Business Pulse magazine July|August 2019 by Business Pulse magazine

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JULY/AUGUST 2019

100 PRIVATE COMPANIES IN WHATCOM COUNTY

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EXECUTIVE COMMITTEE | Jane Carten, President/Director, Saturna Capital; Pam Brady, Director NW Government & Public Affairs, BP Cherry Point; John Huntley, President/CEO, Mills Electric; Tony Larson, President, Whatcom Business Alliance; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC BOARD OF DIRECTORS | Janelle Bruland, President/CEO, MSNW; Tyler Byrd, Founder/President, Red Rokk Interactive; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Owner, Tradewinds Capital; Jonathan Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein, Sharpe & Serka; Sandy Keathley, Founder, K & K Industries; Lynn Murphy, Sr. Government Affairs Rep, Puget Sound Energy; Laura McKinney, NW Regional Government & Public Affairs, Alcoa Intalco Works; Andy Riddell, NW Business Banking Manager, Wells Fargo; Becky Raney, Co-owner, Print & Copy Factory; Sarah Rothenbuhler, Owner/CEO, Birch Equipment; Patti Rowlson, Owner, PR Consulting; Galen Smith, Owner, Coldstream Farms; Billy VanZanten, President, Western Refinery Services, Josh Wright, VP/Broker, Bell-Anderson Insurance For editorial comments and suggestions, write editor@ businesspulse.com. The magazine is published bimonthly at 2423 E. Bakerview Rd., Bellingham, WA 98226. 360.746.0418. The yearly subscription rate is $30 (U.S.). For a free digital subscription, visit businesspulse.com. Entire contents copyrighted © 2019 Business Pulse. All rights reserved. POSTMASTER Send address changes to Business Pulse, 2423 E. Bakerview Rd., Bellingham, WA 98226.

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THE TOP 100

PRIVATE COMPANIES

FEATURES

inside

PULSE

IN WHATCOM COUNTY By Business Pulse Staff

This year, for the first time, we decided to total the annual revenues of the Top 100 private companies in Whatcom County, using the low-end figure where there was a range. The result— nearly $5 billion—or more precisely, a whopping $4,985,000,000! Besides showing a high degree of profitability, the 2019 list contains a number of businesses that are marking milestone anniversaries. These include Morse Steel Service (135 years), Blythe Plumbing and Heating (115 years), Allsop (55 years) and Barlean’s (30 years). Each is featured in a story on the following pages. A number of other companies have appeared on the list for many years, as well, evolving to sustain their success, often while transitioning to new leadership.

It’s also clear from the list that Whatcom County possesses a diverse economy. Construction, technology, maritime, retail, agriculture, manufacturing, hospitality are among the industries represented on the Top 100 Privately Owned Companies in Whatcom County. Criteria for being included in the Top 100 include a company having its corporate office in Whatcom County and earning 2018 revenue above $7 million. Companies are ranked by their 2018 revenue. See who’s on the list and join us in thanking them for providing many of the jobs and plenty of tax revenue for local and state governments.

By Business Pulse Staff The list of Whatcom County’s Top 100 Private Companies; can you guess the total revenue they generate?

heir to the

throne? A wave of boomer-owned companies are heading into transition

40 | BUSINESSPULSE.COM JULY/AUGUST 2019

What happens when business owners retire? By Cheryl Stritzel McCarthy

ore than 2,000 businesses in Whatcom County have owners who are likely to retire in the next decade. Without an exit-and-successor strategy, that translates into 17,000 Whatcom County jobs that could vaporize, according to a recent report. The $590 million payroll and $3 billion revenue those businesses currently generate show the possible impact if even a percentage of them liquidate after their owners retire. Yet most business owners don’t have a succession plan, said Mauri Ingram, President and CEO of Whatcom Community Foundation, which collaborated with the California-based nonprofit Project Equity to produce the report. The wave of potential closures or sales is accelerating as today’s reinvigorated economy encourages aging owners to retire. This surge of baby-boomer owners looking to their next phase of life has particular implications for Whatcom County. Wages and salaries here are generally lower compared to similar communities across the state, Ingram said. Effectively, that’s built-in cost control for buyers. “It’s not universal; some businesses here pay very well,” Ingram said. “But that (general) depression in wages and salaries makes acquisitions here attractive to others.” Statistics don’t exist on who is buying Whatcom County businesses, but CJ Seitz, Director of Western

Washington University’s Small Business Development Center, said most buyers are not family members or employees. That may change with recent federal legislation (Main Street Employee Ownership Act, passed August 2018) opening up employee ownership to Small Business Administration financing. Advantages to employee ownership, in all its varied forms, include better wages and benefits, increased productivity, and better civic engagement, Ingram said, adding that “we feel differently about things when we own them.” Seitz mentioned benefits that include motivated buyers, easier knowledge transfer, usually a smoother transition of leadership, more talent retention, and market/vendor familiarity. Drawbacks can include difficulty in qualifying for financing, lack of preparation for greater responsibility, and a costly, complex set-up process. But, “If all parties are willing to work, there are some amazing benefits,” Seitz said. Nationally, employee-owned businesses are 25% more likely to stay in business, four times less likely to lay off workers during the last recession, have employees with 2.5 times greater retirement accounts, and showed 25% higher job growth over a 10-year period than comparable companies without an Employee Stock Ownership Plan (ESOP), according to the National Center for Employee Ownership. Employee-ownership can deliver tax benefits to sellers who meet criteria, Ingram said. “Our emphasis is to make JULY/AUGUST 2019 BUSINESSPULSE.COM | 41

By Cheryl Stritzel McCarthy What happens when business owners retire? What’s your succession plan?

Construction industry struggling to fill good jobs

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By Dave Brumbaugh

n improved economy and a low unemployment rate are wonderful news to everyone—except businesses trying to A find skilled employees to meet the demand for their products

and services. Whatcom County’s non-seasonally adjusted unemployment rate was 6.5% in February 2016, but dropped to 4.1% by September 2018, according to the Washington State Employment Security Department. Since then, it has hovered around 5% and been accompanied by strong demand for commercial and residential projects, making the problem particularly acute in the construction industry. Nationally, current estimates indicate there are about 300,000 unfilled construction jobs, and the industry is expected to need an additional 747,000 workers by 2026, according to the U.S. Bureau of Labor Statistics. A 2018 survey of nearly 375 members of the National Kitchen and Bath Association found that nearly two-thirds of the respondents reported they had difficulties hiring skilled workers in the previous year, and nearly 70% felt the problem had gotten worse since 2016. “In talking with many of our member general contractors and subcontractors, they say it’s very hard for them to find entry-level workers,” said Lance Calloway, Northern District Manager for Associated General Contractors of Washington. “They have challenges in finding candidates who have a quality work ethic, can pass a drug test (marijuana disqualifies employment because it’s a workplace-safety issue), and are willing to shoulder responsibility. “The majority of our contractors have indicated that they need 15%-20% more skilled crew members to enable them to meet their needs. There are lots of good-paying positions with great benefits that remain unfilled,” Calloway said. “All one needs to do is be willing to work hard, learn, and show that they’re dependable. Our contractors will provide the training and education to develop them into skilled craftspeople. It’s beneficial to all involved, as long as the crew member is willing to learn and work hard.” Brad Barron of Barron Heating & Air Conditioning, with locations in Ferndale, Burlington, and Marysville, described a similar situation. “In the present job climate, it’s very difficult to find good, skilled labor,” Barron said. “This is especially true for trades positions that require licensing, such as HVAC-service technicians, electricians, and plumbers.” Increasing the job pool In response to the tight job market, companies are offering hiring bonuses and increasing their advertising. Bellingham Cold Storage, Samson Rope, and WorkSource Whatcom have held job fairs this year, while some are getting innovative in their recruitment and retention efforts. “Our response to the skilled-labor shortage was to take matters

44 | BUSINESSPULSE.COM JULY/AUGUST 2019

into our own hands by enhancing our paid apprenticeships through the Barron Technician School (BTS),” Barron said. “The BTS couples traditional on-the-job apprenticeship training with hands-on lab work and in-depth classes. Since the BTS launch late last year, we’ve seen great success in both recruitment as well as growth of our skilled-labor teams.” The Whatcom Business Alliance (WBA) recently launched the Youth Engagement Initiative. It aims to support employers and young people entering the job market by: • Creating a hub to offer job information and employment opportunities at YESWhatcom.com. • Unifying efforts with employers, like-minded groups, and educators. • Providing opportunities for real-time, hands-on workplace experiences, apprenticeships, and internships. • Assisting in workforce development for Whatcom County business and industry. “The Whatcom Business Alliance and its members saw that the key to a robust economy is the availability of a skilled workforce,” said Executive Director Tony Larson. “The WBA launched the Youth Engagement Committee in 2018 to set forth a strategic plan to better prepare future employees and connect them with local employers by building a bridge between education and industry.” Bellingham Technical College (BTC) offers a variety of workshops that meet the needs of local employers. BTC partners with the business community for corporate and industry training, cost-effective programs, professional development workshops, and career-laddering strategies. But Calloway believes the construction industry and educational institutions need to do more to promote construction-related jobs. “(We need) a concerted and organized effort to enlighten students, young adults, parents, and educators that entering the construction trades can provide a living-wage career with benefits and opportunities for advancement, without incurring tens of thousands of dollars in student-loan debt,” Calloway said. “The construction trades should be looked at as an opportunity to earn a great lifestyle and wage—not as a fallback option. “The dialog needs to change to one that lets high school students and young adults know that the construction industry has a lot of opportunities available to those willing to put in their time,” Calloway asserted. “I’ve heard from several contractors who say that they have employees who’ve only been with them for two or three years who are making nearly six figures a year.” JULY/AUGUST 2019 BUSINESSPULSE.COM | 45

By Dave Brumbaugh Whatcom County construction industry struggling to fill good jobs.

