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Handout - Washington in the Making 2040: A Vision and Plan for Washington's Economy

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A handout for Washington in the Making 2040, described on its cover as a vision and plan for Washington's economy made for and by Washingtonians. It states that the plan envisions a vibrant Washington state that offers opportunity for every person and prosperity in every region, and describes a 15-year plan shaped by Washingtonians' priorities. The contents list an introduction, an executive summary, priorities and challenges, and four pillars with goals and strategies: business environment, workforce, infrastructure, and place and community. It also directs readers to an online hub at WA2040.org and to attend a summit.

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“Handout - Washington in the Making 2040: A Vision and Plan for Washington's Economy.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-01-14-a33597-d290571-awb-washington-in-the-making-2040-handout-22b93ac77c/, SHA-256 67e7d12b96cf90a7614ece23b0ebbaf0d602950af63327a9f6681f6e2b2a27fe.

Full text

A vision and plan for
Washington’s economy made
for and by Washingtonians
On the cover. Katie Pype is a controls engineer at AST in Tacoma, helping to provide products for the pharmaceutical
and biotechnology industries. “Manufacturing is a blend of options,” Katie says. “You can be blue- or white-collar, on
the floor or in the office. People don’t understand how high-tech manufacturing is getting.” Washington residents’
top economic priorities include investing in industries like manufacturing that create family-wage jobs.
                                                                     washington in the making 2040




A plan for opportunity and prosperity
Washington in the Making 2040 envisions a vibrant Washington state that offers opportunity for every
person and prosperity in every region. This plan reflects the experiences, priorities, challenges and
hopes of thousands of Washingtonians who helped inform it — including those sharing their stories on
these pages. Every person in our state can help bring this shared vision to life.


  4 Introduction

  6 Executive summary

12 Priorities we share

14 Challenges: Our shared work ahead


18 Business environment
		
 20 Goals and strategies

22 Workforce
		
 24 Goals and strategies                                             Washington
                                                                     in the Making
26 Infrastructure                                                    2040 pillars
		
 28 Goals and strategies

30 Place and community
		
 32 Goals and strategies



34 Getting connected and getting started



                                                                                                        3
introduction



An economic vision
that puts people first
There’s no Washington economy without Washington people. Inventors and entrepreneurs
introduce innovation and opportunities. Skilled professionals and experienced tradespeople solve
problems and produce exceptional products and services.
In return, a strong Washington economy creates plentiful jobs and competitive wages. It supports
a quality of life that attracts top talent and inspires capable young people to build careers and
families in our diverse communities.
These pages offer a vision of that economy and a 15-year plan to get us there, shaped by
Washingtonians’ priorities. It’s called Washington in the Making 2040.


A plan for and by Washingtonians
Also in these pages, people with wide-ranging experiences share their perspectives on our economy. They highlight
challenges as well as solutions.
Charity Duffy, a former economic development planner in Rock Island, knows about both. She worked with regional
partners on a project to extend a paved trail nearby to this city of 1,300 — giving residents better access to parks and
shopping and creating opportunities for entrepreneurs to open trailside restaurants or breweries to serve weekend
cyclists and hikers.
“A sense of place and quality of life contributes to the economy, but people don’t really get that yet,” Charity says.


                  “Businesses are willing                                           “We need more
                   to spend the money to                                             conversations about
                   locate in Washington,                                             manufacturing as a
                   but the electricity has                                           viable career choice.”
                   to be here.”

 Bob Schuetz is the CEO of Energy Northwest, the                Katie Pype, of Lacey, recently launched a career in
 Richland-based joint operating agency working to               manufacturing. She’d like to see more women working
 meet the growing demand from public utilities and              in a field where she’s found flexibility and opportunity.
 their customers for reliable, sustainable energy.


4
    washington in the making 2040




Trades-education advocates. Serenity
Haines (left) and Cadence Haskins
welcomed high school visitors to
Spokane Community College’s Stannard
Technical Education building in 2024.
Cadence told the students: “Every single
quarter, we get at least one employer
coming in to talk to us, basically
begging us to come work for them.”




