Business Pulse May | June 2023

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Local dairies passionate about persevering in challenging climate

Investing in workforce development during a constantly changing global economic climate

Team Technology’s owner decides the team is the best exit strategy

Creative innovation spurs growth at Northerly Customs

Ongoing growth and expansion at Cherry Point industrial zone

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PULSE BUSINESS

VOL. 48 | NO. 3

PUBLISHER Whatcom Business Alliance

EXECUTIVE DIRECTOR Barbara Chase

EDITOR Matthew Anderson, Bellingham PR & Communications

CONTRIBUTING Heather Lea

WRITERS Cheryl Stritzel McCarthy

Tony Moceri

Tara Gilligan Reimer

Lorraine Wilde

GUEST COLUMNISTS Patrick Byrnes

Elizabeth Hovde

Todd Myers

ART DIRECTOR Whitney Pearce

PHOTOGRAPHY Sattva Photo

Cover Photo by Sattva Photo

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, Jim Haupt, Hotel Bellwether; Sandy Keathley, Former Owner, K & K Industries; Tony Larson, Founder, WBA; Sarah Rothenbuhler, Owner/CEO, Birch Equipment; Patrick Schuppert, Commercial Banking Relationship Manager, Wells Fargo; 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 1225 Roeder Ave., Ste. 108, Bellingham WA 98225. (360) 746-0418. Yearly subscription rate is $25 (US). For digital subscription, visit businesspulse.com. Entire contents copyrighted ©2023 Business Pulse. All rights reserved.

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IN THIS ISSUE

12 PASSING THE TORCH AT TEAM TECHNOLOGY

A business owner plans her exit.

19 INVESTING IN WORKFORCE DEVELOPMENT

Finding a trained, capable, reliable workforce continues to be one of the greatest challenges business owners face today.

26 WHATCOM COUNTY’S CLOSEKNIT DAIRY COMMUNITY

As with most entrepreneurs, these dedicated farmers are driven by passion.

31 MADE TO ORDER

Innovation — and coffee shop conversation — spur growth of local furniture business.

35 PERSONALLY SPEAKING

Meet Dylan Deane-Boyle, Bellingham Whatcom County Tourism’s new president and CEO.

37 A GREENER FOOTPRINT AND HIGH-PAYING JOBS

Cherry Point industrial zone offers many opportunities for future development and jobs.

46 WHATCOM BUSINESS AWARDS

Winners and highlights from this year’s event.

COLUMNS

41 Selling a business requires careful consideration of the many different factors

44 The countdown to the collection of the new WA Cares payroll tax is on

50 Gas prices have increased since new CO2 tax — by as much as a half dollar per gallon

4 BUSINESSPULSE.COM | MAY/JUN 2023 26 31 12

Sunnier days ahead

Looking forward to engaging with others and celebrating new opportunities

As we slowly transition from spring to summer in our corner of the United States, there is a hint of excitement in the air to get outside and enjoy everything our region has to offer. Now that events like Ski to Sea have returned after the COVID-19 hiatus, we look forward to engaging with others and celebrating the opportunities that our long, sunny days permit.

This issue of Business Pulse includes highlights of the talented leaders and dynamic businesses celebrated at our sold-out 36th Annual Whatcom Business Awards gala March 23 at Semiahmoo Resort. I want to take this opportunity to thank our many sponsors, attendees, guests and Whatcom Business Alliance crew for your ongoing support and participation in the 2023 event of the year! If you missed it, we’ve got some great event photos and highlights starting on Page 46. We hope you will join us next year

to celebrate the backbone of our community — the business owners and leaders who work so hard to support our day-to-day lives. Nominations will be open in September for the 2023 annual awards celebration, planned for early next year.

In addition to our advocacy articles, this edition features several inspiring stories about Whatcom County businesses — some that are thriving just as they are and others that are considering changes. Regular columnist Cheryl Stritzel McCarthy profiles a business owner planning her exit strategy — with her employees in mind — in “How Do You Say Goodbye?” on Page 12. The salient points of selling a business are highlighted in “Selling a Business? Planning Ahead Is Key,” on Page 41. Cheryl also covers local small business Northerly Customs’ flourishing furniture business and the key that catapulted sales.

The difficulty of finding skilled or even motivated workers nowadays is reaching a crescendo. Delve into Lorraine Wilde’s story on workforce chal-

lenges that many businesses, both here and across the nation, are facing. Meet tourism CEO Dylan Deane-Boyle as he settles into his new role in Whatcom County with Personally Speaking on Page 35. We welcome writer Tara Gilligan Reimer to our team; despite the imminent complete closure of Alcoa in Ferndale, her article gives us hope for the potential that the geographically gifted Cherry Point industrial zone offers for high-paying jobs in our region.

At the time this issue is heading to print, the 105-day legislative session is nearing its end. Whatcom Business Alliance has advocated for commonsense policies that support businesses and individuals in our region. We appreciate the prompt responses of our WBA members when action alerts have been necessary to raise our collective voices on important issues arising throughout the session. A full report on what went right and wrong in the Washington Legislature will be included in our next issue.

6 BUSINESSPULSE.COM | MAY/JUN 2023 BP UP FRONT

In the meantime, enjoy this issue of Business Pulse. Thank you, as always, for your ongoing support to fellow readers and our leaders and advertisers. We could not do what we do without you!

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Bellingham Cold Storage to open new storage facilities in Skagit County

Bellingham Cold Storage (BCS), a leading provider of frozen, chilled and dry storage, will open two new warehouse logistics facilities in Skagit County June 1, 2023.

“For the past 77 years, BCS has been a very customer-centric provider of warehousing and logistics services to the United States, Canada and internationally, and we are excited to be a supportive part of the Skagit Valley business community,” said Doug Thomas, president & CEO of Bellingham Cold Storage.

The BCS–Burlington cold storage facility — located at 301 S. Walnut Street in one of three buildings formerly operated by Americold Logistics — includes a 69,700-square-foot cold storage warehouse and an enclosed 7,000-square-foot loading dock with five dock-height doors for truck and railcar loading. The facility will accommodate frozen products that require receiving, storage and outbound picking and distribution services throughout North America and beyond.

The BCS–Burlington dry storage warehouse — located at 1600 Port Drive — will add 65,000 square feet of dry storage. It features 16 dock-height doors and a surface-level drive-in door. This facility will accommodate various dry goods and materials that are often integral to food processing and value-added activities for BCS customers.

“BCS will continue to operate independently throughout the Pacific Northwest and uphold its commitment to providing customers with the same highly detailed services that we have become known for,” said José Roques, BCS senior vice president of marketing and sales.

Visti www.bellcold.com.

Launching Success moving to downtown Bellingham

A woman-owned retail store with educational toys and materials for all ages is moving to downtown Bellingham.

Owned by Jen Scheib and Kristen Ladiges, Launching Success will relocate to the former Perch & Play space at 1707 N. State St. The store’s last day at 133 Prince Ave. will be May 26, and it will reopen May 30 in a 6,000-square-foot space in downtown Bellingham.

“The new location is close to Interstate 5 and will be easy to reach for customers, as well as providing us better visibility,” Scheib said. “The fresh start also will include some new product selections.”

Launching Success offers a wide variety of products. Some of the top categories are science, building, preschool and early learning and social/ emotional development.

“We love children and believe that good education equips young people to become adults who make our communities a better place to live,” Scheib

said. “Our goal is to provide educators and parents teaching tools that lead to the best learning possible.”

A grand reopening and 20th anniversary celebration will be held June 24. Visit launchingsuccess.com.

Western Refinery Services promotes three managers

Ferndale-based Western Refinery Services recently promoted three managers to positions of increased responsibility.

Dustin Bliss was named construction manager, overseeing all aspects of construction operations. He is responsible for managing the people and direction of the division, bidding projects and reporting to ownership. Bliss has 10 years of experience in the construction industry, including eight years at WRS.

Sam Kloes took on the role of general superintendent in addition to his role as construction technology manager. Kloes has been at WRS for six years and has 20 years of experience in the construction industry. As general superintendent, his primary responsibility is ensuring that WRS foremen and superintendents have the manpower and equipment they need to perform work in the most efficient manner possible.

Evan Zofkie, a WRS employee for the past five years, was promoted to project manager. He now estimates projects for future work while man-

8 BUSINESSPULSE.COM | MAY/JUN 2023 BP NEWSMAKERS
Jen Scheib Sam Kloes Evan Zofkie Doug Thomas Peter Finfrock

aging current projects to ensure they stay on track with their budgets and schedules.

Visit wrsweb.com.

Port acquires complex to support industry

The Port of Bellingham has purchased about 6 acres, including six buildings with approximately 71,000 square feet of office and industrial space, to support the continued growth of Whatcom County industries. The Port’s new industrial complex is located at 742 Marine Drive and is less than a mile from Port-owned land and buildings near Squalicum Harbor.

“Whatcom County’s industries are thriving, and there is strong demand for Port-owned land and industrial space,” said Port Commission President Michael Shepard. “The Port’s new industrial complex provides another strategic asset to support the growth of our economy and create good-paying jobs for our community.”

Port land and infrastructure are vital assets to Whatcom County’s economy and create and support thousands of jobs.

“Expanding industrial areas is a priority for the Port,” said Port Executive Director Rob Fix. “There are significant opportunities for growth, and the acquisition of a new industrial complex better positions the Port to support our existing tenants and recruit new employers to Whatcom County.”