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publisher’s note

Positive Impact of Top Whatcom County Companies Is More Than Economic TONY LARSON Publisher, Business Pulse

ach year for the past 30+ years, Business Pulse magazine has produced a list of the Top 100 Private Companies in Whatcom County. As in prior issues, companies are ranked on the basis of gross sales in the preceding year. In order to qualify for the list, a company must be privately owned and have its corporate headquarters located in Whatcom County. Just a few years ago, the minimum sales level to make the list was just over $5 million annually. This year, the minimum annual sales required is just over $7 million. By virtue of these companies being private, the information they provide us is not publicly available. In many cases it’s proprietary. However, they provide it to Business Pulse in the interest of measuring industry trends and gauging the strength of our local economy over time. We also want to recognize these companies for their role in supporting local families with good-paying jobs, bolstering the tax base that allows local governments to provide necessary services, giving back to charitable organizations, and adding to the general economic and civic health of our community. These companies and others are largely responsible for the quality of life we all enjoy. Their aggregated economic impact is substantial for sure. These 100 companies alone represent nearly $5 billion in annual revenues and directly support more than 16,000 local families. Their indirect economic contributions are even more significant.

The leaders who manage these businesses and their employees have a lot more to offer than just economic impact and business acumen. In every issue of Business Pulse, we recognize the people and stories behind the data. For example, in this issue on Page 18, you can read about the collaboration between American Canadian Fisheries and Smith Gardens, two Top 100 companies that are supporting Christ the King Church-Bellingham’s Food Share & Farm ministry, which provides nourishing food to many needy Whatcom County residents. On Page 11, you’ll learn how business volunteers, with leadership and funding from the Whatcom Business Alliance (WBA), created the Youth Engagement Initiative, which then launched YES Whatcom (Youth Employment Services). This effort is building bridges among educators, students, their parents, and local companies interested in providing career pathways for young people. And on Page 45, you can read about hiring challenges in construction—one of several industries this program will be assisting in filling job openings in this strong economy. We also recently announced creation of the WBA Policy Center. A key objective is to get business leaders involved in the discussion of public policies that impact our community. The Leaders of Industry Issues Forum on May 16 (see Page 16) was part of that effort. And the Whatcom County Council

8 | BUSINESSPULSE.COM JULY/AUGUST 2019

has created a Business and Commerce Committee to identify issues important to the business community and to provide policy recommendations on those issues. The committee is composed of business leaders from virtually every economic sector. Many are WBA members and several are current and past WBA Board members. They’re an outstanding group of thought leaders who are used to solving problems. They immediately identified a top priority—affordable housing—and already have drafted recommendations that will go to the County Council in July. With vacancy rates below 1% in the county, and not enough housing to keep pace with population growth, home-ownership rates are dropping as housing prices and rental rates continue to rise. This issue is nearing crisis level, and businesses interested in growing and creating more good jobs are worried they won’t be able to attract workers, if there’s no housing for them. And any company interested in starting up or expanding in Whatcom County would have the same concern. In the Sept./Oct. issue of Business Pulse, in the midst of the election season, we’ll provide an in-depth update on this situation and others of concern to business leaders. A reminder, the primary election is on Aug. 6 and the general is Nov. 5. Enjoy the issue! —Tony Larson

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YESWhatcom.com—a Career Pipeline For Local Youth

BY PATTI ROWLSON

hatcom County, like the rest of the United States, is experiencing an employment crisis. Many great jobs are going unfilled because there simply aren’t enough workers seeking employment in the trades. The jobs are out there, and a four-year degree isn’t necessary to get started on a high-wage career path. In Washington State, for example, electricians make an average wage of $33 an hour, or just under $70,000 a year and top out at around $100,000 a year, according to the U.S. Bureau of Labor Statistics.. Heavy-equipment mechanics earn more than $53,000, on average, while the median salary for plumbers, pipefitters, and steamfitters is $58,000. That’s good money, even if you don’t factor in the savings from not needing to pay college-level tuition. Whatcom Business Alliance (WBA), a nonprofit membership organization, works to promote local business success and community prosperity in positive ways. In early 2018, WBA began an effort to bring attention to the importance of local workforce development, engaging with employers, educators, parents, and other stakeholders. One of the ways WBA plans to address workforce development is through its newly launched YESWhatcom.com recruitment portal, which aspires to help Whatcom County employers meet workforce needs while assisting local youth and other emergent workers in developing valuable career skills. Operating under the umbrella of WBA’s Youth Engagement Initiative, YES Whatcom also aims to ensure that businesses have access to templates for creating their own internships and that schools have the information they need to direct youth to quick-start career options after high school. Bellingham-based Birch Equipment has been building its workforce for years through extensive training and opportunities for development and advancement. Company leaders see great advantage in working with the WBA on programs such as this, said Cara

Buckingham, Birch Equipment’s Information Director. “Both the Youth Engagement Initiative and YES Whatcom are business-driven,” Buckingham said. “They highlight the magic of entrepreneurship and the dynamic work cultures that have always been positive forces in our community and state.” Through the platform, businesses are enabled to build direct relationships with area school districts to find innovative ways to prepare, train, and attract up-and-coming talent. “A lot of energy is being spent to educate kids and families about diverse career pathways and to spread the word about the depth of local opportunities for jobs, apprenticeships, work-based learning programs, and more,” Buckingham said. That is what YESWhatcom.com was created to do, said WBA Board Member Laura McKinney, the Human Resources, Government Affairs, and Public Relations Manager at Alcoa Intalco Works. “I know that employers in our community have had a difficult time engaging with students,” McKinney said. “At the same time, youth in our community often ask how they can get a job at prime employers in Whatcom County. That’s where YESWhatcom.com can help. Some key employers in Bellingham, Lynden, Ferndale, and throughout Whatcom County have entry-level job openings listed on YESWhatcom.com’s job board: Alcoa Intalco Works is hiring full-time production laborers; Enfield Farms needs case handlers; Custom Concrete is looking for concrete laborers; Samson Rope is hiring machine operators; Christian Health Care Center is offering free training for healthcare careers; and Birch Equipment is hiring a store representative. Visit YESWhatcom.com online to view college-alternative jobs in Whatcom County or to post a job opening and set up a company profile. For more information, call YES Whatcom at 360.746.0418 or email program representatives at info@whatcombusinessalliance.com.

JULY/AUGUST 2019 BUSINESSPULSE.COM | 11

leading edge NEWSMAKERS

Founder of Simple Box Storage Earns State Small Business Award

Ross Black, founder of a business he began as a high school senior project, has been named Washington’s 2019 Small Business Person of the Year by the U.S. Small Business Administration. Black, Owner and CEO of Simple Box Storage, was recognized for the company’s growth in net worth, increase in jobs and sales, innovativeness of products, response to adversity, and contributions to community-oriented projects, according to the SBA. He and winners from all 50 states, the District of Columbia, Puerto Rico and Guam were honored on May 5 and 6 in Washington, D.C. Founded by Black when he was a senior at Lynden High School in 1997, Simple Box Storage rents and sells shipping containers for

moving and storage. Today, the company has eight locations across Washington, Idaho, and Oregon and employs 26 people. “It’s such a humbling thing to win an award like this because I know that it would be impossible without such amazing support around me,” Black said. “When I started Simple Box Storage as a 17-year-old, I had dreams of being successful, but I really had no idea what true success looked like.” In 2013, Black enrolled in the SBA Emerging Leaders course, which provides free entrepreneurship education and training for executives of small, poised-for-growth companies. Since he completed the Emerging Leaders program, Simple Box Storage has grown from two locations to the current eight, increased revenues by 400%, and added 17 new employees. Black’s success with Simple Box Storage has allowed him to make a difference in communities across the globe. He sponsors one orphan or widow for each company employee. Black also provides containers and supplies for global and national disasters, sponsors local community events, and volunteers his time coaching and teaching local students. “As I worked through the SBA Emerging Leaders program, my dreams became plans and the plans have now become reality,” Black said. “I know that there is still so much room for me to grow as a leader, but it is an incredible honor to be recognized for the progress that has been made so far.” For more information about Simple Box Storage, call 360.200.5679 or visit www.GetSimpleBox.com.

Calling All Young Wanna-Be Aviators! Whatcom Young Aviators (WYA) celebrated the grand opening of a training facility at Bellingham International Airport on May 8. WYA is a nonprofit dedicated to providing aviation-related activities for middle and high school students in Whatcom County. Led by local aviation professionals Martin Spencer and Bob Nelson, the program is an effort to share their passion for aviation with young people and spark their interest in future careers in the aviation field. “With the current shortage of pilots, aircraft mechanics, and other aviation-related personnel, it’s very important that we try to encourage young people into careers in aviation,” Spencer said. Captain Mark Miller, the organization’s

Director of Training, said the program includes flights in light aircraft, visits to local aviation-related facilities, presentations by local aviation-industry professions, hands-on STEM classroom activities, model-aircraft building, flight simulator training, and the opportunity to build a real kit plane. “The Port of Bellingham, which operates the Bellingham Airport, has been very supportive of our endeavor,” Spencer said. “We’re grateful for their assistance in identifying the perfect location in the airport that we can call home.” As a registered 501(c)(3) charity, all sponsorships and donations are tax deductible. For more information, contact Spencer at 360.305.0139 or martin@whatcomyoungaviators.org. The website is www.youngwhatcomaviators.org.