                                           5
executive summary



Shared big-picture goals
for long-term success
As economic landscapes change around the U.S. and world, new challenges emerge. We
also face challenges at home.
The demand for affordable, reliable energy is surging. We’re in the thick of a housing crisis
and facing down a growing workforce skills gap. Employers are seeing more welcoming
environments in other states — and by 2040, our population is expected grow by 2 million
to 10 million people.
It’s up to us to lead the way to a better Washington. We must design our own economic
future and work together to achieve our shared success.
Washington in the Making 2040 is a long-range vision and plan for our state’s economy.
The plan comprises 13 goals, representing the state’s major catalysts for opportunity and
prosperity, and 18 strategies for achieving those goals.


An employer-led plan informed by residents
Washington in the Making 2040 was developed under the guidance of two employer-led,
nonprofit organizations and shaped by input from people across the state.
• The Washington Roundtable is composed of private-sector senior executives. It works
  for policy changes that support the state’s economy and foster opportunity for residents.
• The AWB Institute, or AWBI, is an arm of the Association of Washington Business, which
  functions as the state’s chamber of commerce and manufacturing association. The
  institute’s mission is to support long-term economic growth and resilience in Washington.
These organizations aim to help the state maintain consistent, strategic focus across
administrations. Washington in the Making 2040 will support long-term stability while
adjusting to market changes, addressing new challenges, and attracting investment.




6
                                                  washington in the making 2040




The goals fall under four pillars.
In 2040, Washington will have:

               Employers and jobholders who
               thrive in a business environment
               that fosters growth and innovation.




                A world-class workforce.




                Infrastructure and connectivity
                that serve everyone.




                Exceptional quality of life in
                every place and community.



                                                                              7
executive summary



Shared work toward
our shared future
The goals and strategies in Washington in the Making 2040 provide a framework to build upon.
But the plan is also a call to action.
Its success depends on employers and neighbors, entrepreneurs and economists, elected and
civic leaders — people from every part of the state who can bring expertise and creative solutions
to our shared challenges.
Washington in the Making 2040 Solution Summits will unite business owners, civic and community
leaders, and others to share ideas for bringing the plan to life. Policymakers and others will
convene at Policy Summits to transform those ideas into advocacy and action.
People like Shana Peschek, executive director of the Machinists Institute, are already working on
innovative solutions. The institute is creating two child care centers with nonstandard hours to
serve shift workers’ families. A shortage of accessible, affordable child care affects workers and
employers across the state.
“A huge portion of the workforce wants employers to be part of the solution,” Shana says. “There
 are lots of ways to do that.”


Using Vitals to gauge progress
Progress toward Washington in the Making 2040 goals
and strategies will be measured and tracked.
The Vitals are an interactive set of economic indicators
updated regularly to reflect progress at the county,
regional or state levels. Access them at WA2040.org/
vitals.
                                                                                    Scan the QR code
In addition, periodic reports will address progress in                              to see the Vitals.
areas where direct indicators aren’t available. They will
be published at WA2040.org/research.                                                WA2040.org/vitals


8
                                                   washington in the making 2040




On-the-job learner to leader. Andrey Khlevnoy
designs a fixture for 3D printing at Harper
Engineering Co. in Renton. He got work-based
learning opportunities starting at 16 and joined
the company right after high school. Andrey
rose to the position of shop lead.




                                                                               9
looking back




               Legacy of leadership. Dave
               Rankin is president and CEO
               of Rankin Equipment Co. in Union
               Gap. He represents his family’s
               fourth generation at the company,
               which provides attachments
               and equipment for the farm,
               landscape and construction
               industries.
10
                          washington in the making 2040




Where we’re coming from —
and where we want to go
In Washington, we share broad-scale
challenges that affect our economy,
businesses, communities and families.
We also share values and priorities
that will guide our work ahead.




                                                     11
priorities we share



When it comes to Washington’s
future, residents agree on plenty
Washington in the Making 2040 grew out of the perspectives and priorities
shared by thousands of business, civic and community leaders and other
residents. They conveyed an exceptional level of agreement about what
Washington’s future should look like.

Altogether, more than 4,200
Washingtonians participated.




                                                                3,500
• A random sample of 3,500 people, including people
  in all 39 counties, completed a statewide survey. This
  public opinion survey collected opinions about economic
  challenges in their communities. It was conducted by
  DHM Research.
• 471 people gathered at 22 economic development                  surveys statewide
  groups to attend town hall meetings. And 241 people
  who couldn’t attend completed town hall surveys.
• 65 subject matter experts helped shape the plan.


