Our Economic Future

Prosperity Linked to Traditional and High-tech Ventures

by Michael Barrett

The new millennium has dawned in Skagit County with a sense of urgency concerning two seemingly opposing roads to economic prosperity. The first, rooted in centuries of tradition, is Agriculture, which many here believe our fertile valley continues to be about. The other, still on the threshold of understanding, is Technology and all of the “clean” industries associated with it. Each is demanding attention like never before.

Closure last month of the 74-year-old National Frozen Foods plant in Burlington may illustrate the decline of agriculture’s importance here. At the same time, efforts to construct high-tech infrastructure throughout the county to attract and accommodate “smart” businesses are continuing without pause. And yet, economic and community officials say we truly need both industries to keep the county growing.

“Agriculture is a cornerstone industry here,” says Don Wick, executive director of the Economic Development Association of Skagit County (EDASC), who is at the forefront of efforts to make things happen here. “It’s about 8 percent of our economy. Our moniker here in Skagit County is tied to agriculture, with the tulips and all the rest.”

Working with agencies and groups such as the Washington State University Cooperative Extension Office and Research Unit and Skagitonians to Preserve Farmland, as well as elected officials from local districts, EDASC is always looking for ways to improve the agriculture base.

“You have reason to be concerned,” Wick states. “The industry has a very challenging future here. Dairy farming is in decline, commodities are struggling, National has closed its doors taking 6,000 acres of peas out of production.”

 

Agriculture’s loss

National Frozen Foods, which got its start in the heyday of strawberry and raspberry production during the ’20s, was forced to shut down because of high cost of production. It one time employed 100 full- and 250 part-time employees with an annual payroll of $5 million.

“It’s not just the jobs, but it takes the last big processor out of the county — a significant piece of infrastructure,” Wick laments. “In the long term, we can make those jobs up, but what’s very difficult is the loss of production, and what does that do to the rest?”

Other considerations include ongoing efforts to find markets outside the area. Sen. Mary Margaret Haugen has suggested attaching refrigerator cars to Amtrak trains for fast rail shipment of Skagit produce to the Midwest and East Coast, a plan that will be studied in more detail this spring. A feasibility study has just been completed on building warehouses for controlled and cold storage of produce, including apples, potatoes and other fruits and vegetables, for later shipment.

Looking even farther into the future, Wick says farmers here may be able to grow “niche crops,” such as gourmet vegetables and turf for lawns, that would have a higher yield and more dollars per acre.

“Maybe there’s a future in greenhouse production — tomatoes, perhaps,” Wick says, adding that EDASC has talked with outside growers about coming into the valley. “But we need to explore that.”

Wick says agriculture is so important to the Skagit economic community that EDASC is considering applying for a grant to add an agricultural specialist to his staff.

 

The future is technology

Apart from that, Skagit’s property may lie in attracting more high-technology businesses to the valley.

“Technology is going to be a significant part of our future,” Wick states. “We have two smart parks going in — Verizon on 120 acres out in Fredonia and the Tech Center in Mount Vernon. We’ve worked closely on a number of technology projects.”

The parks are built with fiber-optic cable and ready to handle high-tech companies’ demands for state-of-the-art infrastructure.

“The City of Mount Vernon has obtained a $500,000 grant for its infrastructure, so that will be a significant part of its future,” he says, referring to the ongoing efforts to lay fiber-optic cable from downtown to Skagit Valley College.

“EDASC is going to start a marketing campaign sometime this year to market to small technology companies to relocate here. Two relocated last year: WebEKG, which will be located in the Tech Center, and IMS downtown. They’re dependent on fiber optics.”

WebEKG works with e-businesses nationwide to test software and find performance solutions to costly problems. IMS (Independent Market Service) is a high-tech company based in Redmond.

Whether Skagit Valley will ever develop into a mini-Silicon Valley remains to be seen.

 

Manufacturing status quo

EDASC has long been keen on attracting smaller, diverse manufacturers to Skagit County, and the search goes on, Wick says. While nothing dramatic is expected on the horizon, he points to some of the major successes of recent years.

“Pacific Circuits is up to 460 employees, Pacific Woodtech about 120, International Aero another 150, and look at Nordic Tugs, which is expanding rapidly. When they moved here 10 years ago, they were about 10 employees; now they’re about 140.”

A few of the industries attracted here have departed, but they are the exception.

“We want steady, good companies to relocate here,” Wick declares.

Another development looming in the near future is the location of Cascades Job Corps, a federally funded training agency for at-risk youth. The U.S. Department of Labor recently threatened to move Job Corps from its long-time home at the Northern State campus east of Sedro-Woolley because of its lease and high cost of maintenance.

“We’re working to save Job Corps — EDASC, Commissioner (Ted) Anderson and Sedro-Woolley Mayor (Sharon) Dillon. We have a committee working on this that includes 40th-District legislators, a representative from (U.S. Sen. Patty) Murray’s office and others,” Wick explains. “We showed them (Department of Labor) about 10 sites initially and have narrowed it down to six now, four at Northern State itself and two on Port of Skagit County property.”

A decision on whether it would be moved to a new Skagit site, or one at Paine Field near Everett or Oak Harbor, was expected this month.