Steady growth expected in Kennewick

By John Trumbo, Tri-City Herald

Published Monday, Mar. 12, 2012

KENNEWICK -- Kennewick rode out the economy's difficult ride fairly well last year and this year should hold steady, finance and housing officials recently told the city council.

Banks will continue to be tight-fisted with their cheap money, while regulators increase scrutiny and credit unions enter the loan market, said Ben Rutledge with Gesa Credit Union.

Rutledge noted that a benefit of the recession was that it "weeded out bad commercial lenders," which gave the credit unions their opening to invest $90 million in the Tri-Cities in the past three years.

Most of the money was for real estate loans, with agricultural loans receiving the second largest share.

Rutlege said to expect minimal economic growth this year and flat interest rates through 2014, and tougher rules and regulations and a debt crisis that will affect Europe and the U.S.

In a word, Rutledge described the future as "uncertainty."

And Dave Retter, owner and broker of Windermere Real Estate in the Tri-Cities, agreed that Kennewick's housing market "isn't as rosy as 11 years ago."

But he said Kennewick has been a good market, with 42 percent of the people moving to the area choosing homes in Kennewick. Still, 73 percent of the houses sold in Kennewick in the past three years have been resales, he added.

The open spaces of the past that saw big residential developments such as Hansen Park almost are gone, so future development will have to look at the Southridge area and pockets of property for infill projects, he said.

"The challenge is how do we do infill and make it affordable?" Retter said. Reducing some requirements that gobble up land, such as curbs, gutters, sidewalks and mow strips, would help, he said.

"If there is no change, people are going to Pasco," Retter said.

"I don't think we're going to see any boom (this year). We'll just be consistent," he said.

Renee Dahlgren of the Home Builders Association of the Tri-Cities said Kennewick is "the sweet spot" of the Tri-Cities for being the most consistent with the kind of growth and home values desired and for having great stability in its market.

The number of single-family home permits has continued upward during the recession while the average single-family home value also increased, she said.

Kennewick's advantage in the Tri-Cities is its comparatively lower permit costs, and having a streamlined permitting process at city hall, Dahlgren said.

She also noted:

* Housing Predictor in September 2011 ranked Kennewick the second best housing market in the U.S.

* Farmers Insurance Group in December 2011 named the Tri-Cities the No. 1 most secure place to live in the U.S. among mid-sized communities.

* Milken Institute in December 2011 ranked Tri-Cities the 10th best-performing community in the country.

But being well positioned to handle growth and having the lowest interest rates in history with a 3 percent vacancy rate doesn't mean 2012 will be a growth year, she said.

National recovery and getting Hanford waste stabilized are unresolved big issues, Dahlgren said.

She also told Kennewick officials to expect a "flat" 2012 for housing.

Read more here: http://www.tri-cityherald.com/2012/03/12/1860998/steady-growth-expected-in-kennewick.html#storylink=mirelated#storylink=cpy

Experts positive about Tri-Cities' economic future

By Kristi Pihl, Tri-City Herald

Published Thursday, Jan. 19, 2012

Though growth has slowed, the Tri-Cities should continue to see job gains as it has for the past 20 years.

Labor industry experts spoke optimistically Wednesday about the outlook for the Tri-City economy.

The Tri-Cities may see jobs increase by 2.4 percent a year through 2014, with job growth slowing to 1.6 percent through 2019, state regional labor economist Ajsa Suljic told more than 200 people at the Tri-Cities Regional Economic Outlook.

Health care and social assistance, manufacturing and educational services are expected to lead the anticipated job growth, she said at the annual event sponsored by the Tri-City Development Council.

Health care spending should continue to increase and health care will remain a major economic driver for the Tri-City area, said Rand Wortman, CEO of Kadlec Health Systems.

But employers will continue to struggle with the cost of health insurance and consumers are likely to pay more for insurance that offers less coverage, he said.

Tri-City hospitals already have seen the amount of charity care they provide increase dramatically, Wortman said.

Richland's Kadlec Regional Medical Center provided $1.5 million in care to people who were not billed because they could not afford to pay for it in 2000. That increased to $26 million last year. The actual cost to the hospital was about half that.

Hanford, Pacific Northwest National Laboratory, agriculture, wine and health care have helped insulate the local economy, Wortman said.

Wine and agriculture bring money into the area, he said.

"These are good times for agriculture," said Don Sleight, president of AgReserves, the parent company of AgriNorthwest.

The cost of agricultural land has increased, and worldwide food prices are stabilizing because the supply of food is not as tight, Sleight said.

