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Boat builders bloom in quiet Skagit County

Someday it'll stop snowing in western Washington, and the sun will come out and we'll all head north to Skagit County for the annual Tulip Festival. We'll drive through the gorgeous Skagit Valley, marveling at one of the last big open stretches of cropland west of the Cascades. Farming is a big deal here, a key part of the local culture and a subject of much debate.

 

But there are also some really interesting industries tucked into the corners of Skagit County. Sedro-Wooley, for example, is home to Janicki Industries, which supplies forms and tooling for everything from boats to Boeing's 787. Business has been very good for Janicki, which is looking to expand its facilities.

Likewise, Anacortes is home to a range of ship and boat-building companies that are building everything from sleek America's Cup yachts to big oil-rig maintenance craft. The maritime companies report full order books for the next few years, even though U.S. boat sales are tanking, thanks to the weak national economy. That's because, they say, a weak U.S. dollar has got foreign boat buyers looking to place orders with them, particularly for big vessels.

Skagit County also is home to a pair of oil refineries, belonging to Tesoro and to Shell, bringing more high-wage jobs to the county. State figures say that refinery workers in northwest Washington have average salaries around $100,000 a year.

And, of course, there's the farming. A 2003 report put the value of the county's crops at $500 million, and estimated farmers generate another $100 million in economic benefits - the value of the gasoline, snacks and lunches Seattle visitors buy while looking at those pretty tulips. This year's cool spring doesn't seem to be hurting the tulips any, but a couple dozen farmers got hurt recently when the owner of the Nalley's pickle brand said it would stop buying Northwest cucumbers in favor of imports from India and other markets.

The overall local economic picture is as quiet as a sunset at Deception Pass. Recent state employment figures show incremental job gains in Skagit County. Employers added 900 non-farm jobs over the past year, a growth of 1.9 percent. Manufacturers added 200 jobs, which is 3.4 percent growth. The report doesn't break it down, but we can infer from the statewide report that the boatyards are doing well - statewide, boatwrights added 3.8 percent more jobs in the past year. But the refineries may have trimmed employment; at least, statewide employment in the sector fell by 300 people, 2.4 percent.

Skagit County's housing market is holding up fairly well. The median sale price increased a modest 3.5 percent in the most-recent quarter, while sales volumes were down 5.3 percent. However, retail sales are flat: countywide, they improved by only 0.1 percent, and Mount Vernon, the county seat, reported only 1.3 percent growth - both well below the state average of 5.9 percent in the most-recent quarter.

Next week: Cowlitz County

A note to readers: We're coming to a close of our first quarter of publishing our weekly Economic Insider e-newsletter, and we'd like your feedback. How do you like the format? Is there anything you'd like to see more of, or less? Comment below or send a note to Bryan Corliss at bcorliss@washingtonceo.com.

 

 

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