Harrison Medical Center was the top private employer this year, with other medical companies holding prominent places on the 2008 list.

By Rachel Pritchett

rpritchett@kitsapsun.com

The health-care industry strengthened its presence among Kitsap County’s top employers in 2008.

As of October, Harrison Medical Center, the county’s top private employer, had 2,301 full- and part-time workers, a 17 percent increase over 2007, according to an annual list of Kitsap’s biggest employers, released Monday by the Kitsap Economic Development Alliance.

Harrison spokeswoman Patti Hart said the medical center, under the direction of CEO and President Scott Bosch, has increased services for heart and cancer patients, is in the process of implementing a $31 million electronic-records system and will open clinics in Port Orchard and Belfair in 2009.

All that takes people.

And the hospital has undertaken much more marketing to keep those clients coming.

“Well, they were going to Seattle, frankly,” Hart said.

KEDA Director Bill Stewart said the local economy has gained about a thousand jobs in health care over the past year. 

“And I believe next year’s research is going to show even greater gains, as a result of significant health-care facility development led by Harrison Medical Center,” Stewart said.

Harrison is planning a facility in Poulsbo, as well.

Gains in health-care employment were also evident with The Doctors Clinic, which moved up from the No. 7 position to No. 6 and now has 563 workers, a 20 percent increase.

Doctors Clinic President Dr. Brian Wicks said those employment numbers sounded a little high, but he accounted the increase in workers to the group’s Silverdale Salmon Medical Center picking up surgeries, such as prostate surgery that used to be done in hospitals.

Wicks said the expansion onto Bainbridge has helped employment. That clinic is slated to take over more space next year, he said. 

The Doctors Clinic hired eight or nine physicians for all its facilities in the past year.

Other medical-related employers — Martha & Mary Lutheran Services (No. 9); Ostrom Management (No. 14), which provides assisted-living services; Kitsap Mental Health Services (No. 17); and KPS Healthplans (No. 28) — remained in top positions, as well.

Occupying the No. 2 position on the list is Wal-Mart, with three stores locally, with the one on Highway 303 slated for expansion.

Stewart said big-box retailers in general did very well in terms of hiring between 2007 and now, adding roughly 1,100 jobs. But he suspects hiring could slow in the coming year with dampened retail spending, 

“We would expect some change in that, based on what is occurring,” Stewart said.

Coming in at No. 3 with 752 employees was Port Madison Enterprises, the business arm of the Suquamish Tribe that operates the Suquamish Clearwater Casino and Resort, three small gas-and-grocery outlets and Kiana Lodge.

CEO Russ Steele said the company is budgeting for 800 workers next year and has 32 positions open right now in occupations that are across the board. The casino by far is the largest PME employer, with 600 workers.

Moving up fast on the private side of the list was Bainbridge Island-based Avalara, the sales-tax automation company. Last year, it had 70 workers. That jumped 181 percent to 197 workers, making Avalara the 24th biggest employer in the county.

An Avalara official could not immediately be reached.

For public employers, Naval Base Kitsap topped the list with 26,400 Department of Defense and civilian employees. Civilian hiring was up by 300 people over last year; federal employment was up 170 people, according to the top-employer list.

Puget Sound Naval Shipyard, with 10,450 workers, is the state’s fourth-largest employer, according to KEDA.

Recession-prompted cuts in local governments showed up on the list, and Stewart hinted the end’s not here.

“There’s a lot of budget-cutting going on out there, and certainly in the public sector, as we well know.”

By Rachel Pritchett

rpritchett@kitsapsun.com

The average price of gas in Kitsap County slipped below the $2-dollar mark Monday, and it’s expected to continue falling through the first part of 2009.

Unleaded gas was selling for $1.98 Monday, down 4 cents from Sunday and 84 cents lower from a month ago, according to auto club AAA.

Some places in Kitsap were selling gas for almost 20 cents below Monday’s average price. In Bremerton, the AM PM store on Sixth Street had the price set at $1.79.

“I think we can reasonably anticipate lower fuel prices will be the norm for the rest of this year and into early 2009,” said Bellevue-based AAA spokesman Dave Overstreet.

In a normal year, prices bottom out in January and February, then begin going up in the spring, he said.