In real estate, the Tri-Cities saw a dip in the number of homes sold in 2011 because of the "fear factor," said Paul Roy, president of the Tri-City Association of Realtors and managing broker for Coldwell Banker Tomlinson Associated Brokers.

Pending Hanford layoffs and national economic news caused consumer confidence to waver, he said.

But home sales picked up in the fall, and the market remained stable. The average price of homes slightly increased, the inventory of homes was steady and there were fewer foreclosures, Roy told the Herald.

Roy said real estate agents are hopeful about this year because a growing population should increase the demand for places for people to live.

Another good sign is that retail sales growth continues to outpace the rest of the state.

Barbara Johnson, general manager of Columbia Center mall, said the cities saw the amount of retail sales taxes climb by about 6 to 12 percent, while Benton and Franklin counties were up by about 19 percent.

Statewide, retail sales tax receipts increased by 2.5 percent, Johnson said.

"We are a retail mecca in our own right," she said.

Johnson said she expects some larger chains will continue to file for bankruptcy or close low-performing stores. But like last year, she expects to see new stores open in the Tri-Cities.

Johnson predicted a 4 percent sales gain locally and another strong holiday shopping season.

"People really came out in droves this year," she said.

Shoppers shouldn't be surprised to see more stores offering the "pre-Black Friday" sales starting Thanksgiving evening, Johnson predicted.

Kathy Moore, general manager of the Courtyard by Marriott in Richland, said she expects tourism related to sports events, conventions and leisure to also remain strong this year. But the local hospitality industry is a little unsure what will happen with business travel with the end of federal stimulus dollars at Hanford.

Tourists spend about $350 million each year in the Tri-Cities, including about $48 million in retail and $118 million at restaurants, Moore said.

The Tri-Cities is seen as a desirable market for new hotels, and about four national chains are looking to open hotels here, she said.

"New hotels will definitely come into the market as soon as funding is available," Moore said.

Read more here: http://www.tri-cityherald.com/2012/01/19/1792540/experts-positive-about-tri-cities.html#storylink=mirelated#storylink=cpy

Tri-City jobless rate falls behind U.S. pace

By Kristi Pihl, Tri-City Herald

Published Wednesday, Mar. 28, 2012

Mike Sutherland, left, owner and brewmaster of White Bluffs Brewing in Richland and marketing director Chris Collier sample a double India pale ale Tuesday in their brewing room. Demand prompted the 1-1/2 year old business to expand its production, according to the state, manufacturing is one area showing job growth in Tri-Cities. However, the area still had about 2,000 fewer nonfarm jobs in February than it did a year ago. See story below.

Demand for craft beer has prompted Richland's White Bluffs Brewing to add tanks for the 28 recipes brewmaster Mike Sutherland has created.

If all goes well, the first batch of beer from the new tanks should be finished fermenting today.

Sutherland's 1 1/2-year-old business is one Tri-City company contributing to a growth in manufacturing.

Despite an increasing number of Tri-Citians finding jobs in everything from manufacturing to financial activities in the last year, the area still had about 2,000 fewer nonfarm jobs in February than it did a year ago, according to data released Tuesday by the state Employment Security Department.

Nonfarm employment stayed steady at about 98,300 jobs in February compared to January.

The Tri-Cities now is behind the national employment trend, said Mark Berreth, regional labor economist.

Part of that stems from the Hanford layoffs from last year, he said. The area is down by 1,200 jobs in professional and business services, which includes some Hanford jobs, compared to last year.

Most other industries saw jobs stay steady or increase compared to February of last year.

The Tri-Cities had an unemployment rate of about 10.1 percent, the first double digit unemployment since January 1996, after a round of Hanford layoffs. The January 2012 unemployment rate was revised to 9.8 percent, although the original estimate was 10 percent.

The state has been seeing an increase in job opportunities and has an employment rate of 8.2 percent, Berreth said.

Benton County had an unemployment rate of 9.6 percent in February, while Franklin County's rate was at 11.5 percent.

That means 13,460 Tri-Citians were out of work and actively seeking new jobs. That's 1,920 more than a year ago.

The number of people filing unemployment claims is up to 921 in February, compared to 690 for the same month last year, Berreth said.

Overall, the Tri-Cities had 119,510 people employed in all industries in February, 1,390 less than a year ago. That includes self-employed and agricultural workers.

Some of the drop in employment likely is from self-employed workers, Berreth said. When people lost jobs in the initial recession, some of them decided to start their own business.

Manufacturing is one of the areas where the Tri-Cities has seen job growth, with 300 more workers in February than the same month last year.

