"Innovation" is the Buzz for Economic Development By Jan Teague, President/CEO
At the Senate Economic Development, Trade & Innovation hearing today, Egils Milbergs of the Economic Development Commission reported that the key to Washington's future was to "innovate". He said that the primary driver of economic growth today is in "making something new". According to Milbergs, the state needs to understand market demand and seek to organize its stimulus efforts around business rather than government projects. I liked what he had to say and it was with a strong look at thousands of studies on what creates a strong economy. He had numerous charts to express his concepts of this new "Ecosystem model" which he said was multidisciplinary and complex.
A new group will be formed to measure innovation called the Real Time Innovation Board. They will develop multiple sets of measures to understand various industries so they can better support the creation of value in the economy. Milbergs caught my attention when he said that there were very few service industry indicators and that the new innovation board needed to understand the service industries better.
Senator Shin asked him about the growing influence of China, which is predicted to be the dominate power in a few short years. Milbergs responded that we didn't have to accept that prediction. Our entrepreneurial culture sets us apart. The challenge is that our culture is a bottoms up approach with small business in the driver's seat. There is no central plan for innovation. When Senator Shin pointed out that education was the key, Milbergs said that education itself needed to be innovative and that only 19 out of 100 students get a four-year degree.
Milbergs said we can't just subsidize public works; the focus has to be on business investment. In the short term he thinks that funds should be invested in "innovation ready business investment, not shovel ready". He encouraged the committee to engage with the private sector to find solutions.
Senator McCaslin, a 29 year veteran legislator, noted that our country has a culture of a sense of urgency while other countries might simply say, "they will get to it later". McCaslin agreed that our culture will keep us competitive.
This was an encouraging set of comments today from the committee and its presenters. The committee also announced that it was forming a subcommittee to look at international trade issues.
Gregoire pledges to create jobs to heal the economy
Gov. Christine Gregoire today said she would introduce a Washington Jobs Now plan she hopes will create 20,000 jobs in the next two years to help the state recover from recession.
In her inaugural address to the Legislature, Gregoire called on legislators and state residents to show courage and generosity to help struggling businesses and families recover from the weakening economy.
"Our work is to help our families and businesses survive," Gregoire said. "We must renew hope for Washingtonians who are suffering today."
Much of the state's economic recovery will come from completing 1,400 transportation projects worth $3 billion in construction, Gregoire said.
Gregoire also proposed a temporary increase in unemployment insurance benefits and a temporary tax cut to help struggling businesses.
Gregoire also called for streamlining state government and the elimination of numerous state boards and commissions. She likened the state's challenges in the current economy to those President Franklin Roosevelt faced in creating jobs to help the nation recover from the Great Depression.
"The first thing President Franklin Roosevelt did was put people back to work," Gregoire said.
Gregoire also appealed to the Legislature to overcome its partisan spirit to tackle the economic challenges the state faces.
"The people of Washington do not want partisan politics," she said. "I challenge all of us today to come together."
Businesses concerned about a cap and trade bill
The state business community expressed concern with proposed state legislation in support of a western states' initiative to reduce greenhouse gas emissions.
Such costly changes would hurt the state's already fragile economy and require a national program as opposed to separate regional efforts, business leaders agreed.
Business leaders agree too little study has gone into the adverse economic impacts to limiting greenhouse gas emissions on a regional level.
Washington state is part of the Western Climate Initiative, which includes a market-based "cap and trade" program to reduce greenhouse gas emissions 15 percent below 2005 levels by 2020. Under the plan, major energy users including retailers would reduce carbon dioxide releases and be allowed to trade for the rights to emit the gases.
In a presentation this week to business leaders, economist Kriss Sjoblom of the Washington Research Council found fault with drafts of a state "cap and trade" bill.
Sjoblom's analysis concluded that climate change "is a global problem that requires a global solution." He further said that the current state bill gives too much authority to the state Department of Ecology and that forecasts are not credible that a cap and trade system would have no adverse economic impact.
Sjoblom urged that the state Legislature oversee and provide more policy direction in formulating a cap and trade policy.
One study last year found that Washington state's economy would be hurt by current efforts to reduce greenhouse gases. Energy costs would rise, leading to lower industrial output and the loss of jobs, the study by Science Applications International Corporation found for the National Association of Manufacturers and the American Council for Capital Formation.
Washington state could lose up to 35,602 jobs by 2020 if a proposal to lower greenhouse gases became federal law, the study found.
State retail sales drop 4.2 percent in 3Q 2008 National sales dropped 9.8 percent in December
The latest state and national taxable retail sales reports reflect the overall slowdown in the state and national retail economies.
Overall state taxable retail sales declined 4.2 percent in the third quarter of last year, covering the months of July, August and September.
Nationally, retail trade and food services sales dropped 9.8 percent in December, compared to the same month a year ago, U.S. Census Bureau reports show. The national figures were reported to a state Senate committee today by Eric Swenson, a senior economic forecaster, for the Economic and Revenue Forecast Council.
In the narrower "retail trade" category, which excludes construction, services and non-retail businesses, sales statewide were down 6.2 percent in the third quarter, compared to the same time the year before.
Among major industries statewide, the largest sales drops were 19.6 percent for auto dealers, 9.6 percent for garden equipment and supplies and 4.9 percent in construction.
