pearson Construction strengthens Tiger’s presence across Washington state as we continue to execute our growth strategy,” said Scott Isenhart, president of Tiger Construction. “Tiger and Pearson share common values, and we believe that our combined culture will result in an exceptional experience for our employees, clients and other professional partners.” The acquisition of Pearson will expand Tiger Construction’s services into the custom homebuilding market. For several decades, Pearson Construction has specialized in high-end private residences that highlight quality craftsmanship and design. “Pearson has a long history of successfully completing high-quality custom home projects that align with the Tiger project philosophy,” Isenhart said. “I could not be more excited to welcome the Pearson owners, team members and brand into the Tiger family.” Tiger Construction was founded in 1974 and has been serving the construction needs of Whatcom and Skagit counties for more than 40 years. The company is composed of two divisions, one focusing on civil and highway work and the other on commercial, industrial and institution-

BUSINESSPULSE.COM | JAN/FEB 2022

Will Einstein

New EV charging station in Bellingham

al work. Tiger also owns a large fleet of earth moving equipment, cranes and personnel lifts. All Pearson and Tiger owners and employees will continue to focus on serving clients and communities throughout Washington, specializing in commercial, industrial, public works and custom homebuilding. Isenhart will resume his role of president. Learn more at https://tiger-pearson. com.

Mark Thoma named partner in charge of Moss Adams Bellingham location Mark Thoma has been named the new partner in charge of the Moss Adams Bellingham location. Thoma brings a wealth of knowledge and experience as the partner in charge of the Tacoma location, a role he’ll continue while living in Bellingham. With more than 30 years of public accounting experience, Thoma provides accounting and business advisory services to owner-managed entities, with an emphasis on clients in the construction, real estate, and professional services industries, as well as employee benefit plans. His close, hands-on approach to client relationships enables him to effectively and creatively advise clients on a range of business matters. The Bellingham location specializes in a variety of areas, including assurance services, such as SEC and corporate finance services, and tax services, including international tax, cost segregation, and private client services. Mark is committed to giving back

to the local Bellingham community by supporting the firm’s initiatives on inclusion, diversity and social responsibility. Learn more at https://www.moss adams.com.

Puget Sound Energy rolls out public EV charging station In an effort to provide a fast, convenient and green way for drivers to charge an electric vehicle, Puget Sound Energy has added a third charging station in its service area. PSE’s electric vehicle program, “Up & Go Electric,” has installed a public charging station in Whatcom County at the Cordata Community Food Coop, located at 315 Westerly Road in Bellingham. The charging station features two Level 2 charging ports and two DC fast charging ports that the public can use 24 hours a day, seven days a week. “We are proud to support the City of Bellingham in its commitment to sustainability and expanding charging infrastructure for electric vehicles in our region,” said Will Einstein, director of product development and growth at PSE. “Partnering with local businesses like the Community Food Co-op to provide public charging that is fast and accessible to all drivers helps meet the growing demand for more electric vehicles while reducing carbon emissions in our state.” The Up & Go Electric program opened public charging stations in Lacey and Kent in the past two years and plans to open more stations in other counties where infrastructure

is needed to help meet customer demand for more charging options. “I’m very excited about this partnership with PSE, because sustainability is one of our core values,” said Donna Nygren, store manager at the Cordata Community Food Co-op. “In the 12 years that the Co-op has been open, we’ve seen significant growth in north Bellingham. This electric charging station is a step in providing valuable and sustainable infrastructure in the area.” All drivers – not just PSE customers – can use the new Up & Go Electric app to take advantage of simple mobile payment options, monitor their charging session remotely, and more. PSE is committed to working together to create a clean energy future for all while setting an aspirational goal to be a beyond net zero carbon company by 2045. To learn more about electric vehicles and Up & Go Electric, visit pse.com/ electricvehicles.

Christensen Inc. acquires the Yorkston Oil Co. Christensen Inc. has acquired the Yorkston Oil Company, an acquisition that includes the fuel and lubricant distributorship in the Irongate business park. Yorkston also operated Commercial Fuel Network sites and had a variety of commercial fuel accounts, including heating and marine fuels. At the time of the acquisition, Yorkston Oil had 11 employees, and Christensen is planning to hire more workers for the Bellingham operation. Founded in 1939, Yorkston operated for three generations. The leaders of the Yorkston company said it was important to find a company with similar values, finding that with Christensen, which also is family owned and operated. Christensen is based in Richland. “This acquisition represents a strategic investment that supports our planned growth in renewable fuels, retail fuel, lubricants and other

industrial fluids,” said Tony Christensen, president and CEO of Christensen Inc. “Through extending our geographical reach, this acquisition enhances our ability to deliver economically and environmentally sustainable solutions to customers.” This is the third acquisition for the Christensen company this year. Earlier, it acquired facilities in Seattle and Portland, Oregon. The company was founded in 1935 and employs more than 500 people.

bp takes big step into EV charging bp took its first major step into electrification in the United States with the acquisition of AMPLY Power, an electric vehicle charging and energy management provider for fleets that operate trucks, transit and school buses, vans, and light-duty vehicles. The investment is aligned with bp’s plan to scale up next-generation mobility solutions, with a goal of providing the fastest, most reliable and convenient network of charging and digital solutions for customers, including individual drivers and fleet operators. The goal of AMPLY Power has been to accelerate the transition to EV fleets by offering comprehensive solutions that make it cost-effective for operators to use EVs. The acquisition of AMPLY Power builds on bp’s existing knowledge and expertise in EVs across its core regions of the United Kingdom, Germany and China and creates the opportunity to continue growing AMPLY Power’s proven EV fleet charging services and energy management solutions to customers in the U.S. and around the globe. NCyTE Center at Whatcom Community College announces partnership with Anvil Corporation NCyTE will collaborate with Anvil to support the development of an Indus-

trial Control Systems cyber range at the Bellingham Anvil Corporation campus. The cyber range is made unique by its focus on industrial control systems security, and will be available for use by WCC faculty and students, the team at NCyTE, and Anvil employees. An ICS cyber range is an interactive simulation platform that allows users to gain hands-on experience with the practical cybersecurity skills necessary to protect and defend against challenges such as Industrial Control Systems cyberattacks. These hostile attacks can have many different results but often intend to cause shut down of a production plant, divert attention away from maliciously injected code, cause process malfunctions, or tamper with safeguards. Each of these attacks can have devastating impacts on production, supply chains and employee safety, among other things. Whatcom Community College and Anvil will use the ICS cyber range to: • enhance the WCC CIS/Cybersecurity program learning objectives for enrolled students; • support capstone projects in the WCC Bachelor of Applied Science (BAS) in IT Networking-Cybersecurity program; • provide Industrial Control Systems training for Anvil employees; • create potential internship and employment connections between future WCC graduates and Anvil personnel; and • provide future professional development opportunities for WCC faculty and NCyTE constituents. The NCyTE and Anvil partnership will also support the training and employment needs of the critical infrastructure industry sector in our region, and hopes to expand cybersecurity educational resources for other colleges and industries regionally, across Washington state, and nationally. Read more about cybersecurity training in Whatcom County on page 10.

JAN/FEB 2022 | BUSINESSPULSE.COM

BP FEATURE

PHOTO: iStockphoto.com/urbazon

In Whatcom County, cybersecurity pros trained to meet global demand Local colleges lead the way in IT security training Lorraine Wilde

n every sector of business, technological literacy has become a minimum requirement rather than a specialized skill. Ransomware, foreign hackers and security breaches make regular headlines and cause headaches for business owners, government agencies and individuals. As these external threats to our data systems and privacy continue to grow and evolve, the demand for cybersecurity professionals has expanded to include almost every field you can imagine. Educational institutions in Whatcom County — with

BUSINESSPULSE.COM | JAN/FEB 2022

major support from the tech industry — are stepping up to ensure the availability of a trained workforce to battle the ever-expanding onslaught of cyberattacks businesses and institutions will face in the coming decades. Growing demand for STEM and cybersecurity professionals A generation raised on technology are now training for and entering the workforce, with more opportunities than ever before to choose from, including in science, technolo-

gy, engineering and math. “According to a recent Washington STEM analysis, by 2030, over 40% of family wage jobs in our region will be STEM-related and require a credential past high school,” said Jennifer Veltri, the director of the Northwest Washington STEM Network and the Northwest regional co-director of Career Connect Washington. “Information technology is a key industry of focus where these jobs will reside. Already in incredibly high demand, IT career programming is vitally important to the economic success of the region and a great choice for students wanting a career rich in opportunity.” According to CyberSeek, a nonprofit that tracks cybersecurity career data, there were more than 28,000 cybersecurity professionals already working in Washington state in the past year, and more than one million across the United States. There were more than 13,500 online cybersecurity-related job openings in Washington and almost 600,000 across the U.S. over the same period. That means there are only enough cybersecurity workers in Washington to fill 74% of the jobs that employers need. The national average is even lower, at 68%. In addition, on average, cybersecurity roles take 21% longer to fill than other IT jobs. The lack of trained employees and the additional effort needed to fill positions cost businesses and municipalities millions of dollars in overhead and lost revenue each year. Businesses around the country are employing cybersecurity professionals for a range of services. For example, Ferndale-based NW Technology has a team of data security professionals who protect networks from viruses,

encrypt email to keep data secure and confidential, and protect company devices. Meanwhile, community colleges and public and private universities are rapidly developing and expanding their programs to help meet this growing demand.

