In mid-February, the Chamber's advocacy team took a group of members to Olympia to advocate for the business community at the Chamber's annual Legislative Advocacy Day. The group included Chamber staff, board members, small business owners, and community members, and met with a variety of Representatives, including Representative Richards (District 26), Representative Valdez (District 26), Representative Keaton (District 25), among others.
 
The team met with these Representatives individually to give Chamber members the opportunity to share their perspectives on proposed legislation and to strengthen relationships with their elected officials. These conversations allowed the group to highlight the real-world impact of proposed policies and ensure that the business community's voices were effectively represented.
 
While down in Olympia, several legislative priorities were advocated for, including: 

• Supporting transportation investments
• Supporting legislation that protects jobs
• Uplifting our Veteran community
• Developing the Future Workforce
• Doing no harm to Washington Businesses

 
Meeting directly with lawmakers reinforced the importance of civic engagement and collaboration between the public and private sectors. Advocacy Day serves as a reminder that meaningful change begins with open dialogue, strong relationships, and a commitment to representing our community’s interests.
 
The advocacy team is grateful for the opportunity to engage in these important conversations and will continue to advocate for policies that support economic growth and opportunity in the Puget Sound.

The Chamber is thrilled to welcome two new team members: Pachia Paul, Senior Growth Officer, and Anna Terrano, Community Engagement Coordinator.

Last week, I had the privilege of stepping out of my usual role at Spaceworks Tacoma and into the halls of our state capital. I joined a coalition of passionate advocates for Arts, Heritage, and Science Week 2026, spending the day on February 4th representing Legislative District 27 and Pierce County.

It was inspiring to stand alongside fellow champions of the creative sector, including partners from ArtsWA, Hilltop Artists, and Arts Impact. Together, we met with legislators to make one thing clear: the arts are not just an amenity; they are a vital driver of small business, tourism, and community identity in Washington state.

While celebrating the creativity that defines our region, we focused on two critical legislative issues that will impact the creative economy here in Pierce County and beyond:

Held at the Greater Tacoma Convention Center, the Chamber welcomed nearly 400 South Sound community members early in the morning on January 28 to hear from industry leaders, subject-matter experts, and prominent business owners.
 
Guests started their morning in the Coffee Connections area, where they could network with fellow attendees and business professionals before the program. Once the doors opened, the program began with a welcome from Tacoma-Pierce County Chamber Board Chair Chyna Willman, Owner of Grit City Wellness.
 
Willman was then followed by a lineup of featured speakers from the South Sound community:

• Pierce County Executive Ryan Mello
• Port of Tacoma Commissioner Dick Marzano
• Renee McClain | CEO, Washington State Fair Event Center
• Congresswoman Marilyn Strickland | Washington’s 10th Congressional District
• Jimmy Ng & Brian Marlow | KeyBank
• Provost Drew Kerkhoff, Ph.D. | University of Puget Sound
• Congresswoman Emily Randall | Washington’s 6th Congressional District
  
  

The Chamber was honored to have Paul Eitelman, CFA®, as this year’s keynote speaker. Eitelman is the Global Chief Investment Strategist at Russell Investments and is responsible for the firm's economic outlook and the development of its cycle, value, and sentiment investment framework. Eitelman shared valuable insights into the state of the economy and a forecast of what to expect.

A usual highlight of the Horizons Economic Forecast is the release of the Pierce County Economic Index (PCEI) Report. This year’s report was authored by a team of economic experts from the University of Puget Sound. During the PCEI Report segment, Tom Layson of Northwest Now and KBTC PBS discussed key findings with the report’s team lead, Andrew Monaco, Associate Professor of Economics at Puget Sound.

Finally, the event concluded with an economic panel and Q&A featuring Commissioner Marzano, Paul Eitelman, Jimmy Ng, Andrew Monaco, and Renee McClain. This gave the audience the opportunity to ask key questions and to hear input from local leaders.
 
Thank you to everyone who spent their morning with us, as well as to our incredible keynote speaker, PCEI Report authors, and featured event speakers!

And special thanks to our generous event sponsors:

• Title Sponsor: The Port of Tacoma
• National Economist Sponsor: KeyBank
• Platinum Sponsors: University of Puget Sound, Washington State Fair Event Center
• Silver Sponsors: Amazon, DoorDash, Pierce County Economic Development Department, Tacoma Public Utilities
• Bronze Sponsors: Commencement Bank, Pierce Transit, Sound Credit Union, University of Washington, Tacoma
• Community Sponsors: Business Health Trust, Gesa Credit Union, United Way of Pierce County
• Supporting Sponsor: Lightcurve
• Local Impact Sponsors: MultiCare, Puget Sound Energy, WorkForce Central
• Media Sponsor: KBTC PBS
• In-Kind Sponsors: Brown & Haley, MadCap Marketing + Creative, Showcase Media

