Association of Washington Business – Updated Weekly

Setting the vision: Last week, AWB and the Washington Roundtable launched Washington in the Making 2040, a long-term vision for the state’s economy. Dozens of employers and representatives from chambers, ports and universities joined us at the launch event at Chihuly Garden and Glass.

“The ultimate goal is to make an even more vibrant Washington state, with opportunity for every person, and prosperity in every region,” said AWB President Kris Johnson.

AWB News has a full recap and photos from the event. Also check out the press release, and media roundup.

Details: Input from more than 4,200 Washingtonians helped shape the vision and plan. For a quick overview, watch the trailer. Learn more about each of the four pillars in the short videos below:

👷‍♀Talent and Workforce — creating 10,000 new work-based learning experiences for students each year.

💼 Business Environment — making Washington a top place to start, grow and sell a business.

💡Infrastructure and Connectivity — building up energy capacity and ensuring water supply meets future demand.

🏠Place & Community — addressing the shortage of affordable housing.

Call to action: We will host Solutions Summits for leaders to share ideas and next steps. The first will be held this October and will focus on energy generation and transmission. Stay tuned for details.

“Washington in the Making 2040 is more than a vision—it’s a starting point for long-term collaboration and action,” said Washington Roundtable President Steve Mullin.

Data to gauge progress: The AWB Institute Vitals Dashboard tracks the progress of 36 economic indictors including housing affordability, manufacturing job growth, broadband access and more.

Sweeping B&O tax bill: House Bill 2081 makes major changes to the state’s Business & Occupation tax system — and those changes are coming fast. Read about the specific changes that could impact your business.

The key changes in HB 2081 include:

• B&O rate hikes for many industries

• New temporary surcharge on large businesses

• 1.5% B&O tax on big financial institutions

• Advanced computing tax hike

• Stricter rules on investment income deductions

👉 Download the PDF version here.

Share your feedback: This bill — the single largest tax increase in state history — was rushed through the Legislature. We need your help to uncover all the impacts. Please email AWB Tax & Fiscal Policy Director Max Martin with questions and concerns.

More changes: We’ll be rolling out additional information for employers about upcoming tax changes in the coming weeks. Click here to read about SB 5814, a major tax change on services.

🐮 Dairy plant fires up: The first shipment of milk arrived at Darigold’s massive new processing plant in Pasco last Monday. The 500,000 square foot plant is a $1 billion investment in the state’s dairy sector — the largest in Darigold’s 100-year history. The plant will employ 200 people and support up to 1,000 indirect jobs.

Modern and efficient: The state-of-the-art plant will process up to 8 million pounds of milk per day from 100 regional dairies, producing milk powder and butter for customers around the world.

Supporting farmers: Dairy farms who sell their milk to Darigold were eager to see the new plant up-and-running. The dairy cooperative has 250 member farms across the Pacific Northwest.

“It anchors our future. It allows our dairies to grow,” said Allan Huttema, a Parmak, Idaho dairy farmer who serves as president and CEO of Darigold.

Grand finale: Thank you to everyone who participated in AWB’s regional meetings in the Tri-Cities and Spokane last week — and at earlier meetings in Bremerton, Vancouver and Bellingham.

• The 2025 legislative session was rough, adding tax increases and new regulatory burdens on employers. Still, we were glad for the chance to hear real-world impacts and how AWB can represent businesses across the state in Olympia.

Next up: We’ll be back in Spokane Sept. 16-18 for our annual Policy Summit, our biggest event of the year. Register early for the best ticket price and book your room in AWB’s discounted room block. Stay tuned for details on the agenda.

U.S. employers add 139,000 jobs in May as job market cools

The U.S. economy added 139,000 jobs in May, more than expected but still a slowdown from April. Health care companies and restaurants and bars added workers, while employment in many other industries showed little change, according to employment data released Friday. The federal government sector cut an additional 22,000 jobs.

The nation’s unemployment rate held steady at 4.2% — however, the data also shows that 625,000 people dropped out of the labor force.

“The job market is still standing tall even as some of these headwinds start to blow,” said Daniel Zhao, lead economist at the jobs website Glassdoor. “But ultimately we’re all still waiting for the other shoe to drop. It’s still much too early for tariff impacts to be a significant drag on the economy.’’

As data center demand soars, Amazon expands use of recycled waste water to cool its cloud

Amazon Web Services is over halfway to its goal of being “water positive” by 2030. With the help of a newly announced initiative expanding the use of recycled wastewater to cool 120 of its U.S. data centers, AWS expects to avoid the consumption of more than 530 million gallons of drinking water.

Bloomberg recently reported that nearly two-thirds of the U.S. data centers that were built or are under development in the past three years are located in water-stressed areas. Amazon alone plans to invest $100 billion in its data centers over a decade, which includes construction of new facilities.

AWS is also investing in alternative water storage efforts, including the restoration of watersheds and wetlands that naturally replenish supplies and the construction of water treatment systems.

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Rep. Victoria Hunt appointed to state Senate

State Rep. Victoria Hunt, D-Issaquah, was chosen last week to replace the late Sen. Bill Ramos in the Senate. Ramos died unexpectedly on a trail run on April 19. Zach Hall, an Issaquah City Council member, was picked as Hunt’s replacement in the state House.

The Senate seat will be on the ballot in a special election in November, with the winner serving through 2026. Former Republican state representative Chad Magendanz will challenge Hunt for the seat.

