Mountain Pacific: Everett bank celebrates milestone • 4
Boeing at 100 Our look at the company that’s shaped aviation • 8-15 Supplement to The Daily Herald
JULY 2016 | VOL. 19, NO. 4
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TABLE OF CONTENTS
DAN BATES / THE HERALD
Boeing workers build fuselages of B-17s during World War II. The warplanes were a key part of the company’s history, Pages 8-10.
COVER STORY How Boeing survived while competitors faltered, 8-10
BUSINESS NEWS Everett’s Mountain Pacific Bank cites relationships for success . . . . . . . . 4 Filing shows details of Everett Clinic deal . . . . . . . . . . . . . . . . . . . . . . . . . 5 EagleView Tech in Bothell expands amid changes . . . . . . . . . . . . . . . . . 6 Boeing workers speak their mind in ‘Emerging from Turbulence’ . . . . . 10 Boeing collaborator Teague pioneers aviation virtual reality . . . . . . . 12-13 Boeing is magnet that attracts other businesses . . . . . . . . . . . . . . . . . 13
Turn Key Auto thrives after bumpy first 10 years . . . . . . . . . . . . . . . . . 16
BUSINESS BUILDERS Monika Kristofferson: Ergonomics plays a role in productivity . . . . . . 18 Tom Hoban: Authors foresee a foreboding economic future . . . . . 18 Andrew Ballard: Lean methods can help businesses of all sizes . . . . . . 19 BUSINESS BRIEFS . . . . . . . . . . . 20 PEOPLE WATCHING . . . . . . . . . 21 PUBLIC RECORDS . . . . . . . . . . . 22 BANKRUPTCIES . . . . . . . . . . . . . 22 BUSINESS LICENSES . . . . . . . . . 24
Kaas Tailored credits Boeing for its survival . . . . . . . . . . . . . . . . . .14-15
ECONOMIC DATA . . . . . . . . . 26-27
Editor: Jim Davis 425-339-3097; firstname.lastname@example.org; email@example.com
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Contributing Writers: Doug Parry, Jennifer Sasseen, Deanna Duff Contributing Columnists: Monika Kristofferson, Tom Hoban. Andrew Ballard Publisher Josh O’Connor 425-339-3007 email@example.com
COVER PHOTO Boeing’s 787 Dreamliner combines groundbreaking technology with award-winning design. Courtesy of Teague
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Mountain Pacific reaches milestone Everett bank says key to success is relationships
“I tell our customers to use your banker as a resource. We don’t charge by the hour.” — Mark Duffy
By Deanna Duff For The Herald Business Journal
When Glenn Bayha walks into Mountain Pacific Bank, the tellers greet him by name. He even feels welcome to pop in for an impromptu chat with Mark Duffy, Mountain Pacific’s founder and CEO, to touch base and glean advice. “For me, banking is and should be completely relationship driven. That’s absolutely everything and it’s not typically something you get unless you’re dealing with a small, local bank,” says Bayha, owner and president of Cascade
IAN TERRY / THE HERALD
Mountain Pacific Bank president Mark Duffy started the Everett-based bank and will celebrate its 10-year anniversary in July.
Door and Hardware. Bayha’s business and Mountain Pacific Bank have grown together.
They are both celebrating 10-year anniversaries in 2016. Bayha was one of the bank’s first clients and
credits its personalized service for helping grow Cascade Door and Hardware. From credit lines to
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loans for new buildings and vehicles, he considers Mountain Pacific essential to his success. “They care about my success and I care about theirs. It’s not just a banking relationship. I view it as a business partnership,” Bayha says. For Mark Duffy, investing in relationships is as important as investing dollars. He began his banking career as a teller in 1979. The experience of faceto-face customer service remains the foundation for his leadership as CEO. With 40 employees spanning three branches — Everett, Lynnwood and Ballard — he ensures that everyone embodies the company’s ethos. As of May, Mountain Pacific’s total deposits were $167 million. While their retail locations offer personal banking, Duffy’s vision has always strongly emphasized business lending. “I’ve been a commercial lender for over 30 years. I think one of the most important things is being able to help small businesses — not just through loans, but being an adviser,” Duffy says. “I tell our customers to use your banker as a resource. We don’t charge by the hour.” Being small and focused allows Mountain Pacific to be nimble and offer unique services. The bank offers mobile banking whereby it picks up deposits from business partners. Bayha uses it three times weekly. Duffy cites it as an efficient way for a bank with minimal locations to serve a larger geographic area. Such strategizing helped Mountain Pacific not only survive the economic downturn of recent years, but placed it in a position to now thrive. According to Duffy, Mountain Pacific is one of the state’s fastest-grow-
ing banks with 20 percent annual gains for the last several years. During the downturn, it weathered the storm by shrinking the bank. The bank focused on existing customers and stopped lending to new ones. They also raised capital and, as Duffy says, “got creative” with construction development. Mountain Pacific oversaw the building of more than 70 homes, which maximized returns, rather than selling lots outright. “Being one of the few remaining community banks helps us. We’re trying to fill a hole left from the economic downturn. When I started, there were 14 banks headquartered in Snohomish County and now there are seven. The area lost a lot of banks,” Duffy says. There is a current upswing as regional banks recognize opportunities in the Everett area. Skagit Bank, headquartered in Skagit County, and Peoples Bank, headquartered in Whatcom County, are expanding to Everett. In April, Skagit Bank opened an Everett loan production office. Peoples Bank is further expanding its Everett footprint. In addition to a branch location which opened in 2015, a flagship financial center is slated to open this summer. The resurgence of regionally owned banks in Everett hopefully bodes well for consumers. Bayha knows a bank like Mountain Pacific understands firsthand what is required to navigate rough waters. “The difference between community and big banks is when you have troubles, the big banks often kick you out as quickly as possible — even over a little hiccup,” Duffy says. “A community bank like us knows you and will stand by you. We will help you through tough times.”
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Details emerge on Everett Clinic deal By Jim Davis
The Herald Business Journal
EVERETT — DaVita Healthcare Partners paid $405 million to purchase The Everett Clinic, according to recent filings with the Security and Exchange Commission. The Denver-based company took control of the independent medical group on March 1. The Everett Clinic kept its name and continues to be run by a physician board. It operates as a subsidiary to DaVita. The Everett Clinic’s assets were valued about $480 million, but DaVita also assumed $75 million in liabilities with the acquisition, according to a DaVita’s quarterly report filed in May. The most-valuable asset that DaVita gained was goodwill, an accounting term for brand name, customer base and employee relations. That was valued at $249 million. DaVita also obtained $107 million in property and another $124 million in other assets. An independent third party assessed the value of the land and equipment. The Everett Clinic was founded in 1924 by four physicians and has more than 315,000 patients in Snohomish and
“We’re starting to pivot away from the transaction and focus on our growth plans.” — Chris Knapp Island counties. With 2,000 employees, The Everett Clinic is the fourth-largest private employer in Snohomish County. About 250 doctors who owned The Everett Clinic voted in December to sell to DaVita, a Fortune 500 company that operates 2,000 outpatient kidney dialysis centers nationally, including one in Everett. The cost of The Everett Clinic was higher than DaVita initially expected. In DaVita’s annual report filed in February, the company said the purchase price would be about $385 million in cash although it would be subject to adjustments “for certain items such as working capital.” The Everett Clinic executives said the organization wasn’t under financial pressure to make the deal. Instead, the group wanted to merge with a larger organization to be able to fund expansion. The clinic wants to double in size by 2020. “We’re starting to pivot away from the transaction and focus on our growth
plans,” said Chris Knapp, The Everett Clinic’s chief legal officer. And those expansion plans are under way. The Everett Clinic plans to open a $17 million, 40,000-square-foot clinic in Shoreline in King County at 1201 N. 175th St., next to the Trader Joe’s. That’s scheduled to open Sept. 26. And the clinic recently signed a lease on a 31,000-square-foot facility that will become an ambulatory surgery center at 21401 72nd Ave. W in Edmonds, Knapp said. The clinic hopes that will open at the end of the year. Altogether, The Everett Clinic may add as many as five more clinics and already is looking at areas as far south as Fremont and Ballard in Seattle to Kirkland and north Bellevue on the East Side. The deal with DaVita gives The Everett Clinic access to capital to take on the expansion. DaVita has 65,000 employees and operates physician groups in six states. It announced an adjusted net
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income of $828 million. last year. DaVita purchased The Everett Clinic with the idea that it wanted to learn about how the clinic runs its medical practice, Knapp said. It’s been a two-way street in the first few months. “We’re learning a lot from the other markets as well,” Knapp said. “It’s been very rewarding to be able to spend time with our peers in California, Colorado and New Mexico. We can always improve and this gives us more information and best practices in other states.” There’s been a frenzy of mergers, acquisitions and consolidations in health care nationally and locally. Snohomish County’s three independent hospitals — in Edmonds, Monroe and Arlington — joined with larger health-care organizations over the past few years. Former competing health care giants, Swedish Health Services and Providence Health & Services, also joined forces. And Group Health Cooperative is being acquired by health insurance giant Kaiser Permanente, in a deal announced after The Everett Clinic-DaVita merger. Studies show that health care costs rise in areas where a single hospital has a monopoly. The Everett Clinic executives have noted that the county still has several large, competing health care institutions.
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6 THE HERALD BUSINESS JOURNAL
EagleView soars after year of change By Doug Parry
For The Herald Business Journal
BOTHELL — The past few years have been a whirlwind at EagleView Technologies. Since 2013, the aerial imaging firm has executed a merger, been sold, then sold again after the first sale fell through, and then just recently welcomed a new CEO and new Bill Bunker president. “I don’t think it’s been a crazy ride for folks, but there’s been quite a bit Rishi Daga of change,” CEO Bill Bunker said. “We’ve got a lot of innovations we’re looking at, so I don’t think it’s going to be an ‘ordinary’ ride for the next couple years. We’re looking to continue to grow the business very aggressively.”
EagleView has already grown to employ 464 people, 162 of them at its Bothell headquarters. It’s come a long way since 2006, when it all started with an idea and a birdhouse. Brothers-in-law Dave Carlson, a roofing contractor, and Chris Pershing, a software engineer, came up with the idea of using aerial photography to measure roofs. Using his wife’s ornamental birdhouses as models, Pershing refined his software based on Carlson’s feedback from the field. The duo soon patented their method of creating 3D models of roofs. They launched EagleView in 2008, and the company quickly won over roofing contractors by providing detailed measurements that had previously taken much more time and labor to gather. The 2013 merger with Pictometry, a New Yorkbased aerial imaging firm, gave the combined company a vast library of pho-
EagleView Technologies in Bothell uses its privately managed fleet of 100 planes stationed around the country to quickly measure the dimensions of buildings. The company underwent a sale last year and welcomed a new CEO in June.
tos that covers 90 percent of structures in the United States and put it in position to dominate the market for aerial measurement services. The company maintains a fleet of 100 planes stationed across the U.S. and Canada, outfitted with camera systems that capture images from every available angle. It uses the images to measure
every aspect of a building, including walls, windows, doors and siding — and do so more accurately than measurements done by hand. EagleView’s ability to quickly turn around a report on a house or a building is in demand among not only contractors, but insurance companies, solar panel installers, government agencies
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and utilities. It’s also been a resource after natural disasters such as Hurricane Sandy, when it provided tens of thousands of reports that helped assess the damage after the storm. Roofing contractors need the measurements to give accurate estimates and install new roofs, so they know exactly how big of an area they’re covering, what the pitch of the roof is, and even how many shingles they need. Other contractors use them to learn things like how much siding they need to cover a house, or what kind of sun exposure a house has for solar panel installation. In January 2014, New Jersey-based Verisk Analytics announced a $650 million purchase of EagleView. The Verisk purchase fell through due to antitrust concerns, but the price tag opened some eyes to one of the Puget Sound region’s fast-rising tech firms. The company was instead acquired last year for an undisclosed sum by Vista Equity Partners, a private firm that focuses on software and technology businesses. The sale was followed by changes at the helm. Bunker joined the company in early June, succeeding Chris Barrow, who had led EagleView since shortly after it was founded. Bunker has spent more than 15 years in leadership positions, most recently as CEO at ClarityHealth in Seattle. Meanwhile, Rishi Daga was promoted to
president of EagleView after serving as its executive vice president of commercial sales. Bunker, who has experience in Bothell’s technology belt as a past president of Vertafore Inc., said he was drawn to the chance to lead a successful enterprise that’s poised for further growth. “I think what the team has built here is fantastic, but I think there’s a whole other chapter in front of us,” he said. It takes a lot of flights to maintain EagleView’s photo library, but drones could one day be employed to help. Currently, the FAA places tight restrictions on commercial uses of drones, and all of EagleView’s images are captured using piloted aircraft. However, that could change over time as technology improves and the political climate changes. To prepare, EagleView is pursuing research on drone technology through Pictometry, which continues to operate as a subsidiary. Along with the Rochester Institute of Technology, it recently established a netted outdoor laboratory where students can test and study unmanned flights. Daga, the new president, said there’s endless uses for drones. “The use of drones in these applications can reduce the amount of time spent in the field and allow access to areas that may be challenging or dangerous on foot,” he said. Bunker pointed out that there will continue to be advantages to relying on the expertise of people in the air, just as the company relies on attracting tech talent to Bothell. To that end, you might see the historically low-profile company make an effort to get noticed in the coming months. “We’re certainly trying to get the word out in this region that you don’t have to commute to Seattle or Redmond to find a great opportunity to grow your career and be part of an exciting company,” Bunker said. “It’s amazing how many really talented folks are up here, and we hope to tap into that group.”