in the cybersecurity field. For example, in 2011, the National Security Agency and the Department of Homeland Security designated WCC as the first National Center of Academic Excellence in Cyber Defense Two-Year Education on the West Coast. NCyTE is currently funded for the next five years by the National Science Foundation. Whatcom Community College “[Our] programs are aligned to naleads the way tional cybersecurity standards and are “One of the keys to addressing the constantly being updated to current significant cybersecurity workforce trends and information in cybersecugap is through helping communi- rity that is incorporated into the classty colleges to start or improve their room,” said Janice Walker, special projcybersecurity programs, expand and ects director of cybersecurity grants at enhance faculty training and increase WCC. “Our faculty regularly participrogram diversity,” explained Corrinne pates in workshops and professional Sande, who leads WCC’s National development trainings to keep their Cybersecurity Training & Education skills and knowledge current, which (NCyTE) Center and is the director means our students are ... aligned to of Computer Sciences and Informa- current work roles in the field. Grants tion Systems at the college. have funded state-of-the art labs and In October, NCyTE received a $1.5 equipment. Students participate in million Microsoft Philanthropies internships and capstone projects that grant for “Accelerating Community expose them to real-world skills. Our College Cybersecurity Excellence” students are employed by many local — one of many community colleges and regional companies, including across the country that will receive Amazon, Shell Oil and Puget Sound some type of support through the pro- Energy.” gram. In 2021, Microsoft committed The Microsoft grant will benefit $150 million to help U.S. government WCC cybersecurity students such as agencies upgrade protections and ex- Bellingham’s Brittany Byrtus, who is a pand cybersecurity training partner- returning adult student looking for a ships. As a company, Microsoft also career change. has dedicated $20 billion over the next “I wanted to go into a field where I five years to advance its security solu- could specialize and make a difference tions and protect customer privacy. A by protecting my community and polarge portion of those funds will be tentially the nation,” said Byrtus, who spent on the salaries of professionals received a competitive federal grant trained in the programs the company to attend. “I wanted to do something is funding. challenging that I could be proud of.” In part, NCyTE received this capac“There is strong female leadership ity-building grant because of its histo- throughout the Computer Informary of regional and national leadership

JAN/FEB 2022 | BUSINESSPULSE.COM

tion Systems program and WCC generally,” added Byrtus, who has served as president and now vice president of WCC’s Women in Cybersecurity club. “The professors have a passion for the subjects they teach, and many have real-world experience. The size of classes allows for closer engagement when questions arise. There are also close bonds with other professionals in the community, such as Technology Alliance Group for Northwest Washington, where I did a six-month mentorship with a professional in the industry.” Byrtus emphasized that the grants WCC has received include tuition and other assistance for low-income students from all walks of life. Her advice to students considering a profession in cybersecurity: “This is a lifelong learning commitment. Technology changes fast. There are many different areas within cybersecurity, so there is something for everyone. Being a person that someone can trust is necessary to work in this area. If you want something with immeasurable opportunities and are willing to put in the work, you will love it!” Byrtus plans to graduate in spring 2022 and will seek employment in the public sector, perhaps related to her previous volunteer work in disaster preparedness with the Community Emergency Response Team. At WCC in fall 2021, there were 49 students pursuing a Bachelor of Applied Science in IT networking — cybersecurity and 146 working to earn their Associate of Applied Science in cybersecurity. Students graduating with their B.A.S. earn an average starting wage of about $48 per hour,

BUSINESSPULSE.COM | JAN/FEB 2022

according to the program. At the moment, all full-time students who meet the minimum eligibility requirements are accepted to the program, which has not yet reached capacity. Students who earn their A.A.S. can head out into the workforce, stay at WCC to earn their B.A.S., or transfer to other bachelor’s degree programs, including Western Washington University’s cybersecurity program. Western Washington University cybersecurity programs Western Washington University’s computer science department has implemented a number of programs that provide opportunities for university students to expand their knowledge and experience in the field of cybersecurity. In 2016, the department began offering what is called a “2+2” Bachelor of Science degree in cybersecurity (originally called computer and information systems security). This means that students complete their first two years of cybersecurity course work in one of eight partner community college cybersecurity programs in Washington state, including WCC and Bellingham Technical College. Then they are eligible to apply to the WWU cybersecurity major at either the Bellingham or the Poulsbo campus. If accepted, students complete an additional two years of advanced coursework and internships to obtain a B.S. “We started with just four cybersecurity graduates in 2017, and that grew to 25 students earning a B.S. in 2020,” said WWU cybersecurity program adviser Laura Ghan. “Based on

the 2019/2020 Graduate Outcomes Report, about 93% of our cybersecurity graduates were employed within six months after graduation. That’s very high. To give you some perspective, regular computer science B.S. majors are closer to 63%. Cybersecurity majors also earn well. Their median starting salary is $71,492.” “The rate of employment for these students is pretty much the highest in the university for any of the degrees,” added Erik Fretheim, the director of cybersecurity programs at WWU. “Our cybersecurity students are earning more than a lot of finance and computer science students.” The WWU program courses extend above and beyond the foundation built at the community college level. “They come to us with a strong foundation that we can build on,” Fretheim said. “We add a lot of breadth to it and a very strong technical depth. We are the most technical cybersecurity program in the state.” Past WWU graduates have gone on to work for a wide range of medium to large companies, such as Amazon and Premera Blue Cross, and such local employers as NW Technology. WWU students also can opt for a cybersecurity minor or certificate; both are meant for those who want to complement their degree in another field. “Any kind of major beyond computer science and cybersecurity can take advantage of these programs,” Fretheim said. “Business, interdisciplinary studies, political science, international relations and environmental science majors are just a few examples.” Four upper-division classes are re-

quired to earn the certificate, which can be completed in a single year — accessible to those earning degrees in less-technical fields. “Everybody needs to know something about cybersecurity,” Fretheim said. “We’re trying to offer a broad education to as many people as possible. There’s a lot of value in this program even for people working outside of technology.” A bright future The demand for professionals trained in all levels of cybersecurity is expected to continue to grow. Colleges, universities and businesses hope that their efforts to train a technologically literate workforce can meet that need. WCC’s NCyTE has extended its reach into high schools. This fall, the program launched a new Advanced Placement course, “AP Computer Science Principles: Cybersecurity,” developed in cooperation with online teaching platform CodeHS and endorsed by the national College Board nonprofit in summer 2021. As of November 2021, CodeHS reported more than 1,200 students enrolled in the new course across the nation. WWU, WCC and colleges and universities throughout the country continue to evolve their programs to protect our privacy and keep us safe from the consequences of security breaches. Added Veltri: “The amazing work that Whatcom Community College is doing through their cybersecurity program, as not only a regional but a national hub, is a shining example of how to build programming toward the needs of the emerging economy and think forward toward jobs in the future.” ■

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FEATURE BP

A log loader at work. (ALRT courtesy photo)

A tale of modern logging A founding industry still thriving, changing Cheryl Stritzel McCarthy

rive almost any road in western Washington and you’ll pass seemingly endless acres of forest. Some of that wood will become houses, or kitchen cabinets, or two-by-fours for your next project. Who makes that happen? A.L.R.T. Corporation, based in Everson and often referred to as ALRT, is a big part of Whatcom County’s modern logging industry. This locally owned company provides logging, log hauling, road building, rock crushing, drilling and blasting. Logging and log hauling make up just 50% of company revenue, with road building responsible for 40% and trucking 10%. That’s less surprising when you realize that before you can do any logging, you first have to build a road into

the forest. ALRT has 55 employees and registered $13.2 million in revenue in 2020, down from $15.2 million in 2019, before the COVID-19 pandemic. From tree to board Whatcom County’s logging industry has been in a state of continual change for more than a century and a half — from the early 1850s, when Henry Roeder built a sawmill near Whatcom Creek, through the boom years of the 1920s, when Whatcom County boasted 75 sawmills, to the 2006 opening of Sierra Pacific Industries’ new sawmill in Burlington, which impacted the way ALRT does business. ALRT’s customers include large sawmills and timber-

JAN/FEB 2022 | BUSINESSPULSE.COM

In 2020, A.L.R.T. : logged 33 million board feet of timber; added 15 miles of new forest roads in Washington; reconstructed 25 miles of existing roadway;

by workers on foot with oversized chainsaws. ALRT’s tower is brought in and anchored in place with guylines. The tower is a metal tube, often 100 feet high or higher, capable of hoisting logs via cabling called a skyline. With the tower up, workers carry in enough cable to cover thousands of feet of mountainside, running from tower to tailhold (a tree, stump, or heavy vehicle) on a neighboring slope.

trucked logs and road-building material over 270,000 miles; and produced more than 100,000 yards of rock. land owners in northwest Washington: Sierra Pacific Industries, Hampton Lumber Mills and Weyerhaeuser, plus smaller outfits such as Bloedel Timberlands, Canyon Lumber, Grandy Lake Forest Associates, Great Western Lumber, and Sirios Timber Partners. When timberland owners are ready to log, they seek bids from logging companies such as ALRT. The logging company builds the road(s) in;

A tower side, meaning the equipment plus its crew, logs timber on steep slopes. (ALRT courtesy photo)

BUSINESSPULSE.COM | JAN/FEB 2022

one recent job necessitated building five bridges. Depending on terrain, road building may involve drilling and blasting. On timberland owned by Washington’s Department of Natural Resources, there are rock quarries. “If you’re building a road on a DNR, you create your own rock and use that,” said Rod Lofdahl, ALRT’s vice president and chief financial officer. “The idea is to drill and blast and crush what you need for the job. There are lots of rules and regulations. We’re one of the few companies that has our own (driller and blaster).” Most other logging companies subcontract ALRT or other specific drill/ blast companies for this process. With the road in place, what happens next depends on the steepness of the terrain. Tower logging If it’s steep, which is much of western Washington, a method called tower logging is used. Trees are felled

An ALRT sky car. (ALRT courtesy photo)

With the skyline in place, ALRT crews of what are called choker setters scramble up and among the logs, hooking them to cables. “Then they get out of the way,” Lofdahl said. People think of loggers as big and burly, but a choker setter is more likely to be lean and fit from traversing steep slopes, he said. Carriages, also called sky cars, run along the skyline carrying logs. Think of a cable car on a ski slope, only with logs instead of skiers. The tower operator brings the sky car with its logs to an open landing, where the logs are sorted before being loaded onto trucks

and rumbling away toward the appropriate sawmill. Mills specialize in certain species, say cedar or hardwood. Pulp mills make paper, and other mills crank out two-by-fours and such. The mill sells the processed wood to a retailer. Hardwood may go to a kitchen cabinet company, while two-by-fours could go to Home Depot. When the slope is less steep, ALRT uses what are called mechanical sides instead of towers. A mechanical side can mean up to three machines and their operators. One of the machines, a processor, looks similar to an excavator. The machine cuts the tree, then grabs and holds it as it limbs and sections it. Who owns all that timberland? If ALRT is working with a small owner (5 to 10 acres), the company will buy timber from the owner and sell to the mill. If ALRT is working with large outfits such as Sierra Pacif-