To read Department of Revenue results for all counties and selected cities, click here.
Sources: Department of Revenue, U.S. Census Bureau
Trans fat elimination deadline approaching
The second phase of King County's artificial trans fat elimination program goes into effect on Sunday, Feb. 1 of this year.
On that date, no products containing 0.5 of more grams of artificial trans fat per serving will be allowed in King County establishments including restaurants, bakeries, delis, temporary events and grocery stores. Restaurants must find alternatives for margarine and all other products containing trans fat before the beginning of next month.
The rule does not apply to products sold in the manufacturer's original, sealed package such as potato chips, muffins or cookies.
The first phase of the program, which went into effect May 1 of last year, banned the use of fry oils, spreads and shortenings with 0.5 or more grams of artificial trans fat per serving.
The King County Board of Health reports strong compliance with the first phase of the program, with nearly all inspected facilities being found in compliance.
"Compliance with phase one has been outstanding - almost one hundred percent of facilities inspected are complying with the regulation," said Hilary Karasz, public information officer for the King County Board of Health.
As of January of this year, the new law also required King County chain restaurants with more than 10 national locations to display calorie, fat, sodium and carbohydrate information on menus.
Source: King County Board of Health
Gasoline pricing legal requirements outlined
State Weights and Measures officials have issued an alert about state laws related to the proper posting of gasoline prices, particularly at stations that price gasoline at different levels for different customers.
Multi-tiered pricing, for example, would apply for holders of grocery cards who can obtain discount gasoline prices by obtaining a store card.
The alert was issued when state inspectors found stations that were not property posting prices.
In general:
*Conditions of sale must be clearly posted and understandable. *Conditions of the sale must be next to the posted price *The lowest possible gasoline price may be posted by itself. *It is not necessary that all unit prices be simultaneously displayed.
Gasoline dealers unclear about state law related to cash, credit and discount pricing and signage are invited to contact the Olympia Weights and Measures office at 360-902-1857.
Source: state Weights and Measures program
Statewide computer, TV recycling begins
The E-Cycle Washington program has begun around the state.
As a result, households, small businesses, schools and school districts, small governments, special purpose districts and nonprofits and charities can recycle electronic products free of charge at collection sites around the state.
Eligible items for recycling include televisions, computers (portable or laptops) and computer monitors. Peripherals such as keyboards, mice and printers are not included in the program.
The program, financed by the product manufacturers, includes more than 200 collection sites in every county in the state and city or town with more than 10,000 in population.
To find a drop off center near you, either call 1-800-RECYCLE or visit ecyclewashington.org.
Source: Department of Ecology
New children's products safety laws apply starting in February
A new children's product safety law goes into effect on February 10.
Beginning on that date, children's products cannot be sold if they contain more than 600 parts per million (ppm) total lead. Certain children's products made on or after February 10, 2009 cannot be sold if they contain more than 0.1 percent of certain specific phthalates or if they fail to meet new mandatory standards for toys.
The total lead limit is scheduled to drop to 300 ppm on August 14 of this year.
Sellers of used children's products, such as thrift and consignment stores, are not required to certify that the products meet the new lead limits, phthalates standard or new toy standards.
Though the new law does not require resellers to test their products, they cannot sell products that exceed the new limits. Therefore, the Consumer Product Safety Commission urges reseller to avoid children's products likely to contain lead unless they have testing information to indicate the products contain less lead than the new limits.
For more information on the new standards, visit CPSC by clicking here.
Port retail container traffic keeps falling
Retail cargo volumes through U.S. ports fell for the 17th straight month in December, according to the monthly Port Tracker report.
Volume for 2008 was estimated to be 15.3 million Twenty-Foot-Equivalent Units, a 7.1 percent decline from 16.5 million TEUs in 2007. One TEU represents one 20-foot container or its equivalent.
Due to the recession and weak consumer demand, Port Tracker projects that January volumes are expected to be down 6.3 percent compared to a year ago.
Among the facilities that Port Tracker reviews are the Tacoma and Seattle ports.
"2008 was a slow year for the ports for the simple reason that it was a slow year for retail sales," said Jonathan Gold, Vice President for Supply Chain and Customs Policy for the National Retail Federation. "We don't expect a significant increase in traffic at the ports until retail sales return to normal levels, and even then retailers will be careful not to overstock."
Source: National Retail Federation
Home Depot recycles fluorescent lights
Owners needing to safely dispose of expired fluorescent light bulbs can do so for free at Home Depot stores.
Customers may bring expired, unbroken fluorescent light bulbs to any Home Depot returns desk. Store associates then turn the bulbs over to an environmental management company that packages, transports and recycles them.
Home Depot also is converting the showroom space in its U.S. stores from incandescent bulbs to more energy-efficient compact fluorescent lights.
According to the Environmental Protection Agency, switching to fluorescent lighting will result in a reduction of greenhouse gas emissions.
The Washington Retail Association, WRA, is a 501 C 6 trade association formed to advocate for Washington State’s retailers at the local, state and national level. Since 1987, the WRA has protected Washington's retailers from unreasonable taxes, fees, regulations and legislation. The efforts of the WRA benefit all Washington state retailers and help fuel statewide economic growth.