Throughout Whatcom County, the

Port owns approximately 1.4 million square feet of office, commercial and industrial building space. It has contracts with 250 industrial and commercial tenants that provide thousands of jobs for the community. Learn more at portofbellingham.com.

Bradley Engineering Inc. employee gains professional engineer license

Bellingham native Peter Finfrock has been working at Bradley Engineering for nearly five years. He has been involved in more than 750 structural engineering projects, including single-family and multifamily homes, commercial buildings and barns. He graduated from Montana State University with two degrees, including one in mechanical engineering. Finfrock recently passed the Principles and Practices of Engineering exam to complete requirements for the professional engineer license.

“As a growing structural engineering firm, Bradley Engineering is committed to providing our clients with the highest level of expertise and professionalism,” said company founder David Bradley. “We are confident that Peter’s new licensure will benefit our clients and further enhance our firm’s capabilities.”

Visit bradleyengineeringinc.com.

Museum honors Schatz with SPARK Award

SPARK Museum of Electrical Invention recently presented its SPARK

Award to Dennis Schatz, a renowned science educator and advocate for informal science education. The award, which recognizes outstanding contributions to science education and advocacy, was presented at Ignite the Night, the museum’s fourth annual fundraiser, March 18.

“We selected Dennis Schatz for his dedication to informal science education and his huge impact on science education in general,” said John Jenkins, SPARK Museum president and CEO. “Making science accessible and relevant is something we strive for at the museum, and Dennis is a wonderful choice as we look to honor those who are truly making a difference when it comes to science education.”

Visit sparkmuseum.org.

Peoples Bank names Anndi Pena senior mortgage loan officer

Peoples Bank recently announced the appointment of Anndi Pena to senior mortgage loan officer at the Barkley Financial Center. She brings 36 years of experience in the financial services industry and has specialized in residential mortgages since 2007.

Visit peoplesbank-wa.com.

Bellingham architecture firm promotes long-term staff member to principal

Since joining RMC Architects in 2006, Jason Williard has distinguished himself with a rare combination of determination and confidence coupled with good humor and personability, the company stated in a press release announcing his promotion to principal.

“Jason is tenacious in the high standards he sets for his work and is respected by his colleagues, peers and the RMC staff as a true leader,” the company wrote.

Williard has worked on some of RMC’s most notable projects, in-

9 MAY/JUN 2023 | BUSINESSPULSE.COM
Dennis Schatz Anndi Pena Jay Chen Jason Williard

cluding Peoples Bank in the Barkley Financial District, the Rocket Building in the Fairhaven Historic District, Spring Street Landing on the Friday Harbor Waterfront, and Bellingham Public Schools District Office Building, currently in progress. Visit rmcarchitects.com.

The Muljat Group in Bellingham welcomes new broker

Jay Chen, who has represented clients in 59 home sales valued at more than $34 million in the past two years, recently joined The Muljat Group in Bellingham as a broker.

Chen has more than three years of real estate sales experience and nine more years of marketing and sales experience. His family immigrated from Taiwan to Bellingham in 1999. Chen graduated from the University of Washington and is fluent in Mandarin Chinese.

“I treat my clients exactly how I’d like to be treated,” Chen said. “I don’t like to be pressured, so I never pressure my clients. I like to be treated kindly, so I always bring a positive attitude. I don’t let people down with empty promises, so I do exactly what I say.”

Retail vacancy rate continues decline

The market for retail space in Bellingham was surprisingly strong in the first quarter of this year, according to a report prepared by Ryan A. Martin, co-owner and broker at Pacific Continental Realty in Bellingham. Bellingham’s retail vacancy rate declined for the third consecutive quarter, this time by 0.1%.

“Both the retail asking rate and the vacancy rate at the end of the first quarter were the best in Bellingham in the last two years,” Martin said. “The asking rate increased from $19.36 per square foot to $19.86 in that period, and the vacancy rate has fallen from

3.6% to 2.7%.”

“Over the last couple of years, we are finally seeing a shift from traditional retail uses of space to more activity-based retail tenants,” Martin added. “This is evident in the Bellis Fair mall, as we see new tenants that include an alternative high school, Airsoft gaming room, community wrestling, and Playdate (young children’s play and party area).”

Overall, the commercial real estate leasing market in Bellingham remains strong despite continued interest rate increases from the Federal Reserve.

“The national commercial banking concerns caused by a handful of recent bank closures have yet to have a direct impact on demand for Bellingham commercial real estate,” Martin said.

The market for industrial space in Bellingham became even tighter, with the vacancy rate falling again from 1.2% in the fourth quarter of 2022 to 1% in this year’s first quarter. While the average asking rate for industrial space dropped from 89 cents to 83 cents per square foot, Martin said this is because the remaining available space is the most challenging to lease due to unique characteristics.

Like most of the country, Bellingham’s weakest commercial property sector is office space. The current vacancy rate for office space in the city ticked up again to 5%, which is up from 4.9% in the fourth quarter of 2022 and from 3.6% in the second quarter.

“The decline is mostly due to the recent trend of large office tenants downsizing their office footprints to reduce overhead costs and accommodate the work-from-home movement, plus anticipation of a slower economy this year,” Martin said.

The average asking rate for office space in Bellingham dropped during the first quarter, from $19.88 per square foot to $19.78, but it has increased 35 cents per square foot since one year ago.

Whatcom County home sales — but not prices — plunge in Q1

The rise in mortgage rates over the past year significantly affected how many Whatcom County homes were sold in the first quarter compared to a year ago. However, sale prices were not affected.

Just 423 homes were sold in the first three months of this year, a 29.5% fall from last year’s first quarter, according to Peter Ahn, co-owner of The Muljat Group in Bellingham. Ahn prepared a report based on data from the Northwest Multiple Listing Service.

However, the median price of Whatcom County homes that did sell was $584,950, a dip of only 2.5% from a year ago.

“The market will require time to adapt to higher interest rates, but we don’t anticipate prices to fall dramatically,” Ahn said. “Inventory is still very low, and Whatcom County has very desirable places to live.”

“Another contributing factor to home prices not dropping much are the loan products that are available. Buyers are able to obtain buydowns for their mortgage rates, and many times the contributions come from the seller.”

The other notable takeaway from Ahn’s report was the average time homes were on the market before being sold, which soared 148% countywide to 62 days. Bellingham, typically the county’s hottest home market, jumped from 16 days in the first quarter of 2022 to 48 days in this year’s first quarter.

“We’re at the very early stages of higher interest rates,” Ahn said. “Sellers need to become more patient with selling their homes. Unless your house is in a core neighborhood or is priced competitively with the intent to sell quickly, it is becoming more and more realistic that your house will require up to two months to sell.”

10 BUSINESSPULSE.COM | MAY/JUN 2023
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HOW DO YOU SAY GOODBYE?

A business owner plans her exit

“My goal was to leave this company in the best position possible for its continued success. Every single employee is equally important to this company. They all are what make it incredible.”

Goodbyes are hard. Business owners know that as well as anyone. Patty Seaman, president and owner of the computer consulting firm Team Technology, took five years to decide on her succession plan.

She is selling her Bellingham-based company to its employees, at 5% per year to each of the five employees. She launched the plan Jan. 1, so the transfer will be complete four years from now.

Team Technology serves as computer consultants to small- and medium-sized businesses and augments in-house information technology at larger businesses. Clients range from businesses with three workstations to corporations with 200-plus workstations in multiple states and are located from Seattle to the Aleutian Islands, with remote workers across the country. Team Technology earns more than $1 million in revenue annually. Recurring revenue for its services has more than doubled over the last three years.

“My goal was to leave this company in the best position possible for its continued success,” Seaman said. “Every single employee is equally important to this company. They all are what make it incredible.”

How did she go about it? “My recommendation is to find someone who

12 BUSINESSPULSE.COM | MAY/JUN 2023
BP FEATURE

knows the ins and outs of the process,” Seaman said. “I was lucky to have been given the advice to meet with Kirsten Barron (of Barron Quinn Blackwood, in Bellingham). She was the key to this process.”

Seaman highlighted the pluses of the plan. “All employees are being treated with the same sense of value. I think this is critical. They are being entrusted — and are trusting each other — with the future of the company. The work they put into the company to make it sustainable is in every

way an investment into their futures, not only for job security in the way anyone who has worked for a small business has experienced, but for the actual value of the company related to their stake in it.

“I don’t feel like there really are any cons yet,” Seaman said. “I just need to let go.”

In this industry, most companies like Team Technology are sold to the highest bidder, and indeed Seaman received multiple offers.

“The market seems to be rapidly

consolidating, which only helps to differentiate us in the long run,” Seaman said. “Maybe I am naïve. It isn’t about the money for me. I spent 18 years trying to make Team Technology the best possible place to work. Life is short. There isn’t anything more important than family and it would hurt to see that environment changed.”

What makes the transfer to employees the best solution?

“The employees. In our field,” Seaman said, “you can find brilliant peo-

13 MAY/JUN 2023 | BUSINESSPULSE.COM
Top photo with the team (from L to R): James Bastnagel, Brett Chamberlain, Patty Seaman, Jessie Spoelstra, Joel Dobbins and Joe Gauthier. PHOTOS: Sattva Photo

ple. But when you find these people and they are a joy to work with, you have a winning recipe.”

History

Seaman was working for another computer consulting firm in Bellingham in 2005 when the opportunity came up to buy its customer base. “I was an empty nester (my youngest had just started at Western) and was asking ‘what next?’” Seaman took it over three weeks later. Counting herself, it had three employees.

