Adam Ashton of the News Tribune reports that Washington state's defense contractors had a banner year in 2011, bringing home record revenue even as Congress prepared to scale down military spending. Industry representatives say they're grateful for the big year, but they're looking ahead to possible cuts that could signal leaner times. They're particularly worried about mandatory spending reductions that could be enforced if Congress fails to reach a deficit-reduction compromise."We go into next year with some of the uncertainty about the 2013 budget, but in the short term things are good," said Sean Murphy, executive director of the Pacific Northwest Defense Coalition. The Pentagon sent $6.5 billion worth of work to the state in the federal government's 2011 fiscal year, up from $5.1 billion in 2010. The total was $700 million greater than the previous peak of $5.8 billion in 2008, according to government data compiled by usaspending.gov. Two major Boeing projects account for much of the increase. One came with the Defense Department's decision to award a $35 billion contract to Boeing to build the Air Force's next refueling tanker as it phases out a model in service for five decades. The other project represented additional work the Navy awarded to Boeing for work on its P8-A anti-submarine jet. The Navy work was worth $1.5 billion in 2011, while the start of the Air Force contract brought in $388 million. The tanker project signals years of steady work for Boeing in the Puget Sound, and it's expected to bring as many as 11,000 jobs to the state."The big driver was the tanker win, and that's going to be playing out over time," said Boeing defense programs spokesman Daniel Beck. The boost in revenue reversed two consecutive years of declining defense spending on military contracts here. It ran counter to expectations that the drawdown of forces in Iraq would lead to less defense spending at home."That's what you call a surprise in a good direction," said Egils Milbergs, executive director of the Washington Economic Development Commission. Boeing's multibillion dollar contracts from 2011 in some ways represent pent-up spending on long-awaited defense priorities. The KC-46A refueling tanker contract, for example, capped 10 years of dramatic competition between Boeing and competitor European Aeronautic Defense and Space Co. The contract calls for 179 jets built at a rate of 14 a year in Everett. A Kansas congressman last week said Boeing could steer some tanker work it had planned for its Wichita plant back to the Puget Sound, though Boeing has declined to comment on his remarks. Washington also secured good news from the Pentagon two weeks ago when Congress passed a $662 billion defense budget for 2012 that included $519 million for military construction work in the state. It includes $296 million for Joint Base Lewis-McChord and a start on $700 million worth of long-term improvements to Naval Base Kitsap's port for Trident ballistic-missile class submarines."Having the first phase of (the Kitsap project) funded is huge," said Murphy of the Northwest defense lobbying group. "Now we need to make sure those local subcontracts go to local subcontractors."The money for Lewis-McChord in 2012 is well above the $171.8 million that the Pentagon planned to spend at the base south of Tacoma in 2011. But lawmakers could deal a setback to the industry over the next year if they cannot find an alternative to the $500 billion of mandatory defense cuts that stemmed from the congressional supercommittee's failure to craft a deficit-reduction compromise this fall. It's not clear yet how the Pentagon would implement those cuts, and Defense Secretary Leon Panetta has called them potentially devastating."Such a large cut, applied in such an indiscriminate manner, would render most of our ship and construction projects unexecutable – you cannot buy three-quarters of a ship or a building – and seriously damage our modernization efforts," Panetta wrote to Congress last month. Beck, the Boeing spokesman, said the company is diversifying its production and seeking to control costs as it looks ahead to likely defense cuts. He said the company is looking to increase international sales while building up hot programs related to cyber-security and unmanned aircraft.
December 31, 2011
November 21, 2011
October 21, 2011
Celebrating the upcoming anniversary of the 1962 World’s Fair in Seattle
Seattle Center announced a preview of programs for The Next Fifty in 2012. Just six-months from today, this 74-acre legacy of the 1962 World's Fair will welcome new performances, exhibits, experiences and event in addition to the already active offerings each year
Like the 1962 World's Fair, the 50th anniversary honors achievements in the region, while it focuses on future possibilities. It draws attention to eight focus areas highlighting the region's leadership and innovation over the past half-century, as it compels participants to help create a vision for our next 50 years. The Next Fifty key focus areas include:
• Arts, Culture and Design, Apr. 21 – Oct. 21, 2012
• History, Apr. 21 – Oct. 21, 2012
• Sustainable Futures, Apr. 21 – May, 2012
• Science and Technology, June 2012
• Global Health, July 2012
• Learning, Aug. 2012
• Commerce and the Innovation Economy, Sept. 2012
• Civic Action, Oct. 2012
As the Next Fifty planning committees continue to finalize program offerings, the Seattle Center Foundation will publicize them and post them online to www.TheNextFifty.org
The Future Remembered: The 1962 Seattle World's Fair and Its Legacy, the new book of the 50th anniversary of the 1962 World's Fair was released today! Developed in partnership with HistoryLink.org and written by Paula Becker and Alan J. Stein, this 300-page, image rich hardcover book tells the story of a pivotal moment in our region's history that impacted a generation across our nation.
