Business Pulse magazine May | June 2021 by Business Pulse magazine

BUSINESS PULSE

MAY/JUNE 2021

THE PULSE OF WHATCOM COUNTY

Northwest Marine Industries riding a wave Historic local company sees surge of orders despite rough waters

PLUS:

Greg Little, vice president of operations and one of four local owners

Local recreation industry sees boom driving continued growth bp Cherry Point and Whatcom County will be part of the coming global push toward net zero

Celebrating maritime culture and heritage with waterfront’s SeaFeast and Dockside Market Business Pulse magazine 3111 Newmarket St., Ste. 106 Bellingham, WA 98226

MAY/JUNEL 2021 VOL. 46 NO. 3

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PULSE B

We Can’t Give You a Hug So How About a Mug

Your local business news brought to you by WHATCOM BUSINESS ALLIANCE

VOL. 46 | NO. 3 PUBLISHER Whatcom Business Alliance EDITOR Matthew Anderson CONTRIBUTING Cheryl Stritzel McCarthy WRITERS Mike McKenzie Dustin McKissen Tony Moceri Kyra Planetz GUEST COLUMNISTS Gerald Baron Sherrie Daymon Tom Doll Paul Guppy Brittany Mallidore Orion Mark Patti Rowlson ART DIRECTOR Whitney Pearce PHOTOGRAPHY Tiffany Brooks EXECUTIVE DIRECTOR Barbara Chase Cover Photo by Tiffany Brooks

Stop by Our New Digs, 1415 Iowa St. So We Can Give You a Mug Birchequipment.com • Facebook • Instagram

WBA BOARD OF DIRECTORS: BOARD CHAIR: John Huntley, President/CEO, Mills Electric Inc. EXECUTIVE COMMITTEE: Pam Brady, Director NW Gov’t & Public Affairs, BP Cherry Point; John Huntley, President/CEO, Mills Electric Inc.; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC; Josh Wright, VP/Broker, Bell-Anderson Insurance BOARD OF DIRECTORS: Tyler Byrd, CEO, Red Rokk Interactive; Jane Carten, President, Saturna Capital; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Managing Principal, Tradewinds Capital; Jon Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein Sharpe & Serka; Sandy Keathley, Former Owner, K & K Industries; Tony Larson, President, Barlean’s; Laura McKinney, NW Gov’t Affairs & Public Relations, Alcoa-Intalco Works; Nicole Newton, Semiahmoo Resort/Golf/Spa; Becky Raney, Former Owner, Print & Copy Factory; Sarah Rothenbuhler, Owner/CEO, Birch Equipment; Patti Rowlson, Founder/ Marketing Director, Bellingham PR & Communications; Galen Smith, Operations Manager/Owner, Coldstream Farms; Billy VanZanten, CEO, Western Refinery Services For editorial comments and suggestions, write info@whatcombusinessalliance.com. The magazine is published bimonthly at 3111 Newmarket St., Ste. 106, Bellingham WA 98226. (360) 746.0418. Yearly subscription rate is $25 (US). For digital subscription, visit businesspulse.com. Entire contents copyrighted ©2021 Business Pulse. All rights reserved. POSTMASTER: Send address changes to Business Pulse, 3111 Newmarket St. Ste. 106, Bellingham WA 98226

MAY/JUN 2021 | BUSINESSPULSE.COM

IN THIS ISSUE 11

LOCAL BOAT BUILDER RIDING WAVE OF SUCCESS Hidden away in a warehouse on Fairhaven’s working waterfront is Northwest Marine Industries — the longest continually operating fiberglass boat manufacturing company in the country.

17 RECREATION INDUSTRY SEES PANDEMIC BOOM

Tired of being indoors, people have taken to the outdoors, creating a boom in the recreation industry.

21 bp AIMING TO BE NET-ZERO BY 2050

What does that mean, and what does it mean for Whatcom County?

25 ONE FISH AT A TIME

The local fishing industry lives on as events like SeaFeast and the Dockside Market continue to celebrate the maritime culture and heritage.

28 LOCAL ROASTERS & SHOPS KEEP COFFEE LOVERS HAPPY

Look for additional content online at businesspulse.com

Bellingham is among the top 10 cities in the United States for specialty coffee with nationally recognized roasters and over 100 shops.

COLUMNS 34 Personally Speaking:

43 What will it take to save

38 Using white label

46 How PPP and ERTC may

Cascade Radio Group’s new GM, Heidi Persson content to give your business an advantage

41 Despite record-level

revenue, the legislature is likely to impose significant new taxes

BUSINESSPULSE.COM | MAY/JUN 2021

farming in Whatcom County?

benefit your business

48 Build a resilient business using core values

56 Thinking of buying or selling a business?

The place you call home, is our home too. Whatcom County is more than where we work. It’s where we live. This means we’re truly invested in our clients — delivering simple, straightforward solutions to help you make the most of your money. You deserve common-sense banking, backed by one of the strongest Banks in America. When you’re ready, we are here to earn your business. Find your nearest office at wafdbank.com

BP UP FRONT

Talented leaders and dynamic businesses keep Whatcom County fundamentals strong Barbara Chase Had enough negativity? Good. Us too — and we are proud to report that this edition is chock full of good news. In “Northwest Marine Industries riding a wave”, Cheryl Stritzel McCarthy profiles the explosive growth at a historic Fairhaven boatbuilding company. The Bellingham coffee scene also gets a moment in the spotlight. It should come as no surprise, but Bellingham is ranked in the Top 10 cities nationally for specialty coffee! The good news doesn’t end there. Whatcom County’s outdoor recreation industry has experienced a pandemic-fueled boom, with bikes and campers especially in high demand. This issue’s “Personally Speaking” feature focuses on Heidi Persson, Cascade Radio Group’s new general manager. Heidi has big plans for local radio in Whatcom County, and shares some of those plans with our readers. This issue is special for another reason. Tony Larson — long-time publisher and editor of Business Pulse and the founder of the Whatcom Business Alliance — accepted a position late last year to serve as president of health

BUSINESSPULSE.COM | MAY/JUN 2021

food and supplement manufacturer Barlean’s. Tony has been a visionary in Whatcom County for decades and will continue to serve as a prominent voice for this region’s business community. He will also continue to serve on the WBA board, where his insight and experience will prove invaluable as Whatcom County charts a path back to prosperity in the coming months and years.

state is looking to increase a wide variety of taxes. In his piece “Higher taxes incoming” Paul Guppy, vice president of research at the Washington Policy Center, notes that despite increased revenue of at least $3.2B (“B” as in “Billion”) and $7.2B in direct federal aid, the legislature is proposing a capital gains income tax, two energy taxes, a capand-trade system to limit energy use,

Our economy is poised to build on the success of companies like the dynamic businesses profiled in these pages. We miss Tony’s presence in the Business Pulse office — but we know he is still going to be a driving force and a voice for Whatcom County’s private sector. We simply cannot thank him enough for his contribution. Business Pulse and the Whatcom Business Alliance would not exist without his vision and hard work. The reason Tony founded both Business Pulse and the WBA was to give local business a voice — and that mission is more important now than ever. Despite predictions of a record-setting post-pandemic economic rebound, the

a 9.8-cent gas tax, new vehicle fees, a new payroll tax for health care entitlements, a possible Seattle-style jobs tax applied to workers statewide and an expansion of tolls for public roads. The never-ending appetite for taxation in Olympia will limit (and could cripple) Whatcom County’s continued recovery. Over the past year, policymakers and business leaders have relentlessly focused on mitigating the health impact of the pandemic. With more Whatcom County residents getting vaccinated every day, the time has come to focus on policies that encour-

age the economic opportunity and prosperity Washington families need. Thankfully, we know Whatcom County businesses are ready to answer the call. This issue is larger than previous issues by 16 pages. Because of the generous support of local advertisers, we have been able to expand this issue and bring our community more business and economic news than ever before. Our local leaders answered the call, and we cannot be thankful enough for their commitment to this publication and our ongoing effort to advocate on behalf of Whatcom County business. In the coming months we will need their voice more than ever. Throughout the last year, Business Pulse has continually said that despite the challenges associated with the pandemic, our fundamentals remain strong. Whatcom County is a beautiful place to live and work. We are home to a plethora of talented entrepreneurs and business leaders. Our economy is poised to build on the success of companies like the dynamic businesses profiled in these pages. As we continue to work together, we can build a local economy that delivers prosperity to every person and family in Whatcom County. On behalf of the team here at Business Pulse, enjoy the start of summer 2021. Visit your favorite local business and enjoy a meal at one of our county’s many amazing eating establishments. You have earned it.

Meet the WBA Board We’re proud of our very active and talented WBA board members and want you to get to know them too!

NICOLE NEWTON

DOUG THOMAS

General Manager Semiahmoo Resort, Golf, & Spa

President & CEO Bellingham Cold Storage

Why do you believe Whatcom County is a great place to live and work?

If you could change one law to help local business, what would it be?

Nicole: The community and the activities are what attracted me to the area. I lived here about 20 years ago and moved back three and a half years ago. I love how the area has grown, with more activities and attractions.

Nicole: I think a solution for homelessness that values individuals and recognizes that these are human beings who are suffering and need our assistance. They don’t need to be shamed or belittled; they need our help.

Doug: Whatcom County is in a wonderful part of the world, from a natural beauty standpoint. We are on the doorstep of the San Juan Islands, and we have incredible agricultural farming communities; world class ski, boarding and hiking opportunities; and historically safe, clean and wholesome school systems and communities.

Doug: Follow the laws that are already on the books and enforce them. No new laws or changes are needed.

What’s your vision for the future of Whatcom County?

Nicole: Continue to be a great place to operate a business and to live. Our team loves the lifestyle, sense of community and support. Doug: Recently, a few of those features have been threatened. I would like to see us return to a community in which we all are hopeful for each other’s success rather than devoting unreasonable amounts of time and resources to tearing others down. Work hard, follow the rules/laws, prosper and share that prosperity with a healthy community. That model has worked well for many communities over the years, and we need to get back to that or we are in danger of a downward spiral and a progressive tattering of the fabric of our wonderful part of the world.

What’s one fun fact about you outside of your professional life?

Nicole: I love riding my motorcycle on the back roads of Whatcom County. Doug: Go Cougs!

Why did you join the WBA board?

Nicole: I wanted to become more involved with the businesses and the community. It has been challenging, as COVID-19 hit right when I started and I have been unable, therefore, to form the relationships I was looking for. However, I know we will get there, and it is a great group of individuals. Doug: I joined the WBA to network with some incredible business and community leaders. Together, we can advocate for and protect the notion that a successful, responsible and generous business environment can and does lead to community prosperity. Together, our voice is much more impactful than when we stand alone.

MAY/JUN 2021 | BUSINESSPULSE.COM

BP NEWSMAKERS

Andrew Jewell

Peter Ruffatto

Andrew Jewell again recognized in top 1% by Farmers Insurance Andrew Jewell of Lynden has been named for the seventh time to the Farmers Insurance President’s Council, which recognizes the top 1% of the company’s agents and district managers during a year filled with COVID-19 challenges. After the COVID-19 pandemic led the state government to greatly restrict business operations this past spring, the Andrew Jewell Insurance Agency launched a drive-through option to accommodate clients who wanted to talk to an agency representative without needing to come into the office. “We can take payments, give evidence of insurance to clients, answer questions and explain coverages and billing,” Jewell said. “We also do virtual meetings if a client wants. The office has remained open most of the year with proper sanitizing procedures and protections.” Members of President’s Council are leaders in their communities, mentors to other agents and district managers, and exemplary business owners, according to Farmers Insurance. They were selected on the basis of multiple criteria, including providing best-inclass service, business performance and commitment to furthering the goals and ideals of the Farmers organization. Jewell was one of just two people in the state of Washington selected for the award.