12 | BUSINESSPULSE.COM JULY/AUGUST 2019

Beach At Waypoint Park Receives National Award For Restoration

Waypoint Park in Bellingham has been named one of four Best Restored Beaches in the nation by The American Shore and Beach Preservation Association (ASBPA). This award was developed to highlight the hard work, protection, and enhancement that comes with a beach-restoration project. In addition to Bellingham, beach projects in Louisiana, Texas, and Florida were also honored. “This award acknowledges the remarkable public investment and commitment by the City of Bellingham toward this early action that restores and reclaims our industrial waterfront,” said Leslie Bryson, Parks and Recreation Director. ASBPA’s award celebrates the broad benefits that come from beaches, including, storm protection, habitat restoration, recreation, tourism, and protection against sea-level rise. The Waypoint Park Beach nomination was submitted by the beach designer, Jim Johannessen of Coastal Geologic Services in Bellingham. The nomination described the beach as “the first public waterfront access point in an ongoing reclamation and redevelopment project on the site of a historic industrial pulp mill.” Additionally, the beach is adjacent to Whatcom Creek, an important wild salmon-bearing stream, and provides the only direct public waterfront access in downtown. The beach restoration included removal of an old creosote bulkhead, fill excavation, capping and nourishment to create the pocket beach and backshore. The finished beach creates new opportunities for forage fish spawning along Whatcom Waterway and is a new favorite spot for the public. For more information on Waypoint Park, visit: www.cob.org/gov/projects/Pages/Parks/whatcom-waterway-park.aspx.

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leading edge NUMBERS

A Bountiful Harvest

Milk remained the largest agricultural commodity in Whatcom County in terms of sales, according to the 2017 Census of Agriculture conducted by the U.S. Department of Agriculture. Dairy farmers sold $180.5 million of milk in 2017, although that was down 6.5% from the previous census in 2012. One of the most significant changes was in the number of acres devoted to blueberries, 4,535, a sharp increase from 2,662 acres in 2007 and only 482 acres in 1997.

$372.9 million Annual sales of crops and commodities

102,523 1,712 $17,000 701

Total number of acres in farming in Whatcom County

Farms in Whatcom County

Per-acre investment in agricultural land, including buildings

Farms that consist of fewer than 9.9 acres

Data from 2017 Agricultural Census

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The WBA hosted its annual Leaders of Industry Issues Forum on May 16 at the Bellwether Hotel to learn about policies that have been implemented at the federal, state and local levels over the past two years and how they will impact our local economy and businesses. 1. Max and Carole Perry, Perry Pallet Company. 2. Tony Larson, WBA President addreses the forum. [Event speakers included Anthony Foti, Director of Intergovernmental Affairs, US Department of Commerce and Paul Guppy, Vice President for Research, Washington Policy Center]. 3. Guests took full advantage of their time at The Forum to network. 4. From left: Tim Johnson, Phillips 66; Doug Ericksen, Senator for the 42nd District, Whatcom County; and Tony Larson, WBA.

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Terry Smith is former President and CEO of Smith Gardens, which donated a greenhouse to the Food Share & Farm program.

Businesses and Volunteers Support Garden That Feeds the Hungry BY MARY LOUISE VAN DYKE

“The other day, there were 14 volunteers here working in the rain. It’s just amazing the amount of people who care about feeding hungry people.”

–Andy Vitaljic, founder, American Canadian Fisheries

merican Canadian Fisheries and Smith Gardens support Christ the King Church-Bellingham’s Food Share & Farm ministry—and in doing so, provide nourishing food to many needy Whatcom County residents. American-Canadian is a Bellingham wholesale provider of fish products and specialty items. About 10 years ago, Andy Vitaljic, company founder, and his wife, Erin, began contributing fish on a weekly basis to the church’s food bank, making it possible for needy people to have protein. Last year, the couple donated 21,000 pounds of fish to Food Share, he said, adding that they’ve also donated millions of meals to food banks in other parts of the United States. The 10-acre Food Share site is located at 6069 Hannegan Road, on land owned by Hannegan Properties, a subsidiary of 18 | BUSINESSPULSE.COM JULY/AUGUST 2019

American Canadian. Church members and staff cultivate vegetables and sweet corn there. “The other day, there were 14 volunteers here working in the rain,” said Vitaljic, who was the 2018 recipient of Business Pulse’s Lifetime Achievement Award. “It’s just amazing the amount of people who care about feeding hungry people.” Andy wanted it noted that his sister, JoAnn Nelson, co-managed the farm before her unexpected death on March 29. He said she often worked alongside the volunteers in the Food Share gardens. In April, Smith Gardens donated a 146-by 21-foot greenhouse to the program—dedicated to Nelson, according to Food Share & Farm Director Faith Whaley. “We call it JoAnn’s greenhouse! We’ll be growing tomatoes in it this year,” she said.

Terry Smith, former President and Chairman of Bellingham-based Smith Gardens, says his company is a family business. His grandfather established Smith Gardens in 1901 as a truck farm, selling vegetables to markets around Whatcom County. Today, the fourth generation owns and operates the commercial floral-cultural business, with four growing operations that include the original Bellingham location. Smith said his involvement with Food Share & Farm transports him back to his roots. Its support includes donations of pots, starter trays, seeds, and many hours of encouragement, he said. Smith was the 2015 winner of Business Pulse’s Lifetime Achievement Award. “As a family business, we believe that being generous is another way of expressing to God our gratefulness for his many blessings,” he said. In years past, the vegetable plants were started at Smith Gardens in Bellingham and transported to the Hannegan site as plugs. Through the dedicated work of many, Smith said, the garden produced 75,000 pounds of fresh vegetables in 2018. This year, all plants are being grown at the Hannegan property to make Food Share more self-sufficient, Smith said. Smith Gardens will continue to support the program with materials for growing the plants. The work of planting, weeding, and delivery is done by volunteers, who toil in rain and sunshine, in addition to volunteers who help administrate the program. Up to 3,000 pounds of produce is distributed weekly during harvest season, according to the Christ the King website. Faith Whaley says that foodstuffs are donated to 17 organizations, including food banks, shelters, senior centers, the Salvation Army, and Boys & Girls clubs. The church also serves as a satellite distribution center for the Bellingham Food Bank on Tuesdays and partners with the Foothills Food Bank in Kendall. Other contributors to Food Share are the Bellingham Grocery Outlet, Barlean’s Health Supplements, and Franz Bakery. “Our purpose is to use food to bring hope to the community,” Whaley said. “We would love to grow more and to partner with more businesses to meet the hunger needs in the community.”

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leading edge MARKETING

How To Really Tell If Your Website Is Effective While website traffic is important, it only tells one part of your website’s story. Engagement metrics help you go beyond visitor volume to explore visitor value. BY SHERRI HULEATT

he other day a client asked me, what seemed like, a straightforward question: “Is our website traffic good?” This question comes up a lot and it makes sense—everyone wants to know how their website compares with the competition. Unfortunately, there’s no one-size-fits-all response. For example, with this particular client, the other brands in their industry have massive marketing budgets, have been in the marketplace longer, and have a larger audience, hence, a larger pool of people to attract to their website. Comparing the two is like comparing apples to oranges. While traffic (or “sessions” as it’s called in Google Analytics) is an important metric, at the end of the day, it’s not about getting the most visitors—it’s about getting the most qualified visitors. If your target market is, say, Whatcom County realtors, then there are only so many people who are going to like, follow, and engage with your brand online. Inflating your numbers with 20 | BUSINESSPULSE.COM JULY/AUGUST 2019

unqualified people, such as a software developer from Singapore, obviously won’t help your brand. A better question to ask is: “How engaged are my website visitors?” Instead of focusing on visitor volume, focus on visitor value, since traffic only tells one part of your website’s story. To track your website’s effectiveness, monitor these metrics, in addition to traffic: • Bounce rate: This is the percentage of people who come to your website and immediately leave. The average bounce rate is around 40% to 60%; if your bounce rate exceeds 60%, look for optimization opportunities, such as making your website mobile-friendly, reducing page-load speed, or simplifying the callsto-action so it’s clear what your visitors should do. Also, make sure your off-site creative, like an email or ad, is consistent with

your website; it’s jarring for the users to be told one thing in an ad and another once they land on your website. Pro-tip: If you get a sudden spike in traffic with a 100% bounce rate, it’s most likely a bot. Make sure you, or your IT team, filter bot traffic, so you can view real data. • Conversions/conversion rate: Conversions, called “goals” in Google Analytics, help you monitor key website actions, such as making a purchase, signing up for a program or event, subscribing to an email newsletter, or viewing a certain amount of pages. You can customize your goals and assign a numeric value to track low-, medium-, and high-value goals. Conversions are the reason you have a website in the first place—whether you’re using it to sell a product or educate your audience, if traffic increases but conversions don’t, investigate whether you’re sending the right people to your website and making it as simple as possible for them to convert. • Average time on site: This metric is relative to the website content’s type and length. For example, the average time on a page should be different for a 2,000-word blog post compared with a 200-word web page. One of the best ways to increase this metric is with videos—adding highly-engaging media that takes a certain length of time to consume (like a video) helps boost your audience’s visit time. • Pages per session: Similar to average time on site, this metric is a good indicator of how engaging and relevant your website content is to your audience. A good starting point is to shoot for an average of at least two pages (e.g., your homepage, plus another page); this shows your visitor was interested enough to click through to another web page.