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PHOTO COURTESY THE BOEING CO.
The Model 40 was the first Boeing airplane to carry passengers, using steel tubing for the nose and curved wood-veneer laminate for the middle of the fuselage. The wings were wood and fabric. The 787 Dreamliner is the latest addition to the Boeing commercial line. As much as 50 percent of the primary structure — including the fuselage and wing — on the 787 are made of composite materials.
7 moments that made Boeing By Jim Davis and Dan Catchpole The Herald Business Journal
oeing launched as a company a century ago this month, surviving and even thriving through wars, the Great Depression, the Boeing bust and, in more recent years, the Great Recession. On July 16, 1916, timber baron-turned-aviation pioneer William E. Boeing started the company that was first named Pacific Aero Products and renamed less than a year later as the Boeing Airplane Co. The first all-Boeing designed airplane, the Model C seaplane, flew in 1916, a financial success after the Navy purBill Boeing chased 51 as the country entered World War I. By 1920, dozens of companies were building airplanes across the country in the new field of aviation. Most were located in the Northeast and Midwest. Over the years, Boeing has outlasted or bought out most of its competitors. The biggest acquisition came in 1997 when
Boeing, which dominated commercial aviation at the time, purchased McDonnell Douglas, a massive defense and space contractor. Somehow, Boeing in the Pacific Northwest emerged as the world’s dominant aerospace company. Why Boeing endured while the others faltered and faded can be attributed to countless reasons. Here are seven moments that made the Boeing Co. and continue to shape its future.
1 Engineering in its DNA William E. Boeing and his young company learned to make airplanes largely through by trial and error. He had no formal training in the science of flying, though he studied engineering at Yale before dropping out. He understood that top-notch engineering would be critical to his company’s success. In 1917, Bill Boeing gave $6,000 to the University of Washington to construct a wind tunnel on the condition that the
Boeing Century Look for a 48-page special section on Boeing in The Herald on July 8 and other Sound Publishing community newspapers that weekend. college offer aeronautics courses to train engineers for his fledgling company, according to the UW. (A wind tunnel produces an air stream that can be used on models of aircraft in order to investigate flow or the effect of wind on the full-size plane.) Boeing helped the college obtain a $290,000 grant from the Guggenheim Foundation in 1928 to construct what would become the UW’s aeronautics building. An aeronautics department was officially established in July 1929 with four faculty members; four years ago, the department was renamed the William E. Boeing Department of Aeronautics and Astronautics. In 1936, the UW built the Kirsten Wind Tunnel with federal and state fund-
ing and a loan from the company. It was one of the most advanced in the country at the time, and remains in use today. Bill Boeing’s initial $6,000 gift has grown to more than $80 million in donations from the Boeing Co. to the UW. In return, the UW has supplied thousands of engineers to Boeing. None would be more important than two of the first three mechanical engineers that Boeing hired, Clairmont Egtvedt and his classmate Phil Johnson. Both would one day lead the company.
2 Boeing walks away By 1934, Boeing had entered semi-retirement. He had set up a holding company called United Aircraft and Transport Co. or UATC, a conglomerate that owned Boeing Airplanes, which manufactured planes, and also owned commercial airlines and suppliers. UATC was one of three holding companies in the nation that controlled about 90 percent of the
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BOEING CENTENNIAL lucrative federal airmail contracts. Critics accused Boeing and other airmail carriers of colluding to squeeze excessive profits from those contracts. Smaller competitors said they were being pushed out by the big holding companies. Boeing and other industry leaders were grilled when they were called to testify before a Senate investigative committee. “My cut on it is you have big business in a very anti-business era in the middle of the Great Depression and a government that was unfriendly to big business,” said Paul Spitzer, an aviation historian who lives in Seattle. The worst accusations were never substantiated. However, that year, federal legislation prohibited any single company from both controlling airplane manufacturing and running an airline. UATC split into three companies, known today as Boeing, United Airlines and United Technologies. Boeing sold his shares in his company and walked away from the company he founded. “He’s humiliated by the Senate investigative committee,” Spitzer said. “He decides he’s not going to have anything more to do with an industry that puts him in that position.”
3 Betting on big Boeing’s departure left Egtvedt in charge. He challenged the company to build bigger and more complex aircraft. Under Egtvedt’s direction, Boeing as a company introduced the Clipper, the Stratoliner and the four-engine bombers, the B-17 Flying Fortress and the B-29 Superfortress. While the Stratoliner and the Clipper were commercial flops, the Flying Fortress and Superfortress proved vital for the U.S. in World War II. Boeing would come to make thousands of the planes. Boeing’s workforce jumped from 5,000 in 1939 to more than 51,000 in 1945. By the time the war started, Egtvedt had ceded the company to Phil Johnson, a fellow engineer and former classmate. It was Johnson who helped guide the manufacturing process, Spitzer said. “Johnson could walk out into the factory and know whether they were doing their job right or whether they were slacking,” Spitzer said. The company learned lessons that would last long after the war, embracing mass production and developing the beginning of its supply chain.
4 Perfecting the jetliner By the early 1950s, jet planes were clearly the future of commercial air travel. But making jetliners had huge risks. Missing the mark could financially ruin a company. Even as late as 1949, an internal study
PHOTO COURTESY THE BOEING CO.
Boeing workers assemble canvas-and-wood wings for biplanes in the company’s early years in a factory on Seattle’s Duwamish River.
pany had made after World War II. The Dash 80 led to the KC-135 military tanker and the 707. The cost of developing the planes could have overwhelmed the company if Allen’s bets hadn’t paid off. Instead, the 707 established Boeing as a dominant jet maker. “It wasn’t as if Boeing had a lock on the market, because they were first,” said aviation historian Mike Lavelle. “The reason they grew is because the 707 was a good airplane and the operators came to appreciate its efficiency for the time.”
5 A plane for every need PHOTO COURTESY OF TEAGUE
Plane-making has advanced over a century. This Emirates 777 first-class cabin features dynamic lighting transitions from dawn to dusk and includes starry constellations. It’s collaboration between Boeing, design firm Teague, the airline and France-based Pierrejean Design Studio.
by Boeing found that airlines could make money with jets on short routes, but they’d make much more with turboprops on mid-range and longer routes. Bringing a jetliner to market required government money, the report said. “No American aircraft manufacturer is in a position today to gamble on the development” of a jet transport. The feds balked at bankrolling jetliner development, leaving Boeing and its American competitors to go it alone. British and Canadian firms already had jetliners in the air. American airplane makers either had to play catch up or try to leapfrog past Canada’s Avro and
Britain’s De Havilland Aircraft, which launched the Jet Age in 1949 when its Comet I first flew. Leapfrogging in aviation could be costly, as De Havilland learned with the Comet. After starting passengers flights in 1952, Comets were involved in several high-profile crashes, including two mid-air break ups. Despite the risk, Boeing President Bill Allen, who succeeded Johnson, greenlighted a project to make a jet transport prototype. The project was called the 367-80, commonly known as the Dash 80. Boeing spent $16 million in 1952 on the project, nearly all the profit the com-
Allen oversaw a risky expansion of the suite of planes that Boeing offered to airlines. It was risky, but rewarding. He gave the go-ahead for the company to build the Boeing 727, designed to service smaller airports with shorter runways than those used by Boeing 707s. He wanted his sales team to come up with 100 orders — half the number of orders needed to break even on design costs. The team could only manage 80 with 20 eligible for cancellation, according to FlightGlobal.com. Allen proceeded with the 727 anyway. After production, sales still lagged. So, Boeing sent a 727 on a 76,000-mile tour of 26 countries. It worked. Boeing eventually produced 1,832 727s, making it one of the most successful commercial jets in history. It also was under his watch that the company built the 737 for short and Continued on Page 10
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‘Emerging’ offers inside view of Boeing D
oes it matter for companies such as Boeing that worker loyalty and emotional commitment seem to be loosening and becoming frayed? Does it matter that a large segment of the Boeing workforce is disgruntled and no longer enamored with the company? At first glance and by several metrics, the answer for Boeing would seem to be “no” or “not much.” With Boeing enjoying record orders far into the future, a stratospheric share price, healthy Leon profits, and continuing Grunberg steady increases in productivity, management might feel quite sanguine about reports of worker discontent and disengagement. Moreover, enjoying massive compensation packages, top executives Sarah Moore might also feel vindicated in the direction they took, arguing that they deserved such lavish awards rewards for doing a good job for their shareholders and customers. At first glance, these are powerful arguments that Boeing executives can use to deflect and counter the criticism they receive from labor unions and many of their employees. The company is soaring. Where is the evidence of a problem? Critics of the company’s postmerger policies contend that these good financial results mask underlying dangers that will emerge in the future to endanger the long-term health and vitality of the company. Many point out, for example,
Continued from Page 9
medium-flights; the first one rolled out in 1967. And then the company first flew the 747 in 1969. “They were using the technology breakthrough correctly for what was available and how to best fill a market need,” Lavelle said. “The market need drives that as well.” Boeing stopped production of the 727 in 1984, but the 737 and 747 are still being produced. This full suite of planes propelled the company into dominating commercial aviation. But not without some turbulence first.
6 Surviving the Boeing bust It’s one of the most talked about billboards in Pacific Northwest history: “Will the last person leaving SEATTLE — turn out the lights.” Two real estate agents put up the billboard near Seattle-Tacoma International
Voices in ‘Emerging from Turbulence’
Editors note: Authors Leon Grunberg and Sarah Moore conducted a 10-year study funded by the National Institutes of Health tracking the work attitudes of several thousand Boeing employees. The University of Puget Sound professors reconnected with many of those employees and some newer ones for their book, “Emerging from Turbulence.” ‘You know, Boeing ate up McDonnell Douglas, but we got a lot of their managers. Some of the dumbest decisions from the workers’ standpoint came from that union of those two companies.’ — Tech worker, age 62, thirty-five years at Boeing, interviewed in 2012
‘Engineers get to make the airplanes; we get to go up against the Airbus engineers. Mano a mano. It’s my engineers against your engineers. I like the competition; the company doesn’t.’ — Engineer, age 59, thirty-three years at Boeing, interviewed in 2012 ‘The company’s number one goal is profits. I know it sounds cold, but it’s true. I don’t think there is anything wrong with that. You know, if I was running a company, yeah, I gotta look out for profit margins because that reflects the health of the company. Workers rank right below that.’ — Mechanic, 27, one and a half years at Boeing, interviewed in 2014 that the billions in cost overruns already incurred in the 787 program — overruns that will spread into the future and onto still-to-be-built and delivered planes — might seriously jeopardize Boeing’s longterm financial health. Only time will tell if Boeing can move quickly enough down the learning curve to start making profit on the 787 planes it delivers. It can also be argued, as many human resource scholars do, that companies like Boeing lose a great deal of difficult-to-measure benefits in improved innovation, quality and productivity by not having a fully engaged and empowered workforce. Conclusive evidence in support of such claims is invariably hard to find for a vari-
ety of methodological reasons, including the crucial fact that productivity and financial metrics are the result of multiple factors, making it hard to conduct carefully controlled studies. In one sense, Boeing is fortunate as compared to many other large companies in that it produces a product that has a magical aura in the eyes of many employees. As several told us, airplanes are remarkable machines, composed of hundreds of thousands of parts moving in close formation at 30,000 feet and safely carrying millions of passengers all over the world. Even in this era of exciting technological advances, those who design and build
these airplanes can still marvel at the sight of them taking off or flying overhead. This magical quality gives Boeing a unique motivational tool that few other companies possess and mitigates the damaging effects produced by the new corporate culture. Despite this advantage, there is evidence in the survey and narratives that Boeing still operates with a great deal of unused potential work effort. From “Emerging from Turbulence,” by Leon Grunberg and Sarah Moore. Copyright © 2016 Rowman & Littlefield. Used by arrangement with the publisher. All rights reserved. No part of this excerpt may be reproduced or printed without permission in writing from the publisher.