BUSINESSPULSE.COM | MAY/JUN 2021

Christine Jenkins

Ryan A. Martin

“Credit for this award goes to our staff, which provides amazing customer service to our clients,” Jewell said. The Andrew Jewell Insurance Agency, founded in 2005, offers auto, home, business, life and health insurance policies. For more information, call 360-354-5565 or visit https:// www.farmersagent.com/ajewell.

Peter Ruffatto joins Chmelik Sitkin & Davis P.S. as a principal Peter Ruffatto is joining the Bellingham law firm Chmelik Sitkin & Davis P.S. as a principal. Peter is a well-known municipal lawyer who has worked as the Bellingham city attorney since July 2012. Peter joined the City Attorney’s Office in 2003, where he worked in the areas of labor and employment, public works and contracting, municipal finance, fire/ emergency medical service and public records. As the city attorney, Peter served as the legal adviser to the City Council, the Mayor’s Office, and all city departments. He also held a variety of management responsibilities. Prior to joining the Bellingham City Attorney’s Office, Peter worked in the civil division of the King County Prosecutor’s Office and in private practice at the Reed McClure law firm in Seattle. Peter will join the firm’s port district and municipal law practice groups, where he will focus on working with the firm’s municipal and port district clients located throughout the state.

Ruffatto has extensive experience in the areas of municipal law, labor and employment, litigation, risk management, intergovernmental transactions, legislation, criminal justice programs and human resources. After a personally rewarding career with the city, he looks forward to applying his problem-solving approach to legal matters in service of the firm’s clients. Chmelik Sitkin & Davis P.S. is a Bellingham-based law firm that provides legal advice to municipal governments and business clients throughout Washington state. Visit https:// chmelik.com/.

Christine Jenkins joins Hotel Bellwether as director of marketing and sales Christine Jenkins brings more than 20 years’ experience in the tourism and hospitality industry to Hotel Bellwether. She began her career at the Bellingham Whatcom County Tourism Office as the marketing and public relations manager and served on the City of Bellingham Tourism Commission, the Bellingham Whatcom County Tourism Board and the Lodging Tax Allocation Committee. Jenkins then served for eight years at the Four Points by Sheraton hotel and conference center in Bellingham as director of sales and marketing. During this time, she was awarded Director of Sales of the Year and nominated by Whatcom Women in Business as Professional Woman of the Year. Just prior to joining Hotel Bellwether, Jenkins was the executive assistant to the CEO at Barlean’s, a health supplement manufacturer in Ferndale. “We are excited to have Christine join the Hotel Bellwether team with her experience, expertise and strong relationships in the community,” said Jim Haupt, Hotel Bellwether general manager. “We look forward to her

leadership and collaborations in expanding marketing and business opportunities at the hotel, developing key community partnerships and growing the group segment from the key markets of Seattle and Pacific Northwest.” For more information about booking a meeting or event at Hotel Bellwether, please contact Christine Jenkins at 360-392-3183 or christine@ hotelbellwether.com.

soil •• water water •• air air compliance solutions solutions www.whatcom-es.com 228 E. Champion St. #101 | Bellingham, WA 98225 | 360.752.9571

Bellingham commercial property vacancies low despite COVID-19 Demand for Bellingham’s commercial property has remained solid despite the COVID-19 pandemic, according to the first public report on the subject since 2015. Retail vacancy in Bellingham has slightly increased since 2015, according to Ryan A. Martin, co-owner and broker at Pacific Continental Realty in Bellingham. He compiled Bellingham commercial real estate data for a report on market conditions as of March 31, the end of the first quarter. Bellingham’s retail vacancy rate is only 3.7% out of 10.2 million square feet of retail space despite government shutdowns and other effects of the pandemic. A surprising finding in the Pacific Continental Realty report came in office space, which has a current vacancy rate of only 4.4% out of 4.4 million square feet. That’s down from the 4.8% vacancy rate in 2015 despite a national trend of more people working from home rather than from an office during the pandemic. Martin said Pacific Continental Realty plans to issue quarterly reports on Bellingham’s commercial real estate to help keep businesses and government officials informed about current conditions. Visit https://www.pacificcontinentalrealty.com.

MAY/JUN 2021 | BUSINESSPULSE.COM

BUSINESSPULSE.COM | MAY/JUN 2021

BUSINESS FEATURE BP

PHOTO: Tiffany Brooks

NORTHWEST MARINE INDUSTRIES

Orders surge for this historic local company Cheryl Stritzel McCarthy

MAY/JUN 2021 | BUSINESSPULSE.COM

Hidden away in a warehouse on Fairhaven’s working waterfront is the longest continually operating fiberglass boat manufacturing company in the country. Swing open the door to Northwest Marine Industries’ 32,000-square-foot warehouse and step into a place where boats are born — or, if not born exactly, created step-bystep out of stuff like gel coat and sheets of fiberglass roving, a stiff, fabric-like material. It’s nothing like a car assembly line. What this company of 40 employees does is more like hand building with power equipment. The entire process — to see a finished, fitted-out, 28-foot Sea Sport Commander arise from the shop floor over 10 weeks — seems nothing short of miraculous. NMI makes and sells 50 boats a year, ranging from 22 to 32 feet long. All are “pilothouse” boats, meaning they have a fully sealed and waterproof cabin containing the main steering position. NMI’s annual revenue is $5 million. The company builds five lines: Sea Sport, C-Dory, Osprey, TomCat and Skagit Orca. The Sea Sport, with six different versions, is respon-

sible for 40% of revenue, with the C-Dory accounting for 30% and the Osprey 20%. Every boat is customizable, said Greg Little, vice president of operations and one of the four local owners. “Every boat we build has its own story,” he said. “Fulfilling customers’ dreams is very rewarding. You want a purple boat? You can get a purple boat!” He sounds as if he’s joking, but he’s not. Customers can choose a boat’s exterior colors — having them match their company colors, for instance. The interior cabin can be reconfigured and done in custom colors, too. Boats are booming With the pandemic pumping up boat orders, NMI’s backlog is now 14 to 16 months long. The company would like to increase production but is struggling to find more skilled employees, Little said. He’s echoing a theme heard throughout industry, that skilled labor is in short supply. “We have a good core group of employees that have been here a long time, but to ramp up is difficult,” he said. “I talk to dealers… there’s a need for more mechanics, more

Harris g Co., at 10th Street and View of Wright Manufacturin et in looking west down 10th Stre Avenue, in the 1950s/60s, her. ht Hatc Wrig sa Melis of tesy cour Fairhaven. Photo

1977

1955

Frank Wright opens Wright Manufacturing Co. on Harris Avenue in Fairhaven. With his sons David, Bud, Dennis and Ronald, he begins fabricating open-bow fiberglass boats for fishermen, 8 to 12 feet long, named Sportsman.

Mid-1960s

Wright Manufacturing moves to McKenzie Avenue in Fairhaven.

Inventory of Wrigh t Manufacturing Co., 1950s, Fairha Photo courtesy of ven. Melissa Wright Hat cher.

1973

The oil crisis pushes up fuel prices, the economy stalls, and fewer people buy boats. Wright adds fiberglass bathroom fixtures to its product line. About this time the company name changes to Wright Brothers.

1975

David’s wife Sharon joins Wright Brothers full time.

Wright Brothers relocates to a larger facility on the Guide Meridian. Ronald and David take full ownership. More Sportsman models are introduced in the late ’70s and early ’80s. Ronald is quoted, “A lot more love goes into building boats than building tubs.”

1979

David’s son, David A. Wright, graduates high school and joins Wright Brothers full time.

1986

Wright Brothers introduces the 22-foot Sea Sport.

BUSINESSPULSE.COM | MAY/JUN 2021

PHOTO: istockphoto.com/brainmaster

riggers, just more people.” A rigger installs equipment and accessories, including electronics, on a boat. The company’s current warehouse could accommodate 15 more employees, Little said. “We would like to put out at least 75 boats per year. But there’s no union hall where you go to get boatbuilders.” The pandemic has eviscerated air travel, driving people toward RVs and boats. The National Marine Manufacturers Association reports that powerboat sales increased 12% from 2019 to 2020, with sales levels not seen since before the Great Recession. Nationally, another increase is expected for 2021. “People need to get out of the house,” Little said. “It’s worked out well for the boating industry because there’s an awful lot of water out there.” NMI’s boats are primarily sold to folks interested in fishing, diving or just cruising. They’re designed to navigate rough water. Boats on the dance floor Though its name and location have changed several times over the decades, NMI itself was born in the Pacific Northwest, in a former dance hall on the second story of the Schering Building at 10th Street and Harris Avenue in Fairhaven. A Bellingham man named Frank Wright launched his Wright Manufacturing Co. boatbuilding

2000 1987

A 27-foot Sea Sport model called the Pilot, the first with forward-facing, tilted-down windows, is introduced. All Sea Sport boats afterward feature these now-iconic windows. The 27-foot Sea Sport Navigator (1988) and 24-foot Sea Sport Explorer (1994) follow. The dealer network grows.

1998

Sea Sport expands with the creation of the 32-foot Pacific Catamaran.

operation there in 1955, having heard about a wonderful new material called fiberglass. Up on the second floor, he and sons David, Bud, Dennis and Ronald began making open-bow Sportsman fiberglass boats, 8 to 12 feet long, for fishermen. To get the nearly completed boats down from the second-story dance floor, one of the windows was enlarged and an iron beam with a pulley installed above it. The beam-and-pulley system was used to lower boats to the 10th Street sidewalk below. Then they were carried around the corner to 913 Harris Ave. and through the double front doors for finishing on the first floor. The pulley also was used to lift building materials up to the second floor, similar to how a hoist lifts bales of hay into a barn’s upper hayloft for storage. Wright Manufacturing built thousands of car-top boats, contracting with Sears, Roebuck & Co. (the Amazon of its day) to sell them under the Elgin name. The car-top moniker meant these small boats could be lashed atop a customer’s car for transport. “We contracted to build as many as we could for Sears, and that worked well for about three years,” brothers David and Ronald Wright reminisced in a 2008 interview with local historian and author Todd Warger, who wrote a story on NMI in the Dec. 2020 issue of the Journal of the Whatcom County Historical Society. In the late 1950s, since Wright Manufacturing was getting yearly contracts, the company built up inventory to 50 boats so the spring rush wouldn’t find them short. “That’s when we found out Sears wasn’t going to buy any more boats,” the brothers are quoted. Unbeknownst to the Wrights, Sears had gotten a Seattle

Owners Ronald, David and David’s son David A. Wright sell Wright Brothers to a buyer who continues to produce Sea Sport boats at the Guide Meridian location, under the name Sea Sport.

EARLY TO LATE 2000s

The company introduces the 30-foot Voyager (2002), 30foot Offshore (2003), and first Osprey (2005). The company acquires C-Dory assets and produces its first C-Dory in 2009. That year, the company becomes Triton Marine and relocates to LaBounty Road in Ferndale.

2011 and 2012

The economy contracts, the boating industry falters, and the owner auctions off Sea Sport tooling equipment, including boat molds. Ronald, son Mark, and son-in-law Ryan Binning buy the Sea Sport tooling at auction, planning to lease it back to the owner so production can continue. The owner decides to discontinue production. Holding the boat molds, Ronald, Mark and Ryan assume control of Triton Marine and continue production of Sea Sport, C-Dory, Osprey and Skagit Orca boats.