​FOR IMMEDIATE RELEASE
Contact Information:
Tacoma-Pierce County Chamber
Mary Sedano, Senior Marketing & Communications Manager
marys@tacomachamber.org

TACOMA, Wash. — January 28, 2025 — The Tacoma-Pierce County Chamber (TPCC) released the 2026 Pierce County Economic Index (PCEI) Report, a comprehensive analysis detailing emerging economic challenges for the region. The report was authored by a team of economists from the University of Puget Sound, led by department chair Andrew Monaco and supported by professors Lea Fortmann, Lisa Nunn, and Garrett Milam. The analysis identifies stagnant or declining activity across multiple key sectors and underscores how federal policy uncertainty is impacting local businesses and households.

“The 2026 PCEI tells a story of an economy at a crossroads,” said Tom Pierson, interim President & CEO of the Tacoma‑Pierce County Chamber. “While our diverse economic base provides resilience, the data shows clear warning signs. From construction to port traffic, leading indicators are softening. Still, the overall U.S. economy closed 2025 on a stronger note, with growth exceeding expectations. Looking ahead, the outlook remains optimistic, provided key risks such as tariff adjustments, additional taxation on businesses, and geopolitical tensions are effectively managed. Overall, the resilience demonstrated last year positions the economy for continued progress in 2026.”

Uncertain and evolving federal policy appears to be the primary driver of uncertainty for Pierce County businesses. An extended government shutdown obstructed the flow of critical data, delaying key metrics like county-level GDP and personal income, which are not expected to be available until February 2026. Unfortunately, this gap in information hampers informed decision-making for local leaders.
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Additionally, volatile tariff policies have created an unpredictable environment for trade-dependent industries, directly impacting key cargo volumes at the Port of Tacoma. These issues are intensified by political pressure on the Federal Reserve, risking its traditional independence in setting monetary policy. This comes as local inflation, at 2.7%, remains higher than the national average, and mortgage rates stay elevated above 6%.
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Spotlight on Key Industries:

• Construction & Real Estate: Building permits in the Seattle-Tacoma-Bellevue area are down 17.3% year-over-year, and Pierce County construction materials sales have fallen 7.3%. In commercial real estate, a construction boom has led to a surge in industrial warehouse capacity, pushing the vacancy rate up to 10.6% and creating downward pressure on rents.
• Trade, Logistics & The Port: At the Northwest Seaport Alliance (NWSA), which consists of the Ports of Tacoma and Seattle, the 2025 estimate is a 2.9% reduction in total container traffic, with steeper drops in automobiles (-21.8%) and breakbulk cargo (-18.1%). This shows the direct effects of unstable international trade policies and reduced trade with China.
• Retail & Consumer Activity: Pierce County taxable retail sales remained flat into 2025, following a predictable but subdued seasonal pattern. This reflects cautious consumer behavior as households contend with a local inflation rate that continues to outpace the national average.
• Labor Market & Key Employment Sectors: The overall labor market is tightening. Pierce County employment fell 1% year-over-year, and Washington State's labor force participation rate hit a 10-year low of 61.7%. Economic growth is forecast to slow to 0.7% in 2026, with sectors like Education and Health Services expecting declines after previous gains.
• Household Economics & Cost of Living: Residents and businesses face persistent cost pressures. The Pierce County Housing Affordability Index remains below its balanced benchmark of 100, highlighting the challenges facing an average household's ability to afford an average mortgage payment. Apartment rents continue to climb, and local inflation is elevated, squeezing real income gains and business operating costs.

​The report notes, however, that these warning signs appear against a backdrop of underlying strength. The high cost of living in the region is itself indicative of its high desirability as a place to live and work. Pierce County’s appealing urban and natural environment, combined with stable economic opportunity, continues to attract both labor and entrepreneurial talent, reinforcing the strong foundation upon which the local economy is built.
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The Tacoma-Pierce County Chamber invites community members, stakeholders, and business leaders to explore the full 2026 Pierce County Economic Index Report, available on the Chamber’s website.
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About the Tacoma-Pierce County Chamber
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The Tacoma-Pierce County Chamber drives economic vitality, community prosperity, and quality of life in the South Sound. Founded in 1884, the Chamber fosters a thriving business environment for organizations of all sizes. Through advocacy, partnerships, and resources, it connects members to growth opportunities and offers services that empower success and sustainable development. Committed to innovation and inclusivity, the “Member Powered” Chamber champions policies that make Tacoma-Pierce County the most equitable, inclusive, and thriving place to do business. For more information, visit the Chamber’s website.
 