Over the years, employee numbers fluctuated depending on client needs. For the past five years, Team Technology has had the same six employees, including Seaman.

“Over the years, we grew to as many as 15 employees,” she said. “But the overhead grew also. I found the sweet spot was around 6 to 8 employees. … In 2017, our turnover dramatically

stopped as our culture shifted from being metrics-based to results-based; in fact, since 2018, we’ve had no turnover whatsoever. When you find a group of professionals who are willing to be honest about their strengths and limitations, prioritize the best interests of clients, and share the burden of work as a real team does, that is the right sauce.”

Seaman herself took a circuitous route to Team Technology. She was studying natural resources management at California Polytechnic State University in the early 1970s and worked as a firefighter in 1975. “I was one of the first female wildland fire fighters that season. That was quite a difficult role to fill. Not for the work, but for the acceptance of a woman in that position. That made me question my future.

“I moved to Lake Tahoe and skied for two years, then moved to Lopez Island for four years. In 1981 I moved to

Bellingham to go back to school. The task was to find a career where I could make a living in Bellingham. I ended up going to Skagit Valley College and getting a degree in computer systems technology. I was in the first graduating class for that new degree. I was hired on at Paccar Technical Center (a Mount Vernon-based company that designs and manufactures trucks such as Kenworth and Peterbilt) before I graduated.”

Advice

What advice would Seaman give to other companies considering various succession plans, including one like this? “Think long and hard about what you want. How will the employees feel? And your customers?”

With a step this momentous, you can see why five years is not too long to research, contemplate and finalize the decision.

ESOP, employee-owned — what’s the difference?

An ESOP (employee stock ownership plan) gives ownership to employees by allocating shares from an ESOP trust. It’s a federally regulated benefit plan. The trust owns the corporation and exists to benefit current and future employees. Employees don’t “buy in,” but rather they accrue shares while working and receive the value of those shares upon separation or retirement. Employee owners may or may not be voting members. Companies that choose ESOPs usually have at least 20 employees.

It’s worth remembering that significant variations exist

within ESOPs and other employee ownership plans, which can be as different as the companies that use them.

At an employee-owned company, sometimes called an employee cooperative, employees become direct owners of the company via gradual buy-in (loans can come into play). Usually, each employee has one vote. Employees become — or in a larger company, elect — the board of directors.

Both routes have tax advantages.

14 BUSINESSPULSE.COM | MAY/JUN 2022

How Team Technology is doing it

five employees, starting now and finalizing in 2026.

have a conversation,” Barron said.

Selling your company to its key employees is no more expensive or cumbersome than to a third party, said Kirsten Barron of Barron Quinn Blackwood.

Barron, a Bellingham-based business and employment lawyer, helped Patty Seaman, president and owner of Team Technology, create her plan to transfer her company gradually to its

That measured pace serves as an educational and acclimation period, Barron said. “Nobody gets thrown in without information or knowledge. They learn how it’s managed, what comes up every year. They practice with the current owner, making decisions.”

It’s set up so the original owner retains control while bringing new owners on board.

Step by step

First, ask your employees if they’re interested in ownership. “Identify the key people who you believe have the capacity to take on the business, and

With that affirmative, at Team Technology three things took place:

1. Seaman and Barron created a shareholders’ agreement to govern operations of the company and relationships of owners. Rather than giving each shareholder an equal vote immediately, this agreement gives each shareholder a vote equal to the percentage interest. So, if the original owner has 75% ownership, she gets a 75% vote on the board of directors. “Owners typically want to maintain control until they’re fully exited,” Barron said.

(continued on page 16)

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"Fridge Raider" PHOTO: Sattva Photo

2. Seaman immediately gave a small percentage of her shares to each employee, totaling less than 5% collectively. “That creates a situation where everybody’s in,” Barron said. All employees are now shareholders, and all serve on the board of directors. It acknowledges employees’ contributions in the past and into the future, Barron said.

3. The corporation, meaning the five employees, in 2023 redeemed their first 25% of Seaman’s remaining shares. “By the end of 2026, they’ll own it entirely and (Seaman) will be entirely out,” Barron said. “I did reserve this right for Patty: Anytime she owns less than 50% of the stock, she has the right to force the corporation to buy her out entirely (making sure

the purchase price is something the company can finance). Patty has the option to stay in for four years, two of which will be as a minority shareholder, or she can sell her interest to the company and say, ‘yeah, I think I’m done here.’”

Pros and cons

“Your employees likely know more about the business than a third-party buyer, which makes it more likely they’ll be successful. It’s a great way to bolster employee retention. It’s a ready exit strategy; if your employees are willing, you don’t have to go out and find a buyer,” Barron said.

Drawbacks? That depends whether the current owner wants out immediately. Barron believes this structure

works better if the current owner is willing to stick around for a while.

Also, you might never know what you could’ve gotten on the open market. “Appraisals are supposed to reflect the market, but there’s always a question of whether they do,” Barron said. “If you want to get every cent out of that business, maybe this is not the path.”

Address it

“A lot of business owners don’t know how they’re going to exit,” Barron said. “Thinking about it is a good idea. Think about whether your team is a good exit strategy.

“I’d want to hire people with an ownership mentality anyway … and treat them like that.”

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Investing

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in workforce development in Whatcom County Dividends expected today and long into the future Lorraine Wilde
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Finding — and keeping — a trained, capable, reliable workforce continues to be one of the greatest challenges business owners face today in Whatcom County and across the nation. The skilled trades and STEM (science, technology, engineering and mathematics) fields are experiencing the greatest need. A perfect storm of barriers has resulted in worker shortages across virtually all business sectors, hindering growth.

Thankfully, a coalition of local governments, colleges and universities, trade organizations, nonprofits and businesses in Whatcom County are working harder than ever to ensure that resources, opportunities and support are in place to develop workers to meet current demand and ambitious, long-term economic goals. By bringing together community leaders, big-picture thinkers and public and private resources, locals are confident that collaborative efforts will help both youth and incumbent workers adapt and succeed in the trades and STEM careers in a constantly evolving global economic climate.

Step one: understanding the problem

Although we don’t all agree on exactly how we got here, there are a few obvious contributors.

“The pandemic put a huge pause on workforce development, because we weren’t able to align opportunities as a community — we were all working from home,” recalled Anya Milton, former executive director of the Ferndale Chamber of Commerce, now serving as Bellingham Technical

College’s director of corporate and continuing education and work-based education.

About 75,000 fewer students were enrolled in community and technical colleges in the 2021-2022 academic year compared to before the pandemic, according to the 2022 Washington Student Achievement Council Report. That is also the case for BTC, which has been training students for technical careers for more than six decades. Enrollment is down in most of its associate degree and certificate programs, as are Whatcom Community College’s community and continuing education and degree and certificate programs. A number of factors have contributed to the enrollment declines, and we don’t fully understand them all.

“People found other means of getting income during the pandemic, and maybe quality of life is another aspect,” Milton said. “For some of these young folks, the last three years of their education have been spent online. Those are pivotal years of development — especially socially — for these upcoming workers, and it will take them some time. But there is a renewed urgency

to align opportunities from the K-12 system to community and technical colleges.”

Even before the pandemic, the skilled trades had struggled to maintain workforce numbers. “In the early ’90s, ‘vocational education’ became ‘career and technical education’ or ‘CTE,’” explained Deb Granger of the Working Waterfront Coalition of Whatcom County. “We worked hard to change the perception that it was, you know, lesser than or not as rigorous as the four-year system.”

The coalition, which Granger helped found in 2015, now includes 135 businesses and individuals focused on preserving the county’s working waterfronts. Their primary initiatives include connecting students with training.

Granger recalls how young people were increasingly encouraged to pursue four-year degrees with promises of higher wages, advancement and job security — promises that are not being realized for many today.

“When students hear that and think, ‘I’m not cut out for college,’ they don’t have a clear idea of what their other options are,” Milton said.

Lance Calloway, northern district manager of the Washington Chapter of the Associated General Contractors of America, agrees.

“Only about 30% of the kids that graduate high school go on to college,” he said. “But, unfortunately, too much of our time is focused on that, so we’re short-changing the other students. I’ve seen good change in some sectors, but we also really need to change the mentality of mom and dad.”

Granger agrees that educating par-

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“For some of these young folks, the last three years of their education have been spent online. Those are pivotal years of development — especially socially — for these upcoming workers, and it will take them some time.”
Anya Milton

ents and changing perceptions has helped the pendulum swing back toward hands-on learning. But the problem in the trades is expected to continue to grow.

“Statistically, there will be about 750,000 experienced tradespeople

expand educational attainment, and align employer needs with educational programs and curriculum.” In addition to Team Whatcom, a number of other programs are attempting to find or be the solution.

Although enrollment has declined since the pandemic, Running Start has been active in Washington state high schools for three decades. The program allows high school juniors and seniors to take classes for simultaneous high school and college credit at community and technical colleges.

High schoolers interested in the construction industry can explore via the Washington state program, Core Plus Construction, administered by AGC’s Education Foundation. Students can explore construction indus-

try careers through hands-on learning while earning high school credit.

“Industry professionals are coming into the classroom and working with the students directly,” Calloway said. The real-world skills and experience will help them in jobs, apprenticeships, trade school certificate programs, twoand four-year colleges and the military.

Calloway says Bellingham School District is one of 52 across the state with the Core Plus Construction program, and another is in the works for Blaine School District in fall 2023.

Lummi Nation School also has 60 students in the Core Plus Maritime program.