The survey and town halls found similar concerns:                           counties
• A lack of affordable and available housing, which
  residents said affected many aspects of the economy.
• A need for more workforce development and for
  investment in training, the trades and connecting
  young people to opportunities.
• Infrastructure concerns about energy, water, roads and         town hall meetings
  transportation, and broadband internet access.




12
                                                                                                      washington in the making 2040




Washington residents’ top economic priorities
When it comes to what matters most, Washingtonians share vastly more common ground than
differences. Specifically, strong consensus in the resident survey emerged around 14 ideas — priorities
that rose to the top for the most people. In that survey, 85% or more of respondents said these priorities
were “somewhat important” or “very important.” These priorities drive Washington in the Making 2040.

Ensure Washington has adequate water supply for residential, agricultural and industrial needs.                        93%
Expose teens to more career paths, including through work experience before high school graduation.                    93%
Do more to keep communities safe.                                                                                     92%
Create enough jobs that allow people to afford to buy homes in their communities.                                  90%
Enhance, grow and increase access to education or training programs
that prepare workers for high-skill, high-demand jobs.                                                           89%
Ensure everyone has access to health care services.                                                              89%
Maintain or improve local parks, playgrounds, trails and public gathering spaces.                                89%
Invest in industries like manufacturing, technology and health care that create
family-wage jobs that help Washington’s economy consistently grow.                                              88%
Increase the number of students who graduate from college, trade school,
apprenticeships or other professional credential programs.                                                      88%
Prioritize education funding for high-skill, high-demand jobs (such as nursing, cybersecurity or trades).       88%
Ensure Washington has enough clean, affordable and reliable energy.                                             87%
Ensure economic growth benefits people of all ages, races and income levels.                                  86%
Ensure that high-speed internet access and cell phone connectivity is available to every Washingtonian.       86%
Build enough affordable housing to support a growing workforce.                                              85%
                                                                                                                                 13
our shared work ahead



It’s time for Washington
to think differently about
our economic challenges
Creating the change we need across industries and communities will require
concerted and sustained collaboration, planning and action. It also will require
a change from our old way of doing business.
In the old way, priorities and focus shifted along with leadership changes
at the state and local levels. Washington in the Making 2040 represents a
new way. We’re seeking solutions to challenges that business owners and
community leaders say are most crucial. Our focus is on the long term.




     Business                 Workforce                  Infrastructure            Place and
     Environment              challenges                 challenges                Community
     challenges                                                                    challenges
                              Let’s address              Let’s meet the
     Let’s repair our         training and               steeply rising            Let’s address
     complex system           education                  demand for                shortages of
     of regulations,          hurdles so                 affordable, reliable      affordable housing
     taxes, policies          employers can              energy and ensure         and behavioral
     and processes so         hire workers               our water supply          health care affecting
     more businesses          with the right             can meet our              employers and
     can succeed.             skills and                 future needs. Let’s       communities.
     That includes            credentials.               fill gaps in our          Let’s ensure every
     manufacturers and                                   transportation and        resident can access
     BIPOC-, woman-                                      internet-connectivity     the quality outdoor
     and veteran-owned                                   networks.                 space that sets
     businesses.                                                                   Washington apart.



14
                                                            washington in the making 2040


Thinking differently
to build stronger
classroom connections
Washington’s construction industry needs to attract
high-schoolers of today to its workforce of tomorrow.
A program called Core Plus Construction offers a
needed bridge between education and industry. The
program offers school districts across the state a high-
quality construction curriculum, industry-sponsored field
trips and other opportunities.
Founded by Boeing and other industrial employers
in the Seattle area, Core Plus has expanded across
many industries. Core Plus Construction is in close to
100 high schools and most Washington skill centers. It
demonstrates how an industry can help develop its
workforce — and how we can think differently to address
problems more effectively.
“It’s moving industry away from ‘We want immediate ROI’
 to ‘You’ve got to look long-term,” says Sarah Patterson
 (pictured), workforce development director at the
 Associated General Contractors Education Foundation.
As they developed the program, Sarah and others
shifted their focus from directly reaching students to
supporting their teachers.
“We’re now providing the professional development
 that has not been provided to educators as members
 of our industry,” Sarah says. “Because if we don’t have
 a really strong classroom teacher that we can keep
 in that classroom, it doesn’t matter how excited
 those students are.”