Bill Westergreen, left, current president and majority owner of ALRT, purchased the company from founder, owner, and president Jerry Hammer in 2006. (ALRT

courtesy photo)

History, ownership, and that name

ALRT, a logging, road building and trucking corporation in Everson, was

A state law passed in 2020 acknowledges the role Washington’s forest industry plays in removing greenhouse gases from the atmosphere. “We replant more than we cut,” Lofdahl said. “Forests are a renewable resource.” ic in Burlington, which owns its own lands plus buys standing timber from DNR lands, ALRT will contract to harvest the timber and deliver it to the mill. In the past 10 years, ALRT has shifted almost entirely to contract work, Lofdahl said. Though numbers differ depending on source, according to the Department of Agriculture, 70% of harvested timber in Washington state comes from privately owned timberlands (private meaning families, individuals and corporations). Nearly 17% of the

harvested timber comes from stateowned lands, 9.5% from tribe-owned, 2% from federally owned, and less than 1% from county- or city-owned. Nationally, 60% of America’s forest lands are privately owned. The federal government owns 30%, and state, local and other governing bodies own 10%, according to the National Association of State Foresters. The western states in general have more federal ownership than other parts of the country, Lofdahl said. Among private owners throughout the nation, the largest by far is Weyerhaeuser, a real estate investment trust, which owns or controls 11 million acres in the United States. REITs allow anyone to purchase stock. (Earlier this year, Weyerhaeuser sold 145,000 acres in the North Cascades to Hampton Resources, another timber company.) So, who owns that timberland you’re driving past? Maybe you. ■

founded in 1990 by Jerry Hammer after the dissolution of his former company, Alpine H&S, which he had started with a partner in 1965. Jerry’s brother Dick Hammer, who died recently, had retired as the ALRT vice president of timber operations. Another brother, Howard Hammer, was featured in the Winter 2016 issue of Business Pulse (https:// issuu.com/business-pulse/docs/ businesspulse_winter_16/22). Jerry, retired from ALRT, lives with his wife, Lurline, in Whatcom County and Arizona. In 2006, Bill Westergreen became

majority owner of ALRT. Westergreen, who entered the industry in the mid-1970s as a hooktender, is ALRT president and general manager. Jill Yonkman, vice president, and Rod Lofdahl, vice president and chief financial officer, are minority owners. The name ALRT doesn’t stand for anything, Lofdahl said. “I think Jerry just wanted to maintain his place in the phonebook … Not sure, we get that question a lot. We also get called Alert Logging,” Lofdahl said. When shifting tons of lumber or rock, Alert may be a good thing to be.

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BUSINESSPULSE.COM | JAN/FEB 2022

FEATURE BP

PHOTO: iStockphoto.com/Nuthawut Somsuk

State, industry must unite for business In 2022, Whatcom industries and companies face common challenges and opportunities Dustin McKissen There has never been an economic outlook in Whatcom County quite like the one companies face in 2022. By the time this issue prints, Whatcom County and the nation will have spent almost exactly two years in an economy shaped by the COVID-19 pandemic and the public policy response to that pandemic. Without a doubt, the outlook for 2022 is brighter than the outlook for 2021 — and the reality of 2020. As uncertain as this moment feels, it pales compared to the early months of 2020, when entire businesses and industries were closed with no clear direction as to when or if they would be allowed to reopen. Politicians in Olympia and the Inslee administration have seemed much less inclined to unilaterally lock down and close entire industries. Instead, businesses in nearly every industry face the same set of brand-new challenges: inflation and the result-

ing rising cost in goods and materials, labor shortages, and overregulation. Inflation Initially ignored or even mocked by politicians in Washington, D.C., inflation is doing actual damage to both businesses and households. According to the consumer price index, the rate of annual inflation hit 6.2% in October 2021, the highest increase in more than three decades. A November 2021 Gallup poll showed that 45% of American households report that price increases are causing their family some degree of financial hardship. Basic staples like milk, bacon and gasoline recently experienced historically rapid price increases. There are multiple complex reasons for the rise in inflation. The demand for expensive goods such as appliances

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and vehicles has soared during the Troy Muljat, managing broker at Mulpandemic, just as suppliers have ex- jat Group Commercial in Bellingham. perienced shortages of basic materials. Chip shortages have drastically affected the automobile industry, making Supporting our business new and used vehicles a rare community should never find on many dealer lots. As a result, prices of those goods be a partisan issue. At the have soared to historic highs. local level, policymakers In 2022, inflation is proshould actively look to cut jected to have a significant red tape and partner with impact on important Whatemployers that support the com County industries such community. as construction, housing, real estate and agriculture. — Barbara Chase, executive director “There is some good news in of the WBA the commercial construction industry,” said Lance Calloway, northern district manager for the Associated General Contrac- “The amount of cash we have infused tors of Washington. “We expect that into the system as a response to the there will be a fairly significant num- pandemic has also had a significant ber of projects that result from the impact on housing, construction and recently passed infrastructure bill, but both commercial and residential real the rising cost of goods will make all estate. That cash has to go somewhere, of those projects more expensive than and a lot of it has gone into housing. originally planned. Increases in labor That’s great for sellers, but it definitely and raw materials are making the re- hits the pocket of buyers.” sulting differences between bid and The rising cost of goods has also afactual construction costs as high as fected agriculture. 26%.” “Labor, equipment, land — the While increases in housing inven- price of everything you need to protory have (very) slightly cooled the duce crops has rapidly increased,” said residential real estate market from Dillon Honcoop, communications the highs it experienced in late 2020 director at Whatcom Family Farmand early 2021, the same dynamic still ers. “One challenge associated with holds true. Increases in material costs inflation is that it quickly becomes a have made building new houses more feedback loop. More expensive food expensive than ever. requires workers to receive higher “Lumber isn’t as high as it was, but wages. Higher wages require higher increases in the cost of basic goods prices. The loop can quickly get out of have hit both commercial and residen- control. Inflation will be a significant tial construction in a serious way,” said challenge for Whatcom family farmers in 2022.”

BUSINESSPULSE.COM | JAN/FEB 2022

Labor shortages The most universally shared challenge for employers in Whatcom County is the ongoing labor shortage, or more accurately, the ongoing labor crisis. Every employer in every industry interviewed for this article cited a lack of labor as its biggest challenge — and the shortage of employees is not limited to retail workers and restaurant servers. Employers are struggling to fill managerial and executive positions as well. “The construction industry faces an outright hiring crisis,” said Calloway, of the AGC. “For example, 92% of the industry trying to fill salaried positions are having a hard time filling those positions. Extended unemployment benefits and competition from other sectors can explain some of our industry’s struggle to fill hourly roles. Salaried positions are different, yet our members face just as much struggle to fill those roles. As an industry, we find the whole dynamic a little hard to understand.” Calloway and the construction industry are not alone. Across the country, employers are increasingly reporting instances of candidates not showing up for interviews and relatively high-level hires “ghosting” employers on their first day. In most instances, though, positions are simply remaining open because of a lack of applicants. “Labor is always an issue in our industry,” Honcoop said. “Agriculture is unique, with its own distinct labor (continued on page 23)

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issues and patterns, but we are seeing farmers suffering from an acute inability to fill positions. Labor is like any other economic input. When it is scarce, it is more expensive. And when costs rise, prices rise. When the price of food rises, the public feels immediate inflationary pressure. Families don’t always see a direct rise in the cost of steel. They definitely see a direct rise in the cost of milk.” Further complicating the matter is the fact that the unemployment rate is reaching historic pre-pandemic lows. However, given the fact that the unemployment rate measures the number of people actively looking for a job who cannot find one, the low unemployment rate and the labor shortage existing at the same time has a simple explanation: unprecedented numbers of people are exiting the workforce, with no plans to re-enter. “One contributing factor is an abundance of young workers who grew up being told that a bachelor’s degree was a ticket to a dream job,” said Barbara Chase, executive director of the Whatcom Business Alliance. “Having tens of thousands of dollars of student debt only to find that you’re working the same jobs you were before you got your degree would demoralize anyone. We need to get back to teaching kids that being a carpenter or plumber isn’t just an acceptable career decision. It is actually a smart one.”

nice to be treated like an actual partner, especially during the regulatory process.” Fortunately, there are some glimmers of hope. Voters across the country have supported more pro-business candidates, and surprise upsets One challenge associated have happened in Washington with inflation is that it and other locales that had been quickly becomes a feedback deemed unfriendly to business. loop. More expensive food “Supporting our business requires workers to receive community should never be a partisan issue,” said Chase, of higher wages. Higher wages the WBA. “At the local level, require higher prices. The policymakers should actively loop can quickly get out of look to cut red tape and partner control. with employers that support — Dillon Honcoop, communications the community. In Washingdirector at Whatcom Family Farmers ton and in Whatcom County, that seems to be treated like al businesses and industries. Some of a radical message. In other commuthat heavy-handedness results from nities, Democrats and Republicans COVID-19 mandates that failed can at least drop their swords long to account for the hiring difficulties enough to recruit new business and many industries were already experi- make companies feel welcome, apencing. For example, construction and preciated, and a like a valued resource. agricultural workers have far lower Supporting business and jobs is a winvaccination rates than other industry ning message, and we hope everyone workforces. Mandates with very lit- in Whatcom County will support our tle room for flexibility inevitably lead employers in 2022.” It’s no secret: Businesses face an upto unforeseen consequences, like the skyrocketing cost of construction and hill climb in 2022. The odds of success are a little longer when facing issues food. “I understand our community faces like inflation and a chronic, somewhat unique challenges,” said Doug Thom- mysterious labor shortage. That’s the as, president and CEO of Belling- bad news. The good news? The ecoham Cold Storage. “But legislators in nomic outlook is one thing, and ecoOlympia, the Inslee administration, nomic performance is another. With and even local Whatcom County pol- the type of business leaders who exist icymakers increasingly treat business in Whatcom County, there is every as though it were the enemy. We are reason to believe this county’s business Overregulation proud to employ the people and fam- community can exceed its own expecNearly every company or organiza- ilies of Whatcom County. It would be tations. ■ tion interviewed for this article cited the impacts of overregulation and heavy-handed mandates that have often ignored the reality facing actu-

