Kitsap Business and Economy

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Archive for June, 2011

Port wonders how much warming up it should do for the Boeing 737 race

Thursday, June 30th, 2011

By Rachel Pritchett

Port of Bremerton leaders continue to watch The Boeing Co. very closely for word whether it will build a new 737 airplane. A decision is expected by the end of the year.
If the answer is yes, proposals to Boeing from cities interested in locating an assembly plant in their locale might be submitted in the first or second quarter of next year, port CEO Cary Bozeman said Tuesday at a commissioners’ meeting.
Commissioners continue to show early interest in having the line here. Land is abundant, and close to an airport and a rail line that connects to the national grid, they said. On the down side is getting to the port via narrow, twisted and congested highways.
Bozeman and commissioners discussed whether there was anything the port could be doing now that it isn’t doing to be prepared for what promises to be crowded competition in a high-stakes race.
Commissioner Bill Mahan reminded leaders that it pays to be more ready than the other guy.
As proof, he said that Kitsap County governmental entities all worked together to have information at hand during the U.S. Department of Defense’ last round of base closings. Being ready with information “put us heads and shoulders above many other communities,” he said. “What we did in the county was far superior to what any other community did in the United States.”
No local bases were closed, and in fact some of their missions were increased, he said.
Now other communities use the Kitsap model, he said.
Mahan said the port should start gathering information for Boeing now, while time is on its side. He spoke mostly of assessing port infrastructure.
No decision was made, but Bozeman and incoming CEO Tim Thomson continue to take part in monthly phone calls with a group of cities also interested in having a Boeing line with them. The group was called together by Gov. Chris Gregoire. They also are in touch with U.S. Rep. Norm Dicks’ office.
“It’s high on the radar screen,” Bozeman said.
“We’re taking about 5,000 jobs here.”


Port to raise rent for Brem-Air

Thursday, June 30th, 2011

Port of Bremerton commissioners on Tuesday agreed to raise the monthly rent rate Brem-Air Disposal pays the port for 7.3 acres in the Olympic View Industrial Park on which the company has its offices and recycling warehouse. The increase was based on increases amounts prescribed in a port resolution. The current monthly rate of $2,572 will rise to $3,650 in December. The lease was up for a five-year adjustment.

Rachel Pritchett


New Boeing 737 might be of composites

Tuesday, June 28th, 2011

Readers,

Did you see this in today’s Puget Sound Business Journal? I’m following this because the Port of Bremerton would like to have that new 737 line here. Rachel Pritchett

http://www.bizjournals.com/seattle/blog/2011/06/new-small-airplane-a-lot-like-787.html


County assessor comparison study available online

Monday, June 27th, 2011

Readers,

The Washington Department of Revenue on Monday released a study comparing county assessor statistics.

It is very interesting reading, and can be found at

http://dor.wa.gov/Docs/Reports/2009/Property_Tax_Statistics_2009/CountyComparisonReport2010.pdf

Rachel Pritchett


Kitsap gas prices tumble 12 cents in a month

Monday, June 27th, 2011

The price for a gallon on unleaded in Kitsap County was at $3.84 Monday, down from $3.96 a month ago, says AAA.

White House considers big boost to fuel economy
WASHINGTON (AP) — The Obama administration is telling American automakers that it would like cars and light trucks to average 56.2 miles per gallon by 2025.
Government and industry sources familiar with the discussions say that’s the number being floated by administration officials in the early rounds of negotiations on a 2017-2025 fuel economy standard.
The White House wants to boost fuel economy to reduce reliance on oil and cut down on global warming pollution.
In early 2009, it brokered a landmark agreement that required automobiles on average to get 35.5 miles per gallon by 2016 and set the first-ever standards for greenhouse gases from tailpipes.
A formal proposal is due in September. The change would increase the cost of vehicles, but that money would be recouped in fuel savings.


Euro debt news lefts Monday stocks after last week’s loss

Monday, June 27th, 2011

Dow now is 12,810, up 74 points at midday.