While nothing is normal in this tanking economy, the price of crude oil, the biggest determinant of the price at the pump, has become a shadow of its former self.

The price of crude Monday was around $54 a barrel, and some economists predict that it could drop to $30 in the slowing economy. Its high was $147 in July.

“If we’re not out of the doldrums nine months from now, we looking at $30 oil,” independent analyst Stephen Schork told the Toronto Globe and Mail.

Meanwhile, Bremerton’s price was lower than the state average of $2.06 a gallon Monday, but higher than the national average of $1.90 a gallon.

Gas was selling for $1.59 in Missouri, cheapest in the nation. In Alaska, it was at $2.86, the highest.

Apparel, Books, CDs, Video Games to be Hot Items This Year

By National Retail Federation

Though the majority of consumers have not even put a dent in their shopping list, traditional winter apparel and personal, inexpensive items like DVDs, CDs and books will be the first things they stock up on as they begin their holiday shopping. According to NRF’s 2008 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, 72.0 percent of consumers have completed less than 10 percent of their shopping, compared with 2.2 percent of shoppers who say they have completely finished. 

“Americans may be hesitant to purchase expensive gifts this holiday season, but personal and practical gifts will resonate most with shoppers this year,” said NRF President and CEO Tracy Mullin. “Though many companies have already been featuring substantial sales and discounts, retailers may still have a few tricks up their sleeves to attract and entice holiday shoppers.” 

The survey found that consumers will shop in similar gift categories as last year, with clothing and accessories (57.4%) and books, CDs, DVDs and video games (55.6%) topping the list. Other popular gifts will include new game systems, Blu-ray DVD players and other electronic items (30.0%), toys (41.6%), gift cards/gift certificates (53.5%), personal care or beauty items (20.8%) and jewelry (19.3%). 

Though many consumers are struggling, most will not rely on credit for the bulk of this year’s holiday purchases. The survey found that 41.5 percent of shoppers will primarily use their debit/check card to pay for holiday items this year, compared to 40.1 percent last year. The number of Americans who will pay with cash is also up slightly this year, with 22.8 percent of shoppers using dollar bills to make holiday purchases, compared to 22.1 percent a year ago. People using credit cards as a primary payment method dipped slightly (31.5% this year vs. 32.3% last year), while personal checks are becoming nearly nonexistent (4.3%). 

“If consumers have been waiting for the best deals possible, their wait is over,” said Phil Rist, Executive Vice President of Strategic Initiatives at BIGresearch. “Even though consumers will be watchful of their spending this year, shoppers may find the bargains too good to pass up and will treat themselves to something they’ve had their eye on for months.” 

About the Survey
The NRF 2008 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The survey polled 8,758 consumers and was conducted for NRF by BIGresearch, November 5-11, 2008. The consumer poll has a margin of error of plus or minus 1.0 percent.

By Rachel Pritchett

rpritchett@kitsapsun.com

POULSBO

Madison and Haillie drag pug Sherman by the leash toward the front door.

He digs his claws into the carpet with Churchill-like determination not to be shoved into the cold night.

It’s tradition in the Derksema house that Sherman gets his way. He resumes wildly tearing around the living room. The girls chase give chase.

It’s also a tradition that dad Jon and mom Julie have all the relatives over for Thanksgiving. Not this Thursday.

“We can’t afford to have the whole family over here,” said Julie, 36.

A month and a half ago, Jon, 34, lost his construction job. Julie is a health specialist at Kitsap Community Resources, but her tiny salary isn’t enough to keep the family from spending $200 a month more than they have, even with Jon’s unemployment checks. With little other choice, Jon and Julie are using their credit cards to fill the gap.

Christmas is coming.

“I mean we’ll get them something. Of course we’ll get them something,” Julie said of their daughters. Madison is 11 and Haillie is 9.

To the rescue come Certified Financial Planner Brant Greene of Ameriprise Financial Services, Inc. of Poulsbo.

Greene has combed over the Derksema’s finances, and has come up with a plan. Later, we’ll check in with this  young family to see how it worked.

