The past few years, local businesses in the construction industry have had to travel in order to maintain or grow their business. Many traveled to regional hotspots such as the Tri-Cities, while others went to the Bakken region (North Dakota) and even beyond to find work. Other individuals took a different route, choosing to return to our top-notch local educational institutions to retrain or build on a broader set of skills. The thinning and exporting of our local construction workforce created balance but also challenges for employers as demand increased significantly in 2013.
Locally, the construction industry added 300 jobs in the month of September and is up nearly 8 percent (700+) for the year. Single-family residence permits in the county are nearing 2007 levels. Commercial valuation is the highest it has been in a decade and land division lots are back on the radar – a significant indicator of future development. Both the existing data and anecdotal evidence from contractors indicate that 2014 will be another good year for construction. This means good news for our neighbor who may be currently stuck in some not ideal weather in the Midwest and looking to come home. But how long will this last?
As I transition to representing the broader business community and economic development for our region, three development-related concerns will remain at the forefront of our efforts. While we are enjoying short-term highs, we have serious concerns about how we are investing our limited infrastructure resources and the impact that approach will have on future development opportunities in Southwest Washington.
Public Works Trust Fund
Last year, the state Legislature stripped the Public Works Trust Fund (PWTF), a low-cost, low-interest revolving account designed to create efficient funding opportunities for much needed infrastructure projects. A good example of the PWTF’s effect is in the Discovery Clean Water Alliance’s wastewater transmission system extension along the I-5 corridor. This extension will soon provide the opportunity for key jobs producing development in the Discovery Corridor. Without this tool, local municipalities will be forced to delay or cancel future investments that will ultimately cost us jobs. This fund or an acceptable alternative needs to be restored.
Transportation package
While most areas of construction look bright, public works (particularly in road construction) has been declining. Unfortunately, this decline is tied more to a lack of financial resources than to the demand for quality maintained roads and capital needs. This trend is consistent across the state and is a driving force for the current transportation Package that is being considered in Olympia. Our regional transportation groups and partners have a detailed, prioritized list of projects that will be essential for our future economic growth and have shared those projects with our local and statewide delegation. Unfortunately, the package in its current form would vastly underfund our area, creating local funding challenges for decades. If a statewide transportation package is passed (likely in the form of a referendum to the voters), it must include the projects necessary for Southwest Washington to build jobs.
Land for Jobs
2016 may seem far away, but work is already underway for the next Comprehensive Plan Update. The Columbia River Economic Development Council (CREDC) and the building industry have been working hard to ensure that the next update takes a sophisticated approach to ensuring that there is a steady supply of real jobs producing land in Clark County. This effort requires identifying key areas that have the highest potential for development, coordinating infrastructure investments to those areas, and maximizing the tools and partnerships we have that can lead to efficient and effective outcomes. The comprehensive planning process can easily become a numbers game and it’s the responsibility of the business community and its partners to ensure that 2016 results in a meaningful, strategic document that will yield the type of quality employment outcomes we need.
Over the past decade, I have truly cherished the experience I have had working directly with our area’s finest leaders in the construction community. As I transition into my new role at CREDC, I look forward to working with you to connect the many pieces of our community together so that we are best positioned to grow, attract and retain quality employers with a strong local workforce. Our success will depend on our ability to choose partnerships over protectionism and productivity over politics. I wish you a happy holiday season and a very successful New Year!
Mike Bomar is the president of the Columbia River Economic Development Council and former executive director of the Southwest Washington Contractors Association. He can be reached at 360.694.5006 or mbomar@credc.org.
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