October 04, 2011
September 30, 2011
September 06, 2011
August 04, 2011
August 02, 2011
With fewer resources states will need to address fundamental economic growth and jobs issues
2011 Enterprising States study released by US Chamber of Commerce June, 2011 highlights state-driven initiatives to:
- redesign government, including measures to deal with excessive debt levels that inhibit economic growth and job creation and
- implement forward-looking, enterprise-friendly initiatives with a primary goal of creating the conditions for job creation and future prosperity.
Download the full study (PDF)
Study excerpts:
Over a year and a half into the recovery, the condition of the American economy is far from satisfactory. Unemployment remains high, job creation meager, and American workforce participation has dropped to near record depths — the lowest rate in a quarter of a century. The U.S. will need to create 20 million jobs in this decade to recover from the 7 million lost in the Great Recession and 13 million needed for the country's growing population. Since the first Enterprising States study in 2010, 29 new governors have started their terms. Governors of every state, along with their legislative counterparts, are taking steps to grow their states' economies, create jobs and compete globally. They want to help businesses prosper, to produce an educated and skilled workforce, and to provide other essential services and infrastructure that foster the entrepreneurship and innovation that will lead to greater productivity and competitiveness.
In the past, states could look to Washington for assistance. Now, whatever the intentions or real achievements of the stimulus package, future increases in federal spending seems likely to be meager at best. This presents a new, and perhaps unprecedented, challenge for the states. With Washington effectively forced to the sidelines, states will now have to address fundamental economic issues relating to growth and employment on their own. Most will have to do so without significantly increasing their own spending.
For many states the short-term prognosis is dire. Altogether, 44 states and the District of Columbia are projecting budget shortfalls for 2012 amounting to $112 billion. The upcoming fiscal year, according to the Center on Budget and Policy Priorities, will be "one of the states' most difficult budget years on record.
Entrepreneurship and Innovation
Gone are the days of economic development organizations spending the majority of their time luring factories from other states. Businesses built from within a region are more likely to stay for the long term and to be integrated into the local economy, supporting more jobs. Recent research suggests that not only do small companies create the majority of jobs in the nation, younger small companies do. For this reason, states are rapidly increasing their investments in entrepreneurship and small business programs.
Most states are creating small business incubators and entrepreneurship programs, often integrated with university entrepreneurship curricula and designed to serve companies commercializing academic research from nearby universities. Incubators are now being linked into statewide networks to pool resources.
Washington's Place in the Rankings
1st Export Intensity
1st STEM Job Concentration
5th Small Business Survival Index
9th Economic Output per Job
9th Business Birth Rate
11th Median Family Income
11th STEM Job Growth
11th Business Tax Climate
15th College Affordability
16th Long-term Job Growth
16th Job Placement Efficiency
17th Educational Attainment
17th High Speed Broadband Intensity
17th Transportation Infrastructure Performance
18th High Speed Broadband Availability
19th High School Advanced Placement Intensity
20th Gross State Product Growth
22nd State and Local Tax Burden
Pacific Northwest should collaborate beyond borders for insight and innovation
A joint Senate/House economic development work session was held July 21, 2011 in Portland, Oregon as part of the annual meeting of the Pacific Northwest Economic Region. The link below takes you to the slide presentation of Egils Milbergs, executive director, Washington Economic Development Commission.
Encounter Innovation, The Pacific Northwest Innovation Ecosystem, Egils Milbergs, Executive Director, Washington Economic Development Commission
The Pacific Northwest Region Economic Region (PNWER) is a trillion dollar plus enterprise, is virtually self sufficient, and measured collectively would be the 14th largest country in the world. What would happen if every state and province in the region had the ability to see and consistently connect with every strength, innovation capability and asset inherent in the region….like Michelangelo who had the sense to see the figure of David already existing in the huge slab of marble even before the reality? In today's hyper-competitive world we need to look beyond our local borders as a source of insight, economic opportunity and new innovation possibilities.
