Choose Washington 2014

businessclimate.
com/washington
Birthplace of aviation production writes the next chapter in flight World health benefits from Washingtons work
Global Positioning
Ports make state an export powerhouse
SPONsORED bY THE WAsHINGtON StAtE DEPARtMENt OF COMMERcE | 2014
In Federal Way, were open for business yours

Weve readied the business environment for substantial investment by streamlining permitting processes, committing millions in infrastructure improvements and redeveloping the city center. And we offer: superior location between Seattle and Tacoma, close to port facilities and Sea-Tac International Airport highly skilled and expanding workforce areas newest transit hub great recreational opportunities
Your business and our city. Its a partnership that works! To explore ways your business can partner with Federal Way, contact our economic development director at 253-835-2612 or email EcoDev@cityoffederalway.com. To find out more about living and working in Federal Way, Washington, visit www.cityoffederalway.com.
Its all within reach
CONTENTs
2014 EDITION | VOLUMe 2
21
RENEWABLE ENErGY
CLEAN AND GREEN
27
INFOrmATION AND COmmUNICATIONS TECHNOLOGY
38
MArINE TECHNOLOGY
SHIPsHAPE CONDITION
69
LIVABILITY
Washington state is a power player in the development of clean energy technology, home to more than 100 companies devoted to energy efficiency, renewable energy, pollution control and energy research
LET IT RAIN
Cloud technology nourishes the everevolving ICT sector in Washington state and helps major companies grow even bigger
Washingtons thriving marine technology industry contributes to the states economy, supporting more than 28,000 jobs, supplying hundreds of seafood companies and anchoring the $4 billion recreational boating sector
CREATIVE CLIMATE
Strong support from organizations at the local and state levels, plus dozens of cultural attractions and destinations, paint a vibrant arts scene in Washington state
BUSINESSCLIMATE.COM/WASHINGTON
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CONTENTs
ON tHE cOVER Mount Rainier rises majestically in the background as cargo ships load and unload at the Port of Seattle. Photo by Jeff Adkins.
34 15
11 OVERVIEW
30
34
ADVANCED MANUFACTUrING
12 DIscOVER 67 EcONOMIc PROFILE 74 GALLERY
48
55
TrANSpOrTATION
MATERIAL GAINs
15
Booming composites industry benefits from a robust advanced manufacturing cluster
OVER THE LONG HAUL
BUSINESS CLImATE
BUsINEss LEGENDs BORN HERE

From Amazon.com to Boeing to Nordstrom, Washington state builds brands known around the world
42
LIFE SCIENCES
A fully integrated transportation system and major ports help make Washington an export leader
ALIVE AND WELL

Washington life sciences organizations work to impact health on a global scale
63
EDUCATION
30
AErOSpACE
48
TRAINING ON TRAcK
Workforce development programs give Washington a skills advantage
A CENTURY OF INNOVATION
From its roots as the birthplace of aviation production, Washington state writes the next chapter in flight
AGrICULTUrE
ITs IN THEIR NATURE

Washingtons agriculture industry harvests new opportunities in export markets
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Online
Advanced Manufacturing Clean Energy Life Sciences
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Keep updated and informed on the latest real-time news, developments and information.
Whats on businessclimate.com/washington
The states legacy in manufacturing leads to innovation in new processes, composite materials A diverse portfolio makes the state a powerhouse in research and development of new energy technology Washington state is a pioneer in efforts to eradicate disease and improve health conditions around the world
Tablet
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Trends
Learn more about whats shaping the regions business climate.
Top Employers
Find out who the major players are in the region.
Demographics
Drill down on the numbers behind the regions powerhouse economy with a full set of statistics and data.
Top Industries
Learn more about the key industry sectors and top companies that make the region work.
Livability
Arts, culture, recreation, entertainment, education, health care and all the things that make the region an outstanding place to live.
Photo Gallery & Videos

Our award-winning photographers show you the unique faces, spaces and places in Washington.
Site Guide
Links to comprehensive data on available land and buildings.
Cool Companies
Meet more innovative, fast-growth businesses finding success.
8 || CHOOSE WASHINGTON
busin essc limat
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ning Global Positio

Ports make sta
SPON SORE
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INGTO D BY THE WASH
RTME NT N STATE DEPA
OF COMM ERCE
| 2014
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Low power rates World-class high-speed fiber Diverse recreational opportunities Welcoming business environment Commercial transportation options: truck, rail, air Excellent medical facilities Best Places to Retire ~ AARP Magazine www.ExploreNCW.com will get you almost anywhere youd like to go for more information about locating your business and life in North Central Washington. Already know where youd like to be? Contact the following regional partners directly for more information:
OKANOGAN COUNTY The Economic Alliance 509-826-5107 rholderdiefenbach@economic-alliance.com DOUGLAS COUNTY Port of Douglas County 509-884-4700 lisa@portofdouglas.org REGIONAL CONTACT North Central Washington Economic District 509-682-6907 jennifer@ncwedd.com
OVErVIEW
10 Reasons to Choose Washington

THoUGH its tUckEd in a coRnER of tHE coUntRY, its alwaYs in tHE cEntER of tHE action and at tHE HEad of tHE pack
1. Innovative: Washington is a state of firsts: First down parka, fiberglass snow skis, water skis and wave boards, as well as the kidney dialysis machine and heart defibrillator, the first espresso cart, gas station, tree farm and Cinnabons. 2. Clustered: The state offers businesses a critical mass in specific sectors aerospace, life sciences/global health, clean tech, ICT and marine technology providing opportunities for cross-collaboration, idea sharing and innovation. 3. Smart: Approximately 31.4 percent of the population has bachelor's degrees, and the state public and private colleges and universities and workforce training programs ensure a continuous supply of highly educated and skilled workers. 4. Connected: Washington's transportation network includes 75 ports, 139 airports and 3,600 miles of roadways. The state is equidistant to European and Asian markets, making it the ideal place for exporting products and services. 5. Energetic: Seventy-five percent of the state's power comes from renewable energy sources, including hydroelectric, solar and wind. Washington is one of the
lowest cost energy providers in the U.S. 6. Trendsetter: Washington helped put a cellphone in your one hand and a latte in the other, ushered in the age of affordable jet airline travel, rocked your world with the likes of Jimmy Hendrix and Kurt Cobain, and broke new ground in computing. 7. Diverse: Every creed, color, religion and ethnic group can be found within the borders of the state, creating a rich landscape of multicultural influences. 8. Breathtaking: The state has different ecosystems, from the extremely wet shores of the Pacific
to the plains-like lands of Eastern Washington, and its residents have crafted a delicate balance between progress and preservation. 9. Vibrant: You can find the quiet life, but you can also find an eclectic, energetic culture with nightlife, performing and visual arts to explore, world-class museums and galleries, and quaint communities with their own unique personalities. 10. Savvy: Washington residents are highly informed about the world, lead the way in embracing new ideas and possess a natural curiosity, passion for lifelong learning, competitive nature and desire to pursue success.
BELLINGHAM
P O RT A N G E L E S
EV E R ET T KIRKLAND BELLEVUE S E AT T L E RENTON KENT SPOKANE W E NATC H E E 90 MOSES LAKE ELLENSBURG
ABERDEEN O LY M P I A
TAC O M A
90
YA K I M A
SU N N YS I D E KENNEWICK 82 WA L L A WA L L A
VA NCOUVER
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Discover Washington
SIGNATUrE BUSINESS
FUELING NEw SOLUtIONs

Washington state is synonymous with innovation in everything from aerospace and software to e-commerce and retail. Another hallmark of its innovation culture is the ability to create solutions that help solve problems on a global scale. One example is the research facilities of BURN Design Lab on Vashon Island, where a team of designers, craftsmen and

engineers are meeting the challenge of providing cookstoves in developing nations where electricity can be scarce, fuel costs are high and open-fire cooking is common. The nonprofit company's biomass stoves are designed to cut fuel consumption and save trees, which in many countries are cut down and either burned or buried to turn them into charcoal, a highly inefficient process that also produces heavy amounts of carbon dioxide emissions.
The company designs and builds "stove in a box" factory modules that can be delivered to local producers in host nations, creating affordable stoves and new jobs in the process. Its Jiko Poa "rocket stove" being produced in Kenya, for example, features an abrasion- and thermal shock-resistant ceramic liner surrounded by precision-cut, sheet metal cladding. It uses 43 percent less fuel than an open fire. For more on BURN Design, go to www.burndesignlab.org.
FAST FACT
WHO'S HErE
THE GREAt OUtDOORs HAVE NEVER LOOKED bEttER
17%
Population gain in Washington state since 2000 (population estimate as of April 2012: 6,897,012)
Washington packs breathtaking natural features into virtually every square mile of the state. The connection between nature and the state's residents is evident in the companies that cater to outdoor adventurers. Headquartered in Kent, REI has 129 stores in 32 states that sell merchandise geared to campers, climbers, cyclers, runners, skiers, snowboarders, kayakers and canoers. In nearby Seattle, Filson makes outdoor goods and clothing, and Cascades Designs Inc. produces the self-inflating Therm-a-Rest mattress. Also in Seattle, Feathered Friends makes sleeping bags, down bedding, down garments and other products designed to keep campers, backpackers, skiers and climbers warm. For those who like to experience the outdoors downhill and at fast speeds, Melvin Manufacturing produces snowboarding, skateboarding and surfing products under the Lib Tech, GNU, Roxy and Bent Metal brands in its eco-friendly manufacturing operations in Carlsborg.
MADE HErE
TAstE tHE LOcAL FLAVOR

Sure, it is the second-largest wine exporter in the U.S. and it makes a pot of coffee or two (you may have heard of that little coffee shop Starbucks), but Washington state offers a full menu of authentic food products. In Kent, Oberto Brands, started as a family-run sausage business in Seattle in 1918, has grown into one of the nation's premier producers of jerky products. In the 1940s, Washington State University researchers created a way to preserve cheese in tins, and now the WSU Creamery in Pullman produces more than 250,000 30-ounce cans of cheese a year. Viewers of the TV show Shark Tank, in which entrepreneurs make pitches to potential investors, learned about two moms from Yelm Bev Vines-Haines and Charlotte Clary. The duo perfected a line of sugarfree hard candy using xylitol, a natural sweetener. Their Ice Chips products come in assorted flavors. Uwajimaya Asian Food & Gift Market operates the largest Asian specialty supermarket in the Pacific Northwest. The family-owned and -operated company offers Asian food, wine and gift products from its locations in Seattle, Bellevue, Renton and Beaverton.
INDUSTrY FAST FACT
LEFt tO THEIR OwN DEVIcEs

Washingtons vast and growing life sciences industry employs more than 33,500 people and supports another 51,000 jobs. The states life sciences sector includes a major medical device and technology segment that numbers nearly 250 companies. Washington is one of the top five states for concentration of device manufacturing and it has attracted a host of leading-edge companies such as Seattle-based NeuroVista, Kennewick-based Cadwell Laboratories and EKOS Corp. in Bothell.
50,000
Miles of rivers and streams in Washington and 3,200 miles of coastline
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BUSINESS CLImATE
BUsiNess LeGeNds BoRN HeRe

FRom AmaZon.com to BoEinG to NoRdstRom, WasHinGton statE bUilds bRands known aRoUnd tHE woRld
WasHinGton boasts a collEction of companiEs tHat HaVE bEEn in continUoUs opERation foR moRE tHan 100 YEaRs.
wasHinGton statEs cUltURE of innoVation Has cUltiVatEd a stRinG of HomE-GRown sUccEss stoRiEs
statE is HomE to somE of tHE woRlds most wEllknown bRands, inclUdinG AmaZon.com, StaRbUcks, MicRosoft and costco
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By Stephanie Vozza tep on an airplane, fire up your PC or order a premium cup of coffee and youre sampling some of the best of Washington state. Companies that call Washington home, many of them with histories in the state that span more than 100 years, are pioneers in everything from information technology and aerospace to life sciences and retail. The worlds largest software maker, Microsoft was founded in 1975 and is headquartered in Redmond. The worlds largest online retailer, Amazon.com was founded in 1995 in a garage in Bellevue. And Boeing, the worlds largest aerospace company, was founded in 1916 in Seattle. The state is also home to the Century Club, companies that have more than 100 years of continuous operation, some of them multigenerational family businesses and many of them known far beyond Washington.
Nordstrom: Built on Being the Best