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leading edge GUEST COLUMN | BUSINESS TAX

Is Your Business Responsible For Collecting Sales Tax In Other States? BY JOSH TERRY

“The Wayfair decision has emboldened states to become more aggressive with both their sales-tax laws and also their enforcement of those laws.”

ast year’s U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. has forced every business that operates across state lines to ask the question in the headline. That landmark holding overruled two prior U.S. Supreme Court cases, stripping away the physical-presence requirement that multi-state businesses have been hiding behind for decades. Now, even small businesses can be significantly impacted by online and remote sales. With the physical-presence protection now gone, when then, is a business liable for collecting tax in a foreign state? The technical answer is—when a business has substantial nexus with the state. However, that’s not terribly useful in 22 | BUSINESSPULSE.COM JULY/AUGUST 2019

real-world applications, so hopefully this article will shed some light on the topic. Prior to Wayfair, state governments were becoming more and more crafty in how they were defining physical presence, attributing physical presence to in-state marketplace facilitators, agents, affiliates, and in some cases, cookies left behind on a customer’s computer while browsing the web. Now, however, with the blessing of the Court in Wayfair, the majority of states are adopting a test called “economic nexus.” In the case of sales tax, nexus laws generally are a two-prong test—a gross-receipts benchmark and a number of transactions benchmark. Once an out-of-state business exceeds either

benchmark, the business has established a substantial “nexus” with the state, and thus must follow the state’s laws relating to sales tax. South Dakota’s law defining the thresholds has proven to be the most popular among the states. It established a grossreceipts limit of $100,000 and a transactions limit of 200 separate transactions delivered into the state. To date, 37 states and the District of Columbia have implemented an economic nexus law similar to South Dakota’s. As a whole, this sector of law is developing on a daily basis. Many states issued early guidance and are now in the process of codifying the guidance into law. The effective dates of these new laws vary among the states, with some early adopting states making their law effective prior to the Wayfair decision, while others are starting this year. Most states have indicated that they are not retroactively seeking taxes prior to the Wayfair decision. Sales-tax compliance is a multi-step process, with the determination of substantial nexus being the first step toward a business being required to collect and remit sales tax to the state of origin. The ruling in Wayfair changed step one. However, the subsequent steps have remained unchanged. After a business meets the nexus threshold, the business will have to determine which products or services it is selling in the state are taxable or exempt, and, if taxable, at what rate. Further, traditional exceptions to sales-tax liability, such as a sale for resale or unenumerated services, remain unchanged. The Wayfair decision has emboldened states to become more aggressive with both their sales-tax laws and also their enforcement of those laws. As the economic nexus tests provide a clearer picture of the facts, states have become more willing to pursue those out-of-state businesses that are skirting their laws. Businesses that are selling across state lines, either through direct sales or an online presence, should be consulting with their tax advisor to ensure their business is in compliance.

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THE TOP 100

PRIVATE COMPANIES

IN WHATCOM COUNTY By Business Pulse Staff

This year, for the first time, we decided to total the annual revenues of the Top 100 private companies in Whatcom County, using the low-end figure where there was a range. The result— nearly $5 billion—or more precisely, a whopping $4,985,000,000! Besides showing a high degree of profitability, this year’s list contains a number of businesses that are marking milestone anniversaries. These include Morse Steel Service (135 years), Blythe Plumbing and Heating (115 years), Allsop (55 years) and Barlean’s (30 years). Each is featured in a story on the following pages. A number of other companies have appeared on the list for many years, as well, evolving to sustain their success, often while transitioning to new leadership.

It’s also clear from the list that Whatcom County possesses a diverse economy. Construction, technology, maritime, retail, agriculture, manufacturing, and hospitality are among the industries represented. Criteria for a company to qualify for the Top 100 list include earning 2018 revenues above $7 million and having its corporate headquarters in Whatcom County. Companies are ranked by their 2018 revenues and in alphabetical order within their sales range. See who’s on the list and join us in thanking them for providing many of the jobs and the vital tax revenues that support our local and state governments. P+

TOP 100 2019 Rank

2018 Rank

Employees Region Total

Top Executive(S)

Location

Founded

The Alpha Group 1 1

Bellingham

1976

Power solutions for broadband, telecommunications, and renewable-energy sectors

Grace Borsari/ $800M+ Fred Kaiser/Drew Zogby

Haggen 2 2

Bellingham

1933

754

1,963

John Clougher $450M+

Exxel Pacific 3 3

Bellingham

1989

145?

256

Kevin DeVries $430M+

Dawson Construction 4 4 Large-scale construction

Bellingham

1967

150

250

Pete Dawson

Grizzly Industrial Bellingham 5 5 Woodworking and metalworking machinery manufacturer

1983

225

Shiraz Balolia

CHS Northwest 7 6 Energy, agronomy, and retail

Lynden

1941

148

262

Don Eucker

LTI Lynden 6 7 Transport of dry- and liquid-bulk commodities

1906

105

610

Jason Jansen

1,500+

Supermarkets and pharmacies Integrated design and construction general contractor

$125–$130M

400+

SALES

$100–$120M

Company

Richard Hempler/Stephen $90–$95M Bates/Arlie Jackobs

Samson Rope Technologies 8 9 Synthetic-rope manufacturer

Ferndale

1878

217

308

Tony Bon

The Markets 12 10 Community grocery stores

Bellingham

2008

300

475

Kevin Weatherill

Bellingham

1971

275

470

Gordon Lindell

Bornstein Seafoods 10 13 Seafood sourcing, sales, and distribution

Bellingham

1934

100

350

Colin Bornstein

Diamond B Constructors (Now Harris Pacific NW) Bellingham 14 14

1909

225

375

Pete Chapman

IMCO General Construction Bellingham 1978 90 240 13 15 Heavy construction

Frank Imhof/ Tyler Kimberley

Smith Gardens Bellingham 1901 17 16 Wholesale producer of garden plants, nursery, and garden-center supplies

185

1200

Eric Smith

Alaskan Leader Fisheries Lynden 1991 22 17 Bering Sea longline fleet for catch and sales of Wild Alaska Cod

150

Rob Wurm

McEvoy Oil (Now Coleman Oil) 16 18 Oil and gas supplier

1932

Tim McEvoy

Healthy Pet Bellingham 1985 19 19 Pet litter, bedding and food, spill cleanup, and industrial products

158

Ted Mischaikov

Axiom Construction & Consulting 36 20 Architectural sheet-metal contractor

120

218

Timothy Koetje

Commercial and industrial contractor

Bellingham

Lynden

26 | BUSINESSPULSE.COM JULY/AUGUST 2019

2002

$75–$85M

Anvil Corporation 15 12 Engineering and procurement solutions

$65–$70M

Trans-Ocean Products Bellingham 1985 241 247 Murry Park NL 11 Producer of Crab Classic and other brands of surimi seafood, natural smoked salmon products, and cooked and raw shrimp and scallops

$85–$90M

Hempler’s Foods Group Ferndale 1934 133 190 9 8 Meat processing and wholesale distribution

$60–$65M

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TOP 100

2019 Rank

2018 Rank

Company

Location

Founded

Faithlife 26 21

Bellingham

1992

Hardware Sales 21 22

Bellingham

Employees Region Total 271

369

Top Executive(S) Bob Pritchett

Bible-content software, apps and scholastic videos, online community groups, and building cloud-based presentations

1962

134

143

SALES $60–$65M

Jerry McClellan

Mt. Baker Products Bellingham 1993 28 24 Decorative plywood for the cabinet and furniture industry manufacturer

135

Steven King

Tiger Construction Everson 20 25 Excavating and commercial building contractor

Scott Isenhart

155

165

Bruce Barlean

1974

Barlean’s Organic Oils Ferndale 1989 29 26 Creates/distributes flaxseed, Omega 3, and other supplements

Keith Oil Ferndale 1959 7 10 31 27 Wholesale petroleum bulk station

Sam Boulos/ Yanolla Boulos

Roger Jobs Motors 30 28 Automotive sales and service

Bellingham

1985

Roger Jobs

Superfeet Ferndale 33 29 Insoles, footwear, and technology manufacturer

1977

90+

150+

John Rauvola

Faber Construction 39 30 General contractor

1987

105

Rick Faber

Family Care Network Bellingham 34 31 Family practice, clinics, community connections

1999

425

485

Dr. Marcy Hipskind

Mills Electric 32 32 Electrical contractor

1911

200

250

John Huntley

Seafood Producers Co-Op Bellingham 1944 35 33 Premium NW and West Coast seafood processor and marketer of

250

Joe Morelli

SPIE Bellingham 1955 27 34 International society advancing the science and application of light

175

Kent Rochford

Strider Construction 37 35 Heavy civic construction

Bellingham

1988

100

130

James A. Gebhardt

Blythe Plumbing & Heating 44 36 Mechanical contractor

Bellingham

1904

David C. Morse III

Brim Tractor 23 37 Farm and garden machinery

Lynden

1966

Dan Brim

Brooks Manufacturing Bellingham 46 38 Crossarms and transmission-framing components distributor

1935

John Ferlin

Cowden Gravel & Ready Mix 40 39 Construction materials and trucking

Bellingham

1945

130

Brent Cowden

DeWaard and Bode Bellingham 49 40 Applicance, mattress, and furniture sales and service

1946

Jerry Roorda

Lynden

Bellingham

28 | BUSINESSPULSE.COM JULY/AUGUST 2019

$50–$55M

Mark Hollander

$45–$50M

500

$40–$45M

$30–$40M

Hollander Hospitality Bellingham 1996 25 23 Hotel and commercial-property development and management

$55–$60M

General hardware w/three divisions (B-to-B industrial, online, rental), plus office-furniture store

66 Celebrating 55 years in business

Allsop: All In the Family

Allsop has always been a family company. Current Co-President Ryan Allsop (pictured) is the grandson of founder Ivor “Buss” Allsop, who started the business in 1964 after inventing a unique carrier for ski boots. Ivor’s sons, Jim and Mike, expanded the company over the next four decades, finding success with audio and video accessories. Allsop, Inc. has continued to branch out into new categories and Ryan now directs the company’s multiple brands —Allsop, Allsop Home & Garden, Softride, and Digital Innovations, a brand acquired in 2015. While the overall focus is consumer products, the brands span a wide array of categories that include office ergonomics, digital device cleaning, lighting, garden tools, and bike accessories. Success in so many different areas is credited to a strong sales team and creative in-house designers. “Our ability to consistently create and launch innovative products year after year has really helped us stand out in an ever-expanding marketplace,” explained Ryan. The Allsop Home & Garden division, in particular, has been getting a lot of attention in recent years. Jamey Allsop and her dad, Jim, founded the Allsop Home and Garden brand after they designed and launched the first solar-powered lanterns. Jamey continues to lead the design of new and original lighting concepts, including the introduction of a line of ornate solar lanterns that use punched Tyvek® material, making them weather-resistant and capable of withstanding wet Northwest winters. Allsop’s extensive selection of products are sold around the world, but they are very proud to have been a local company for 55 years. “We have a great relationship with a number of large retailers and distributors,” Ryan said, “but it’s really special to see our products featured at local stores in the community where we live and work.”

