Executive Summary
Up to 80% of new jobs in Kitsap County will be created by existing businesses.[1] That statement makes a strong argument for the KEDC to focus much energy and effort on those businesses that are already in Kitsap County. As part of Kitsap Economic Development Council’s (KEDC) Business Retention and Expansion (BRE) Program, companies located in Kitsap County were visited and interviewed throughout 2005. The majority of the interviews took place from June to December.
KEDC contacted 85 companies for the site visits, of which 48 or 56% were interviewed. This is a 46% increase over the number of companies interviewed in 2003. (The report for the 2003 interviews is located on the KEDC website under publications). KEDC staff and 14 volunteer interview team members conducted the interviews. KEDC focused on technology, defense contractors, manufacturing, high-end business services and retail-related operations for the 2005 surveys.
Top executives were interviewed using the Synchronist Business Information System® to assess, analyze and report on the local business climate and issues facing Kitsap companies. While individual company information obtained is confidential, this report will detail the aggregate information from the surveys.
Nearly one-half of all companies are located in unincorporated Kitsap County, with the remainder divided among the four cities (Bainbridge Island, Bremerton, Port Orchard and Poulsbo). More than half employ twenty or fewer. Over two-thirds are headquartered in Kitsap County.
Of the 48 companies interviewed, 84% stated they expect to expand in the next three years. Estimated dollar investment is $24.6 million for the expansions. Additionally, 79% note an increase in sales in the past two years and 80% expect to introduce new products or services.
In the past three years, the 48 participating companies have added 219 net new jobs to the Kitsap workforce. By comparison, the 33 companies interviewed in 2003 added 84 new jobs. The majority of jobs represented in 2005 were in production, while nearly half of the 2003 jobs represented in the surveys were technical.
Regarding workforce, nearly 70% of respondents rated the quality from above average to excellent. On a scale of 1 to 7, 2/3 of the companies rated the workforce 4 and above in productivity. Unfilled positions are stable, while existing recruitment challenges are almost evenly split between community problems and industry problems. On several occasions, hard to fill positions were for unique or niche skill sets.
Changes in technology were cited by 93% of the companies interviewed, showing the impact of technology across all sectors. Anticipated changes include GPS, new software applications, coating products, wireless applications and improved video technologies.
Overall, the surveys indicate a positive outlook for companies in Kitsap County. Identified community strengths include a positive quality of life, strong workforce and labor market attributes and good customer/supplier accessibility.
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