Nordstrom opened its doors in downtown Seattle in 1901. Founder John W. Nordstrom had made $13,000 in the Klondike gold rush, and with business partner Carl Wallin, decided to open a shoe store. Focusing on extraordinary customer service, quality and value, the company soon became the biggest independent shoe chain in the country. In the early 1960s, Nordstrom added apparel and accessories. Starting with its small flagship store, the company has grown to 244 stores in 33 states and is currently run by a fourth generation of the Nordstrom family. One thing hasnt changed. The retailer still follows the philosophy of its founder: Offer the customer the best possible service, selection, quality and value. Washington is home for us, says company spokesperson Colin Johnson. Ever since our founding, when we were just a small shoe store on Fourth and Pike, customers from all across the state have been incredibly supportive of our business. Over the past 112 years, weve done our best to try and serve many different communities in Washington and, though we know we havent always gotten it right, we recognize its been our Washington customers who have contributed to us becoming one of the leading fashion specialty retailers.
Brands That Set the Bar

Globally known brands have given Washington a reputation as the home of industry-creating innovation. Membership warehouse club Costco opened its first location in 1983 in Seattle and became the first company ever to grow from zero to $3 billion in sales in less than six years. Global coffee seller Starbucks opened its doors in Seattle in 1971; today the company is the largest coffeehouse in the world, with more than 18,000 stores in 62 countries.
Powerhouse Economy
Washington state has a potent and diverse $375 billion economy that leverages its major strengths in research innovation, a highly skilled workforce, key transportation and logistics assets, low energy costs, and a business-friendly environment. Known as the epicenter of aerospace and aviation innovation, Washington also has developed major industry sectors in military and defense, clean energy technology, advanced manufacturing, marine technology, and agriculture and food production. Washington is a major exporter, sending more than $75.5 billion in goods to overseas markets in 2012, the fourth-highest among states.

Washington State GDP

$332.6 B $342.7 B $333.7 B
Source: U.S. Bureau of Economic Analysis, Current Dollar GDP
2008
2009
2010
2011
2012
sTAff PHOTOs bY Jeff Adkins
$375.7 B
$357.1 B
FOrTUNE 500 COmpANIES BASED IN WASHINGTON
Company Costco Wholesale
Location Revenue Issaquah $99.1B
Fortune 500 Rank 22 35 49 168 208 227 363
Microsoft Redmond $73.7B Amazon.com Paccar Starbucks Nordstrom Weyerhaeuser Expeditors International of Washington
Source: CNN/Fortune
Seattle $61.1B Bellevue $17.1B Seattle $13.3B Seattle $12.1B Federal Way $7.1B
Seattle
$6B
428
BUSINESSCLIMATE.COM/WASHINGTON ||
17
Ben Bridge Jewelers downtown Seattle store has been serving customers for more than 100 years.
Bartell Drugs: A Business That Innovates

Another Century Club company is Bartell Drugs, a chain of 58 locally owned drug stores operating in King, Snohomish and Pierce counties. Operated by the same family for more than 120 years, Bartell carved an important niche in the marketplace and the community a chain of pharmacies that sold products at discount prices. Bartell Drugs built its business on innovation and value, adding such features as in-store soda fountains, film developing and even a candy factory, all in an effort to meet changing customer needs and serve market demands. Only three CEOs have guided the business over the years all of them Bartells. Bartell Drugs continues to hold its own in an increasingly crowded marketplace, largely due to its superior customer service, affordable prices and deep commitment to being an active member of the community.
Ben Bridge Jeweler: A Gem of a Company

Among the oldest and largest jewelry store chains in the nation, Ben Bridge Jeweler was founded in Seattle in 1912 by watchmaker Sam Silverman. After marrying Silvermans daughter Sally in 1922, Ben Bridge joined the firm as a partner and turned the store into a full-line jewelry store. When his father-inlaw moved to California in 1927, Ben purchased Sams interest and renamed the store Ben Bridge Jeweler. Family run for five generations, today the company is managed by the founders great-grandchildren. In 2012 the American Gem Society awarded a Lifetime Achievement Award to the Bridge family in honor of the companys significant contributions to the jewelry industry. Our success is in direct proportion to the services we perform for our customers and our community, says Marc Bridge, vice president of marketing. We care deeply about people and the communities in which we live and work. The culture of Washington has affected the culture of the company. We have deep roots here, and have built long-term relationships with our customers and employees.
The culture of Washington has affected the culture of the company. We have deep roots here, and have built long-term relationships with our customers and employees.
Marc Bridge, Ben Bridge Jewelers vice president of marketing
CANDY-mAKEr
Sweet Success
Almond Roca pRopEls BRown & HalEYs candY tHat tRaVEls
If it werent for a chance meeting at church between Harry L. Brown, owner of a small confectionery store, and J.C. Haley, who worked for a spice company, you wouldnt be able to enjoy Almond Roca butter toffee. After becoming friends, the pair decided to launch a small candy-making company, Brown & Haley, in Tacoma in 1912. During World War I, the founders started sending their candy to the troops and sales flourished. After the war, the pair decided the key to their success would be innovation. In 1923, the confectioners invented Almond Roca, a log-shaped buttercrunch candy that would become their claim to fame. In 1927, they decided to seal it in the now-famous pink tin. Almond Roca became known as the candy that travels. During World War II, Brown & Haley candies were enjoyed by troops once more and the fame of Almond Roca spread far and wide. If you go to Japanese museums today and see dioramas of the 30s and 40s, youll often find a pink Almond Roca tin on the kitchen table, says Pierson Clair, CEO. the same building in which Almond Roca was invented. And true to its roots, Brown & Haley continues to innovate, adding new products to the line. To be successful, you must delight the consumer, Clair says. We do it through the color choice of our tins and through new flavors. Clair says being located in Washington has helped Brown & Haley. Being located on the Pacific Ocean allows for free trade with Canada and the additional option of easy imports and exports from the Pacific Basin, he says. Washington is a superb place to do business. Stephanie Vozza
Brown & Haley: Growth and Success
Today approximately 40 percent of the companys products are exported. The company is still headquartered in
Ahh Relocation Made Easy
Pacic County offers it all! Choose your market! Were looking for potential growth in commercial and industrial markets, R&D, food processing, and forest/wood products. ACCESS to a Collaborative Region Our cities, ports and county are ready to help jump-start your business. We offer state, regional and local incentives. ACCESS to State-of-the-Art Infrastructure We provide low-cost energy, telecommunications at 1 Mb/second or greater. ACCESS to Low Cost of Doing Business The cost of doing business here is advantageous. As of January 2011 our COLI index was 85%. ACCESS to a Distinctive Northwest Lifestyle We offer a high-quality lifestyle in a world-class natural setting and are an outdoorsmans paradise.
PACIFIC COUNTY ECONOMIC DEVELOPMENT COUNCIL

530 Commercial St. Raymond, WA 98577 360.875.9330 (north) 360.642.9330 (south) www.pacicedc.org www.tradeandindustrydev.com/Region/Washington/ pacific-county-economic-development-council-3567
RENEWABLE ENErGY
CleAN ANd GReeN

WasHinGton statE is a powER plaYER in tHE dEVElopmEnt of clEan EnERGY tEcHnoloGY
W
By Nan Bauroth
ashington state is so far out on the clean energy technology curve that Redmond-based Planetary Power is generating the juice for NASAs simulation of life on Mars. Their operation is on the big island of Hawaii and off-grid, and were providing all the power for that project, says Joe Landon, CEO of Planetary Power. The Seattle-based company develops solar and hybrid energy solutions for off-grid and remote operations, tapping such markets as oil and gas exploration, telecommunications and mining where its hybrid generators use less fuel, run longer and are
cheaper to operate. The company also sees markets for its products in remote and emerging areas, as well as natural disaster relief. Inventive clean energy technology is an established but growing industry in Washington, where more than 100 companies are focused on such endeavors as energy efficiency, renewable energy, pollution control and energy research. This rapid growth makes the nascent industry a jobs powerhouse that employs 90,000 workers. Washington is at the center of the intersection where energy and technology collide, and the synergies taking place there are helping to reduce dependence on fossil fuels and improve the environment. The state has signaled its commitment
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Pacific Northwest National Laboratory includes the Electricity Infrastructure Operations Center, a control room where software, grid data and advanced computation come together.
to clean energy by mandating that by 2020 15 percent of its electricity must come from new energy sources, including wind, tidal, biomass, biofuel and solar. The states commitment to alternative power sources, green-oriented research facilities and indigenous tech talent pool have converged to create a growing and diverse industry. Three to five years ago clean technology meant wind turbines and solar, says J. Thomas Ranken, president and CEO of the Washington Clean Technology Alliance, an industry trade association. Today that definition is broader, encompassing anything having to do with the utility of energy. A cluster of innovation is emerging in the state around storage and batteries. A storage unit the size of a container gives utilities an option to the capital costs of constructing a new generation plant to handle peak loads. Storage is really important for alternative energy, Ranken says. If you have access to stored energy, alternative sources of power become much more economically feasible.
UniEnergy has licensed PNNLs advanced battery chemistry technology to provide greater stability to the energy grid.
Premier Research Labs

Clean energy enterprise has a distinct advantage in the state thanks to prominent research centers at the University of Washington, Washington State University and Pacific Northwest National Laboratory (PNNL), operated for the Department of Energys Office of Science. Building efficiency and biofuels are also major and growing centers of clean energy innovation in the state. The University of Washington and Washington State University independently have attracted $40 million in grants related to the development of biofuels, Ranken says. PNNL, whose main campus is in Richland, employs 4,500, with an annual budget approaching $1 billion. As a top-performing lab in the national laboratory complex, PNNL is a catalyst in turning federally funded clean energy investments into breakthrough programs and technologies delivered to the market, says Kevin Kautzky, PNNL energy and environment communications manager. One example is PNNLs power grid efficiency technology, known as transactive control. Deployed at the heart of the five-state, 60,000-customer Pacific Northwest Smart Grid Demonstration Project, the technology is making the regions power system smarter and greener by monitoring the flow of electricity through the power system and calculating the cost to deliver power at different places. It has been licensed to Calico Energy Services of Bellevue. Other success stories include the licensing to Archer Daniels Midlands of a process to make bio-based propylene glycol, while Mukilteo-based
Pacific Northwest National Laboratory in Richland is a catalyst for clean energy technology research and development.
Weather Science Forecasting

The growth of alternative energy sources spawned Seattle-based 3Tier, which since 1999 has been helping wind and solar energy companies and other businesses manage the risk of weather-driven variability. We forecast energy production for utility scale wind and solar plants anywhere from five minutes ahead to 40 years ahead, says 3Tier CEO Craig Husa. The companys supercomputer cluster that runs global weather and complex modeling for clients on six continents is located at 3Tier headquarters in Seattle.
Robust Incentives
Washington backs clean energy development through meaningful incentives to encourage investment, including business and occupation tax reductions for manufacturers of solar energy systems, components or semiconductor materials; sales and tax exemptions for semiconductor gases and chemical purchases; and sales and tax credits for equipment that generates electricity using renewable energy. As the world becomes more able to take advantage of its renewable energy sources, we are a critical piece of that, and we help enable the world to better leverage its renewable energy sources, 3Tiers Husa says. Its exciting for us, and exciting for the world, so we see a great future here.
sTAff PHOTO bY Jeff Adkins
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Wind capacity by state:

#8 2,802 #6 3,153 #9 2,712 #2 5,549 #10 2,301 #5 3,314 #1 12,212
(in megawatts of installed capacity at the end of 2012)
#7 2,986
#3 5,137
#4 3,568
Source: American Wind Energy Association
Washington Clean Energy Sector
15%
States electricity mandated to come from new energy sources such as wind, biofuels and solar
75%
90,000
The states workers in the sector
= 10,000
States power produced by renewable sources
AVErAGE INDUSTrIAL pOWEr COSTS A backbone to Washingtons clean energy generation is the largest coordinated hydroelectric system in the world. Nearly 75 percent of the power in the state is generated from the rivers that flow through it, giving the state a major advantage in industrial energy costs. (cents per kilowatt hour)
100+
Companies engaged in clean energy technology in Washington
Washington: 4.07 cents Utah: 4.93 cents Wyoming: 4.98 cents Kentucky: 5.05 cents Idaho: 5.15 cents
Iowa: 5.36 cents Montana: 5.49 cents Missouri: 5.50 cents Oregon: 5.51 cents South Carolina: 5.74 cents
Source: U.S. Energy Information Administration

RENEWABLE ENErGY
In the Zone
pRoGRam pRomotEs paRtnERsHips in kEY indUstRY clUstERs
An Innovation Partnership Zone in Clallam County is exploring the coastal areas indigenous renewable energy sources in wave power, tides, ocean thermal conversion and offshore wind. Led by the Clallam County Economic Development Council, the IPZ includes participation from Pacific Northwest National Laboratory, the Port of Port Angeles and Peninsula College. This team is providing research and development, industrial recruitment, economic development and workforce education opportunities to deliver new R&D and manufacturing operations to achieve what this region needs in terms of a domestic ocean renewable energy industry, says Charlie Brandt, director of the Marine Sciences Laboratory at PNNL. The IPZ includes manufacturing space at the port, offering access for shipment of materials into the site and also export of products in the Puget Sound region or along the Pacific Rim. We are building an advanced composites center that will be housed on Port of Port Angeles property, access R&D support from private industry and provide a trained workforce in composites manufacturing through Peninsula College, says Linda Rotmark, the Clallam County EDCs executive director. The IPZ program in Washington promotes collaboration between government, research, workforce development, academic and private sector resources around specific industry clusters, such as clean energy, aerospace, global health and medical devices. Fifteen designated IPZs are in place across the state, each sited to take advantage of a regions pool of talent, resources and entrepreneurship. The Clallam County IPZ focus on composites is driven by continuing innovation around advanced materials, especially for use in the wind turbine blades necessary for offshore wind power generation in the deep Pacific. Nan Bauroth
INFOrmATION AND COmmUNICATIONS TECHNOLOGY
Let It RAiN
CloUd tEcHnoloGY noURisHEs tHE EVER-EVolVinG ICT sEctoR in WasHinGton statE
By Heather R. Johnson Washington state is quickly becoming an information and communications technology epicenter. Washington state generates an estimated $25 billion in ICT revenue annually from more than 3,000 software and mobile technology companies and 300 digital game companies, which employ more than 267,500 workers. We have a thriving ecosystem here, says Susan Sigl, CEO of the Washington Technology Industry Association (WTIA). Numerous studies consistently cite Washington as one of the leading technology centers in the United States. The gaming software industry
orthern Californias Silicon Valley may get the hype, but with its low cost of living, high quality of life, affordable clean-energy sources and lack of an individual state and corporate income tax,
ILLUsTrATION bY Elizabeth Griffin
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Bainbridge Island-based Avalara helps clients manage sales tax compliance.
ICT in Washington State
9,300
Tech firms in the state Software and mobile application technology companies in Washington
3,000
has a major impact in the state. The Electronic Software Association says Washington has the nations third-largest number of video game personnel, with 11,225 direct and indirect employees. The TechAmerica Foundation, in its Cyberstate 2013 report, ranks Washington No. 1 among states for the largest tech cluster in software publishing and also ranks it high in computer systems design and related services.
Embrace the Cloud
Once considered a hidden gem in the high-tech world, Washington state has positioned itself at the forefront Digital game of emerging technology such as cloud companies in computing, mobile application development the state and social media. Washington-based revolutionaries Amazon.com and Microsoft both placed big bets on the cloud and, not surprisingly, have become leaders in the field. Launched in 2006, Amazon Web Services, a subsidiary of Amazon.com, has grown to offer more than 30 different Private-sector jobs services to thousands of customers in from tech firms, fifthmore than 190 countries. Notable clients highest among states include reddit.com, Active.com, Ericsson, Netflix, Lionsgate, General Electric Source: TechAmerica and Pinterest, not to mention the Cyberstates 2013, U.S. government. The cloud pioneer ChooseWashington.com experienced rapid growth, particularly
300
8.2%
with the launch of Amazon Elastic Compute Cloud in 2009. That was a huge shift for us, says Mark Ryland, senior manager, global public sector at AWS. Customers could essentially run their own virtual machine with EC2. Microsofts Windows Azure includes Media, Mobile and Cloud Services, as well as Virtual Machines, Websites and Big Data. Companies ranging from NBC Sports Group to about half of Fortune 500 companies use Windows Azure. Mobile apps a key ICT market in Washington can store data and reach millions of users via the Azure cloud without the expense of a large technology infrastructure. The states prowess in e-commerce and cloud services meets at the intersection of companies such as Avalara. The Bainbridge Island-based company develops cloud-based solutions that manage sales tax reporting, collection and remittance across multiple jurisdictions for 25,000 sites and other customers. The company projects it will deliver more than 2 billion tax calculation transactions in more than 85 countries and file and remit more than $10 billion in sales, use and other tax collections in 2013. Now that Congress has taken action that could compel online retailers to collect state sales taxes, the company, founded in 2004, could see even more growth. JMP Securities named Avalara to its Hot 100: Best Privately Held Software Companies list in 2013. Seattle-based Revenue Management Systems develops sophisticated software that lets airlines track and analyze their revenue. The companys forecast and optimization technology is used by dozens of air carriers around the world. Its signature airRM solution is used by more than 30 airlines including Westjet in Canada, AirAsia in Malaysia and Ryanair in Ireland.
An App a Day
That Washington leads in mobile application development ties with its telecommunications history. Globally known companies such as T-Mobile, HTC America and Clearwire have headquarters in Washington and anchor the thriving
wireless sector. Washington is grounded in mobile expertise, Sigl says. We have a strong foundation in mobile tech and because of that, will continue to generate new companies like Glympse and BYNDL that are the current evolution of mobile innovation. Around these anchors, companies large and small develop everything from iPhone apps to more expansive products. Founded by former members of Microsoft, Seattle-based Glympse allows users to share their location via GPS or Google Maps. For the chronically late or the new teenage driver, Glympse serves as a real-time answer to the question of Where are you? Glympse thrives from a diverse labor force that ranges from recent college graduates to highly experienced workers. While quality tech talent is always hustling to catch up to a rapidly expanding ICT sector, efforts to meet the demand can be found
throughout Washington. From K-12 to the college level, efforts from organizations such as the WTIA and the tech educationfocused Technology Access Foundation promote skills development that meet the needs of the states tech companies. Washington offers highly competitive wages for tech talent, Sigl says. Of course we want these juicy jobs to go to people who live and are educated here. The TechAmerica Cyberstates 2013 report found tech workers in Washington state earned an average annual wage of $110,200, third-highest in the nation. AWS training and certification program adds another skill level. This is a great way for the local tech community to demonstrate that theyve achieved a certain level of mastery with cloud and cloud computing, says Steve Halliwell, AWS global director of education and state/local government. With numbers on the rise for both employers and employees,
Washington states ICT future looks bright. The environment is strong and getting stronger, says Glympse CEO Bryan Trussel. We have important anchor tenants such as Amazon and Microsoft, and a nice network on both the investment and creative sides, plus were only an hour and a half flight from Silicon Valley, all of which are important for doing business.
INFORMA TION AND COMMUN ICATIONS TECHNOL OGY
LET IT R AIN
Silicon Valley may get the hype, but with its low cost of living, high quality of life, affordable clean-energ y sources and lack of an individual state and corporate income tax,
ILLUSTRATION BY Elizabeth Griffin
N
By Heather
R. Johnson
CLOUD TECHN THE EVER-E OLOGY NOURISHES VOLVING ICT SECTOR IN WASHINGTO N STATE
Washingto n state is quickly becoming an information and communica tions technology epicenter. Washington state generates an estimated $25 revenue annuallybillion in ICT from more than 3,000 software and mobile technology companies and 300 digital game companies, which
orthern Californias
employ more than 267,500 workers. We have a thriving ecosystem here, says Susan the Washingto Sigl, CEO of n Technology Industry Association (WTIA). Numerous studies consistentl cite Washingto y n as one of leading technology the centers in the United States. The gaming software industry
BUSINESSCLIM ATE.COM/WAS HINGTON
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DATA CENTErS
Bytes of Knowledge
GRant CoUntY attRacts majoR tEcH plaYERs
Cloud computing and data centers go hand in hand. Cloud providers couldnt offer their seemingly limitless services without these factories, which store thousands of servers and other equipment in a controlled, secure environment. With a combination of natural advantages and smart business tactics, Grant County about halfway between Spokane and Seattle in central Washington has become a go-to data center destination thanks to its reliable and affordable power supply, abundant open space, low seismic zone and cool climate. Microsoft, Dell, Intuit, Yahoo! and Sabey Corp. are among the major tech companies that have made major data center investment there, with other companies to follow. Although Grant County offers many advantages as a data center site, its hydropower, supplied via the Columbia Rivers Priest Rapids and Wanapum dams, and wind energy from turbines near Kennewick are its No. 1 selling point. We have one of the lowest industrial electricity rates in the country, says Jonathan Smith, executive director of the Grant County Economic Development Council. ICT companies also strive to have a green footprint, which is an added plus for us. Grant County also operates one of the most advanced and extensive fiberoptic communications systems in the nation, with more than 1,000 miles of cable in the sparsely populated area. The Public Utilities District has a goal to deliver broadband throughout the county, Smith says. For a rural county, thats pretty forward thinking. The arrival of multiple data centers in Grant County has benefited the economy in myriad ways. We have an entirely new job sector, Smith says. A few years ago a skilled IT worker would have to move out of Grant County. Now they dont have to. Heather R. Johnson
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AErOSpACE
A Century of Innovation
FRom its Roots as tHE biRtHplacE of aViation pRodUction, WasHinGton wRitEs tHE nEXt cHaptER in fliGHt

Boeings Everett assembly plant builds 787 Dreamliner aircraft, which are known for their fuel efficiency and modern design.
BOEINGS EVERETT ASSEMbLY PLANT: BOEING
T
By Bill Lewis
he worlds most advanced airliner, world-changing miniature robotic aircraft and the iconic Cub light airplane all share a common birthright. They are part of a century of innovation in Washington states aerospace industry. While other states assemble airplanes, Washington has crafted an aerospace legacy like no other, beginning the day Bill Boeing built his first airplane in a tiny hangar in Lake Union and leading to the introduction of Americas first jet airliner, the Boeing 707.
That legacy continues today with the worldbeating 787 Dreamliner, built by Boeing in Everett; miniature robotic aircraft engineered by Aerovel Corp. in the Columbia Gorge; and light airplanes that harken back to aviations golden age, built by CubCrafters in Yakima. They are part of an industry that now employs more than 131,000 people at more than 1,250 companies, including 175 directly involved in aerospace manufacturing. The industry supports hundreds of other companies in a sophisticated supply chain that includes manufacturers of advanced materials and composites, machine shops, industrial machinery
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and equipment manufacturers, and producers of instrumentation and aircraft interiors.
Aerospace: Backbone of Economy