JULY/AUGUST 2019 BUSINESSPULSE.COM | 29

TOP 100 2019 Rank

2018 Rank

Company

Location

Farmers Equipment Company 41 41

Lynden

Saturna Capital 42 42

Founded

Employees Region Total

Top Executive(S)

1935

Kevin Pawlowski

Bellingham

1989

Jane Carten

Scholten’s Equipment 45 43

Lynden

1979

Duane Scholten

Specified Fittings 50 44 HDPE and PVC pipe-fitting manufacturer

Bellingham

1996

180

Tom Franzen

Western Refinery Services 38 45 Industrial maintenance and construction

Ferndale

1990

210

240

Billy VanZanten

Andgar Corporation Ferndale 1973 154 164 51 46 Residential heating/AC, metal fabrication, architectural metal, and biogas-digester technology

Todd Kunzman

Bellingham Cold Storage 52 47 Public refrigerated warehousing

SALES

Bellingham

200

Doug Thomas

Morse Steel Service Center Bellingham 1884 57 48 Rebar fabricator and statewide flatbed fleet steel and rebar distribution

Mike Morse

ProPack Logistics US 63 49 Supply chain management

1991

200

Alex Synder

Sound Beverage Distributors Bellingham 1950 47 50 Wholesale beer, wine, and distilled beverages, and bottled water supplier

Dean Shintaffer

Vital Choice Wild Seafood Ferndale 48 51 Web-based wild-caught seafood and organic food products

Randy Hartnell

Blaine

1946

2001

All American Marine Bellingham 1987 70 70 83 52 Builder of high-speed aluminum catamarans, ferries, tour boats, survey craft, and research vessels

Matt Mullett

Anderson Paper & Packaging Ferndale 1992 55 53 Paper, boxes, supply chain, packaging solutions, and paper manufacturer

Rick Anderson

Barron Heating & Air Conditioning Ferndale 69 54 Heating, air conditioning, and ventilation sales and service

143

147

John Barron

1972

Bellingham Yachts Bellingham 1984 15 18 79 55 Sales, brokerage, and servicing of yachts

Dean Ouilette/ Nick Ouilette

Birch Equipment Rental & Sales Bellingham 68 56 Equipment and tool rental and sales for industry and home

1972

Sarah Rothenbuhler

Bramble Berry 59 57 Soap-making supplies and training

Bellingham

1998

Anne-Marie Faiola

Daritech 53 58 Farm-equipment supplier

Lynden

1990

Dave DeWaard

Hoagland Pharmacy Bellingham 54 59 Retail pharmacy, medical equipment, and respiratory services

1981

Carson Huntoon

Jansen Inc NL 60 Heavy civil construction

1952

Grant Jansen

Bellingham

30 | BUSINESSPULSE.COM JULY/AUGUST 2019

$25–$30M

Agriculture and construction equipment sales

$20–$25M

Mutual funds manager and investor

$30–$40M

Berry harvesters, farm and construction equipment

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TOP 100

2019 Rank

2018 Rank

Company

Location

Founded

Employees Region Total

Top Executive(S)

Moncrieff Construction 62 61

Lynden

1992

Sam Moncrieff III

Mt. Baker Imaging 61 62

Bellingham

1965

160

Dr. David Cahalan

Roosendaal-Honcoop Construction 58 63

Bellingham

Gary Honcoop

Seeking Health 74 64 Nutrition and supplements supplier

Bellingham

2010

Dr. Ben Lynch

Western Forest Products 64 65 Commercial distributor of lumber products

Bellingham

1981

Terry Dawn

Allsop 65 66 Consumer electronics

Bellingham

1964

Ryan/Jim Allsop

CityMac Bellingham 1992 70 67 Official Apple partner for products and service and Verizon reseller

Troy Curran

Diehl Ford 68 56 New and used car sales, parts, and service

Bellingham

1908

Bob & Mike Diehl

G.K. Knutson 60 69 Drywall, cold-formed metal framing

Bellingham

1997

Greg Knutson

Infusion Solutions Bellingham 85 70 Private center and in-home infusion therapies provider

2010

Rowena Birnel

Louws Truss 75 71 Wood-roof and floor-truss manufacturer

1952

135

BJ Louws

MSNW Ferndale 1995 72 72 Facility management, maintenance, janitorial, and landscaping services

117

467

Janelle Bruland

POS-X 89 73 Point-of-sale and data-capture solutions

Bellingham

2005

Nicola Ciralantey

The Woods Coffee 73 74 Coffee shops and bakeries

Lynden

2002

240

325

Wes Herman

Woodstock International Bellingham 1989 13 66 75 Woodworking and metalworking machinery, parts, and shop materials wholesaler

Shiraz Balolia

ALRT Corporation 77 76 Logging and road construction

SALES

Ferndale

Everson

1990

Bill Westergreen

1990

Stowe Talbot

Bellair Charters & Airporter Shuttle Ferndale 1985 82 78 Bus transportation for airports, state ferries, and private charters

145

Richard Johnson

Bellingham Millwork Supply NL 79 Building materials

Dick Campbell

Barkley Company Bellingham 88 77 Developing and leasing commercial and residential properties

Bellingham

1993

Chuckanut Bay Foods Ferndale 2008 120 120 80 80 Gourmet boutique kitchen creating cheesecakes for wholesale distribution 32 | BUSINESSPULSE.COM JULY/AUGUST 2019

David Loeppky/ Matt Roth/Jim Gibson

$15–$20M

1979

Full-service general contractor providing construction and pre-construction services

$10–$15M

Radiology, image interpretation, and imaging during low-invasive surgery

$20–$25M

Concrete construction

By Cailean Mcleod This year marks 30 years since the Barlean family sent out its first bottle of organic flaxseed oil. What started as a small family business in 1989 became an internationally recognized supplement company whose name can be seen in almost every retail store in America, from the local Haggen store in Bellingham to New York City. Innovation runs in the family. Even before the genesis of the Barlean’s company we know today, Dave Barlean invented a way to separate endangered fish from commercial fish while his wife, Barb, set up an order system that sold salmon to all corners of the country on a moment’s notice. But it wasn’t until Dave’s son, Bruce (pictured), discovered a way to better extract the Omega-3-rich oil from flaxseed that the business began to boom. The bulk of Barlean’s production is nutritional oils and supplements, according to company spokesperson Shannon Remy. Healthy oils manufactured by Barlean’s include flax, fish, coconut and most recently, CBD hemp oil. Barlean’s also makes powdered-greens supplements and child-friendly versions of its emulsified Seriously Delicious flax and fish oils. According to its website, all of Barlean’s products undergo toxicity and heavy-metal testing from independent labs to ensure quality, purity, potency and safety. Family success came with a commitment to giving back. Barlean’s donates a significant amount of corporate profits to various outreach programs, both locally and globally. Organizations supported include the Autism Hope Alliance, Compassion International, and the Whatcom County Pregnancy Center. Barlean’s also regularly donates thousands of bottles of coconut oil to local food banks, offering those in need a healthy cooking oil alternative. Since January, the company has donated nearly 10,000 32-ounce bottles, Remy said. Barlean’s was one of only 13 companies to recently be awarded the prestigious U.S. Hemp Authority Certification. This seal of approval is given to companies that have met the organization’s stringent standards, assuring high-quality hemp products are both safe and legal. Barlean’s has won numerous industry awards throughout the years, including the 2018 Nexty Award for its children-friendly line of emulsified fish and flax oils.

Celebrating 30 years in business

Innovation: a Barlean Hallmark

Photo by April Brown

JULY/AUGUST 2019 BUSINESSPULSE.COM | 33

TOP 100

2019 Rank

2018 Rank

Company

Employees Region Total

Top Executive(S)

Location

Founded

Dickerson Distributors 81 81

Bellingham

1984

Kevin Dickerson

Emergency Reporting 90 82

Bellingham

2003

Dave Adams/ Adrian Mintz

Express Electric 71 83

Ferndale

SALES

Wholesale distributors of beer, wine, and spirits Software for fire and EMS records management

1992

Roger Anderson

1949

Aaron Brown

Lister Chain & Forge Blaine 1911 30 92 85 Manufacturer of ship-anchor chain, navigational-buoy chain, anchors, and fittings

Michael Stobbart

Lynden Sheet Metal 98 86 HVAC and plumbing service and repair

Lynden

1940

Bobbi Kreider

Northwest Health Care Linen 86 87

Bellingham

1992

101

110

James Hall

1993

Ken Strong

Larson Gross Bellingham 78 84 Certified public accountants and consultants

$10–$15M

Commercial, industrial, and residential electrical contractor

Totally Chocolate Blaine 96 88 Manufacturer of custom-molded chocolate

TriVan Truck Body Ferndale 2003 80 80 76 89 Custom-designed, commercial-use truck bodies, trailers, and other specialty units manufacturer

Marty & Cason VanDriel

WesSpur Tree Equipment Bellingham 2004 87 90 International arborist supply and tree-equipment machinery sales

Ryan Aarstol

American Canadian Fisheries Bellingham 1985 97 91 Salmon procurement, processing, shipping, and wholesale/retail sales

