New state commerce director puts agency’s focus on job creation

In the past year, Washington employers cut nearly 120,000 workers from their payrolls. October was particularly tough with 5,100 people losing their jobs, pushing the state’s unemployment rate to 9.3 percent.

Clark County has had it worse, with nearly 30,000 residents off the job and an unemployment rate of 13.7 percent.

While agencies at all levels have been grappling with a dismal economic climate defined by a housing crash, big cuts in manufacturing employment and a crippled commercial banking industry, the state’s Department of Commerce is rolling out a plan to renew its focus on job growth.

First outlined in October, the eight-point plan requires buy-in from the Washington Legislature, which will start its 2010 session in January facing huge budget deficits.

“It is all the more important to have a clear sense of priorities (for this department),” said Rogers Weed, commerce department director. “A recession helps wash out where you’re not adding value. If you’re smart you will make the cuts that don’t affect your top priorities.”

Weed, 46, a former Microsoft executive with a track record of innovation, was appointed to his job by Gov. Chris Gregoire in March. He faced two tasks: Restructuring and streamlining a department that had morphed into a catch-all for 200 programs of various sizes and shapes and, at the same time, winning funding support from the Legislature for the department’s changes and new job-growth priorities.

With 350 employees and a biennial budget of $2 billion (which includes pass-through funding for several federal programs), commerce appears ripe for reform. As a first step, the Legislature in last year’s session ditched the department’s former name — the Department of Community, Trade and Economic Development — a reflection of its mixed agenda.

Weed came on board as an outsider with private business experience and a 15-year track record with Microsoft, where he managed teams in the company’s Windows, Mobile Devices, Online Content and Consumer Software divisions. He left Microsoft as a vice president two years ago.

Statewide survey

Now after a monthslong statewide survey of business and industry leaders and groups, conversations with local governments, utilities, housing groups, department employees and legislators, the commerce department is out with a plan called “Defining Commerce: Next Steps in Our Mission to Grow and Improve Jobs.”

The report outlines four top priorities:

n Competitiveness and innovation.

n Education and work force training.

n More efficient regulation.

n Infrastructure investment.

The plan also establishes four additional “targeted priority areas” including community capacity, industry sector focus, rural focus and small-business assistance.

During a recent telephone interview, Weed wanted to talk about small business, which traditionally has been a primary driver of job growth around the state.

“In our survey process, we heard that the (economic) situation is particularly acute for small business,” Weed said. “The tricky part for us is that most small-business programs are federal. But on the other hand, commerce had no one dedicated to small-business issues, no one ready to set up incubator projects or to address the need for access to capital.”

Clark County state legislator Rep. Jim Jacks, D-Vancouver, likes Weed’s approach.

“It seems like he’s moving the department in the right direction,” said Jacks, who just completed his own 50 Businesses in 50 Days survey around Clark County. “When you start to look at commerce, it has a lot of different centers of gravity. Rogers is somebody who comes from the private sector and is good at making things happen. He’s smart, a good listener, he makes the evaluation and implements.”

Realignment coming

Weed, who has visited Southwest Washington several times this year, said he expects the realignment of the commerce department to be finished by the spring. Much is at play in terms of funding from the Legislature, restructuring and figuring out how best to measure the department’s progress on key priorities.

“For instance, this department has not historically been involved in K-12 education,” Weed said. “But employers and others are telling us that we need to be at the table in terms of how the state makes investments in education.”

In all, some 5,000 people through interviews or via the Web provided input on commerce department priorities.

Through the legislative session, Weed and his staff will be determining “what should stay and what should go” from the department’s operations.

As part of the changes, the governor’s Office of Regulatory Assistance will move its business solutions manager to commerce. In addition, commerce will oversee a revamping of the www.business.wa.gov Web site.

Weed appears to have backing from a variety of business groups, including the Association of Washington Business, Greater Spokane Inc., the Washington Technology Industry Association and the Seattle Chamber of Commerce.

Bart Phillips, president of the Columbia River Economic Development Council in Vancouver, said if anyone can pull off the changes proposed for commerce, Weed can.

“But he’s had some huge issues handed to him,” Phillips said. “He’s being asked to do more, but he needs resources … there will be less resources. That’s going to be a challenge.”

Julia Anderson is The Columbian business editor: julia.anderson@columbian.com or 360-735-4509.