While working in construction in Tacoma, Jon was bringing in more than $3,000 a month. Combined with Julie’s income, about $2,000 a month, they had an annual income of about $60,000 and were doing well. With the help of Julie’s father, retired shipyard worker and big-hearted grandpa Skip Hawley of Bremerton, they were even able to provide a few extras for the girls — ballet lessons for Madison and gymnastics lessons for Haillie. 

But the Derksemas took a hard hit when Jon got laid off. Unemployment insurance at $1,272 a month is far less than half what he was making, Their yearly income has shrunk to $40,000. They were forced to drop health insurance for Jon and the girls. Julie has insurance for herself through KCR. 

As for debt, the couple owes $171,000 on their mortgage, which has a 3 percent interest rate. Jon helped build their modest home under a program administered by Kitsap County Consolidated Housing Authority. They have $9,300 in debt on high-interest credit cards. They owe $6,700 on a car loan.

Greene had concerns beyond them spending $200 a month more than they are bringing in and lack of health insurance. The interest rates they are paying on their credit cards and car loan, 10 percent to 13 percent, are too high. Jon’s work prospects in construction — one of the big industry losers in this recession — are uncertain. They have no cash reserves.

Then there are the long-term issues. They have too little money to save for the girls’ college and retirement. They have inadequate life insurance and lack a will.

Green decided to put those long-term issues aside for now and concentrate on the basics.

“It’s the here and now that I’m worried about,” he said.

First off, Greene, said Jon and Julie have to rein in spending. That’s difficult. There’s not a lot of fat in this family budget. Julie gets her clothes from thrift shops and surfs grocery stores. They seldom eat out, and it’s been three years since anyone had a vacation.

“That’s the hard thing … they’re really down to bare minimum,” Green said.

But, they found $400 in expenses they could cut.

Greene knew the couple had dropped health insurance for Jon and the girls after he lost his job. The premiums were astronomical. Instead, Greene advised they enroll in the Washington Basic Health plan for low-income residents at a fraction of the cost. 

He gave them a new monthly clothing allowance of $40 a month and set them a $400-a-month groceries budget, down a hundred from what Julie was spending.

He advised spending no more than $60 a month for dining out and only $30 for all other entertainment, not big adjustments for the Derksema. As for Thanksgiving, Christmas and other holidays and birthdays, he gave them a monthly limit of $30, almost a third of what they were spending.

“Five dollars there, $20 there, that was what he was doing,” Jon said.

They need to tame that credit-card monster, and try negotiating with the companies for lower rates. If that fails, they should move balances from the higher-interest cards to the lower ones. And, they need to scratch together some cash reserves for emergencies and wean themselves of the credit-card teat.

Julie has a generous401(k) plan through work. Green suggested she temporarily stop her $125-a-month contribution, then boost it to $200 once Jon is back at work.

He suggested they learn more about the terms of their home loan, and identify any ways they can cut costs there.

“If they do a good job with paring back spending, Jon’s return to work will be a windfall of sorts,” Greene stated.

Get a will and $500,000 in life insurance, for the girls’ sake, he advised.

“Most importantly, Jon should pursue full-time work,” Green said.

Jon said he holds out hope his company will call him back. He’s looking for work in the meantime.

“I might start looking into a different line of work,” he said.

Then Greene looked to the long term. 

“Once Jon is back working, they can pursue longer-term goals such as eliminating debt, building cash reserves, retirement and education planning,” he stated.

“Until that happens, it’s mostly hunker down mode.”

The Derksemas were thrilled to get Greene’s plan, and immediately jumped on just about all his recommendations. Julie’s applied for Washington Basic Health and expects coverage soon. Both have stopped smoking, which wasn’t on the plan, for a savings of more than $4,000 a year.

Julie’s more attentive to her grocery shopping.

“I’ve been to the grocery stores a few times since we’ve seen Brant and really tried not to buy things on a whim,” she said.

Grandpa Skip bought some movie tickets for the family for the holidays. As for presents under the tree, “I think we’re both putting off that conversation,” Jon said.

“I think Christmas is the part that makes me sad,” Julie said.

Madison needs braces, and Jon and Julie are wondering how that’s going to work.

The family is fairly upbeat about their predicament, and so is Greene, who said he expects this to be temporary. 

The girls are old enough to know that times are tight, but are not stressed out about it.