“In 2016, the state determined that

(continued on page 22)

opment are stepping up to plan and implement actions to address the community’s needs. The Port of Bellingham’s Economic Development Division Regional Economic Partnership formed Team Whatcom, a coalition of leaders from more than 30 entities focused on economic development, including tribes, city and county governments, business and nonprofit organizations and educators. The group has met twice a month for the past several years in pursuit of the REP’s goal to attract (and retain) livable wage jobs and to help ensure the success of businesses, entrepreneurs and local organizations.

In October 2021, the group produced the Whatcom County Comprehensive Economic Development Strategy 2022-2026 report, which included a goal to “develop a skilled workforce,

21 MAY/JUN 2023 | BUSINESSPULSE.COM
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‘Finally, everything fits’

Four-year grad finds his calling in two-year technical college program

Julian Perren tells a story about education after high school that, finally, a lot more people believe.

He is about to complete a two-year degree in automotive technology at Bellingham Technical College, and his delight — in completing his education, maintaining a 4.0 grade point average and finding his calling — is palpable.

“BTC has been an incredibly transformative place for me,” he said.

His graduation this June from a skills-focused school comes after his completion of a four-year degree.

Having rebuilt his first car at age 15, Perren has always loved figuring out how cars and trucks work and run. But family and peers told him: “You don’t want to be a grease monkey your whole life.”

Following the conventional wisdom from 10 years ago — that a four-year college program would lead to financial stability and happiness — Julian earned a bachelor’s degree (biology major, chemistry minor) at a state university in Oregon.

“I really wasn’t very happy doing that,” he said. “Large universities, versus smaller colleges, do not have resources to support individual students, in my opinion. I also accrued a lot of debt.”

Geographical wandering followed, and Perren conveys wonder at the duration.

“I worked in labs in concrete buildings: didn’t like that,” he deadpanned. “I fought wildfires in California. I was a palm-frond hacker in Maui.”

Tired of cobbling together jobs that didn’t feel rewarding, Perren and his fiancee researched West Coast towns and

chose Bellingham, sight unseen.

He looked up BTC and was happy to find the automotive technical program. Then, he was delighted to experience the satisfying fit.

“The big difference in trade education is hands-on learning. I put into practice what I’m studying,” Perren said.

He loves the balance between cutting-edge technology studies and hands-on diagnosis.

“BTC makes you work as an intern in your first summer,” he said. “This is great. Internships add to that practical, functional progression.”

Perren started his internship at the job he landed on his second day at BTC. Ultimately, Perren said faculty make the difference.

“Look, in pre-med, I had teachers who were Ph.D.s and experts in their fields. No one was anything like Dan Beeson.”

A BTC instructor since 1996, Beeson also has years of experience at dealerships and shops as well as industry technical certifications.

“Dan is the reason the program is what it is,” Perren said.

Perren summed up how a calling became a career: “Finally, everything fits — and that feels weird, because for so long, nothing fit.”

Earnings and happiness can come from many places, including an acclaimed technical college with a mission of placing graduates into satisfying, well-paying and needed jobs.

the maritime sector was the thirdmost influential industry in the state of Washington, following aerospace and IT (information technology),” Granger said. “That surprised the heck out of everybody, including the governor. So now the maritime sector is getting some awareness — and funding.”

Granger said she believes the places this foundational learning will take students are limitless.

“Life sciences, biology, habitat restoration, fisheries and aquaculture, sustainable seafood harvesting and processing, alternative fuels, maritime heritage, preservation or writing — you name it, and there’s more.”

Taking training in-house

“AGCW members Barron Heating and Andgar both are actively recruiting for their own in-house universities,” Calloway said. “In Andgar’s eight-week program, if you qualify, you get introduced to all aspects of the company and industry. They help you figure out what you’re most attuned to, what you like — and the whole time, you’re getting paid.”

Whatcom Business Alliance’s YESWhatcom program maintains a recruitment tool for Whatcom County employers, including a board for paid internships, apprenticeships and job training roles for youth ages 16 to 24.

Nonprofits are also stepping into critical roles in advising and advocacy. “Technology Alliance Group of Northwest Washington has been advocating for technology education and accessibility in Whatcom and Skagit Counties for more than 23 years,” said Meg Weber, former TAGNW

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executive director and current board president. Western Washington University’s director of community engagement and a lead entrepreneurship instructor, Weber has been a longtime member of Team Whatcom. “TAGNW member volunteers are doing amazing community collaborations through our evolving Whatcom STEM program to further our mission to advocate for STEM education, career-connected learning and digital literacy,”

Running parallel to all of these programs, traditional apprenticeship is evolving rapidly at

that 15% now. We need to increase the pipeline for new apprenticeship programs as long as everyone is meeting the same standard.”

Whatcom County could use more apprenticeship opportunities. BTC currently offers just two state-funded and approved apprenticeship programs. The Aerospace Joint Apprenticeship Committee program supports students enrolled in training related to aerospace manufacturing. BTC also oversees the AGC Inland Northwest Apprenticeship program, which trains construction operators, laborers and contractors.

Skagit and Island counties are expected to attend. More than 25 contractors and subcontractors, public agencies and governments will present. “And not just the skilled trades,” Calloway said, “but things students didn’t know existed, like planning software, construction electronics, safety, ergonomics. Students will be able to climb on a scissor lift, try instruments and compact concrete.” Students sign up through their CTE teacher or school counselor to attend.

In the March/April 2023 issue of Business Pulse Magazine, an article highlighted the significant state-required changes in electrical apprenticeship pathways that take effect this summer. Despite clear advantages, many worry the state will not be able to certify programs fast enough, and this will eventually extend to other trades down the road, if the Washington State Department of Labor & Industries gets its wish.

A bill just approved by the Washington Legislature, ESHB 1050, could aggravate the issue. “The bill would require municipalities with public works jobs over $2 million to have a minimum of 15% apprenticeship on the project … which is good,” Calloway said, “but the problem is the access to apprenticeship. Contractors are telling us they are having trouble meeting

A new Northwest Maritime Apprenticeship was launched in October 2022. “It trains marine service technicians who work on repairing, fitting, building and outfitting boats up to 150 feet — smaller commercial and recreational vessels,” Granger said. She and others volunteered hundreds of hours to find and develop the program and get it through a complex process. “It’s provisionally approved by the state and trains these technicians to work in wood, fiberglass, metal, design and five other areas under certified instructors. It’s an incredible feat.” According to Milton, BTC is working to become the new program’s fiscal sponsor.

Coming down the pike

A number of programs and spring job fairs are also in the works to connect students, workers and businesses in the community.

AGCW is organizing Construction Career Day on May 11 at the Northwest Washington Fairgrounds in Lynden. Up to 300 high school juniors and seniors from Whatcom,

New facilities could also be on the way. Washington state boasts 14 regional secondary schools, called skills centers, that offer CTE training to high school students from multiple school districts. “Those programs are really capital and labor intensive, with state-of-the-art equipment and teachers certified to use it, so you can’t afford to have a program at each high school,” Granger said. “This legislative session, they are considering adding a new skills center in Whatcom County.” Granger is advocating for the new center to include another Core Plus Maritime program.

Despite the issues that have led to the current worker shortages, community leaders agree that Whatcom County is poised to develop its workforce.

“The reality is that when we pause things, in real life, it takes a long time for things to get back to full speed,” Milton said. “We just all need to slog through and make sure we are all aligned. And the more we can talk about what all the options are, the better we can work as a community to address these issues and help people get to work.”

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Tech degrees ‘open up doors — and don’t close any’ for family with four in instrumentation program

Anna Brewer homeschooled her three children and now works in the insurance industry. But she also could be a spokesperson for vocational colleges that emphasize technical skills and direct job placements.

Next year, Anna’s husband, Jeremy, and their three children plan to graduate from the Bellingham Technical College instrumentation and control technology program.

“After graduation,” Anna said, “they will be ready to work immediately in the instrumentation field. Their instrumentation careers may not be lifelong. But they’ve learned skills that will benefit them in any career.”

Instrumentation and control technicians are in high demand because, as Jeremy points out, these experts are needed in every industry “from Paccar and Pepsi to refineries and McDonald’s.”

Technicians install, maintain and repair the instruments that make plants run.

Anna, in her most “challenging mission,” homeschooled all three children, with the support of the family’s faith community at Calvary Creekside Church in Everson. Like all parents, Anna and Jeremy wanted to help their kids with the “what’s next after high school” question. Anna’s uncle, whose own children graduated from BTC,

steered the Brewer family toward exploring the program.

Twins Isaiah and Isaac, then 18 years old, enrolled in BTC’s instrumentation program. Jeremy, a self-described tinkerer and mechanical troubleshooter, thought, “I wish I had done that program.”

(Twenty years ago, he earned a BTC degree in mechanical engineering and then built a construction career in refineries, from Anacortes to Alaska.)

So, Jeremy enrolled, and 16-year-old Isabella joined the program, too. She is simultaneously completing high school and college credits through the Running Start program at BTC.

“We have a built-in study group,” joked Jeremy. And on a compelling note, both parents also raised children who are differentiated in their strengths and naturally engaging. In a reflective and rollicking group interview, every family member — collectively these four are racking up a 4.0 grade point average — offered up insight into the power of technical colleges.

Isaiah, now 19, cited the program’s hands-on work as his favorite part.

“I like the labs,” he said, proceeding to rattle off how to build a 24-volt power source with an electrical box, batteries and voltage regulator.