About Puget Sound

A nationally ranked residential liberal arts college in Tacoma, Washington, University of Puget Sound enrolls 1,600 undergraduate students from across the country and around the world, as well as 250 graduate students in education, counseling, occupational therapy, physical therapy, and public health. A low student-faculty ratio provides Puget Sound students with personal attention from faculty members who have a strong commitment to teaching and offer 1,200 courses each year in more than 50 areas of study. Puget Sound graduates include Rhodes and Luce scholars, notables in the arts and culture, scholars and scientists, entrepreneurs and elected officials, and leaders in business and finance locally and throughout the world. A top producer of Fulbright scholars, Puget Sound is the only nationally ranked independent liberal arts college in Western Washington, and one of just five independent colleges in the Northwest granted a charter by Phi Beta Kappa, the nation’s most prestigious academic honor society. As part of its commitment to expanding access to higher education, Puget Sound offers the first accredited bachelor’s degree program in a prison in Washington state.

Governor Ferguson’s proposed operating, capital, and transportation budgets, required by law to balance over four years, attempt to close the deficit through a mix of spending cuts and one‑time measures. These include drawing approximately $1 billion from the rainy-day fund, redirecting Climate Commitment Act revenues to general budget needs, and implementing nearly $800 million in agency reductions. Critics caution this approach may weaken long‑term climate and fiscal stability.
 
A wide array of revenue proposals has been introduced, including new payroll taxes, expanded property and real estate taxes, excise taxes on utilities and consumer goods, surcharges tied to executive compensation, and increased taxes on nicotine, alcohol, firearms, and technology companies. While substantial, these measures will not generate funds quick enough to cover Washington’s immediate budget obligations.
 
Following $8 billion in cuts last session, any further reductions will be even more difficult. The Legislature faces a dual challenge: addressing an urgent short‑term budget crisis while planning for a 2027–29 biennium that is also expected to bring significant fiscal strain.
 
Already, revenue proposals are part of the biennium’s conversation, including the following:

• HB 2100 (Scott, D-43) - creates a payroll tax on 5% of salaries above $125,000 for companies that gross more than $5 million, had employee wages more than $7 million in the previous year and have more than 20 employees.
• SB 5796 (Saldaña, D-37) - creates a payroll tax of 5% on salaries of $189,371 or more against the portion of salary above the Social Security wage limit for employers with more than $7 million in payroll expenses.
• HB 1320 (Street, D-37) - increases taxes 10-12%  on certain businesses.
• HB 1560 (Reed, D-36) - creates a new tax on health care entities based on the salaries of their executives.
• HB 1785 (Doglio, D-22) - imposes a surcharge on certain companies based on the salaries of their executives.
• HB 2098 (Reed, D-36) - eliminates the $75 million cap on the advanced computing surcharge, increasing the tax on tech companies. 
• HB 1921 (Fey-D, 27) - establishes a road usage charge.
• HB 1334 (Pollet, D-36) - raises the property tax growth limit
• HB 1870 (Zahn, D-41) - allows counties to impose a new property tax
• HB 2116 (Bergquist, D-11) - increases schools’ local levy property tax ability by raising the cap on the max value a home can be taxed for school purposes.
• HB 1840 (Peterson, D-21) - allows counties to impose a local real estate excise tax.
• HB 2027 (Berg, D-44) - imposes a new real estate transfer tax of up to 3% on the sale of certain homes.
• HB 1702 (Wylie, D-49) - allows counties to impose an additional 3% tax on utilities. 
• HB 2046 (Berg, D-44) - capital gains.
• HB 1607 (Stonier, D-49) - adds a 10-cent per-beverage container tax.
• SB 5576 (Lovelett, D-40) - imposes a new sales tax on Airbnb, VRBO, and other short-term rentals homes.
• HB 2442 (Berg, D-44) - allows counties and cities to impose additional excise taxes on real estate sales (up to 0.25%), Expands existing authority for counties and cities to impose up to a 0.5% REET dedicated to affordable housing projects. New authority for counties to impose utility excise taxes (up to 3%) on utility businesses in unincorporated areas. Enables cities/counties to adopt a local sales/use tax (0.01%) to fund services such as childcare, perinatal support, youth services, workforce supports, shelter/rental help, and transportation for clients. Modifies existing local sales/use tax authority for housing needs, with priorities for affordable housing, behavioral health facilities, and related support services.
• SB 6093 (Saldaña, D-37) - creates a new state excise tax on large companies’ payroll expenses above a high-wage threshold in order to fund state services that may be adversely impacted by recent federal budget changes.   

​These proposed taxes are in addition to many other proposed taxes on goods. You can look up any of these bills online here: https://leg.wa.gov.
 
The Tacoma‑Pierce County Chamber is truly honored to support your efforts as we work to build a vibrant and resilient South Sound. Your success strengthens the foundation of our community, and with your leadership, we are not only advancing the South Sound economy—we are shaping a brighter, more promising future for all who call this region home. We are fighting for your business interests at all levels of government. ​