At White Bluffs Brewing, marketing manager Chris Collier said they have not added employees, but they plan to expand as the demand for their pale ales and French farmhouse-style beers increases. It would be the second expansion at their production facility and taproom at the Horn Rapids Business Center.

In the Tri-Cities, construction saw a growth of about 200 jobs compared to the same time last year.

T.R. Masterson Construction of Kennewick is getting ready to build about 10 homes in the Bellerive Springs subdivision in Richland. Owner Thomas Masterson said the end of the year was slow, but home building has picked up for his company in the past few weeks.

He expects to add to his field crew of five, but Masterson said he likely will re-hire some of those he let go during the slower months. His company plans to build homes just under the $150,000 price range because they seem to be selling well in the Tri-Cities, he said.

Meanwhile, hospitality is up by about 100 jobs from last year, even though the industry is seeing a decline from the last two years when Hanford stimulus dollars increased business travel, said Kris Watkins, president and CEO of the Tri-Cities Visitor & Convention Bureau.

Hotel occupancy was off 11 percent in January and February compared with the same months in 2011, she said. While the Tri-Cities has become more diversified in tourism with sports, conventions and leisure travel, Hanford business still plays a large role, she said.

Financial services increased by 100 jobs from a year ago. Berreth said that is promising because banks and financial advisors were among the first areas hit by the recession.

WorkSource Columbia Basin continues to see a steady stream of job seekers, said area director Michelle Mann.

WorkSource Columbia Basin's job fair March 15 resulted in a number of follow-up interviews, which is a good sign, Mann said. But it's too early to determine how many of the 400 attendees found employment.

The annual agricultural job fair runs from 10 a.m. to 2 p.m. May 19 at WorkSource Columbia Basin's Kennewick office. Mann said they moved the job fair to a Saturday because last year, job seekers lined up out the front door and to the street.

Employers then will start recruiting for cherry harvest, food processing and corn, she said.

Benton, Franklin and Walla Walla counties saw a growth of 9.7 percent in farm employment in February compared to the same month in 2011. There were about 11,260 farm workers this February, compared to 10,260 last February, according to the state's monthly agricultural employment and wage report.

Asparagus harvest won't start until April. Jim Middleton, owner of Midd Farms north of Pasco, said he hasn't seen spears on his 130 acres.

Harvest depends on the weather, Middleton said. It is labor intensive because every spear is harvested by hand.

Middleton expects he will hire about 50 workers for the 10-week harvest. Most will be those he hired last year. "It's a marathon," he said.

February unemployment rates for area counties are: Adams County, 11.5 percent; Columbia County, 12.3 percent; Grant County, 12.3 percent; Yakima County, 11.9 percent and Walla Walla County, 8.4 percent.

-- Kristi Pihl: 582-1512; kpihl@tricityherald.com

Read more here: http://www.tri-cityherald.com/2012/03/28/1882329/tri-city-jobless-rate-falls-behind.html#storylink=mirelated#storylink=cpy

Richland, Washington, named among the "Best Places to Launch a Second Career "

U.S. News and World Report: Best Places to Launch a Second Career

College towns and centers of healthcare or state government tend to make great bets.

By Emily Brandon , Kerry Hannon

Posted: September 16, 2010

Many seniors are going to be employed past age 65, both for the money and because they enjoy working. But jobs aren't exactly easy to come by right now. The unemployment rate for those 55 and older was 6.9 percent in July, more than double what it was in December 2007.

That rate varies considerably by location, however. Baby boomers in towns with relatively vibrant economies will obviously have a much easier time finding work than those in cities where the going has been tough. To zero in on especially good places to launch a second career after stepping out of the first one, U.S. News applied its "Best Places to Retire" search tool powered by data from real estate information provider Onboard Informatics and looked for locales with below-average unemployment and a solid record of job creation over the past decade. We focused on spots with industries known for hiring older workers and considered the cost of living and such amenities as access to medical facilities and recreational opportunities.

You may be able to improve your odds of landing a new job, for example, if you're willing to relocate to a university town such as State College, Pa., or Ames, Iowa. Thanks to their solid economic base, college towns are known to weather recessions better than most places. Many also have plentiful affordable housing. And as a bonus, universities typically provide people in the surrounding community access to mind-expanding speakers, performances, and a rich range of sporting events.

Alternatively, cities with a large number of government jobs (such as Lincoln, Neb.) or positions in the healthcare industry (Lubbock, Texas) have generally been able to avoid the worst of the economic decline....


Richland, Washington
Population: 44,344
Median home price: $180,000

The Richland region, which includes the nearby cities of Kennewick and Pasco, added 3,300 jobs to the local economy over the past year—more than any other metro area in the country.

