Growth led by construction-related activity
Boosted once again by the construction industry, Clark County’s taxable retail sales for 2005 grew 12.7 percent from a year ago to $4.58 billion, according to the Washington State Department of Revenue. Construction sales in the county grew by 18.9 percent to $1.05 billion.
Retail trade sales, a representation of average consumer purchases such as vehicles, clothing and household items, were $1.95 billion. Scott Bailey, regional economist with the Washington Employment Security Department, said results show a solid bounce-back from the recession.
"2005 was the second year of good job growth, giving people more discretionary income," he said.
The strong new-construction market likely contributed to increased sales in certain markets, said Bailey, as homeowners began outfitting their homes. Building materials sales increased 24.3 percent to $276.9 million. Furniture and home furnishings sales grew 23.9 percent to $70.6 million. And electronics and appliances sales were up 17.1 percent to $42.5 million. Discretionary incomes were also boosted by an increase in mortgage refinancing, which allowed homeowners to take advantage of the value of their homes.
Sales at general merchandise stores were $505.7 million, up 16.3 percent.
Following five straight years of declines, the accommodations segment, which includes hotel and motel sales, posted a strong rebound with growth of 40.5 percent to $31.1 million.
Kim Bennett, president of the Southwest Washington Convention and Visitors Bureau, said the addition of the Hilton Hotel and Convention Center created some new demand, particularly with its larger meeting spaces, but was not solely responsible for results.
"The market in general is rebounding," she said.
Consumer and leisure and business travel is on the rise, said Bennett.
Following the terrorist attacks of Sept. 11, conference attendance and individual business travel declined.
"When times are tough, that’s what businesses cut," said Bennett.
Red Lion at the Quay and Heathman Lodge, which has plans for expansion, are also showing good number, said Bennett.
Room rates are also on the rise. Bennett said rates averaged $65.45 per night in 2005 and year-to-date they have reached $74.38, up 13.6 percent.
The county’s restaurants, food service and drinking places posted a gain of 6.7 percent to $365.9 million.
Wholesale trade also recovered from a slight decline last year with sales of $304.1 million, up 8.5 percent, in 2005. Manufacturing showed continued growth with sales of $114.3 million, an increase of 12.3 percent. And the professional, scientific and technical services segment grew 22.8 percent to $55.2 million.
Bailey suspects Clark County will remain on a growth pattern, while the nation may be impacted more by a cooling housing market. Continued population growth will carry the local market, he said.
Vancouver posted total retail sales of $2.48 billion, up 11.5 percent. Retail trade sales were $1.12 billion, up 12.2 percent, including Building materials sales of $118.1 million, up 62.9 percent. Vancouver’s construction industry grew by 14.4 percent to $452.3 million.
The only other Clark County city included in the report was Camas, which had total retail sales of $156 million, an increase of 16.5 percent. Retail trade sales were up 9.4 percent to $40.8 million, which included a 15.3 percent increase for food and beverage store sales to $5.8 million. Construction sales in Camas increased 38.5 percent to $58.1 million.
Cowlitz County posted strong total retail sales of $1.28 billion, a jump of 16.7 percent, including total retail sales in Longview of $703.5 million, an increase of 15.7 percent.
Statewide, total retail sales were $101.37 billion, up 9.3 percent, the biggest gain since 1990’s increase of 9.8 percent.
Construction totaled 18 percent of all sales followed by new and used car dealers, 9.3 percent; general merchandise stores, 8.8 percent; and restaurants, food services and drinking places, 7.6 percent.
