Manufacturing 2014 Manufacturing Report

Washington Manufacturing Manufacturing in the state of Washington is an international success story in growth and innovation. From commercial airplanes and heavy-lift cranes to hydraulic jacks, semiconductors and doors, Washington’s manufacturers are recognized around the globe as leading industry innovators. Yet, at the same time, thousands of manufacturing jobs continue to go un- filled. A lack of skilled workers, able to meet the demands of large and small manufacturers statewide, continues to plague the industry. Workforce training must remain a priority, as should efforts to educate future employ- ees about the benefits of this powerful economic engine for the state’s economy. Consider that Washington state manufacturers: • Produce an annual output of $46.5 billion (2012) • Export $67.3 billion in goods annually (2013) • Offer average annual compensation of $82,902 (2013) • Employ 286,300 Washingtonians (2013) ANNUAL OUTPUT OF EXPORT 46.5 billion $ 67.3 billion $ IN GOODS ANNUALLY ANNUAL OUTPUT OF EMPLOY EXPORT 46.5 billion $ 67.3 billion 286,300 $ IN GOODS ANNUALLY WASHINGTONIANS 82,902 $ AVERAGE ANNUAL COMPENSATION EMPLOY 286,300 WASHINGTONIANS 82,902 $ AVERAGE ANNUAL COMPENSATION Key Findings Spring and Summer 2014 the AWB Institute held manufacturing listening sessions in Moses Lake, Spokane, Tri-Cities, Vancouver, Everett, Mount Vernon, and Olympia. The goal: to hear first-hand from Washington manu- facturers about the economic, regulatory and workforce challenges faced by the industry. Key findings from these sessions include: • A lack of predictability and reliability in the state’s regulatory environment stymies manufacturing growth. • Tax incentives play a vital role in the growth of the manufacturing industry and must be protected. • The minimum wage issue is a prominent decision factor when expanding manufacturing facilities. • The workforce pipeline is not growing at a pace needed to meet industry demand. A lack of predictability and reliability in the state’s regulatory environment stymies manufacturing growth Washington state businesses are regulated by various local, state and federal agencies. While regulations and oversight are necessary, Wash- ington state manufacturers are hesitant to expand their businesses be- cause of an unpredictable and unreliable regulatory environment. Over- regulation from all levels of government increases costs for expansion and job growth projects.