                                                                                       15
looking ahead




Skills and experience. Pump
assembler Scott Thompson
has worked more than
30 years at Vaughan Co.,
a family-owned pumping
and mixing equipment
manufacturer in Montesano.




16
                         washington in the making 2040




Where we’re going —
and how we can
get there together
Whether we’re shaping policy
or teaching young people new
skills, every person in every
part of the state can help
bring the goals of Washington
in the Making 2040 to life.




                                                    17
business environment



Companies need
a supportive climate
to open and thrive
Washington is known for bold ideas, game-changing methods
and life-changing products. People here are driven to invent
and create — to launch and grow businesses of all sizes that    “Everyone
contribute to our communities and economy.
                                                                 understands the
Too often, however, business owners come up against              end goal. We all
regulations, permitting processes and tax policies that work
against them, sometimes before they really get started.
                                                                 want businesses
                                                                 to thrive. How
We envision a business environment that fosters growth and       can we eliminate
innovation. By 2040, any business owner with a great idea
and a drive to succeed should know Washington is the place to    processes that
achieve their goals.                                             can impede
                                                                 growth?”




                                                                Yani Cisneros
                                                                Board Chair,
                                                                Central Washington
                                                                Hispanic Chamber
                                                                of Commerce




18
                                             washington in the making 2040



For coffeehouse owners,
opening small businesses
was a tangled process
Efrain Martinez (pictured, on the right)
and Fidel Negrete grew up in Yakima
Valley communities with deep Hispanic
roots. Now they own two coffeehouses
and a juice bar in Yakima and Wapato,
employing a dozen people.
Their journey to ownership was, at
times, confusing. They were surprised
to find along the way, for instance, that
they needed licenses from multiple local
entities as well as the state. “We did
not know where to get resources,” Fidel
says. “We spent a lot of time Googling.”
They eventually lucked out, finding
guidance and a loan through a rural
community-development program.
Others struggle for longer, or they’re
never able to open, says Yani Cisneros,
chair of the Central Washington Hispanic
Chamber of Commerce.
For some people, resources for small-
business owners aren’t created in their
languages. Sometimes the processes,
paperwork and filings feel like a twisting
maze, including dead ends. Supporting
small businesses means adding
mentorship and resources while also
untwisting the maze.


                                                                        19
business environment



We can make our state
a top spot for business
By working together toward these goals,
we’ll turn our shared vision into reality.

GOALS                                        STRATEGIES
The vision for 2040                          To get us there, let’s:


                                             Make the regulatory, permitting and
Washington is a top state                    tax environment more competitive,
for starting, growing and                    predictable and consistent.
selling a business.

                                             Develop industry-specific policies and
                                             strategies to help the manufacturing
                                             sector grow and succeed.
Washington is a leader in
supporting manufacturing jobs                Develop resources, mentoring and
and manufacturers’ growth.                   support programs, and investment-capital
                                             opportunities specifically for BIPOC,
                                             woman and veteran business owners.


The number of successful and                 Promote efforts to centralize and
growing BIPOC-, woman- and                   streamline state processes for starting
veteran-owned businesses reflects            a business; align and speed permitting
Washington’s population.                     processes across local jurisdictions; and lift
                                             other barriers to starting a new business.




20
                                                                                             washington in the making 2040




Manufacturers create jobs
that underpin the economy
Manufacturing is the backbone of many strong economies. These jobs pay well and offer good
benefits, contributing to families’ financial stability and communities’ quality of life. They also tend
to support other jobs: When workers spend their earnings locally, businesses in sectors as varied as
restaurants and health care get a boost, too.
In Washington, manufacturing jobs are still recovering from the pandemic. In 2021, the Legislature
passed the Building Economic Strength Through Manufacturing Act. The state is making slow progress
toward its goal of doubling manufacturing jobs and woman- and minority-owned firms over 10 years.


Making Washington a manufacturing leader
Policies to support growth could address supply chain needs, regulatory or tax environments,
and other issues affecting the industry.

