Washington Business Spring 2018 | Washington Business | Page 40

washington business
manufacturing by the numbers
7,140
The number of Washington manufac-
turing firms, according to the Employ-
ment Security Department’s 2016 Labor
Market and Economic Report (based on
2015 figures).
287,595 The number of people Washington
manufacturing firms employ.
$73,840 The average annual wage of a manufac-
turing employee.
30%
How much more
manufacturing
jobs pay
9.4%
Share of
manufacturing jobs
statewide as of 2014*
*Figure is expected to drop to 8.1 percent of the state’s workers by 2024 —
another reason that AWB encouraged lawmakers to reduce the B&O tax rate for
manufacturers during the 2018 legislative session.
$21.2 billion
Amount of manufacturing wages paid each
year in Washington — the largest single
category of any besides government which
comes in at $30.6 billion, but with twice as
many people employed.
40 association of washington business
“You’re doing what nobody else in the whole
world is doing... I can’t wait to get to work.
You never know what you’re going to do.”
— Margo Moon, an 11-year employee of Rite in the Rain in
Tacoma, about the variety of work and jobs involved with
creating the company’s more than 400 types of all-weather
paper products
The average manufacturing wage in Washington is $73,840,
a good 30 percent above the state average. And even more
importantly, the multiplier of each manufacturing job creates a
ripple effect.
But even though manufacturing is alive and well in
Washington, it also faces headwinds and competitiveness
challenges, from difficulties finding a skilled and ready
workforce to regulatory hurdles and increasing costs compared
with competitors in neighboring states and nations.
Since 2000, manufacturing employment has declined
approximately 14 percent statewide, according to the
Washington Research Council. Manufacturing jobs in urban
areas have declined slightly more than manufacturing jobs in
rural areas, according to the data, underscoring the need to
support manufacturing as a whole.
One important way lawmakers could support Washington
manufacturing is by lowering the business and occupation
(B&O) tax rate for manufacturers. Last year’s bipartisan budget
included a B&O reduction for manufacturers, but Gov. Jay
Inslee line-item vetoed that measure. Restoring the relief was
a top priority for AWB during the 2018 legislative session, but
unfortunately it did not pass.
Efforts to regulate and put a price on carbon emissions
could also have a serious impact on manufacturers who face
competition in other states or nations.
“Manufacturing of durable goods in Washington is
important. We don’t want to see these products produced in
China,” said Kyle Englund, senior manager, human resources
and external affairs, for Kaiser Aluminum in Spokane.
“I’m so thankful that AWB took it upon themselves to go
ahead and really showcase manufacturing in the state of
Washington. We would be remiss as Lamb Weston, as North
America’s largest potato processor, if we didn’t participate
in this,” said Michelle MacArthur, vice president of Finance,
Global Operations & Supply Chain, at Lamb Weston. “Bringing
attention to the importance of the economic stability that
manufacturing brings to the state of Washington and also just
the importance of the jobs that we’re able to provide.”