Creating a Cruiser-friendly climate

By Bryan Corliss

Herald Writer

SEATTLE — The Boeing Co. may be committed to building the Sonic Cruiser, but Puget Sound needs to make a commitment of its own to ensure that the new jet is built here, regional economic development officials said Friday.

The economic development councils of Snohomish, King, Pierce and Thurston counties Friday unveiled a report outlining business conditions in the four counties — a report commissioned last spring after Boeing announced it was moving its corporate headquarters to Chicago.

Perhaps the most important finding in the report is that "there’s nothing dramatically new that we didn’t know," said Reid Shockey, Snohomish County Economic Development Council president.

It chronicles concerns from businesses in the region that find it hard to compete given local problems with transportation, education and permitting processes for new construction.

Shockey and other business leaders vowed to lobby Olympia and local governments for policies to improve the business climate.

"Our ability to globally compete is obstructed by our current public policy environment," said Frank Young, chairman of the Seattle-King County Economic Development Council. "Problems with our physical infrastructure, tax and regulatory policy, the education system and the energy supply must be addressed now — not five, 10 or 20 years from now."

The report was prepared by the private Washington Research Council. Among the problems it found:

Many Puget Sound business leaders see transportation snarls as a major problem and are frustrated that the Legislature has failed to come up with a plan. Road construction was the No. 1 thing business people say government could do to improve the business climate, the report said.

Along with roads, the region has failed to build enough sewer and water systems to keep pace with growth. According to one unnamed business person quoted in the study, "We’re doing pretty good on cabling, DSL, technology stuff, but it’s the simple old stuff we’re failing at."

The high cost of housing is forcing local businesses to pay higher salaries, and it hurts efforts to recruit new employees. Many people who work in King County have moved to Snohomish and Pierce counties in search of affordable homes — a fact that contributes to traffic congestion, the study said.

Washington residents have relatively high education levels, but there is a shortage of people with science and technology degrees. The state needs better coordination among its workforce training programs, the study said. The state also is facing a shortage of health care workers.

There’s a wide range of discontent with regulatory processes. In some cases, it’s not the regulations themselves but the inconsistent way they’re interpreted or enforced, the study said. Businesses that do get permits quickly say it’s because of relationships with regulators.

Business people are unhappy with the tax system, under which they pay about half the load, the study said. Many are unhappy with the business and occupation tax, while others think the state’s unemployment insurance taxes are too high.

The Snohomish County EDC already has formed task forces to study most of these issues and to come up with proposed solutions, Shockey said.

It’s time to take action, said Alan Mulally, chief executive of Boeing Commercial Airplanes, who spoke at the meeting where the report was released.

"I don’t think we need to look at a lot more data," Mulally said. "We have to decide if we want to do something about it."

You can call Herald Writer Bryan Corliss at 425-339-3454

or send e-mail to corliss@heraldnet.com.