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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Got something to say? Here's the place to say it. We welcome your comments on what's going on in business in the South Sound that we should be discussing, reporting or analyzing here on our blog or in the pages of The News Tribune.

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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Thursday, June 4th, 2009
Posted by C.R. Roberts @ 03:40:39 pm

If you’re looking for good economic news - anything, just a hint, please just throw me a bone - there’s a glimmer or two from today’s State Profile for Washington as compiled by the Federal Deposit Insurance Corp., a faderal agency that insures, regulates and monitors financial institutions.

The good news shimmers in some of the comparisons between the fourth quarter of 2008 and the first quarter of 2009 – but not, obviously, in the comparisons from Q1 ‘09 and Q1 ‘08.

To wit:

• Total assets for 96 institutions in the state have risen to $80.02 billion now from $79.88 billion last quarter.
• The median percentage of net loan losses has gone from 0.55 percent of total loan value in Q4 to 0.58 in Q1. Okay, that’s not so good – and it’s even worse when compared to losses in Q1 ‘08, a year ago, when the median percentage was 0.00, or zip, nada.
• Return on assets has improved from Q4, from minus-0.37 percent to minus-0.04 percent in Q1.
• Residential real estate has gone from from 119 percent of Tier 1 Capital to 111.1 percent, indicating less of a concentration in single-family home loans.

Citing various non-banking numbers, the FDIC says:

• The unemployment rate in the state has gone from 6.2 percent in Q4 ‘08 to 8.4 percent in Q1 ‘09.
• Single-family home permits dropped 49.6 percent in Q1 from 45.7 percent in Q4. Multi-family permits were down 58.3 percent in Q1, compared to a dip of 44.3 percent in Q4. Okay, that’s not so good either.
• The home price index was down 5.2 percent most recently, where it had been down 3.8 percent in Q4 and actually up 2.8 percent in Q1 of ‘08. Which is good news if you're buying a house.

Posted by John Gillie @ 03:36:33 pm

With a deadline looming for the end of their franchises, nearly 800 Dodge, Chrysler and Jeep dealers are selling off their inventories at bargain prices, Edmunds.com reports.

The auto pricing research firm says its figures show that Chrysler, Dodge and Jeep dealers who've been told their last day as Chrysler Corp. dealers is Tuesday are cutting prices to clear out their inventories.

Those dealers on average are making $2,700 less per vehicle than other Chrysler Corp. dealers not scheduled to be eliminated from the corporate fold, Edmunds reports.

Nearly 800 of those dealers were told three weeks ago they were being culled from the ranks of Chrysler Corp. franchise holders because of falling sales nationwide.

Chrysler, reorganizing in bankruptcy court, will honor those vehicle warranties at the remaining Chrysler, Dodge and Jeep dealers.

Though we've got no specific information on their pricing, two Tacoma-area dealers are among those leaving the business: Tacoma Dodge and Milam Jeep. Milam will retain its Mazda franchise.

Categories: General, Shopping, Retail
Posted by John Gillie @ 03:11:41 pm

Chicago's United Airlines, which hasn't ordered a new jet since 2001, is back in the market for new aircraft.

The company has told both Boeing and its rival, Airbus, that it is looking for as many as 150 new planes to replace its aging fleet of widebodies and Boeing 757s.

United hopes that by shopping during the deepest recession since the Depression, it can negotiate attractive deals with the two major aircraft makers for what may be orders worth as much as $20 billion.

The average age of United's planes is 13 years, among the oldest among major airlines. Its rival, American Airlines, has an even older fleet at 16 years, but has committed to replacing its mainline standby, the McDonnell Douglas MD-80 with new Boeing 737-800s.

After the 2001 terrorist attacks that stunned the airline industry, Irish discount airline Ryanair, went shopping for a new fleet.

The prices it received from Boeing reportedly were substantially discounted.

Both Boeing and Airbus are having miserable order years.

Boeing, for instance, has net orders of zero this year. The company has had orders for 60 new planes, but has recorded an offsetting cancellation number of 60.

Categories: General, Aerospace, Tourism
Posted by John Gillie @ 03:00:45 pm

Tacoma's J.M. Martinac Shipbuilding Corp. will launch yet another high-tech tugboat this month from its ways on the Foss Waterway.

The launch of the M/V Justice is scheduled for 9:30 p.m. on Friday, June 12 at the company's shipyard at 401 East 15th Street.

The reason for the late hour? The tide. Martinac needs a high tide to ensure the vessel isn't damaged as its slides out of the construction shed into the waterway.

The Justice is one of a series of tugs that Martinac has built in the last couple of years. The shipyard, which built its reputation building tuna seiners, sat idle for several years after that business went overseas. The tug business has given the shipyard new life.

The Justice is being built for Boston Towing and Transporation Co. The 98-foor-long boat is powered by two 2,680 horsepower diesel engines driving thrusters that pivot beneath the boat's stern.

That pivoting action will give the Justice extraordinary maneuverability compared with conventional tugs whose propellers are fixed in position.

The new tug will carry 43,000 gallons of fuel and 9,800 gallons of water. The tug is 36 feet wide at its widest.

Posted by Whitney Coleman @ 12:00:02 pm

If you’re looking for a retail revolution to join – or just a job – you're in luck.

An Apple store is coming to the Tacoma Mall near you soon. And it's hiring.

The incoming Apple store is listing open positions in store management, graphic design, customer technology support, customer service and inventory, according to it’s Monster.com posting.

The job descriptions include an array of lofty perks, including “fulfillment, inspiration, adventure and advancement.”

And Apple’s job Web site says the company is happy to hire a range of prospective employees – from college grads to seasoned professionals.

There are about a dozen different positions to be filled at the new store.