State Economy Thriving and Governor Responsible
At a time of increasing globalization, we know how important it is to help our businesses remain competitive. Unfortunately, global market forces are sometimes too powerful. That’s the case with Alcoa which announced it is curtailing operations at facilities worldwide — two of which are in Washington state — as part of a national response to adverse market forces. The company is completely closing plants in New York and Texas. As one Wenatchee World editorial writer pointed out, this move is difficult news but not unexpected: “It is in a global business facing a massive glut of its primary commodity, prices at six-year lows, stock price down, battered by a slowing world economy, Chinese overcapacity and a dollar too strong for its own good. No wonder.”
Alcoa representatives have repeatedly stated that the decision about restarting the plants will be based on a change in numerous factors — the same factors that just forced them to shutter some of their operations.
Washington state has a long standing commitment to protecting Alcoa manufacturing jobs.
The company has tax preferences designed to help the company compete that were extended by the legislature this past session and signed into law by Gov. Inslee.
In the past, the state also advocated for power contracts with the federal government that are fair to the company and other BPA customers.
While there are some Republican politicians using this situation to imply that the governor’s proposed clean air rule is a significant factor in the company’s plans, the reality is there are bigger forces at play. While the politicians play politics, the governor will continue working with his cabinet and local communities to help laid off workers and keep the company well positioned to restart if and when market forces change.
Like any other state, we aren’t immune to some tough hits but we are resilient. Lewis County is experiencing its lowest unemployment rate in eight years. Forbes just noted our state is second in the nation in job growth and CNBC puts us in the top 10 best states to do business. We celebrated record export levels in 2014.
The new sector-based economic development strategy in place under Gov. Jay Inslee has helped us recruit and retain hundreds of businesses throughout the state in the maritime, agriculture, IT, clean energy, life science, military and aerospace industries and we’ve expanded to include forest products and rural economies.
You can slice and dice rankings and statistics a lot of ways, but at the end of the day, Washington’s economy is thriving and the governor is working hard to keep it that way.
Brian Bonlender
Director, Washington State
Department of Commerce
