Leaders gauge impact of president-elect’s policies on Clark County businesses

nLight employees work under colored lights inside the clean room. (ZACHARY KAUFMAN/The Columbian)

Photos by Zachary Kaufman/The Columbian Manufacturing Technician Tom Yang works in the clean room at nLight.

Manufacturing Technician Tom Yang works inside the clean room at nLight on Thursday November 20, 2008. (The Columbian/Zachary Kaufman)

Pablo Martinez Monsivais/The Associated Press

Will Barack Obama’s presidency be good for Clark County businesses?

In the years since President George W. Bush took office, $363.3 million in direct government contracts have flowed into area operations, according to federal databases, and the indirect effect of government policy could easily be double that. Now a new leader is about to step in with a broad — and very different — agenda, leaving many business leaders in Southwest Washington wondering where they stand.

Among Obama’s stated priorities:

n Stabilize the economy, which real estate professionals say could help Clark County’s housing market.

n Build new infrastructure, which could reinvigorate commercial contractors as their businesses emerge from a long slow period.

n Expand access to health care, which Southwest Washington Medical Center officials say would help them balance their books.

But it’s not all good news for local businesses. A commitment to pull out of Iraq and possible cuts in defense spending might hurt tech businesses, including nLight and Boeing-owned Insitu, which have boomed with the help of U.S. Defense Department research and development dollars. Some business owners worry that new taxes and health care requirements could create a burden. And after nearly a decade of what some see as lax regulation, government regulators are likely to wield more power under the new presidency.

Much is uncertain, but business leaders contacted by The Columbian said that President Obama’s quick attention to the economic crisis has elevated hopes, despite concerns about some of the specifics of his agenda.

All sectors of the economy need a president who will work to improve consumer confidence and address the current economic crisis so the country can begin to recover from its current crisis, said J. Lennox Scott, chief executive officer of John L. Scott Real Estate, who is engaged in state and national real estate organizations.

“President-elect Obama already has his team together moving forward on this issue,” said Scott, who described himself as optimistic that the inauguration will mark a turning point for the housing market.

Specifically, he would like to see a housing stimulus plan aimed at boosting demand.

Something like that may emerge, but real estate’s turnaround will likely not be at the core of Obama’s agenda when he takes office, said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University in Pullman.

“Whether it’s the overall economy or the war, there are issues that need to be addressed sooner or more aggressively than housing, although getting the housing market stabilized is an important part of the broader picture.”

Obama’s opposition to the war, as well as recent reports that he will cut federal contracts and slash funding for weapons development, could be cause for concern for Southwest Washington employers that have benefited from the boom in defense spending under George W. Bush.

Vancouver-based nLight has received more than $22.5 million in federal contracts over the past six years, mostly for research and development of technologies with defense applications. Bingen-based Insitu, now a subsidiary of Boeing, has received more than $9 million for its work on unmanned aerial vehicles used by the military.

Scott Keeney, president of nLight, said he does not yet know of any changes that would directly affect his business.

“Certainly many worries about the future, but nothing is terribly clear right now,” Keeney said.

Defense spending cuts will likely be offset by increases in infrastructure spending.

On Monday, Obama outlined a plan to invest billions in roads, bridges, schools and alternative energy projects.

Infrastructure projects have long been key to Clark County businesses such as Tapani Underground, Skyward Construction and Hickey Marine Enterprises, which in recent years have built roads and buildings and dredged rivers through government contracts. But the economic contraction is hurting contractors.

“A lot of private projects have been put on hold, either because individuals are cautious or because of funding concerns,” said Randy Graves, executive director of the Southwest Washington Contractors Association. “Work will probably break loose after the inauguration.”

“A number of contractors feel that Obama in office will benefit their companies because of infrastructure spending,” said one person familiar with these businesses, who asked not to be named because of concern about making public political statements.

Joe Kortum, president and chief executive officer of Southwest Washington Medical Center, has no such fear.

“In terms of health care policy, I think we can only go up from here,” Kortum said. “The Bush administration has not done a good job.”

Uninsured patients have long been a financial drag on the hospital, and as the economy worsens, more people have struggled to pay their medical bills, increasing the pinch.

Without firm details of how health care reform might be implemented, it’s hard to know how Southwest Washington would be affected by the changes that Obama may propose, but nonprofits and businesses in health care broadly support Obama’s proposed reforms, Kortum said.

“Fixing the economy and fixing the U.S. health care system would be my two priorities for the president,” he said. “The worst thing he could do would be to sit on his hands and do nothing.”