MAY/JUN 2021 | BUSINESSPULSE.COM

supplier to copy the boats. Their father, Frank, went to Ira Yeager, founder of Yeager’s Sporting Goods, who bought every boat, and Wright Manufacturing began its pivot to dealerships, which NMI continues to this day. (Today, NMI has 18 dealers — eight on the West Coast and 10 in Florida and elsewhere.) Growth was slow in the beginning. People weren’t familiar with fiberglass; in Warger’s story, David and Ronald remember their father rapping the side of a boat with a rubber hammer to show how tough it was. Since its founding 66 years ago, NMI has sited operations at various times on Harris Avenue, McKenzie Avenue, Guide Meridian and, in Ferndale, LaBounty Road. Ownership changed over the years, too. Ronald Wright, with son Mark Wright and son-in-law Ryan Binning, regained control of the company in 2012. Ronald retired in 2020, and today NMI has four owners: Ryan Binning, Mark Wright, Greg Little and Michael Millison, who also is the production manager. Little, born in Bellingham, had worked as a rigger on boats for years before joining the company in early 2014, when it was in Ferndale. He remembers the catastrophic fire at the Ferndale facility on Sept. 11, 2014. “The whole building was a total loss,” he said. “We lost C-dory molds and our 28-foot Sea Sport Commander mold. There were two boats inside that were almost

finished.” Some boat molds that had been outside were salvaged. After the fire at Ferndale, the company re-formed as Northwest Marine Industries and relocated to its present warehouse at 809 Harris Ave. in Fairhaven — within shouting distance of its upstairs dance hall birthplace at 10th Street and Harris Avenue. After the fire, NMI got a lot of support from the boating community, Little said. “To come back was hard, because you’re starting from scratch. We decided to go for it, and I’m glad we did. “It was a lot of work. Everybody stuck with us.” A beautiful ride Back on the production floor in the Fairhaven warehouse, Little is talking about Sea Sport rendezvous, those (preCOVID-19) events at marinas in the San Juan and Gulf Islands where customers gather for fun and fellowship. “You get back together with the people you built the boat for,” Little says. “It’s great to get feedback, hear how they’re enjoying it, and it helps us build boats for the future.” As he speaks, he surveys a nearly finished, 28-foot Commander Sea Sport boat with a 9-foot, 9-inch beam and two 350-horsepower outboard motors. The boat normally retails for about $280,000, but this one, with deluxe custom upgrades and extra horsepower, is about $330,000. Little runs his hand along the satin-smooth, gleaming finish. “It’s a beautiful ride,” Little says. Just like this company, which is afloat and thriving despite rough water over its 66 years of continual operation.

TODAY

SEPT 11, 2014 2013

While continuing production at the Ferndale location, Ronald, Mark and Ryan dissolve Triton Marine and re-form as Northwest Marine Industries.

EARLY 2014

Greg Little joins the company as production manager.

A catastrophic fire destroys the factory and most of the equipment. Some boat molds that had been stored outside are salvaged.

NOV 6, 2014

NMI relocates to its present location at 809 Harris Ave., (500 yards away from the original 1955 factory) with the assistance of a Seattle boat broker and the Port of Bellingham.

2015

Michael Millison joins the company as production manager; Greg Little becomes vice president of operations.

NMI, owned by Ryan Binning, Mark Wright, Greg Little and Michael Millison, is known for its pilothouse boats Sea Sport, C-Dory, Osprey and Skagit Orca, with dealers on the West Coast, Alaska, British Columbia, Hawaii and Florida.

–Kent DeVries Owner, Jack’s Bikes

PHOTO: iStockphoto.com/MediaProduction

“Once all the gyms got locked down, people had to be able to release some energy and try to stay healthy. Bicycles seem to be one of those items that you can pull out of your garage and start riding right from your house.”

PHOTO: iStockphoto.com/MediaProduction

INDUSTRY PROFILE BP

RECREATION INDUSTRY

S E E S PA N D E M I C

BOOM Bikes, campers in high demand

Tony Moceri

ver the past 12 months, we have had to learn how to live differently. In a moment, life changed, impacting how we worked, lived and played. Everyone adapted to new regulations at work and school (both of which, for many people, were now at home). Vacations were canceled or changed, and routines were adjusted as we found new ways to work out with gym doors closed. Gathering with friends and family went from meeting at favorite restaurants to interacting outside at a safe distance, if at all. At first, people holed up at home, not quite sure what to do and fearing an economic collapse. What happened was much different. While some businesses struggled to stay afloat or had to close permanently, many thrived as people changed habits and adjusted to a strange new world. Unable to gather inside, people have taken to the outdoors, creating a boom in the recreation industry. According to the National Park Service website, national parks saw a dip in numbers in the first half of 2020 due to the long period of time during which they were closed. As parks reopened in the second half of the year, crowds swelled as people ventured out on the open road in search of outdoor adventure as a reprieve from being shuttered in place. Locally, we saw similar trends. The year started out as expected, followed by a large dip in the second quarter as businesses were forced to shut down. As the world slowly reopened, local recreation soared. Trails were packed, and everyone was in search of ways to enhance their outdoor adventures. Since opening in 1969, Jack’s Bikes in Bellingham has

never experienced business like it’s had over the past year at its store on Iowa Street. Due in part to its proximity to the popular Galbraith Mountain trails, mountain bikes have been in demand. However, it really hasn’t seemed to matter what type of bike it is; everything owner Kent DeVries can get his hands on is selling. “With the bike industry during COVID-19, the production and manufacturing of bikes was stopped, and all of a sudden it became a task to get bicycles,” DeVries said. “A lot of bicycles weren’t even available if you hadn’t ordered them four to eight months ago. And it’s all over the board: Kids’ bikes, basic mountain bikes, more expensive mountain bikes, hybrid bikes, electric bikes — just about any style of bicycle is selling.” DeVries chalks up this demand, in part, to people wanting to get out and do something. It’s also due to a change in exercise habits, he said. “Once all the gyms and stuff got locked down, people had to be able to release some energy and try to stay healthy,” DeVries said. “Bicycles seem to be one of those items that you can pull out of your garage and start riding right from your house.” The rental industry has been booming as well. With people able to come in and rent a bike and helmet to go enjoy the area’s world-class mountain biking, that side of his business has never been better. Most of the people renting bikes are from outside the state, and many have been drawn to the area specifically for the biking it has to offer. DeVries said he expects the high demand for bike sales and rentals to continue through 2021.

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The desire to get out and explore has created a similar scene in the camping arena. Campgrounds are seeing high rates of bookings, and according to Dave Andrews, general sales manager at Camping World of Burlington, manufacturers can’t keep up with demand for campers. This scenario of low supply and high demand has had people coming from King and Snohomish counties and even from outside the state in search of campers. It seems people are trading in their frequent flyer cards for camping vehicles. “Due to current low interest rates and current events, the demand will remain high,” Andrews said. While some of these purchases are large, access to inexpensive money means that getting into a camping setup is more attainable than before. Plus, campers can give people flexibility regarding where and how they travel. As people look to get out and explore, many are opting for the van route as opposed to the more tradi-

tional campers. This timing ended up being fortuitous for Ken Carr and Ryan Johnson, who have partnered to build custom vans. The shutdowns hit just after they’d started Carrve Custom Vans in March 2020. That was a scary moment, as both had just quit their jobs to pursue the business. As it turned out, the COVID-19 pandemic would be a plus for the business, as more and more people were looking for options to get away. The vans offer the ability to get even more remote, allowing users to get way off the grid. “People coming to Carrve Custom

Vans are looking for a functional, durable van that looks good, which is what we specialize in,” Carr said. This clear deliverable has people coming from all over to work with the tight two-person team. While customers started off local, Carrve is now working with people up and down the West Coast, with interest coming in from across the country. An unexpected aspect of the van buildouts has been getting people set up to work remotely. With fewer people physically going to the brick-andmortar office, a recreation vehicle can

With fewer people physically going to the brick-and-mortar office, a recreation vehicle can now be an office on wheels.

PHOTO: iStockphoto.com/Solovyova

BUSINESSPULSE.COM | MAY/JUN 2021

now be an office on wheels. This large demand has the Bellingham-based team currently booking into the fall for new orders, and they expect this trend to continue. It is hard to predict what the future has in store, but what seems to be certain is that the region’s opportunities for outdoor recreation will continue to get locals out of the house and attract those from outside the area wanting to join in on the adventure, spurring continued growth for businesses that support these endeavors.

PHOTO: iStockphoto.com/Cavan Images

Open water provides escape from daily life Tony Moceri With fewer ways to maintain distance, many people are choosing boating as a means to escape daily life. This heightened demand, coupled with COVID-19 and a change in ownership, helped 2020 become a big year for Bellingham Yachts. The Ouilette family started the business in 1984 and has been serving the local community ever since. The business specializes in 24-foot to 50-foot cabin cruisers and sells Saber Yachts, Back Cove Yachts and Cutwater Boats. Matt and Heather Ouilette had been in the process of buying out Matt’s family from the business for quite a while, and when COVID-19 hit and the world shut down, what was already going to be a big move became an even more complex event. Like all non-essential businesses, Bellingham Yachts was shut down, making second-quarter sales drop significantly. With the sale scheduled to go through in July, even in uncertain times, they decided to move forward. Fortunately, the boom in recreation boosted sales through the second half of 2020, seeing most purchases in the 24-foot to 30-foot range, both new and pre-owned. “We’ve seen a lot of influx in our industry from buyers moving up to the islands from the bigger cities such as Seattle,” Matt Ouilette said. “A lot of them have secondary homes on the islands, and they are finding themselves where they are now working from home and can be at their secondary homes more permanently and are now finding more need for a boat.” This increased demand, combined with the supply chain issues many industries are seeing, has resulted in a lack of inventory. At the time of this writing, Bellingham Yachts is currently presold into the middle of summer. Even though they are busy, the Bellingham Yachts team of 16 are eager to help people with their boating needs. The process of buying often begins online, with an in-person appointment then followed by testing the boats out on Bellingham Bay. This has been the family passion for 35 years, and Matt and Heather are excited to now be almost a year into their ownership of the family business. “We’re proud to carry on our family’s company and legacy,” Matt Ouilette said, “and really proud to be serving the community in the marine industry for as long as we have been and feel fortunate to be in a position throughout this past year to be busy and to continue growing our company.”

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ENVIRONMENTAL BP

A pivot toward renewables from bp What does it mean for Whatcom County? Cheryl Stritzel McCarthy

he oil and gas company bp is aiming to be a net-zero company by 2050. What does that mean, and what does it mean for Whatcom County? Net zero is a balance between the amount of greenhouse gases produced and the amount removed from the atmosphere (for example, absorbed by forests and such). When the amount we add is no more than the amount absorbed, we’ve reached net zero. What that will mean for Whatcom County is not so

quickly explained. Though the net-zero announcement was made in 2020, it is still early in the process.The major pivot for bp includes new strategies for the 112-year-old company, with aims to increase low-carbon investment tenfold, cut oil and gas production by 40% and reduce emissions by 35% to 40%, all by 2030. In the following Q&A with bp’s press representatives, Business Pulse finds out what is known now.