The industry has a major impact on the states economy, paying more than $10 billion each year in wages. Aerospace is the backbone of our states economy. During this latest economic downturn, aerospace has been on a hiring trend for all skill levels from machining and quality assurance to engineering, says Linda Lanham, executive director of the Aerospace Futures Alliance, an association that promotes and supports the industry in Washington state. The high-wage jobs created by aerospace-related companies in Washington support local economies and strengthen the retail, housing and business sectors of the economy. In addition to its economic impact, the aviation cluster is a powerful force driving innovation and new technologies, she says. As the home of the largest aerospace cluster in the world, our companies are on the forefront of the latest technologies, Lanham says. Through the continued development of composites and advanced materials that have reduced the weight of our aircraft and through the development of biofuels, our industry is greatly improving the efficiency of air travel. These technologies will not only benefit aviation but will have a strong benefit for other sectors like the marine and automobile manufacturing industries.
Advanced materials such as composites have uses in other industries, from bicycle manufacturing and renewable energy to health care, says Nicole Larson, associate professor of Engineering Technology at Western Washington University in Bellingham. Large wind turbines are manufactured using composite materials. The sporting and recreation industry also benefits from utilizing composite materials. Entire bicycle frames have been manufactured using carbon fiber. The prosthetics industry has also turned to composite materials, improving the quality of prosthetics. The use of composite materials in a variety of industries is expansive and will only continue to grow as manufacturing methods and materials are further developed, she says. The universitys Plastics Engineering Technology program prepares students to enter either the thermoplastic or composites industry. The programs goal is to produce entry-level engineers who have the knowledge and skills to succeed in the field of plastics-composites engineering.
Pilot Optional
It would be hard to imagine an aircraft more advanced than the robotic aircraft produced by Aerovel Corp. The companys next-generation robotic aircraft, the Flexrotor, has applications that include weather monitoring, geological survey and imaging reconnaissance. Flexrotor is designed to
Aerospace Impact: By the Numbers
Source: ChooseWashington.com
1,200
Aircraft produced annually in Washington, including 500 commercial and military jets and 700 unmanned aerial vehicles
131,000: Workers employed in the aerospace cluster as a whole, including 92,000 employees involved in direct manufacturing
1,256: Companies in Washingtons aerospace cluster

$27B: Generated by civilian aircraft, engines and parts, the largest exporting category by dollar value in Washington, accounting for $48 billion of the states total of $76.9 billion in exports in 2012
$10 billion
Annual payroll of aerospace industry in the state, equal to 7.5 percent of the states total

7.5%
175
Washington companies working directly in aerospace manufacturing
hover for launch and retrieval and to cruise in wingborne flight, with amazing range and endurance for an aircraft no bigger than a table top. Aerovel, based in White Salmon, won a Navy contract last year for further development of the Flexrotors technology. The Office of Naval Research has the idea of mounting 3D laser imaging devices on Flexrotor and using it to search for pirates and for other surveillance missions. Aerovel is staffed by a team with experience developing the Aerosonde unmanned aircraft system used for scientific and military missions and the ScanEagle, designed to loiter over trouble spots and provide information or serve as a communications relay. Aerosonde is a business unit of Textron Systems, and ScanEagle is made by Boeing. Flexrotor is designed to take the pilot out of the equation. On the opposite end of the aviation spectrum is CubCrafters, which produces light airplanes designed with one goal in mind to be fun to fly. The company produces the Sport Cub, Top Cub and the Carbon Cub. It is the only aircraft manufacturer in the country producing both standard category airplanes and Light Sport aircraft, which are produced under a quality assurance program approved by the Federal Aviation Administration. General aviation has become so expensive and complex that the number of pilots is declining. But CubCrafters is growing, says marketing manager John Whitish.
DEFENSE INDUSTrY
CubCrafters planes are constructed in a 40,000-square-foot facility in Yakima.
For many reasons, Cub flying has become increasingly popular. An ever-growing number of pilots consider flying their passion rather than a means of transportation. They want to feel the airplane, not manage systems. Cubs are the best way to enjoy that visceral sensation, and CubCrafters builds the most desirable Cubs, Whitish says. Whatever the goal to travel in the most advanced jetliner in the sky, to fly low and slow in a two-seat Cub, or to stay on the ground while the aircraft completes its mission without a pilot on board there is a very good chance that aircraft was manufactured in Washington.
A Good Defense
MilitaRY installations, contRactoRs pRoVidE Economic mUsclE
Look past the scenery, recreational opportunities and amazing quality of life in Washington state and youll find a vigorous defense industry that is helping keep America and her allies secure and the states economy strong. Washingtons long history of aerospace enterprise and the presence of major Department of Defense installations have given the state a significant defense sector. Kitsap County alone has multinational defense firms including General Dynamics, Honeywell, Lockheed Martin, Northrop Grumman, L-3 Communications and Raytheon. Not many counties with a population of 250,000 and a workforce of 100,000

are home to major operations of such global giants, says John Powers, executive director of the Kitsap Economic Development Alliance. Washington also has military installations including Joint Base Lewis-McChord, Fairchild Air Force Base, and Navy Base Kitsap, the thirdlargest Navy base of its kind in the U.S. Navy Base Kitsap employs more than 9,000 workers. They provide a stream of employees who make the region a dynamic place for business development and manufacturing in support of the defense and aerospace industries, says Tim Thomson, Port of Bremerton CEO and co-chair of the Kitsap Aerospace Defense Alliance.
More than 53 percent of the local economy comes from Department of Defense contractor work or from the military presence in Kitsap County. The shipyard is the states secondlargest manufacturer, and skills maintained there can easily be applied in other industries, Thomson says. Military installations and defense contractors make the region a great place for other industries to grow. An apprenticeship program at Olympic College provides training for workers at Navy Base Kitsap, and businesses in the region are meeting the technical supply needs of the shipyard and other installations and military contractors. Bill Lewis
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ADVANCED mANUFACTUrING
Material Gains
BoominG compositEs indUstRY bEnEfits fRom a RobUst adVancEd manUfactURinG clUstER

are being developed today in Washington state. Washingtons history in composites dates to the 1960s when Heath Tecna, an aircraft parts supplier, produced materials for defense customers. Back then, only the military could afford the technology. Now, more than 100 companies generate $3.3 billion in annual revenues as composites become an everyday part of aerospace, automotive, green energy and marine technology, as well as such recreational uses as golf clubs, bicycles and hockey sticks. Creative minds are finding new uses for composites, which are usually a combination of graphite filaments and resins. The resulting material is lighter and stronger than aluminum. For instance, Art Sauls, general manager at Composite Solutions, says the Auburn company designed and built the lavatory module for the Boeing C-17 Globemaster. The result was a lighter and stronger assembly that saves fuel for the Air Force and is safer for the aircrew.
By Gary Wollenhaupt hat sleek electric hybrid BMW zipping down the road has its roots in Washington. Oh, and so does that Boeing 787 Dreamliner soaring overhead. Both state-of-the-art vehicles rely on materials and parts produced by Washingtons advanced materials and composites cluster. The state is a global center of excellence in composites and advanced materials. The materials of tomorrow and the technology and machines to make them
Spreading Influence
Advanced materials enterprises can be found in every part of the
Flow International Corp., headquartered in Kent, develops and manufactures abrasive water jet systems.
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state. The Olympic Composites Corridor, stretching from Port Angeles to Frederickson, is working to fully develop the composites industry cluster in the region and leverage its assets, including the One-Stop-Shop at the Composites Manufacturing Center (CMC) in Port Angeles. For BMW, carbon fiber paneling is produced in a joint venture with SGL Automotive Carbon Fibers in Moses Lake. Other major manufacturers include Hexcel, formerly Heath Tecna, in Kent, which still produces parts for military and commercial aircraft; Composite Solutions
in Auburn; Toray Composites America at the Port of Tacoma; and Triumph Group in Spokane. Flow International Corp., a manufacturer of abrasive water jet systems that cut, trim and pierce carbon parts, is one of the companies that benefits from the ecosystem of composite companies in the state. Being in the middle of the aerospace cluster, were part of the family, and if we were out in the middle of nowhere there would not be the same impact for us, says Jean-Christophe Vidil, global product manager for Kentbased Flow International.
Connections were important to Angeles Composites Technologies (ACT) Inc. as well. Company executives decided to keep ACT in Port Angeles and expand rather than relocate to another state, despite being recruited to do so. The Port of Port Angeles invested state and federal funds to create a composites campus, including new buildings for ACT. That was enough for ACT to stay put. Composites companies are drawn by a number of advantages. For instance, Washingtons electricity costs are among the lowest industrial power costs of any state, as low as 4.07 cents per
The Automobili Lamborghini Advanced Composite Structures Laboratory develops carbon fiber products for several major companies, such as Volvo, Boeing and Callaway Golf.
kilowatt hour, with a scalable electric grid. A network of world-renowned research institutes supports the industry, including Automobili Lamborghini Advanced Composite Structures Laboratory at the University of Washington, the Center for Excellence for Aerospace and Advanced Materials based in Everett, and Pacific Northwest National Laboratory.
Training for the Future

A well-trained workforce poised to support high-tech manufacturing is another plus. The community and technical college system has developed six-
month certification programs that equip workers for composites manufacturing positions. Each year several hundred graduates are prepared to take jobs in the growing sector. The graduate placement rate is about 90 percent, says Mary Kaye Bredeson, executive director, Center of Excellence, Aerospace and Advanced Material Manufacturing. Various colleges have developed specialties, such as aerospace, green energy, medical devices and marine technology. New programs in non-destructive testing and inspection of composite materials as well as recycling are part of the Washington State Composites
Training Consortium. That really showcases that Washington is serious about bringing companies here because we have a skilled workforce from which to hire, Bredeson says.
Being in the middle of the aerospace cluster, were part of the family, and if we were out in the middle of nowhere there would not be the same impact for us.
Jean-Christophe Vidil, global product manager for Flow International Corp.
Flow Internationals water jets cut carbon fiber siding used on aircraft, including the Boeing 787 Dreamliner.
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MArINE TECHNOLOGY
ShiPshAPe CoNditioN
WasHinGtons maRinE indUstRY ancHoRs tHE statEs EconomY
W
By John Fuller
ashington has the ideal environment for a thriving marine technology industry, with a rich ship-building heritage, appropriate for a state with 3,200 miles of coastline, 50,000 miles of rivers and streams, 7,800 lakes, thousands of boat owners and hundreds of commercial fleets. Recreational watercraft in the state number 280,000, which doesnt include thousands of commercial and government vessels, making it practically a state on water. One in five state
residents owns a boat, recreational boating is a $4 billion industry and more than 28,000 workers in the state are employed in marine-related careers. More than 300 seafood companies operate in Washington state, many of which have large fishing fleets. Our boat-building culture is world famous, says Peter Schrappen, director of government affairs for the Northwest Marine Trade Association. Schrappen says the state is the one-stop shop for all things that cater to marine trades. Washington manufacturers build a variety of boats there are more yacht-building yards in Washington than any region of the world outside of Europe.
Marine Technology Industry in Washington State

$30B: Economic impact of Washingtons marine technology industry
80%
Luxury super yachts sold in U.S. that were built in Washington state
1:5 Ratio of boats per resident in Washington
On Board With Training

A number of organizations and workforce development and training programs in Washington support the marine trades industry. Among them: The Seattle Maritime Academy: A division of Seattle Central Community College, the academy is accredited by the Northwest Association of Schools and Colleges, approved by the U.S. Coast Guard and supported by the U.S. Maritime Administration. The academy offers certificate programs in marine deck technology and marine engineering technology as well as training programs in a variety of marine subjects and topics. Maritime Institute of Technology & Graduate Studies/Pacific Marine Institute: The Seattle-based organization trains individuals entering the merchant marine at the support and operational levels, as well as programs and individual courses for those already in the maritime profession.
28,000
Workers in the states marine technology industry
CHRISTENSEN YAcHTS: BOEING
280,000
Recreational watercraft in the state
Western Regional Aquaculture Center: Based in Seattle, the WRAC is administered by the U.S. Department of Agriculture's National Institute for Food and Agriculture. The industry-academic research partnership works to enhance the viability and profitability of commercial aquaculture production in a 12-state region. Sources: ChooseWashington.com, Northwest Marine Trade Association
Christensen Yachts builds super yachts in Vancouver, Wash.
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Platypus Marine, located in Port Angeles, refurbishes yachts, sailboats, commercial ships and other vessels.
More than 80 percent of the luxury super yachts produced in the U.S. are built in Washington, as are smaller boats and fishing vessels, tugs, ferries and work boats. These manufacturers are also on the leading edge of technology, utilizing lightweight, but strong, composite materials in their boat structures.
Washington: A Shipbuilding Leader

