Diversification, hard work carrying Renton through tough times, says chamber president Bill Taylor

Despite the fact that the recession is hurting businesses in a variety of ways, Renton is fairing better than one might think. In 2010 there were 423 new businesses and 395 that closed. That’s a difference of 28 that held on.

Not bad, some experts say.

“All the work that has been done in this city over the last 10 or 15 years to diversify, to reinvent itself has paid off and has carried us through this difficult time, I think quite nicely,” said Bill Taylor, Renton Chamber of Commerce President and CEO.

He points to the stores in The Landing and increased production of Boeing’s 737 airplane as evidence of the positive business climate in the city.

“You know going from 30 (planes) a month to 38 a month and now they’re talking about 40 a month – that production of that 737 increase, that has a ripple affect on the entire business community,” said Taylor. “Suppliers will now have to supply more, which means they’re going to need more people, they’re going to need to produce more of the products that they provide to Boeing.”

Taylor sees the same thing happening with Kenworth Truck Co. that is ramping up again after having laid off about 400 workers a couple of years ago.

The success and growth of those two companies will flow down to big and small businesses like restaurants that may not have the working capital to withstand an extended recession, he said.

The chamber is also seeing the same thing happen with its membership.

“The number of new members is increasing,” said Taylor. “We’re seeing businesses getting more involved than they have been in the past couple of years and typically involvement means spending money.”

As to the size of the new businesses that held on in 2010, they are probably small judging by Taylor’s estimates.

He said that 85 percent of the businesses in Renton at any time have 10 or fewer employees, which he considers the economic cross section of the city. So, new businesses starting up fall under that ratio.

Taylor also said it was due to the support and resources of a Washington State Small Business Development Center in Renton that businesses were fairing so well. The organization provides business advising, training and applied research to existing businesses and entrepreneurs.

Taylor expects that Renton will continue to grow, with affordable housing and interest from people who want to live where they work. Now, he said, the chamber’s main concern for the future is education.

He said what Gov. Chris Gregoire is proposing in cuts to the budget in education is very much business related.

“For the last four or five years education has been this chamber’s No. 1 legislative priority because we have both an understanding and an appreciation for its value to the economy, toward business,” Taylor said.

He is concerned because he feels that businesses can’t exist “without people going through [the education] system and coming out well prepared to work.”

“And I believe that if you gut K-12 education, which is what she is proposing, that it will begin a downward slide that cannot be reversed,” said Taylor of Gregoire’s proposal.

The 2011-13 state budget faces a $4.6 billion shortfall. The governor has proposed a $14.7 million reduction to early education, $2.2 billion to kindergarten through 12th-grade education and $630.7 million to higher education.

Taylor said the chamber will use to its advantage the five legislative districts that touch Renton to talk with legislators about education, business taxation, economic development issues and transportation.