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PHOTO: Sattva Photo

Transition Bikes puts culture, passion and riders first Company aims to provide great bikes — and a place for community Tony Moceri

BUSINESSPULSE.COM | JAN/FEB 2022

Transition Bikes co-founders Kyle Young and Kevin Menard riding on Orcas Island (photo: Oliver Parish)

obbies are the best. They are why we get up early on Saturday morning, and they are why we’re excited to get home at the end of a workday. They are that thing we do that is specific to us. There is no downside to hobbies; they are just there as a part of enjoying life. Right? Well, there is that pesky thing about hobbies costing money — with many hobbies being downright expensive. This was the scenario back in 2001 for Kyle Young and Kevin Menard. They were buddies working corporate jobs and trying to spend as much of their time mountain biking as possible. They had bikes and could ride, but wouldn’t it be great if they could figure out a way to get their bike parts at cost? They both agreed and started building and selling bikes out of their basements, and Transition Bicycle Company was born. It just so happened that spending a lot of time on their mountain bikes meant they knew what people wanted in a bike, and people started buying. By 2003, the two partners had their first commercial product available, the Dirtbag. The business was beginning to gain some traction. In 2005, they decided to move themselves and their company from Seattle to Bellingham, where they could be close to the trails they loved and could afford some real estate. As the two owners grew Transition Bikes, they slowly added to the team, though without an end goal of where they were trying to take the business. “We’ve always just kind of organically grown based on designing and building the products that we want for what we’re currently into,” Young said. “So whatever style of bike riding we’re into, that’s what we’re focused on making.” While there has been a lot of growth in the company over the past 20 years (there are now approximately 40 people working at Transition Bikes), the founders have never changed the focus — it’s all about the bike and the rider. At the beginning, the industry was dominated by large corporations that didn’t necessarily have people on the team spending time in the mud. Throughout the years, the owners have kept a steady focus on what is most important, and the company continues to innovate and put out products riders want to spend time on.

Young and Menard still get on their bikes as much as possible to ensure they don’t lose touch and forget their reason for starting the business. When time allows, that is daily. “That’s the whole point of what we’re doing,” Young said. “If we’re not out riding our bikes, then we’re not doing it right.” This mindset has permeated the culture of Transition Bikes, and the group of people there are passionate about what they do. The company has a standing Friday morning ride during which the group hits the trails. This gets people from different areas of the business interacting in a fun and meaningful way. Not everyone makes it out every week, but they know it’s an option, and there is consistent participation. This culture was created to help team members enjoy the work and stay connected to the bikes and the trails. It has developed into an organization that feels like a family, Young said. “We’ve got a family atmosphere and very much a family company,” he said. “People that we hire, they don’t leave; it’s just continuing to keep our sights on our people and making good communities. The rest, you know, the widgets we sell, you keep doing that obviously, but we measure success by virtue of, ‘Did we actually do a good job creating community, taking care of our people?’ The rest is gravy.” Keeping the focus on people has proven to be a good strategy. The company offers a variety of mountain bikes, gear and parts online and at its Outpost Bike Shop, located

JAN/FEB 2022 | BUSINESSPULSE.COM

The Outpost on Samish Way lets bikers ‘keep the party going’ after finishing a ride. (courtesy photo)

in the same building as the Transition Bikes headquarters on Samish Way in Bellingham. The company’s online presence and large social media following have resulted in the bikes being sold far and wide. Still, Young and Menard have not lost focus on where and why they started. The mountains drew them to the sport of mountain biking and led them to Whatcom County. The mountains are where the riders are. Really, the mountains are what the

BUSINESSPULSE.COM | JAN/FEB 2022

sport is all about. So, when choosing where to put the headquarters and bike shop, the owners wanted to be as close as possible to Galbraith Mountain, the epicenter of mountain biking in Whatcom County. The new Samish location not only allows the Transition Bikes team to quickly ride to the trails, but it also gives local riders easy access to the Outpost. While the Outpost does sell bikes and parts, it was designed to be much more. The vision was for a place for

riders to finish a ride at a spot where they can, as the Transition Bikes website says, “keep the party going.” That made the location all the more important. “We’re practically on the mountain; that was a very purposeful thing, Young said. “We want to engage in the community via the center point, a focal point for the community.” At the Outpost, riders fresh off the hill can grab a beer, a hot cup of coffee or some food. It’s a gathering place

Kyle and Kevin having some fun at the Duthie Hill trails. (photo: Skye Schillhammer)

Kyle catching some air at an annual company trip. (photo: Oliver Parish)

where the mountain biking community can share stories and hang out when their body is worn down or on the short Pacific Northwest winter days, when the light runs out so early in the afternoon. It’s part of the Transition Bikes goal to bring the mountain biking community together and help it flourish into the future. The company has been doing this by supporting organizations in the mountain biking community and outdoor activities in general —

and Young and Menard still want to do more. With passion for their sport running deep in their veins, they want to share mountain biking with everyone and help the sport thrive. They see the Outpost as the first step towards this. With a bit of the “If you build it, they will come” mentality, they are figuring out what’s next. “All right, how do we use this space, make people engage? Not even commercially, we really just want to have a gathering spot,” Young said. Just like when they began their business in their basements and then chose to move to Bellingham, Young

Kevin conquering the stump gap. (photo: Oliver Parish)

and Menard don’t have some target they are trying to hit. There is no vision that Transition Bikes must be a certain size or reach specific sales figures. The owners are simply focused on bringing the community together and continuing to innovate to keep delivering great mountain bikes to riders. To check out what Transition Bikes is up to, you can stop into the Outpost Bike Shop, located at 5090 Samish Way in Bellingham, Tuesday through Saturday. For more information on the business or to purchase bikes and gear, visit www.transitionbikes.com. On Instagram, go to @transitionbikes. ■

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“

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Ethos West Construction 28

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MARKETING BP

PHOTO: iStockphoto.com/graphicnoi

What Whatcom County businesses need to know about marketing in 2022 Dustin McKissen Let’s consider a hypothetical purchase: First, you consider whether Ford’s new Bronco is worth the wait. Sure, the one your friend just bought looked great — and garnered a lot of attention on social media — but the guy down at the dealership said that even if you ordered one today, the wait to have one built may take up to two years. Buying another car means no new Bronco for the next three to four years, when you can reasonably trade the alternative to the Bronco you really want in without being too far upside down on the loan.

They might be worth the wait, you think, but in four years these new Broncos will be old news. You won’t be the coolest guy on Instagram if you buy one 1,200 days from now. Plus, you need a car today. Best to take a week and mull it over. This is the consideration phase. You spend the following week researching alternatives to the Bronco, looking up consumer reports on comparable vehicles, and even test driving a few others. Ultimately, you decide that a fourdoor Jeep offers many of the same features the Bronco will and is available on the lot today. Even though you’ve made your decision, you know in your heart that you really want

JAN/FEB 2022 | BUSINESSPULSE.COM

the — and you could still be BP Bronco FEATURE swayed back to the Ford dealership, despite the two-year wait — but you end up entering the Jeep building and buying a four-door Wrangler. The post-purchase experience is so good that you end up forgetting about a Bronco and spend the next 20 years

buying Jeeps. You don’t even consider their competitors a viable option. That is the modern consideration loop in action. Customers know they need or want a product, evaluate their options, make a purchase, then hopefully become repeat customers. Vehicles are an extreme example, but the consideration loop works the same way for small purchases, too. Health and beauty products, food, clothing, electronics — it all functions more or less in the exact way described above. Over 60% of automobile purchases are made in the initial consideration phase. In auto insurance, customers make nearly 80% of purchases in the loyalty phase. What does that mean? It shows that customers purchase

BUSINESSPULSE.COM | JAN/FEB 2022

products that change very little (like auto insurance) without a second thought, with the customer often choosing to do business with their usual provider. Products that offer more alternatives with higher variability are more likely to be purchased toward the front end of the consideration loop. But good marketing can disrupt the entire loop. The new Ford Bronco is actually a good example of great marketing that allowed a new competitor to enter a new market in a later phase of the loop. Jeep buyers are famously loyal and have often owned multiple Jeeps throughout their lifetime — and there are very few alternatives to the traditional Jeep. Sure, SUVs are more popular than ever, but there is a world of difference between the crossovers that populate roads today and a four-wheel drive capable of spending days in the backcountry. Ford successfully disrupted that

loop with their new Bronco by building a great product and marketing it successfully. The reason our fictional buyer has to wait two years is because Ford sold nearly two years’ worth of vehicles based on what buyers saw online. Many of those buyers traditionally purchased Jeeps. Ford entered a market it hadn’t really competed in

since O. J. Simpson drove his Bronco down that L.A. freeway — and crushed it. Understanding the modern consideration loop allows companies to communicate their brand value in a way that creates an emotional attachment to a new market entry through authentic storytelling. That’s what brand loyalty really is, at its core: an emotional attachment to a brand. That emotional attachment can be created through the post-purchase experience. However, innovative content marketing can also create an emotional attachment when a brand communicates its values in a real and meaningful manner. Storytelling is more important now than ever. Good marketers understand that the secret to success is behavioral change. The trick to selling anything is to get consumers to do something today that they didn’t plan on doing yesterday. Good storytelling is the best way to achieve that. Here are five ways your company can tell a better story. 1. Craft a story that moves the

only audience you will ever know: you. Bottom line: if you don't care about your content, neither will anyone else. If your message doesn’t make you laugh, smile, cry, or think twice, how can you expect it to move anyone else? Don’t think of your content in terms of sales. Instead, craft a story that touches the emotional foundation of your audience. If you do that, you won’t have to worry about sales. Your funnel will take care of itself. 2. Content must educate, inspire, or entertain first — and sell second. Your blog, newsletter, eBook, articles or any other piece of written content must have value to the reader independent of whether they decide to make a subsequent purchase. Most of the time, consumers go online to learn something new, but more often than not consumers are scrolling through their feeds out of sheer boredom, or to distract themselves from the barrage of bad news with, well, more bad news. Sometimes consumers go online to buy something, but usually they have a pretty good idea of how and where they will make a purchase before they ever get online. Too often, content marketing strategies try to catch buyers in the purchase stage, rather than at the boredom/entertainment stage. Create a content marketing strategy that catches individuals when they are looking to be entertained. If you do that well, you may convert them into a buyer.