Airport in 1971 as a joke in response to the pessimism in the region. And there was reason for pessimism. The boom time of the 1950s and 1960s ended. The 1970s ushered in a global recession and soaring oil prices. Boeing responded by slashing its workforce from 142,400 employees in 1968 to 56,300 in 1971, according to the company’s annual reports. And the company gave up plans to build a supersonic transport. “I’ve had production managers tell me that it happened so dramatically that they didn’t even know how many people they had working them,” Spitzer said. At its worst, Boeing even considered selling or canceling the 737 program. In the end, cooler heads prevailed. And it was fortunate. When the global economy recovered, airlines sought out planes and they bought 737s and 747s in droves. “Boeing just needed to know how to get from 1970 to 1976,” Spitzer said. “It reduced the amount of investments it was making, it dropped any ideas of new aircraft and did less costly upgrades on the 707 by re-engineering them.”
By the late ’70s, the 737 was on its way to becoming the best-selling commercial jetliner ever.
pany, not a Pacific Northwest one. That same year, Boeing started what would eventually become Boeing South Carolina, which includes a second 787 assembly line. Boeing has come under fire for moving jobs out of the state after lawmakers passed the country’s biggest state tax break package. Harry Stonecipher, the Boeing CEO and president who came from McDonnell Douglas, famously told workers to quit behaving like a family and start acting like a team. Workers who failed to perform would be kicked off the team. “When people say I changed the culture of Boeing, that was the intent, so that it’s run like a business rather than a great engineering firm,” Stonecipher told the Chicago Tribune in 2004. “It is a great engineering firm, but people invest in a company because they want to make money.” While the 787 has won critical acclaim, it cost $20 billion to develop and the company has spent more than $30 billion making the first 400 hundred airplanes. Company executives say they expect to start chipping away at that sum this year.
7 Forging a global company Boeing today exists in an era that should be celebrated. The company has a backlog of hundreds of orders for its innovative 787 Dreamliner. The company is preparing to build the 777X that it bills as the “future of flight unfolding.” A new factory to build nearly all carbon-fiber-composites wings for the 777X opened just this year in Everett. And its stock price hovers near an all-time high. But deep changes within the company can still be felt by the workers and the community. The Boeing merger with McDonnell Douglas in 1997 brought a change in the culture of the company. The company moved its headquarters from Seattle to Chicago in 2001 as it sought to become more a global com-
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ANDY BRONSON / THE HERALD
Teague senior 3D imagery designer Tyler Brinkhorst demonstrates how clients will use virtual reality goggles and toggle to view a plane’s interior. The industrial design firm is pioneering the use of virtual reality goggles for aviation. Below is a historic photo of Teague founder Walter Dorwin Teague.
A beneficial partnership Design firm Teague has been one of Boeing’s longestserving suppliers By Jim Davis
The Herald Business Journal
EVERETT — The future of Boeing can be seen, but it can’t be touched. A virtual-reality tour set up in a studio at Boeing’s Everett plant reveals the interior of the 777X, the company’s next-generation airplane that’s still years from production. It’s not Boeing employees who created this. It’s designers from longtime Boeing collaborator Teague. The industrial design firm is pioneering the use of virtual reality for aviation to help its designers understand the physical space of new planes and to help customers visualize what’s coming. “(Boeing) needs to bring customers and show them what they’re going to spend hundreds of millions of dollars, or billions
of dollars, on if it comes to a large order,” said Murray Camens, a Teague vice president and head of the company’s Aviation Studios. “We can do that virtually.” It’s not unusual for a Boeing contractor to work on a project as sensitive as the 777X. Teague began collaborating with the company 70 years ago and has been deeply involved with every plane Boeing
has designed since the 707. In fact, Boeing relies on thousands of suppliers to help with critical phases of production, said Boeing spokeswoman Mary Miller. Supplier-provided components and assemblies make up about 65 percent of the cost of Boeing products. Last year, Boeing Commercial
Airplanes alone spent more than $40 billion purchasing parts and work from about 1,500 suppliers. In Boeing’s early years, one of its first suppliers was Seattle’s Western Drygoods, which provided the company with Irish linens that were used on the fuselage and wings of airplanes. Since then, suppliers have entered and left the company’s supply chain. Teague stands as one of a small group of suppliers that have continued since the early years. Others include UTC Aerospace Systems and Rockwell Collins. Walter Dorwin Teague founded his company in 1926 in New York doing what was then called styling and now is known as industrial design. Teague helped his first client, Eastman Kodak Co., design cameras, retail locations and even World’s Fair exhibits. (Later industrial design achievements at Teague would include the Pringles canister.) In 1946, Boeing hired Teague to work on the interior design of the Boeing Stratocruiser. Designer Frank Del Giudice came to the Puget Sound area on a three-month contract and never left. He became the Boeing creative lead for
THE HERALD BUSINESS JOURNAL 13
BOEING CENTENNIAL “The future is not just going to happen. We create the future.” — Murray Camens
Teague and established Teague’s first Seattle studio. With the Boeing 707, which launched a little more than a decade after the Stratocruiser, Teague became the design firm for every Boeing plane through the 787 and now the 777X. “Everything you see when you walk into a plane, Teague has touched it,” Camens said. “If it’s a Boeing airplane, we have literally thought it through, conceived it, conceptualized it, made a mock-up of it, developed it into a physical full size and supported the engineering of Boeing to actually develop it into a production piece and then followed it into production. “Then you have the airline that comes and they purchase that airplane,” he said. “And they customize that interior with their colors, their finishes, their surfaces, their branding, and we support that part of the process, as well.” Teague now counts Boeing as its largest customer, although the company does design for others, including Microsoft, Starbucks and Intel. In 1997, Teague moved its headquarters to Seattle. The company runs studios in Boeing’s Everett and Renton plants. “If you think of 70 years of relationship, we’ve been in many buildings across the Boeing campuses both inside and outside the fence,” Camens said. “We’re inside
ANDY BRONSON / THE HERALD
Messages about design are printed on the walkway in the office of industrial design firm Teague, located in a Boeing warehouse in Everett.
the fence right now and this is where we like to be because it’s about collaboration and co-creation. What better way to do it than inside the home of the client?” In Everett, the modern, open office floor studio sticks out in an aging warehouse. About 100 designers work in the space on everything from the nose to the rudder of planes. The designers have even played a major role in the custom liveries that have become so popular, such as the Seahawks livery unveiled before the Super Bowl two years ago and the “Star Wars”-themed livery with R2-D2. Boeing relies on Teague to find, attract and train talent from all over the world, said Camens, who is Australian. His
designers are constantly looking for new colors, new materials and new designs. At the moment, one of the major influences in aircraft interiors is lighting, Camens said. It can help calm people’s senses as passengers board and fly on an airplane. “It creates a changing environment,” Camens said. “It creates a differentiation. When it comes to competitive differentiation, lighting is fairly easy to change out.” From the Boeing 707, which was the company’s first jetliner, Teague has created models of aircraft interiors where potential customers can walk down aisles, sit in seats and even eat meals. The company employs 30 builders creating mockups in Everett.
Virtual reality is seen as a natural next step, said Eric Klein, Teague’s design visualization manager. The technology has been around since the 1950s, but it was mostly just two small television screens inside goggles, Klein said. The technology has finally begun to become refined in the past few years with the Kickstarter-funded Oculus Rift goggles. While the goggles are mostly used in the gaming industry, Teague is adapting them to aviation. “The best thing about it is the sense of scale that you get in being immersed in the space,” Klein said. “We use it as a design tool to actually understand the environment we’re working in and then translate the work we like into physical mock-ups so we can work in the virtual and work in the physical and understand faster where we should be headed.” Camens said he sees this as another way for his company to provoke discussion. “The future is not just going to happen,” Camens said. “We create the future. I think as designers, we are really looking to the future and then we can back cast it. That’s what the future is going to be. This is what we’re going to do to get there.” Boeing gives 13 supplier-of-the-year awards, and only 12 in 2015. Teague has won a supplier-of-the-year award three times over the past five years. This year’s award was re-designed into a black monolithic piece that comes together in the middle magnetically. “The award is in two parts,” Camens said. “You have Boeing and you have the supplier. It’s about the collaboration between the two, and you can click them together to make a better whole, of course.” Teague designed the award.
Boeing attracts, grows other businesses By Jim Davis
The Herald Business Journal
EVERETT — Global Aerosystems started in 2006 as an engineering firm that aimed to build original aerospace products. And then Boeing called. “We were going to be an engineering company and make things,” said John Thornquist, one of the founders of the company. “But Boeing needed help and those managers knew us. So we just pivoted.” Global Aerosystems was tapped to work mostly on the 747-8 program while Boeing diverted its own engineers to the then-struggling 787 Dreamliner line. That catapulted the growth of Global Aerosystems, which went from an original six founders to more than 140 people in just three years, said Thornquist, who was appointed earlier this year as Gov. Jay Inslee’s director of the Office of Aerospace. Thornquist and the other founders sold the company in 2010 to Connecticut-based Kaman Corp. It’s now called Kaman Global Aerosystems. From the very beginning, Boeing has
“What an incredible anchor tenant the Boeing Company has been.” — John Monroe
relied on suppliers for its commercial airplanes and defense, space and security businesses, said Mary Miller, a Boeing spokeswoman, in an email. Last year, Boeing Commercial Airplanes alone spent more than $40 billion buying components and assemblies from about 1,500 suppliers. That’s about 65 percent of the cost of building its commercial planes. She said that suppliers are key to providing “customers with more capability for less cost in today’s highly competitive and dynamic business environment.” “Last year, Boeing Commercial Airplanes delivered a record-high 762 airplanes,” she said. “We could not have done that without a highly capable and diverse supply chain.” Boeing has attracted or grown a hub of businesses ever since the company opened its Everett plant five decades ago,
said John Monroe, chief operations officer for Economic Alliance Snohomish County. “In 1967, there was nobody here, but then the Boeing Company established its footprint,” Monroe said. “What an incredible anchor tenant the Boeing Company has been.” He points to the number of manufacturing jobs in the county. There were 16,000 people in manufacturing in the county before Boeing, according to the U.S. Bureau of Labor statistics. Last year, there were 60,000. And many of those jobs are in the more than 200 aerospace firms in the county that contract with Boeing. And Boeing attracts talent to the area, Monroe said. He can rattle off a number of aerospace firms that have been started by former Boeing workers who ventured on their own.
That’s why Economic Alliance is so excited about the recently opened Composite Wing Center in Everett, a $1 billion, 1.3 million-square-foot facility to build carbon fiber wings for the 777X jetliner. The wing center has already attracted several firms to the area, including Kuka Robotics, M. Torres and Avic. But carbon-fiber composites are being used more and more in manufacturing and is versatile enough to be used on everything from airplanes and automobiles to musical instruments and kayaks. Monroe said the composite wing center could be the proving ground for workers who could start the next generation of companies in the county. Many of those companies will stay and grow here. Thornquist, who helped Kaman win a supplier of the year award in 2012, noted his former company’s office was just 15 minutes away from Boeing’s offices. They could have been further away and just Skyped meetings. But it made it easier to visit. Thornquist said: “If you’re dealing with very complex structures, it’s very advantageous to be close to the installation.”