Isaac, also 19, was not shy about

jumping into the conversation, jokingly disagreeing with his twin to say that his favorite part of the program is working in groups and getting to know other students — an important part of any workforce team. Isaac also explained another hands-on lab project: constructing a combination lock circuit for workplace security.

Their 16-year-old sister Isabella said she is the only female in her entire program. Even though math is not her favorite subject, she is logical.

“I love doing the write-ups on lab work,” she said. “I like putting together the reports, describing with words and pictures how processes work.”

Jeremy, ever the parent, spoke about the pragmatics of post-high school education.

“Finances are often the hardest part,” he said. “The school will help you find the funds through scholarships and financial aid — no matter what.”

Isabella added that technical college feels like “high school without the drama.” She added, “I’m not taking random classes. I’m doing exactly what is right for my career.”

For anyone exploring what happens after high school, the Brewer family offers a complete testimony. Jeremy summed it up: “It doesn’t matter where you start. If you like a program at BTC, you will find your way there.”

24 BUSINESSPULSE.COM | MAY/JUN 2023
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Doing a body good

The Whatcom County dairy community is passionate about persevering in a challenging climate

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Tony Moceri
PHOTO: Sattva Photo

Whatcom County’s dairy community is a tightknit group of families who take great pride in what they do. As with most entrepreneurs, the decision to own a business is driven by passion. Family, animals and the land drive this passion for dairy farmers. Most local farms are multigenerational endeavors that see family members working shoulder to shoulder, day in and day out.

“There are some rough days once in a while, but I’ve never woken up one morning and thought, man, I don’t want to be a farmer,” said Galen Smith of Coldstream Farms. “I love what we’re doing. One of the great things that we have as a family business is working side by side with my brother, my father-in-law, my wife, my sister-in-law and my kids. That’s a lot of fun. I mean, it can be challenging, but we have to be mindful of how we treat others because we’re going to go sit down and have Christmas dinner together.”

For Shannon Smith of MyShan Dairy, animals are a huge part of the draw.

“My favorite thing about being a dairy farmer is working with the animals and seeing my grandkids working with the animals and getting to see them grow,” she said. “They get to see what hard work really is. For everyone that works the farm, it’s a passion besides a job.”

Enjoying the lifestyle is a must if someone is going to be a dairy farmer. No one gets into the business because it’s easy. Every year, the dairy community faces new challenges just to get its products into the stomachs of cus-

tomers. Selling milk is not as simple as saying, “my expenses are X, so I am going to sell my product for Y.” Prices are often locked in, and the farmers have little or no control over what the price of milk is. They work their farms as efficiently as possible, hoping that at the end of the year, they have turned a profit so that they and their family can do it again the following year. The number of overall farms has been dwindling, and those that still exist have done so with innovation and business acumen.

DID YOU KNOW?

June Dairy Month started out as a way to distribute extra milk during the warm months of summer. The commemoration was established in 1937 by grocer organizations sponsoring “National Milk Month.” By 1939, June became the official “dairy month,” still celebrated today.

“In 2006, our daughter and son-inlaw asked if they could join our dairy,” said Larry Stap of Twin Brook Creamery, a fifth-generation farm that started in Lynden in 1910. “You’re always pretty thankful that you have another generation that wants to farm, because too many farms are on their last generation. Instead of getting bigger, which would entail more land, more storage, more power, more everything, we looked at can we do something to add value to our raw commodity?”

27 MAY/JUN 2023 | BUSINESSPULSE.COM
PHOTO: Sattva Photo PHOTO: Sattva Photo
“My favorite thing about being a dairy farmer is working with the animals and seeing my grandkids working with the animals and getting to see them grow. They get to see what hard work really is.”
Shannon Smith, MyShan Dairy

What the Stap family chose to do was to begin bottling milk themselves in glass bottles. While the initial purchase of this milk is higher, people are able to return the bottles to the store for a credit, and Twin Brook Creamery can wash and reuse those bottles over and over again. Unfortunately, innovation can lead to new problems. Of late, some local grocers have stopped carrying Twin Brook milk because the product had become a target for shoplifters stealing the milk to get the bottle refunds.

Coldstream Farms has chosen to stick with the model of selling to the co-op distributor Darigold. In order to survive in the slim-margin milk business, the farm has turned to scale and technological innovation. Over the years, it has added to its herd while implementing new methods to help the cows and the land be as healthy and efficient as possible.

“I would say we’ve become less like farmers and more like businessmen trying to manage the day-to-day operations,” Galen Smith said.

With the price of milk becoming more volatile, dialing in all the pieces necessary to create a gallon of milk must become more precise. It all starts with the animals, who want good feed, land and consistency. Coldstream Farms implements cutting-edge methods for protecting the land and ensuring their cows get what they need. Each cow wears a health tracking device to upload its individual information. Not only does this provide vital health information, but it also teaches the farmers a lot about what the cows want. While there is a large feeding time at Coldstream Farms, with the cows able to choose when they come to eat, each individual cow has its favorite time and shows up within three to five minutes of that time every day. This told Galen Smith that, above all else, these habitual animals want consistency.

That consistency has been challenging lately, as supply chain issues have scrambled the acquisition of critical products. Everything is harder to get, from feed to cleaning supplies to

tractor parts. When products can be garnered, they are at a higher price, as inflation has hit the dairy community hard.

“Everything has gone up,” Shannon Smith said. “I was getting 50-pound bags of sugar for $22 to make our chocolate milk, and the price has increased to $65. That was just in the last six months, and people don’t understand why prices are going up at the grocery store.”

Inflation in diesel prices and labor costs also has significantly impacted family-owned farms. The increased diesel prices directly influence the cost of feeding cows and transporting milk. Increased wages, while understandable to the farmers who are often employing family and friends, make everything in the process cost more from start to finish.

While many of these challenges are felt by other business owners outside of dairy, another dramatic influencer of dairy farmers is the land itself. In addition to Mother Nature often throwing curveballs, regulation from various

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“I love what we’re doing. One of the great things that we have as a family business is working side by side with my brother, my father-in-law, my wife, my sister-in-law and my kids. That’s a lot of fun.”
Galen Smith, Coldstream Farms
PHOTO: Sattva Photo

government branches has jeopardized local dairy farming. Whatcom Family Farmers is a local advocacy group that helps unite the voices of individual farms. Most people don’t get the opportunity to see what happens on a farm, so voters often don’t have a complete picture when electing officials and implementing regulations.

While many collaborative efforts have been put in place, those efforts are often ignored, with top-down regulation being forced through. The proposed imposition of wooded buffers around streams and ditches leading to salmon-bearing streams is one of many examples.

“When you look at what the mandatory buffer ideas would do, it’s troubling because it would put a lot of family farms out of business,” said Dillon Honcoop of Whatcom Family Farmers. “We know that when farms go out of business, there is a pressure for pavement through urban development, which creates pollution. We need a healthy rural farming community that can be stewards of the land.”

Local farmers want to be a part of the solution to keep improving habitat and protecting our water. Through continued innovation and use of the latest science, farms can thrive alongside nature, and both our beautiful county and our generations of local

farmers can be preserved. The alternative is that our dairy becomes produced overseas in places where the treatment of animals,

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“You’re always pretty thankful that you have another generation that wants to farm, because too many farms are on their last generation.”
Larry Stap, Twin Brook Creamery
PHOTO: Sattva Photo PHOTO: Sattva Photo PHOTO: Sattva Photo

land, people and product is given less care. Dairy is one of the cheapest protein sources in the world. It is needed to feed our ever-growing worldwide population.

“When you’re hungry, little else matters,” Larry Stap said. “If we aren’t producing it here, we’ll just have to import all our food.”

Whatcom County’s dairy farmers have been feeding the region and the world for well over 100 years. While these local families continually face new challenges, they are determined through innovation and perseverance to ensure that future generations can feed their communities and work with the land and animals they love.

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PHOTO: Sattva Photo

Designed in Bellingham, built wherever

Innovation — and coffee shop conversation — spur growth of Bellingham-bred furniture business

Simon Graves’ embryonic business was born in Bellingham and is flourishing in this city’s unique economic microclimate. He designs and manufactures (more on that later) made-to-order quality wood furniture — especially dining banquettes for home kitchens — that ships in kits to be assembled by the customer.

His business, Northerly Customs, six months ago was chugging along at six to eight units per year. Then, one morning in a Bellingham coffee shop, he struck up a conversation with the person at the next table. Like Graves, she was holding down a salaried day job while running a side business — in her case, freelance marketing. Graves

offered a business proposal: Work 48 hours over the next two months marketing my furniture, any way you want, and we’ll see what happens.

Within a month, Graves was getting four to five inquiries per week, two or three of which turned into sales. He’s now on track to produce 100 kits per year.

His new marketing partner, Madi Burke, took over Northerly Customs’ Instagram account, created content and more.

“She opened an Etsy store for me, and that was key,” Graves said.

B.B. (before Burke), Graves focused on selling in the Pa-

31 MAY/JUN 2023 | BUSINESSPULSE.COM
SMALL BUSINESS FEATURE BP
PHOTO: Sattva Photo

cific Northwest. His customers could drive to Bellingham and pick up their kits, saving on shipping. Now, with Etsy and Google working for him, Northerly Customs is selling in cities around the country and beyond: Ann Arbor, San Francisco, Los Angeles, New York City, Boulder, Sioux Falls, Missoula, Portland, Toronto. (The laundromat in Australia that wanted a kit was disappointed when no local shop could be found to cut the pieces.)