based on: • Unwritten industry norms? • A desire to appeal to every possible audience? • A reluctance to be the first? • A lack of faith in your marketing and communications team? 3. Don’t let fear get in the way of good storytelling. The only way to succeed as a marketer is to be heard, and the only way to be heard is to be fearless. How do you gauge the influence fear has in your approach to marketing, communications, and content? It's relatively simple. Do you make decisions about marketing, communications, and content

• A lack of knowledge about (or worse, judgement of ) modern, diverse cultures and generations? • The way you've always done it? If the answer is yes to any of these questions, fear is playing a big role in your marketing and content creation. Fear can be useful. For example, that guy who made the documentary where he canoodled with grizzly bears before being eaten by a grizzly bear

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• Err on the side of shorter titles, as long as the title is not so short that it cannot inform readers of what they can expect to learn.

could have used a little more natural fear encoded in his DNA. But you aren't canoodling with grizzly bears. You are running a business, and in business fear is the fastest road to irrelevancy. And irrelevancy is failure. 4. Pay attention to the little things. Here's a reality few of us would like to admit: human beings judge books by their covers — and long-form digital content is often judged by titles and photos. Titles are tremendously important to blog posts and articles, and here are a few quick tips:

SAVE THE DATE

• Put yourself in the shoes of a reader who is scrolling through a feed of some sort. That's how much time marketers have to capture that reader. • Don't get too abstract or too direct. Let the reader know what they can expect to learn without giving away the entire story.

• If you are posting a blog or article, choose an interesting photo — and make sure you have the right to use it. Football, surgery and content creation: In all three, success comes down to the little things — and the big things. Like understanding how the modern consideration loop works, and how to tell an authentic story about your brand. ■

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BP FEATURE

AMS prints on-demand labels for a local client. “When they receive this label, they get it on the product and get it out within a couple of days,” said Dave Freeman, AMS president and co-owner. “They’re producing the product at the same Special machinery has the capacity to print labels that are FDA-compliant for food

time we’re producing the label.”

products and stand up to refrigeration and freezing. (courtesy photo)

(courtesy photo)

AMS uses print to thrive in mail-dominated field From small beginnings, this company now in top 500 worldwide Cheryl Stritzel McCarthy In the beginning, in 1986, it was little more than a place for Canadians to drive into the United States to get packages. Now, this business — AMS Print, Mail, and Label Specialists — is the largest label producer in Whatcom, Skagit, and Island counties; ranks among the top 30 companies in the Northwest for print materials; and is in the top 500 such companies worldwide. And, in an interesting quirk, AMS produces more jury summons than any other single provider in the nation. How did the company get from four employees (with two of them part-time) in a little ship-and-receive storefront to today’s 30 employees in an expansive, 25,000 square-foot facility in Blaine filled with world-leading printing equip-

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ment? Dave Freeman, president and co-owner of AMS Print, Mail, and Label Specialists in Blaine, looks at the evolution of this company. How much of your business is printing? Mailing? One platform of our business is sheet-feed printing for commercial clients who need both promotional material and day-to-day forms and materials. Printing and mailing go hand in hand. What we print, we most often mail. The other platform is commercial label production, which we started in 2016. Some people will call and say, stickers? No, it’s far greater than that. Breweries, artisans, farms ... we are part of the supply chain for them. If you see 40 prod-

ucts on a grocery store shelf, we printed eight of them. We are the largest producer of labels north of Seattle and growing. It’s become well over half our business. What brings in the most revenue? One of our largest revenue sources is something we don’t advertise or promote — sounds odd, I know — but we produce more jury summons (6 million annually) than any other single provider in the country, serving more than 65 county courts and two state courts. That’s increasing as the pandemic subsides. Second, our label division is very successful. It’s the most exciting part of our business. Why does AMS matter? If the answer were simple ink on paper or on a product label, I would say very little. But we do much more. We partner with customers to provide the best quality message that a label or brochure can bring. That label speaks to who you are, what you do, and how your product brings value to your customers. The result is that great products and services are being generated, purchased and used in our community, by our community. We’re privileged to be part of that circle. Who are your customers? Most of our product labels are for regional and West Coast manufacturers, including artisanal brewery and food producers. Our commercial printing and mailing serve small, medium and large manufacturing clients from Canada and the United States.

Regional customers include nonprofits, medical providers, schools and entrepreneurs.

printing at the end of the ’90s. We did transactional documents, legal notifications, bills ... We print and mail

“One of our largest revenue sources is something we don’t advertise or promote — sounds odd, I know — but we produce more jury summons (6 million annually) than any other single provider in the country, serving more than 65 county courts and two state courts.” — Dave Freeman, president and co-owner of AMS Print, Mail, and Label Spcialists

What’s fascinating about your industry? It’s a constant evolution of technology and market trends. I suspect the next five to 10 years will bring greater change than the previous 30. How did AMS begin? We started as a shipping and receiving company primarily for Canadians to conduct business in the United States. By the late ’80s to mid-’90s, we had more than a thousand mailboxes; we were one of the largest mailbox companies in the country by then. About 95% were Canadians and Canadian businesses. We saw a need for printing and mailing for our customers to promote their products. We slowly acquired mailing equipment. From there, we experienced growth from Whatcom County printing businesses that needed reliable mail services. We made a decision to go into

Lynden’s utility bills and process and mail Blaine’s. In 2000, we built this 25,000 square foot facility on Grant Avenue in Blaine. That year, Dale Vander Stelt came on as general manager of operations, bringing a wealth of experience from being general manager at the Lynden Tribune. Dale became minority owner of AMS in 2015. We knew that would be our path. What events were pivotal to growth? We decided to invest heavily in digital print technology, and in 2013 we installed our first HP Indigo Digital Printing press. This gave us the ability to print highly personalized materials and transactional documents on time with no waste. This separated us from competitors and helped us reach new markets. We were always looking for new technology and opportunity, thus we

JAN/FEB 2022 | BUSINESSPULSE.COM

installed an HP Indigo label press in 2017, broadening our ability to serve the demand for labels on time, locally. Our staff is critical. You can have the best equipment on the planet, but without the right people occupying the right space at the right time, it would not succeed. Another milestone was 2015, when my son Jordan came aboard for sales and project management. Last year, we invested in a new system for our jury summonses, giving us more capacity and efficiency. What outside influences affected AMS? We knew we needed to adapt to the so-called paperless world, in which mailing was shrinking. The answer was variable and personalized mailings

that target known audiences. No more shotgun, but direct, marketing to the right people at the right time. We are also creating a digital storefront for our labels division. This is our biggest initiative for 2022: seamless ordering and processing for our clients. I’m proud that AMS and its staff are thriving amid constant change in the industry over the last 35 years. When did you join AMS? I came to work in 1986 for the mailbox company and purchased it later that year. The owner was a locksmith, and he’d added mailboxes when Canadians asked if they could have packages sent there. Mail was not his profession. In 1991, I sold the ship-and-receive part of the business to an employee. I

didn’t sell our client base of mailing and printing. I moved that to a new location and became a separate entity, Automated Mailing Services. That was the company name in 1992. I had graduated from Western Washington University in 1985 and joined the locksmith’s mailbox company as a temporary, stopgap job. It turned into my life. You take opportunities when they come. What do you like about Blaine? I’m a fourth generation Blaine family. Some of my kids and grandkids live here and enjoy the small-town culture. Business in Blaine has a far-reaching effect on our region while providing a good living to many in our community. ■ Answers have been edited.

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BP PERSONALLY SPEAKING

Striving for student success A conversation with Eva Schulte, the WCC Foundation’s executive director Hilary Parker

Eva Schulte is the executive director of the Whatcom Community College Foundation. The Foundation supports students and faculty at the institution, which serves almost 10,000 students annually. WCC offers more than 50 certificates and degrees, including bachelor’s degrees in IT networking – cybersecurity and applied business management. BP: How long have you been at Whatcom Community College? Where did you work previously? ES: I’ve been here since January 2020, serving the mission of Whatcom Community College and the Foundation. I came here from Kansas City, Missouri, where I was for 15 years. My family is from this area, Blaine and Birch Bay, so I was highly motivated to come here. My previous work has been in both nonprofit charitable organizations and for-profit finance. I built and led nonprofits in Kansas City and supported community organizations in five different states that focused on public policy and leadership development, mostly around what we called “economic dignity” campaigns. About five years ago I stepped into my most recent role at Travois. Travois supported affordable housing, economic development and, through my

BUSINESSPULSE.COM | JAN/FEB 2022

role, impact investing with American Indian, Alaska Native and Native Hawaiian communities. I was able to work with the president/CEO at Travois to not only build impact investing among and with Indigenous communities but also lead Travois in the way they tracked impact, resulting in a Certified B Corporation that was honored and ranked overall “Best for the World,” top 10% of all B Corps worldwide. I worked in that capacity for three years. But I have a 7-year-old who missed her grandparents and family, and I traveled extensively every week in that role, so I was really drawn to coming to Whatcom County to reconnect with my brother, sister-in-law, niece, nephews, parents and extended family. I feel really honored that I was able to join the Whatcom Community College team. When I was interview-

ing, I asked my family and friends out here what they thought of WCC, and I only heard the best. I was grateful to step into the role because it felt like a continuation of my work, which has always been about moving human dignity to the center of public life through the connection of economic opportunity. It was a different role that I said “yes” to than the one I experienced because (of COVID-19). I was imagining lots of great relational meetings and the opportunity to really learn the diverse region of Whatcom County and, in many ways, I was able to do that — but through Zoom! BP: What is the focus of the Foundation? ES: Many community colleges have a foundation, a separate 501(c)(3) that’s designed to support the work of the college through providing student scholarships and professional devel-

opment opportunities and assisting with key college initiatives. That’s our mission, and we live it out every day, sometimes responding to the urgent need, which has been especially critical of late, and other times investing in those longer-term strategic opportunities that allow learning to happen. We know we have to be nimble — like with COVID or the recent flooding — and severe inequities among our communities drive us every day in our work to limit and eventually eliminate the gap. One of the big “aha’s” we had here at the Foundation is that the rate of retention dramatically parallels the amount of financial support we give our students. Not just because of the dollars, but because they see that others believe in them and are invested in their future, giving them a pathway, sometimes directly, to employment. What makes WCC so special is that we have such strong workforce partnerships. Our professional/technical advisory leaders are really helping us to shape those connections, and our Foundation Board of Directors seeks ways to bring community not just to campus but into the experience of Whatcom Community College, so that they see student learning and the community sees themselves through our students. BP: Last year the Foundation wrapped up its first giving campaign. How did it go? ES: Igniting Futures was Whatcom Community College Foundation’s first-ever campaign, and because of our successful campaign — raising over $2.5 million — we were able to double our scholarships, to double the