14 THE HERALD BUSINESS JOURNAL
IAN TERRY / THE HERALD
Kaas Tailored employees Duy Pham (center) and Bao Ngo (right) laugh as they work on an airplane cushion at the company’s Mukilteo headquarters. Kaas Tailored has adopted the Japanese business practice of kaizen, which calls for each employee to make steady improvements to the workflow.
Kaas Tailored learned from Boeing By Jennifer Sasseen
For The Herald Business Journal
Kaas Tailored owes its very existence to Boeing. That’s what the owner of the Mukilteo furniture maker believes and it’s not just because Boeing is a client. If not for the “Lean” philosophy Boeing adopted in the 1990s and encouraged in its suppliers, his company would probably not be around today, said Jeff Kaas, owner of Kaas Tailored, which supplies such products as porthole curtains and crew seats and mattresses for aircraft, including presidential and VIP planes. “The big story is, ‘Lean’ got started in the Pacific Northwest because Boeing got it started,” Kaas said. Kaas Tailored averages $20 million in sales a year, Kaas said. He estimated it saves 10 percent, or $2 million a year, by reducing waste through lean philosophy, or kaizen. With profits at just 5 or 6 percent, it’s hard to imagine the 200-employee company surviving without that waste reduction. “And really, I think ultimately, there are people probably in Boeing who would agree that what has happened at Boeing as a result of this learning is why they’re still alive,” said Kaas, 48. “The 737 line is producing double what they thought was possible when I started my career.” Call it lean, kaizen or continuous improvement, it’s a manufacturing
“The big story is, Lean got started in the Pacific Northwest because Boeing got it started.” — Jeff Kaas method used by Toyota for decades. Boeing executives learned it by traveling to Japan and touring Toyota, then paid consultants to help train employees and suppliers. What a lot of people don’t know is that Toyota developed its lean manufacturing method by studying American companies, Kaas said. It started when the United States sent consultants to Japan to revitalize its manufacturing industry after World War II. Toyota representatives learned about production lines by visiting Ford Motor Company and from American supermarkets, they learned how inventory could be minimized by replenishing only what customers were buying A desire to build something of quality and to create a company that respects its employees and teaches other companies to do likewise seems as integral to Kaas as it does to Toyota and to kaizen. He learned about honor at his father’s knee, though his “love your neighbor” faith he learned on his own, he said, by reading the Bible and finding truth. When he graduated college, it was natural for him to start working at his father’s
company, then known as Kaasco Inc. “I loved the idea of doing honorable work,” he said. “My dad was all about keeping his word. And I looked at what we were doing and at the time, he had already done work with Nordstrom and Boeing; and I really had a passion for building a family business and having something of lasting value.” Today his wife, Stacey, and three of his four children work at Kaas Tailored. The company is all about family and treating employees like family, said Jay Peterson, aerospace product development lead, who started out 23 years ago. All through the recession, Kaas kept every employee who wanted to work. “Nobody lost their job,” Peterson said. “He made sure that everybody had something to do.” When Kaas’s father, Larry Kaas, started the company in 1974 with cousin Allan Kaas, they named it Kaasco International Inc., according to the Kaas Tailored website. It started in an old barracks building at Paine Field, Kaas said. When the cousins had a falling-out, his father re-formed and re-named the company Kaasco in 1980.
The Kaas company moved to a new building in Mukilteo in 1992 and, in 1997, his father retired and gave the company to him, Kaas said. By 2000, big-box store Costco was causing too much confusion with the Kaasco name, so he rebranded the company as Kaas Tailored. (According to family lore, the Kaas name is itself a bit of a misnomer, having originally been Olson, or perhaps Olsen. But when his great-grandfather emigrated from Norway and settled in Ferndale, Kaas said, he discovered too many Olsons in the area and changed his name to Kaas, after a farm in Norway.) In 1999, the Kaas company followed Boeing’s lead and took the first of its own study trips to Toyota in Japan. All told, Kaas said he’s visited the factory a total of six times and has paid for a number of employees to make the trip over the years. He’s traveled overseas to teach others about kaizen and has yet to charge a fee, or to ask for reimbursement for airfare or accommodations, he said. It was while he was in Holland giving a kaizen talk a few years ago that he was approached by Dutch furniture company Design on Stock, he said. A tour of the company’s factory led to a reciprocal tour in Mukilteo and the two companies realized they had much in common. Today, Kaas Tailored is the only American manufacturer of Design on Stock furniture, which is sold online and
THE HERALD BUSINESS JOURNAL 15
BOEING CENTENNIAL at one Arizona store and four Washington stores: McKinnon Furniture in both Bellevue and Seattle, Kaas Tailored’s Design on Stock factory showroom in Mukilteo and at Zinc Art + Object in Edmonds. Design on Stock furniture is quality furniture made to last, Kaas said, “and we have a flat pricing model. The price is the price is the price. It doesn’t go on sale.” For local businesses interested in learning lean philosophy, which he refers to as kaizen, Kaas leads tours of his company three days a week, 40 weeks a year, with a summer break. Tours last four hours and average up to 50 people, he said. Goals of kaizen include reducing waste and inventory, spurring creative thinking and innovation in employees and achieving “one-piece flow,” a state in which everything is flowing smoothly on the production line. Kaizen means employees are respected and given the power to stop the production line and make changes when needed, Kaas said. Stress is reduced to a minimum. At Kaas Tailored, employees are required to come up with 12 kaizens a year; this means they spot a problem, suggest an improvement and then carry out the improvement. Seamstress Duy-Phuong Pham, who moved to the area six years ago from Vietnam, said she was having trouble reading a chart of sewing instructions for different projects. She suggested that the instructions be color-coded and it was done, she said,
IAN TERRY / THE HERALD
Jeff Kaas speaks during one his Mukilteo-based company’s “Waste Tours,” which give visitors an inside look at how Kaas Tailored maximizes efficiency.
proudly displaying a sheet of color-coded instructions. While the old way of manufacturing was to create “batches” that were then passed on to the next work station, Kaas said, lean manufacturing concentrates on “bits” — completing the thing needed to ready the work for the next station. Work is started when orders are received and there is little-to-no extra inventory. In a recent government order for 459 small curtains that can be snapped over a plane’s porthole-like windows, instead of completing the entire order, Kaas Tailored completed 15 curtains and waited to
make sure there were no problems. As it happened, there was a problem — a snap failed. Project lead Jutta Claytor determined it was the fault of a too-long grommet shaft that bent when the snap was attached to the curtain. Boeing engineers were called and fixed the problem. Had Kaas Tailored gone ahead and completed all the curtains, Claytor said it would have cost the company $114,750 in penalties — $250 a curtain — in addition to the cost of re-working the curtains. Kaas named defects as one of the seven deadly wastes kaizen is meant to reduce.
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The others are overproduction, transportation, motion, waiting, processing and inventory. “Overproduction is the most evil waste because it causes and hides all the other wastes,” he said. Overproduction is often a result of decisions made in the corner office, Kaas said, and he worries that not enough companies touring Kaas Tailored send people with the power to make decisions. Teaching powerless employees about kaizen might actually hurt more than help. “Most of our guests look at this and say, ‘This is so simple. Let’s do it.’” Kaas said. “Very few of them have the power to make that decision.” As a result, he is currently rethinking how the tours are conducted and considering requiring the presence of more decision-makers from “frequent-flyer” companies. As for future clients, Kaas said he is “very inspired” by the work Laura Zeck is doing at Edmonds’ Zinc Art + Object. “And now what we’re doing is, we’re looking for Lauras,” he said. “We’re 100 percent sold on, ‘Let’s find cool people doing cool stuff who totally understand the future of retail.’ Meaning — small shop, high service, no overhead and true value in their community.” It’s a small-business model that might not exist without Boeing. As Kaas said, “When you have great companies in your community like Boeing, small companies thrive.”
16 THE HERALD BUSINESS JOURNAL
Turn Key Auto survives rough ride Everett mechanic cites focus on quality in reaching anniversary By Jim Davis
The Herald Business Journal
Any business that reaches a 10-year anniversary is doing something right. Any business that hits that mark nowadays has double the reason to celebrate.
In the past decade, there was a something that’s come to have been called the Great Recession. And that caused havoc for emerging businesses. Turn Key Auto Service opened at 2210 112th St SW in Everett 10 years ago on July 15. It wasn’t long after the opening that
the recession started taking full effect. “We were just trying to do the best quality job we could is how we survived,” said Pat Heiden of Turn Key Auto Service. “It was a tough time. People weren’t spending money on their cars. We worked on some cars that probably shouldn’t have been on the road.” The auto mechanic still saw continued growth
from Day One. Heiden and office manager Lori Hughes credit the business philosophy of creating a relationship with customers with carrying them through. The mechanic specializes in Volvo and Toyota and has expanded to include BMW and Mercedes, Hughes said. The business employs five fulland one part-time. Turn Key Auto Service
opened at the site of a former scaffolding company and its proximity to Paine Field has helped. About half of the business’s customers work for Boeing or other aerospace companies around the airport. Turn Key Auto Service has about a 70-percent retention rate. Hughes suggests that’s due in part to the efforts to keep the customer informed about the needs of their vehi-
cles without pushing for unnecessary repairs. “Instead of pushing people in and out and selling things to make our monthly bills, we’re looking out for our customers best interests,” she said. Turn Key has also kept its rates fairly flat over the years. Turn Key also has loyalty programs, such as a free oil change after repeat service. And the business holds a monthly drawing for a customer for a gift card to its business. As a bonus, Turn Key gives $50 to that customer’s charity of choice. It’s part of the business’s commitment to the community. When the lot came up for a sale this year, Turn Key purchased the land to stay in the community. While all of this has helped, the core philosophy is what has let the business reach its 10th anniversary. “We’ve always kind of said, cars break all by themselves,” Heiden said. “And repairs are very expensive. Taking care of the customer and fixing their car problem is what brings them back.”
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More than 12 cents of every $1 generated and one job in 10 are attributed to the agriculture, forestry and fisheries industries in the Northwest, according to a new study. The study was commissioned by Northwest Farm Credit Services and conducted by Oregon State University Extension Service Rural Studies Program and the University of Idaho Extension Service. The study shows the continued importance of the industries to the Northwest’s economy, said Phil DiPofi, Northwest Farm resident and CEO, in a statement. Of the states, Washington had the most jobs dependent on those segments. The study found that 303,321 full- and part-time jobs related to those industries in 2015. Sales totaled $58.8 billion last year.
