Gov. Bob Ferguson taps Amazon, Microsoft and others as Washington’s economic concerns grow – GeekWire
Gov. Bob Ferguson last week hired top executives from Microsoft, Amazon, T-Mobile, Boeing and other major employers to help shape Washington state’s economic strategy, launching a new advisory council amid growing complaints that the state is becoming less competitive in business.
The 26-member Governor’s Economic Development Council is the first such economic advisory body chaired by a governor in nearly two decades, renewing an approach last used under former Governor Christine Gregoire in 2006. This group includes leaders from technology, aerospace, organized labor, higher education, state governments, ports and economic development organizations that will advise the governor of Washington on economic development policies. (See full list below).
One missing ingredient: There are no members from Washington’s venture capital or startup ecosystem on the council, even though they are often considered the bench power of the growing economy.
The announcement comes as executives, startup founders and business organizations have warned that high taxes, rising costs, permitting delays and an uncertain regulatory environment are making Washington a more difficult place to build and grow companies. Ferguson recently signed the so-called “million tax” – a proposed 9.9% tax applied to taxable personal income, exceeding $1 million.
Some of the region’s wealthiest and most prominent businessmen – including Zillow and Expedia founder Rich Barton; Amazon founder Jeff Bezos and former Starbucks CEO Howard Schultz – have publicly announced they will move out of Washington state in recent years.
Starbucks also recently announced a major expansion in Nashville, and Montana Gov. Greg Gianforte earlier this month announced that Sedro Wooley, Wash.-based Janicki Industries has selected Great Falls for the site of an $800 million manufacturing facility that is expected to create 1,000 jobs.
“Washington is our home, and that never changes,” said John Janicki, president of Janicki Industries, in a press release. “Our position in Washington has continued to grow but is shrinking due to ever-increasing regulations and a lack of business understanding at the executive and legal levels.”
Meanwhile, a recent survey from the Association of Washington Business found that 24% of businesses are considering moving to the state, up from 17% in the previous quarter.
Washington’s economic climate was also one of the reasons why GeekWire recently visited Cleveland, where we examined how the Midwestern city is positioning itself in the changing economy, and the lessons Washington can learn from it.
“We will not take our power for granted,” Ferguson announced to the council. “I am introducing a historic gathering of top leaders from the Washington state to help guide the next chapter of our nation’s economic prosperity.”
The council will help develop Washington’s long-term economic strategy, identify opportunities to create jobs for families, assess the state’s competitiveness with other states and global markets, recommend ways to attract new employers and review regulatory barriers that may be holding back economic growth. The group will meet quarterly and submit recommendations to the manager.
The creation of the council comes after months of uneasiness between technology and the Washington public.
GeekWire reported extensively on the criticism surrounding this year’s tax package, which raised business taxes for many employers and expanded the sales tax to more services, including advertising. Business groups have warned the measures could discourage investment and expansion in Washington, while lawmakers say the revenue is needed to close a multibillion-dollar budget gap and maintain critical public services.
The broader economic outlook remains mixed. Washington continues to be ranked among the nation’s strongest economies and is home to global leaders in artificial intelligence, cloud computing, aerospace and life sciences. At the same time, employers are navigating high borrowing costs, federal policy uncertainty, trade tensions and growing competition from states seeking new investment.
As one example, Gov. Ohio Mike DeWine recently encouraged people and businesses from places like Washington to consider Ohio.
“Come and work in Ohio,” DeWine commented after a question from GeekWire about his advice for Washington. “You won’t find a better place, better people, quality of life. The cost of living is lower compared to the two coasts.”
At a press conference announcing Janicki Industries’ Montana expansion, Gianforte was vague.
“The Treasure State is proud to attract job creators like Janicki who choose to expand from high-tax, high-regulation green states to take advantage of our unparalleled quality of life, low taxes, and strong workforce,” he said. “I look forward to seeing the impact of this major investment.”
Ferguson wants to make economic development a priority during his first year in office. His administration has highlighted efforts to accelerate compliance across government sectors, increase housing production and invest in areas including quantum computing, advanced manufacturing and clean energy.
However, others say that the manager’s efforts come too late, and are only initiated in response to criticism. Gov. Ferguson responded to the controversy at a press conference last week, saying he was not worried about critics and was interested in “solving problems.”
“I didn’t wake up last week and thought about establishing this council,” he said. “To be clear, as I said in my talking points, this was an effort that we started last year and it was the center of conversation with a lot of people behind me and a lot of other people across the region.”
Whether the new council ultimately leads to meaningful policy changes remains to be seen. But its creation sends a signal that Ferguson intends to put economic competition — and close ties with Washington’s business community — near the center of his administration.
Amazon’s Chief Global Affairs and Chief Legal Officer David Zapolsky, a member of the newly formed council, called the creation of the group “an important step.”
“When the public and private sectors are aligned with shared goals, communities benefit,” he said.
Members of the Governor’s Economic Development Council:
- Michael Cade – Incoming Board Chair, Washington Economic Development Association; Executive Director, Thurston County Economic Development Council
- Dr. Betsy Cantwell – President, Washington State University
- Leonard Forsman – Chairman, Suquamish Nation
- Denny Heck – Lieutenant Governor of Washington State
- Kris Johnson – President, Association of Washington Business
- Trevor Johnson – CEO, Blackwood Homes
- Dr. Robert Jones – President, University of Washington
- Mike Katz – Chief Business and Product Officer, T-Mobile
- Mary Kipp – President and CEO, Puget Sound Energy
- Heather Kurtenbach – Executive Secretary, Washington Building and Construction Council
- Dr. Thomas J. Lynch Jr. – President and Director, Fred Hutchinson Cancer Center
- Julianna Marler – CEO, Port of Vancouver
- West Mathison – President and CEO, Stemilt Growers
- Stephen Metrock – Executive Director, Port of Seattle
- Denise Moriguchi – President and CEO, Uwajimaya
- Stephanie Pope – President and CEO, Boeing Commercial Airplanes
- Heather Rosentrater – President and CEO, Avista
- Michael Senske – Chairman and CEO, Pearson Packaging Systems
- April Sims – President, Washington State Labor Council, AFL-CIO
- Brad Smith – Vice Chairman and President, Microsoft
- Rachel Smith – President, Washington Roundtable
- Bill Sterud – Chairman, Puyallup Tribe
- Shane Tackett – President and Chief Financial Officer, Alaska Airlines
- Monique Valenzuela – Executive Director, Ventures
- Dr. Rebekah Woods – President, Columbia Basin College
- David Zapolsky – Senior Global Affairs and Chief Legal Officer, Amazon
