Business

Business remains strong in Thurston County, report EDC Director and Tumwater leaders.

It’s still unclear whether the growing economy will improve conditions for people at all rungs of the economic ladder, they agree.

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Consumer spending and residential construction remained strong in 2020 according to Michael Cade, executive director of the Thurston Economic Development Council, and Tumwater Mayor Pete Kmet and City Administrator John Doan.

Speaking live yesterday at an online meeting hosted by the Tumwater Area Chamber of Commerce, each presented on aspects of the area’s recovery and continued growth.

“Total spending by all consumers increased by 19.4 percent compared to January 2020,” according to the non-profit Opportunity Insights based at Harvard University and cited by Michael Cade.

“This is not a normal recession,” Cade said.  “What took two years last time, we just went through that in three and a half months.”

Unemployment in Thurston County has dropped to nine percent now, down from 14.4 percent in June.  But that’s not the whole story, Cade said.

“Low-income people are worse off than higher-income people.  We need an economic recovery that addresses the whole spectrum," he said.

Cade cited the high cost and limited availability of child care and high cost of housing as examples of how low-income people’s lives are affected disproportionately to their level of earnings.

Both Cade and Kmet mentioned their concerns that the economy could change if consumer confidence diminishes, both individuals’ continued willingness to spend for goods and services and business owners’ inclination to invest in their companies.

The Tumwater mayor said city budget planners anticipate a 10 percent reduction in general funds over the next year. Tumwater reduced staff by “about a dozen positions” he said, by a combination of early retirements, not hiring to fill open positions and layoffs. In addition, Tumwater is saving some money by doing less grounds maintenance this year.

New housing construction in Tumwater will likely more than double in 2020 over 2019, according to Doan. The city issued 182 single-family house construction permits so far this year, compared with just over 100 in all of 2019.  There are some 350 units of multi-family housing under construction or permitted as well.  Two additional plats of single-family housing are under review.

Compared with real estate in Seattle and Tacoma, “we still have affordable housing here,” Doan explained.  “You can be in a nice new decent home here in Thurston County for about $300,000.  With the recent increase in teleworking…it has increased interest in communities like Tumwater.”

Tumwater, John Doan, Pete Kmet, business, local economy, housing, housing affordability, low-income, high-income, residential development, home construction, home building permits

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