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Q: bp is changing from a company that produces oil and gas to a company that produces integrated energy. Most people would define integrated energy as what’s produced from wind, solar and bioenergy. How is bp explaining it? A: The explanation includes three parts: Low carbon electricity and energy: building scale in renewables and bioenergy, seeking early positions in hydrogen and CCUS (carbon capture, utilization and storage), and building out a customer gas portfolio to complement these. Convenience and mobility: putting customers at the heart of what bp does, helping accelerate the global revolution in mobility, redefining the experience of convenience retail, and scaling bp’s presence and fuel sales in growth markets. Resilient and focused hydrocarbons: while maintaining focus on safety and operational reliability, we intend to continue to high-grade the portfolio, resulting in lower and more competitive production and refining. bp will not seek to explore in countries where it does not already have upstream activities. Q: Between 2019 and 2030, bp aims to increase investment in low carbon technologies tenfold, to $5 billion per year. During that same period, bp aims to develop 50 gigawatts of net renewable generating capacity and reduce its oil and gas production by 40%. How will that impact bp Cherry Point? A: bp’s core oil and gas operations are the engine that creates value and enables our transition to an integrated energy company. The safe and reli-

BUSINESSPULSE.COM | MAY/JUN 2021

PHOTO: bp.com

“In the years ahead, bp plans to significantly scale up our low-carbon energy business and transform our mobility and convenience offers. And, as we drive down carbon emissions on our route to net zero, we are committed to continuing to deliver long-term value for stakeholders.”

able delivery of products produced at Cherry Point provide the energy that the world needs today and will need for decades. Over time, we’ll continue to drive innovation and improvements so that we become even more efficient at the production of fuels, doing so in a lower-carbon way. One example is a project at the refinery to expand our renewable diesel production. bp began producing renewable diesel at Cherry Point in

2018 through co-processing, which transforms waste products and biomass-based feedstocks like beef tallow and other triglycerides into a blended diesel fuel. This co-processed fuel has only 25% of the greenhouse gas footprint of diesel made from fossil fuels. bp’s investment in co-processing at Cherry Point has resulted in up to 300,000 metric tons per year of carbon dioxide being reduced from its diesel production — the equivalent to removing 115,000 cars from the road each year. Q: Specifically, what will a 40% reduction in oil and gas production by 2030 mean for bp Cherry Point? A: The oil and gas reduction referred to above applies to our upstream oil and gas production around the world. We never speculate on future changes to our portfolio. But in the years ahead, bp plans to significantly scale up our low-carbon energy business and transform our mobility and convenience offers. And, as we drive down carbon emissions on our route to net zero, we are committed to continuing to deliver long-term value for stakeholders. Q: In a CNN opinion piece co-written with the former executive secretary of the United Nations Framework Convention on Climate Change, bp CEO Bernard Looney said that if anything, companies are outpacing governments in embracing the Paris Agreement climate goals; that cutting emissions largely falls on companies to implement; and that society has a stake in helping them. He suggests that job seekers apply at firms that are committed to aiming for net zero, and that investors support companies that

“The safe and reliable delivery of products produced at Cherry Point provide the energy that the world needs today and will need for decades.” are cutting emissions and implementing climate-resilient strategies. How does this affect bp Cherry Point and Whatcom County? A: Everyone needs to pull together. About 70% of global emissions come from industry, transport and energy. To meet the Paris goals, the world cannot just rely on “green” companies to transform these sectors — we don’t have time. We need to support “greening” companies, too — companies with scale and know-how, with the ambition to become lower carbon and a plan for how to do it. In return, we should expect greening companies to be transparent and demonstrate progress and effort towards the delivery of their aims.

We believe we will attract top talent to bp because transitioning is going to be complex, and it’s going to require a lot of investment, new technologies and jobs. When you consider the enormity of the energy transition, this is a tremendous opportunity for the workforce of the future. It’s an exciting, dynamic time to be in the energy business, whether it’s at bp Cherry Point or other parts of the industry. Interview has been edited. In the CNN opinion piece, Looney added: “Achieving the Paris goals will take action from everyone — not just countries, but companies, local governments and even individuals. On the

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road to the 2021 UN Climate Change Conference in Glasgow in November, this lesson is paramount. “Big, established companies in high-emissions sectors such as energy, transport and heavy industry have an important part to play. These companies, acting with the highest levels of integrity — and with the backing of governments, investors and society — have the scale and capabilities necessary to enable rapid and substantial reductions in emissions.” Though specifics aren’t yet known, it looks as if bp Cherry Point, and Whatcom County, will be part of the coming global push toward net zero.

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Article photos courtesy of Bellingham Dockside Market

One fish at a time

Local organizations celebrate Whatcom’s maritime heritage Kyra Planetz

ong before the city of Bellingham was founded in 1903, the Salish-speaking peoples of the Lummi and Nooksack tribes fished the waters surrounding what came to be called Bellingham Bay. For thousands of years, these tribes relied on fish as a primary source of sustenance, using reef nets to catch salmon. When European settlers seeking to extract lumber resources arrived in the area around 1850, the tribes taught them this unique fishing method. The new settlers found fishing to be another fruitful industry. By the 1920s, salmon canneries were a major source of income, especially important during the two world wars. Today, with new innovations in preserving fish, the public’s taste for canned salmon has died down, ac-

cording to Steve Paus, the director of the Whatcom Maritime Association. But Whatcom County’s maritime industry remains an important and historical sector of the area’s economy, making up 7% of the jobs in the county. “It’s important to know what was here before and why things are the way they are now,” Paus said. “I think you teach that through heritage.” Since 2016, the City of Bellingham has been celebrating the heritage of Whatcom’s maritime industry in the form of a festival known as SeaFeast. What started as a simple idea has blossomed into an annual two-day event that drew a crowd of 13,000 people in just its third year. Deborah Granger, program manager of the Working Waterfront Coalition of Whatcom County, worked with the City of Bellingham, the Port of Bell-

ingham and others in the maritime industry to create the beloved festival. “Our community really had no idea what happens down on our waterfront,” Granger said. “We wanted to shine a spotlight on this amazing component of our community.” The Working Waterfront Coalition was formed in 2014 to address the concern of gentrification taking place at the waterfront, a process that could displace thousands of marine workers. Since its conception, the coalition has successfully developed a favorable water-reliant lease policy and prevented the loss of marine trades lands. It also continues to work toward the “vitality and economic benefits” of the working waterfronts in Whatcom County. Granger, who was a founding member of the Working Waterfront Coalition, is highly passionate about

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“Our community really had no idea what happens down on our waterfront.

commercial fishing and Whatcom’s waters. In 2015, when the City of Bellingham was looking for proposals to launch a ‘signature festival’ during the offseason, Granger, along with her husband and other maritime stakeholders, jumped at the opportunity. She heard about the idea just six days prior to the deadline and put together an application with her team and submitted with five minutes to spare. Several months later, the proposal had made the top four and Granger was asked to present to the Bellingham City Council. Councilmember Gene Knutson, who said the council voted unanimously to accept the team’s proposal, said he believes the Grangers have been instrumental in SeaFeast’s success. “As a city councilmember, I’ve worked with them for many years, and I think they deserve a lot of credit for this,” Knutson said. “They were the major movers in getting this started.” After the proposal was accepted, Granger and her team worked diligently to turn the SeaFeast idea into a reality, launching the first event in September 2016. The first festival — which highlighted maritime culture

BUSINESSPULSE.COM | MAY/JUN 2021

and heritage, conservation of water resources and commercial fishing and served locally sourced seafood cuisines — brought in 6,000 to 7,000 event goers. SeaFeast has grown exponentially each year, proving that community members are eager to learn how they can take care of the maritime industry. “We’ve demonstrated that our community wants to know and understand more about what happens on our waterfronts,” Granger said. Then, in March 2020, the COVID19 pandemic swept across the country, drastically impacting the fishing industry. The closure of restaurants and the loss of international markets meant local fishermen had few outlets for selling their seafood products. Additionally, the 2020 SeaFeast was cancelled due to safety concerns regarding large gatherings. Once again, Granger and her team leapt into action to address the problems fishermen in Whatcom County were facing. They came up with a concept that would allow the fishermen to sell their products and allow the community to participate. On Oct.

17, 2020, the first Dockside Market was held at Squalicum Harbor. Since then, more than a dozen other markets have taken place, with more than 400 people in attendance each time. The Dockside Market is an extension of SeaFeast that essentially allows fishermen the opportunity to sell their catch straight to the public. Granger said the market shares the same goals as the festival: to showcase fishing families, allow community members to see what happens at the waterfront, and expand public access to quality seafood. Though COVID-19 safety protocols are in place, including a mask mandate, Granger believes the Dockside Market is an authentic experience that allows the community to get outside and interact with others during a time of isolation. “You can’t see their smiling mouths, but you can sure see their smiling eyes,” Granger said. The Port of Bellingham — one of the organizations that helped make SeaFeast and the Dockside Market a reality — is creating infrastructure to support fishermen and the two events. The Port, which was founded

We wanted to shine a spotlight on this amazing component of our community.” –Deborah Granger

in 1920, operates transportation terminals (such as the Squalicum and Blaine harbors) and supports services for marine trades that boost economic development. The Port is currently overseeing construction of its new Fisherman’s Pavilion, a 9,000-square-foot covered building near Zuanich Point Park in Bellingham. Michael Hogan, public affairs administrator for the Port of Bellingham, said the organization is proud to support the community through SeaFeast, the Dockside Market, and the new pavilion, all of which will help celebrate local maritime culture and heritage. “[The Fisherman’s Pavilion] will lend itself really well to different activities and events that are a part of SeaFeast, as well as other events,” Hogan said. “Then, in the offseason, it will provide a covered work area for our commercial fishermen.” Though Seafeast may be put on hold for another year due to the pandemic, the possibility does still exist that the festival could happen. For now, the Dockside Market will continue throughout the spring, if not

into the summer. Granger encourages those interested in the event to follow the Dockside Market Facebook page (https://www.facebook.com/bellinghamdockside) for date announcements and to check the SeaFeast website (https://bellinghamseafeast.org/)

for updates regarding the festival. Instrumental to the foundation of Bellingham, the fishing industry lives on as events like SeaFeast and the Dockside Market continue to celebrate the maritime culture and heritage of Whatcom County.

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Local coffee lovers keep on sippin’

with nationally recognized roasters and 100-plus shops Mike McKenzie

BUSINESSPULSE.COM | MAY/JUN 2021

Herein you have your stalwart mainstays and your fresh faces, reaping all kinds of awards and recognition for excellence. They further represent the variety of shapeshifts and sizes of business models — wholesale, totally in-house, online, drive-thru and café shops. Above all, they stand as a testament to the love of expensive, exceptional coffee, hard times be hanged.

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Among the oldest and best In 2021, Tony’s is celebrating its 50th year of roasting. It was one of the first roasters and specialty coffee shops in the U.S., starting up the same year as Starbucks and Seattle’s Best, shortly after Peet’s introduced the traditional European concept in Berkeley, California. Tony’s started wholesale deliveries 10 years in, eventually selling the café that still operates independently in Fairhaven. Tony’s has operations in Bellingham and clientele covering the entire region (including the San Juan islands), servicing retail, companies, casinos, and more, coupled with direct-to-consumer via its website. The management team reports that the company has roughly doubled in the last decade — in employees (50) and in volume (more than 2 f Tony’s Co ffe en o million pounds e Ow y d a year). The banner headline for them these days: men Gwin a nd Car

S(l)ip into the world of coffee bean roasting in Whatcom County. Tony’s mirrors it. Mirror mirrors it. And it’s Maniacal. Specifically, this is the world of specialty coffee beans. These are Arabica beans, sometimes referred to as gourmet, which make up about 60% of the world supply. Robusta beans, on the other hand, are higher in caffeine and bitterness while considerably lower in price. Within this high-profile world, sprinkled with the jargon of beans and java, are a handful of quality Bellingham roasters, including Tony’s Coffee, Mirror Coffee Roasters and Maniac Coffee Roasting. That these roasters are in Bellingham is not insignificant, as the city has received media recognition (from such sources as Infogroup Research and National Geographic Travel) as being among the top 10 cities in the United States for specialty coffee. These companies reflect continuous growth. Business Pulse reported on this business segment almost 10 years ago, and the decade since has seen nothing but progress. Let’s double the roll call to punctuate the point, bringing in Woods Coffee in Lynden, a well-established roaster, and a couple of newcomers: Barnyard Coffee Roasters, in Blaine, and Camber, a roaster and café in downtown Bellingham. This sextet of roasters represents the stealthy mainstay brands (Tony’s was established in 1971, and Woods dates to 2002); the small (Maniac, along with the likes of Hammerhead, Lotus and AgriBay); and the new (Barnyard and Camber, along with the really new — as in, opening right in the face of the pandemic — Mirror and Coast Salish). Another popular, local wholesale specialist is Bellingham Coffee Roasters.

