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. ###
New Report Highlights Steady Job Creation, Easing Inflation, and Housing Affordability Struggles.  The Tacoma-Pierce County Chamber (TPCC) presents its Pierce County Economic Index (PCEI) Report for 2025, a pivotal tool for understanding the county's economic health and prospects. The report, authored by economist Dr. Neal Johnson, highlights a mix of growth and challenges alongside trends in GDP, labor markets, housing, and retail sales, while forecasting moderate growth and ongoing challenges for key sectors in 2025. “This PCEI Report gives our members the insights they need to navigate the year ahead with resilience while acknowledging the headwinds still facing Pierce County. While we’re seeing progress in personal income and job creation, challenges in housing affordability and retail spending underscore the lingering effects of high interest rates and inflation,” said Andrea Reay, President & CEO, TPCC. “We hold a cautiously optimistic outlook for Pierce County. From job creation to housing affordability, this report helps our community take informed steps toward building a stronger, more equitable economy. Our commitment is to ensure that businesses—big and small—have the tools to succeed.” Key Findings:
Spotlight on Key Industries:
As Pierce County continues its trajectory, businesses, policymakers, and residents must focus on fostering resilience. Investments in education, infrastructure, and affordable housing will be critical to overcoming challenges along with monitoring federal policies on interest rates and tariffs, as these factors significantly impact the county’s economic outlook.
The Tacoma-Pierce County Chamber invites community members, stakeholders, and business leaders to explore the full Pierce County Economic Index Report, available on the Chamber’s website.
Contact Information: Tacoma-Pierce County Chamber Andrea H. Reay President & CEO 253-627-2175 FOR IMMEDIATE RELEASE TACOMA - August 28, 2024 - This past June, The City of Tacoma, in collaboration with the Tacoma-Pierce County Chamber of Commerce and EMC Research, launched its first-ever Economic Development Business Climate Survey. "Our local businesses are the backbone of our community, and this survey gives us valuable insights into their needs and challenges,” said Mayor Victoria Woodards. “By understanding these results, we can work together with our business community to continue to create a thriving economic environment that supports growth and innovation supported by city policies and actions.” The primary objective of the survey was collecting wide and comprehensive data to help ensure that the economic development work we do is truly centered in and for our local business community. These valuable insights will help inform the City Council and Economic Development priorities for 2025. Tacoma Pierce County Chamber President and CEO, Andrea H. Reay “The Tacoma Pierce County Chamber was excited to work with the City of Tacoma to understand firsthand the needs of the business community. We look forward to using this valuable insight to strengthen the local economy and improve the outlook for all of Tacoma’s businesses.” Feedback from this survey will play a crucial role in ensuring that the City of Tacoma continues to meet the needs of its business community while prioritizing future investments. All businesses within the city were encouraged to participate in the survey, which focused on their experiences as members of Tacoma's business community. The survey was offered in English, Spanish, Vietnamese and Korean. 221 businesses completed interviews; 174 of the businesses had a physical location in the City of Tacoma. Outreach and support of the survey was provided from community partners including Asia Pacific Cultural Center, Korean Women’s Association, The Black Collective, Tacoma Urban League, and Mi Centro. Primary findings from the survey indicate that the Business Health Index is doing “okay”, 6.34 on a scale of 0-10. There were strong positive results in terms of the commitment businesses have to Tacoma as a great place to have a business. The most important factors in choosing a business location are safety, cleanliness, and the cost of doing business, specifically taxes. Improving communication from the City of Tacoma on policies that could impact business was important to 87% of businesses. “As Chair of the Economic Development Committee, ensuring that the City of Tacoma is an exceptional partner for local businesses is a top priority,” said Council Member Kiara Daniels. “This survey provides important insights into what our local businesses need to achieve their goals and the challenges they are facing. I’m eager to ensure that we translate this information into action and continue to make Tacoma an ideal environment for our businesses.” Link here for the full survey result report. About the Tacoma-Pierce County Chamber of Commerce The Tacoma-Pierce County Chamber is the voice for business and a catalyst for prosperity in Tacoma. Our vision is to support a thriving business environment that promotes economic growth and livability in our community. About the City of Tacoma
The City of Tacoma is committed to fostering a vibrant business environment. In line with Resolution 41069, the City is conducting this Business Climate Survey with a diverse group of businesses to deepen our understanding of their needs, optimize existing resources, and prioritize anti-racism in policy recommendations.
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