From Tri-Cty Herald - October 13, 2008

 

 

 

Talk about clichés. While the gathering economic storm casts gloom on the rest of the state - and indeed, the whole world, now - one corner of Washington still has a glowing economy: the sunny, sandy Tri-Cities.

The Tri-Cities lead the state in job growth again in the most-recent report, adding 2,600 jobs for a growth rate of 2.8 percent. Benton County's 5.5 percent jobless rate was one of the lowest among Washington's population centers. (Only King and Snohomish counties had lower unemployment.)

Remarkably, the Tri-Cities are one of the few places where construction employment continues to grow. Contractors added 400 people to their labor forces over the past year, for 5.7 percent growth. The housing market is weakening, but not collapsing, the latest figures suggest. Median prices slipped, but only by 0.6 percent (to $163,600). Sales volumes fell 23 percent, but that's better than the state average (down 32 percent). And while housing starts may be grinding to a halt on the Pasco side of the river (Franklin County building permits fell 39 percent), they're noticeably stronger on the Benton County side, down only 6.8 percent from 2007's very strong totals.

That's probably because Benton County is home to Hanford, and all those well-paid Hanford workers, and because Benton County includes the lower Yakima Valley wine country, which is a lure for refugees from California and the Wet Side.

Speaking of Hanford, the Department of Energy has extended Battelle's contract to run the Pacific Northwest National Laboratories for another four years, which clarifies who's in charge of that key employment center till 2012.

Year-to-year manufacturing employment was flat, although two companies - including up-and-coming solar powerhouse Infinia - are talking about expansion. The Tri-Cities have seen a sharp jump in food processing since 2000, notes local labor market guru Dean Schau, who says the number of employers in this sector went from 28 to 82 in seven years. Health care is a growing industry too, adding 200 jobs over the past year, as Kadlec Medical Center expands with new clinics. And last month Amazon.com hired 250 people for its Tri-Cities call center, in anticipation of the Christmas rush.

It's important to note that the Tri-Cities are warm, not red-hot. The financial services sector shed 200 jobs this past year, and retailers are worried that high food and fuel prices will cut into holiday sales. They should be - new data out last week shows that while Kennewick and Pasco bucked the statewide decline, posting modest gains, Richland sales fell 5.2 percent. At the county level, Franklin County had a solid 5.2 percent gain, year over year, but Benton County saw a decline of 3.7 percent.

But here's one sign of strength. At a time when entire states - and Washington cities big and small - are struggling with tax shortfalls, Richland is holding public hearings on a budget proposal that reflects revenue increases, thanks to a still-growing economy. After a week in which the Dow Jones fell 39 percent below last year's peak, this kind of modestly good news is worth celebrating - warmly.