The Associated Press
Signs that a widespread European debt crisis could be averted helped send stocks up sharply Monday.
French banks agreed to accept slower repayment of Greece’s debt. That would give Greece more time to meet its other immediate financial obligations. French bondholders hold about $21.3 billion in Greek government debt. Greek lawmakers are also debating austerity measures that must pass before the country can receive another financial rescue package to help avoid default.
The U.S. government, meanwhile, said that spending by consumers decreased in May, after adjusting for inflation. April’s figures were also revised downward, revealing the first decline since January 2010. Consumer spending accounts for 70 percent of economic activity.
Gas prices nearing $4 per gallon in late April and early May curtailed spending on retail goods such as televisions and clothes. Since early then, gas prices have fallen to about $3.57 per gallon. Oil prices have declined steeply over the last few weeks, which will translate into even lower pump prices. Lower gas prices could help boost consumer spending in other areas in the coming months.
Analysts said the rally was stronger than the economic news would suggest in part because many traders invest when indices hit certain pre-determined price levels.
In this case, the key number is 1,257 — the S&P’s break-even figure for the year, said Todd Salamone, director of research at Schaeffer’s Investment Research. The S&P approached that level in March and again earlier this month. Both times, the market rallied as so-called technical traders poured into the market.
The Monday-morning rally was driven by “a combination of trading on that (break-even) level and a catalyst, the situation in Europe,” Salamone said. “Whether we sustain it is another question.”
In early trading, the Dow Jones industrial average rose 111 points, or 0.9 percent, to 12,046. The Standard & Poor’s 500 index rose 11, or 0.9 percent, to 1,279. The Nasdaq composite index rose 32, or 1.2 percent, to 2,685.
All 10 industry groups in the S&P rose, with financials, information technology and retail stocks showing the strongest gains.
Shares of electronics maker Molex Inc. fell more than 4 percent, the most in the S&P, after analysts with Ticonderoga Securities downgraded the stock to “sell” from “neutral.” They said the slow economy has hurt demand for tech gadgets such as the smart phones that Molex manufactures.
After the market closes, athletic apparel maker Nike Inc. will report on its financial performance in the fiscal fourth quarter.
Broad markets have now fallen for seven of the past eight weeks as traders received a string of dismal economic data showing that the recovery is slowing. The Dow sank 1 percent on Friday, and the S&P 1.2 percent, erasing last week’s gains for both indices. The Nasdaq fell 1.3 percent on Friday.
The S&P and the Dow both are down 7 percent since they hit their highs for the year on April 29. However, the Dow is still up 4 percent for the year, and the S&P is up 1.7 percent.
Europe’s debt problems have weighed on global markets in recent weeks, with major indices reacting daily to the news about Greece’s progress toward a second bailout. If Greece defaults, the fear is, investors will lose faith in the financial strength of other nations that have borrowed heavily or hold billions in Greek debt. That could lead to the kind of credit crunch — when banks virtually stopped lending to one another — similar to what sparked the broader financial crisis after failure of investment bank Lehman Bros.


We’ll travel less this Fourth of July

Wednesday, June 22nd, 2011

Good morning, readers.

Auto Club AAA predicts we’ll travel 2.5 percent less this Fourth of July, thanks to still-high fuel prices. Here’s a statement from the AAA received this morning. What are you doing for the Fourth? Rachel Pritchett

Bellevue, Wash. (June 22, 2011) – AAA forecasts 39 million Americans will travel 50 miles or more from home during the Independence Day holiday weekend, a 2.5 percent decline from the 40 million people who traveled a year ago. The Independence Day holiday travel period is defined as Thursday, June 30 to Monday, July 4.

AAA projects a slight decline in the number of Independence Day travelers mainly due to fuel prices. Travel by automobile is down slightly, but air travel is up. The rising cost of gasoline is a contributing factor to the increase in air travel, as the increasing cost of travel by car is making air travel a more attractive option for some travelers despite recent increases in air fares.

Automobile travel down, impact of gasoline prices on travel plans

Approximately 32.8 million people plan to travel by automobile and that’s a decline of three percent, or almost a million auto travelers, from the 33.7 million who drove last year. Automobile travel remains the dominant mode of transportation (84 percent of holiday travelers) and this year’s high gasoline prices, about 90 cents higher than a year ago nationally, are the main reason for the decline.

Currently, the average price of self-serve regular unleaded gasoline in Washington state is $3.87 per gallon, up 89 cents compared to last year, but down 11 cents from a month ago. Gas prices are up 78 cents in Idaho from a year ago, but down 7 cents since one month ago, to $3.68 per gallon. Nationally, the average price is $3.63 per gallon, up 90 cents compared to last year, down 21 cents in the past month.