One of the worlds major super-yacht builders is Christensen Yachts, based in Vancouver, Wash. The company builds yachts from 120 to 164 feet in length, selling from $17 million to $36 million. Christensen sells nearly a third of all of the super yachts built in America. The shipyard, which employs about 295 workers, includes more than 180,000 square feet of climate-controlled manufacturing space and a 7-acre marina. Washington is exactly where we want to be, says Joe Foggia, CEO of Christensen. The state has a tremendous quality of life and our industry is well supported by local governments. Rozema Boat Works is a third-generation producer of customized marine vessels, including fishing boats and work boats such as tug boats and oil recovery vessels. Our craftsmen make a good boat that lasts, says Dirk Rozema, general manager at the Mount Vernonbased company. Rozemas customers are principally located along the West Coast, Gulf of Mexico and Caribbean. Platypus Marine, based in Port Angeles, is one of the most diverse shipyards in the Pacific Northwest and West Coast. Platypus, which has a 4-acre marina and 70,000 square feet of covered work space, is principally known as a ship refurbisher. The yard works on large yachts, sailing vessels and commercial ships of all types. It is a major contractor for repairing U.S. Coast Guard vessels. We think there is an outstanding outlook for the marine trades industry in Washington, says Marty Marchant, director of sales and marketing for Platypus, which employs as many as 80 workers.
In addition to repairing and improving ships, Platypus Marine builds new commercial fishing vessels.
A Seaworthy Workforce
These and other boat builders rely on a steady stream of technically skilled workers, coming from the states outstanding educational institutions. One of the most prominent is the Northwest Center of Excellence for Marine Manufacturing and Technology, located on the campus of Skagit Valley College in Anacortes. The centers mission is to create a highly skilled and readily available workforce that is critical to the success of the marine trades industry. The center offers educational opportunities in a host of marine trades, including marine electronics,

composite manufacturing and diesel and gasoline engine mechanics. The center also provides certification programs in a number of marine disciplines. More students are recognizing that a technical trade is a great opportunity for a solid and lucrative career, says Ann Avary, director of the center, who notes that placement percentages for those graduating from the center are high. The economy is rebounding and people are getting back on the water, Avary says. This is creating a greater demand for technicians in all facets of the industry.
Discover more about the marine technology industry in Washington and how it impacts the states economy at businessclimate.com/washington.
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LIFE SCIENCES
Alive ANd Well

WasHinGton lifE sciEncEs oRGaniZations impact HEaltH on a Global scalE
WasHinGton is HomE to nEaRlY 500 lifE sciEncEs and Global HEaltH oRGaniZations Two majoR REsEaRcH UniVERsitiEs and top REsEaRcH cEntERs aRE kEY paRts of tHE statEs lifE sciEncEs indUstRY A nUmbER of oRGaniZations basEd in tHE statE REsEaRcH infEctioUs disEasEs, sUcH as HiV/Aids and malaRia
Researchers at the Seattle Biomedical Research Institute work to eliminate emerging and neglected diseases, viral diseases, malaria and tuberculosis.
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By Kelly Kagamas Tomkies ith its fusion of highly respected research institutions, cutting-edge biotech companies and world-renowned healthcare organizations, Washington states life sciences industry is making a life-saving impact that reaches well beyond its borders. The nearly 500 life sciences and global health organizations, two major research universities, And beyond Washingtons borders, the industrys efforts are helping to eradicate disease and improve the quality of life in dozens of countries. Nearly 200 organizations, including the Bill & Melinda Gates Foundation, are working to improve global health through research, training, education and public awareness. The states research organizations, nonprofits and private companies have developed numerous innovative initiatives and technologies that have helped improve health around the world. The Washington Global Health Alliance (WGHA), based in Seattle and funded in part by the Bill & Melinda Gates Foundation, promotes and coordinates global health initiatives. Our whole mission is about leveraging the collective expertise in Washington and beyond, says Lisa Cohen, WGHA executive director. We provide a framework for collective partnerships, connecting organizations and people with each other. Cohen says many organizations dont realize they may be working on the same disease or region and could be more effective when working together. We are matchmakers in all sorts of ways, she says. WGHA also educates legislators, the business community and the public about the importance of the life sciences/global health sector. The state government supports the industry through the Washington Global Health Fund, which provides seed funding for global health technologies. The WGHA administers this program.
The Seattle Biomedical Research Institute has nearly 400 employees from more than 20 countries.
Fighting Infectious Diseases

and a number of key research centers, including the Pacific Northwest National Laboratory, are having a significant impact on the states economy, employing more than 26,000 workers and attracting more than $900 million in National Institutes of Health grants. Seattle Biomedical Research Institute (SBRI) is a leading organization in the global health arena that works toward eliminating infectious diseases. Thats what we all focus on in one way or another, says Randy Hassler, SBRI chief operating officer.
Washington Life Sciences
Source: ChooseWashington.com
480+ Biotech and life sciences organizations in Washington
26,300
Employees in the life sciences industry

200
= 1,000 Organizations that focus on global health
Our whole mission is about leveraging the collective expertise in Washington and beyond.
Thats what we come to work to do every day. The institutes work focuses on a variety of diseases, including HIV/AIDS, malaria, tuberculosis and other conditions caused by trypanosomes, parasites that can transmit such illnesses as sleeping sickness. One of SBRIs successes is its work toward creating a new HIV vaccine. SBRI researchers, in collaboration with other organizations worldwide, are developing antigens, or proteins used to elicit an immune response to HIV in humans. Very early findings are promising. The Infectious Disease Research Institute, also in Seattle, works to find solutions for neglected infectious diseases such as TB, parasitic diseases and leprosy. Its successes include diagnostic tests and screening tools. We have a pipeline that rivals any private
Lisa Cohen, executive director of the Washington Global Health Alliance

company, says CEO Stewart Parker. PATH, another Seattle-based nonprofit organization, takes an entrepreneurial approach to developing and delivering high-impact, low-cost solutions to promote health in more than 70 countries in Asia, Africa, Europe, Latin America and North America. The organizations work spans the spectrum of global health, from epidemic diseases such as AIDS and malaria to medical technologies and womens and childrens health.
Washington: Confluence of Expertise

The nexus of resources in global health in Washington extends to its world-renowned centers of medicine. The Fred Hutchinson Cancer Research Centers 2,700 faculty and staff members, including three Nobel laureates, are working to eliminate
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cancer, HIV and other related diseases. The center gained acclaim with its bone marrow transplant research in the early 1980s, the first example of the human immune systems ability to cure cancer. The centers research has expanded into eradicating infectious diseases, which has been linked to lowering cancer risk. Hutchinson Center researchers are on the front lines of the global battle against HIV/AIDS, including hosting the worlds largest HIV vaccine clinical trials network and pursuing innovative HIV prevention strategies, treatments and potential cures. There are a number of anchor institutions here in global health and the University of Washington is a powerhouse in terms of global health research, SBRIs Hassler says. We were an early pioneer in
the area and over time other organizations have formed here. Momentum builds and people want to be where the action is. That is happening in Seattle and across the state of Washington. The University of Washington is immersed in global health initiatives on several fronts, including its Department of Global Health, founded in 2007 in part through an endowment from the Bill & Melinda Gates Foundation. The department bridges the universitys School of Medicine and its School of Public Health, and its interdisciplinary approach leverages all 16 UW schools and colleges to focus on such global health issues as infectious diseases, workforce development, climate change, global medicine safety, and womens, childrens and adolescent health.
Washingtons Global Health Reach

Nearly 200 Washington-based organizations are working to improve global health through research, training, education and public awareness. Here are just a few examples of their work:
Infectious Disease Research Institute: Among its many research efforts is development of an effective vaccine and better diagnostic tests for leprosy, still considered a public health problem in 24 countries in Africa, Asia, and Latin America.
Seattle Biomedical Research Institute: Researchers sequenced the genomes of the parasites that cause African sleeping sickness, Chagas disease and leishmaniasis, providing the basis for new drugs and treatments.
With so many organizations working toward a common goal, locating in the state can provide important benefits. If youre working in the global health community, this is where you need to be, hands down, WGHAs Cohen says. We have an incredible confluence of expertise concentrated here and experts willing to partner and collaborate. Cohen says WGHA has mechanisms that connect new people and organizations with the community. The work is too important not to have people working together to succeed, she says.
Read more about Washingtons health-care and life sciences industries at businessclimate.com/washington.
The Seattle Biomedical Research Institute is one of 200 organizations in the state involved in global health efforts.
SightLife: The nonprofit health organization and eye bank is focused on eliminating corneal blindness around the world. It has set a goal to perform 100,000 corneal transplants in India by 2020. PATH: In partnership with the Republic of Zambia Ministry of Health, the organization has developed a three-step approach to eradicate malaria, including rapid reporting, mass testing and treatment, and active surveillance.
World Vision: The organization's Alive & Thrive project in Ethiopia helps educate mothers of infants and young children on proper feeding practices.

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AGrICULTUrE
Its In Their Nature

WAsHINgTONs AgrIcULTUre INDUsTrY HArvesTs New OPPOrTUNITIes IN eXPOrT MArkeTs

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T
By Kevin Litwin
he diversity and dynamism of Washington states economy can be seen in its agriculture and food production industry. Agriculture and food production accounts for $46 billion in annual sales, 13 percent of the states total economy. Apples, milk, wheat, potatoes, hay, cattle and wine lead the way in sales of 300 commodities produced. Some type of agriculture occurs in literally all 39 counties in our state, says Hector Castro, communications director with the Washington State Department of Agriculture. Were big in crop farming and cattle ranching, and were big in food processing. The states ideal climate conditions, abundance of water, good soil, low energy costs, access to major transportation venues and a bumper crop of 130,000 agriculture workers create a fertile climate for opportunities. Castro points out that while many U.S. agricultural
states are dominated by farms run by huge corporate operations, Washington still provides good opportunities for small farms to thrive. More than 80 percent of the 39,500 operations in Washington are owned by small farmers, and an increasing number are owned and operated by women, he says. Latino farm owners are a growing segment as well. Sergio Marquez, who owns Marquez Farms apple orchard in Wapato near Yakima, had been a longtime foreman on a 180-acre family-owned farm. Marquez purchased the orchard in 2004 from thenowners John and Judy Hunter, and today, Marquez enjoys a healthy and profitable enterprise. I bought the farm for $200,000 and will have it paid off in three more years, he says. I still run the orchard like a foreman, but its sure a lot better being the owner. While crops produce high yields in Washington, the dairy industry is also a powerful agricultural segment. Dairy ranks as the states second-highest
Washington Wine Facts

In the U.S., Washington is the second-largest premium wine producer (wines sold for $8 and higher). There are 350 wine grape growers and 750 wineries throughout the state, employing 19,000 full-time workers. Twelve million cases of wine are produced each year. Washington has 13 designated American Viticulture Areas, or AVAs, as defined by the U.S. Department of the Treasury: Alcohol and Tobacco Taxes and Trade Bureau. The total economic impact of wine on Washington state is $3 billion annually.
Source: 2012 Economic Impact Study by Stonebridge Research
Top Washington crops by annual sales
Bushels of Success
Washington State Agriculture Exports

2011: $11.4 billion 2012: $12 billion
Apples $1.83B
Wheat $1.14B
Potatoes $771M
Hay $714M
2009: $7.9 billion
2010: $9.2 billion
Cherries $534M
Grapes $189M
Pears $186M
Source: Office of Trade and Industry Information
Source: Washington State Department of Agriculture, 2011 statistics
valued commodity, after apples. We export tons of powdered milk to foreign countries, and Washington is the second-largest exporter of dairy products, behind only California, Castro says. The industry has made many improvements in recent years that result in higher dairy production, including more high-tech equipment and better cattle care and nutrition. Washington dairy cows now produce an average of 10 gallons of milk a day (each), which is impressive.
Focusing on Exports
Washington is also a major potato producing state, accounting for 21 percent of U.S. potato production and second only to Idaho. Washingtons potato industry delivers a $4.6 billion economic impact and supports 23,500 jobs, with the Columbia Basin serving as a prime region for growing potatoes. Washington states ag industry has taken up the challenge set by the Obama administration to double U.S. exports by 2014. More than 90 percent of the states wheat crop is exported, and about 30 percent of the states total agricultural commodities are exported. Combined, more than $16.3 billion in food, agricultural and seafood products are now exported from Washington each year.
Toasting New Markets