One big reason: It's home to Washington State University-Tri-Cities and the Energy Department's Pacific Northwest National Laboratory. The city was developed by employees of Hanford Engineer Works, a company that helped produce the atomic bomb. Today, a number of companies and government agencies employing more than 11,000 people are working on a massive cleanup project at the Hanford site, where reactors were deployed for decades to produce plutonium. For example, Bechtel and the DOE are developing a cutting-edge waste treatment plant to convert hazardous waste to glass.

Richland sits on the Columbia River within easy reach of the Yakima and Snake rivers, which means boating and plenty of outdoor attractions. Homes are affordable, and the cost of living is below the national average.

To read the whole article and the other cities listed go to: Best Places to Launch a Second Career - US News and World Report

Tri-City job growth marches on

By Pratik Joshi, Herald staff writer

Nonfarms jobs in the Tri-City region grew more than 3 percent since April last year. Food processors like Twin City Foods north of Pasco provide more than 4,000 jobs in Benton and Franklin counties. See business story below.  

Federal stimulus money continues to fuel job growth in the Tri-Cities.  

Nonfarm jobs grew by more than 3 percent -- from 94,500 in April 2009 to 97,400 last month-- thanks largely to hiring by firms helping clean up Hanford, said Ajsa Suljic, the new regional labor economist for the Tri-Cities. Most jobs were in professional and business services, said Suljic, who recently replaced Dean Schau.

The latest count also shows 500 new jobs have been added since March. "It's a good sign," Suljic said Tuesday after the state Employment Security Department released monthly employment data.
The gains were in construction, education and health services, professional and business services, leisure and hospitality, and trade transportation and warehousing.

Monthly job growth in the financial and retail trade sectors remained flat, though over the year the retail industry added 800 jobs for a total of 11,800. The local government and education sector lost about 100 jobs because of budget cuts.

The increased availability of seasonal agricultural jobs made many start looking for jobs again, adding 1,830 people last month to the work force, which stood at 130,210 in March.

Those jobs also helped trim the local unemployment rate from 8.3 percent in March to 6.7 percent last month, the largest drop since April 1993, Suljic said.

Employers remain cautious about hiring, but growth in labor force and relatively stable employment in retail, leisure and hospitality industries reflect positive trends in consumer confidence, she said, which will eventually spur local hiring.

The statewide unemployment rate fell from 9.5 percent in March to 9.2 percent in April, the first decline in more than three years.

"We may have moved off from the bottom. Looks like a trend to some degree at this point," said Dave Wallace, acting chief economist with the Employment Security Department.

The state added 5,800 nonfarm jobs last month, bringing the net gain to 14,800 nonfarm jobs in the first four months of 2010. Increased employment in construction, leisure and hospitality, retail trade, manufacturing, education and health service augurs well, Wallace said.

Both economists said it's hard to fathom how robust the national and regional recovery will be.  "We are not out of the woods yet," said Candice Bluechel, business services outreach manager at WorkSource Columbia Basin in Kennewick. She said every day at least 600 unemployed people still walk through the door at WorkSource. Many come to the Tri-Cities hoping to find jobs after they learned from news reports about the area's stable economy, which has weathered the recession better than a host of other communities.

Many local industries including food processing provide stable jobs, she said. But they can't absorb the influx of workers, she added.

Workers with technical, specialized skills, particularly in health care, may be able to find jobs with relative ease in the Tri-Cities, she said.

More seasonal agricultural jobs will become available in the months ahead, she said.

In Washington, an estimated 306,692 people were unemployed and looking for work.
Unemployment rates, not seasonally adjusted, as reported in other metropolitan areas around the state were: Bellingham, 8.0 percent; Bremerton, 7.2; Longview, 11.9; Mount Vernon-Anacortes, 9.8; Olympia, 7.5; Spokane, 8.8; Tacoma, 9.2; Wenatchee, 8.2; and Yakima, 9.0.

These labor market areas also were reported: Aberdeen, 12.5 percent; Centralia, 12.4; Ellensburg, 8.1; Moses Lake, 9.2; Oak Harbor, 8.5; Port Angeles, 9.3; Pullman, 5.5; Shelton, 10.3; and Walla Walla, 6.5.
Unemployment rates in other counties were: Adams, 7.4 percent; Asotin, 7.2; Chelan, 8.4; Clark, 13.7; Columbia, 10.0; Douglas, 7.9; Ferry, 13.2; Garfield, 7.0; Jefferson, 8.8; King, 7.5; Klickitat, 9.3; Lincoln, 8.0; Okanogan, 10.2; Pacific, 11.9; Pend Oreille, 12.5; San Juan, 6.4; Skamania, 12.4; Snohomish, 8.9; Stevens, 12.0; and Wahkiakum, 12.3.