A survey of Americans who intended to travel found that 56 percent said rising gasoline prices would not impact their travel plans. For the remaining 44 percent who said rising gas prices would impact their travel plans, seven out of 10 will economize in other areas and three out of 10 are planning to take a shorter trip or travel by a different mode of transportation. Travelers concerned about how fuel prices will impact their travel budget can use AAA’s free, GPS-based TripTik® Mobile application to compare prices for all grades of gasoline at nearby stations.

Number of air travelers expected to increase by nine percent

Approximately 3.02 million leisure travelers (eight percent of holiday travelers) will fly during the holiday weekend, a nine percent increase from last year’s 2.75 million air travelers. This increase continues a rebound in air travel that began in 2010 following the lowest years for air travel (2009 and 2008) in the past decade. The remaining eight percent of holiday travelers are expected to travel by other modes, including rail, bus and watercraft.

Travelers to experience increases in airfares, hotel rates and car rental rates

According to AAA’s Leisure Travel Index, Independence Day holiday airfares are expected to be 11 percent higher than last year, with an average lowest round-trip rate of $213 for the top 40 U.S. air routes. Hotel rates for AAA Three Diamond lodgings are expected to increase three percent from a year ago with travelers spending an average of $147 per night compared to $143 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay eight percent more at an average cost of $110 per night. Weekend daily car rental rates will average $56, a three percent increase over a year ago.

Average travel distance down seven percent; median spending up 25 percent from last year

According to a survey of traveler intentions, the average distance traveled by Americans during the Independence Day holiday weekend is expected to be 573 miles, which is seven percent less than last year’s average travel distance of 617 miles. Median spending is expected to be $807, an increase of 25 percent from $644 last year.
AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Boston-based economic research and consulting firm teamed with AAA in 2009 to jointly analyze travel trends during the major holidays. AAA has been reporting on holiday travel trends for more than two decades. The complete AAA / IHS Global Insight 2011 Independence Day Holiday Travel Forecast can be found at AAA.com/news.


IRS identifies organizations that have lost tax-emempt status: The Kitsap list

Monday, June 20th, 2011

Here is the list of the 244 organizations in Kitsap County that have lost their tax-exempt status, for not filing returns for the last three years. The vast majority of groups are defunct, according to IRS spokesman David Tucker.

