from the chair
Optimism Meets Opportunity
Wendy Sancewich
2016 was a busy and interesting year , and not just in politics !
I humbly accepted the gavel from our leader of two years , Mike Schwenk , last September to serve as the AWB board chair for the next year . ( We are excited to note that Mike is stepping into an important new role at the AWB Institute , so he is not going far .) Stepping into the board chair role is a great honor and responsibility as we embark on the 2017 legislative session and navigate under the leadership of a new federal administration .
In 2016 , we saw the tech-fueled economy boom in the Seattle region , while other parts of the state continue to lie in wait for the same economic recovery .
The uneven economy has a lot to do with uncertainty in the state — new taxes and regulations being tossed around in ways that seem harmless when the Legislature is in town , but cause businesses to press the pause button , while they evaluate the impacts on their resources and bottom lines .
A state of uncertainty does not have to be the future for Washington . We are optimistic that the state has the solid foundation to harness potential and create opportunities in communities large and small .
That ’ s , in part , because we have in our hands an economic driver unlike others : a vibrant manufacturing sector .
At the 2016 Manufacturing Summit in October , I offered attendees insights from RSM ’ s 2016 Monitor Report , which takes a close look at national and international trends in the manufacturing sector .
By the numbers , manufacturing represents 13.5 percent of the nation ’ s economic output , 9 percent of the workforce , packs a $ 60 billion economic impact and workers earn an average of $ 87,000 per year . And , for every dollar of manufacturing activity , there is a multiplier of $ 1.32 . That ’ s a lot of spending power for our consumer-driven economy . Some of the other bright spots , according to the report , are that manufacturers expect to increase their workforce by 6 percent . And 40 percent of the survey ’ s respondents say business for American manufacturers is thriving , while 55 percent say it is holding steady .
Washington state knows better than most that companies that build things — whether it ’ s aerospace or music stands — also build communities and support their employees and families .
Just like our state ’ s manufacturers must plan and proceed with making decisions that ensure a competitive edge , so must our state lawmakers .
Being a champion of a competitive tax structure and regulatory climate is absolutely critical . Equally as important is the need to ensure a prepared and skilled workforce is available to the employers in Washington state . Employers need to be confident that they can fill the positions that are currently open and that they will be able to fill the positions that will be opening over the next few years as a large percentage of the workforce nears retirement age .
More than half of the companies surveyed expect to increase their workforce . Yet , the U . S . already has 370,000 unfilled jobs in the manufacturing sector , the highest number since we came out of the Great Recession .
This is exactly where our optimism meets real opportunity for Washington .
As AWB continues to live its Mission and Vision to be a “ unifying voice for economic prosperity across Washington state ,” a great place to start is ensuring a bright future for today ’ s workers and the next generation Washingtonian .
We understand 2017 will bring with it challenges ; there will be debates on higher taxes , but there will also be an opportunity to remedy K-12 education funding and improve student outcomes and readiness for the workforce .
To state leaders I say , “ Employers are the solution .” We are used to innovating and thinking outside the box to find solutions . So , I invite lawmakers and others to work alongside us . There is a common goal — and it comes in the form of opportunity for all . I look forward to getting to know you and working with all of you ; to take advantage of the great opportunity we have here in Washington , during my year as board chair .
16 association of washington business