Andy Vitaljic

Comphy Company 94 92 Home bedding, spa linen, and textiles

Ferndale

2003

Mia Richardson

Credo Construction NL 93 General contracting

Bellingham

2001

Todd Lapinsky

ecigExpress 94 99 Electronic-cigarette supplier

Bellingham

2009

Timothy Furre

Erin Baker’s Wholesome Baked Goods 95 95 Wholesale baker and distributor

Bellingham

1994

Erin Baker

Hytech Roofing nl 96 Full-service roofing contractor

Bellingham

1952

Dan Gross

Skeers Construction 93 97 Master plan community home building

Bellingham

1985

Dick Skeers

Whatcom Land Title 100 98 Title insurance and escrow services

Bellingham

1982

Colleen Baldwin

The following companies made the Top 100 Private Companies list in 2018 but their updated numbers for this year were unavailable at press time

Kam-Way Transportation 24 NA

Blaine

2008

Kam Sihota

Granite Precast 67 NA

Bellingham

1985

Matthew Vaughn

Full-service transportation brokerage Precast-concrete products producer

34 | BUSINESSPULSE.COM JULY/AUGUST 2019

$7–$10M

Healthcare laundry-management services

36 By Cailean Mcleod Blythe Plumbing & Heating, founded in 1904 by Clarence Christopher and Arthur Blythe, was among the first plumbing and piping contractors in the Pacific Northwest. For more than a century, Blythe has withstood the test of time and fostered a culture of continuous improvement that has yielded noteworthy results. Blythe has grown into a design-build mechanical contractor and maintains a 24/7 service department. It offers an in-house engineering and detailing department and works proactively with clients to offer customized pre-construction services, state-of-the-art mechanical engineering services, sophisticated project management, and three-dimensional systems modeling. David Morse III (pictured), P.E., the General Manager at Blythe, brings extensive industry knowledge and meticulous attention to detail to every project. â&#x20AC;&#x153;We take pride in our creative problem solving and exceptional customer service,â&#x20AC;? Morse said. The design-build process allows Blythe to provide seamless design and construction processes for its customers and ensures satisfaction with the finished product for the owner. Blythe also participates in the plan/spec market. It has a reputation for adding value with effective and collaborative problem-solving and creative engineering, while successfully meeting aggressive schedules. And it has piping and ductwork fabrication facilities with expert craftsmen who produce accurate prefabricated assemblies and custom installations. The Blythe team continues to grow and currently is involved in large projects at Anacortes High School, Western Washington University, and Naval Air Station Whidbey Island.

Celebrating 115 years in business

Blythe Plumbing & Heating: Withstanding the Test of Time

Photo by Scott Book

Celebrating 135 years in business

Morse Steel Service: Evolving Through Generations By Cailean Mcleod At first, the Morse family business operated out of a small warehouse in downtown Bellingham on State Street. Founder Robert Morse had moved here from California in the late 1880s. His fledgling company sold hardware tools to early industries in the area, including logging, farming and mining companies. In 1959, Robert’s son, David, who had become the company owner invested in metal distribution. In 2003, Robert’s grandson, Bob, built a new headquarters near Bellingham Technical College. The historic Morse building was sold in 2000 and now houses offices and retail on State Street but serves as a testament to the Morse family legacy. Today, Morse Steel Service sells rebar, wire mesh, and post-tension cable for concrete construction. It also cuts and manufactures

parts for manufacturing companies from a broad range of steel materials, including beams, angles, pipe, plates, and sheets. Morse also offers a vendor-managed inventory (VMI) system, whereby Morse can manage a stock of material or parts in a customer’s facility so that a company always has steel on hand. Another service is a shared bill of materials, which is a kit that Morse maintains for each client, so that they don’t have to order every individual part separately. CEO Mike Morse (pictured center front row) said that, while they occasionally sell and ship product to Eastern Washington, their buyer market is mainly Western Washington. Morse also said they have recently created a subcontracting company to work directly with customers to install rebar in construction projects.

48 Photo by Scott Book

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If selec ted we will feature your business and new merchandise in our ad for the S eptember issue of the Business Pulse. Rules and restric tions apply. This promotion is in no way associated with the Business Pulse or any of its associates. Visit w w w.MerchMakeover.com for more details. Applic ations will be accepted July 1 -26 2019.

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heir to the

throne? A wave of boomer-owned companies are heading into transition

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What happens when business owners retire? By Cheryl Stritzel McCarthy

“When you start the business, start planning your exit.” Mauri Ingram President of Whatcom Community Foundation

people aware of the options, and build up knowledge in the professional community here so it doesn’t seem so unusual. There’s so much upside for everybody: sellers, folks stepping into employee ownership, and the community as well.” Plan exit when you buy Larson Gross, an accounting and consulting firm in Bellingham, Lynden and Burlington, has assisted in business transitions for decades. Succession strategies they see locally include shifts to key employees, ESOPs, third-party sales, and family. All can be successful when tied to the owner’s goals, said Tanya Silves and Josh Turrell, both CPAs and Partners with Larson Gross, who supplied information in tandem via email. Silves and Turrell see an increase in local companies hiring outside expertise to ensure successful transition. Larson Gross often combines business transition with personal financial planning, with the aim of optimizing cash flow for buyers and sellers. What common mistakes do business owners make in exit-and-succession planning? Experts tapped for this article had the same answer: waiting too long to plan for it. “Start thinking about an exit plan the day you open for business,” said Seitz. “Developing an exit plan early will 42 | BUSINESSPULSE.COM JULY/AUGUST 2019

inform many decisions throughout the life of the business: lease or buy real estate and equipment; job design and staff retention efforts; and even the owner’s retirement investment plans—all these decisions can be impacted by an exit plan, or lack of one!” “When you start the business, start planning your exit,” Ingram said. “Get your plan in place. Things will have to be adjusted over time... but having a plan puts you in a better place.” As soon as you have the title ‘owner,’ begin thinking of an exit strategy, said Silves and Turrell. In addition, owners often procrastinate on implementing their plan. Other missteps include lack of clear communication before/during/ after, focusing too much on the transition itself, neglecting the potential success of the business afterward, and assuming a third-party sale is the only option. To that litany, Seitz adds: not understanding how business value is determined; thinking buyers will pay for potential growth; not improving business fundamentals prior to sale; and not having documented policies and procedures in place. “Unfortunately, some business owners get to a point of feeling ‘I’m done, now I want to find a buyer’ and then try to market the business for sale… If a buyer is identified a few years prior to the owner exiting, a gradual

buyout is a great way to transition.” Small businesses are often unprepared for transition, unlike tech start-ups that plan from their inception to secure venture capital and then exit via sale to a larger company, or initial public offering. It used to be that planning an exit was a step toward retirement. Now it’s more focused on the short- and longterm goals of the owners, regardless of age, according to Silves and Turrell. Succession help also is available via the Whatcom Community Foundation and WWU’s SBDC. The SBDC works with owners to help them understand options, and with potential buyers to understand what’s required to purchase and continue the business. “It’s important to preserve the entity so the business will continue to serve our community, employ workers and contribute to our state and local tax base,” Seitz said. Benefits and drawbacks Anvil Corp. is one Whatcom County business that chose the ESOP approach. The engineering and project management company launched in 1971. In 1996, its founder-owner transitioned to partial ESOP; in 2010, the company became 100% ESOP. “The owner decided it was to his advantage to have Anvil continue as it was, not be absorbed by an outside entity,”

said John MacPherson, who joined the company in 1971 and is now Chairman of the Board. “He really wanted to retain the culture,” MacPherson said. “When I became President (of Anvil) it became a main goal to get to 100% ESOP. It was one way to make Anvil healthy for the long term. It’s our way of converting their sweat equity into real equity.” ESOPs offer tax benefits to both owner-seller and employee-buyers. MacPherson said drawbacks are minimal, but include: “We spend money every year paying out people who are retiring. Also, going to 100% ESOP means leaders can’t own more of the company than anyone else. If one wanted to incentivize leaders with direct ownership, that wouldn’t work.” ESOPs can be beneficial when there isn’t a clear answer to a successive owner, while family transitions allow the next generation to carry on established legacy, according to Silves and Turrell. The latter can include private financing and continuity for employees, vendors and customers. Silves and Turrell added, “In Whatcom County, we’re seeing all types of ownership transitions—from outside buyers looking to move to our beautiful corner of the world (or take advantage of our proximity to Canada and ports) to closely held family businesses transitioning to a third generation, and anything in between.”

One company’s progression into employee ownership Planning early for your exit and succession is part of being a good leader, said Keith Carpenter, co-founder of Wood Stone, a specialty commercial cooking equipment manufacturer in Bellingham. Carpenter, with partner Harry Hegarty, started Wood Stone in 1990 to make wood-fired stone hearth ovens. “We started building our succession team seven or eight years into the business,” said Carpenter. “We owed it to employees who showed up every day to have a backup, should something happen to me or Harry or both. The plan was clearly laid out in documents. “Get a plan in place as soon as possible. You can always change it.” Wood Stone trended toward employee ownership early on. During the first few years, banks wouldn’t lend them enough to pay for the talent they needed. So the founders sweetened the deal by giving potential employees a percentage of the business.

“It worked!” Carpenter said. “It got us an amazing team.” From their pool of employee-owners, the founders chose who would replace them. “My function was president of sales and marketing, and finances. Harry was engineering and manufacturing. We were covered. All the key people, with key skills, were owners. It was perfect.” But things change. Twenty-five years later, Wood Stone was worth so much that the successors balked at taking on the debt and personal risk that came with it. For years, only Carpenter and Hegarty had their names on the line for personal guarantees; other employee-owners had been protected in that way. What to do? “Another privately held company approached us,” Carpenter said. Henny Penny, an Ohio-based maker of commercial food-service equipment, was a second-generation, family owned business. Like Wood Stone, they didn’t have family who wanted to take it into the future.