TOTAL MANUFACTURING JOBS IN WASHINGTON



                                                                                                                    250K




Source: Manufacturing Jobs Vital, AWB Institute (WA2040.org/indicator/manufacturing-jobs/)




                                                                                                                        21
workforce



Our world-class workforce
will require employers
to help develop talent
Thriving businesses need great talent. Employers in
Washington are facing a shortage of workers with the right
training and credentials.                                        “The nature of
Employers play a crucial role in nurturing and training
                                                                  work is changing.
tomorrow’s talent, says Paula Linnen, board chair of the AWB      Technology is
Institute and principal at The Foster Institute. But they need    evolving.”
more flexible regulations to provide on-the-job learning
opportunities: “People learn in very different ways. Those
experience-based learning opportunities are everything.”
Meanwhile, a shortage of affordable, accessible child care
holds parents and other caregivers back from education and
jobs. Parents can’t train or work when they can’t find care.
In 2040, we envision an economy where Washington
employers can count on a skilled, talented and inspired
                                                                 Paula Linnen
workforce. Young people have clear pathways to jobs that         Principal,
fulfill them — and parents can count on child care so they       The Foster Institute
can prepare for and work at those jobs.




22
                                                washington in the making 2040




Solving problems in new ways
at a Spokane child care center
The children at Luc Jasmin III’s Parkview
Early Learning Center in Spokane learn
science and emotional awareness while
their parents work, study or build skills
on the job.
But many families struggle to find and
pay for care. “This is an everyday scenario,”
Luc says.
In some pockets, partners are coming
together to address the shortage. Luc is
working with a Spokane employer to start
a child care program for its own workers
and other families in the community.

The employer had the space, its
employees had the need, and Luc’s team
had the child care know-how. It’s an
innovative solution that benefits everyone.
Says Luc: “It’s been all hands on deck.”




                                                                          23
workforce



We can make our state’s
workforce the nation’s best
By working together toward these goals,
we’ll turn our shared vision into reality.


GOALS                                        STRATEGIES
The vision for 2040
                                             Ensure 70% of Washington students
                                             across racial and ethnic groups are earning
Washington is home                           post-secondary credentials by age 26.
to the best prepared,
trained and credentialed
                                             Create 10,000 new work-based learning
workforce in the U.S.
                                             experiences every year for students.


                                             Reform regulations so more small
Work-based learning opportunities            businesses can provide work-based
abound for young people and others           learning experiences.
entering the workforce, with 75% of
employers offering experiences or
exposure to help launch careers.             Support an education funding structure
                                             that incentivizes institutions to meet the
                                             enrollment and credentials attainment
                                             needed by Washington’s workforce.
Parents and caregivers in
every community can access
and afford quality child care                Reform regulations and support
while they’re at work.                       collaboration among state and federal
                                             agencies to help more child care providers
                                             open their doors to more children.



24
                                                                                                           washington in the making 2040




Employers are facing a growing skills gap
Washington job openings will require a more highly skilled workforce. But residents
aren’t gaining the right skills at the right levels to fill them. Our largest credential gap is
related to the need for people with bachelor’s degrees and higher — education levels                               “The bottom line is
linked to the biggest wage increases for workers. But the shortage also affects employers
searching for people with associate’s degrees, certifications and apprenticeships.                                  we don’t have the
                                                                                                                    population or the
The lag between jobs and learning by 2032                                                                           skillset we need.
Some 75% of all job openings in Washington state from 2023 to 2032 will require
                                                                                                                    If we are going to
education beyond high school, based on national research. Of the projected 1.5 million                              survive, we need
openings over that period, 45% (686,000 jobs) will require at least a bachelor’s degree.
Another 20% (313,000 jobs) will require apprenticeships, certificates and other training
                                                                                                                    to change that.”
credentials. Meanwhile, residents with high school diplomas or less will total 639,000.
They’ll compete for far fewer jobs, leaving more than a quarter million with few options.


  REQUIREMENTS                        OPENINGS                WORKERS*

  Bachelor’s degree                   686,000                 385,000                           -301,000
  and higher



  Associate’s degree                  155,000                  89,000                            -66,000            Wade Larson
                                                                                                                    Director of Workforce
                                                                                                                    Development at
  Certifications,                                                                                                   Spokane-based
  apprenticeships                     313,000                  86,000                           -227,000            manufacturer Wagstaff
  and other training
                                                                                                                    Director at the Production
                                                                                                                    & Manufacturing Institute,
                                                                                                                    which introduces young
  Noncredentialed                     385,000                 639,000                          +254,000             people to careers
                                                                                                                    in advanced manufacturing


*Workers include new Washington graduates and people moving into the state.