His little coffee shop reach-out to Burke — “very Bellingham,” Graves said — has exceeded his goal tenfold or more, supercharging sales within a couple of weeks.

He figures if he streamlined all processes, he could raise output from his new pace of 100 kits annually to 200. Beyond that, who knows?

“I’m 47, I already have an interesting career, so I’m not taking the risks I might have 20 years ago,” Graves said. “This has been a nontraditional way to start a business: slow growth, self-funded, growing at a rate I can handle personally.”

How it started

Graves is a mechanical engineer who’s built a career working for en-

ergy companies. He currently works remotely for a clean energy business. His engineering skills were foundational to starting the custom furniture kit hobby that became Northerly Customs.

It began, as so many businesses do, with a desire for an item he couldn’t find. He and his wife wanted a built-

The city as creative incubator

Bellingham has a high cost of living (20% higher than the national average) and relatively low wages (2% lower than the national average). Most people view that as a bad thing. Simon Graves, owner and founder of Northerly Customs, who seems to have optimism baked into his bones, views it as galvanizing.

“What a great filter for breeding in-

dependent self-starters!” he enthused.

“If it’s not working for you here, build it yourself. I’ve seen so much of that.

It’s one of the ways I explain how Bellingham has so many amazing locally owned businesses.”

He points to Hardware Sales as an example, which is thriving despite consolidation throughout that industry.

“I find the community here to be

in banquette to serve as a dining nook for the kitchen in their vintage 1910 Bellingham home. He wanted quality furniture that would last, but he didn’t want, or need, to pay a carpenter to do it for him.

From the beginning, he knew he wanted to make the banquette in a way that’d be easy to replicate in the

passionate and energetic,” Graves said. “There’s a high percentage of in-depth, creative businesses that have national influence.”

He said Bellingham suits him personally, too.

“Here, you’re friends with the postman, the housepainter, the architect. Here, everywhere you go in public, you’re among people you recognize.

It’s a perfect size for that sort of synchronicity.”

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Customers Allison Julander and Ethan Schwanz watch as Simon Graves assembles a small section of their Northerly Nook. The high quality appealed to them, as did its maker and the care he took making sure the finished product would fit their exact space. “It was clear (Graves) had an engineering background,” Schwartz said. PHOTOS: Sattva Photo

future.

“Using a skill I’ve used countless times in my engineering career, I set up a 3D CAD model,” he said. “I set up the programming such that when I change one parameter, such as the length of one side, all the parts in the assembly follow those changes. Ultimately, it’s a way to create a custom kit with minimal design labor. What I have is a standard design that is easily customizable. I make kits that people can assemble themselves. It fills a niche; people have access to custom, built-in furniture that otherwise would be too expensive.”

That initial banquette became the foundation and primary product, Northerly Nook, of his business. Nooks retail for about $1,800 to $3,000.

How it works

Graves, on a computer in his attic, creates the design for a nook, bench or other product. He sends the files to Ben Rogers of Olympic CNC, a Bellingham CNC-router-based shop that does precision woodworking and more for businesses, homes and manufacturers. Graves arranges for material to be shipped to Olympic CNC on Iowa Street. Rogers creates the parts and builds and packs the crate. Graves arranges shipping to the customer, or the customer drives to Bellingham to pick it up. The kit includes a mallet the customer uses to assemble the precision-cut pieces, which knock together without fasteners.

Graves’ master vision is to have relationships with similar shops around the country. That way, parts would be manufactured near the customer. “It’s

important to me to reduce my impact on the Earth. If we had the parts cut (near the customer), it reduces freight, plus cost for the client.”

He’s already had a shop in Los Angeles do this. “If I keep doing this over time, that network will grow,” he said.

Quality

“Something I despise in the industry is disposable furniture, such as a beautiful veneer over cheap particleboard,” Graves said. “I want and need my furniture to emulate solid, built-in furniture that should last as long as the home. I use dense, solid plywood. We need our cut edges to look good right when they come off the machine, even the internal parts you can’t see. The quality is the materials and the joinery. This is user-assembled furniture that’s robust when put together, without fas-

33 MAY/JUN 2023 | BUSINESSPULSE.COM

teners and without glue.

“I feel so lucky to run a business without profit being the main goal. I want profit, but I don’t have investors pressuring me for maximum return. I don’t have ambitions to be at the top of a multimillion-dollar industry, and that frees me from profit-driven compromises in quality.”

Graves partners with local marine upholsterers to offer custom cushions, with the option of all-weather fabric that could stand up to an outdoor marine environment. “It’s not just to reduce the waste stream,” he said. “I want the customer to have sturdy, reliable objects. We don’t want this to be replaced.

“I have such excellent partners, even though we all have our own businesses.”

The future

Right now, Graves is focused on design and customer interaction, not hiring employees. “At some point, to keep up, I’m going to have to legitimately hire employees. Up to now, working with contractors, I’ve been happy to avoid employee paperwork.”

Well … he’s no longer completely without employees. He’d previously arranged for a guy to dig blackberry tangles out of his yard, and on the spur of the moment asked him to take on the search for CNC-router shops in other cities that could cut parts for Northerly Customs.

“I said, ‘Hey, can you help me with this?’”

Who knows? This being Bellingham, it might work as superbly as hiring your marketing consultant because she’s sitting next to you in a coffee shop.

34 BUSINESSPULSE.COM | MAY/JUN 2023
Learn more at becu.org/businessbanking Business Share savings required to establish membership; not all will qualify. Federally insured by NCUA. Business member was compensated for their participation.
Being a BECU Business member is like getting all the banking help you need, but with a relationship you actually want. Because we’re a not-for-profit credit union, so the biggest profits we care about are yours.
“With BECU, we feel like business partners.”
Member Nik P., Co-Owner of Phinney Ridge Painting.

New leadership for county tourism

Dylan Deane-Boyle settles into new role

Heather Lea

Bellingham Whatcom County

Tourism’s new president and CEO, Dylan Deane-Boyle, is settling into his new role, which he started on Jan.17. Dylan replaced Sandy Ward, who retired at the end of 2022.

As past executive director of the Whitefish Convention and Visitors Bureau in Whitefish, Montana, near Glacier National Park, Deane-Boyle’s focus was to raise awareness of the outstanding recreational and cultural experiences the area had to offer to drive tourism-related business during the non-peak season.

After a nationwide search using an executive recruitment firm, the board

of directors of BWCT hired DeaneBoyle to build an effective destination marketing strategy with a focus on sustainability for Bellingham and Whatcom County.

Deane-Boyle holds a bachelor’s degree in marketing from the University of Colorado, Boulder, and master’s degree in parks, tourism and recreation from the University of Montana.

We talked to Dylan Deane-Boyle to find out more about him and his plans to increase Bellingham tourism in a highly competitive post-pandemic market.

Business Pulse: What exactly is

your role as president and CEO?

Deane-Boyle: My role is to lead our nonprofit economic development organization with the purpose of improving the local economy by marketing Bellingham and Whatcom County as a premier, year-round, visitor, sports, outdoor recreation, arts, cultural and meeting destination. I also lead our efforts to support and partner with travel, tourism and hospitality businesses and nonprofits in Whatcom County.

BP: How has the role been so far since you started in January 2023?

D-B: So far, my role has been to meet people and listen. We are for-

35 MAY/JUN 2023 | BUSINESSPULSE.COM PERSONALLY SPEAKING BP
PHOTO: Sattva Photo

tunate to have an incredibly dynamic business community in Whatcom County. I learn something new every day from these conversations, which is exciting.

BP: How did Sandy Ward, whom you replaced, prepare you for this role?

D-B: In my opinion, the amount of incredible work Sandy did for tourism cannot truly be measured. Sandy worked in the Washington state tourism industry for more than 30 years and was inducted into the Washington Tourism Hall of Leadership in 2022. Sandy’s influence and positive leadership will be felt for years to come, and I have been fortunate enough to gather insight from her over the past few months. I am honored to continue the legacy of leading this organization.

BP: Can you give us any details on your future goals/plans for Bellingham tourism?

D-B: My goal is to build upon the strong foundation Sandy created and make sure we stick to our core mission and vision while also looking to the future and coming up with creative and innovative ways to address our new normal as we transition out of the pandemic.

BP: What challenges do you face?

D-B: The ultimate challenge is helping our local businesses rebound from the pandemic. We are currently in a highly competitive market for attracting visitors, as post-pandemic demand for travel remains high. Both domestic and international destinations are competing to fulfill pent-up travel demand during a time

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of economic uncertainty.

BP: You have been recognized as a Top 20 under 40 young professional. What does that mean?

D-B: In the summer of 2022, I was recognized as one of the top young business leaders in the Flathead Valley by the Daily Inter Lake for my work in the positive development of the tourism industry in Whitefish, Montana.

BP: Aside from recognition in the Daily Inter Lake, have you won any other professional awards?

D-B: While I served as the board chair of Glacier AERO (Airline Enhancement and Retention Outreach), we were awarded the 2018 Business of the Year Award by the Flathead Beacon alongside Glacier Park International Airport for our work on the expansion of commercial flight service.

BP: What boards/organizations/ committees do you currently sit on?

D-B: Through my role, I serve on a number of boards and committees in various capacities. This includes the Bellingham Regional Chamber of Commerce, Bellingham Tourism Commission, Whatcom County Lodging Tax Advisory Committee, and the Bellingham International Airport Advisory Committee, to name a few.

BP: What has been the best thing you’ve discovered about Bellingham?