Diane and ders We un sH o F e

PHOTO: istockphoto.com / Zocha_K

he Woods Co ffe at T e

Tony’s became a founding member of World Coffee Research in 2012, took first in Best Espresso in America at CoffeeFest in 2013, won the Specialty Coffee Association of America Roaster’s Choice competition in 2014, and reached $1 million in social premiums paid to Fair Trade coffee cooperatives in 2018. Woods is coming up fast on its 20th anniversary. Ten years ago, Woods had 10 stores. It now operates 19 shops and/or drive-thrus in Whatcom, Skagit and King counties (though a few have

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Roast Magazine, an industry icon, named them Macro Roaster of the Year for 2021. “That’s very exciting for us; we’ve worked hard toward that goal,” said Wendy Owens, who, as director of distribution, manages sales, training, shipping and equipment maintenance. In a press release about the award, CEO Todd Elliott shared a similar sentiment: “Our commitment to sourcing high-quality, sustainable coffee has always guided our path, and we are honored to receive this recognition.”

ughter, CO OK d da an ell n a y rm

closed temporarily for COVID-19 safety). Woods roasts between 1,000 and 1,500 pounds a day and is the only 100% self-contained operation hereabouts. “We’ve become vertically integrated with our infrastructure,” CEO and

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founder Wes Herman said. “We now pick up from the dairy and distribute to all our stores, along with our coffee and daily fresh-baked goods and dry goods and everything else that we do. No one delivers any product to our stores except us.” Micro standouts While Tony’s and Woods are the giants of roasted coffee in Whatcom County, Maniac has been around for 15 years as a fixture on the popular micro-roasting scene. It was founded by Alexarc Mastema after he launched the renowned Black Drop Coffeehouse in downtown Bellingham. He still roasts for Black Drop, though he sold the coffeehouse to employees several years ago to concentrate on roasting alongside one employee. The pandemic jumpstarted deliveries to small accounts and individual customers — deliveries that Mastema makes personally, sometimes 75 a week and sometimes more than 400. The small roasters thrive on exclusivity at local coffee shops and grocery outlets, with loyal patrons buying by the bag. Lotus roasts for longtime drive-thru Mug Shots in Ferndale and newcomer Locus Café in Bellingham. Hammerhead, now under the auspices of Barnyard, distributes to numerous cafés and grocers, especially the Community Food Co-op. One drive-thru — The Bean Stop in Bellingham —

BUSINESSPULSE.COM | MAY/JUN 2021

even roasts its own coffee inside its small site. Research is hard to come by on facts and figures about the bottom line or employment power of the local specialty coffee industry. (We reviewed about 30 sources and determined that Washington rocks with the best — New York, California and Alaska.) All signs point to the industry as a robust segment of the Whatcom County economy. The signage hangs on well over 100 specialty coffee sites. Every town in Whatcom County, and much of the countryside between them, has an espresso presence, with names ranging from A to Z (Adagio/ Avellino/Allegro to Zoom Zoom). One source said the U.S. has more than 25,000 specialty coffee shops. If you drive enough loops and townto-town in Whatcom, it can feel like half of them are here. They’re in virtually every food marketplace. They’re in bookstores in Lynden. Every route into and out of the county is lined with espresso stops. The county’s first drive-thru opened in Bellingham in 1990 and still operates these 31 years later at the corner of Holly and Forest as I Wana Moka. The founder, Parker Graham, opened a second one — originally called Caffé GoGo — in Lynden. It sat on the site that now is the headquarters store for Woods Coffee. Those two started the boom. Woods (19 stores) and Cruisin’ Coffee (1-8 in Whatcom County, with

a 9th on the way in Ferndale) now lead that parade of locals. “At one point we led the area in stores,” Herman said. “Then Starbucks doubled down and opened several more. Now, with our fresh, from-scratch bakery instead of frozenthawed-sliced we have taken the lead in food selections.” In various shapes and sizes, the local roasters signal that regardless of fluctuations in the roller coaster ride of business, Americans won’t give up their gourmet coffee. It didn’t happen during the financial dip of the late 2000s. It didn’t happen during the pandemic of 2020. Slump, yes. What didn’t? But stop brewing coffee? No way. Coffee lovers relish one of America’s favorite drinks (even more than water, according to some online sources). At $1 and more an ounce, they brew in multiple ways at home, including with one-cup capsules, pour-over contraptions, moka pots, French presses, coffee percolators and drip coffee makers. Or, for $3.50 (and usually more) per cup, they drink while relaxing in a café setting or hurrying past a drive-up window. The number of ways to roast, serve and sip all-the-rage Arabica coffee is endless, from black to sugar-loaded to whipped-cream topped. Dark roast, medium, light. Hot or cold. Baristas bustle with a constant stream of car after car, walkup patron after walkup patron.

All this places Whatcom County squarely in an elite status, nationally. Coming to mind is a fitting line from 19th century English poet Elizabeth Barrett Browning. Coffeehouses — a tamer version of pubs at the time — numbered in the 500s across England in the mid-1650s, continuing in Browning’s day in the 1800s and still thriving there today. Browning’s famous line (which we can pretend is about coffee): “How do I love thee? Let me count the ways.”

Coffee’s lineup of newcomers The old guard in Whatcom County specialty coffee roasting has a combined 113 years in business among the Top Five (Tony’s, Woods, Bellingham Coffee Roasters and Maniac). Four others of note have stoked that fire in the last 6 years: Camber (’15), Barnyard (’17) and, just as the pandemic set in, the two newbies in the ‘hood—Mirror and Coast Salish. Camber’s founding co-partners — Andrew Bowman, Todd Elliott and David Yake — have an accumulative 50-plus years of specialty coffee experience, most of it at Tony’s. Elliott is the President and CEO at Tony’s. Bowman is their Director of Coffee. Yake is Director of Sales & Sustainability. Camber opened as both a café and in-house roaster. Yake paints the picture: “We’re totally separate from Tony’s — a sister company. We share their facilities but operate completely different green coffee buys and our own brand of very different roasts. It’s been a dream come true ... doubled business every couple

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managed a rural nonprofit retreat camp near Mt. Baker. So, why suddenly coffee? Derek summed it up in one word: “Palate.” He said, “I couldn’t find a coffee that I liked, so I decided to roast my own.” He started with a small home roaster that took 8 hours to roast four pounds. Three years ago “we bought a big one online and hauled it here from California on a horse trailer.” They operate a small shop in Blaine, thriving on wholesale accounts and, like all the roasters we checked in on, a rise in direct-to-consumer Internet orders. The two fresh faces of 2020 Mirror, started by brothers who grew up in Maple Falls (Mt. Baker High graduates), Mark and Sergei Kutrovsky, and Lummi-owned Coast Salish founded by Jeremy and Dina Garcia

offee co ror C -fo Mir un de

of years (through 2019). But, of course, last year was an odd one. Lots of cafés and wholesalers around the country shut down either temporarily, like us, or permanently. The flip side is that online business boomed ... up 300%! It was a saving grace for us.” Barnyard bought Hammerhead on the cusp of COVID-19 shutdowns. Scott Hartwich, a co-founder with his wife Mary Burwell, passed away suddenly during the Christmas season of 2019. “One of our customers who knew them contacted us,” explained Derek Peris, who started Barnyard with his wife, Debbie. “They knew Scott and Mary and asked if we might take it over and keep the popular brand alive.” So now they operate under the same roof, with two separate websites and customer bases. Prior to 2015, Debbie and Derek

Sergei Ku tro and rk vs a ki M

both began just before the Christmas season of 2019. And, then 2020 came crashing down. “We were already in the industry,” said Mark Kutrovsky. While Sergei had moved to Florida, where he worked in management for Sipper’s and Social Grounds in Jacksonville, Mark was a barista at now-closed Primer coffee shop in Bellingham, and with Woods roaster Shea Hagan.

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“We dreamed about it and went for it,” Mark said. They were to immediately provide coffee for a new shop in the downtown Granary Building, but it never opened.

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“We stayed confident and patient and worked hard,” Mark said. Steadily, they have established a customer base at Makeworth Market, a cluster of offices and small businesses, and online. “Our name, Mirror — we’re both photographers and video producers in digital marketing — stems both from the reflection from our cameras and from under the umbrella of the coffees of this world. This hasn’t been easy, but we’re optimistic.” Coast Salish started selling in the Bellingham Farmer’s Market and has resumed there this season. Their roaster, Christian Cultee, said they are working on obtaining shelf space at a local grocery. Meanwhile, their sustaining sales have come from their website. They operate out of a tiny one-room space in the Lummi Gateway Center off Slater Road. Cultee roasts Guatemalan beans sourced from another major player in the local specialty coffee industry, Edwin Martinez (Onyx), an international importer/exporter centered on his grandparents’ plantation.

MAY/JUN 2021 | BUSINESSPULSE.COM

BP PERSONALLY SPEAKING

LOCAL RADIO SEES CASCADING CHANGES Heidi Persson takes over as new general manager of Cascade Radio Group Dustin McKissen Based in Bellingham, Cascade Radio Group owns and operates multiple radio stations in the Whatcom County market, including FM stations 92.9 KISM, 96.5 KGMI, 97.9 KPUG, 98.9 KBAY and 104.1 KAFE, and AM stations 790 KGMI, 930 KBAY and 1170 KPUG. The family of stations, which broadcasts everything from news radio to classic rock, recently hired Pacific Northwest radio veteran Heidi Persson as the group’s new general manager. Business Pulse sat down with Persson for this month’s issue to learn more about her experience in radio, her vision for Cascade Radio Group, and how she sees radio and audio content becoming even more important to local business in the years ahead.

BUSINESSPULSE.COM | MAY/JUN 2021

I want to give a huge shout out to our advertisers. They remained committed to our community and our stations. They understood the importance of our work, especially in trying times. I will forever be grateful to so many of the businesses in Whatcom County. We needed their support. BP: Can you share a little more about your role at Cascade Radio?

difference we make in our community made me a lifer in this industry, right from the start.

HP: I am the new general manager here, having taken over after Don Curtis retired. It’s a big role and a lot to bite off. I am really, really blessed to have an experienced staff who know the market. They have been very gracious in bringing me up with them and teaching me the ropes. I’ve been a little hamstrung by COVID-19 in getting to know the community, but things are coming along. I am getting to know more and more businesses all the time and am really optimistic about where we are headed.

HP: How has the last year affected Cascade Radio? BP: You hate to say words like “happy” when talking about 2020, but there were bright spots. Thankfully, radio was essential work, so we never had to close completely. We worked remotely but could also stay on the air, providing companionship and comfort in times like these. Everyone pulled together so well. It solidified everyone and brought our team together. I want to give a huge shout out to our advertisers. They remained committed to our community and our stations. They understood the importance of our work, especially in trying times. I will forever be grateful to so many of the businesses in Whatcom County. We needed their support. At Cascade, we did our part as well, giving away a significant amount of free advertising to local businesses. This has been a situation that has called on everyone to do more than their part, and we saw that up and down the line.