(Eva Schulte courtesy photo)

When you think of all the funds that a student needs to accomplish their goals, just $1,500 can be the difference between them remaining enrolled or not.” —Eva Schulte

JAN/FEB 2022 | BUSINESSPULSE.COM

amount of our Funds for Excellence grants (which we give for innovative, equity-focused projects lead by our instructors, faculty and staff ) and to exponentially grow our emergency funding support. We are just so pleased with how generous and philanthropic the Whatcom community is. Just with our successful campaign alone we had 700 donors — and Whatcom County’s not that big! And in this last year, we’ve had 130 new donors. It’s exciting to see that even during this tough time, we have new donors — and it doesn’t matter the amount, although higher amounts do help us retain more students. It really is about seeing the opportunity to make direct, immediate change in someone else’s life.

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BP: How is the Foundation making an impact for students? ES: I am proud that our dynamic Foundation staff has led a partnership with our institutional research arm here at WCC in tracking impact. From my previous role in impact investing and finance, I knew how important it was to not just tell the story but have the numbers and data to go along with that. Our contributors to the Foundation appreciate those reports because it allows us to show the exponential impact of their contribution. We discovered through a real-time dashboard that our emergency funds retained students. When we increased funds to $1,500, we could really see the differential. When you think of all the funds that a student needs to accomplish their goals, just

$1,500 can be the difference between them remaining enrolled or not. Our campaign allowed us to double the number of scholarships we’re giving, and we filled a new round of scholarship funding this fall; every applicant was awarded. It was a one-time opportunity, given the need currently, and we were able to support all our students who applied. We’re working to grow our fundraising so we can support every student who needs just that $1,500 or $2,500, the differential between persisting or not. BP: How does the work of the Foundation connect to the greater Whatcom County Community? ES: Our workforce programs are really growing. Almost 30% of our students are workforce focused. We have real interest in connecting intentionally around immediate needs for employment, for interns, for influencing our curriculum toward longterm needs and projecting what the future of work will be for Whatcom County. It’s because of partnerships with our local businesses that those certificates and associates degrees, and our two new bachelor’s degrees, have been so successful. For example, we are really leading the field now in cybersecurity, receiving a major grant from the National Science Foundation for $7.5 million. We’re so proud of our president, Kathi Hiyane-Brown, who was invited to a White House summit on cybersecurity. She and the leaders of NCyTE (National Cybersecurity Training & Education Center), which is housed here at Whatcom, are engaged with corporate and business partners, like

Microsoft. Microsoft Philanthropies recently invested $1.5 million in NCyTE to further cybersecurity education at schools across the nation. BP: How can the community get involved? ES: We recognized there was a hunger among our supporters to volunteer and engage more. During our remote operations, we did a whole series of webinars and engagement opportunities. Out of that, we prioritized areas of college need and community interest and built what the Foundation Board of Directors calls the Orca Pod Project. We are currently working on a grant match with the Skipping Stone Foundation to support a new endowed fund that promotes inclusion, diversity and care for our planet for those students who have a passion

for the arts. We also have an Orca Pod Project focusing on STEM education, which is deeply aware of the vital role our health professionals play, and, as such, investing in our nursing students and health professionals here at WCC to gain more scholarship support for books and the resources they need, like KN95 face coverings. Another Orca Pod Project focuses on business law and the environment, which is exploring the richness of our agricultural community here. And in the coming months we are going to be recruiting more civic participation through our alumni network. BP: What are your interests outside of the Foundation? ES: I am in awe of the environment here in our region and regularly take

advantage of hiking and paddle boarding opportunities, and even swimming. I do the Birch Bay Chamber of Commerce Polar Bear Plunge. My daughter is enjoying learning sustainable fishing and learning to backpack. We’re grateful that we’ve landed in such a beautiful community. It’s an important part of my life to give back regularly on other philanthropic boards. Right now, for example, I sit on a board of directors that supports sending girls to school in Mauritania, Africa, and I serve on the board of directors and executive committee of the national Sierra Club Foundation. I oversee the grants committee and support the charitable and educational work of the Sierra Club Foundation. ■

JAN/FEB 2022 | BUSINESSPULSE.COM

BP ENVIRONMENTAL POLICY OP-ED

Two legislative proposals tackle challenges to Washington forests Todd Myers Two proposals have emerged for the next legislative session to address Washington’s forest health crisis and the impact of recent wildfire. The Outdoor Recreation and Climate Adaption (ORCA) proposal from Rep. Mary Dye, the ranking Republican on the House Environment Committee, would allocate funding from the recently passed climate tax to treat unhealthy forests. The entire ORCA package includes other elements related to recreation, the cleanup of Puget Sound, and reducing the risk from flooding, but the forest health funding delivers on a promise legislators made in 2021 to reduce the risk of catastrophic wildfire in state forests. Additionally, Lands Commissioner Hilary Franz introduced the “Keep Washington Evergreen” plan to reforest burned areas and purchase land at risk of being converted to development. Her proposed legislation requests funding from the capital budget to purchase at-risk forestland. These bills demonstrate that forest health and conservation have again become a major environmental focus in the state. Unlike the timber wars of the 1990s, both proposals are premised on the recognition that forests that are actively managed with thinning and sustainable harvests, are environmentally beneficial.

ORCA – Funding forest health restoration There is bipartisan agreement that Washington faces a forest health crisis, with 2.7 million acres of unhealthy forest in central and eastern Washington. Earlier this year, the legislature unanimously adopted HB 1168 which creates a budget account to “monitor, track, and implement certain wildfire preparedness, prevention, and protection purposes.” The Legislature allocated $131 million for the 2021-23 biennium, and HB 1168 notes that “The legislature intends to provide $125,000,000 per biennium over the next four biennia for a total of $500,000,000,” but does not provide a predictable source of funding for those biennia. Additionally, up to 60 percent of the funding promised in HB 1168 can be used for firefighting preparedness, rather than projects that reduce the risk of catastrophic fire. Ultimately, even if the legislature allocates the funding, as little as $15.6 million a year could be used for “Fire prevention activities to restore and improve forest 28 health and reduce vulnerability to drought, insect infestation, disease, and other threats to healthy forests.” Meaningful progress in treating fire-prone and unhealthy forests has been difficult because harvesting and thinning often costs more than it yields, even when some timber revenue is generated. Without a source of funding, there will be very little progress toward reducing the risk of recurring

BUSINESSPULSE.COM | JAN/FEB 2022

PHOTO: iStockphoto. com/KingWu

catastrophic wildfire we’ve witnessed in recent years. The cost of meeting the goals of the Washington State Department of Natural Resources’ 20-year Forest Health Plan is likely to be hundreds of millions, or billions, of dollars over the course of the plan. The ORCA proposal seeks to fill the gap between what has already been allocated and the funding needed to make forests healthier and more fire-resistant in the future. ORCA would allocate $125 million per biennium from revenue created by the state’s new CO2 cap-and-trade tax for forest health projects. That would amount to about 14% of the total anticipated revenue from the CO2 tax. Although the cap-and-trade legislation allows funding for forest health projects, none of the funding is dedicated to those types of projects. Some of the money directed by ORCA would be allocated by a Community Economic Revitalization Board that would fund infrastructure in timber and farming communities. A lack of timber infrastructure, including mill capacity, makes it expensive to harvest in some parts of the state. Timber from unhealthy forests is already low-value, and a lack of infrastructure increases cost by making it more difficult to get logs to market. ORCA funding would also reimburse small forest landowners for a portion of the timber they are required to leave along streams to provide shade. The Forest Riparian Easement Program faces a huge backlog of applications because funding has been inadequate. Created as part of the forests and fish regulations, the goal is to recognize that society benefits from cool streams and salmon habitat, so the cost of those regulations should be paid by taxpayers rather than imposing the entire cost on families. Currently, there are more than 100 forest projects waiting for funding from the FREP, amounting to $10.4 million. The combination of these projects would help reduce the

environmental impacts of rising temperatures, while keeping forest steams cool, building the state’s logging capacity, and funding projects that restore the health of Washington’s forests. Land commissioner’s plan to restore burned lands and prevent conversion Franz also introduced a plan to reforest lands burned by wildfire and to prevent loss of forestland to development. Franz is asking for $1 million to fund planning with the goal of improving the health of one million acres of forestland and replanting an additional one million acres by 2040. The proposal also calls for $25 million in the capital budget to create a “rapid response fund to acquire critical forested lands at risk of permanent conversion.” The briefing from Department of Natural Resources staff notes that between 2007 and 2019, about 400,000 acres of forestland were converted to some form of development. Not surprisingly, the vast majority of lands at risk of conversion are in or near urban growth boundaries. Although the plan says it will “harness the potential of carbon markets, other voluntary tools and incentives,” the creation of the fund recognizes that landowners can earn more by developing the land than they can by keeping it in forestry. The taxpayer support is designed to make up the gap between the current value and the potential value once developed. Although this funding will help prevent some land from being developed, it is a bandage that doesn’t address the underlying challenges that make forestry economically risky. The simple problem facing forestland under pressure from growth is that the value of housing and development is growing as demand continues to outstrip supply. That is compounded by a lack of timber infrastructure – including loggers and truck drivers – which makes it dif-

