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
[email protected]

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. ​

Pacesetter Award

2025 Recipient: Bob Hays | President, LegalShield
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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.

Interested in joining the Tacoma-Pierce County Chamber ambassador team?

Welcome to the new members who joined our business community in December 2025:​ ​

• Addison Construction Supply, Inc.
• AFLAC-Brittany Camacho
• BOMBSHELL K9 Training & Boarding
• CareNet of Puget Sound
• Centerforce
• Desintation Hope & Recovery
• GenCare Lifestyle at Point Ruston
• Golden Hour Life Coaching, LLC
• Graze Craze Tacoma
• Hire Heroes USA
• Holiday Inn Tacoma Mall
• Kent D. Bruce Co., LLC
• Kiddie Academy of University Place
• MonteVera Pearl Residence LLC
• Nava Auto Body
• New York Life Insurance-JEFFERY BRYANT, AGENT
• Pure Aesthetics
• REIC Rentals
• Servpro-Team Friermuth
• South Sound Veterinary Imaging
• The Rigney Apartments
• University Place Massage, LLC

In 2025, the Tacoma-Pierce County Chamber and its partners advanced a shared mission: to strengthen the South Sound economy by investing in people, places, and opportunity. Across entrepreneurship, advocacy, creative placemaking, manufacturing, global trade, and leadership development, each initiative reinforced the same core goal—building a resilient, inclusive, and future-ready business community.
 
From expanding access to capital and launching new economic infrastructure to elevating local creatives, advocating for business priorities, and developing the next generation of leaders, these ten highlights tell a connected story of progress. Individually impactful and collectively transformative, they reflect a year defined by collaboration, innovation, and purposeful growth across the South Sound.
 
Here are our top 10 highlights from 2025:

While 2025 offered much to celebrate, it also reinforced the importance of resilience, adaptability, and collaboration. As we look to 2026, the Chamber remains committed to strengthening the regional economy, fostering innovation, and supporting businesses and leaders through whatever challenges lie ahead. Thank you for being an essential part of this journey.

Keep up with the latest Chamber news all year by following our social media channels:

Over 250 public officials and business community members gathered on December 3, 2025, to make meaningful connections and reflect on another remarkable year at the Chamber’s annual Public Officials Holiday Reception, a signature celebration honoring the leaders who serve Pierce County.

Held at the Tacoma Art Museum in downtown Tacoma, the event made full use of the stunning Marie Helmer Lobby and Murray Family Event Space. The Museum’s modern, light-filled atmosphere provided a vibrant backdrop for an evening filled with conversation, appreciation, and community spirit.

Guests enjoyed an exceptional selection of food and beverages catered by Ocean5–Table47. Jewel-toned décor by Floral and Stripe brought warmth to the space, while festive music curated by Velvetone Events added to the lively atmosphere of networking and celebration. Nyhuis Creative joined us once again to capture the evening through their thoughtful visual storytelling.

During the VIP Hour, Interim Chamber President & CEO Tom Pierson welcomed guests and expressed gratitude to elected officials, event sponsors, and community members whose leadership and partnership strengthen Pierce County. Pierson also took a moment to honor the memory of Dr. Bernal C. Baca, who passed away in late November. Dr. Baca served on the Chamber Board of Directors and was a leading voice in our community through his work with the Washington Commission on Hispanic Affairs and as Executive Director of Mi Centro. Our team extends heartfelt condolences to his family, colleagues, and the many individuals he inspired.

A new artistic experience was introduced this year through local artist Jenny Gunter, who created live caricature-style portraits on large plexiglass panels. Guests stepped behind the clear canvases to have their outlines sketched, creating unique keepsakes. The finished panels were gifted to our valued event sponsors and advocacy partners, an evergreen alternative to previous ice sculptures that celebrate the people at the heart of our work.

A sincere thank you to our generous sponsors and to everyone who attended and contributed to this year’s event. Your partnership and enthusiasm make gatherings like these possible.
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As we look ahead to the new year, we encourage you to stay engaged with the Chamber’s upcoming events and initiatives. Thank you for your continued support during this time of transition. We look forward to welcoming you again in 2026!