YELLOW BIKE PROJECT OF BAINBRIDGE
NARROWS CROSSING CORPORATION
DONA SENIOR CENTER
CREATIVE MONTESSORI TIME
STRAIGHTALK
BAINBRIDGE ISLAND TEEN CENTER
BAINBRIDGE PEE WEE ASSOCIATION
NEW IMAGE THEATER
DRUG INTERACTION FOUNDATION
MUNICIPAL LEAGUE FOUNDATION OF
BAINBRIDGE BOYS & GIRLS CLUB
KIDS FIRST
CLAMS COMPUTER LITERATE ADVOCATES
ZENITH FOUNDATION
LEARNING FUTURES COLLABORATIVE
SANTAMARIA FOUNDATION
AMERICAN ACADEMY OF FAMILY
CAMP HOPKINS YOUTH COMMITTEE
OPEN EAR INSTITUTE
SOBER JOURNEYS INTERNATIONAL
RABER ADDN ASSOCIATION INC
CU MINISTRIES
BAINBRIDGE INSTITUTE
HELMETS FOR YOUTH FOUNDATION
BAINBRIDGE ISLAND SADDLE CLUB INC
TALBOT & ELIZABETH WEGG CHARITABLE
BAINBRIDGE BASKETBALL CLUB
WILLOX FOUNDATION
FRIENDS OF RECYCLING
EMPOWERING EDUCATION FOUNDATION
YEOMALT WATER COMPANY INC
FLETCHER BAY WATER AND ROAD
BAINBRIDGE CONCERNED CITIZENS INC
UNION RIVER BASIN PROTECTION
CAMP HAROBED
INTERNATIONAL UNION OF PAINTERS AND
LAKEWOOD MANOR ASSOCIATION
CLIFTON BEACH TRACTS COOP WATER
SUNSET BEACH WATER ASSN INC
BELFAIR WATER COMPANY INC
OLYMPIC SHORE WATER CO-OPERATIVE
CLIFTON PEBBLE BEACH WATER DIST INC
AZTEC CHILDRENS FUND OF
HOEHNEN FOUNDATION
KNIGHTS OF COLUMBUS
PINEWOOD COMMUNITY CLUB
KITSAP COUNCIL ON AGING INC
KITSAP MENTAL HEALTH ASSOCIATION
PUGET SOUND SENIOR CITIZENS CLUB
NATIONAL ACTIVE AND RETIRED FEDERAL
EASTSIDE PARENT-CHILD CO-OP
NAVAL AVENUE PEE WEE ADULT
KITSAP COUNTY ALLIED ARTS COUNCIL
KITSAP JUDO CLUB
KITSAP LICENSED BEVERAGE
GREAT NORTHWEST FOUNDATION
MARANATHA PRODUCTIONS
PAN AM EMPLOYEES PAN-A-SHARE CLUB
FEDERAL MANAGERS ASSOCIATION
BREMERTON GIRLS SOFTBALL
WASHINGTON STATE FEDERATION OF BASS
THE PENINSULA WILDERNESS CLUB
CELEBRATION FOLKDANCERS
BREMERTON AUTO CLUB
WASHINGTON STATE POLICE CHAPLAINS
BANGOR ENLISTED WIVES CLUB
CRISIS PREGNANCY CENTER OF KITSAP
CITIZENS MOBILE PATROL
BREMERTON DISABLED VETERANS
THE FOUNDATION FOR BREMERTON
USS HANSFORD APA 106 ASSOCIATION
VOLUNTEERS FOR YOUTH
KITSAP CHILDRENS VISUAL &
BREMERTON-KITSAP COUNTY DWI VICTIMS
BUCKBOARD ATHLETICS ASSOCIATION
FLAGSHIP CITY
BREMERTON-KITSAP CRIME STOPPERS
H A N D S A NONPROFIT CORPORATION
LADIES OF ELKS
KLAHOWYA WATER ASSOCIATION
KITSAP YOUTH SERVICES ASSOCIATION
P O W E R PEOPLE ORGANIZED WORKING
CHINESE CULTURAL ASSOCIATION
ANIMAL RESCUE FRIENDS
AMERICAN DENTAL ASSISTANTS
AMERICAN POSTAL WORKERS ACCIDENT
CHAMPIONS COMPETITOR FUND
DEMOLAY INTERNATIONAL
REACH FOUNDATION
OUTKITSAP
DEMOLAY INTERNATIONAL
KITSAP RODEO ASSOCIATION
MILLENNIUM MUSIC SERIES ASSOCIATION
WOMENS INTERNATIONAL HOCKEY LEAGUE
KITSAP KIDS
FOREST MURALS OF BREMERTON
SILVER BEACH COMMUNITY WATER SYSTEM
INTERNATIONAL UNION UNITED WELDORS
SHOPLIFTING INFORMATION SYSTEMS
KITSAP SINGLES & ASSOCIATES
KITSAP YOUTH SERVICES
BREMERTON NORTHERN MODEL RAILROAD
BLACKS IN GOVERNMENT
KNIGHTS TEMPLAR OF THE UNITED
GRENADIER DRUM & BUGLE CORPS
SWEET ADELINES INTERNATIONAL
MARTIN LUTHER KING MEMORIAL
ADELPHIA INSTITUTE
PAPER TRAIL MINISTRIES
TELEPHONE EMPLOYEES ACTIVITIES
WIDE TURN MINISTRIES INC
KNIGHTS TEMPLAR OF THE UNITED
KPS HEALTH PLANS
BREMERTON SERVICEMENS CENTER
OLYMPIC SUMMER BASEBALL CLUB
EXPEDITIONS FOR EDUCATION INC
MT OLIVE MINISTRIES
RED STORM BASEBALL CLUB
KITSAP COUNTY FOSTER PARENTS
FRIENDS OF AVERY
DELTA SIGMA CHI SORORITY GROUP
KITSAP HOUSING ASSOCIATION
DR MAURICE S MATHIS GUILD OF THE
TITANS JUNIOR DRUM AND BUGLE CORPS
