Let me start by acknowledging that we are in the midst of an unprecedented recession that is having major impacts on our businesses and citizens.
However, the continued drumbeat of negative financial headlines is masking facts I believe point to an ultimate turnaround in the regional economy.
The Columbia River Economic Development Council believes that supporting the expansion and retention of our existing businesses as an equal, if not greater, priority than business recruitment. Toward that end, we doubled the number of our calls on the county’s major employers.
While we are only three months into these efforts, I am seeing several hopeful trends.
First, while our businesses are suffering with the general economic malaise, they continue to plan for growth. Our contacts report that they are making acquisitions, have new products and new potential markets that will all require new capital investments and new hires when implemented.
The only open question is when, and that is largely dependent upon the return of rational credit markets and consumer spending. This is very similar to SEH America’s recent announcement that it is planning a multi-million-dollar expansion and hundreds of new jobs – when markets rebound.
Second, many of our businesses are reporting reductions in their employee counts. However, unlike past economic downturns, more of our firms are using innovative techniques to maintain access to their workforce for a return to normal times.
Companies are increasingly using furloughs, partial layoffs, loaned executives and job sharing to avoid the disruptions of permanent layoffs. Unemployment is more than double digits, but it may be higher if not for the innovation of our businesses.
Last, as with all recessions, the CREDC is seeing a burst of entrepreneurial activity. Downsizing at technology firms such as HP and Intel means extremely high skilled engineers and managers are being laid off. Many of them are finding their way to the CREDC offices as they explore their ideas for new businesses.
Southwest Washington’s quality of life makes for a ‘sticky’ labor force that will support the return of the economy.
I believe there will be more economic pain before this recessions ends and we enter a new cycle of growth in Southwest Washington. However, the foundation for that growth is clearly visible in our existing businesses.