D-B: Introducing my year-and-ahalf-old to nature through outdoor recreation has been fantastic. The best thing I’ve discovered about Bellingham is how genuinely warm and welcoming this town is. I really cherish that, and it’s been great to experience being new to town.

36 BUSINESSPULSE.COM | MAY/JUN 2023
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Geographically gifted: a greener footprint and high-paying jobs

Update on the Cherry Point industrial zone

In Washington state, Whatcom is the county known as “the fourth corner of the U.S.” (with the outermost counties in Maine, Florida and California making up the other three corners). And within the fourth corner is a geographically gifted swath of land that meets Pacific waters.

The Cherry Point industrial zone is the largest heavy industrial area in the state. Comprising 6,000 acres (equivalent to just under 10 square miles) and positioned on the Canadian border, this Whatcom County land — adjacent to the Lummi Nation and the city of Ferndale — has two refineries, plus a company that distributes propane to Asia.

Some of Whatcom’s highest-paying jobs

Don Goldberg, director of economic development at the Port of Bellingham and Whatcom County, is well versed in

the power and constituencies of this area.

“The Cherry Point zone makes up some of the highest-paying jobs in the region, which include BP and Phillips 66,” he said, “and these companies pay a substantial part of the county’s tax base.”

Goldberg has served as director for the past five-and-ahalf years. Prior, he was director of business development for the Port of Portland. Based on his West Coast history, he understands the geographic differences between Cherry Point and a major hub like Portland.

Current map: distinct and contained campuses

“Far from a major city, each international company on Cherry Point has built its own campus,” Goldberg pointed out.

37 MAY/JUN 2023 | BUSINESSPULSE.COM ECONOMIC DEVELOPMENT BP
PHOTO: iStockphoto.com/Khanchit Khirisutchalual

In addition to continually updating each technically complex entity, attention has also been paid to employee needs — from safety to commissary — to create a self-contained, productive work environment.

In the Cherry Point zone, BP and Phillips make up two of those large international campuses with active shipping. The third campus is Petrogas West LLC (owned by Canadian company AltaGas), which distributes propane to Japan.

Future map: opportunities for development

While highly technical, secure and detailed campuses are significant, these are also major investments for largely global companies. Being away from any city and being without greater infrastructure — freshwater access, sewer constructs, traffic planning — are some of the reasons that Cherry Point has not been developed further.

Of course, there is huge potential.

Goldberg ticked off the benefits: undeveloped land, opportunity for regenerative energy business, proximity to the border, leading to positive economic impacts for Washington state, and huge potential for international markets.

Meantime, important growth, all within a greener footprint, is already occurring at Cherry Point.

Growth: ongoing, within a greener footprint

• AltaGas: Alcoa Intalco closed its aluminum smelter in Ferndale approximately two-and-a-half years ago. A private equity firm in partnership

with Washington state, as Goldberg recapped, “desperately tried to save” the plant, which provided about 700 high-paying jobs. But several factors combined — the lowered price of aluminum, an aged factory that needed costly updates, a cancelled power contract — ultimately meant opening again would not be feasible.

AltaGas acquired the excess property (not the actual smelter facility) and is expanding the company’s footprint in green energy. Goldberg noted that AltaGas is working with Indigenous groups, and that importantly, the Lummi Nation “will have a lot to say.” Throughout the interview, the director was purposeful to include these steps in any development process: quality of life and input of local communities.

• On-land Atlantic salmon farm: Goldberg also noted that a large property of 350 acres, privately owned and now in escrow, would become an advanced, and importantly, on-land, Atlantic salmon farm. The propagation of this important food source, successful only for Atlantic and not any other kind of salmon, is possible. Goldberg emphasized that operations would not take place in water but on land.

• Coal terminal acreage on market: Whatcom County no longer allows new refineries, shipping terminals or coal-fired power plants. (In 2021, the Whatcom County Council voted unanimously to ban all.) Currently, the SSA Marine Gateway Pacific Terminal, at 1,500 acres, is on the market.

• bp renewable energy expansion: bp has announced its intention to invest in a $1.5-billion expansion for

building renewable energy facilities in its future. This major investment will bring thousands of construction jobs and hundreds of permanent positions, Goldberg said. (Read more on the following page.)

Effects are personal and lifechanging

Back in 2019, the Center for Business and Economic Research at Western Washington University published a study about the effects of job earnings in this industrial area. Then, the average job at Cherry Point paid 243% (almost 2.5 times) the average job in Whatcom County. Though the study was conducted four years ago, the ratio is still striking.

Goldberg spoke about this study, emphasizing the need for high-paying jobs to keep pace with home price increases. Now, the average Whatcom County home value is $559,708 (February 2023), according to Zillow, a real estate company that offers value estimates of homes. And net family income is one of the biggest determinants of home ownership.

Summing up the growth in Whatcom County’s most important industrial zone, Goldberg said: “We’re moving past internal arguments, and we’re moving past being highly focused on fossil fuel. We’re looking ahead to renewable energy, manufacturing, international markets and opportunities.”

With lots of beckoning green lights, there is also a greener footprint ahead.

38 BUSINESSPULSE.COM | MAY/JUN 2023

“Lowering greenhouse gas (GHG) emissions from our own production, as well as in the fuels we sell, will help Cherry Point deliver on bp’s goals of becoming net zero by 2050 or sooner,” said Eric Zimpfer, VP refining at bp Cherry Point.

The two projects at Cherry Point are part of bp’s multibillion-dollar commitment to construct similar facilities at five sites around the world, including Australia, Spain, Germany and the Netherlands. The projects are expected to produce significant amounts of low-carbon energy while creating thousands of construction jobs, as well as permanent jobs upon completion. While exact numbers of jobs are not yet available, significant contractor support will be needed to construct the projects. As reference, Cherry Point’s on-site contrac-

39 MAY/JUN 2023 | BUSINESSPULSE.COM
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Selling a business? Planning ahead is key

Trust me, you’ll regret putting things off

Selling a business requires careful consideration of many different factors. Whether you are looking to retire or move on to a new opportunity, selling your business can be a significant financial and emotional decision.

In this article, we discuss some of the key considerations.

1. Timing

Timing is everything, as they say. You want to ensure that you are selling your business when it is performing at its best. Timing your sale during a period of growth and success can help maximize the value of your business

and increase the number of potential buyers. It is also important to consider external factors such as market conditions, economic trends and competition when timing your sale.

2.

Valuation

Determining the value of your business is a crucial step in the sales process. Valuation is typically based on a

41 MAY/JUN 2023 | BUSINESSPULSE.COM FINANCE BP
PHOTO: iStockphoto.com/DNY59
Advocacy. Leadership. Vibrant Economy. Networking. Committed to Business Success. Research. Education. Non-partisan. Community Prosperity. Join Us. Facilitating Business Success and Community Prosperity. The Whatcom Business Alliance is the ears, eyes, and voice for the Whatcom County business community. We believe success is the single largest driver of community prosperity, which is why we focus our efforts on facilitating that success through advocacy, research and education and job opportunities. We bring business leaders together to encourage, acknowledge and share the best and most ethical business practices. Our members improve their respective businesses and work closely with community leaders to promote public policy that supports a healthy business climate and a vibrant economy. To learn more and become a member, visit whatcombusinessalliance.com/joinus or call Barbara Chase at 360.543.5637. or call Randi Axelsson at 360.303.3885.

variety of factors, including revenue, cash flow, assets, liabilities and growth potential. Working with a professional can help you accurately assess the value of your business. This will help ensure that you receive fair market value and avoid leaving money on the table.

3. Documentation

Proper documentation is essential when selling your business. This includes financial statements, tax returns, contracts, leases, licenses and any other legal documents related to your business. Buyers will want to review this documentation thoroughly before making an offer, so it is essential to have all the necessary paperwork organized and readily available. This is often a time-consuming component of selling a business, and sellers should work on identifying and obtaining the required documents and contracts well in advance of a potential sale.

4. Confidentiality

Maintaining confidentiality throughout the sales process is critical to ensure that your business continues to operate smoothly and that your employees, customers and suppliers are not adversely affected. You should consider working with a business broker or intermediary who can help you maintain confidentiality while marketing your business to potential buyers.

5. Marketing

Marketing your business is essential to attract potential buyers. You can use a variety of marketing channels, including online listings, industry publications and networking events. It is

important to present your business in the best possible light and highlight its unique selling points to potential buyers.

6. Financing

Consider carefully how your potential buyer will pay for the business. A buyer who requires you to finance a significant part of the purchase is significantly less attractive than a buyer who can obtain bank financing or pay cash. If you finance part of the sale and the buyer experiences issues with the business after closing, the buyer may renege on payment obligations to you, resulting in potentially costly and lengthy litigation at a time when you would rather be enjoying the fruits of your sale.

7. Tax implications

Selling a business can have significant tax implications. It’s important to work with a tax professional to help you understand the tax consequences of selling your business and plan accordingly. Depending on the structure of your business and how you sell it, you may be subject to ordinary income, capital gains, state and other taxes. Good planning can help minimize the tax burden.

8. Transition planning

Transition planning is an often-overlooked aspect of selling a business that can make or break the ultimate success of a deal. You need to have a plan in place to ensure a smooth transition of ownership and operations. This includes training the new owner; transferring licenses, software and contracts; and ensuring that all employees are properly informed and prepared for the transition.