BREMERTON URBAN GARDEN SOCIETY
YOUTH SAILING FOUNDATION
WASHINGTON STATE GRANGE
NAVAL CIVILIAN PROFESSIONAL
KITSAP CARILLON BELLS ASSOCIATION
EBENEZER SOLID ROCK FOUNDATION
KITSAP LAKE DEVELOPMENT ASSOCIATION
KITSAP CO POGGIE CLUB INC
BROWNSVILLE VOLUNTEER INC
VETERANS OF WORLD WAR I OF THE U S
GILBERTON COMMUNITY CLUB
PENINSULA SAILING CLUB
BREMERTON BUSINESS & PROFESSIONAL
WESTGATE VOLUNTEERS INC
PHINNEY BAY HOME ECONOMICS CLUB
PENINSULA C B ASSOCIATION
MOBILE HOME OWNERS OF AMERICA INC
COORDINATING AGENCY FOR KITSAP
DEMOLAY INTERNATIONAL
LAKE OAKPATCH UNLIMITED
GUARDSMEN JUNIOR DRUM AND BUGLE
SCALAWAG WATERFRONT FAIR
OYSTER BAY SKI TEAM
PUGET SOUND JAZZ WORKSHOP
TROUT UNLIMITED
NORTH KITSAP COORDINATING COUNCIL
PAWTICULARS SANCTUARY
WASHINGTON GUILDS FOR THE RETARDED
FEDERAL MANAGERS ASSOCIATION
NUWC SCHOLARSHIP FOUNDATION
KNOWING AWARENESS THINKING
GREATER KINGSTON COMMUNITY CHAMBER
OLYMPIC PENINSULA INTERTRIBAL
BHS C TEAM SOCCER
DAPARWOOD UTILITIES ASSOCIATION
CHILD SAFETY ALLIANCE
GAMMA GOAT BREAKFAST CLUB
SEATTLE INSTITUTE FOR ADLERIAN
9KINGS KIDS NORTH AMERICA
ASSOCIATED CLUBS OF WATERMAN
M B C EDUCATIONAL SERVICES
PERFORMING ARTS GUILD OF SOUTH
BETHEL COMMUNITY WATER SYSTEM
PUGET SOUND CASCADES KANGAROO
INGRAHAM HICH SCHOOL CLASS OF 1967
MCCORMICK WOODS MENS CLUB
PAINTING & DECORATING CONTRACTORS
ETHNIC UNITY COALITION OF
WASHINGTON STATE CEMETARY
SECURITY FINANCIAL SERVICES
WITH-IN REACH INSTITUTE
2RANDALL G JOHNSON GOLF MEMORIAL
LULU FAIRBANKS BUSINESS &
KITSOP COUNTY DEPUTY SHERIFFS
SOCIETY FOR THE EMPOWERMENT OF
WASHINGTON XI GAMMA LAMBDA 3434
RADIO ACTIVE INTERNATIONAL
KEY CLUB INTERNATIONAL
PORT ORCHARD COMMUNITY THEATER
LONG LAKE SKI CLUB
RITES OF PASSAGE MINISTRIES
LONG LAKE COMMUNITY CLUB
SOUTH KITSAP YOUTH ATHLETIC COUNCIL
SUNNYSLOPE HOMEMAKERS EXTENSION
PORT ORCHARD HOME ARTS AND SCIENCE
FERTILE VALLEY DEVELOPMENT COUNCIL
IN-BUILDING INSTITUTE
THE RABBIT-TREE
NORTH KITSAP ASSOCIATION FOR
NORTH KITSAP PEE WEE ADULT
ASSOCIATED GRANDMOTHER CLUBS OF
FRIENDS OF THE NORTH KITSAP POOL
WASHINGTON PARTNERSHIP
POULSBO FIREFIGHTERS ASSOCIATION
BANTERING BUCK-A-ROOS
COTTONTAIL KIDS 4-H CLUB
NETWORK OF BELIEVERS
NORTH KITSAP YOUTH SENTER
WORLD PEACE MILLENNIUM CLUB
KITSAP ANGELS
WESTERN CENTER FOR CONFLICT
TREK GYMNASTICS ACADEMY
NORTH KITSAP AMERICAN LEGION
WA STATE TAEKWONDO HIGH PERFORMANCE
SHELTERING TREE FAMILY COUNSELING
LEMOLO CITIZENS CLUB
POULSBO STUDY AL-ANON FAMILY GROUP
NORTH KITSAP CHAPTER OF THE
NORTH KITSAP BICENTENNIAL
MARINE SCIENCE SOCIETY OF THE
ALWAYS HOPE MINISTRIES
BLIND DOG HAVEN
BACK TO BASICS POULSBO AL-ANON
FAR WEST BEEF SHORTHORN ASSOCIATION
HIBSHMAN FAMILY FDN A CHARITABLE TR
KITSAP HUMAN RIGHTS NETWORK
TACOMA ENGINEERS CLUB
AMERICAN FEDERATION OF LABOR &
KITSAP COUNTY INDIAN CENTER
AMERICAN BOARD OF OPERATIVE
PREGNANCY CARE OF KITSAP COUNTY
PROJECT FAMILY
LIASON FOUNDATION
SILVERDALE COMMUNITY CENTER
SILVERDALE COMMUNITY CENTER
NEW DIRECTIONS INTERNATIONAL INC
PARENTS FOR WINTERGUARD
WEST SOUND CYCLING CLUB
USS MICHIGAN FIRST CLASS PETTY
J P JONES FOUNDATION
NAVAL RESERVE CENTER BANGOR CHIEF
WASHINGTON STATE GRANGE
2AMERICAN BUSINESS WOMENS
NORTHWEST WOMENS STUDIES ASSOCIATION
JACKSON HALL MEMORIAL ASSOCIATION
KITSAP AMIGA OPERATORS SOCIETY
AMERICAN CULINARY FEDERATION
REBUILDING TOGETHER KITSAP COUNTY
ASSISTANCE DOGS NORTHWEST INC