Find out more about PNWER meetings and activities at: www.pnwer.org
June 27, 2011
Epicenter of High Tech Industry According to HBS
From Wired June 2011 For this map, we asked the Cluster Mapping Project at Harvard Business School to provide the top 20 job-creating areas for the following fields: Plastics, Chemicals, Automotive, Aerospace vehicles, Information technology, Biopharma, Metal manufacturing, Communication technology, Medical technology, Analytical instruments, and Electrical equipment. Mouse over the called-out examples at the top of the image for specific information.
Illustration: Eric Fischer Source: Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School. Locations based on Metropolitan Statistical Areas.
Kevin Rollins, a Provo native and the former Dell CEO, once called IT a "young-mentality" industry. It's also an apt description of the tech sector in his hometown. Overstock.com just opened a development office here and started hiring 150 coders. Also, Brigham Young University has turned out an impressive group of startups, including the Web analytics firm Omniture (bought by Adobe in 2009 for $1.8 billion).
VanDyne, a small company in Fort Collins, recently collaborated with a Colorado State University clean-energy lab to create the SuperTurbo, a supercharger that converts exhaust energy into torque to make engines up to 30 percent more efficient. Woodward, a larger local company, is working with the same lab to develop laser ignition systems for gas, turbine, and aircraft engines.
The major Texas aerospace hubs are Dallas-Fort Worth, San Antonio, and Houston. But Waco, located within 200 miles of each of those metropolitan areas, has attracted three new aerospace companies over the past five years, bolstering the local industry's existing niches: aviation maintenance, avionics, and aircraft dispatch. One new draw will be the Aerospace Technology Center at Texas State Technical College, funded in part with a $1.5 million grant from the US Department of Commerce.
Eastman Chemical, which employs more than 1,500 at its local plants, dominates the chemical industry in Longview, an area spread over three counties in East Texas. The company produces more than 40 products, but ethyl acetate NF—a solvent also used in pharmaceutical production and cosmetics—is a Longview specialty. (It even comes in a kosher variety.)
Biotech is big business in Bloomington, which is home to the $2 billlion Cook Group, a device maker, as well as to a Baxter facility that manufactures intravenous therapies (such as sterilized, prefilled syringes). To help provide a steady stream of workers, Ivy Tech Community College partnered with Monroe County to launch the Indiana Center for the Life Sciences. Tuition is cheap for in-state residents, and the dividends are high: The average annual wage in Indiana's pharma sector is $88,384.
Using a $32.5 million grant from the US Department of Energy, East Penn Manufacturing—part of a thriving battery-tech cluster in Reading—is producing a new type of battery for hybrid electric cars. This Australian-designed lead-acid battery has a carbon super-capacitor, and it's 70 percent less expensive to manufacture than a conventional nickel-based cell. By 2013, East Penn expects to have upped its output by 2.8 million batteries per year, and so far the company has added 150 new manufacturing jobs.
Spartanburg is home to BMW's only US factory, which means that high-precision plastic parts flow into the area from the automaker's suppliers. But the region has also become a high-end-plastic producer in its own right. One of the largest players is Indorama Ventures, whose polyester and PET plant has the capacity to make 470,000 metric tons per year of resins and fibers. Another is Parker Hannifin's TechSeal Division, which makes gasket seals in a variety of materials.
June 25, 2011
May 23, 2011
May 14, 2011
May 09, 2011
April 04, 2011
This generation’s Sputnik plan for innovation
America's future economic growth and international competitiveness depend on our capacity to innovate. President Obama has called it this generation's Sputnik moment. "To win the future, we must out-innovate, out-educate, and out-build the rest of the world." This document—Strategy for American Innovation-- updates the Innovation Strategy issued by the Administration in September 2009.
- Executive Summary
- Introduction
- Invest in the Building Blocks of American Innovation
- Promote Market-Based Innovation
- Catalyze Breakthroughs for National Priorities
- Appendix A: Invest in the Building Blocks of American Innovation
- Appendix B: Promote Market-Based Innovation
- Appendix C: Catalyze Breakthroughs for National Priorities
March 21, 2011
March 20, 2011
New Boeing 747 lifts off
March 08, 2011
Washington Innovation Summit coming up March 18th
March 18, 2011
7:30 am - 4:00 pm
Microsoft Executive Conference Center
Redmond, WA
This day-long conference will identify new, effective strategies that will promote high-impact job growth and provide a framework for Washington's work in technology-based economic development. Join us to discover how innovation is changing the enterprise and our economy and explore these key topics with leading technology, business and policy experts:
- How the state is fusing support for innovation into its overall economic development strategy;
- How emerging information technologies are dramatically changing our economy, presenting our state with new challenges as well as exciting new opportunities;
- How the very nature of the enterprise is evolving, and how we should respond; and
- How our industries can grow exports and strengthen global relationships.
