Washington Business Spring 2012 | Page 43

business backgrounder | industry its busy season. Though the cooperative is the most recent iteration of the company, the Tumwater facility — one of Pepsi Northwest Beverage’s three plants — has been making soda since 1976 when it was part of the Columbia Beverage Company. The soda manufacturer has garnered a loyal workforce, because of both its culture and benefits and wage package — employees make an average of $21 per hour. Much of the staff has worked with Pepsi for decades, moving through the ranks. Hank Mays, the Tumwater plant manager, started with Pepsi 30 years ago as a bulk delivery driver. His most recent post is his 18th position with the company. “I don’t plan on retiring anytime soon,” he says. “I’m having too much fun.” a web of influence While the economic significance of such a company is not lost on its employees, more subtle — but equally as important — is the effect the manufacturer can have other local and regional businesses. “Not only are they providing jobs, but they’re also a huge economic driver to the state,” says Amy Johnson, a strategic consultant with AWB and author of the association’s 2012 Manufacturing Report. Pepsi Northwest Beverage reveals why: The company uses the products and services of more than 50 other local vendors. Some are Washingtonbased businesses and others are local outposts of national or international — Mike Sidor, president, Pacific Integrated Handling companies. For example: Each bottle that Pepsi Northwest Beverage makes begins from a plastic start made by Amcor, which has a location across the street. at a glance Crown Cork and Seal, with a facility in Olympia, provides aluminum cans for the beverage maker. Haney Trucking, headquartered in Yakima, delivers the company’s products to retail outlets around the Northwest. Pepsi Northwest Beverage is a Tumwater UPS has provided domestic and international transportation services to Pepsi Northbased manufacturer that makes soda, west Beverage, and the company that came before it, for more than 30 years, said Yvonne Gatorade and other drinks. Bazik, marketing manager for UPS’s northwest district. The logistics company picks up and delivers samples from Pepsi’s quality assurance lab to its customers. The company is a prime example of And Tacoma-based Pacific Integrated Handling, a company that provides custom how vital manufacturing is to our state storage solutions, engineered an automated, vertical storage system that Pepsi Northeconomy, generating jobs at its own plant west Beverage uses to organize parts used in its machines. and through the dozens of other compa “In manufacturing, the floor space is very valuable,” said Mike Sidor, Pacific Integratnies it partners with. ed Handling’s president. “We allow them to grow without expanding their footprint.” “In manufacturing, the floor space is very valuable. We allow them to grow without expanding their footprint.” growing jobs, changing skills Manufacturers helped pull this country out of the recession. That’s been especially evident in this state, where the industry has generated more than a third of all the jobs created over the year, according to February data from Washington’s Employment Security Department. Manufacturing now accounts for 12 percent of the state’s workforce, said Dave Wallace, senior labor economist with the state’s Employment Security Department. Manufacturing is helping drive our state’s economic recovery, accounting for a third of all the jobs generated in the last year. The industry still faces challenges, including finding skilled workers. spring 2012 41