One agricultural sector looking to increase export opportunities is the states signature wine industry, which now ships about 5 percent of its production to foreign markets. Woodinville-based Chateau Ste. Michelle Wine Estates has an international sales executive whose sole mission is to increase the winerys sales to foreign countries. As a result, Ste. Michelle wines are now distributed in more than 100 countries, and the winery is the leading wine exporter in Washington. I have dedicated my professional career to exporting American wines, including 18 years with Ste. Michelle, says Al Portney, vice president of international sales. My sales presentation to international clients first describes Washington as a beautiful place to live, then I tell who we are and what we produce. Every two years, Portney flies to the Bordeaux region in France to attend Vinexpo, a global trade show that hosts wine professionals from more than 140 countries. Vinexpo allows him to network with hundreds of wine industry individuals from around the world. Also every two years, Ste. Michelle hosts the Washington State Wine Experience, an international wine exporting event that drew 60 people from a dozen

Sergio Marquez owns Marquez Farms in Wapato. Apples are Washington states highest-value agrciultural commodity.
countries who flew to Washington to attend the event in 2013. There were importers, food and beverage managers, large retailers, restaurant owners, and journalists all learning about Washington wines, Portney says. The word continues to grow about the excellence of Washington wines.
AGRICULTURE
Its In Their Nature
WASHINGTO NS AGRICULTUR INDUSTRY E HARVESTS NEW OPPOR TUNITIES IN EXPORT MARKETS

BUSINESSCLIM ATE.COM/WAS HINGTON
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51
With more than 300 commodities commercially grown in Washington, it is no wonder we have been busy for the last 100 years!
The Washington State Department of Agriculture (WSDA) opens doors to global markets through inspection, certification and/or licensing for: Food Safety and Sanitation Phytosanitary and Export Documentation Product Grade, Size and Condition Warehouse and Nursery Audits Serving Washington Agriculture and the Public Since 1913! Animal Health Washington State Pesticide Application 95% of the worlds consumers are outside the U.S. WSDAs International Marketing Program wants to introduce you! We assist Washington companies with: How to Start Exporting Labeling and Certification Requirements Meeting Buyers Around the World
Department of Agriculture
P.O. Box 42560 Olympia, WA 98504-2560 (360) 902-1800
http://agr.wa.gov
AG EXpOrTS
PORT OF WALLA WALLA

WASHINGTON
Wallula Gap Business Park Mega Site
1,400-acre mega site zoned heavy and mixed industrial with excellent truck and rail access, potable and re suppression water, electrical, and natural gas. Ideal for heavy manufacturing or large warehouse distribution.
Core Industry
applEs aRE a bUmpER cRop foR EXpoRts
The 10 billion apples harvested in Washington each year are picked the old fashioned way by hand. And if you put all of those apples side by side, they would circle the earth 29 times. Apples, which account for $1.8 billion in annual sales, are the highestvalue agricultural commodity grown in the state. About 33 percent of Washington apples are exported to more than 60 countries. Our state has high-yielding orchards, with many that grow along waterways like the Columbia and Snake rivers. The Columbia Basin is some of the best land on the planet for growing high-quality apples, says Todd Fryhover, president of the Washington State Apple Advertising Commission. The states apple picking season runs from mid-August into November, with 57,000 workers harvesting the crop. Fryhover says the Apple Commission doesnt do any domestic advertising, focusing on exporting the apples into more foreign markets. Washington farmers these days are mainly growing the most profitable apples, with Red Delicious, Galas, Fujis and Honeycrisps continuing to increase in popularity, he says. Red Delicious and Galas are our biggest sellers, with 35 million Red Delicious and 30 million Galas sold annually. One of the many successful individual orchards in Washington is Gold Digger Apples in Oroville. The orchard grows apples, pears and cherries, and has 150 full-time employees and 400 seasonal workers. We thrive in the desert conditions of eastern Washington, which is an ideal geographic region for growing apples, says Greg Moser, Gold Digger Apples general manager. That is especially the case every August in eastern Washington when the long days and cool nights are perfect for bringing out the best color and sweetness in Washington apples. Kevin Litwin
Two low-cost electrical utilities ready to compete for your business and a TransCanada GTN natural gas pipeline with available excess capacity. Easy access on and off US Highway 12, and 15 miles from Tri-Cities, WA MSA 270K population and I-395. Formal site due diligence completed including survey maps, utility information, archaeological, geotechnical, biological and environmental. For more information on the site, contact the Port of Walla Walla at 509-525-3100 or pg@portwallawalla.com
310 A Street Walla Walla, WA 99362 509-525-3100
www.portwallawalla.com ||
53
TrANSpOrTATION
OveR the LoNG HAUl

A fUllY intEGRatEd tRanspoRtation sYstEm and majoR poRts HElp makE WasHinGton an EXpoRt lEadER
THE statE Has MoRE tHan 3,600 milEs of intERstatEs and HiGHwaYs, two Class I Rail caRRiERs and 139 pUblic aiRpoRts.
WasHinGton is HomE to 75 pUblic poRts, wHicH aRE locatEd in 33 of tHE statEs 39 coUntiEs.
EXpoRtinG is biG bUsinEss in WasHinGton, and in 2012, tHE statE sHippEd $75.5 billion in Goods aRoUnd tHE woRld.
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W
By Kevin Litwin
ashington is a center of global business, a location that attracted foreign investment supporting more than 92,000 jobs in the state. More than 8,400 companies in the state exported products totaling $75 billion to foreign markets in 2012. The states geographic proximity equidistant between Europe and Asia and its sophisticated and integrated transportation network put it in the upper echelon of exporting states. More than 3,600 miles of interstates and highways, two Class I rail carriers and 139 public airports including Seattle-Tacoma International Airport, one of the worlds busiest for passenger traffic and cargo give Washington the capability to move people and products efficiently.
There are 75 ports in our state, in 33 of our 39 counties, says Eric D. Johnson, executive director of the Washington Public Ports Association. A port doesnt necessarily need to be a navigable waterway in Washington. Ports are in place to promote economic development and can be airports, marine terminals, marinas, railroads or industrial parks. Washington offers 11 deep-draft navigable ports that handle major cargo shipments, from containerized finished goods to agricultural bulk commodities. The ports of Seattle and Tacoma are two of the most active navigable shipping centers in all of North America, and conduct an export business that greatly contributes to the overall economy of the Pacific Northwest. Because of our geographic location on the West Coast, Pacific Rim nations are our major trading
The Port of Tacoma, one of the largest container ports in North America, comprises about 2,400 acres on the Tacoma Tideflats.
stAFF PHOtOs bY Jeff Adkins
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Top Export Locations (2012)

Source: U.S. Census Bureau
Washington State Export Values

2012 2011 2010 2009
18.7%
$14.2 billion
China
11.9%
$9 billion
Japan
11.1%
$8.4 billion
Canada
$75.5B $64.8B $53.3B $51.9B
Source: U.S. Census Bureau TOp EXpOrT PrODUCTS (2012) Source: U.S. Census Bureau
6.7%
$5.1 billion
United Arab Emirates
4.5%
$3.4 billion
South Korea
3.8%
$2.9 billion
Mexico
2.8%
$2.2 billion
Hong Kong
2.5%
$1.9 billion
Germany
Civilian aircraft, engines & parts: $36.7B Soybeans: $5.5B Wheat: $2.5B Petroleum: $2.3B Corn: $1.6B Light oils: $1.2B Fresh apples: $825M Potatoes: $752M Untreated wood: $732M Ultrasonic scanning apparatus: $663M
TOp U.S. CONTAINEr POrTS (IN mILLIONS OF 20-FOOT EQUIVALENT UNITS HANDLED)
Port Los Angeles, CA Long Beach, CA New York/New Jersey Savannah, GA Oakland, CA Seattle, WA Houston, TX Norfolk, VA Tacoma, WA Charleston, SC
Source: Colliers International
TEUs 2012
TEUs 2011 7,900 6,100 5,500 2,900 2,350 2,000 1,900 1,900 1,500 1,300
8,000 6,000 5,600 3,000 2,400 2,100 2,100 1,950 1,500 1,350
partners, Johnson says. While the deep-draft ports in the Puget Sound region, such as Seattle, Tacoma, Olympia and Bellingham, are important venues for commerce, the lower Columbia River also includes major ports such as Longview, Kalama and Vancouver that export such commodities as grain and potash used in fertilizers. The Port of Vancouver, which celebrated its 100th anniversary in 2012, is the third-largest port in the state and includes five marine terminals that provide 13 deepwater shipping berths. The port is a key conduit for the states export activities and counts China, Japan, South Korea, Australia, and European and South American markets among its major trade partners. The port handled 4.6 million metric tons of cargo in 2012, more than 57 percent in grain exports. It is also one of the leading ports on the West Coast for the import of wind energy components. The deepening of the Columbia River shipping channel that was completed in 2010 brought the channel depth to 43 feet, making it possible for the Port of Vancouver to accommodate Panamax-size
shipping vessels. The port complex, which covers more than 2,000 acres, includes sites for light and heavy industry. More than 50 manufacturers have operations in the port complex. Another example of a key deep-draft port, Johnson says, is Grays Harbor, which exports soybeans and Chrysler automobiles to Asia. It is one days sail closer to key Asian markets than any other West Coast port. In all, Washingtons ports handle 7 percent of the nations total exports. Johnson says the states ports are also vital for importing, as Washington imports many items from the Far East and then ships those products east throughout the United States. Plenty of machinery, electronics and clothing we get from China is unloaded in Washington and then transported by rail or truck to cities such as Chicago and beyond, he says. Washington is the most trade-dependent state in the country, and if good infrastructure for transportation is maintained, we will continue to see major growth in the import-export sector for this state.
The Port of Seattles cargo activity is responsible for more than 21,000 jobs.
Logistically Speaking
Issaquah-based Red Arrow Logistics provides importing and exporting solutions to Fortune 500 companies by setting up truck, air, rail and ocean shipments for products that its customers send to 185 countries throughout the world. We work with big-name exporters in Washington to help their businesses expand in overseas markets, says Liz Lasater, CEO of Red Arrow Logistics. Red Arrow helps companies with advice and logistics that result in the best ways to ship their valuable products, plus we take care of the correct and legal documentation for international customs and regulatory filings. Lasater says infrastructure in Washington is vital to Red Arrow, which uses a number of highcaliber ground, air, rail and ocean-shipping transport companies. We ship cargo that is high priority and highly valuable, so we often utilize transport companies that can handle out-of-gauge, heavy haul and special project shipments, she says. For example, a company might have two aerospace composite parts worth $500,000 apiece, and we arrange all of the logistics. To accomplish our mission, a good transportation system in Washington is essential to how we conduct business.
Find more information about Washingtons transportation network at businessclimate.com/washington.