9. Selling to employees

Selling or transferring ownership to employees can be a great way to ensure that the buyer possesses the knowledge and experience needed to run the business. Licensing requirements in some professional fields (medical, dental and legal, for example) might prevent employees from owning those businesses, but in many fields, this can be a great option, provided that there are employees who are willing and able to take the reins.

Selling a business requires careful consideration of many different factors. By working with experienced professionals and carefully planning each step of the sales process, you can ensure that you receive a fair price for your business and that the transition to new ownership is as smooth as possible.

Patrick Byrnes advises clients on business, real estate and litigation matters.  He joined Faber Fairchild McCurdy LLP (formerly Adelstein, Sharpe & Serka) in 2018 after practicing at two Seattle law firms.  He is a graduate of the University of California, Berkeley, School of Law.

43 MAY/JUN 2023 | BUSINESSPULSE.COM
Depending on the structure of your business and how you sell it, you may be subject to ordinary income, capital gains, state and other taxes. Good planning can help minimize the tax burden.

July will bring mass pay decrease in Washington state

The countdown to the collection of the new WA Cares payroll tax is on. There are just a handful days left until W-2 workers will see their paychecks decrease for a benefit they are told by the state to

have peace of mind about, even though they shouldn’t.

Beginning in July, W-2 workers will have 58 cents of every $100 they earn taken from their paychecks.

Many workers will not qualify for a WA Cares benefit, even if they pay the tax for a number of years and someday need assistance with the activities

of daily life. At $36,500, the lifetime benefit attached to the WA Cares program is also inadequate to meet most people’s actual long-term care needs. Read more about the program being marketed as a sure thing — that isn’t — on the Washington Policy Center website in my story “New state-run program will not fix long-term care

44 BUSINESSPULSE.COM | MAY/JUN 2023 BP HEALTH CARE POLICY OP-ED
PHOTO: iStockphoto.com/Nuthawut Somsuk

crisis, nor should it offer peace of mind to workers forced to fund it.”

Minority-party lawmakers tried to stop the law and payroll tax, to no avail. And every lawmaker now knows that this tax promises more than it will deliver to individuals. The additional money it brings them, however, is apparently too attractive to pass up. Or pride is getting in the way.

Meanwhile, aggressive marketing from the state on the radio and Pandora stations has been busy painting a picture of a mild tax now that will help you with services someday. The marketing doesn’t tell Washingtonians the reasons workers might not qualify for the benefit associated with the program, nor does it discuss the state

safety net that already exists to provide long-term care services to people in need.

With WA Cares, the Legislature created a safety net for people in need — and for people not in need. It’s bad policy. In some cases, a low-income worker’s money will go to a person with greater resources for long-term care services. And WA Cares won’t solve the care crisis headed our way.

The state shouldn’t be dictating which life Washingtonians need to save for and how — while not even guaranteeing that Washington workers who pay into WA Cares will reap a benefit. But it is. The tax is coming to a paycheck near you this summer.

Elizabeth Hovde is Washington Policy Center’s director of Center for Health Care and Center for Worker Rights. She grew up in Seattle's Ballard neighborhood and graduated with a Bachelor of Arts degree in journalism and political science from Western Washington University. After graduation, Elizabeth became the communications director for the Washington Family Council. She was recruited away by The Columbian newspaper in Southwest Washington and spent the next decade as an editorial board member and columnist, winning several Society of Professional Journalists awards. She enjoyed another 10 years as a political columnist for The Oregonian. Elizabeth also has taught journalism, as an adjunct professor at Washington State University Vancouver.

45 MAY/JUN 2023 | BUSINESSPULSE.COM
Your Business Retirement Plan Solution Bryant J. Engebretson, CFP®, CLU®, AIF®, AEP®,ChFC®, CASL® Kyle B. Jackson, CFP®, CLU®, AIF®, ChFC® www.tradewinds-cm.com 2211 Rimland Drive, Suite 401 Bellingham, WA 98226 360.715.9000 Your Business Retirement Plan Solution Bryant J. Engebretson, CFP®, CLU®, AIF®, AEP®, ChFC®, CASL® Kyle B. Jackson, CFP®, CLU®, AIF®, ChFC® www.tradewinds-cm.com 2211 Rimland Drive, Suite 401 Bellingham, WA 98226 360.715.9000

WINNERS & HIGHLIGHTS

DAIRY DISTRIBUTING

BUSINESS PERSON OF THE YEAR

MARV TJOELKER

LARSON GROSS CPAS

46 BUSINESSPULSE.COM | MAY/JUN 2023 36TH ANNUAL
BOB BRAY Pictured: Bob’s sons, Tyler and Tory, and grandson, Logan. PRESENTED IN MEMORIAM LIFETIME ACHIEVEMENT

JON B STRONG

EMPLOYEE OF THE YEAR

CLAIRE ADAMS

BELLINGHAM COLD STORAGE

PRESENTED BY DOUG THOMAS, BCS

SMALL BUSINESS OF THE YEAR

VANDER GIESSEN NURSERY

PRESENTED BY ANDY RIDDELL, PEOPLES BANK

START-UP OF THE YEAR

ARMORY PICKLEBALL

PRESENTED BY KYLE JACKSON, TRADEWINDS CAPITAL MANAGEMENT AND BARBARA CHASE, WBA

PUBLIC SERVICE AWARD

BILL ELFO

WHATCOM COUNTY SHERIFF

PRESENTED BY PAM BRADY, bp Cherry Point

47 MAY/JUN 2023 | BUSINESSPULSE.COM

Washington’s gas prices have increased since CO2 tax — perhaps as much as a half dollar per gallon

Depending on the comparison, Washington’s gas prices have increased between 35 and 52 cents more than neighboring states since the state launched a tax on carbon dioxide emissions at the beginning of the year. Despite the clear data, state politicians and agency staff refuse to acknowledge the cost of the increases and aren’t helping residents deal with

the impact of the costs.

This increase is in line with the results of the $48.50 per metric ton of CO2 price set at the state’s auction of emission allowances at the end of February. For gasoline with a 10% ethanol mix, $48.50 per metric ton of CO2 amounts to 39 cents per gallon.

As we noted previously, some fuel suppliers are charging more than that after they undercharged in January and February, before the actual price of CO2 allowances was set at auction.

There are several ways to calculate

the change in prices since January. Perhaps the most straightforward is to use GasBuddy to compare the average prices of regular gas in Washington and Oregon. As the graph shows, prices in the two states were similar last year. In January, the prices suddenly began to diverge. The difference went from about 3 cents per gallon at the end of the year to about 49 cents per gallon on April 17 — an increase of 46 cents per gallon. Comparing Washington to the average of Oregon and Idaho yields a similar result: an

50 BUSINESSPULSE.COM | MAY/JUN 2023 BP POLICY
OP-ED
PHOTO: iStockphoto.com/Jun

increase of about 52 cents per gallon in the difference since the beginning of the year.

We can compare that to AAA data. Since the beginning of the year, the difference between Washington’s gas prices and the average of Oregon and Idaho increased by about 44 cents per

gallon.

We also can use the AAA data to compare Washington to other nearby states, including California, Idaho, Nevada and Oregon. Using that comparison, the gap between Washington’s gas prices and the West Coast has increased by about 35 cents per gallon

since the beginning of the year.

Coming up with a perfect estimate of the impact of the tax on CO2 emissions is difficult because several factors are impacting gas prices and prices in other states. Previously, we used the Energy Information Administration’s data to estimate the difference between Washington and other West Coast states minus California. That dataset, however, has been heavily impacted by prices in Arizona, which have skyrocketed since the beginning of the year, jumping by nearly $1.20 per gallon. No other state has seen anything close to that increase. It is unclear what is causing that increase, but the EIA dataset does not include gas prices for Arizona, making it impossible to adjust for this outlying trend.

51 MAY/JUN 2023 | BUSINESSPULSE.COM

Using AAA price data for the states in the EIA comparison — Alaska, California, Hawaii, Nevada and Oregon — minus Arizona yields a difference of 46 cents per gallon in Washington since the beginning of the year. Within the range of the others.

These real-world data are sharply at odds with the claims of staff at the Washington State Department of Ecology, who continue to claim on the agency’s website that “the potential impact on gas prices is expected to remain low — about 1% to 3% in 2023,” which would amount to between 4 and 12 cents per gallon. Apparently responding to our previous analysis, the same site also replies with a direct “no” to the question, “Will the new climate policies result in a 46-cent-per-gallon increase in the gas tax starting in 2023?”

The real-world data show, in fact, that is almost exactly where they are now.

Our projection of 46 cents per gallon was based on Ecology’s own analysis showing the cost of CO2 allowances would be $58.31 per metric ton of CO2 and using California’s methodology of applying that cost to the price of gasoline. Although the actual price of CO2 allowances in the first auction is below Ecology’s estimates, some fuel suppliers are now adding about that amount to compensate for only adding the equivalent of about $31 per metric ton of CO2 in January and February.

It is strange that the Department of Ecology continues to deny the evidence that includes real-world prices, actual invoices from fuel suppliers, and agreement by other states (including California and Oregon) that these pol-

icies increase gas prices. It is even more ridiculous when the express purpose of CO2 taxes is to increase gas prices and provide an incentive to use less gasoline and other CO2-emitting fuels.

And yet, the governor and the staff at the Department of Ecology still blame everyone but themselves for rising gas prices.

This denial doesn’t stop families and businesses from dealing with the impacts of rising gas and energy prices. It does mean families can’t look to state government for help in addressing those prices.

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.

52 BUSINESSPULSE.COM | MAY/JUN 2023

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