In fact, it’s kind of nice to have dad waiting at the bus stop every day.

“I feel good when I have someone to walk me home,” Haillie said.

And once this is all over, it’s the future for Jon and Julie.

“I want to be old and happy with Jon at some point,” Julie said.

Pittsburgh Post-Gazette

The nation’s retailers, who must be trying to figure out what they did to deserve the lumps of coal that have been landing in their stockings lately, could be setting the stage for one of the crazier Black Friday shindigs in years.

Play their deals right on the day after Thanksgiving and they’ll have consumers lining up in the dark and shopping in the middle of the night to stretch their remaining money as far as possible.

Last year, the National Retail Federation estimates, more than 60 million people shopped on “Black Friday.” The day after Thanksgiving, it’s called “Black Friday” because it’s the day that struggling retailers can turn a profit, or go in the black, for the year. Last year the average shopper spent almost $350 over the holiday weekend.

With many chains reporting sales off significantly this fall, the annual deal fest could be the last big chance for some retailers to save the season.

“I think we will see the biggest traffic ever on Black Friday,” said C. Britt Beemer, chief executive officer and founder of America’s Research Group in Charleston, S.C., which is just one of several organizations predicting hordes of shoppers will be out and about that day.

Just how much they’ll actually buy depends on the deals. Price is more important than almost anything else this year, experts agree. Retailers have set the bar pretty high if, following tradition, their Black Friday deals are going to be bigger and better than those offered in weeks leading up to the holiday.

Many stores already have been using discounts liberally to try to jumpstart consumer spending, yet data from the National Retail Federation indicates people haven’t done any more holiday shopping early this year than they did last year.

“It seems that many consumers are waiting to see what retailers have up their sleeves,” said Ellen Davis, a spokeswoman for the Washington, D.C., retail trade group.

Pittsburgh Post-Gazette

The nation’s retailers, who must be trying to figure out what they did to deserve the lumps of coal that have been landing in their stockings lately, could be setting the stage for one of the crazier Black Friday shindigs in years.

Play their deals right on the day after Thanksgiving and they’ll have consumers lining up in the dark and shopping in the middle of the night to stretch their remaining money as far as possible.

Last year, the National Retail Federation estimates, more than 60 million people shopped on “Black Friday.” The day after Thanksgiving, it’s called “Black Friday” because it’s the day that struggling retailers can turn a profit, or go in the black, for the year. Last year the average shopper spent almost $350 over the holiday weekend.

With many chains reporting sales off significantly this fall, the annual deal fest could be the last big chance for some retailers to save the season.

“I think we will see the biggest traffic ever on Black Friday,” said C. Britt Beemer, chief executive officer and founder of America’s Research Group in Charleston, S.C., which is just one of several organizations predicting hordes of shoppers will be out and about that day.

Just how much they’ll actually buy depends on the deals. Price is more important than almost anything else this year, experts agree. Retailers have set the bar pretty high if, following tradition, their Black Friday deals are going to be bigger and better than those offered in weeks leading up to the holiday.

Many stores already have been using discounts liberally to try to jumpstart consumer spending, yet data from the National Retail Federation indicates people haven’t done any more holiday shopping early this year than they did last year.

“It seems that many consumers are waiting to see what retailers have up their sleeves,” said Ellen Davis, a spokeswoman for the Washington, D.C., retail trade group.

WASHINGTON (AP) — Rushing to rescue Citigroup, the government agreed to shoulder hundreds of billions of dollars in possible losses at the stricken bank and to plow a fresh $20 billion into the company.

Regulators hope the dramatic action will bolster badly shaken confidence in the once-mighty banking giant as well as the nation’s financial system, a goal that so far has been elusive despite a flurry of government interventions to battle the worst global crisis since the 1930s.

Wall Street investors reacted enthusiastically. The Dow Jones industrials shot up about 300 points in morning trading. Stock markets in Britain and Germany also gained ground. Citigroup shares themselves climbed 61.3 percent to $6.08 in morning trading.

CHICAGO (AP) — With the economy in crisis, President-elect Barack Obama pledged Monday to honor the commitments the outgoing Bush administration has made to rescue financial markets and urged the new, incoming Congress to pass a major stimulus package “right away” to restore growth and create jobs.