THE HERALD BUSINESS JOURNAL 17
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18 THE HERALD BUSINESS JOURNAL
You better sit down (properly) for this I
’m not an expert in ergonomics in the workplace, but I do believe that it’s important to set up our work areas by taking ergonomics into consideration. It can help us work more efficiently, as well as have a positive impact on productivity. The largest class of injury claims in the office are work-related musculoskeletal disorders, which account for more than 40 percent of all Washington State Fund workers’ compensation claims among office workers, according to the Washington State Department of Labor and Industries. I’d say productivity could take a major hit with stats like that. A few years ago, I was having a lot of trouble with pain in my right arm, and I’m right-handed. I was seeing a massage therapist and putting my arm in ice baths. One day, I had my chiropractor, who is also a friend, come to my home office and take a look at what I had going on. I’ll tell you how it all panned out, but after I share some more information with you. The average office worker sits for 10 hours each day, according to an article from the Washington Post. This includes
time in front of a computer and time at home in front of screens, as well. That’s a lot. With all that sitting, you can see why proper ergonomics is so important. Monika Remember those Kristofferson work-related musculoskeletal disorders I mentioned Office above? Well, here’s Efficiency a list from the state Department of Labor and Industries of what those can look like: ■ Neck strain; ■ Shoulder tendonitis and bursitis; ■ Carpal tunnel syndrome; ■ Hand and wrist tendonitis; ■ Low-back pain; ■ Tennis and golfer’s elbow. None of those sound very fun to me. Personally, I’d like to add eye strain as a problem, too. So, let’s look at some solutions to try to avoid pain and missed work days while improving efficiency and
productivity. For starters, no ergonomic strategy is one size fits all. Everyone is different so everyone’s needs are different. I’m on the short side so my needs are probably going to be different from my taller friends. I would highly recommend you bring in an expert to look at what will help you specifically, as well as the team members in your business office. I’m a big proponent for proper lighting. When I’m working with clients, I always look at the lighting in their work area. It’s common for people to just get used to one overhead light or dim surroundings and not think about adding a lamp to their desk. It’s an easy fix and maybe it will even save you some squinting wrinkles. I also think there are some great options out there that are very affordable for ergonomic keyboards and for an ergonomic mouse. It’s also a great idea to take breaks, move around and do some stretching throughout the day. The following are just some of the suggestions from Labor and Industries: ■ Sit with neutral posture; ■ Sit with your shoulders relaxed;
■ Keep your monitor just below eye level to keep your head level; ■ Keep your keyboard close to elbow level to help keep your wrists straight; ■ Sit with knees at the same level or slightly below the level of your hips; ■ Keep your feet slightly out in front of your knees; So, here’s how my situation turned out. I brought my chiropractor into my office and she sat in my chair and let me know I had no cushion left in my chair. I had gotten so used to sitting in it that I didn’t even notice how bad it had become. After she gave me her recommendations, I raised my laptop by using a stand that allows for proper air flow for the laptop and was at a better height for my eyes. I added an ergonomic keyboard, which sits on my desk since my laptop is now raised. And, of course, I bought a new chair. Guess what? No more arm pain. I’d say that’s successful ergonomics in full force. Monika Kristofferson is a professional organizer and productivity consultant who owns Efficient Organization NW in Lake Stevens. Reach her at 425-220-8905 or firstname.lastname@example.org.
o-authors and brothers Brian and Alan Beaulieu make a compelling case about the future of the American economy in their book, “Prosperity In The Age of Decline: How to Lead Your Business and Preserve Wealth Through the Coming Business Cycles.” The Beaulieus argue that the next Great Depression will hit sometime around 2030. The two have a strong track record of predicting the American economy, so their book is getting considerable attention. They say that in the absence of some new technology, a war or some other major influence over our American culture today, our national balance sheet is out of whack and the bill on our debt will
come due, triggering a depression. The book isn’t so much about making the case for the decline. It’s more about how to prepare readers for it and offer some Tom tips on how to lead your business or Hoban household through it. Realty But they are Markets clear: The next Great Depression will probably last a decade and will reset nearly everything in America just like the Great Depression in the 1930s defined
the last century. The issue is really a math equation. There simply aren’t enough younger working adults in 2030 to cover the growing cost of government as Baby Boomers draw on Social Security and medical costs. The combination will suck too much out of the economy at a time when our government balance sheet is at a breaking point. Inflation will be upon us at that point as elected officials choose to print money to pay bills before forcing discipline on the cost side. That will complicate and extend recovery as the only Americans with any memory of how to live in an inflationary environment will be older than 70 by then. The fix is pretty straightforward, but
culturally out of reach, it seems. By extending the eligibility age on Social Security benefits on younger Americans starting today, adjusting the program to focus on those in lower income brackets, making a decision to not impose higher taxes on our kids than we have been paying ourselves and modifying or replacing the Affordable Care Act with something better, we avoid it. It’s hard to imagine that Americans becoming less partisan and disciplined enough to do this, so circle 2030 and watch as we willingly take ourselves there. Tom Hoban is CEO of The Coast Group of Companies. Contact him at 425-339-3638 or email@example.com or visit www. coastmgt.com. Twitter: @Tom_P_Hoban.
Can we avoid the next Great Depression? C
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Practice ‘Lean’ to boost bottom line W
hen I ask busiStep One: Divide all ness owners (or major process and promanagers) how duction activities into two to increase their bottom categories by listing them line, most reply, “by cutin “value” and “non-value” ting costs.” columns. Evaluate the However, there is sequence and activities more than one you undertake category of cost to deliver prodthat encumbers ucts or services companies. to your end cus“Lean” practomer; consider tices can elimiwhether each nate other costs creates value. that impact Before beginprofit, such ning this first as extraneous step, be clear on Andrew process steps, what your cusBallard redundancy and tomers’ value, time. e.g. quality, Growth Here is a convenience, short-term cost, service, Strategies exercise that selection, speed, can pay longsafety, recogniterm dividends. tion, relationships, etc. While most experts Important note — when attribute the origins of I write “value” I am referlean to the Toyota Proring to what the “conduction System launched sumer,” not “producer,” in 1948, I suggest that considers to be of value. lean surfaced earlier in Step Two: Subdivide our history, when Henry your “non-value” list into Ford pioneered the first two groups — “needed moving assembly line in waste” and “pure waste.” 1908. Not all of my kaizen Needed waste doesn’t brethren agree with me create value but is operaon that point; nonetheless, tionally necessary and in these practices are tried support of value creation. and true. Pure waste includes activThe fundamental ities that do not present or principle of lean is that support value creation for the allocation of resources the end customer. for any purpose other Step Three: Adjust than “creation of value” your operations. First, by for the end customer is removing pure waste, you considered to be wasteful, will increase speed and and therefore a target for productivity, e.g. by reducelimination. ing steps in a production Note that lean pracprocess, paperwork, packtices aren’t just for large aging, inventories, space manufacturers; companies and movement. of any size and sector can Second, enhance the benefit. A basic lean exeractivities on your “value” cise has three steps. list that will have the
greatest positive impact on your customers. In other words, leverage your strengths and shore up your weaknesses. Here are two examples to simulate ideas. After going through this exercise in my office I found that I was walking to the second floor several times a day because that is where our print station was located. By adding printer in my office (on
by eliminating waste that does not create value for the end customer. Go through this exercise with your team; you’ll be pleasantly surprised how many opportunities you will find to boost your bottom line. Andrew Ballard is president of Marketing Solutions, an agency specializing in growth strategies. For more information, call 425-3371100 or go to www.mktg-solutions.com.
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20 THE HERALD BUSINESS JOURNAL
BUSINESS BUILDERS ARLINGTON — A Tractor Supply Company is opening in the former Food Pavilion building in Arlington. The national chain will employ 15 full- and part-time employees at the store at 17020 Smokey Point Blvd.
Long-term includes regularly scheduled vessels only.
EDMONDS — On July 30, Edmonds Center for the Arts will celebrate its 10th anniversary season with a free, all-ages Birthday Bash. Live music performances will take place on both the main stage and an outdoor stage from 3 to 9 p.m. To RSVP, visit www.ec4arts.org or call 425275-9595. Seating is general admission and first-come, first-served. Concessions will be available for purchase onsite.
Ship port calls 2016 YTD: 39
TULALIP — The first Toys ‘R Us Outlet store in Washington is opening at the Seattle Premium Outlets, located at 10600 Quil Ceda Blvd. in Tulalip. The outlet will offer an assortment of toys at prices not found at its full-size stores.
July 19: Westwood, Westwood Olympia
EVERETT — Sport Clips Haircuts has opened in Everett’s Osborne Square shopping center at 4809 132nd St. SE. There are more than 1,500 locations across the U.S. and Canada. Carolyn and Don Funk are the new Sport Clips team leaders and owners. STANWOOD —The Stanwood City Council officially accepted a $3,500 grant from the Port of Seattle to launch a visitor information website focused on
for Remodeling Excellence named Edmonds-based Chermak Construction a regional winner in its Residential Interior Under $100,000 category for 2016. The entries were judged on overall design, the creative use of space and materials, and the degree to which the project enhanced the original structure. Chermak Construction has won three Chrysalis Awards in the past six years.
PORT OF EVERETT SHIPPING SCHEDULE
Barge port calls 2016 YTD: 31 Ship port calls 2015: 133
EVERETT — Heroux Devtek has been awarded a contract by Boeing to supply landing gear for the 777X airplane. Economic Alliance Snohomish County brought the Canadian firm to Everett and helped it open a 20,000-square-foot facility at the PowderMill Business Center. Ramp-up is under way for delivery of production landing gear in early 2017.
Barge port calls 2015: 61 July 6: Westwood, Westwood Columbia July 12: Westwood, Hammonia Berolina
July 24: Swire, Siangtan July 24: Westwood, Westwood Pacific Source: Port of Everett the Stanwood area. The website, www.discoverportsusan.com, will provide a one-stop resource about where to stay, and dine in Stanwood and surrounding areas. Businesses interested in advertising on the new website can contact city administrator Deborah Knight at firstname.lastname@example.org. EDMONDS — The Chrysalis Awards
Marketing Campaign in Peril?
OLYMPIA — Nominations for the 2016 Governor’s Lifesaving Awards are now being accepted. The awards are presented to workers in Washington who have saved a life in the past 12 months. The heroic act must have occurred during work hours and taken place between June 1, 2015, and May 31. Deadline for nominations is June 30. Nomination forms are available at www. wagovconf.org. SNOHOMISH — A new craft beer bar and bottleshop has opened in Snohomish. Josh’s Taps & Caps, owned
by husband and wife Joshua and Mara Arnold, is located at 1800 Bickford Ave., Suite 210. Customers ages 21 and older can bring their own food, order delivery or take advantage of food trucks while enjoying beer or wine. For details, including a food truck schedule, go to www.JoshsTapsandCaps.com. BOTHELL — University of Washington Bothell’s School of Business has maintained its accreditation by the Association to Advance Collegiate Schools of Business. Fewer than 5 percent of the 16,000 business schools worldwide have this accreditation. LYNNWOOD — The North Puget Sound Small Business Summit is scheduled for 9 a.m. to 3 p.m. Nov. 2 at the Lynnwood Convention Center. The summit is designed to help small businesses with educational and networking opportunities from public, private and business resources. Go to www.economicalliancesc.org/ for details and sponsorship information. EVERETT — Providence Regional Medical Center Everett is offering the first MAKO Partial Knee Resurfacing procedure in the Puget Sound region outside of the Seattle-Eastside market. The robotic-assisted surgery enables accurate alignment and placement of implants. It is also less invasive than traditional total knee surgery.
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PEOPLE WATCHING MONROE — Canyon Creek Cabinet Company recently promoted Richard Westwood to the credit manager position. He has been with Canyon Creek since 2002, moving through the ranks in the credit department. BOTHELL — Ron Tilden, an accounting lecturer in the University of Washington Bothell’s School of Business, has been appointed to a three-year term on the board of the Washington Society of Certified Public Accountants. Tilden helped launch the school’s accounting degree option, which accepted its first students in 2008. MOUNT VERNON — Hospice of the Northwest, part of Skagit Regional Health and United General District 304, has announced the appointment of Bob Laws to the position of executive director. Laws has worked at Hospice of the Northwest since February 2008. EVERETT — Designer Gary Hartz, owner of Kitchens for Cooks Residential Design Services, has been selected to design for the 2017 International Kitchen and Bath Industry Show in Orlando, Florida. He has worked in the local design industry for more than 30 years and is also a design instructor. MOUNTLAKE TERRACE — 1st Security Bank of Washington has named Kelli Nielsen as its new senior vice
Dick Van Hollebeke
Ell Roy Oster
president of retail sales. Nielsen brings 24 years of banking experience to 1st Security. Most recently, Nielsen was a senior vice president of retail banking at Sound Community Bank. She previously served as vice president, sales and service manager of retail banking for all 23 branch locations at Cascade Bank. EVERETT — Todd Cudaback, owner and president of Everett Hydraulic, has been elected the District 2 director at Toastmasters International. Cudaback will lead an executive team that oversees 3,600 Toastmasters members in 175 clubs in District 2, which spans from Kent to the Canadian border. MONROE — Pacific Earth Works is recognizing two long-term employees.
