1. Tourism & Business Services The role of services in job-creation Traded versus locally focused services traded: tourism; producer services; port & some other transport services locally focused: retail, consumer services mixed markets: wholesale, health, government

2. Employment Change Northwest States 1980-1997 Total Change 1980-1997: 2,150,801

3. Share of Employment Change, Pacific Northwest 1980-1997

4. Share of PNW Total Employment

5. Pacific Northwest Employment Change 1998-2011 792,517 jobs or +12.9%

6. PNW Total Employment

7. PNW Share of Earnings by Industry

8. Tourism ? What is a tourist? Versus a “recreator?” Tough to measure. Varies by state, government agency, local promotional agencies (e.g. Chambers) The National Travel Survey - Bureau of Transportation Services 1997 Shares of Total Tourist Travel: IdahoOregonWashington Nonresident54.5%48.0%36.3% Resident45.5%52.0%63.7% Total100.0%100.0%100.0%

9. Source: Washington State Travel Impacts, January 2011

10. Alaska Hawaii

11. Alaska Hawaii

12. AlaskaHawaii

15. > 1 - More Washington to the state than travel here < 1 - Less Out of state travel to WA than travel by Washingtonians

16. Characteristics of Northwest Tourists Trip Main Purpose Means of Transportation Income: Idaho & Oregon: $25K-$50 K; Washington > $50 K

17. Tourist Expenditures Predominantly: lodging, meals, fuel/travel costs, souvenirs Level/capita inversely related to distance: Out-of-state at least $100/person/day; instate ca. $50/day Seasonality of local tourism - fiscal impacts; role in regional development Business versus tourist/leisure travel outlays

18. Washington State Average Travel Spending Source: Washington State Travel Impacts, Jan 2011

19. Positioning the travel industry: Source: Washington State Travel Impacts, January 2011

20. Tourism in the Northwest put in Perspective WA CTED Report: $15 Billion but out of a $300 Billion Local Economy: ? 3rd Largest Industry Status No national “superstar” destinations, but a lot of hot spots--Oregon Coast, Culture like the Ring Cycle, Skiing, National Parks, and The Museum of Flight Subergions with relatively strong non-business tourism dependence - amenity counties, Interstate corridors, federal lands, cities (see Map 16-16 in Atlas)

21. Port of Seattle Recent Cargo History Source: Port of Seattle TEU = Twenty-Foot Equivalent Unit Cargo Container

22. Major West Coast Port TEU’s TEU = Twenty Foot Equivalent Unit (Cargo container) Source: American Association of Port Authorities

23. Total Vessel Trade by Port - 2013

28. Port of Seattle Cruise Ship Passengers Source: Port of Seattle Cruise Seattle 2014 Fact Sheet

29. Sea-Tac Airport Passenger Statistics 2012 – 33,223,111 passengers

30. A New Big Kid on the Block: Amazon Part of the Non-store retailer industry, that also includes REI & Nordstrom Diversifying into selling everything – space on the “cloud,” books & diverse retail, a wide variety of services Current Seattle area employment about 20,000, about 40% that of Microsoft, including a large research & development staff Growing rapidly, with huge real estate investment and construction impacts

31. Amazon South Lake Union Footprint Seattle Times Jan. 25, 2014

32. Producer Services Why the rapid growth? (1) Growth in intermediate demands (2) Growth in final demands (3) Slow productivity improvement (4) Trade in Services & Import Substitution An An overview of some key trends - Atlas: shows the concentrated nature of these services--but their growth is as rapid in rural as the urban Northwest.

33. Washington State Producer Services Average Growth All Industries

34. Washington State Producer Services Source: Census County Business Patterns and Nonemployer Statistics

35. 2011 Wage & Salary and Self- Employment Producer Services

36. Reasons for Producer Service Locations

37. Startups are driven by a vision of business opportunities

38. Niche Examples

39. Most Companies are dynamic in changing their services, driven by changes in IT and a variety of related factors

40. Demand & Competitive Advantage Demand: It is predominantly related to the lack of expertise by clients, by their infrequent need for the service, the need for 3rd party info, and a host of other non-cost related reasons. Competitive Advantage: Created by firms pursuing the flip-side of demand forces: Differentiation, specialization, niching, collaboration, use of specialized subcontractors, etc. Not Cost.

41. Producer Services have considerable Nonlocal Markets, but….

42. Producer Service Businesses have Bifurcated Markets: They Tend to be Local or Export

43. Recognition of Producer Services as a Part of the Economic Base Historic metro concentration Recent rural deconcentration Role in “Edge Cities” The “New Economy.” --Producer Services as a progenitor to the New Economy: –now multimedia, online retail,.com, –.org,.edu; telemedicine, teleservices, tele?; content providers; media conduits; delivery agents, etc.

44. The Traded-Dimension of Producer Service Businesses is Expanding Over Time Localized firms mirror the trend for Lone Eagles/High Fliers

45. Face to Face Communication Is Key and is Not Diminishing in Its Importance

46. Implications for Settlements for the New Economy ? Will IT fuel decentralization of work? ? Or, will the power of agglomerations ?continue? To win out? ? What will happen to Edge Cities? Central Cities? What difference does it make where we focus on….Friday Harbor, Roslyn, Enterprise, Driggs, Missoula, Bellevue, Bend, Beaverton, Darrington, Sun City, Corvallis New Points?

47. So, where is Tourism, Producer Services and Other Services Headed in the Northwest? Will we just be more urbanized? What will the impact of Growth Management Policies be on Geographical development Trends? Can regions really affect the “drivers” of their development? If not, what other forces are at play?

48. Old Slides Follow Left in for reference purposes only

49. Pacific Northwest Employment Change 1998-2006 +910,381 jobs or +14.7%

50. Pacific Northest Employment Change 2006-2010 -205,084 jobs or -3.7%

51. Shares of Wage & Salary + Proprietor Income (Excludes farms)

52. Share of Total Employment Washington, Oregon & Idaho