BP: Did you come from another market, or did you work your way up through the Cascade Radio Group? HP: I came from another market. Previously, I worked in the Olympia area. I’ve been in radio for over 30 years, working in various markets before being recruited to Cascade. It was an awesome fit because my son and his family live in Ferndale. Being closer to my son and grandchild was an opportunity that I just couldn’t pass up. It seemed like it was meant to be. And we love it up here. BP: What about radio grabbed hold of you and continues to hold you? HP: Radio is unique. You can make it anything you want. I started my career being a board operator for Mariners games, back when they were really terrible. I started at the board and then for a while became an on-air personality. After doing that for a while, someone thought I had an aptitude for selling advertising to small businesses and helping them succeed. In radio, you get to do a bit of everything — you’re on air, you’re out in the community. You could help save a business or build a business. No two days are the same. It makes 30 years in one industry go by quickly. That, and seeing the

BP: What are some trends in radio, locally and nationally? HP: People think radio is a dying thing, but audio is having a resurgence. The number of listeners and streamers has actually increased for some stations during the pandemic. There is a lot of high-quality content and programming out there, and people are paying attention. Radio is just a big part of people’s lives, and that remains unchanged. Radio is a companion. We are a friend, and more than anything we are trusted. That trust factor is why partnering with radio can be so effective. Radio works into the fabric of our day. BP: With so many media options out there, what can you get from local radio that you just can’t find anywhere else? HP: At an advertising level, local radio is the one knocking on your front door asking how they can help. Chances

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are the television station didn’t call up a family business and ask how they can help. We do in radio. That’s what makes us different. We were literally assisting some of our advertisers in creating campaigns and programs designed to save their business. On the listener side, COVID-19 is an outstanding example of very localized information that may not be, or likely is not, available on any other platform. Depending on the market, information about local hospital capacity and local infection rates may not be available anywhere else. In 2020, local radio definitely demonstrated its value, and the community responded to that. Last year, our worlds shrank to our homes and the communities we lived in. That’s a very local world. It is the most local world. And a local world

will find us in so many new places. We will continue to do the things we’ve always done, but we are going to expand the personal touch of radio to more digital platforms than ever.

Heidi Persson and Joe Teehan, KGMI program director and KGMI Konnects talk show host.

needs a local news and entertainment source. BP: Five years from now, where would you like to see Cascade Radio Group? HP: That’s a big question. I would like to see the group even more invested in the community than we already are. I see an enormous growth in the promotions and events we have across the county. We are going to be on every platform we can be on. Listeners

BP: Since you’re in radio, what is your favorite album ever? HP: I came up through country radio, so I have always been a big country fan. Garth Brooks’ first album was one of my favorites. I just love what he brought to that genre of music, and he has always been my sort of spirit animal. I had the good fortune of meeting him several times, and he is just a really kind and talented person. But I don’t have a single “favorite” album. There is just so much good stuff out there. That’s one reason I love what I do!

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BP MARKETING

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White label content A competitive advantage for online marketing Patti Rowlson How many times a day do you search Google? It’s become so automatic for most of us that we may not even realize how often we type in a search unless we look at our history. According to Internet Live Stats, Google receives as many as 8 billion searches per day (90,000 per second!). This is a mind-boggling number — and it doesn’t include all of the searches made on Bing, Baidu, Yahoo!, Yandex and others. Where does all that online content come from? Who is creating all the blogs, articles, website copy and Facebook posts that show up in online search results? How do people find the time to write all that content? If you are like most business leaders, you find it hard to sit down and write fresh content to post online, and you probably don’t enjoy the process. You may not feel confident in your writing abilities. However, you probably know that adding relevant, quality content regularly to your website can help improve search engine rankings and get more eyes on your business online.

BUSINESSPULSE.COM | MAY/JUN 2021

This is where white label content comes in: A professional writer confidentially creates a variety of content to represent your brand. That content fits your business marketing strategy and speaks to your clients and potential customers. It’s not written by you, but it’s written for your business, and you publish it on your company’s website and social media pages and use it for email marketing and stakeholder interaction.

White label copywriters … can give your business a competitive advantage by ensuring that content shared online is professional and clear. Experienced white label writers match the tone of the writing to the brand — for one business, it might be technical and professional, while for others it is playful and informal or warm and caring. The key is to provide quality content that speaks on behalf of each business and engages its target audience, whether that be other businesses or individual customers. If your business regularly produces — or should be producing — any of the following content, you might benefit

from retaining the services of a white label writer: • corporate communications and announcements that share business news with various stakeholders, including staff and the general public • informational articles that get published on your company’s blog • website copy that explains products and services • email newsletters that reach diverse audiences • social media posts that promote community engagement • recruitment campaigns that attract more applicants • LinkedIn profiles and business pages that position your brand • diplomatic responses to customer reviews online — both positive and negative White label copywriters work like ghostwriters. They are behind the scenes, and their name is not associated with the work they do for your brand. They can give your business a competitive advantage by ensuring that content shared online is professional and clear. If the company you represent would benefit from working with copywriting professionals who can create relevant, engaging content, a white label marketer, such as Bellingham PR & Communications, might be able to help. ■ Patti Rowlson is the founder and communications director at Bellingham PR & Communications in Bellingham. Since 2009, she has helped small businesses and large corporations manage public relations and communications for a variety of stakeholders. Patti has been recognized for her work in the community by being named Most Valuable Player, Small Business of the Year finalist and Professional Woman of the Year finalist. She currently serves on the board of the Whatcom Business Alliance. Visit https://bellinghampr.com.

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POLICY OP-ED BP

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Higher taxes incoming Despite getting record-level revenue, the legislature is likely to impose significant new taxes on us Paul Guppy The year 2020 was one of the toughest years we have seen in decades, both for our state and for the country in general. A rare bright spot is that Washington, unlike most states, is receiving record levels of tax revenue, in addition to billions in direct federal aid. The total financial picture will help determine what programs are funded or expanded in the state’s next twoyear budget. First, some background. According to the results of the last election, Democrats control 28 seats in the state Senate, while Republicans control 21 seats (a number that includes one Democrat, Sen. Tim Sheldon, who usually votes with the Republicans). In the state House, the Democrats hold 57 seats, while the Republicans control 41 seats. Washington is one of 15 “trifecta” states in which Democrats control the governorship and both houses of the legislature. Republicans hold 23 trifecta states, while 12 states are split. The latest voting patterns show the Democrats’ base of

support is concentrated in legislative districts in Seattle and the surrounding Puget Sound area, which has moved the general orientation of Democratic lawmakers to the left. This trend is reflected in the legislative agenda and bills considered in the 2021 session. In addition, in 2020, Gov. Inslee was elected to a third four-year term. He is just the second person in state history elected to three terms as governor. Washington holds the distinction of Democrats holding the governorship for more consecutive four-year terms than in any other state, for a total of 40 years. The main job of lawmakers in the 105-day legislative session was to enact a new two-year operating budget. The state’s fiscal year starts July 1. The current 2019–2021 operating budget is about $54 billion. The governor, House Democrats and Senate Democrats all have proposed budgets for 2021–2023 that are well above that spending level, proposing an increase of roughly 12%, to about $59 billion. The size of the spending increase is surprising because Washington is one of the few states that actually saw in-

MAY/JUN 2021 | BUSINESSPULSE.COM

creased tax revenue during 2020 and early 2021. Estimated state tax revenues are up at least $3.2 billion and rising, plus the state is receiving some $7.2 billion in direct federal aid, added money that is not counted in the official state operating budget. Still, the legislature is counting on a range of new taxes that people would have to pay. These include a capital gains income tax, two energy taxes called low-carbon fuel standards, a cap-and-trade system to limit energy use, a 9.8-cent gas tax, new vehicle fees, a new payroll tax for health care entitlements, a possible Seattle-style jobs tax applied to workers statewide, and an expansion of tolling for people who use public roads. These may not all go into effect, but the length of the list gives an idea of the direction the legislative majority is moving.

These [proposed taxes] may not all go into effect, but the length of the list gives an idea of the direction the legislative majority is moving. Another increase in schools spending is planned, and education spending will likely rise to over $17 billion — which comes out to an average of around $14,000 per student, more than tuition at most private schools. Private schools and some charter public schools have been fully open for several months, and more traditional public schools are gradually reopening, too. Parents and educators worry about the long-term learning and emotional harm the long public school closure has imposed on students, and it will likely contribute to the growing achievement gaps between white

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students and those from other racial groups. A bright spot is that charter public schools, which are focused in underserved areas and are particularly popular with parents, may receive more equitable per-student funding. The better funding is balanced by the Washington Legislature’s decision not to reauthorize the state’s nationally recognized charter school law, meaning no new charters will be allowed to open in Washington. Proposals by Republicans to enact tax relief, particularly for working families and job creators such as small business owners, did not succeed. Several legislative proposals to place a reasonable time limit on the governor’s emergency power, as other states have, also failed. Overall, Washingtonians can expect to see higher taxes and a range of higher energy costs and increased fees, even as state lawmakers reap windfall revenues under current tax rates. More positively, the state economy is expected to continue to recover, as rigid public health restrictions are loosened, emotional and social tensions ease, and Washington families and business owners return to normal daily activities. Paul Guppy is the Vice President for Research at Washington Policy Center. He is a graduate of Seattle University and holds graduate degrees from Claremont Graduate University and the London School of Economics. He worked for 12 years in the U.S. Congress as a Chief of Staff and Legislative Director. As the Vice President for Research, he writes extensively on tax policy, public finance and other issues. He is a frequent commentator on radio and TV news programs, and in newspapers across the state, and he is editor of the Policy Guide for Washington State.

AGRICULTURE OP-ED BP

What will it take to save farming? Tomorrow, farming as we know it may be gone, captured in a few museum exhibits Gerald Baron

PHOTO: iStockphoto.com/Smederevac

Farming in Whatcom County today remains a strong and much valued part of our community. Ancestors of today’s tribal members grew and harvested camas bulbs and other staples. American and European immigrants settled here, cleared farmland and imported their productive farming legacy. Tomorrow, farming as we know it may be gone, captured in a few museum exhibits. It’s not because of poor land, a lack of water, or an inability of farmers to adapt to changing market conditions. It’s not even because of climate change. The single most important reasons for the decline and possible end of most farming are the policies of our state government and court decisions that reflect today’s progressive politics. Two issues have been playing out in this legislative session that illustrate the threat that politics play in the future of our farms. One is how farmworkers should be paid, and the other is who will control and have access to water.

