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Seattle Industry is published by the Manufacturing Industrial Council of Seattle

SI eBulletin

Mayor McGinn Roundtable

Posted: June 19, 2012

Seattle Mayor Mike McGinn

Seattle Mayor Mike McGinn

In the July 9, 2011 edition of the Seattle Times, Mayor Mike McGinn was quoted saying: “We still have a manufacturing base in the city, which is good.”

Some might be surprised to read that, but it’s not the only time the Mayor has acknowledged the value of the city’s industrial base and it is hoped he’ll do so again Friday, June 22, between 4 p.m. and 5 p.m. at a Manufacturing Roundtable in Georgetown.

The roundtable will provide a chance for the Mayor to share his views along with opportunities for people from the manufacturing community to ask questions. Hopefully, the result will be a productive conversation about shared goals and objectives and how we might work together to achieve them.

Seating for the roundtable is limited. RSVP to Christine Jones at the Manufacturing Industrial Council (MIC) by phone, 206-762-2470, or by email.

Based on outreach to potential attendees, discussion topics will likely include the city’s new sick leave law, rising utility rates, and the city’s overall business climate.


Manufacturing Revenue Reaches Historic High

Washington state manufacturing companies reported gross business revenues in 2011 of $141.5 billion. That was the highest state manufacturing sales report ever, surpassing the previous high of $133 billion in 2007. The recession pulled down sales to $116 billion in 2009 before the rebound began.

Manufacturing accounted for nearly 23% of all private sector revenues in 2011. That was up from 19.5% in 2002. Manufacturing sales grew by 82% from 2002 through 2011. That compared with 55% revenue growth for all private businesses. Manufacturing jobs in the state grew during the time frame by 4% to 278,000. That compared with 8% growth in all non-farm jobs.

Aircraft assembly and aircraft parts production generated $39.2 billion in 2011 -- the highest aerospace total in more than a decade. To put that sum into context, it was greater than the combined sales reported for all Washington state grocery stores, banks, law firms, real estate companies, accounting firms and newspapers (total: $37 billion). Aerospace revenue was up 24% since 2002, with 26% job growth.

Other growth sectors included metal fabricating and machine making, with combined revenues of $10.1 billion in 2011. That was up 77% from 2002. Jobs in the two sectors grew by 11% to 33,000. To put $10 billion into perspective, it equaled the total revenue of the entire National Football League in 2010.

Or, you can put it into the context of the National Basketball Association. On average, each NBA team takes in gross revenues of about $127 million annually. So, mom-and-pop metal fabricators and machine makers in our state took in about as much revenue as nearly 80 NBA teams.

The sales numbers referenced above come from gross business revenues that every company must report to the state for their business operations within Washington to calculate their state B&O tax liability. Since the sales reports dictate tax payments, it’s doubtful anyone is reporting any more revenue than is absolutely necessary. Jobs are from Washington State Employment Security.

King County Councilmember Larry Phillips

King County Councilmember Larry Phillips

Arena Controversy - the Seattle Center Option

Is SODO really the best place for a new NBA arena? Do we really want to rule out a new facility at Seattle Center? These questions and others will be discussed Tuesday, June 26, at a meeting between the Manufacturing Industrial Council and King County Councilmember Larry Phillips.

Phillips represents the King County Council District that includes Seattle Center and he chairs the county council transportation committee which is taking a prominent role in assessing the potential impacts of the SODO arena proposal.

The meeting will be held at the MIC office on the Georgetown campus of South Seattle Community College. The meeting is scheduled to start at 3:30. Councilmember Phillips will speak at 4:30. RSVP to Pam at 206-762-2470 or by email .

The SODO arena developer said he ruled out Seattle Center because SODO offers better transportation services. To find out how wrong this is, try riding a bus to SODO – or attend the June 26th MIC meeting.

Space Available

The former Heartwood Building located at 1414 S Director Street in South Park is available for lease. The 34,604 square foot building with +/- 4,000 square feet of office was previously used as a woodworking shop. The property features a certified paint booth, drying room, airlines and a dust collection system. The landlord will consider subdividing the space in roughly 11,000 s.f. increments. Please see the attached link for more information, or schedule a tour through Kevin Skillestad at 206-715-0757.

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