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Seattle socialist Kshama Sawant to run for Congress

Kshama Sawant, a socialist who served a decade on the Seattle City Council, will run for Congress in Washington’s 9th District in 2026, challenging longtime Democratic U.S. Rep. Adam Smith. Sawant, who is running as an independent, called for policies including a $25 an hour minimum wage and universal health care at her campaign launch.

An attorney and former state legislator, Smith is the longest-serving member of Washington’s U.S. House delegation. He was first elected in 1996 and serves as the Democratic ranking member on the House Armed Services Committee. The 9th district includes parts of Seattle and Bellevue and south King County.

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Alaska Airlines announces first European destination: Rome

Alaska Airlines will launch nonstop flights from Seattle to Rome starting in May 2026, the third widebody international flight the airline will offer from Seattle and its first European destination.

“Rome has been at the top of the list ever since we announced our new global gateway out of Seattle,” Alaska Airlines CEO Ben Minicucci said.

Alaska Airlines began direct flights to Tokyo in May and plans to begin service to Seoul on Sept. 12.

Open your doors to the eyes of the world by becoming a stop on the 2025 Manufacturing Week bus tour. AWB is looking for a few good manufacturers to show us your shop floor as we cross the state in October for our ninth-annual cross-state tour, sponsored by Banner Bank and Premera.

To be considered, tell us about your company by filling out this logistics form. We have visited hundreds of Washington manufacturers over the years — every one unique and each one inspiring. We can’t wait to hear from you!

Check out our video from last year's tour to explore the shop floors we visited. We'd love to include you in 2025. Our tour is coming through western Washington Oct. 1-3 then heading east of the Cascades Oct. 6-8. We’ll see you on the road.

Civics showdown: Fifteen middle-school students from around the state will test their civics knowledge in the National Civics Bee Washington State Finals at 10 a.m. Saturday, June 21 at Olympia High School. The event is open to the public and free to attend.

• Students will compete in live quiz rounds and share their essays on their ideas to improve their community. Top finishers will take home cash prizes and the winner will receive a trip to Washington, D.C. to compete in the National Civics Bee national championship this fall.

Open to the public: All are welcome to attend the Civics Bee finals. If you’re an Olympia-area business, come and cheer on the next generation of civic leaders during this exciting competition.

The judges: The three-judge panel will include Bill Brownsberger, president of Saint Martin’s University President; Joyce D. Hammer, deputy executive director for education at State Board for Community & Technical Colleges; and Ben Small, executive director of LaunchNW. Catherine Brazil, director for Spokane and Eastern Washington Relations at the University of Washington, will serve as emcee.

Wanted — chamber partners for next year: The U.S. Chamber of Commerce Foundation is seeking Washington chambers to host regional competitions to support the National Civics Bee in 2026. Applications are open through June 16.

Save the date and register now for the 2025 AWB Policy Summit, Sept. 16-18, at the Davenport Grand Hotel in Spokane. Save money and reserve your spot at the hotel with AWB’s discounted room block, giving you the best spot to enjoy Spokane without missing any of the action at Policy Summit.

Insights and expertise: AWB is inviting top state and regional leaders to speak with you at the Policy Summit, presented by AT&T:

• Economist Matthew Gardner, who has been a popular and energetic speaker at a number of AWB events, will bring you the latest economic news and updates on the housing market.

• Stay tuned as we announce more speakers and panels.

• Watch video highlights of last year’s Policy Summit.

Celebrating the Class of 2025 & the Pathways Ahead

Across Washington state, students from community colleges, technical schools, and universities are donning caps and gowns, celebrating their achievements, and preparing to take their next big step: entering the workforce.

👏Congratulations to all the graduates!

Your dedication and determination have brought you to this moment. Whether you're stepping into a career, continuing your education, or exploring new opportunities, your future is bright — and Washington’s workforce is better because of you.

💡Looking to gain experience or take your next step?

Whether it’s an internship, apprenticeship, or entry-level job, the Washington Workforce Portal connects students and recent grads with employers ready to invest in new talent.

🔗Ready to connect?

Let’s continue to strengthen the bridge between classroom and career – for every student, in every community. Explore opportunities or post your own at: washingtonworkforceportal.org

Amid all the uncertainty facing businesses today, one thing you can count on is having access to best-in-class service offerings through AWB. To help your company stay competitive, in compliance, and recruit the best and the brightest, AWB offers members products, including:

• High-quality health insurance

• Robust 401k retirement programs

• Workers’ compensation premium savings and safety services

• A comprehensive suite of ancillary benefits such as dental, vision, disability, and life insurance

What members say: “Being able to offer health benefits is extremely important to us. Our broker recommended HealthChoice 20 years ago, and it has been a great choice for us,” said Alta Group President David Haavik.

• “I have never heard a complaint from any of my employees in all these years.”

More information: Please visit AWB’s member services page.

“Just think back to your first exposure to a job or industry that clicked for you — that, looking back, launched or inspired your career path. What if every employer in our state saw itself not just as a seeker of talent but as a developer of talent – so much so that they provide experiences and opportunities for as many young people as they can.” ~Paula Linnen, AWB Institute Board chair and principal of the Foster Institute, speaking at the launch for Washington in the Making 2040 about the goal to provide 10,000 new work-based learning experiences every year for high-school students.