Henny Penny acquired Wood Stone in early 2014 and within a year took both companies into one Employee Stock Ownership Plan, a well-known form of employee ownership. Neither company could have accomplished that by itself. “ESOPs are not easy and they’re not cheap,” Carpenter said. “Oversight and compliance issues are extensive, and they go on forever. Henny Penny had the resources to do this for both companies.” Even when you know and respect the suitor, the decision to sell was still huge. “You have a personal commitment to all the employees,” Carpenter said. “We knew them all. We knew their families.” To Carpenter, the ESOP meant “we could give people ownership, get commitment, and help build the company.” The sale also meant stepping away personally. “Once you sell, you have no control. I was very cognizant of that.”

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Construction industry struggling to fill good jobs By Dave Brumbaugh

n improved economy and a low unemployment rate are A wonderful news to everyone—except businesses trying to find skilled employees to meet the demand for their products

QA and

Cannabis Grower Danielle Rosellison Advocates For Industry and the Consumer Interview by Dave Brumbaugh

anielle Rosellison is the Owner/Operator of Trail Blazin’ Productions, a state-licensed cannabis producer in Bellingham. Rosellison directs Trail Blazin’ sales in the highly competitive cannabis-growing sector in Washington State. She also is an advocate for higher industry standards and fewer state limits on cannabis businesses. Rosellison is Board President of The Cannabis Alliance and was Ambassador of the Year in 2017 for the Bellingham Regional Chamber of Commerce. She has been an Ambassador for the chamber since 2015. Danielle also won Activist of the Year for Dope Magazine in 2016 and was nominated again in 2017. BUSINESS PULSE: How long have you been a licensed cannabis grower? DANIELLE: Trail Blazin’ was the 13th application for a license and the 151st license to be granted in August 2015. We would have been three months earlier, but we ran into complications with the City of Bellingham. You don’t fit the stereotype of a “stoner” grower. I would agree that I don’t fit the stereotype; I’m not running

around in tie-dye and Birkenstocks (although to be honest, few stoners are). I had a love affair with cannabis for a decade. I remember looking at myself in the mirror and thinking I can’t imagine going a day without cannabis! That was in my 20s, and needless to say, things have changed. Back then I was looking to get high just to get high. Like REALLY high. Now, with the business and two small kids, I don’t have time to get “really” high. I just want to take the edge off when I get home from work and I want to sleep through the night. What’s your work week like? I work, at a minimum, 10 hours a day with no breaks, five days a week. I speed-eat lunch, usually while working. Then I come home and do laundry from work three days a week, since our entire team is in scrubs and they need to be cleaned regularly. Same for my husband/bestfriend/business partner, Juddy. We try hard NOT to work weekends and reserve them for family time. I’d say we’re 50% successful (meaning we usually end up working on Saturdays in some capacity).

Photo by Scott Book

46 | BUSINESSPULSE.COM JULY/AUGUST 2019

Do most legal grow companies operate like a “normal” business? I can’t tell you what “most” legal grows do because cannabis operations are as unique as snowflakes. I can tell you that the people who fought for cannabis legalization and risked everything before legalization aren’t the people profiting from the legal cannabis industry. The biggest entity profiting is the government. The taxes and fees they charge us are ludicrous. Whatever is a “normal” business fee or tax—triple it for cannabis licensees. Furthermore, federal tax code only allows us to write off the cost of goods sold, so we can’t write off sales, office space, advertising—any of that! Retailers have it the worse. They can’t write off anything except the product they purchased—not payroll, not rent, not anything. Thus, they’re literally paying tax on money they never made to the federal government. So the government is making a ridiculous amount of money off the backs of small businesses who have risked everything to legalize cannabis and participate in the new emerging, regulated market. I want nothing more than to operate like a “normal” business, but as hard as I try to think otherwise, nothing about what we’re doing is “normal.” If we’re not treated like a “normal” small business, we can’t operate like a “normal” small business. How does Washington compare with other states where marijuana is legal? Washington offers more than 200 distinct brands of cannabis, more than any other state or country. The consumer selection in Washington is awesome! What else do consumers here enjoy? Whatcom County has more cannabis licensees per capita than any other county in the state. And Washington has the cheapest prices for cannabis in the country—plus it’s legal! I’ve heard cannabis retailers have trouble finding financial institutions to work with them and often deal in large amounts of cash. Do cannabis growers face similar problems? I know the media want the public to think that we are a cash-heavy industry, but that’s Q AND A continued on Page 54

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Bellingham Wine Festival Offers a Bounty of Wine and Food For You To Savor

By Cailean Mcleod

This August, 58 wineries from across the Pacific Northwest will congregate in Bellingham for the premiere wine-tasting event, the Bellingham Wine Festival. The Whatcom Beer and Wine Association will kick off its fourth annual Wine Festival at Four Points by Sheraton. Association President Dan Radil said they pride themselves in their selections. “One thing we like about our festival is we have a great cross-section of wineries from across the region,” Radil said. The festival will see wineries from places like Walla-Walla, Yakima, Woodinville, and even Oregon, which will be represented by three wineries. The local wineries to grace the festival include Dynasty Sellers, Vartanyan Estate Winery, Samson Estates, and GLM Wine Company.

During the festival, attendees are invited to visit the numerous wine tables around the venue as well as the food tables scattered amongst them. Radil said other such festivals usually separate the wine and food tables, resulting in long lines. Providing the festival’s food this year are local restaurants like Cosmos Bistro and McKay’s Taphouse and Pizzaria. In addition, VIP ticket-holders will get access to VIP lounges catered by Leader Block Wine Company and B Town Kitchen. Attendees also can special order wines directly from the respective wineries. This, Radil said, was set up so that wineries don’t waste wine by taking too much to the festival. The festival also will announce the winners of its optional wine contest. Bellingham City Council Member Pinky Vargas will

present the Best in Show award. Radil said that weeks before the event, participating wineries are invited to sign up for a taste-test contest. Judging the wines are Dan Radil himself, Lagana Cellars owner Jason Fox and Society of Wine Educators member Tracy Olney, among others. Other activities include a silent auction of wine-related products, like an “Instant Wine Cellar,” and a compilation of wines from the festival in one package. Radil said all of the proceeds from the festival will go towards nonprofit organizations. This year specifically, the money will go to the “Make.Shift Project,” a Bellingham artist/musician community, and the Alzheimer’s Association. For more info, visit whatcombeerandwine foundation.org.

JULY/AUGUST 2019 BUSINESSPULSE.COM | 49

event picks PULSE AFTER HOURS History Sunset Cruises THRU SEPT. 3 This summer, Bellingham historians Brian Griffin and Doug Starcher will host Whatcom Museum’s 36th annual History Sunset Cruise. This Victoria Star voyage, sponsored by San Juan Cruises, will take passengers on a tour through Bellingham Bay while Brian and Doug talk about Bellingham’s early days, businesses, industry, and parks along the bay. The Victoria Star departs the Bellingham Cruise Terminal every Tuesday from June 25 through September 3. Bellingham Cruise Terminal, 6:15 p.m. Cost: $35. whatcommuseum.org.

Downtown Sounds JULY 10–AUG. 7 The sounds of Bellingham return in full force this Summer during the Downtown Sounds music festival. Every Wednesday, starting July 10, Bay and Prospect Streets will host a large variety of live performances from across the country and Whatcom County. Bay/Prospect Streets, 5:30 p.m. Free. downtownbellingham.com/events.

Blaine’s Old Fashioned 4th of July JULY 4 Blaine will celebrate the 4th of July in style with a pancake breakfast, car show, street fair, ferry rides, and live music at Blaine’s Marine Park. The day will end with a fireworks display over Semiahmoo Bay.

Blaine Harbor Music Festival

Whatcom County Old Settlers Picnic

JULY 8-13 Courtesy of the Pacific Arts Association, Blaine will host students and faculty playing symphonic and jazzy tunes. Blaine Harbor is an educational group that teaches Whatcom County students how to play instruments. This music festival represents a seven-day workshop for interested students to learn and is open to all high school and middle school students.

JULY 26-28 Whatcom Old Settlers Association will put on its 124th Old Settlers Picnic in Ferndale. This Picnic will feature booths for kids’ games, crafts and also arts and company exhibitors and food. There will also be a beer garden, stage music, and a horse- drawn carriage.

Multiple locations and prices. blaineharbormusicfestival.org

Hand Quilting Workshop

The Snow Queen JULY 26 After a week of practicing, the Missoula Children’s Theatre will perform its rendition of The Snow Queen at the Mt. Baker Theatre this July. The Missoula Children’s Theatre is part of the Missoula Community theatre, an organization employing and recruiting actors and performers from all around the globe to drive communityoriented theatre performances. The children’s theatre specifically teaches children the insand-outs of theatre to better prepare them for show business. Mt. Baker Theatre, 3:00 p.m. Cost: $10. mountbakertheatre.com

PULSE PICK

Pioneer Park, Free. myferndalenews.com/ferndaleevent.

JULY 28 Learn how to quilt at the Lightcatcher Museum in this workshop provided by the Pacific Northwest Quilt & Fiber Arts Museum. In it, fiber artist Marla Varner will teach a variety quilting techniques, such as threads, hoops, and batting. The Quilt & Fiber Arts Museum is an organization dedicated to providing Whatcom County with knowledge of fiber working and preserving the cultural tradition through workshops and exhibitions. Whatcom Museum Lightcatcher Building Studio, 10 a.m. Free Admission. qfamuseum.org/workshops.html.

BELLINGHAM BEER PROM

Blaine Marine Park, 8 a.m. Free. blainechamber.com/annual-events/.

Firsts In Flight: a Hidden History JULY 13 At this exhibit, viewers will learn about how African American women have shaped the world of aviation, both nationally and locally. They’ll learn about important figures, their contributions and even about Bellingham’s own aviation history. The exhibit also will feature two videos: “Trailblazers and Heroes: African Americans Who Flew First” and “Doing the Math for NASA: African American Human Computers.” Old City Hall, 12 p.m. Free. whatcommuseum.org.

