The president of a nonprofit coalition of the state’s largest companies doesn’t deny business owners are feeling pressured from all sides.

Substantial tax and regulatory changes over the past six years have put some business owners back on their heels. Businesses have seen their costs rise and exceed the threshold where they can be absorbed so as not to pass them on to customers. And there’s a labor shortage, particularly in the skilled trades.

But Rachel Smith, president of Washington Roundtable, is “not part of the Chicken Little crowd,” she recently told the Tri-Cities Area Journal of Business.

However, it’s crucial state leaders have conversations now as a growing number of businesses look at investments outside the state or move operations elsewhere.

“We have so many assets but we’re hearing concerns,” she said. “We really want to be intentional about our future.”

Economic Development Council

Smith joined Washington Roundtable less than a year ago after a stint as president and CEO of the Seattle Metropolitan Chamber of Commerce. Prior to that, she worked in local and regional governments, including the administrations of King County and the city of Seattle.

She’s already delving into the issues rocking the state’s business community. Gov. Bob Ferguson appointed her chair of his new Economic Development Council, which met for the first time on Aug. 19. The 26-member council also includes Columbia Basin College president Rebekah Woods.

Smith said she didn’t anticipate solving all the problems facing the state’s economy in one meeting, but she and Washington Roundtable’s members are excited about what could come of the effort.

“I believe (the governor) when he says this won’t go on a shelf,” Smith said.

Studies highlight challenges

Smith acknowledges that many of the state’s business owners are feeling frustrated. Along with the fast pace of technological advancements and the rapidly changing nature of work, government regulation and taxation have placed increasing burdens on businesses large and small.

“I do think a lot of businesses and employers are trying to figure out how to respond,” she said. “It’s not one tax or one regulation. It’s about the overall picture.”

A study released by Washington Roundtable in March looked at affordability in the state and found the cost of everything from fuel and housing to entertainment and groceries up significantly over the past several years. A significant amount of those increases is tied to state policy decisions that should be revisited, Smith said.

Another study out in early September from the group looked at how 10 individual businesses in different sectors have dealt with the state’s business climate over the past several years. The results were stark, Smith said.

“There’s a winery with profits up 80% but it’s still in the red,” she said.

Workforce availability is also increasingly on Washington Roundtable’s members’ minds. Smith said she’d like to see the state and industries define what are high wage, high demand and high skill jobs and define the credentials needed for people to apply for and get those jobs.

But it can’t be solely up to workers; employers need to be making it clear who and what they’re looking for and not rely on the right person just finding their company.

“The system should chase the puck,” Smith said. “If someone is trying to get a job, they need to be getting signals.”