FOR IMMEDIATE RELEASE Contact Information: Tacoma-Pierce County Chamber Mary Sedano, Senior Marketing & Communications Manager [email protected] PIERCE COUNTY ECONOMIC OUTLOOK FOR 2026 HIGHLIGHTS WARNING SIGNS FOR PIERCE COUNTY ECONOMY AMID NATIONAL UNCERTAINTY 2026 Pierce County Economic Index points to stagnant growth, concerning leading indicators, and significant policy headwinds. 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. 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%. Spotlight on Key Industries:
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. 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. About the Tacoma-Pierce County Chamber 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. ###
 The first week of Washington’s 2026 legislative session highlights a fast‑moving and challenging environment, shaped by a $2.3 billion projected budget shortfall, intensified political pressures, and the early influence of the 2026 election cycle. Lawmakers are navigating urgent fiscal constraints, competing policy priorities, and potential new taxes and service reductions. 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:
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. Questions You can reach out to our advocacy team at [email protected] if you have any questions or would like to voice your concerns.
 Over the past few weeks, our exceptional advocacy and marketing team has expanded. We are excited to welcome two Political Advocacy interns, as well as a Social Media & Community Engagement Coordinator, to the Chamber!
 Chamber ambassadors are the welcoming heartbeat of our organization, greeting new members, strengthening relationships, and championing engagement across the business community. As event hosts, mentors, and trusted guides, they help members make meaningful connections and get the most from their Chamber experience. Each year, we celebrate ambassadors who go above and beyond in this role. We are proud to recognize this year’s ambassador award winners, individuals whose leadership, enthusiasm, and dedication have made an exceptional impact on our members and the Chamber community. Pacesetter Award 2025 Recipient: Bob Hays | President, LegalShield The Pacesetter Award honors an ambassador who has been part of the ambassador team for more than 12 months and is recognized by their peers for consistently leading by example. This individual demonstrates strong leadership, reliability, and a deep commitment to the program, setting the standard for what it means to be a model ambassador. Through their actions, mentorship, and steady engagement, they help shape the culture and success of the ambassador team. Rookie of the Year Award 2025 Recipient: Yadira Morales | Chief Executive Officer, IMPACTO Notary & Multi-Services The Rookie of the Year Award celebrates an ambassador with 12 months or less of service who has made an outstanding early impact. Voted on by peers, this award recognizes someone whose enthusiasm, energy, and willingness to jump in embody the spirit of the ambassador program. From showing up with a positive attitude to going the extra mile, this ambassador has quickly become a valued and trusted member of the team. Ambassador of the Year Award 2025 Recipient: Adam Ultley | Business Performance Advisor, Insperity The Ambassador of the Year Award recognizes the ambassador who accumulated the highest number of points in the ambassador point program over the past year. This distinction reflects exceptional dedication, consistent participation, and a strong commitment to supporting Chamber events and initiatives. Earning the most points means this ambassador was the most active throughout the year, making a meaningful and lasting impact on the ambassador program and the broader Chamber community. Congratulations to this year’s ambassador award honorees, Bob, Yadira, and Adam. Your leadership, service, and commitment to welcoming and supporting our members exemplify the spirit of the ambassador program. Thank you for the energy you bring to every event, the relationships you help build, and the positive impact you make across our Chamber community. We are grateful for all you do and celebrate this well-deserved recognition!
Interested in joining the Tacoma-Pierce County Chamber ambassador team?
 Welcome to the new members who joined our business community in December 2025:
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