JULY 26 Kulshan Brewing Company and Lydia Place will take you back to the past with their Back to the Future/Enchantment Under The Sea themed Beer Prom. Attendees will not only drink Kulshan’s finest beers, but also dance the night away with live music, win prizes, and participate in an ’80s fashion contest. All proceeds go to Lydia Place, a nonprofit agency giving homeless families a place to stay. Other activities include food trucks and a photo booth. The Majestic Ballroom, 5:30 p.m. Cost: $30. eventbrite.com/e/beer-prom-tickets 62743593778 for more information.

50 | BUSINESSPULSE.COM JULY/AUGUST 2019

Art In the Alley AUG. 3 Join the Jansen Art Center out in the back as they celebrate Whatcom County’s artists in Judson Alley. Not only will Jansen showcase the best artwork Whatcom has to offer, but they’ll do raffles, host live music and a dance party, cook BBQ, and serve beer and wine for attendees. Paul Klein’s The Atlantics will serve as the night’s music and the art will bring together the best in pottery, dance, painting, jewelry, music, and clothing. Jansen Art Center, 5:30 p.m. Cost: $26.50. jansenartcenter.org/events/art-in-thealley-2019/.

Peace Arch Park International Concert Series AUG. 4–25 Every Sunday in August, musicians and artists from all around the Pacific Northwest will gather to perform at Peace Arch Park. This fourth annual event is free to everyone and will feature many different people and cultures across the Pacific Northwest. This concert is made possible by the Washington State Park Folk & Traditional Arts in the Parks Program and paid for by the National Endowment for the Arts to Northwest Heritage Resources. Peace Arch Park, 2 p.m. Free. www.blainechamber.com/annnual-events/.

Schooner Zodiac Dinner Cruise AUG. 12 Enjoy a bite to eat with the stars overhead and the sea beneath your feet on this cruise, sponsored by the Whatcom Marine Mammal Stranding Network. The evening activities aboard the Zodiac consist of a meal with fish and vegetarian options, a raffle, and a view of the bay. The Marine Mammal Stranding Network is a nonprofit organization that works to protect the marine life of Whatcom County through volunteerism and education. Fairhaven Ferry Terminal, 6 p.m. Cost: $100. schoonerzodiac.com/cruises/..

JULY/AUGUST 2019 BUSINESSPULSE.COM | 51

reads PULSE AFTER HOURS Trillion Dollar Coach: The Leadership Playbook of Silicon Valley’s Bill Campbell Eric Schmidt, Jonathan Rosenberg and Alan Eagle Bill Campbell helped to build some of Silicon Valley’s greatest companies—including Google, Apple, and Intuit—and to create over a trillion dollars in market value. A former college football player and coach, Bill mentored visionaries such as Steve Jobs, Larry Page, and Eric Schmidt, and coached dozens of leaders on both coasts. When he passed away in 2016, “the Coach” left behind a legacy of growing companies and successful people and an abundance of respect, friendship, and love. From their vantage points at Google, Eric Schmidt, Jonathan Rosenberg, and Alan Eagle experienced firsthand how Bill developed trusting relationships, fostered personal growth, infused courage, emphasized operational

excellence, and identified simmering tensions that inevitably arise in fast-moving environments. To honor their mentor and inspire and teach future generations, they have codified his wisdom in this essential guide. Based on interviews with more than eighty people who knew and loved Bill Campbell, Trillion Dollar Coach explains the Coach’s principles and illustrates them with stories from the great companies and people with whom he worked and played. The result is a blueprint for forward-thinking business leaders and managers that will help them create higher-performing and faster-moving teams and companies. (April 16, 2019, HarperBusiness) Hardcover $28.99.

Brave New Work: Are You Ready To Reinvent Your Organization? Aaron Digman Aaron Dignan helps teams around the world completely reinvent their operating systems—the fundamental principles and practices that shape their culture—with extraordinary success. He helps them see that organizations aren’t machines to be predicted and controlled. They’re complex human systems full of potential waiting to be released. In Brave New Work, you’ll learn exactly how to reinvent the way you work, not through top-down mandates, but through a groundswell of autonomy, trust, and transparency. Brave New Work is divided into three parts. Part One, The Future of Work, shows how our way of working came to be—originating on the factory floors of the Industrial Revolution. And it lays the foundation for a new way of thinking

about people and organizations that trades the illusion of control for something far better. Part Two, The Operating System, explores the principles and practices of Evolutionary Organizations through a tour of the OS Canvas, a transformative tool created to help teams see just how embedded and interconnected their way of working really is. Finally, Part Three, The Change, tackles the most difficult topic of all: how to change. If you’ve been burned by change efforts that have overpromised and under-delivered, you’re not alone. Here you’ll find a counterintuitive yet straightforward approach to change that honors the inherent complexity in your organization. (February 19, 2019, Portfolio) Hardcover $28.

The Moment of Lift: How Empowering Women Changes the World Melinda Gates For the last twenty years, Melinda Gates has been on a mission to find solutions for people with the most urgent needs, wherever they live. Throughout this journey, one thing has become increasingly clear to her: If you want to lift a society up, you need to stop keeping women down. In this moving and compelling book, Melinda shares lessons she’s learned from the inspiring people she’s met during her work and travels around the world. As she writes in the introduction, “That is why I had to write this book—to share the stories of people who have given focus and urgency to my life. I want all of us to see ways we can lift women up where we live.” Melinda’s unforgettable narrative is backed

52 | BUSINESSPULSE.COM JULY/AUGUST 2019

by startling data as she presents the issues that most need our attention—from child marriage to lack of access to contraceptives to gender inequity in the workplace. And, for the first time, she writes about her personal life and the road to equality in her own marriage. Throughout, she shows how there has never been more opportunity to change the world— and ourselves. Writing with emotion, candor, and grace, she introduces us to remarkable women and shows the power of connecting with one another. When we lift others up, they lift us up, too. (April 23, 2019, Flatiron Books) Hardcover $25.99.

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Q AND A continued from Page 47

not necessarily the case in Washington. On a national level, banking is obviously an issue, and one that The Cannabis Alliance, which I’m serving as Board President for the third year, is working on with the National Cannabis Industry Association (NCIA). Washington farmers and retailers actually have seven credit unions that will do business with us. We have checking accounts and can get loans. The problem is that they charge usury rates, which is unsustainable for small businesses. It costs us $250/month just to have a checking account, plus a percentage of all cash deposits. And any “business loan” is really a personal loan, with similar “personal loan” rates. It’s not like an SBA loan at all. Ironically, many retail businesses make a substantial portion of their money from ATM fees, so the “all-cash” business isn’t all bad and is actually a revenue stream for retailers. More than anything, it’s labor intensive to deal with cash and the opportunity for theft is greater, by both your employees and the public. What has changed for growers since Trail Blazin’ began? Everything. Period. Branding became really important in 2016. Prior to that it was not important. Prices have plummeted. Well-funded processors have forced the prices down, down, down. Growing technology has moved at an exponential rate. Do you have any concerns about the practices of some growers? I’d like to see the pesticide rules enforced. What would help people who are consuming cannabis for health reasons? I’d love to see the state Department of Health promote DOH Compliant product. Medical-cannabis dispensaries have died in Washington, and patients deserve their medicine with a logo that’s easy to recognize. You pay close attention to keeping your grow operation free of contaminants. What do people have to do before entering it and why? Trail Blazin’ is the only certified medical-marijuana farm in the State of Wash54 | BUSINESSPULSE.COM JULY/AUGUST 2019

ington producing flower, pre-rolls, and shatter. Out of 1,400 farms, we’re one of only two farms (the other one is Fairwinds) that certifies all of our product as medical, meaning that we get pesticide and heavy metal tests on all of our products. Trail Blazin’ uses zero pesticides. Nothing organic. No chemical substances. Nothing. All data suggests that 30%-40% of the regulated market has illegal amounts of pesticides. These pesticides, when inhaled, are known to cause headaches, stomach pains, and blindness, among other things. This is a huge problem, especially when we’re talking about products that are concentrated and combusted; we’re literally changing the chemical make-up of pesticides. The good news is that, with a few strategic “random” tests from the state under a contract already in place, they could address the rampant use of illegal pesticides with no increase in costs to taxpayers or farmers. Trail Blazin’ has been 100% pesticide free since Day 1 (2014). And the best way to mitigate pests is to not get them in the first place. We use clean practices and beneficial insects for our pest-management system. Everyone scrubs up, like you would in a hospital, and wears facility shoes, hairnets, and follows strict procedures for who is allowed into what room and when. We also have a strict “nothing in, nothing out” policy so that other farms’ practices can’t compromise our own. Some people say we’re overly cautious, but when your entire livelihood is tied up in a business, and your brand is based on clean product, it’s important to go the extra mile.

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What’s on your cannabis-industry wish list? I hope to see the excise tax eliminated for DOH Compliant products; to have cannabis defined as an agricultural product in Washington; to have a Cannabis Commission created to protect the small farmers of Washington; and to have legal- consumption lounges and consumption-banquet permits. Any last request? Yes. I’d like to see a social-equity program to help right the wrongs of the War on Drugs. JULY/AUGUST 2019 BUSINESSPULSE.COM | 55

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It’s all about you. As it should be. When you partner with us, you can count on experts who listen, learn and get to know your business, so we can provide solutions specifically tailored to your needs. Respect, responsiveness and commitment. That’s been our approach in Whatcom County for more than 60 years, and it’s what you and your business deserve. Let’s create tomorrow, together.

2018 Best Bank in the Pacific Region of U.S. — Money magazine

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

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Commercial Lending

Dale Holt

Commercial Relationship Manager 360.714.6805

Let us help you with your business lending needs!

Adam Finfer

Commercial Relationship Manager 360.714.6804