Click here to view the full Summit agenda.
Featured Speakers
Hon. Jay Inslee, U.S. House of Representatives: The role of the federal government in innovation-based economic development
Jeremy Jaech, Chair, Technology Alliance: What creates jobs and how we can align our state's economic strategy to accelerate recovery and growth
Hon. Rob McKenna, Washington State Attorney General: A policy framework for addressing online privacy and cyber-security
Geoffrey Moore, Author, Crossing the Chasm: The leading high tech business strategist and author of the upcoming Escape Velocity, on how 21st century enterprises can overcome the pull of the past and reorient towards a new era of competition
Larry Smarr, Founding Director, California Institute for Telecommunications & Information Technology: Next generation broadband and the opportunities it will enable, from green IT to new education and health applications
Richard Wynne, Director, Geopolitical & Policy Analysis, Boeing Commercial Airplanes: The economic value of international markets: how Washington can grow exports and expand global relationships
Interactive Panel Participants:
- Peter Cullen, Chief Privacy Strategist, Microsoft
- Steve Davis, Senior Advisor, McKinsey & Company
- Bob Drewel, Executive Director, Puget Sound Regional Council
- Jeff Hirsch, CEO, AudienceScience
- Bruce Kendall, Chair, Washington Economic Development Commission; President & CEO, Economic Development Board for Tacoma-Pierce County
- Hon. Rick Larsen, U.S. House of Representatives
- Ed Lazowska, Bill & Melinda Gates Chair in Computer Science & Engineering, University of Washington
- Lewis Lee, Partner, Lee & Hayes
- Rick LeFaivre, Partner, OVP Venture Partners
- Lynn Majors, Privacy Officer, T-Mobile
- Joe Massey, Partner, Sierra Asia
- Brian McAndrews, Managing Director, Madrona Venture Group
- Sean Nolan, Distinguished Engineer & Chief Architect, Microsoft Health Solutions Group
- David Nordfors, Co-founder & Executive Director, Stanford Center for Innovation & Communication, Stanford University
- Will Saunders, Director of Broadband Policy and Programs, Washington State
- J.D. Sitton, President & CEO, Infinia
- Hon. Adam Smith, U.S. House of Representatives
- Jonathan Sposato, Co-founder & CEO, Picnik
- Rogers Weed, Executive Director, Washington State Department of Commerce
- Kim Zentz, Executive Director, Sirti
Click here to view the full Summit agenda.
Recent Posts
- WA defense contractors have record year. Potential cuts ahead.
- Ensuring 737 MAX is built in Washington state. 20,000 jobs at stake.
- Grays Harbor provides a “Taste” of how to strengthen the economy
- Celebrating the upcoming anniversary of the 1962 World’s Fair in Seattle
- Innovation Partnership Zones in Washington State drive future prosperity
- UW, WSU to get $80M to develop biofuels
- Governor elevates Economic Development Commission to accelerate innovation economy. Appoints new members.
- Designation process for Washington State’s Innovation Partnership Zones underway
- New York, Washington and Massachusetts top list of best states for entrepreneurship
- With fewer resources states will need to address fundamental economic growth and jobs issues
Innovation Links
- Washington Higher Education Coordinating Board
- Washington Workforce Training and Education Coordinating Board Home Page
- Washington House Community & Economic Development & Trade Committee
- Washington Senate Economic Development, Trade & Innovation Committee
- The National Academies: Advisers to the Nation on Science, Engineering, and Medicine
- Task Force on the Future of American Innovation
- Community, Trade and Economic Development Agency Washington State
- Washington Economic Development Association
- Governor Chris Gregoire's official state website
- The Council on Competitiveness
December 2011
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National Lab Innovation Resources
- Argonne National Laboratory
- Brookhaven National Laboratory
- Department of Energy
- DOE Office of Science
- DOE--Nevada Test Site
- Federal Laboratory Consortium
- Idaho National Laboratory
- Kansas City Plant
- Lawrence Berkeley National Laboratory
- Lawrence Livermore National Laboratory
- Los Alamos National Laboratory: National Security Science
- National Nanotechnology Initiative
- National Nuclear Security Adminstration
- National Renewable Energy Laboratory (NREL)
- Oak Ridge National Laboratory
- Pacific Northwest National Laboratory (PNNL)
- Sandia National Laboratories
- Y-12 National Security Complex