In November 2020, the Washington Supreme Court ruled that the 1959 state law exempting dairy farm workers from being paid overtime was unconstitutional. Many other workers continue to be exempt. Dairy farmers immediately complied with the ruling, but farmworkers were devastated. Farmworkers in our state are already paid more than in any other state. Estimates of average pay range from $16 to $19 per hour. Most workers ask to work more than 40 hours, and often that is necessary given the seasonal and changing nature of farm work. After the ruling, however, many workers were told they could no longer work more than 40 hours per week. To maintain their pay, they had to take second jobs. To hear what farmworkers themselves have to say about this, visit http://www.protectfarmworkersnow.org/. The day the court ruling came out, the lawsuits from class action lawyers started. Now there are nearly 40 suits from lawyers as far away as Los Angeles. They claim farm employees are owed three years of retroactive pay. Never mind that the cost of this would put almost all farms out of business. Never mind that farmers were paying according

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almost certainly give our two local tribes full control over the water. They have already said that when this happens, other water uses will have to be curtailed to protect fish. Water will be curtailed, all right, but not to protect fish. We have more than enough water for fish and farms, as farmers have carefully documented at https://www.fishneedfarms.org/. But state law, combined with a lack of winter water storage in the Nooksack River, There is but one hope: Citizens and voters means that who care about our farms and local food when the river naturalmust band together and communicate ly dips below with our lawmakers and elected officials a level set as never before. by the state, Labor unions clambered for the back all except senior water rights holders pay despite the devastation it would will have to stop using water. With no cause to the workers they say they are reliable access to water, no bank will helping. Farm advocates, including support a farmer, and no farmer will Whatcom Family Farmers and its af- invest for the next generation. It could filiates across the state through Save indeed spell the end of the farming Family Farming, rallied to let voters community that we are blessed with and legislators know that farmworkers today. Cities and other water users also would be harmed. As of the time of could be left high and dry but may be this writing, the retroactive pay re- able to pay their way out of the legal quirements likely will be removed, but mess. It’s one thing to take action that mandatory overtime pay for all farmwill devastate farms and a communiworkers will be required. The harm to farmworkers will be ty; it is another to sell the idea based great, and the only way farmers can on deception. That is exactly what the survive this kind of continuing effort Department of Ecology is doing to get to raise the already high cost of labor lawmakers to fund their demand. The is to mechanize even more. Robotic lawsuits will most likely take longer milkers are being installed, and robot- than the 42 years an adjudication took ic apple pickers are on the way. Farm- in Yakima because of much greater worker jobs will be lost, and the move complexities. Ecology says it will take to ever larger farms will be even faster. 10 to 20 years, despite their own staff Water is an even more pressing issue saying Yakima’s would have been 80 in Whatcom County. Ecology will if it had included groundwater, as the most likely be given the funding to Nooksack litigation will. The results of a public records restart the lengthy and expensive process of suing all water rights holders quest by Whatcom Family Farmers in the Nooksack River basin. This will show that internal staff were aware to the 61-year-old law. The state legislature jumped in, first to try to protect farms. But that goal was hijacked by Sen. Rebecca Saldaña, a senate leader from downtown Seattle. Her amendment demanded that all farms, not just dairies, pay all their workers three years back pay plus 12% interest. This would destroy most of the 100,000 farm jobs across the state, including the 8,000 farm jobs in Whatcom County.

BUSINESSPULSE.COM | MAY/JUN 2021

of the cutting off of water to farmers, the problems cities would face, the difficulties of such a complex water resource area, and the problems of including groundwater. But instead of recognizing this, Ecology is selling a fantasy of nothing but gain for farmers and everyone else, plus low cost and little time. Farmers and farm leaders continually ask why our state’s leaders have turned against them as they ponder these strange happenings. Major media outlets are fixated on political perspectives that don’t support farmers. Anti-farm activists, though few, have an outsized impact on the administration, agencies and lawmakers. For example, Gov. Inslee turned to a leader of a discredited California union to write the rules for farmworker safety during the pandemic. Whatcom Family Farmers and Save Family Farming were formed more than six years ago to bring public attention to the grave threats facing the future of our farms. There is but one hope: Citizens and voters who care about our farms and local food must band together and communicate with our lawmakers and elected officials as never before. Local representatives voting against farms, such as in the adjudication issue, must answer to the voters. Without voter help, the future of farms in our community is fixed. With it, there is still hope. Gerald Baron is the founder and Executive Director of Save Family Farming, a state-wide farm advocacy group which supports affiliate organizations in Whatcom and Skagit Counties and Eastern Washington. He published Business Pulse in the late 1980s, owned Baron&Company, a Bellingham marketing and public relations firm, and founded PIER Systems, a communication software company serving government agencies and Fortune 100 companies.

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BP FINANCE

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PPP and ERTC Knowing these acronyms could benefit your business Orion Mark and Brittany Malidore U.S. businesses and their employees continue to face extraordinary disruption as they adapt to challenges brought on by the COVID-19 pandemic. In December 2020, Congress passed the Consolidated Appropriations Act to help keep small businesses operating and provide financial incentives to organizations that retain their workforce. More than $900 billion in aid was allocated with the act, which included an extension of Payroll Protection Program funding, taxpayer-friendly treatment for PPP loans, and an expansion of access to the Employer Retention Tax Credit in 2020 and in 2021. Is the PPP still available? The Small Business Administration administrated a new round of PPP loans in January 2021 to qualifying small businesses and nonprofits. The PPP loan is generally calculated as two and half months of a company’s payroll cost and can be up to $10 million. For a self-employed person without employees, the PPP can now be based on historical gross profits, with a loan amount up to $20,833.

BUSINESSPULSE.COM | MAY/JUN 2021

PPP funding can be used primarily to pay for payroll costs but also can be partially used to pay for other eligible costs, such as business mortgage interest, rent, utilities, essential supplies and operational expenses. The PPP is open for borrowers to apply until May 31, 2021, or until total funds allocated for the program have been used. Potential borrowers who want to apply for a PPP loan should contact their lender to determine the loan amount they qualify for and will likely need documentation of 2019 or 2020 payroll reports and income tax filings. Does PPP funding need to be paid back? What’s the tax impact? To provide financial relief to businesses, Congress intended the PPP to be a forgivable loan if certain requirements are met. Generally, PPP borrowers may qualify for full loan forgiveness by maintaining employees and compensation levels by spending a minimum of 60% of PPP funds on eligible payroll costs and the remaining PPP on other eligible costs during an 8- to 24-week period after the funds are received, called a “covered period.” For any portion of loan not forgiven, payments are deferred until 10 months after the end of the covered period (between that 8 and 24 weeks) at an interest rate of 1%.

There was a sigh of relief for PPP borrowers and their tax advisers when the act specified that PPP funds are not considered income for federal U.S. tax purposes and that expenses paid with the funds are tax deductible. This was a big win for taxpayers, as originally, the IRS firmly opposed having this taxpayer-friendly treatment for the PPP, until Congress clarified. What is ERTC? Another win that the act created for eligible small businesses and nonprofits is the ability to take a PPP loan and, if qualifications are met, the Employee Retention Tax Credit. The ERTC is a refundable payroll tax credit for eligible businesses that can be up to $5,000 per employee for the year 2020 and up to $7,000 per employee per quarter for 2021. The refundable credit is available to businesses that meet certain government-mandated shutdown orders (full or partial suspension of operations) or a significant decline in gross revenue. As business owners assess the potential credit opportunity, it’s important to understand that, while they can take advantage of both PPP and ERTC, there are some rules. For example, both programs are based on wages paid to employees. When performing calculations for these opportunities, businesses can’t “double dip,” using the same employee wages to maximize their funding for each program. Even though this limitation applies, significant dollars remain available through PPP and ERTC. No matter whether a business is currently thriving or challenged by revenue loss, we encourage organizations to explore this unique ERTC oppor-

We encourage organizations to explore this unique ERTC opportunity. With proper analysis and calculation, there may be an opportunity to take advantage of this credit. tunity. With proper analysis and calculation, there may be an opportunity to take advantage of this credit. Timing is key, and the opportunity is in the details As they say, timing is everything. With the rapid legislative changes that have occurred and may continue to occur, this is a time at which contacting your CPA or business adviser on how these relief provisions may affect your specific situation could make a positive impact on your business. For PPP recipients who are applying for forgiveness, there is optimal timing during the covered period that can be calculated to maximize forgiveness. For businesses that can take advantage of both the PPP and the ERTC,

the timing of the covered period and details of the costs impact the optimization of both programs. There are various pieces to fit together, and the details of these programs should be carefully considered and strategically planned to best serve your business and employees. Orion Mark, CPA, is a manager at Larson Gross. He has worked in public accounting since 2009 and specializes in serving businesses and individuals with their tax advisory and planning services. He serves as Larson Gross’s technical consultant on the Payroll Protection Program. Brittany Malidore is a senior manager and consulting director at Larson Gross. She specializes in working with owner-operated and professionally managed businesses in a variety of industries and leads the Employee Retention Tax Credit team at Larson Gross.

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BP LEADERSHIP

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Core values give rise to recovery There are a small number of things we must do to build resilient businesses. Establishing core values is one of them. Tom Doll The greatest strategy to growing a healthy, thriving business is not, by conventional standards, a strategy at all. The COVID-19 pandemic continues to test our personal and professional resolve, but for many organizations, the resiliency and even growth they’ve seen during these times share a common thread. It is a belief system, a commonly shared set of principles, characteristics we stand for, make decisions by, act on and celebrate who we are. It is our culture. Whether listed and framed hanging in the lobby, handed down verbally, assumed or scribbled on a napkin and tucked away in a drawer, core values define our businesses. They define how we function, how we communicate, how we treat one another, how we respond to adversity. Our true fiber is revealed when pressure is applied, and

BUSINESSPULSE.COM | MAY/JUN 2021

there has been no greater time to take stock of “what the business is made of ” than now. Gov. Inslee’s statewide stayat-home order was issued on March 23, 2020. It has been over a year since all this began. For some business owners, the first next steps were obvious. The instantaneous response was the result of established values; it came from who we are in our hearts. Many of us can easily remember our first thoughts about how we wanted to treat our people, our customers and our business in that chaotic and uncertain time, because it was the same way we acted every day. Why, and why with such certainty? Our hearts and minds have the “app” for that; it’s our standard operating procedure. It is the same system we use to hire, fire, reward and recognize the people in our business. Core values are what guide us to make tough planning decisions, deal with customer challenges and even decide how best to organize our office space for the comfort and safety of our people.

For some, the circumstances were too great to overcome, and the value system was all that remained. For others, the struggle to prioritize how to act illuminated a void — the playbook did not exist. Not recognizing a defined set of values simply means there has not been enough value attributed to establishing a standardized, celebrated set of guiding principles. The core value is there are no core values. Returning to the workplace and meeting in person, for many, will lead to reflection on what brought us through to this point. Surely, the security of the foundation on which rebuilding takes place is measured by the strength of the values we’d established before COVID-19 struck. It is our moral fiber, our compass for all things in business. For some, this time has provided

What we are truly made of, what defines us — our beliefs, key characteristics, principles and ultimately our behavior — comes out for the world to see when we are under pressure. new insight about our core value playbook — or lack thereof. The best place to start rebuilding is at the core, the foundation. What we are truly made of, what defines us — our beliefs, key characteristics, principles and ultimately our behavior — comes out for the world to see when we are under pressure. Some now fully know what

that is, and it evokes a sense of pride, true meaning and purpose. Others are just discovering how important it is to know. Only when we pack our own parachute can we be certain what will come out when we need it most. There are a small number of things we must do to build resilient businesses. Promoted throughout the business, memorized and brought to life through our behaviors, core values are the cornerstone, binding and supporting a company through the best and worst of times. How would you rate yours? Tom Doll is Bellingham-based leadership team coach and founder of TD Partners LLC. He helps business leaders and their teams build resilient businesses by coaching them to eliminate confusion, execute with confidence and to make building the business fun. https://tdpartners.co/

MAY/JUN 2021 | BUSINESSPULSE.COM

n March 25, we honored local business leaders — after a year’s postponement — at the 34th Annual Business Person of the Year awards banquet held at Semiahmoo Resort. The first live business event in Whatcom County in over a year was a hybrid event, limited to 100 in-person guests and live-streamed to over 200 virtual guests. Congratulations to all the winners and finalists!

Barbara Chase, WBA executive director

Business Person of the Year winner: Stephen Bates, Hempler Foods Group

BUSINESS P E R S O N OF THE

YEAR

Small Business of the Year finalist: Tidal Vision and team

Business Person of the Year finalist: Murry Park, Trans-Ocean Products

Tony Larson, emcee and WBA board member

BUSINESSPULSE.COM | MAY/JUN 2021

AWARD WINNERS: Start-Up Business of the Year: Paw Partner

The other start-up business finalists included: Lost Giants Cider, ProShop USA and Lean Revisions. Small Business of the Year finalist: Ecotech Solar

Small Business of the Year winner: VanderYacht Propane and team

SMALL BUSINESS

Small Business of the Year: VanderYacht Propane

OF THE

YEAR

The other small business finalists included: Ecotech Solar, Simple Box and Tidal Vision.

