The Biz Buzz

The News Tribune Business Team will keep you updated on what's happening in the South Sound and beyond. Check here for news about economic development, aerospace, shopping and much more.

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Contributors

Marce Edwards is the business editor. She has been at The News Tribune for seven years and has written about technology and big businesses in the South Sound including Weyerhaeuser and Russell. Before moving to Tacoma, she worked at The Idaho Statesman in Boise. She is a Northwest native who likes to garden and refuses to use an umbrella. She lives in Tacoma with her husband and two kids.

C.R. Roberts is a Tacoma native. Before joining The News Tribune, he worked as a freelance writer and part-time cowhand on a cattle ranch in Northern Idaho. He writes about small business, personal finance and other business issues.

John Gillie writes about the aerospace and airline industries, commercial development and consumer issues. During his 30-year-tenure at The News Tribune he has covered issues as diverse as the Native American fishing rights disputes, crime and the courts, the wood products industry and energy. He lived in Tacoma with his family for 25 years, but now lives in Kent because his wife heads a five-state non-profit foundation headquartered in Ballard, and it only seemed a sensible compromise to make considering their workplaces are 40 miles apart.

Kelly Kearsley has been a business reporter at The News Tribune since 2005. She covers the Port of Tacoma and international trade. Being born and raised in Spokane she’s used to living in cities with inferiority complexes and, in fact, prefers it. Prior to working at The News Tribune, she spent three years as a reporter for The Bulletin in Bend, Oregon and another year working stints for The Associated Press and Seattle Times. She graduated from Pacific Lutheran University. She lives in Tacoma with her husband and miniature schnauzer.

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Get the most up-to-date news, insights and analysis of Tacoma, Pierce County and South Puget Sound business.
Wednesday, September 17th, 2008
Posted by John Gillie @ 03:34:18 pm

The price of a gallon of regular gas broke another price barrier today in Tacoma.

Gas was selling for $3.49 a gallon at the ARCO station at Portland and Puyallup avenues today, reported Tacomagasprices.com.

Average prices in Tacoma weren't nearly so low, reported AAA Washington, but they continue to fall. Average price of that gallon of regular today was $3.754 in Tacoma, down .7 cent from Tuesday.

That Tacoma average is down 61.4 cents from the all time average high of $4.368 on June 22 this year.

Washington and Tacoma prices remain below the national average of $3.855 reported by AAA.

Crude oil prices rebounded somewhat today on news of lower gasoline inventories but they remained in the low $90 range after briefly touching $147 a barrel earlier this summer.

Categories: General, Tourism
Posted by C.R. Roberts @ 03:32:09 pm

The Washington Department of Labor & Industries today proposed an average 3 percent increase in 2009 workers’ compensation rates. Average premiums paid to the state would increase by approximately two cents per hour worked.

“We are in times of economic uncertainty and we want to do what we can to keep businesses strong in Washington State,” said L&I Director Judy Schurke in a release this afternoon.

The primary factors affecting the change in rates were workers’ wages, up 5 percent in 2007, and the cost of health care, estimated to increase 5.5 percent in 2009, Schurke said.

Not all job classifications will pay higher rates. Among some of the proposed changes: mushroom farms, down 1 percent; sawmills, up 7 percent; construction project superintendents, down 13 percent; plumbing, up 3 percent; fruit packers, down 1 percent; newspaper workers, up 6 percent; bus companies, down 5 percent; airline ground crews, up 10 percent; furniture and appliance stores, unchanged; florists, up 8 percent; restaurant and tavern workers, up 2 percent; pet groomers, up 10 percent; dancers, down 12 percent.

For a full list of changes, click here.

Final rates will be adopted by the state following a series of public meetings. The nearest local meetings will be held in Tumwater on Oct. 22 at 2 p.m. at L&I headquarters, 7273 Linderson Way S.W.; and in Tukwila on Oct. 24 at 10 a.m. at the L&I office, 12806 Gateway Dr.

For move information, visit www.lni.wa.gov.

Categories: General
Posted by John Gillie @ 03:17:22 pm

The nearly two-week-long Machinist Union strike is making its presence felt in the tourism business in Everett.

Tours of Boeing's Everett factory, the world's largest building by volume and the world's largest aircraft factory, have been suspended because of the strike.

The Boeing factory tour is one of the region's top tourist draws.

The company is substituting an alternate tour for the factory walk-through.

The alternate progam includes includes a movie in the Boeing Theater at the Future of Flight Aviation Center on the west side of Paine Field in Everett, a Boeing guided bus tour from the Future of Flight to the Flying Heritage Collection and a return bus ride.

The bus ride between the two attractions will allow visitors to view the flight line where Boeing jets are prepared for delivery. Estimated time for the experience is between 45 and 90 minutes.

No advance reservations are required, the company said. Admission is $7.50 adults, $4 for children under 15. Price includes admission to the Future of Flight gallery, Strato Deck and access to both The Boeing Store and the Future of Flight Store.

There are no height restrictions, and cameras are permitted on the alternate tour.

Categories: General, Aerospace, Tourism
Posted by John Gillie @ 09:04:23 am

The fate of troubled American International Group is a matter of much interest in aviation circles these days because of the insurance giant's ownership of the world's largest aircraft leasing company, International Lease Finance Corp.

ILFC is one of the largest customers for both Boeing and Airbus.

The Federal Reserve Tuesday agreed to provided AIG with $85 million in loans in return for a nearly 80 percent ownership in the group.

The loan deal avoided the fallout that the failure of AIG would have caused in financial markets. AIG is a major insurer of bonds.

Some analysts believe that the financially healthy ILFC will be spun off or sold by AIG as it restructures its business. The company has orders for 102 aircraft with Boeing.

Categories: General, Aerospace, Banking
Posted by John Gillie @ 08:56:11 am

When striking union machinists return to work, they'll find the backlog of orders for two Boeing airliners has increased because of delays in the 787 Dreamliner project.

Flightglobal.com reports today that Japan Airlines will receive 11 new Boeing 767s and 777s in compensation for Boeing's delay in providing the airline the 787 Dreamliners it ordered.

No financial details were disclosed, but expect that Boeing is probably providing those aircraft at a healthy discount. There's also no word whether the planes will be sold to JAL or leased to them.

Leasing would help provide the airline capacity it will be missing because of delays in delivering its 787s without committing the airline to purchase the replacement aircraft.

The replacement aircraft will be provided JAL in 2010 and 2011. JAL will keep its order for 35 787s in place. It expects to receive the first of those late next year.

The 787 program is now more than 15 months behind schedule largely because of supplier problems.

The additional sales would bolster the 767 backlog, which has diminished to 48, keeping that plane in production while Boeing and Northrop Grumman-EADS continue their battle over the Air Force aerial tanker.

Boeing has proposed a militarized version of the 767 for the tanker replacement program. The Pentagon recently cancelled the competition for the tanker contract. It plans to restart the competition once a new president takes office.

Categories: Aerospace, Tourism