Source: “Skill Up For Our Future,” October 2024, by Washington Roundtable, Partnership for Learning and
Kinetic West; based on data from the Georgetown University Center on Education and the Workforce.
                                                                                                                                             25
infrastructure



Building up our energy capacity
and other economic drivers
Key parts of Washington’s infrastructure, directly connected to the economy, need
attention: energy, water, transportation and broadband internet access.
We’ve enjoyed a competitive advantage, thanks to our affordable, cleaner energy,
including hydropower, natural gas and nuclear energy. But the energy forecast calls for
steeply rising demand, complicated by carbon emissions standards and other factors.
Our water supply faces more challenges than ever. And as the world grows more
connected every day, employers and communities lacking fast, reliable internet access
and an efficient transportation network will fall further behind.
In 2040, we envision an economy where a reliable, resilient infrastructure allows
Washington employers and residents to compete on a global level and live well.




For farmers, water is harder to come by
Leslie Druffel is the outreach director at the      With the effects of climate change, such
McGregor Co. in Colfax, which provides seed,        as higher temperatures and changing
fertilizer, equipment and other supplies to         precipitation patterns, there are more
growers in the Inland Northwest. She lives on       restrictions on water for irrigation.
a dryland wheat farm in nearby Colton.
                                                    But Leslie sees potential in innovations that
Agriculture is at the heart of the region’s         improve water efficiency. Sprinklers that
economy. Crops like wheat, barley and peas          provide highly uniform water distribution can
are predominant.                                    help reduce runoff, for example.
“Access to water for irrigation is critical,” Leslie “It blows your mind all the cool things they’re
 says. “That is getting more challenging,             doing,” she says.
 whether it’s water rights issues or you’re last in
 line for water if there’s a curtailment.”

26
                                     washington in the making 2040




                                   “The goal is a stable
                                    water supply, which
                                    we don’t have. In
                                    an ideal world,
                                    there would be
                                    a comprehensive
                                    state water plan,
                                    recognizing that
                                    local situations call
                                    for local solutions.”

                                   Mike Faupel
                                   Executive Director,
                                   Palouse Basin Aquifer Committee



Washington roots. Leslie Druffel
is the outreach director at the
McGregor Co. in Colfax.




                                                                     27
infrastructure



We can strengthen our state’s
infrastructure to serve everyone
By working together toward these goals,
we’ll turn our shared vision into reality.

GOALS                                        STRATEGIES
The vision for 2040                          To get us there, let’s:


Our energy infrastructure has                Create and implement a realistic,
expanded to provide abundant,                comprehensive energy-demand forecast and
affordable, reliable and sustainable         plan to support expected population and
energy to meet future demand.                industry growth, as well as the energy transition.

                                             Explore and develop all sources of low-carbon
The state’s water supply and                 and carbon-free energy, the infrastructure
water-storage capacity meet                  needed to deliver it, and the technologies
our residential, agricultural,               for energy storage and efficiency.
industrial and habitat needs.
                                             Create and execute a statewide water-
                                             demand forecast and comprehensive
                                             plan to guide long-term management.
High-speed internet access
and cell service reaches all
Washington residents.                        Encourage new ideas and efficient
                                             methods to keep expanding
                                             affordable high-speed internet.
An integrated transportation
system, supported by a                       Create a unified transportation plan for
sustainable funding model,                   Washington that fulfills promises, keeps
ensures smooth and efficient                 current infrastructure in good shape,
movement of people and goods.                and addresses gaps in the system.


28
                                                                                    washington in the making 2040