Kitsap gas down 13 cents from a month ago

Monday, June 20th, 2011

On Monday, the average price for a gallon of unleaded was $3.88, according to AAA. Oil keeps dropping. See below.

Oil falls as worries about Europe continue
NEW YORK (AP) — Concerns about the European financial crisis are still dragging down the price of oil.
Benchmark crude for July delivery fell 32 cents to $92.69 per barrel in Monday midday trading on the New York Mercantile Exchange. The July contract expires on Tuesday, and most of the trading has switched to the August contract, which dropped 33 cents to $93.07 per barrel.
All eyes remain on Greece, which is trying to implement tough new austerity measures necessary to keep international aid coming to help deal with its debt crisis. Without that aid, investors worry that Greece’s financial troubles could spread to other European countries.
Credit ratings agency Moody’s has warned that it may downgrade its debt rating on three of France’s largest banks because of their exposure to Greek debt. Moody’s said Monday that it may reduce Italy’s credit rating due to that country’s poor growth prospects and high public debt.
“The fear is that we end up with a banking crisis like 2008,” said Michael Lynch, president of Strategic Energy & Economic Research. “It’s a small possibility, but people are reacting to that.”
Oil held just below $93 per barrel despite rising stock markets. The Nasdaq and the Standard & Poor’s 500 index were up about 0.7 percent while the Dow Jones Industrial average rose nearly 0.8 percent.


Monday stocks climb for a third day, logest run since May

Monday, June 20th, 2011

Midday Dow at 12,807.

NEW YORK (AP) — Stocks climbed for a third straight day on Monday, the longest stretch of gains the market has had in nearly a month.
Major indexes opened mixed but moved higher in midday trading, putting the market further away from its longest weekly losing streak since 2002. Last week stocks eked out tiny gains, giving the Dow Jones industrial average and the Standard & Poor’s 500 index their first rises after a six-week slump.
The downturn, which began in early May, brought the S&P 500 close to its average level over the prior 200 days. So long as the index doesn’t sink far below that level, many technical traders see it as a sign to start buying stocks again. The S&P is now 6 percent below the 2011 high it reached on April 29.
“In the short term, stocks have been oversold, and you’re going to get some sort of bounce, whether justified or not, just for technical reasons,” said Paul Simon, chief investment officer for Tactical Allocation Group, which has $1.5 billion in assets under advisement.
The S&P 500 index is up 7 points, 0.6 percent, at 1,278. The Dow Jones industrial average is up 71 points, or 0.6 percent, to 12,076. The Nasdaq is up 16, or 0.6 percent, to 2,632.