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ficult for those who want to keep their land in forestry by earning income. The proposal by some environmental groups to shut down all timber harvesting on state trust lands in western Washington would exacerbate that problem by reducing the market for companies and workers who provide services to working forests. Family foresters are caught between growing incentives to convert and increasing challenges bringing timber to market. No single piece of legislation will be able to address that problem. The transfer of development rights, where landowners are paid for rights that are moved to facilitate construction elsewhere, is one good tool that preserves the value of land for families while maintaining the ability to build homes to meet growing demand. The commissioner’s proposal does recognize the value of working forests,

BUSINESSPULSE.COM | JAN/FEB 2022

and that is very positive. The targets of one million acres preserved and restored, and the long timeframe of two decades, are more political than realistic. The balance of housing costs, working forests, and forest restoration is an important discussion even if the scope of the proposal is unrealistic. Conclusion The threats to Washington’s forests from fire and economic pressure have become more apparent in recent years. By attaching to a predictable source of revenue, the ORCA plan guarantees future funding to address Washington’s forest health crisis. A long-term source of revenue is required if the state is going to address the massive backlog of work that needs to be done in state forests. The Keep Washington Evergreen proposal sets aggressive goals, but the

funding is unlikely to make significant progress in meeting those targets, in part because the legislation doesn’t address the underlying causes of forest conversion. The intent of the legislation is positive, however, and it would help address reforestation of burned areas. It is positive that both proposals recognize the need to take action to improve the health and sustainability of Washington’s forests and that working forests are good for both our economy and the environment. Todd Myers is the director of the Center for the Environment at Washington Policy Center. He is one of the nation’s leading experts on free-market environmental policy. Todd is an author and researcher. He formerly served on the executive team at the Washington State Department of Natural Resources.

POLICY BP

Reason for optimism in 2022: three new ways local businesses can engage on policy issues in the new year Dann Mead Smith As business owners and workers at businesses across Whatcom County, you are busy balancing your work and family life while at the same time trying to keep an eye on topics that impact you. There are so many issues coming out of local governments in Whatcom County and, of course, at the state and federal levels that impact businesses and their ability to grow and hire more workers, which is why it is important to become involved with impactful advocacy organizations like the Whatcom Business Alliance. As we start a new year, it is exciting to see three new organizations that are now operating in our state that can compliment the great work of the WBA and other organizations in Whatcom County and help you stay

up-to-date on issues as well as offering ways for you to engage and get involved. The Center Square/Franklin News Foundation The Center Square was launched to fulfill the need for high-quality statehouse and other public policy news. The focus of its work is state- and local-level government and economic reporting. A taxpayer sensibility distinguishes its work from other coverage of state and local issues. As a result of this approach, readers are better informed about the focus of state and local government and its cost to the citizens and businesses whose tax dollars fund governmental decisions. The Center Square engages readers with essential news, data and analysis — delivered with velocity, frequency and consistency. Stories are distrib-

uted through three main channels at no cost to readers: a newswire service, TheCenterSquare.com, and social media. The Center Square has launched a new Washington state bureau, which includes an editor and reporting staff based here in Washington and now produces a weekly email compiling their recent articles and daily stories that are being picked up by newspapers, TV and radio across our state. I encourage you to sign up for Washington state stories at https://www. thecentersquare.com/washington. Change Washington Change Washington is a strategic communications organization focused on bringing a business perspective and common sense to policy discussions across the state. Though not directly involved in last year’s Seattle election and not supporting candidates,

PHOTO: iStockphoto.com/ra2studio

JAN/FEB 2022 | BUSINESSPULSE.COM

Change Washington has been talking about public safety, homelessness and policing issues for over a year. Last fall’s election sent a message that it’s time for a dramatic shift in Seattle. ChangeWA’s work has helped move the conversation towards a more balanced approach to public safety and government accountability, and in 2022 it will be taking that message

and ability to educate voters statewide, which includes providing action alerts so people can quickly and easily make their views known to local and state policymakers. For more information go to https://changewashington.org. League of Our Own Washington And for those who want to take

Create your company profile and start posting jobs TODAY! www.yeswhatcom.com A 501c3 organization. Part of the WBA Youth Engagement Initiative

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BUSINESSPULSE.COM | JAN/FEB 2022

their interest and activity with policy to the next level, there is League of Our Own Washington, a new organization focused on recruiting and training women to run for office. Developed after Major League Baseball’s recruiting and training model, League has already recruited over 80 fiscally conservative women to run for office now or in the future (prospects), 26 of whom were on the 2021 general election ballot, and over 50 volunteer scouts and coaches to help these prospects become great candidates and leaders. The League hit it out of the park in its first year, with 17 candidates who went through the training program winning their races last fall (seven are new school board members, five are city council members, two new port commissioners and even three will be mayors!), most of whom were firsttime candidates. As the League WA’s executive director, Katlin Vintertun, said on election night: “This is what it is all about: talented, smart, qualified women who can relate to voters and win in tough districts/cities.” Go to https://leagueofourownwa. org for more details. With these new ways to engage on policy issues, Whatcom County and our state will positively benefit from business leaders and workers like you getting involved and sharing your expertise. Dann Mead Smith was the president/ CEO of Washington Policy Center for 20 years before forming The Mead Smith Group last fall and working with groups such as Project 42, a new nonprofit organization created to change the course of Washington state. He is a WWU grad and lives part-time in Birch Bay.

EDUCATION BP

Some of the career choices available to maritime graduates include: • Ship’s Officer (deck or engine) • Chartering • Ship Operations • Brokerage

PHOTO: iStockphoto.com/lindsay_imagery

• Shipping Finance

Fund helps youth enter maritime work Blue Water Scholarship Fund founded by friends who benefited from the maritime industry

• Ship Agency • Trading • Multiple Engineering Disciplines • Naval Architecture • Military Service

Tony Moceri Graduating from high school and figuring out what to do next is a complex proposition these days. College tuition is through the roof, as is the cost of living across the board, leaving many teens wondering where to go and what to do. Attending college can leave people with debt they will be paying off for years, and entering the workforce means working their way through the ranks to reach a decent wage. The Blue Water Scholarship Fund tries to shed some light on a path that few are considering because they know nothing about it. Founded in April 2017 by Jaime Cleveland, John Curtin and Jim Hoy, the Blue Water Scholarship Fund helps spotlight the great opportunities in the maritime industry while widening the path to good jobs for youth. The three

founders all came from humble beginnings and happened into the maritime industry, which led to rewarding and lucrative careers that allowed them to travel the world. “The maritime industry is like a very well-kept secret in the United States,” Cleveland said. He and his partners want to change that while helping people get into those careers with a financial boost. Six colleges around the country offer four-year degrees focused on the maritime field. There are a variety of paths offered, including ship operations, brokerage, naval architecture, ship’s officer, trading, or military service. These degrees provide direct career paths in a high-demand arena while also teaching real-world skills that are transferable outside of the maritime industry. This combination allows

JAN/FEB 2022 | BUSINESSPULSE.COM

The six state maritime Academies located throughout the USA: • Texas A&M Galveston Maritime Academy • State University of New York (SUNY) Maritime College At a recent dinner with nine cadets (from Washington, Hawaii and California) after spending the day on California Maritime’s campus. Front left, John Curtin, BWSF founder and front right, Jaime Cleveland, BWSF president.

graduates to find employment in high-paying jobs after college. “People don’t know that all these maritime schools, at one time or another, show up regularly beating many of the Ivy League schools on return on investment,” Cleveland said. Most are state schools that are cheaper than private schools and will cost approximately $100,000 for a degree. The high wages paid in the industry make this a much better investment than many other degrees, and for those who need financial assistance, the Blue Water Scholarship Fund is there to help. The team of friends set up this nonprofit to operate with very little overhead so that all the money donated can go directly to helping those who need it. There are no paid positions, yet the founders spend a great deal of time ensuring that recipients of funds are deserving and mentoring those recipients to maximize success for the individual. Many of the youth they are helping get going in life come from disadvantaged backgrounds. The organization is not looking for students with the best grades or highest test

BUSINESSPULSE.COM | JAN/FEB 2022

scores but individuals with a desire to take a path that can change their and their families’ lives for the better. “A couple of thousand dollars, which is not going to change most people’s lives, can make all the difference,” Cleveland said. As of the fall of 2021, The Blue Water Scholarship Fund had awarded $285,000 to 81 recipients since the initial scholarships in 2019. The team is pleased with the lives they already have positively impacted and are looking to continue to grow. Cleveland recently moved to What-

• Massachusetts Maritime Academy • Maine Maritime • California Maritime • Great Lakes Maritime com County and is looking for ways to be a part of the community and share the organization’s message locally. He and the rest of the team can be contacted through the website, https:// www.bluewaterscholarshipfund.org. On the site, visitors can learn more about the maritime industry, the colleges and ways to contribute to the organization.

BWSF’s three founders with the one of the first recipients and their family at the annual NY Maritime College’s homecoming.