Varied factors                              ENERGY RESOURCES IN THE NORTHWEST
                                                                                            “What happens in
will drive up
                                               2025-2026          2034-2035
                                                                                             other parts of the
energy demand                                                                                state affects all of us.
                                               SURPLUS: 747
                                                                                             Everyone is chasing
Electricity demand in the                                          DEFICIT: 9,505            the same thing —
Northwest is expected to grow
more than 30% over the next                       HYDRO
                                                                                             clean energy.”
                                                  12,316
decade, based on industry
trade group Pacific Northwest
Utilities Conference Committee’s
2024 annual report.                          SMALL THERMAL 29
                                                                      HYDRO
                                                                      11,923
                                                                                                           Matt Steuerwalt
Contributing factors include
                                                                                                           Senior Vice President
population growth, the                         NATURAL GAS
                                                  5,947                                                    of External Affairs,
electrification of transportation                                SMALL THERMAL 11                          Puget Sound Energy
and buildings, high-tech
manufacturing, and the                       RENEWABLES 275
                                                                   NATURAL GAS
emergence of new industries                                           6,781
such as AI.                                      SOLAR 541
                                                                                            “Our energy price
Meanwhile, the state is in an                                    RENEWABLES 257
                                                                                             and the composition
energy transition, shifting from                WIND 1,937

fossil fuels to cleaner, renewable                                  SOLAR 504                of our energy —
energy sources.                              COGENERATION 55                                 being that cleaner
Meeting demand will require
                                                                    WIND 1,559               generation portfolio
investment in more energy
                                               IMPORTS 883
                                                                                            — are differentiators
generation, storage and
                                                                 COGENERATION 14
                                                                                             for Washington.”
transmission.                                   NUCLEAR            IMPORTS 176
                                                  1,116

                                                                     NUCLEAR
                                                  COAL                 994
                                                  1,820                                                    Jason Thackston
                                                                     COAL 197                              Senior Vice President,
                                                                                                           Energy Policy and
Chart source: Pacific Northwest Utilities
Conference Committee’s Northwest
                                                                                                           Chief Strategy Officer,
                                                                                                           Avista
Regional Forecast of Power Loads and
Resources, August 2025 through July 2035       24,918              22,418
                                               MEGAWATTS           MEGAWATTS
                                             (24,171 needed)     (31,923 needed)
                                                                                                                    29
place and community



In every community,
employers and workers
value quality of life
Washington’s housing crisis affects
many parts of our economy.
A shortage of affordable homes has
left families struggling with high
housing prices. Employers struggle to
attract talent, because people can’t
afford to live near their jobs.
Workers paying high costs are
left with less of their paychecks to
spend on groceries and other goods.
Homelessness has surged, and
shelters and transitional housing
programs can’t meet demand.
Meanwhile, land-use laws and
high costs make it harder to build
affordable options.
In 2040, we envision a Washington
where land-use policies and housing
goals align, so all families can enjoy
the quality of life that sets us apart.




30
                                                                          washington in the making 2040




In Spokane, leaders are
looking back to look ahead                                                 “We won’t have to toss
                                                                            out policy objectives,
 Spokane’s housing market, as in other cities and states, has left          like for environmental
“home” out of reach for many.                                               concerns. But with 35
“We have jobs here, but if you can’t bring employees here to live,          years of overlapping
 that becomes a significant problem. That’s a drag on the economy,”         regulations, we’ve
 says Spencer Gardner, the city’s planning director (pictured at left).     lost sight of balancing
Standing in the city’s historic Cliff Cannon neighborhood, however,         habitat for squirrels
Spencer says its diverse homes, people and income levels reflect            with housing for
an old approach to housing that Spokane is embracing again.
                                                                            working families.”
The Cliff Cannon neighborhood is a mix of historic mansions,
modest older houses, townhouses, condos and apartments. Many
of the homes were built to remedy a housing shortage in the early
1900s, Spencer says. Spokane nearly tripled in size from 1900 to
1910, adding 70,000 residents.
“The way we responded then was by allowing a variety of housing
 types in all parts of the city,” Spencer says. “We didn’t wall off
 neighborhoods or overly restrict where housing could go.”
That “all of the above” approach has shaped Spokane’s housing               Phil Wuest
strategies in recent years. But the city had to challenge ingrained         President, Ginn Group in Vancouver,
                                                                            on the state’s Growth Management
ways of working to make it legal.                                           Act, adopted in 1990

Zoning laws were preventing new housing in most parts of the
city. Duplexes, triplexes and small starter homes were hard to
find. Residents mostly had two options: single-family homes or
apartment buildings.
Soliciting community input, the city changed its code to allow for
more variety and more housing. “That’s consistent with our history,”
Spencer says, “and it’s where we want to go in our future.”

                                                                                                                  31
place and community



We can address challenges
to build the homes we need
By working together toward these goals,
we’ll turn our shared vision into reality.