“Most experts now believe that we could lose millions of jobs next year,” Obama said at a somber news conference 57 days before he takes the oath of office.

He declined to say how big a spending package he wants to revive the economy, but he said, “It’s going to be costly.” Some Democratic lawmakers are speculating about a two-year measure as large as $700 billion.

The president-elect introduced the top economic advisers for his new administration, beginning with New York Federal Reserve President Tim Geithner to be his treasury secretary. Geithner, 47, is a veteran of financial crises at home and overseas and has worked closely with the Bush administration in recent months.

Obama chose Lawrence Summers as director of his National Economic Council. Summers was treasury secretary under former President Bill Clinton.

By Rachel Pritchett

BREMERTON

Some of Kitsap’s top business leaders dished up a heaping helping of encouragement for their colleagues recently to help see them through the recession.

“This is going to end. It’s going to get better,” Gary Gartin of Bradley Scott, Inc., said Tuesday at Kitsap Golf & Country Club, where Bremerton Area Chamber of Commerce members gathered to hear what their board members had to say about surviving the economy.

First off from Gartin was a reminder to keep it all in perspective, don’t panic and remember the famous Serenity Prayer, which talks to accepting things you can’t change.

“Your life and your business are not the same thing,” said the longtime leasing specialist. Family, friends and good health are what counts, he said.

Gartin laid out a plan for business owners trying to hang on in the worsening recession.

Customer service is paramount, he said. 

“That needs to be your focus.”

Cut expenses, but not in marketing, because that is what’s going to generate income when its needed most, he said.

Can’t make the office or store rent? Work with landlords, who may be willing to use security deposits to cover it, or may agree to arrangements of paying less now and more later.

Uncle Sam may not be as understanding, so pay the taxes, Gartin advised.

“They will shut you down,” he said.

Review the business plan and get help from real-estate people, accountants and chambers.

If it still is too difficult, “know when to fold,” he said.

This never will be another Great Depression, the end of the bad times will come, and Kitsap’s better off than most places, thanks to stable Navy employment, he said.

Stacey Tucker, third-generation owner of Chico Towing, urged the 100-plus business leaders to remember their employees struggling with uncertainties themselves.

Bring in a massage therapist or hair-cutter and offer them free sessions. Give them gas and shopping cards, and hams and turkeys for the holidays, she said. Find ways to reimburse them for the bigger amount of medical insurance they’re paying out of pocket. Have payday picnics and cook up lunch for them. Take a few minutes for a bubble-blowing game, she suggested.

“When your employee goes back to work, you’ve got a happier, less stressed-out” worker, she said. Loyal workers make for happy customers, she said.

“The focus on the bottom line is not always where you need to be,” she said.

Lending experts Leah Olson, marketing vice president of Kitsap Credit Union, and Bill Fogarty, president of Liberty Bank of Washington, told listeners having trouble to talk to their lender early. They might be able to find resources to avoid foreclosure or credit default.

And think to the future.

“Keep in mind this is a short-term problem in the economy,” Olson said.

The crowd of anxious business owners tried to lighten their spirits as they listened to local comedian Chris Larsen deliver his take on the economy.

They then went back what work they had waiting for them.

Readers,

I spoke with a UFCW person, who says his organization has not yet decided whether to fight Wal-Mart Store’s proposed expansion adding a grocery wing to its Highway 303 store outside of Bremerton. If the group does, I’ll report their actions. Considering the UFCW’s strong representation among grocery and health-care workers locally, I wouldn’t be surprised if they do something, perhaps under the umbrella of one of the watchdog groups that follows Wal-Mart expansions here in Washington.

Rachel

It appears phone users who have a (360) area code will be able to keep the numbers they have now at least four more years.

That’s far longer than than authorities had predicted. 

The Federal Communications Commissioner earlier said that because of all the demand for new phone numbers in the (360) area, a new area code could be overlaid in 2010, and many users then would be assigned a new new 10-digit number.

Since that announcement, the state Utilities and Transportation Commission has worked with phone companies to set aside more unused (360) numbers than expected, and the stockpile should last at least through 2012, according to a UTC statement.

Other area codes in Washington are under much less pressure.

The (360) area code has been around since 1995, and is the state’s third.