Ell Roy Oster has been with Pacific Earth Works for 30 years and has worked on many projects, including the UW Surgery Center and Marysville Getchell High School. Juan Cruz has been with the company for 25 years. Some of his projects include Seattle Children’s Hospital and the Paul G. Allen Athletics Center at the Lakeside School. EDMONDS — Landau Associates has hired Laura Crandall and Eri Ottersburg for its Edmonds office. Ottersburg is a senior scientist in the permitting and compliance group. Crandall is a project coordinator. MUKILTEO — Jamie Bulls has joined the Senior Leadership team at Benefits Solutions Inc. in Mukilteo. Bulls
It starts with one or two.
is the national senior vice president for business development and sales. Bulls brings more than 25 years of health care experience in sales/account management and executive leadership positions across various U.S. geographic markets and industry segments. LYNNWOOD — The Washington State Association of College Trustees has selected Edmonds Community College’s former Board trustee Dick Van Hollebeke for the 2016 Trustee of the Year Award for his leadership in the community and the technical college system. LYNNWOOD — Linnea Granryd has joined the lighting design and consulting team in Stantec’s Lynnwood office. In this role, she will support the group by producing lighting calculations, energy code compliance reviews, renderings and graphic packages, fixture schedules, hand sketches, mockups, project cost opinions. EVERETT — Coastal Community Bank has hired Scott Becker as vice president, relationship manager serving south Everett, Kirkland and Bellevue. Becker, who will work out of 5415 Evergreen Way, Everett, most recently was employed at Opus Bank in Kirkland. Currently, Becker serves as president of the Kirkland Chamber of Commerce and president elect of the Rotary Club of Kirkland.
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22 THE HERALD BUSINESS JOURNAL
PUBLIC RECORDS Bankruptcy filings The following Snohomish County businesses or individuals filed business-related bankruptcies with U.S. Bankruptcy Court for Western District of Washington from April 1-30. 16-12431-MLB: Chapter 13, Gurpal Singh; attorney for debtor: Marc S. Stern; filed: May 3; assets: yes; type: voluntary; nature of business: other; nature of debt: business; type of debtor: individual 16-12767-MLB: Chapter 7, James F. Armstrong and Lynn D. Armstrong; attorney for joint debtors: Martin E. Snodgrass; attorney for special request: Annette Cook; filed: May 24; assets: no; type: voluntary; nature of business: other; nature of debt: business; type of debtor: individual 16-12845-CMA: Chapter 11, Stephen M. Waisanen; attorney for debtor: Jacob D. DeGraaff; attorney for special request: Lisa M. McMahon-Myhran; attorney for special requests: Lance E. Olsen; filed: May 26; assets: yes; type: voluntary; nature of business: other; nature of debt: business; type of debtor: individual
Snohomish County tax liens Tax liens are gathered from online public records filed with the Snohomish County Auditorâ€™s Office. These federal and state liens were filed between May 1-31.
Federal tax lien 201605020216: May 2; Northwest Professional Residential and Commercial Construction Inc., PO Box 1017, Lake Stevens 201605020217: May 2; SCP Enterprises Inc., 1429 Ave. D515, Snohomish 201605020218: May 2; Menger, Charlyne, 1531 Rainier Ave., Everett 201605020219: May 2; Graham, Kevin L., 2314 199th Drive SE, Lake Stevens 201605020220: May 2; Oh, Chi Suk, 14310 Ash Way, Apt. A, Lynnwood 201605020221: May 2; Brown, Steven P., PO Box 357, Snohomish 201605020222: May 2; Conniff, Gerald P., 14911 Chainlake Road, M 336, Monroe 201605020223: May 2; Funderburke, Kimberly D. (+), 27216 12th Ave. NW, Stanwood 201605020224: May 2; Fahimi Construction, PO Box 58, Duvall 201605020225: May 2; Drexler, Terry J., 21010 120th Drive SE, Snohomish 201605020226: May 2; Martin, Douglas D., PO Box 926, Bothell 201605020227: May 2; Azbill, Marshall, 15229 78th Ave. SE, Snohomish 201605020228: May 2; Baar, Trevor A., PO Box 1276, Lake Stevens 201605030241: May 3; Sessa, Maureen D. (+), 418 201st Place SW, Lynnwood 201605030242: May 3; Bontrager, Winston, PO Box 12003, Everett 201605030243: May 3; Turk, Charlotte (+), 2902 139th Ave. SE, Snohomish 201605030244: May 3; Mukilteo Sports Lodge (+), 2720 Rucker Ave., Suite 101 Everett 201605030245: May 3; Dargey, T. L. Agassi (+), PO Box 13261 Everett 201605030276: May 3; Second 2nd Chance Human Resource Center (+), PO Box 55879, Shoreline 201605030277: May 3; Ching, Douglas J., 15035 175th Ave. SE, Monroe 201605030278: May 3; Osborn-Day, Rebecca A., 2010 1/2 Madison St., Everett 201605030279: May 3; Hall, Richard L., 15914 44th Ave. W, Apt O-310, Lynnwood 201605030280: May 3; Skaar, Anne (+), 9811 240th St. SW, Edmonds 201605030281: May 3; Dallman, Deborah, 3807 188th St. SW, Lynnwood 201605100094: May 10; Puget Sound Investment Strategies Inc., 601 State Ave., Marysville 201605100095: May 10; Caton, Judy A., 1429 Ave. D, Snohomish
201605100096: May 10; Tiacharoenwat, Sudarat, 10426 13th Ave. W, Everett 201605100097: May 10; Oxenhandler, Virgina K. (+), 15109 222nd Drive SE, Monroe 201605100098: May 10; Lee, In Suk (+), 3316 156th Place SE, Mill Creek 201605100236: May 10; Greenwood Lodge (+), 2720 Rucker Ave., Suite 101, Everett 201605100237: May 10; Frazier, Dale (+), 3434 238th St. SW, Brier 201605100238: May 10; Pacific Security Engineering (+), PO Box 5156, Lynnwood 201605100239: May 10; Jang, Myung D. (+), 19031 33rd Ave. W, Suite 211, Lynnwood 201605100240: May 10; Smith, Derek J., 1429 Ave. D, PMB 374, Snohomish 201605100241: May 10; Schneider, Sheri A., 3333 164th St. SW, Apt 1213, Lynnwood 201605100242: May 10; Jones, Louis L. Jr., 22717 78th Ave. W, Edmonds 201605100243: May 10; Bryant, Jonathan W., PO Box 3142, Arlington 201605100244: May 10; Ruiz & Associates Inc., 1120 112th St. SW, Everett 201605100245: May 10; MDH Riveras Inc., 17267 149th Place SE, Monroe 201605100246: May 10; Juniors Construction (+), PO Box 306, Lynnwood 201605100247: May 10; Vega, Juana (+), 16675 White Mountain Road SE, Monroe 201605100248: May 10; Whittier, Tom J. Jr., 12015 Marine Drive, Apt 270, Tulalip 201605100249: May 10; Frederickson, Ernest H., 14031 Highway 9, Snohomish 201605100250: May 10; Guzman, Jamie, 5805 Sixth Ave. NW, Tualip 201605100251: May 10; Ocana, Aleta (+), 9606 11th Place SE, Lake Stevens 201605100252: May 10; Kinkead, Guy (+), 19011 62nd Ave. NE, Unit 2, Arlington 201605100253: May 10; Twyford, Terrence S., 907 185th St. SW, Lynnwood 201605100254: May 10; Monroe, Ramona L., 11411 44th Drive NE, B, Marysville 201605170405: May 17; Atkinson, Mark, 10118 169th Drive NE, Granite Falls 201605170406: May 17; Rose, Carole S. (+), 10014 149th St. SE, Snohomish 201605170407: May 17; Gebrehiwot, Michael N., 4602 135th Place SE, Unit 2, Mill Creek 201605170408: May 17; Mukilteo Sports Lodge (+), 2720 Rucker Ave., Suite 101, Msc 70580, Everett 201605170409: May 17; Carreon, Edgar I. (+), 2707 Bickford Ave., Suite F, Snohomish 201605170410: May 17; Cabuag, Johanna (+), PO Box 14693, Mill Creek 201605170411: May 17; Cement Distributors Inc., 17051 59th Ave. NE, Arlington 201605170427: May 17; Ahn, Chong (+), 20225 Bothell Everett Highway, Apt 613, Bothell 201605170428: May 17; Guthrie, Susan M., 20601 76th Ave. SE, Snohomish 201605170429: May 17; Olson, Gary D. Sr., 219 135th St. SE, Everett 201605170430: May 17; Ponsford, Owen, Estate Of, 23628 76th Ave. W, Edmonds 201605170431: May 17; Fryberg, Tina M. (+), 1511 Sdodohobc Place, Tulalip 201605170432: May 17; Cooper, Michael N. Jr., 6204 170th Place SW, Lynnwood 201605170433: May 17; Benham, Scott, 4329 84th St. NE, Marysville 201605170434: May 17; Petropoulos, George, PO Box 819, Lake Stevens 201605170435: May 17; Campbell, Lisa D. (+), 11324 26th Place SE, Everett 201605170436: May 17; Transmission NW & Auto Repair, 22730 Highway 99, Edmonds 201605170437: May 17; Shim, Kyung Ok (+), 22 151st Place SE, Lynnwood 201605170438: May 17; Minor, Steven K., 4824 Harbor Lane, Everett 201605250093: May 25; Bussian, Lisa, 17813 W Country Club Drive, Arlington 201605250094: May 25; Charneski, Michael L., 16212 Bothell Everett Highway, Suite F246, Mill Creek 201605250095: May 25; Avellaneda, Karen C., 2226 202nd Place SW, Lynnwood
201605250096: May 25; Cunnane, Thomas J., 3409 McDougall Ave., Apt 204, Everett 201605250097: May 25; Kovach, Pamela P., PO Box 1406, Marysville 201605250098: May 25; Hutton, Laura B., 4518 113th Ave. SE, Snohomish 201605250099: May 25; Johnson, Daniel T., PO Box 1546, Seeley Lake 201605250100: May 25; Sign-A-Rama (+), 221 SE Everett Mall Way, Suite M9, Everett 201605250101: May 25; MTN Inc., PO Box 12670, Mill Creek 201605250102: May 25; A Kind Heart Inc., 18506 64th Ave. W, Lynnwood