GOALS                                        STRATEGIES
The vision for 2040                          To get us there, let’s:



We have built at least                       Modernize the Growth Management
1 million new housing units                  Act to address current and future
throughout the state.                        challenges in urban, suburban and
                                             rural planning and development.



                                             Create programs and policies that
                                             help make housing more affordable,
Every Washington                             both directly and indirectly.
resident has access to
quality outdoor space.
                                             Support community solutions to maintain
                                             and improve parks, playgrounds, trails
                                             and gathering spaces.


Local and regional efforts                   Make behavioral health positions a priority
are addressing behavioral                    in education and first-responder budgets
health needs in communities                  and adopt licensing best practices so more
throughout the state.                        behavioral health professionals can work
                                             in Washington.



32
                                                                                                              washington in the making 2040




For more middle-income families,
housing is out of reach
Fewer middle-income families in Washington can afford to buy a home, even with
higher wages. This group, at the middle of the income spectrum, is often overlooked in
conversations about affordability.
The Housing Affordability Index measures a middle-income family’s ability to make
mortgage payments on a median-price, resale home. When the index is 100, the                                           “Homeownership
household pays exactly 25% of its income to principal and interest. When it’s below 100,
a household will spend more than 25%, considered not affordable. As of the third quarter
                                                                                                                        does give
of 2024, 36 of Washington’s 39 counties had scores below 100. The three affordable                                      stability. People
counties: Columbia, Garfield and Lincoln.                                                                               who feel stable
Housing affordability in Washington                                                                                     tend to do
                                                                                                                        better in life.”
ALL-BUYER HOUSING AFFORDABILITY INDEX

107


                                                                                                        100




                                                                                                                        Karen Livingston Hall
                                                                                                   55                   Director of Housing,
                                                                                                                        South Puget Sound
                                                                                                                        Habitat for Humanity




      2019           2020             2021              2022             2023             2024

Source: Data from the Washington Center for Real Estate Research at the University of Washington


                                                                                                                                                33
what ’s next



Getting connected
and getting started
Building a strong economy for a vibrant Washington will take creativity, energy,
collaboration and commitment from people across the state. It will take all of us, whether
you’re a community leader, business owner or entrepreneur, educator or policymaker.


We commit to convening, reporting and supporting
Here’s what Washington in the Making 2040 will do.

Drive conversation about the issues. We will continue to raise awareness and
actively encourage dialogue among diverse audiences from across the state.
Bring people together. We will organize and invite employers, local leaders,
policymakers and others to Solution Summits, where they can collaborate and share
ideas for creating change.
Report on progress. We will maintain and update the Vitals, a set of economic
indicators reflecting progress toward the plan’s goals and strategies. We’ll also publish
progress reports on strategies not reflected in the Vitals.
Share information and support. We’ll also share information about demographics,
economic trends and other relevant topics to help organizations and leaders make
informed decisions, along with tools to support local efforts.
Advocate. We will assist with policy development and advocate for policies that align
with Washington in the Making 2040 goals.




34
                                                                         washington in the making 2040




Plug in, share ideas and bring them to life
Here’s what you can do.
Share what you’ve learned. Organizations and communities across
Washington have developed innovative solutions to challenges affecting
the economy. By sharing ideas with one another, we can accelerate            Online hub
progress and build on what’s working.                                        Go to WA2040.org
Attend a summit. Washington in the Making 2040 will require a                or scan the QR code.
diversity of ideas and perspectives. Share what you know about your          • See the plan.
community, business and industry and ideas for making them stronger.
                                                                             • Watch videos.
Plug into the shared goals. How do your local strategies and                 • Explore the Vitals.
goals align with statewide goals? What can you learn from or teach
partners across Washington? How can you collaborate to create smarter        • Sign up for news.
solutions for more people?                                                   • Read research
Put the data to work. The Vitals, a curated set of economic                    and reports.
indicators, make it easy to compare county-level or statewide
performance and to see changes over time. Use these statistics to
determine action priorities in your industry, community or region.
Use and share the resources. Take advantage of updates at
WA2040.org about economic trends and other relevant topics shared
to help organizations and leaders make informed decisions. You’ll also
find tools for chambers and other groups to support local efforts.
Sign up for email updates. Invite others to do the same.




                                                                                                     35
           WA2040.org




     Funders as of May 23, 2025




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