Pratik Joshi: 582-1541; pjoshi@tricityherald.com; Business Beat blog at www. tricityherald.com

Read more: http://www.tri-cityherald.com/2010/05/19/1020196/tri-city-job-growth-marches-on.html#storylink=mirelated#ixzz0zjTfzet2

Tri-Cities keeps producing jobs

By Pratik Joshi, Herald staff writer 

The Tri-Cities continued to show job growth last month, with a total of 96,800 nonfarm jobs -- an increase of 3.9 percent over the same month a year ago.  State employment statistics released Tuesday indicated a one-month gain of 1,400 nonfarm jobs in March over the month before.

Most of the annual job growth occurred in manufacturing, professional and business services, retail trade and the government sector, which included positions at local schools and with the U.S. Census Bureau. The one-month gain came from the trade, transportation, warehousing and utilities sector, retail trade industry, administrative and support services, and the leisure and hospitality industry. The financial sector saw no change, with 3,200 jobs. The number of workers in construction also stayed even, at 6,100.

"It's nice, but there are no guarantees," said Dean Schau, regional labor economist. Federal stimulus money has helped cushion negative effects of the recession, but the community eventually will need to diversify the economy and create other good-paying jobs, he said.

The number of workers in Benton and Franklin counties grew from 129,150 in February to 130,750 in March. Of those, 10,680 were unemployed.

The area's unemployment rate dropped marginally from 9.0 percent in February to 8.2 last month. People who are unemployed but not actively seeking work are not counted in the unemployment rate.

WorkSource Columbia Basin had about 900 jobs available on Tuesday, said Candice Bluechel, business services outreach manager at WorkSource.   

Employers are looking for a variety of workers including plumbers, pipe fitters and steamfitters, medical aides, network technicians, bookkeepers, diesel mechanics, office staff, customer service representatives, merchandisers, managers and landscape workers, she said.

Mike Manning, manager at the Ranch & Home store in Kennewick, said he recently hired four workers and may hire more as needed for spring and summer.  "Business has been good," he said, adding that customers also are buying big-ticket items.  Bluechel said she hopes more jobs, especially seasonal positions, will become available in the months ahead. But she said unemployed workers will continue to find that looking for a job remains very competitive.

Word about the Tri-Cities' relative resistance to the recession has drawn a lot of new workers to the area, Schau said, adding, "I'd hate to be unemployed."

Statewide, an estimated 1,600 nonfarm jobs were added in March. That marked the state's second increase in job numbers in three months following 13 consecutive months of job losses from the end of 2008 through 2009.

"This recovery is going to take time but the latest job gains are another positive indicator that we're on the right track," said Employment Security Commissioner Karen Lee.

Over the year, the state continued to show a loss in jobs, with 67,800 fewer nonfarm jobs last month than in March 2009 -- a 2.4 percent decrease. Nationally, employment was down 1.8 percent for the same period. The state's unemployment rate for March inched up by one-tenth of a percent to 9.5 percent.

Unemployment rates, not seasonally adjusted, as reported in other metropolitan areas around the state were: Bellingham, 9.5 percent; Bremerton, 8.5; Longview, 13.5; Mount Vernon-Anacortes, 11.5; Olympia, 8.6; Spokane, 10.5; Tacoma, 10.8; Wenatchee, 9.9; and Yakima, 10.6.

These labor market areas also were reported: Aberdeen, 14.5 percent; Centralia, 14.2; Ellensburg, 10.1; Moses Lake, 12.0; Oak Harbor, 10.0; Port Angeles, 11.0; Pullman, 6.5; Shelton, 12.3; and Walla Walla, 8.0.

Unemployment rates in other counties were: Adams, 11.8 percent; Asotin, 9.0; Chelan, 10.1; Clark, 14.8; Columbia, 11.9; Douglas, 9.4; Ferry, 16.5; Garfield, 8.9; Jefferson, 10.5; King, 8.1; Klickitat, 11.2; Lincoln, 9.9; Okanogan, 12.5; Pacific, 14.3; Pend Oreille, 15.7; San Juan, 8.3; Skamania, 14.7; Snohomish, 9.7; Stevens, 14.4; and Wahkiakum, 14.4.

Pratik Joshi: 582-1541; pjoshi@tricityherald.com; Business Beat blog at www. tricityherald.com