Partial release of federal tax lien 201605100277: May 10; Kovachevich, Dorothy J., 25715 212th Ave. SE, Maple Valley
Release of federal tax lien 201605020229: May 2; Cyr, Diane M. (+), 5714 189th St. SE, Bothell 201605020233: May 2; Cyr, Diane M. (+), 5714 189th St. SE, Bothell 201605030246: May 3; Ferriera, Maria E. (+), 300 Admiral Way, Suite 202, Edmonds 201605030282: May 3; Casey, Nathan, 230 Paradise Parkway, Granite Falls 201605030283: May 3; Foote, Abby M. (+), 111017 55th Ave. W, Mukilteo 201605030284: May 3; Martinson, Dale E., 9504 Edmonds Way, Apt 217, Edmonds 201605030285: May 3; O, Howard Y., 3524 177th Place SW, Lynnwood 201605030286: May 3; Casey, Nathan, 13827 76th Ave. NW, Stanwood 201605030287: May 3; Norwood, Brandon R., 10869 N Scottsdale Road, Scottsdale, Arizona 201605030288: May 3; Kirk, Donna J., 7802 87th St. NE, Marysville 201605030289: May 3; Cordell, Naomi, 16715 130th St. NE, Arlington 201605030290: May 3; Wade, Loren F., 16106 54th Place W, Edmonds 201605030291: May 3; Anderson, Chris M., 20330 Filbert Road, Bothell 201605100099: May 10; Bacon, Kenneth J., 14719 Main St., Apt F103, Mill Creek 201605100255: May 10; Shauger, Gina S. (+), 6809 77th Ave. NE, Marysville 201605100256: May 10; Hardebeck, Jodi L., 14221 77th Ave. NE, Arlington 201605100257: May 10; Enviro-Tech Diving Inc., PO Box 490, Stanwood 201605100258: May 10; Rogers, Courtney N. (+), 207 79th Place SW, Everett 201605100259: May 10; Cozart, Anjanette M. Jr. (+), 9916 39th Drive NE, Marysville 201605100260: May 10; TVV International Inc., 11128 Algonquin Road, Woodway 201605100261: May 10; Norpoint Shooting Center, 8620a 172nd St. NE, Arlington 201605100262: May 10; Burt, Darren (+), 4502 148th St. NE, Marysville 201605100263: May 10; Mukilteo Sports Lodge (+), 2720 Rucker Ave., Suite 101, Msc 70580, Everett 201605100264: May 10; Axiom (+), PO Box 1309, Issaquah 201605100265: May 10; Stokes, Stacy Douglas, PO Box 884, Stanwood 201605100266: May 10; Paro, Daniel T., 16221 Dogwood Lane, Arlington 201605100267: May 10; Fischer, Tonya, 11723 25th St. SE, Everett 201605100268: May 10; Markham, Tambre M. (+), 812 Wetmore Ave., Everett 201605100269: May 10; Dugas, Alfred P. Jr., 1030 Ttereve Drive, Apt 302, Everett 201605100270: May 10; Dill, Drena B. (+), PO Box 1442, Sultan 201605100271: May 10; Ristow, Walter G., 2327 186th Place SE, Bothell 201605100272: May 10; Vanderyacht, Jill, PO Box 5155, Lynnwood 201605100273: May 10; Brooks, Sandy J. (+), 5511 127th Place SE, Snohomish 201605100274: May 10; Alfaro, Juan Salgado, 4025 167th Street NE, A, Arlington
201605100275: May 10; Port Gardner Plumbing (+), PO Box 12164, Everett 201605100276: May 10; Miller, Jeff R., 14717 27th Ave. NW, Marysville 201605170412: May 17; Bickerton, Ginger L., 627 145th Place SW, Lynnwood 201605170413: May 17; Potts, Harry T., 11107 46th Ave. NE, Marysville 201605170414: May 17; Walkley, Fran (+), PO Box 1085, Everett 201605170439: May 17; Smay, Michael K., 20611 Bothell Everett Highway, E194, Bothell 201605170440: May 17; Sherman, Donnie Shane, 162 Charles St., Monroe 201605170441: May 17; Cook, Renita J. (+), 14425 Fourth Ave. W, Lynnwood 201605170442: May 17; Baar, Trevor A, PO Box 1276, Lake Stevens 201605170443: May 17; Tice, Steven E., PO Box 832, Monroe 201605170444: May 17; Sherman, Donnie S. Jr., 162 Charles St., Monroe 201605170445: May 17; Tice, Steven E., PO Box 832, Monroe 201605170446: May 17; Hartson, Robert P., PO Box 2220, Snohomish 201605170447: May 17; Dudley, Kimberly A. (+), PO Box 594, Gold Bar 201605170448: May 17; Korzynek, Mirjana M. (+), 3116 104th Place SE, Everett 201605170449: May 17; Absolute Graphix Inc., 19231 36th Ave. W, Suite F, Lynnwood 201605170450: May 17; Williams, Dana E., 210 202nd St. SE, Bothell 201605170451: May 17; York Building Services (+), 16521 13th Ave. W, Suite 101, Lynnwood 201605170452: May 17; Minette, Cynthia M. (+), 17322 107th Ave. SE, Snohomish 201605170453: May 17; York Building Services (+), 16521 13th Ave. W, Suite 101 201605170454: May 17; Emard, Phil P., 7703 200th St. SW, Edmonds 201605170455: May 17; Flood, Linda C., 119 Magnolia Ave., Everett 201605250103: May 25; Myers, Mary L., 10404 8th Place SE, Lake Stevens 201605250104: May 25; Widdis, Charles Jr. (+), PO Box 12604, Mill Creek 201605250105: May 25; Myers, Mary L., 10404 Eighth Place SE, Lake Stevens 201605250106: May 25; Monroe, Ramona L., 1509 Sixth St., PMB 218, Marysville 201605250107: May 25; Silimon, Da Mar K, 13624 56th Ave. SE, Everett 201605250108: May 25; Salonen, Robert L., 22906 Edmonds Way, Apt. 6, Edmonds 201605250109: May 25; Coleman, Rosemarie C., 15520 Mill Creek Blvd., Apt C203, Mill Creek 201605250110: May 25; Proffitt, Judith L., 23000 55th Ave. W, Apt. 207, Mountlake Terrace 201605250111: May 25; Stach, Hans D., PO Box 1762, Stanwood 201605250112: May 25; Goings, Stephanie, 3607 W Mukilteo Blvd., Everett 201605250113: May 25; Proffitt, Judith L., 23000 55th Ave. W, Apt. 207, Mountlake Terrace 201605250114: May 25; Steelcor Industries Inc., 6202 214th St. SW, Mountlake Terrace 201605250115: May 25; CM Ambrose Co., 2919 Fulton St., Everett 201605060472: May 6; Miller, Craig D., 606 Warren Ave., Everett 201605110459: May 11; Walkley, Shelly (+), 309 W Mukilteo Blvd., Everett
Withdrawal of federal tax lien after release 201605100100: May 10; Cyr, Diane M. (+), 5714 189th St. SE, Bothell 201605170459: May 17; Cyr, Diane M. (+), 5714 189th St. SE, Bothell
Withdrawal of federal tax lien 201605170456: May 17; White, Sarah C. (+), 22405 42nd Place W, Mountlake Terrace
THE HERALD BUSINESS JOURNAL 23
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24 THE HERALD BUSINESS JOURNAL
BUSINESS LICENSES PLEASE NOTE: Business license information is obtained monthly from the Washington Secretary of State’s Office through the paid commercial services of InfoUSA. For the complete list, please go to www.theheraldbusinessjournal.com.
Arlington Ashe & Alder: 29509 407th Ave. NE, Arlington, WA 98223-9211; Nonclassified Atown Drywall: 216 E Highland Drive, Arlington, WA 98223-1518; Contractors Balance With Bowenwork: 12718 Terrace Falls Road, Arlington, WA 98223-7957 Botanical Arts: 30121 Hillis Road, Arlington, WA 98223-9386; 360-403-8931; Arts Organizations and Information Covert Technologies: 6624 206th Place NE, No. A, Arlington, WA 98223-4232Diesel Outfitters: 19018 Smokey Point Blvd., No. 4, Arlington, WA 98223-4263; 360-386-9608; Diesel Fuel (Wholesale) Hampton Painting-Drywall Repair: 11119 Highway 9 NE, No. A, Arlington, WA 982237570; Painters Judgment Recovery Co.: 21916 123rd Ave. NE, Arlington, WA 98223; 360-363-4394; Collection Agencies KB Acupuncture Inc.: 20218 77th Ave. NE, Arlington, WA 98223-4602; 360-322-7221; Acupuncture Man Bling Customs: 7922 172nd Place NE, Arlington, WA 98223-9820; Nonclassified Moka Coffee Bar: 17508 Russian Road, Arlington, WA 98223-7121; Coffee Shops Open Crumb Bakery: 14621 Highway 530 NE, Arlington, WA 98223-5357; Bakers-Retail Podworks: 19705 60th Ave. NE, Arlington, WA 98223-4769; 360-322-7617; Nonclassified Sleep Advantage: 16410 Smokey Point Blvd., Arlington, WA 98223-8415; 360-3226934; Nonclassified Solectric: 810 200th St. NE, Arlington, WA 98223-5541; Nonclassified Taylor Dodd Licensed Massage Practioner: 16404 Smokey Point Blvd., No. 307, Arlington, WA 98223-8417; Physicians and Surgeons Trenchless Construction Services: PO Box 3372, Arlington, WA 98223-3372; Construction Tye Dye Mafia: 6206 188th St. NE, Arlington, WA 98223-7801; Nonclassified Vanderyacht Propane: 6404 188th St. NE, Arlington, WA 98223; 360-435-4800; Propane Gas Westar Medical Products Inc.: 18930 59th Ave. NE, Arlington, WA 98223-8763; 360-4356214; Physicians and Surgeons Equipment and Supplies-Wholesale Zombie Tinder: 20611 67th Ave. NE, Arlington, WA 98223-4239; 360-548-3132; Cigar Cigarette and Tobacco Dealers-Retail
Everett A Droit: 13009 Eighth Ave. W, No. C202, Everett, WA 98204-6346; Nonclassified AJ Paul Photography: 5204 144th St. SE, Everett, WA 98208-8972; Photography All Your Favorites: 9825 18th Ave. W, No. D4, Everett, WA 98204-2104; Nonclassified Allover Shipping: 11014 19th Ave. SE, No. 8, PMB 206, Everett, WA 98208-5121; Shipping Agents All-Ways Heating & Air: 2403 W Casino Road, Everett, WA 98204-1417; 425-353-9075; Heating Contractors Amigo’s Painting: Care Of Proempresa, 2120 Br, Everett, WA 98201; Painters Anh Dao Nails Salon: 10529 Washington Way, Everett, WA 98204-9208; Manicuring At Large Brewing: 2730 W Marine View Drive, Everett, WA 98201-3421; 425-322-5915; Brewers (Manufacturers) Black Thorn Body Art: 2507 Broadway, No. A, Everett, WA 98201-3020; Tattooing Blue Fire Ceramics: 1714 18th St., No. B, Everett, WA 98201-2267; Ceramic Equipment and Supplies Buenos Diaz Cafe: 213 Capri Place, Everett, WA 98203-3437; Restaurants Casino Road Teriyaki & Burger: 510 W Casino Road, Everett, WA 98204-1626 City Construction: 12414 Highway 99, No.