Business Person of the Year: Stephen Bates Hempler Foods Group

The other business person finalists included: Dr. Eddie Hansen, owner, Natural Way Chiropractic; Jennifer Kutcher, CEO, WECU and Murry Park, president, Trans-Ocean Products.

Small Business of the Year finalist: ProShop USA and team

Whatcom Lifetime Business Achievement: Marty Maberry Mayberry Packing Lifetime Business Achievement Award: Marty Maberry (daughter Jamie and wife Debbie accepted on his behalf)

LIFETIME ACHIEVEMENT

AWARD

Missed it? Watch the event recording here: https://bit.ly/3n6ZwIM Thanks again to our sponsors for making this event possible:

Start-Up Business of the Year finalist: Lean Revisions

Small Business of the Year finalist: Simple Box and team

Start-Up of the Year winner: Paw Partner and team

START-UP OF THE

Business Person of the Year finalist: Dr. Eddie Hansen, Natural Way Chiropractic

YEAR

MAY/JUN 2021 | BUSINESSPULSE.COM

Bronte, Jonathan, Tony and Danielle Larson

PHOTO: Tiffany Brooks

Big changes in motion for Business Pulse Larson moving on after more than 30 years at the helm Cheryl Stritzel McCarthy

n 1988, a newly minted college grad said “yes” to his mentor’s request that he join his son’s publishing company that was producing Business Pulse magazine. A year later, that young Western Washington University grad, Tony Larson, bought the magazine and became its publisher. Now, more than 30 years later, Larson is moving on to new roles in private industry and as founder of a local nonprofit. This milestone transition is a good time to look back at Business Pulse and at Whatcom Business Alliance, which Larson started in 2012 and now has hundreds of members, including companies and individuals. Business Pulse magazine is older than WBA. What’s the story?

The magazine that’s now Business Pulse was founded in 1975 by several people, led by banker Rick Tremaine, to report local business news. It was eventually bought by Gerald Baron, the son of Sid Baron, who was my mentor. I bought Business Pulse from Gerald in 1990. I worked for Sid while putting myself through college. Sid was a successful family man and a serial Whatcom County entrepreneur. He founded nearly 40 businesses, including several that still employ hundreds of people. He died in 2019 at age 88. Why did you start Whatcom Business Alliance?

I was elected to Whatcom County Council in 2010. I ran

BUSINESSPULSE.COM | MAY/JUN 2021

for office because there was little input from business on county government. While there, I witnessed firsthand the power of groups who were advocating against the interests of local folks in business and farming. When I left local government, I created WBA to meet the need for advocacy on their behalf. How did WBA and Business Pulse get connected?

When I founded WBA in 2012, it made sense to make Business Pulse its publication. It’s how we inform WBA members and all readers about the issues, people and ideas that shape our community. Last year, when I stepped down as publisher, its ownership by WBA became official. Business Pulse is the only marketing vehicle that directly reaches Whatcom County decision-makers. The most enjoyable part of publishing Business Pulse has been the extraordinary relationships I’ve developed with some amazing people. What’s ahead for WBA?

WBA is the eyes, ears and voice for all local businesses who need good policy to support their employees and facilitate our community’s success. Business leaders can’t sit back and think they will be heard without effort. They need to support WBA so it can be a voice for them. I’ll continue to support it personally as a WBA President’s Club member and lifetime advocate. Barbara Chase is now WBA executive director and direc-

tor of membership and business development. She previously owned a commercial HVAC company in Whatcom County and has experience with a national business advocacy group. She is very talented and capable, with an outstanding board of directors, all of whom bring their own talents to the organization. You are passionate about improving the social and economic vitality of Whatcom County. Tell us more.

I’m driven by a desire to make a difference in people’s lives. Business Pulse and WBA have been great vehicles for that. For my last 34 years in business, that’s been my focus: make Whatcom County stronger and more prosperous. When we do that, it will solve a lot of social issues. Business is a key driver of community prosperity. Businesses support the tax base, philanthropy, job creation, families. Ultimately, business success is what allows our government to provide essential public services. I got involved in public life because I wanted to use my gifts to make a difference; I enjoy coaching kids for the same reason. Through WBA we’ve launched the Youth Engagement Initiative and YES Whatcom, an employment service that provides high school kids a path to living-wage jobs with our companies here. If we connect with kids and give them economic opportunity, plus a path to owning homes, that will keep them out of trouble. I founded Whatcom County Business Person of the Year more than 30 years ago to recognize businesspeople for their accomplishments and community involvement.

Why move on now?

I told the WBA board of directors early on that regardless of the outcome of the November 2019 Whatcom County Executive election, I would be transitioning out of the positions of WBA president and Business Pulse publisher. I felt God was leading me to make a difference either via county government or another venue. (Larson lost by a slim margin, winning 48.8%

of the vote to Satpal Sidhu’s 51.1%.) Will you run for office again?

I never rule out anything. Decisions like that are guided by my faith. How do you feel about moving on from a magazine you’ve published for 31 years?

I’m content. When I sold the Bellingham Bells baseball club in 2008

Baron remembers the early days Gerald Baron, president of the communications firm Agincourt Strategies, is a former owner of Business Pulse: Business Pulse was in tabloid newspaper format in 1988 when I bought it. I didn’t buy the old typesetting equipment previously used but opted for desktop publishing, using a first-generation laser printer and Aldus PageMaker 1.0. The technology was so new, Time magazine interviewed me as one of the first people to produce a magazine using desktop publishing. None of my quotes were

used, though, because a porn publisher took precedence in the final story. In 1990, we experienced a massive flood that wiped out much of my office, equipment and records. Tony was running one of my businesses then, Instagraphics, a quick-print shop, and preparing to buy Business Pulse. I had known Tony since he was in college and working for my dad. I pared my three businesses down to one, sold Business Pulse to Tony — and the rest is history. (Remarks have been edited.)

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after running it for eight years, I was able to go to the games I so enjoyed without having to think about how many hot dogs were being sold. In this case, I look forward to seeing Business Pulse and WBA continue to make a positive impact on the county I was born in, raised my family in and will retire in.

Larson remembers his first day as owner Gerald Baron and I agreed on the sale of his business to me on Friday, Feb. 9, 1990. We were going to meet to sign the papers the following Monday. That weekend we had major rain. The runoff from the Bellis Fair Mall parking lot backed up Baker Creek, which ran past our office. The muddy water breached the creek and poured into our office, leaving a mud line 4 feet up the wall. The water had risen as far up as the

middle of the top drawer of a four-drawer filing cabinet. Everything was destroyed. Our magazine, which was about to go to press, our darkroom, all our equipment — a total loss. There was no flood insurance. Gerald and I worked out the sale, and I stepped into the role of owner and publisher with our business literally under water.

What’s ahead for you?

I’m excited about my new role as president of Barlean’s. Barlean’s began 30 years ago when David Barlean and his son Bruce transitioned from commercial fishing to providing high quality Omega-3s and other nutritional supplements. I’m also developing Illuminate Northwest, a nonprofit I founded to encourage Christian business leaders to operate their businesses and conduct their lives according to biblical principles.

Tell us about what’s behind you, too.

I worked on a Whatcom County farm as a teenager, started a business selling used books in college, joined Gerald Baron’s publishing business right out of college and purchased it 18 months later, did business consulting, got involved in startups, dabbled in real estate, and purchased the Bellingham Bells baseball club in 2000.

You have volunteered with United Way, Junior Achievement, NW Private Industry Council, Whatcom Chamber of Commerce, WWU Alumni Association, NW Economic Council, Opportunity Council and Lighthouse Mission.

I’ve been active in those and others. I like to keep my volunteer activity low-key. Giving should be done quietly, without attention. My philosophy is that giving is a huge gift to the giver. Interview has been edited.

STAND OUT FROM THE CROWD

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tiffanybrooks.com

THANK YOU! FOR STANDING WITH FARMERS!

Whatcom’s family farmers thank you for your strong support. With your help we are educating the public about Whatcom Family Farmers and how important it is to keep our family farms going for the next generations. Whatcom Family Farmers is ﬁnancially supported by our local family farmers and many individuals and businesses who are committed to helping protect the future of farming in our community.

SPECIAL THANK YOU TO OUR RECENT AUCTION SPONSORS! Andgar Corporation Bellingham Cold Storage Boundary Bay Brewing Jim & Elizabeth Boyle Cadman Charlie’s Trucking Country Financial—Lisa Ferguson Curt Maberry Farm Eaglemill Farms Farmers Equipment Co Len Honcoop Gravel AgriSured Al’s Plumbing and Electric Elevate Partners Hinton Motors

Inn at Lynden Maberry Packing Northwest Propane Pape Northwest Primac Electric Rader Farms Scholten’s Equipment Veca Electric Washington Red Raspberry Lynden Tribune & Print Northwest Dairy Assn Northwest Farm Credit Silvergate Farms WRS Lautenbach Recycling

Special thanks to CHS, primary sponsor of Real Environmental Action & Leadership education program.

And to Larson Gross, title sponsor of WFF Education auction.

E D U C A T I O N whatcomfamilyfarmers.org

55 farmersforreal.org

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BP ECONOMIC DEVELOPMENT PHOTO: iStockphoto.com/metamorworks

A good time to buy (and sell) a business Business transactions make sense in a post-pandemic economy Sherri Daymon, MBA Are you part of the silver tsunami? Are you thinking of making a post-pandemic change? Beginning in the fall of 2020, business owners considering selling began to come to the Western Washington University Small Business Development Center to say, “It is time.” The pandemic arbitrarily chose winners and losers in the post-COVID-19 economy, and small business was no exception. Business owners in industries that have thrived during the pandemic see an opportunity to sell now, with the potential of a more favorable selling price due to recent growth. Business owners in industries that were negatively impacted by the pandemic also are thinking about selling. These business owners could be motivated to transition now and to hand off the challenges and rewards of keeping products and services relevant. Interested sellers also want to know whether there are any interested buyers. The short answer is “Yes.” Some potential buyers, having an extended time of reflection during the pandemic, want to be their own boss and, at the same time, continue the legacy of existing businesses. Others see taking over an existing firm as having less risk. Because Bellingham frequently appears in “Best Places to…” lists, buyers also are coming here from other communities, looking to put down roots in a more desirable location. Two other groups of potential buyers often are overlooked. The first group is made up of competitors, vendors and other market partners. The second group is the firm’s employees.

BUSINESSPULSE.COM | MAY/JUN 2021

Sellers in thriving industries will need to help buyers see enduring value. Can a buyer justify the higher post-pandemic asking price? Can a buyer be sure the COVID-19level revenues and profits can be sustained? Sellers in sectors in decline can attract buyers by offering desirable purchase options for tangible assets to better compete with a potential surplus of inventory and equipment for sale. Additionally, creative sellers can offer to finance intangible assets of the business, commonly called goodwill, to give a buyer some breathing room for rebuilding the business. Successful sellers start the process by asking three simple questions: What am I selling? In other words, what is the value proposition of the business offered for sale? What is the buyer buying? Is the buyer buying a job in a new community? Adding a branch to an existing business? Making a passive investment? How will we steward the transition? This question includes the timing and financing of the sale, knowledge transfer and contractual matters. For many considering a business sale, these questions often are outside the owner’s areas of expertise. Selling or even closing a business can be burdened with emotion, poor timing and inadequate planning. After a hiatus working in finance, Sherri Daymon returned to the SBDC in 2017. Sherri recently became a Certified GrowthWheel Advisor and enjoys riding her bike around town, nerding out in Excel and dressing up in costume. For nearly four decades the Western SBDC has partnered with stakeholders to advance our local economy by growing existing companies and helping new businesses start smart. Call (360) 778-1762 or email sbdc@wwu.edu for more information.

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