The Port of Port Angeles includes three deep-water berths capable of handling vessels up to 1,200 feet in length.
61
EDUCATION
Training on Track
T
By Kevin Litwin
WoRkfoRcE dEVElopmEnt pRoGRams GiVE WasHinGton a skills adVantaGE

drive the states economy for years to come, says Jim Crabbe, director of workforce education with the Washington State Board for Community and Technical Colleges. For example, clean energy will continue to be a key economic industry in Washington in the future, so a Center of Excellence has been set up at Centralia College to focus solely on training students for clean energy careers, Crabbe says. Other key or emerging industries that Centers of Excellence focus on include aerospace and advanced materials manufacturing, agriculture, allied health, careers
he backbone of Washington states highly competitive economy is its deep pool of skilled and highly educated workers. The states educational attainment levels are above U.S. averages, and it provides a wealth of resources and incentives to keep worker skills in line with the current and future needs of employers. Underpinning the system is the presence of major research universities, the University of Washington and Washington
State University; dozens of public and private four-year institutions; and 34 community and technical colleges that support the workforce development needs of the states key industry sectors. The state also backs workforce training initiatives with Centers of Excellence and a Job Skills Program overseen by the Washington State Board for Community and Technical Colleges. Through the states Centers of Excellence initiative, 10 community colleges in Washington each have a Center of Excellence on site that teaches one key industry curriculum that will help
Washington has more than 1 million students enrolled in public schools in 301 districts, which employ 51,676 classroom teachers. In addition, the state is home to 65 twoand four-year public and private higher education institutions.
(population 25 and older)
Educational Attainment
89.7%
High school
Undergraduate degree
31%
11.1%
Graduate degree Source: U.S. Census Bureau
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in education, construction, homeland security, information and computing technology, global trade and supply chain management, and marine manufacturing and technology.
skill sets targeted for their employees. Mattress manufacturer Sealy recently needed to train workers and set up a customized program at South Puget Sound Community College in Olympia. And carbon
The Workforce Board

Washingtons Workforce Training and Education Coordinating Board helps residents become employed, re-enter the workforce or move ahead in their careers. The board oversees a workforce development system that includes 16 education and training programs that receive almost $1 billion annually in state and federal funds. We partner with economic development and education to meet the needs of businesses in their particular geographic regions, says Eleni Papadakis, Workforce Training and Education Coordinating Board executive director. From programs that target teens in danger of dropping out of high school to industry skill panels that help bridge the gap between high-demand jobs and the training that workers need to succeed, the Workforce Board advocates for a bettereducated, better-prepared Washington workforce. Papadakis says the Workforce Board is involved in numerous programs in Washington to create a world-class workforce development system, including involvement in high school career curriculums, technical education, apprenticeships, support services and programs for different population groups. We do strategic planning through evaluation and research to see whats working and what isnt, she says. Employers often dont know where to look and dont know what they need with regard to training, so we help the employers navigate the education and workforce development system because we are involved in so many training programs throughout the state.
The John Deere Tech program at Walla Walla Community College teaches students how to repair and maintain John Deere products and machinery.
At Pierce College in Lakewood, the Center of Excellence focuses on homeland security. Companies looking for personnel in that field can tap into the centers resources to interview students and find qualified candidates to fill their employment needs, Crabbe says. The same goes for agriculture at the center at Walla Walla Community College, allied health at the center at Yakima Valley College, and so forth. The Centers of Excellence are meant to ultimately fill the skills gap for careers that our state needs and demands to further drive the states economy, Crabbe says.
Job Skills Program

The Washington State Board for Community and Technical Colleges also oversees a Job Skills Program in which businesses partner with community colleges for short-term customized training

fiber manufacturer SGL Group teamed with Big Bend Community College in Moses Lake on an aggressive training campaign to upgrade the skills of its employees, says Kathy Goebel, policy associate for economic development with the Washington State Board for Community and Technical Colleges. In addition, Vancouver-based yacht manufacturer Christensen recently contacted Clark College to put together a training curriculum designed for its employees. Any business involved with the Job Skills Program receives a grant for employee training and then pays back the grant money over 18 months, Goebel says. At that point, the company receives a hefty 50 percent tax credit.
Learn more about Washingtons schools and educational programs at businessclimate.com/washington.

11 10 5 15 2 22 13
33
24 17 23 18 30 1 20 8 27
Bellingham
3 25
Port 19 Angeles
Everett
14 21
29 28
32 12 6 16
Wenatchee
90
Olympia
I-5
26
Yakima
34
82
4 9
Tri Cities
31
Walla Walla
Community and Technical College Campuses

1 - Bates Technical College 2 - Bellevue College 3 - Bellingham Technical College 4 - Big Bend Community College 5 - Cascadia Community College 6 - Centralia College 7 - Clark College 8 - Clover Park Technical College 9 - Columbia Basin College 10 - Edmonds Community College 11 - Everett Community College 12 - Grays Harbor College 13 - Green River Community College 14 - Highline Community College 15 - Lake Washington Institute of Technology 16 - Lower Columbia College 17 - North Seattle Community College 18 - Olympic College 19 - Peninsula College 20 - Pierce College-Fort Steilacoom 21 - Pierce College-Puyallup 22 - Renton Technical College 23 - Seattle Central Community College 24 - Shoreline Community College 25 - Skagit Valley College 26 - South Puget Sound Community College 27 - South Seattle Community College 28 - Spokane Community College 29 - Spokane Falls Community College 30 - Tacoma Community College 31 - Walla Walla Community College 32 - Wenatchee Valley College 33 - Whatcom Community College 34 - Yakima Valley Community College
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The Soundside Situated in the heart of the Puget Sound Regions major commerce and transportation corridor, within minutes of Seattle-Tacoma International Airport, the Soundside is a leading location for business and development. The Soundside offers an array of opportunities for you and your business, including: An attractive quality of life A large and diverse workforce Available land and inexpensive land values A wide variety of retail centers Unsurpassed access to regional highways, airports and mass transit systems Low property taxes Community and technical colleges Workforce training opportunities Access to key business resources A supportive business environment
The Soundside is undergoing exciting change, making it an extremely promising location for business and leisure. Be a part of this vibrant, fast-growing community, and learn about the Soundsides many assets and opportunities.
Visit soundsidealliance.org
EcoNomic PRoFile
Population
2012: 6,897,012 2000: 5,894,143 Change: 17%
Major Population Centers (2012)

Seattle:
Top Employers
Source: Puget Sound Business Journal
634,535
Spokane: 82,000 56,000 40,686 46,376 26,978
209,525
2000 2012 Households: 2,758,800 Source: quickfacts.census.gov Tacoma:
202,010
Vancouver:
Labor Force
Nonfarm (May 2013):
165,489
Bellevue:
The Boeing Co., Seattle Joint Base Lewis-McChord, Pierce County Navy Region Northwest, Silverdale Microsoft Corp., Redmond University of Washington, Seattle
2,935,500
Private employment (May 2013)
126,439
Kent:
2,383,100
Top Industries
122,999
Everett:
104,655
Yakima:
Income
Per Capita Personal Income (2012): Source: Office of Financial Management Source: Office of Financial Management Median Home Price (2012): $$ Estimated Rent for a 2BR Apartment:
Trade, Transportation & Utilities: 18.8% Government: 18.8% Education & Health Services: 13.4% Professional & Business Services: 12.0% Leisure & Hospitality: 9.8% Manufacturing: 9.8%
93,101
Source: quickfacts.census.gov
$42,693
Cost of Living
Median Household Income (2011):
$58,890
$234,200 $870
THIS SECtION IS SPONSORED BY
LIVABILITY
CReAtive ClimAte
StRonG sUppoRt at tHE local and statE lEVEl paints a VibRant aRts scEnE in WasHinGton statE
THE statEs aRts commUnitY is sUppoRtEd bY aRtswa, wHicH assists ARts-RElatEd GRoUps and EdUcational pRoGRams.
REGional oRGaniZations, sUcH as aRtWalla and tHE pUllman aRts commission, bolstER WasHinGtons aRts scEnE.
MUsEUms, GallERiEs, fEstiVals and otHER aRts and cUltURal attRactions dRaw VisitoRs to tHE statE.
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W
By Jessica Walker Boehm
ashingtons diverse arts landscape offers ample opportunities for artistic exploration, making it a perfect place for creators and admirers alike. Based in Olympia, the Washington State Arts Commission (ArtsWA) strengthens the states arts community and promotes arts education. The
The organizations financial support also positively impacts the states creative economy, helping to make the arts one of Washingtons major employers. Washington is above the norm in terms of economic activity in creative sector occupations, Tucker says. As of 2011, we have more than 117,000 jobs in the arts. ArtsWA also keeps an eye on the states creative economy by partnering with the Western States Arts Federation to examine the Creative Vitality Index in a set of communities on an annual basis. A selection of nonprofit groups in each area receive grants and customized training, and throughout the year each communitys creative economy is measured based on participation in the arts and arts-related employment.
Organizations Promote the Arts

Smaller, community-specific groups are also having a major impact on the states arts landscape. ArtWalla, located in the Walla Walla Valley, is an all-volunteer organization that supports the local arts scene. The group formed in 1992, and in the early 2000s, members began to focus on public art. Tricia Harding, ArtWallas president, says the organization worked with the city and the Walla Walla Foundry to place more than 15 pieces of art downtown and in parks. Public art has had a huge impact on revitalizing Walla Wallas downtown area, Harding says. One of ArtWallas major downtown works, Windows on the Past, is in Heritage Park. The creation includes a building facade from 1902 with local family photographs dating between 1850 and 1950. The $300,000 project was funded by more than 100 individual donors, as well as corporate sponsors and grants. Washington is also home to the Pullman Arts Commission, which has enhanced the community with public art and assists the Pullman Chamber of Commerce with ArtWalk, an annual cultural celebration. We were established to bring art into the community, maintain the citys visual art collection and put together exhibitions, says Anna-Maria Shannon,
Public art displays , such as A Delicate Balance, are an integral part of Walla Wallas arts mosaic.
organization also manages the states public art collection, which includes 4,500 works. We call ourselves a catalyst for the arts, says Kris Tucker, ArtsWAs executive director. A major way ArtsWA cultivates the states arts climate is by providing grants to arts organizations, statewide partners and educational programs. In 2012, more than 5.9 million people participated in arts activities supported by ArtsWA grants, including nearly 53,000 artists. It awarded $260,900 to school arts programs.

Located in downtown Seattle, the EMP Museum features exhibits that focus on music, movies, art and literature.
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founding member of the PAC and associate director of Washington State Universitys Museum of Art.
Top Arts Attractions and Destinations

With such an outpouring of support, its no surprise that Washington is full of arts attractions. Seattle, named one of the 2012 Top 25 Big Cities for Art by
AmericanStyle magazine, has a vibrant arts atmosphere highlighted by the Seattle Art Museum, Frye Art Museum, Seattle Asian Art Museum and the EMP Museum, which features collections, exhibitions and programs related to contemporary pop culture. Festl Cultural, a year-long series of free events at the Seattle Center, focuses on cultures from around the globe.
Spokanes Northwest Museum of Arts & Culture, commonly referred to as the MAC, and one of the states five Smithsonian Affiliates, houses historic and contemporary art collections. The MAC is this regions community hub and resource for historical and cultural information, says Rebecca R. Bishop, MAC communications and public relations manager. All of our exhibits have components for all ages and often have hands-on or interactive sections. Located in Port Townsend at Fort Worden State Park, Centrum serves approximately 27,000 people annually through artist residences, workshops, live performances and festivals. Visitors can learn to play instruments or sing, and writing classes are also offered. Goldendales Maryhill Museum of Art is also a favorite attraction, thanks to its collections of American Indian artifacts, international chess sets, outdoor sculptures and rotating exhibits. Overlooking the Columbia River Gorge and covering about 35,000 square feet, the museum is listed on the National Register of Historic Places. The Maryhill Museum of Art is in an iconic building that visitors from around the world build trips around coming to see, Tucker says.
LIVABILITY
CREATIV E CLIMATE
STRONG SUPPO STATE LEVEL RT AT THE LOCAL AND PAINT SCENE IN WASHS A VIBRANT ARTS INGTON STATE
THE STATES ARTS COMMUNIT Y IS SUPPORTE BY ARTSWA, D WHICH ASSISTS ARTS-RELA TED GROUPS AND EDUCATION AL PROGRAM S.
REGIONAL ORGANIZA SUCH AS ARTWALLATIONS, AND THE PULLMAN ARTS COMMISSI ON, BOLSTER WASHINGT ONS ARTS SCENE.
MUSEUMS , GALLERIES , FESTIVALS AND OTHER ARTS AND CULTURAL ATTRACTIO NS DRAW VISITORS TO THE STATE
BUSINESSCLIM
ATE.COM/WAS
HINGTON
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DIGITAL MAGAZINE
Walla Faces Inn, located in downtown Walla Walla, showcases original works of art.
Read it online or on your tablet and quickly share articles with friends.
RECrEATION
Big Wheels
cYclinG is on tHE Road to popUlaRitY in WasHinGton
Washington state offers so many cycling routes that professional bicyclist Mike McQuaide wrote a book entitled 75 Classic Rides Washington. The books primary focus is on one-day routes, such as a 50-mile tour around Orcas Island or a climb up to Washington Pass from Winthrop, as well as a handful of longer trips including one cross-state route. In 2013, Washington was named the nations No. 1 Bicycle Friendly State for the sixth year in a row by the League of American Bicyclists. The league noted the states: Infrastructure and funding that provide on-the-ground bicycle facilities Education and encouragement programs that promote cycling Passage and enforcement of bicycle-friendly laws that make it safe for people of all ages to ride. Gordon Odegaard, president of the 200-member Skagit Bicycle Club in Skagit County, says Washingtons waterways, mountains, forests, three national parks, 120 state parks, wilderness areas and recreation areas help make the state ideal for bicycling and sightseeing. We bicycle through Skagit County and up near Whatcom County and south into the Snohomish County area, with access to plenty of secondary roads through farm country and up into the hills and mountains, says Odegaard, whose club schedules about 20 rides during each summer month. The clubs signature event is the Spring Classic on the Saturday before Mothers Day, which drew 700 riders in 2013. Skagit Bicycle Club, founded in 1989, primarily features road cycling, although some members are also into CrossFit training and mountain biking. One member is in his 80s; the age range includes riders in their 30s. Washington is excellent for casual riders or serious riders, whether youre a bike commuter, bicycle tourist or transportation professional, Odegaard says. Kevin Litwin
WHY
FAMILY LIVING
Choose
GARFIELD COUNTY
Year-round recreation in the Blue Mountains and Snake River Vicinity of universities and colleges Local hospital and nursing home Primary through grade 12 Low crime rate True, friendly, small-town living
Gareld County is located in southeastern Washington state bordered on the north by the Snake River and on the south by the Blue Mountains. The rural community is located strategically with State Highway 12 running through Pomeroy, connecting routes traveling in all directions. Historically an agricultural region, Gareld Countys business economy is based largely on service, retail and small production. The rural charm of this neighborly community offers a safe and inviting environment for families and businesses.
Speedy permitting Shovel-ready property 35 miles to the airport Business incentives Strategic location Skilled labor High-speed broadband
BUSINESS
Port of Garfield P.O. Box 788 Pomeroy, WA 99347 509.843.3740 tel 509.843.3811 fax Please visit us at www.portofgareld.com
GALLErY
ENjOY THE GREAT OUTDOORs