227, Everett, WA 98204-5544; 425-353-9099; Construction Contemporary Cabinets: 12310 Highway 99, Everett, WA 98204-8518; 425-404-3885; Cabinets Crawford Woodcraft: 3419 126th Place SE, Everett, WA 98208-5606; Wood Products Custom Pacific Homes Concrete: 731 117th Place SW, Everett, WA 98204-4835; Concrete Contractors D Alliance Organics: 1901 Merrill Creek Parkway, No. R308, Everett, WA 98203-5893; Organic Foods and Services DVP Construction: 4728 118th Place SE, Everett, WA 98208-9196; Construction Delightful Designs: 1616 Hewitt Ave., Everett, WA 98201-3594; 425-258-9236 Diakonia Inc.: 1812 Hewitt Ave., Everett, WA 98201-5817; 425-512-9271; Nonclassified Elskan Pet Care: 30 E Beech St., Everett, WA 98203-4343; Pet Services Emerald Grow WA Corp: 11802 13th Place W, Everett, WA 98204-4870; Nonclassified Faces By Mary Anna: 2610 Colby Ave., Everett, WA 98201-6305; 425-610-3712 H&N Painting and Services: 3204 96th Place SE, Everett, WA 98208-2949; Painters Hippie Hifi: 11124 29th Drive SE, Everett, WA 98208-5228; Nonclassified House Of Color: 2729 Colby Ave., Everett, WA 98201-3510; 425-322-5892; Nonclassified Jimmy John’s: 2602 Broadway, Everett, WA 98201-3045; 425-258-6132; Restaurants Keepin’ It Clean: 12403 Fourth Ave. W, No. 1303, Everett, WA 98204-5714; Janitor Service Monte Cristo Ballroom: 2932 Colby Ave., Everett, WA 98201-4011; 425-212-2220; Ballrooms Northwest Cellular Los Reyes: 9629 Evergreen Way, Everett, WA 98204-7198; 425-2129077; Cellular Telephones (Services) Premier Seafood Inc.: 1014 Hoyt Ave., Everett, WA 98201-1528; Seafood-Retail Prestige Notaries: PO Box 3670, Everett, WA 98213-8670; Notaries-Public Quality Household Goods: 1618 Broadway, Everett, WA 98201-1724; 425-212-9724 Ries Realty: 8808 Monte Cristo Drive, Everett, WA 98208-2248; Real Estate Management Sams Cats & Dogs Naturally: 11033 Seventh Ave. SE, Everett, WA 98208-4022; 425-353-9076; Pet Services Sunrise Services: 4717 W Glenhaven Drive, Everett, WA 98203-1736; 425-257-9787Translator: 11030 Meridian Ave. S, Everett, WA 98208-8206; Translators and Interpreters VJ Nails & Spa: 10706 27th Drive SE, Everett, WA 98208-4445; Manicuring Washington Credit Kings: 7428 Evergreen Way, Everett, WA 98203-5664; 425-322-4449; Credit Unions Washington Technology Institute: 13027 Bothell Everett Highway, No. C, Everett, WA 98208-7226; Associations Weston Group Properties: 1926 Highland Ave., Everett, WA 98201-2628; Real Estate
Ottoman: 11211 S Lake Stevens Road, Lake Stevens, WA 98258-9406; Nonclassified Premiere Studios NW: 3303 Lake Drive, Lake Stevens, WA 98258-8773; Nonclassified
Marysville B&C Thriftique: 5019 126th St. NE, Marysville, WA 98271-9062; Thrift Shops Bigfoot Pastrami: 7207 78th St. NE, No. 1962, Marysville, WA 98270-7859; Restaurants Cannabis Plus: 11104 87th Ave. NE, Marysville, WA 98271-7614; Marijuana Dispensary HRB Tax Group: 1709 Grove St., Marysville, WA 98270-4327; 360-652-9912; Tax Return Preparation and Filing Health Benefits WA Corp.: 3621 143rd Place NW, No. 200, Marysville, WA 982717919; Employee Benefit Consultants Meemees Local Produce: 2731 176th St. NE, Marysville, WA 98271-4784; Fruits and Vegetables and Produce-Retail Smoke Town: 1102 State Ave., Marysville, WA 98270-4243; 360-657-0830; Nonclassified Walker Motor Works: 9430 State Ave., Marysville, WA 98270-2206; Nonclassified
Mill Creek Autozone: 2110 132nd St. SE, Mill Creek, WA 98012-4686; 425-585-9006; Automobile Parts and Supplies-Retail-New Best Locksmiths: 14322 N Creek Drive, No. 1526, Mill Creek, WA 98012-5359; Locksmiths Daniel Masonry: 13401 Dumas Road, No. A101, Mill Creek, WA 98012-5502; Masonry Kwality Electric: 3311 141st St. SE, Mill Creek, WA 98012-4679; Electric Contractors Passport Travel & Tours: 16300 Mill Creek Blvd., Mill Creek, WA 98012-1737; 425-7427783; Travel Agencies and Bureaus
Monroe 3P Logistx: 17404 147th St. SE, No. C, Monroe, WA 98272-2714; Logistics AAA Well Inspections: 14911 Chain Lake Road, No. M305, Monroe, WA 98272-8766; Inspection Service Bright Cleaning Service: 10621 Woods Lake Road, Monroe, WA 98272-9588; Janitor Service Gumshoe Health: 101 E Main St., No. 201, Monroe, WA 98272-1519; Health Services Hallerman Auction and Entertainment: 19510 208th Ave. SE, Monroe, WA 982728019; Auctioneers Junk In The Ol Trunk: 102 E Main St., No. 1, Monroe, WA 98272-1500; Junk-Dealers Nitro Honey: 102 E Main St., Monroe, WA 98272-1529; 360-794-7547; Honey (Wholesale) Oswaldo R Flooring: 19480 U.S. 2, No. C, Monroe, WA 98272-1580; Floors-Contractors and Builders Willows Landing: 15900 175th Drive SE, Monroe, WA 98272-1947; Nonclassified
Almgren Contractors: 2312 114th Drive NE, Lake Stevens, WA 98258-9195; General Contractors Bravoz Construction: 32 91st SW, Lake Stevens, WA 98258; Construction Companies Cross Fit Rivertown: 9623 32nd St. SE, Lake Stevens, WA 98258-5779; 425-374-7355; Health Clubs Studios and Gymnasiums Diamond Tree: 2524 N Machias Road, Lake Stevens, WA 98258; 425-349-0825; Tree Service Embrace Hope Counseling: 9623 32nd St. SE, Lake Stevens, WA 98258-5779; Counseling Evergreen Clinical Hypnotherapy: PO Box 1536, Lake Stevens, WA 98258-1536; Hypnotherapy I Like It Hot Pepper Farm-Lake: 8110 123rd Ave. NE, Lake Stevens, WA 98258-9051; Farms Natural & Special Soaps By Kathy: 16410 84th St. NE No. 422, Lake Stevens, WA 982589060; Soaps and Detergents-Manufacturers New Hope Transportation: 9233 15th St. NE, Lake Stevens, WA 98258-8505; Transportation
Chef Justina Catering: 22306 36th Ave. W, Mountlake Terrace, WA 98043-4264; Caterers Chiropractors and Chiro Services: 21203 52nd Ave. W, Mountlake Terrace, WA 980436111; Chiropractors Hair Designs By Maggie: 23204 51st Ave. W, Mountlake Terrace, WA 98043-4837; Beauty Salons Lovelace Construction Services: 22102 54th Ave. W, Mountlake Terrace, WA 980433246; Construction Companies Plumbing Drain Sewer Cleaning: 21203 52nd Ave. W, Mountlake Terrace, WA 980436111; Plumbing Contractors Universal Auto Sales: 21818 66th Ave. W, No. 13, Mountlake Terrace, WA 98043-2170; 425-287-4903; Automobile Dealers-Used Cars
Mukilteo Custom Evaluation Services Inc.: 701 Sixth St., Mukilteo, WA 98275-1561; Nonclassified Evolving Nutrition: 9800 Harbour Place, No. 208, Mukilteo, WA 98275-4749; Nutritionists
MM Pro Builders: PO Box 1023, Mukilteo, WA 98275-1023; Building Contractors Next Bluechip Corp: 604 Marine View Place, Mukilteo, WA 98275-2245 Only For You: 8619 53rd Place W, Mukilteo, WA 98275-3139; Nonclassified Picnic Mukilteo: 6022 88th St. SW, Mukilteo, WA 98275-3310; Nonclassified TD Industrial Supply: 4403 Russell Road, Mukilteo, WA 98275-5423; Miscellaneous Industrial Supplies (Wholesale) Waratah Investments: 11112 56th Place W, Mukilteo, WA 98275-4806; Investments Washington Soap Co.: 785 16th Place, Mukilteo, WA 98275-2283; 425-374-3211; Soaps and Detergents-Manufacturers
Snohomish Blue Antique: PO Box 1402, Snohomish, WA 98291-1402; Antiques-Dealers Business End Armory: 18122 Highway 9 SE, Snohomish, WA 98296-5384; 360-6688004; Business Services Camp Valley: 7710 197th St. SE, Snohomish, WA 98296-7941; Camps Capital Construction Add: 1115 145th Ave. SE, Snohomish, WA 98290-5621; Construction Charlotte Maulsby Inc.: 1311 SW Lake Roesiger Road, Snohomish, WA 98290-7511 Commercial Property Maintenance: 1509 Bonneville Ave., No. A, Snohomish, WA 98290-1700; 360-863-6705; Contractors Deborah Nessim PLLC: 19319 Yew Way, Snohomish, WA 98296-8178; Nonclassified Elbow Chiropractic Physicians: 102 Ave. D, Snohomish, WA 98290-2767; Chiropractors Full Steam Learning: 21311 E Lost Lake Road, Snohomish, WA 98296-6184; Education Centers Illuminating Stacey: 19010 114th Place SE, Snohomish, WA 98290-8661; Nonclassified Integrity Custom Builders: 19103 114th Place SE, Snohomish, WA 98290-8661; Building Contractors Malone Systems Inc.: PO Box 2350, Snohomish, WA 98291-2350; Nonclassified Metro Construction Corp.: 148 Maple Ave., No. A, Snohomish, WA 98290-2938; Construction Companies Rincon Vacation: 13701 233rd St. SE, Snohomish, WA 98296-7846; Travel Agencies Samiam Petroleum: Snohomish WA 98290 202 Ave., Snohomish, WA 98290; Petroleum Products-Manufacturers Sanderson’s Services: 17106 Sixth St. SE, Snohomish, WA 98290-9626; Services Soft Shotz: 108 Ave. A, Snohomish, WA 98290-2926; Nonclassified Triangle Distributors Inc.: 20124 Broadway Ave., No. B101, Snohomish, WA 98296-7993; Distribution Services Washers and Dryers Service and Repair: 127 Cedar Ave., Snohomish, WA 98290-2955
Stanwood Alpha Bravo Construction: PO Box 425, Stanwood, WA 98292-0425; Construction Connect Hearing: 7359 267th St. NW, Stanwood, WA 98292-4100; 360-629-8036; Hearing Aids Gofer Tote Inc.: 26122 31st Ave. NW, Stanwood, WA 98292-4915; Nonclassified Home Town Appliance: 9730 Highway 532, Stanwood, WA 98292-8054; 360-629-9694; Appliances-Household-Major-Dealers Ladders and Laces: 8723 271st St. NW, Stanwood, WA 98292-5995; 360-572-4279 M&E Masonry and Landscaping Inc.: 2331 254th St. NW, Stanwood, WA 98292-9206; Masonry Contractors MC Contractors: 26020 72nd Ave. NW, Stanwood, WA 98292-9315; Contractors Oak Homes Inc.: 15521 Sturtevant Ave., Stanwood, WA 98292-7951; Nonclassified Polska Kuchnia: 8620 271st St. NW, Stanwood, WA 98292; 206-355-2893; Restaurants Purified Plumbing: 15026 W Lake Goodwin Road, Stanwood, WA 98292-7700; Plumbing Rustic Inspiration: 8717 271st St. NW, Stanwood, WA 98292; 360-631-5876 Snyder Stables-Performance: 17820 52nd Ave. NW, Stanwood, WA 98292-8902; Stables
Port of EVERETT
THE HERALD BUSINESS JOURNAL 25
CALENDAR Farmers' Market
Sunday's @ new Boxcar Park July 4
Creating Economic Opportunities
City's 4th of July Festival
Opening Day of Jetty Island Days
Port Commission Mtg
Weyerhaeuser Building Move
July 15, 22, 29
Outdoor Movies; Boxcar Park Port of EVERETT
The Port of Everett demonstrated its high financial standards once more by achieving another clean audit, marking the 19th consecutive year with no findings reported by the State Auditor’s office.
The Port of Everett is preparing to issue its environmental review documents for its South Terminal Modernization Phase II project. This project is critical to support the new airplane program.
Jetty Island Days opens July 5! This year the City of Everett is changing their rain out policy from 8 a.m. to noon.
The Port Commission has authorized staff to bid both the in-water and upland construction contracts for Fisherman's Harbor. Work should begin in fall 2016. Commissioners Troy McClelland/District 1 Tom Stiger/District 2 Glen Bachman/District 3
Historic Weyerhaeuser Building Set to Move July
n the early morning hours of July 14, the Port of Everett and its contractor, Everett-based Nickel Bros, will relocate the historic Weyerhaeuser Building from its current location in the Port’s South Marina along West Marine View Drive to the Port’s new Boxcar Park in the Central Marina at water’s edge. The Port has been working with Nickel Bros to prepare for the move, including work at both the current and future sites, as well as relocation route preparation.
Stay up to date! portofeverett.com/ historyonthemove
This is the third move for the iconic building, which is listed on the National Register of Historic Places. The Weyerhaeuser Building will be the centerpiece of the Port's new Boxcar Park, a key public space in the new Waterfront Place Central development.
Watch It Happen! Catch history in the making as the Weyerhaeuser Building makes the trip to Boxcar Park. Join us for a viewing event at Grand Avenue Park on July 13/14 (event begins at 11:45 p.m.; move to begin at 12:01 a.m.). Coffee will be provided. CEO/Executive Director Les Reardanz
Information you would like to see in next month’s update? Please e-mail email@example.com Stay Connected!
The iconic Weyerhaeuser Building will transform Boxcar Park into the featured attraction at the Port’s new Waterfront Place Central development.
Visit www.portofeverett.com ‘Like’ us on Facebook; ‘Follow’ us on Twitter and Instagram
26 THE HERALD BUSINESS JOURNAL
SNOHOMISH COUNTY ECONOMIC DATA Pending sales, residential real estate
Closed sales, residential real estate
Unemployment rate, percent
Continued unemployment claims
Professional services employment
Local sales tax distributions, Snohomish County and incorporated cities
Consumer price index, King and Snohomish counties
Boeing stock price
PUD retail electricity use, kilowatt hours
Snohomish County PUD connections
New vehicle registrations
Average gas price (regular, unleaded
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Matt Smith Trident Marine Enthusiastic dad Geoduck farmer Aspiring guitarist
Each and every one of us is an original. Shaped by unique inuences that make us who we are today. Here at Heritage Bank, we think differences can build a better bank, too. That’s why we share the best ideas from across all of our branches and local communities with one goal in mind: to serve our customers better every day. By sharing our strengths, we’re able to offer customers like Matt Smith—and you—more than a community bank. But rather, a community oƒ banks.
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