By JOHN POWERS
Kitsap Economic Development Alliance

2015 was a good year for our local and regional economy. 2016 will see continued growth throughout Kitsap, with North Kitsap leading the way on many fronts.

I always like to start my economic prognostications with a caveat — I am not an economist, I am an economic developer. If you’d like to hear what the real experts have to say, I encourage you to attend our upcoming Decision Makers Breakfast — Annual Economic Forecast Conference Jan. 28 at the Kitsap Conference Center. Register at dmb2016.bpt.me.

It is not new news, but it bears repeating: Seattle is growing by leaps and bounds and its red-hot economy is driving investment and job growth throughout our region. Kitsap’s proximity and connectivity to the I-5 corridor positions us to compete in, and contribute to, one of the most diverse and robust regional economies in the world.

2015 saw continued strengthening of our local economy in what was the sixth year of recovery from the Great Recession that arrived with a vengeance in fall 2008. 2016 will likely yield more of the same steady growth as we enter into the seventh year of what is typically a 10-year economic cycle.

At PSNS, more jobs

At the center of Kitsap’s economic growth, including North Kitsap, is the highest level of civilian employment in 25 years at the Puget Sound Shipyard and Intermediate Maintenance Facility. Current direct employment levels at PSNS & IMF are approaching 13,000. More than 10 percent of those employees live in North Kitsap, making this the largest source of reliable paychecks in North Kitsap, thereby keeping the wheels of commerce — consumer and commercial — turning at a very steady revolution.

Also very positive, and adding to near full employment in the manufacturing sector, is the fact that several manufacturers in North Kitsap such as Watson, TruLife, TMF, Thermion, Sage Manufacturing, and Net Systems are enjoying significant growth in their production. Look for this growth in manufacturing, both defense and non-defense, to continue into 2016 and beyond.

North Kitsap is also at the forefront of the West Sound’s technology sector, a sector comprised of scores of small- to medium- sized enterprises employing thousands of highly skilled technology professionals — professionals that could be contending with bumper-to-bumper traffic and skyrocketing housing costs as they vie for slightly higher wages, but choose to live in a healthier, more balanced work/life environment in Kitsap. Sometimes, quality of life trumps all other factors in an employee or employer’s decision as to where they want to hang their hat and pursue their lives and livelihoods.

While it’s true that one of our larger technology companies is relocating its headquarters from waterfront on Bainbridge Island to the waterfront in Seattle, it’s also true that Avalara has, over the past 10 years, demonstrated that you can start, build, and exponentially grow a world-class technology company right here in Kitsap. And remember, many of our Avalarian friends and neighbors will continue to bring home and spend their paychecks in Kitsap — whether it be a vehicle from Liberty Bay Auto, or weekly groceries at a Town & Country Market … that’s how regional economies work.

It’s important to recognize that many Kitsap-based technology companies are growing and hiring new talent from around the region and the country. Companies such as Paladin Data Systems in Poulsbo, Applied Technical Systems in Silverdale, and Taqtile on Bainbridge expect to continue to hire into the new year.

Poulsbo prepared to accommodate tech

I’d like to call out another early stage technology company — LumiThera, a medical device development company — which set up shop in Poulsbo’s Powder Hill Business Center in 2015. I believe the success of technology companies like Avalara, Paladin, ATS, Taqtile, and LumiThera will continue to attract talent and spawn more tech companies. The City of Poulsbo, at the crossroads of the West Sound, is well situated to accommodate this growth as hundreds of new housing units are underway or have been permitted.

There is very important community development project underway in North Kitsap — a marvelous 23,000-square-foot multi-purpose facility, Kingston Village Green Community Center, that will boost the community’s ongoing efforts to develop economic opportunities in the Kingston UGA. This project reflects the strong social-political capital that drives the culture of this close-knit community — another important intangible in attracting new people and new ideas that aid in developing local economic opportunities.

I’d be remiss if I didn’t reflect on what has been the most significant expansion of any business enterprise in North Kitsap this past year — the multi-million dollar expansion and renovation of the Clearwater Casino Resort. Port Madison Enterprises is poised to employ well over a thousand workers in a variety of commercial endeavors in the coming years. This significant expansion has also supported a robust rebound in our tourism industry — an important economic sector that leads the way in attracting visitors to North Kitsap — visitors that often evolve into new neighbors, new employees, and new business owners.

Finally, I would like to identify what I believe may very well be the most important transformational undertaking relative to North Kitsap’s long-range economic future. This visionary undertaking is found in the commitment of Western Washington University, in concert with Olympic College, North Kitsap School District and the City of Poulsbo, to develop a multi-disciplined four-year university program offering a variety of degrees in high-demand fields of business, environmental-marine science, and computer-cyber security science. Human capital is the most essential capital in business. There is nothing more important than for our community to collaborate on prioritizing its support of public education that will serve the next generation of knowledge based employees and the employers that will help to fulfill their dreams.

All in all, 2015 has been a very solid year in Kitsap’s economic progress, and in particular in North Kitsap. I believe more progress lies ahead. From where I stand, our job is to stay the course, believe in the future, and be willing to invest in it together.

— John Powers is executive director of the Kitsap Economic Development Alliance. He served as mayor of Spokane from 2000-03.