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• Scraping / Land Leveling • Underground Utilities • Structural Concrete

• Site Prep / Clearing • Environmental Cleanup • Excavation / Demolition

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JAN/FEB 2022 | BUSINESSPULSE.COM

BP FINANCE

PHOTO: iStockphoto.com/alphaspirit

Four tips for effective succession planning The earlier you begin the conversation about transitioning your business, the more options you will have Justin Brown, CPA got it off the ground. However, having a plan doesn’t mean you’re leaving your business today. In fact, most business succession plans that we help implement for businesses take five to 10 years. The earlier you begin the conversation about transitioning your business, the more options you will have. Perhaps the biggest advantage of starting early is the opportunity to maximize your business’ transaction price. opportunities. As we’ve come alongside businesses to help them with When it comes time to sell, everyone wants top dollar for succession planning, we’ve noticed a few key themes. Fol- the company they’ve built up for years through hard work lowing these four tips can make succession much easier and and sacrifice. To ensure this happens, the succession planning dialogue needs to start early. This opens the door to more successful. more strategies and transaction price optimization. Start now It sounds like a cliché. But we mean it when we say, “Start Consider your personal plan first The most successful succession plans we’ve helped imnow.” It might be scary or daunting to think about transitioning your business, especially when you feel you just plement are the ones in which the owners consider their Transitioning a business in any industry is undoubtedly difficult. As a business owner, you’re likely not only responsible for business operations and leading workers, but you’re often the one who carries the brand recognition of your business and drives revenue

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personal plans first. The business’ path forward intimately relies on what you want to accomplish personally, as an owner of the business. We highly encourage any owner to complete a personal financial plan for themselves and their family, as it can help you answer critical questions, such as: • “How and when will I retire?” • “What are my financial needs?” • “What do I want to do in my retired years?” • “What are my personal goals outside of the business?” This process uncovers critical information that helps pave the path for the business, including timeline, required business value, and selling vehicle options that align with your overall goals. With a documented personal financial plan, you’ll be able to see numbers on paper that will help chart the course forward for your business and hold you accountable to reaching your desired outcome. Get out of the weeds Business owners are a unique breed, having their hands in more activities than they would typically like. As part of your business succession plan, we recommend starting to build a management team around you. This may include chief financial officers, controllers, operation managers, and maybe even business developers. And once you’ve added or built leaders around you, share the knowledge you have with them. If you’re the only one in your business who understands the operations and generates revenue, you’ve unintentionally backed yourself into a corner. Remember, potential buyers of your

Business owners are a unique breed, having their hands in more activities than they would typically like. As part of your business succession plan, we recommend starting to build a management team around you. business aren’t buying you, they’re buying your business. Your business is much more attractive to a potential buyer if its strength and stability look promising beyond your departure. This requires you to get out of the weeds and start building a team around you to build strength and skill outside of just yourself. Don’t overlook key employees You have plenty of vehicle options to consider when transitioning your business, including a strategic sale to an investment firm, selling to a competitor who wants to expand its brand or explore your specific niche, family members, or an employee stock ownership plan. However, time and time again, we encourage owners not to overlook their key employees as an option for transitioning ownership. Here are a few reasons why: Key employees are typically invested and believe in your brand. This may mean that the core values, strategy and mission you’ve built will continue even when you’re no longer an owner. Selling to key employees usually means you can structure your transition to meet your specific needs and wants. If you were to facilitate a sale to a third

party, your control of timing and design often takes lengthy and nuanced negotiations. Employees who will one day become owners are interested in maximizing value, bringing in new business, training staff and protecting the business’ stability. This helps bring additional leadership to the table while you’re still sitting at it. Transitioning to key employees can be a multiyear process, allowing you to control the timeline while getting your new co-owner(s) up to speed. Additionally, while you’re in the process of transitioning, your salary, distributions and perks can continue for several years. With a third-party sale or employee stock ownership plan, this continuous cash flow isn’t typically available. In conclusion Owning a business can sometimes feel like delayed gratification. Most times, we see owners tirelessly working to build, build, build — wondering when they can enjoy the growth and success they’ve achieved. Starting the conversation about succession planning doesn’t mean you’re leaving your business today. However, it does provide you the peace of mind that the results of your hard work will continue when you’re ready to start checking things off your bucket list. Justin Brown is a partner at Larson Gross CPAs & Consultants and the firm’s construction practice leader. He serves both owner-operated businesses as well as professionally managed enterprises and specializes in tax, financial statements and business consulting. He has years of experience coming alongside business owners to help them with ownership transition plans and strategic management planning. For more information, visit https:// larsongross.com.

JAN/FEB 2022 | BUSINESSPULSE.COM

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BUSINESSPULSE.COM | JAN/FEB 2022

POLICY BP

Going into a new year, Washington continues to face numerous challenges. Thankfully, a lack of revenue isn’t one of them.

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Washington state is awash in revenue How to spend wisely from the growing surplus Dave Mastin When lawmakers convene in January for the 2022 legislative session, they will find some things have changed significantly since they adjourned the prior session in April. For starters, the state is awash in revenue. Even before the close of the 2021 session, the combination of a growing economy and billions in federal stimulus dollars meant Washington’s budget outlook was solid. But the last few months have seen the picture go from solid to positively flush. Following the state economic forecast in November, the Washington Research Council reported the four-year outlook had swelled to more than $8.6 billion in unrestricted reserves. At the same time, the caseload forecast — the amount the state is expected to spend for ongoing services — is falling, in part because school class sizes are not as large as

expected. As of November, the amount the state expects to spend had dropped more than $645 million from the previous forecast. All of this means that one of the biggest challenges facing lawmakers in 2022 will be determining what to do with all the money. Tempting as it might be to spend it all on new programs, that would be a mistake. Instead, lawmakers must consider using some of the surplus to rebuild reserves, ensuring Washington is prepared to weather the next downturn. And the time is right to seriously consider targeted tax reductions, a move that would end years of tax increases. Just in the past three years, lawmakers have raised 22 different taxes that will generate $40 billion in new revenue over the next decade. With so much money coming in, they could use the 2022 session as opportunity to provide some relief to the populations hit hardest by the pandemic. But while some things have changed since the end

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of the previous legislative session, other things, unfortunately, have not changed as much. Although the pandemic is not in the same place as it was last spring, it is still with us, which means the 2022 session will be a hybrid of in-person and virtual meetings, similar to the 2021 session. Some of the issues facing employers are the same, too, from the labor shortage and supply chain disruption — which have only intensified in recent months — to the lack of affordable child care and rising concerns about inflation. One bright spot amid all the challenges is the opportunity that lawmakers will have in the upcoming session to make headway on the goal of doubling Washington’s manufacturing sector. Last session, in a rare

moment of unanimity, every legislator in the state House and Senate voted to approve legislation calling on Washington to double the number of people who work in manufacturing in 10 years and to double the number of women- and minority-owned manufacturing firms. It’s an ambitious goal that won’t be achieved without a long-term, focused effort. Lawmakers can demonstrate their commitment to the goal by following up on last year’s vote with concrete action this year to help Washington achieve the goal of doubling its manufacturing sector. That means first doing no harm. Lawmakers must avoid raising costs on employers; that means not raising taxes and not taking other actions that raise the cost of energy or add burden-

some regulation. Beyond that, there are positive steps they can take, such as building on the recently passed federal infrastructure package with a state transportation package, addressing the lack of affordable child care, and protecting Washington’s low-cost energy, which is one of the state’s main competitive advantages. Going into a new year, Washington continues to face numerous challenges. Thankfully, a lack of revenue isn’t one of them. Dave Mastin is vice president of government affairs for the Association of Washington Business, Washington’s state chamber of commerce and manufacturing association.

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PORT OF BELLINGHAM UPDATE BP

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Economic development continues as top priority in the coming year Ken Bell Let me start by saying thank you to the business community for supporting my candidacy. I am honored by the tremendous outpouring of support, and I hope to represent you well during the next four years. The Port of Bellingham will look exactly like it did over the last four years, so you can expect more of the same from the Commission. Michael Shepard was easily re-elected, and Bobbie Briscoe will be there for at least two more years. We all work well together and have a mutual respect, which goes a long way towards moving the ball down the field. On the waterfront, we renegotiated our agreement with Harcourt and put 7.8 acres back into Port control. We will be actively seeking projects for those properties. We will have a request for proposals issued for a hotel/convention center project at the Board Mill site. Harcourt will continue to finish what they started and build its condo project and retain ownership of the Granary building. Whatcom Community Foundation (Millworks LLC) is spearheading a commercial kitchen and food campus project, in

partnership with Mercy Housing, to build an affordable workforce and family housing project and educational center. You will see construction on that property late 2022 and early 2023. You will see the retail community around the pump track continue to grow in 2022 as we add more vendors at the container village called Trackside. Interest is high from vendors, so expect more activity on this property. The greatest accomplishments for this Commission and our amazing staff was our success at Bellingham International Airport. We brought in Southwest Airlines and reached an agreement with Alpha Air Park to develop a private commercial facility at our old Washington International Guard site. Southwest Airlines will open new avenues for air travel and has committed tremendous resources to support the expansion of services at BLI. The addition of a major airline brings increased competition and access to more markets. We expect to see more cities added as soon as the border with Canada finally opens and Southwest is able to assess the needs of our community. The private investment by Alpha will significantly enhance corporate travel into this area and will enhance our visibil-

JAN/FEB 2022 | BUSINESSPULSE.COM

ity and profile within the commercial airline community. At the waterfront, a landmark agreement between the Lummi Nation and the Port removed challenges to repairing and replacing existing infrastructure. The agreement also provides the tribal fishing community with much-needed moorage. We are now in the process of rebuilding critical infrastructure and recently purchased a container crane, so this area will be adding jobs soon. ABC Recycling will begin shipping here this year, and we will continue to ship rocks from Skagit County to the Columbia River to shore up damaged levees under an agreement with the Army Corps of Engineers. The United States Maritime Administration recently designated

Bellingham a “Marine Highway” with connections to Southern Oregon and San Diego. With improvements to the dock and a reconnection to the railway, we can begin receiving shipments as soon as agreements are in place. We are committed to improvements at Blaine Harbor and the I & J Waterway and will finish the work we started in those crucial employment centers. Rural broadband continues to be a high priority. The Port is committed to putting in infrastructure so it can be accessed by vendors serving every household in the county. We learned how important this was during the pandemic. We have started the work necessary to make the Georgia Pacific Aerated Stabilization Basin pond a usable asset. The Port will be cleaning up this area by dredging the pond and creating new

BELLINGHAM’S PREMIER GOLF DESTINATION

industrial land on the waterfront. All of these projects are budgeted and represent our priorities for the coming year. In addition, we will continue to focus on economic development and maintain operations at the Ferry Terminal and rail facilities in Fairhaven. ■ Bellingham Port Commissioner Ken Bell has been a Bellingham business owner for over 20 years. He is president of Best Recycling, a waste management company known for its ability to work in very remote locations like the Yukon Territory, Alaska, Antarctica, Greenland and the Aleutian Islands. Bell is also CEO of the Iron Creek Group, a company with patented revolutionary thermal remediation technologies used for cleaning up contaminated soils. He has worked with major ports throughout the world and has experience working on contaminated property redevelopment projects like those that exist at the Port of Bellingham.

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Business Pulse magazine January | February 2022

Articles inside

Effective succession planning depends on an early conversations about transition

Blue Water Scholarship Fund helps youth enter maritime work

Three new ways businesses can engage on policy issues

Two legislative proposals tackle challenges to Washington forests

Port of Bellingham continues economic development priority