Located in the Columbia River Gorge, White Salmon is a perfect place for whitewater rafting, kiteboarding, windsurfing, sailboating and other water activities. The area also is also a top spot for hiking and camping, thank to its proximity to Gifford Pinchot National Forest and Mount Adams.
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SAIL AWAY TO THE IsLAND

Vashon-Maury Island, located to the west of Seattle and in Puget Sound, is home to about 11,000 residents. The island lays claim to the original Seattles Best Coffee building, as well as several shops, restaurants, and bed and breakfasts, making it a popular place for tourists seeking relaxation.
VIsIT THE VOLcANO

Mount St. Helens National Volcanic Monument draws adventure enthusiasts to Skamania County, thanks to its hiking, climbing, biking and zipline opportunities. Visitors can also enjoy helicopter tours, fishing, elk viewing, horseback riding, four-wheeling and geocaching.
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TAKE IN THE BEAUTY

Cedar Creek provides water to the Cedar Creek Grist Mill in Woodland, which is Washingtons only graingrinding mill that remains in its original state, continues to grind with stones and is powered by water. The mill and its scenery were recognized by Sunset magazine as one of the Northwests most beautiful places.
LEARN THE HIsTORY AND ADMIRE THE VIEW

The Princess Ilchee Monument, a seven-foot, 700pound statue, is situated along Vancouvers Waterfront Renaissance Trail. The bronze statue showcases the daughter of Chief Comcomly of the Chinook Tribe and is part of a small plaza that honors the Chinook people.
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2014 EDItION VOLUME 2
DIREctOR OF cONtENt | Bill McMEEkin EDItOR AND PROJEct MANAGER | EmilY McMackin CONtRIbUtING wRItERs | Nan BaURotH, JoHn FUllER, HEatHER R. JoHnson, Bill LEwis, KEllY KaGamas TomkiEs, StEpHaniE VoZZa, GaRY WollEnHaUpt CONtENt COORDINAtOR | JEssica WalkER BoEHm StAFF WRItER | KEVin Litwin PROOFREADING MANAGER | RaVEn PEttY LEAD DEsIGNER | KacEY PassmoRE SENIOR GRAPHIc DEsIGNERs | StacEY Allis, LaURa GallaGHER, KRis SEXton, JakE SHoREs, Vikki Williams GRAPHIc DEsIGNERs | jackiE ciUlla, LindsEY HiGGins, matt wEst CREAtIVE TEcHNOLOGY ANALYst | BEcca ARY LEAD PHOtOGRAPHER | JEff Adkins SENIOR PHOtOGRAPHERs | BRian McCoRd StAFF PHOtOGRAPHERs | MicHaEl Conti, wEndY jo obaRR, fRank ORdoEZ, micHaEl tEdEsco cOLOR IMAGING tEcHNIcIAN | alison HUntER INtEGRAtED MEDIA MANAGER | JaREd LanE SALEs SUPPORt PROJEct MANAGER | SaRa QUint SALEs SUPPORt COORDINAtOR | CHRistina MoRGan AD PRODUctION MANAGER | KatiE MiddEndoRf AD TRAFFIc AssIstANts | KRYstin LEmmon, PatRicia Moisan WEb PROJEct MANAGER | DaVid DAY WEb DEVELOPER I | NEls nosEwoRtHY WEb DEsIGNER II | RicHaRd stEVEns DIGItAL PROJEct MANAGER | Jill RidEnoUR DIGItAL PRODUcts DEsIGNER | ERica lamplEY
VISIT OUR ADVERTISERS

City of Federal Way www.cityoffederalway.com City of Longview Washington www.mintfarm.com City of SeaTac www.cityofseatac.com/everywherepossible City of Spokane Valley www.spokanevalley.org Economic Alliance of Okanogan County www.economic-alliance.com Economic Alliance Snohomish County www.economicalliance.org Economic Development Association of Skagit www.skagit.org Explore North Central Washington www.explorencw.com Jefferson County Chamber of Commerce www.edcteamjefferson.com North Central Washington Economic Development District www.ncwedd.com Pacific County Economic Development Council www.pacicedc.org Pacific Northwest National Laboratory www.pnnl.gov Paine Field Airport www.snoco.org Port of Bremerton www.portofbremerton.org Port of Chelan County www.portofchelancounty.com Port of Douglas County www.portofdouglas.com Port of Everett www.portofeverett.com Port of Garfield www.portofgareld.com Port of Kalama www.portofkalama.com Port of Longview www.portoongview.com Port of Port Angeles www.portofpa.com Port of Quincy www.portofquincy.org Port of Tacoma www.portoftacoma.com Port of Vancouver USA www.portvanusa.com Port of Walla Walla www.portwallawalla.com Soundside Alliance www.soundsidealliance.org Tri-City Washington Development Council www.tridec.org Valley Vision Economic Development Lewis-Clark Valley www.lewis-clarkvalley.org Washington State Department of Agriculture www.agr.wa.gov Washington State University www.wsu.edu Yakima County Development Association www.ycda.com
CHAIRMAN | GREG THURman PREsIDENt/PUbLIsHER | Bob ScHwaRtZman EXEcUtIVE VIcE PREsIDENt | RaY LanGEn SENIOR V.P./SALEs | Todd PottER SENIOR V.P./CLIENt DEVELOPMENt | JEff HEEfnER SENIOR V.P./OPERAtIONs | CasEY HEstER SENIOR V.P./JOURNAL DIGItAL | MicHaEl BaRbER V.P./SALEs | JaREk SwEkoskY V.P./CONtENt OPERAtIONs | NatasHa LoREns MEDIA TEcHNOLOGY DIREctOR | CHRistina CaRdEn PHOtOGRAPHY DIREctOR | JEffREY S. Otto wEb sERVIcEs DIREctOR | Allison daVis CONtROLLER | CHRis DUdlEY SENIOR AccOUNtANt | Lisa OwEns AccOUNts PAYAbLE COORDINAtOR | MaRia McFaRland AccOUNts REcEIVAbLE COORDINAtOR | Diana GUZman IT DIREctOR | DaniEl cantREll EXEcUtIVE SEcREtARY | KRistY GilEs HUMAN REsOURcEs MANAGER | PEGGY BlakE
Choose Washington is published annually by Journal Communications Inc. and is distributed through the Washington State Department of Commerce. For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by email at info@jnlcom.com. FOR MORE INFORMAtION, cONtAct: Washington State Department of Commerce 2001 6th Ave., Ste. 2600 Seattle, WA 98121 Phone: (206) 256-6100 www.choosewashington.com VIsIt CHOOSE WASHINGTON ONLINE At bUsINEsscLIMAtE.cOM/wAsHINGtON Copyright 2013 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent. Member Member The Association of Magazine Media Custom Content Council
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businessclimate.

In Federal Way, were open for business yours

Its all within reach

2014 EDITION | VOLUMe 2

CLEAN AND GREEN

12 DIscOVER 67 EcONOMIc PROFILE 74 GALLERY

Booming composites industry benefits from a robust advanced manufacturing cluster

OVER THE LONG HAUL

BUsINEss LEGENDs BORN HERE

ALIVE AND WELL

ITs IN THEIR NATURE

Photo Gallery & Videos

busin essc limat

e.com /was hingt

ning Global Positio

INGTO D BY THE WASH

RTME NT N STATE DEPA

YOU CaN TaKe it WitH YOU

10 Reasons to Choose Washington

EV E R ET T KIRKLAND BELLEVUE S E AT T L E RENTON KENT SPOKANE W E NATC H E E 90 MOSES LAKE ELLENSBURG

FUELING NEw SOLUtIONs

THE GREAt OUtDOORs HAVE NEVER LOOKED bEttER

TAstE tHE LOcAL FLAVOR

LEFt tO THEIR OwN DEVIcEs

BUsiNess LeGeNds BoRN HeRe

Nordstrom: Built on Being the Best

Brands That Set the Bar

Washington State GDP

Source: U.S. Bureau of Economic Analysis, Current Dollar GDP

sTAff PHOTOs bY Jeff Adkins

FOrTUNE 500 COmpANIES BASED IN WASHINGTON

Company Costco Wholesale

Location Revenue Issaquah $99.1B

Fortune 500 Rank 22 35 49 168 208 227 363

Bartell Drugs: A Business That Innovates

Ben Bridge Jeweler: A Gem of a Company

Marc Bridge, Ben Bridge Jewelers vice president of marketing

Brown & Haley: Growth and Success

Ahh Relocation Made Easy

PACIFIC COUNTY ECONOMIC DEVELOPMENT COUNCIL

CleAN ANd GReeN

Premier Research Labs

Weather Science Forecasting

sTAff PHOTO bY Jeff Adkins

Wind capacity by state:

(in megawatts of installed capacity at the end of 2012)

Source: American Wind Energy Association

Washington Clean Energy Sector

States power produced by renewable sources

Source: U.S. Energy Information Administration

INFOrmATION AND COmmUNICATIONS TECHNOLOGY

ILLUsTrATION bY Elizabeth Griffin

Bainbridge Island-based Avalara helps clients manage sales tax compliance.

ICT in Washington State

Embrace the Cloud

INFORMA TION AND COMMUN ICATIONS TECHNOL OGY

BOEINGS EVERETT ASSEMbLY PLANT: BOEING

and equipment manufacturers, and producers of instrumentation and aircraft interiors.

Aerospace: Backbone of Economy

Aerospace Impact: By the Numbers

1,256: Companies in Washingtons aerospace cluster

CubCrafters planes are constructed in a 40,000-square-foot facility in Yakima.

BoominG compositEs indUstRY bEnEfits fRom a RobUst adVancEd manUfactURinG clUstER

sTAff PHOTOs bY Jeff Adkins

Location Revenue Issaquah $99.1B