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A recipe for deep, rich success

Tara Gilligan Reimer
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A recipe for deep, rich success

Change in ownership at Chocolate Necessities showcases open collaboration and careful craftsmanship

Never underestimate the power of your custodian. The person who is making your building clean, safe and operable also may be sourcing world-class ingredients for use in creating the finest chocolates and truffles for Whatcom County. That’s exactly what Kevin Buck did 37 years ago. After long workdays of swabbing floors and cleaning classrooms for the Ferndale School District, Buck meticulously built his business — after school hours — and named it Chocolate Necessities.

In the same way he carefully built up his esteemed business, Buck is easing out in a planned transition. He sold his iconic Bellingham-based business to new owners Rose Vogel and Michael Howell, but Buck remains involved, in person and daily, during this transitional stage. Together, to date, these three entrepreneurs have invested five months of study, information-sharing, training and collaboration. Their careful attention to detail and mutual regard for each other reveal leaders — one exiting and two coming up — committed to deep, rich success in business and personal relationships.

The handcrafting facility of Chocolate Necessities is sited at 4600 Guide Meridian, the highway that cuts north/south, connecting Bellingham to Lynden and the Canadian border. On the Guide, a large cocoa-colored sign with the truffle logo beckons Whatcom residents, Canadian friends and travelers to chocolate inside the charming, European-style shop and tasting room.

Behind the storefront and tasting room for customers at the Guide Meridian location is the handcrafting facility. Here, slabs of chocolate are received from overseas suppliers. Tempering machines are calibrated to slowly meld ingredients. The chocolatier and her assistants artfully concoct truffles. Hundreds of finished chocolates rest on stainless steel trays, slotted into specially made chocolatier carts.

A second retail location is at 1408 Commercial St. in downtown Bellingham. Across from Mount Baker Theatre, a just-right-sized shop features cases of chocolates and rows of truffles, individually nestled in crinkly wrap or available for bundling in gorgeous, luxe packaging. The owner and chocolatier, true aficionados, offer seasonal creations — rich cups of hot chocolate in winter and scoops of gelato in summertime. This winter, a new blackberry passion truffle debuts, with a passion fruit chocolate center and Samson Estates blackberry wine inside of a dark chocolate shell with yellow stripes. For seasonal giving, there is a Mexican hot chocolate truffle — a new combination of milk and dark chocolates with cinnamon and Fireball cinnamon whisky in dark or milk chocolate shells and topped with cocoa nibs.

All these delicacies, a rich and top-sourced array imagined by Buck, will continue. And new owners Vogel and Howell are especially passionate about being part of thriving downtown Bellingham. Business Pulse talked to all three owners — the selling partner and the two new owners. Here is their story of transition.

New ownership
Business Pulse: Rose Vogel and Michael Howell are the new owners of Chocolate Necessities. Can you tell the story of how they identified your business and how you came to the decision to sell?
Kevin Buck: Their daughter had capably worked for me, pulling espresso shots and describing the different kinds of chocolates for customers. So, we knew each other through their family. Rose and Michael called me up, asking, “Are you interested in selling the business?” With 37 years of ownership, I had begun exploring how to do that. For me, the most challenging part of selling was figuring out how to value every piece — from the handcrafting facility to the marketing. I sought outside help to do that valuation, which was a great benefit.

BP: You differentiate between what might be described as flat-tasting American chocolate candy and the handcrafted, high-end-sourced chocolates at Chocolate Necessities. Can you describe your difference?
KB: We are an ingredient-driven company. I started sourcing chocolate from the finest places: the Barry Callebaut factory, north of Brussels, Belgium. I visited, and it was a cultural moment for me. Those chocolatiers are perfectionists. It was there that I found my culinary focus.

BP: What makes your chocolate taste different?
KB: With chocolate from the world’s best sources, it’s important to understand the precise balance of sugar, cocoa butter and cocoa beans. The marketplace has promoted profitable sugar, so the chocolate you choose at the store probably has too much sugar and not enough of the high-quality ingredients. I wanted to arrive at the top of the quality mountain. What are the kings and queens enjoying that we don’t know about?

BP: What other attributes attracted you as new owners to this business?
Michael Howell: This is an iconic, local, Bellingham business. We share Kevin’s same passion for quality and community. We would have been disappointed if Kevin retired or sold to a large conglomerate. We’re grateful to continue his legacy.

BP: In this transition, you described working side-by-side — new owners with selling proprietor. Can you describe what must be the immense value here?
KB: I would describe this side-by-side training as almost perfect. Michael has absorbed every detail. Already, he comprehends almost everything and has a deep understanding of the process. Each day, a couple of excellent questions will pop out.

The value created by Kevin Buck
BP: Central to any business plan is an exit strategy. For the benefit of other Whatcom business owners, how has your strategy worked?
KB: Three years ago, when COVID-19 came along, we didn’t overreact, and we became super-efficient. We closed the downtown store for six months but stayed at the location. And our customers were amazing. One woman picked up a box of almond bark every week; she gave it away to friends and helped me keep in business, too.

My workload had become six days a week, so I began thinking about selling. I analyzed each step and moved slowly. But I had the opposite strategy in finances, where I directed a fast-buying-and-paying-on-time rhythm. I was careful about not going into debt.

BP: You started this business with savings from your school district job. Did you set out to create a signature chocolate in Whatcom?
KB: For 10 years, I worked as a custodian at an elementary school in Ferndale. When I started Chocolate Necessities, I only invested $200, and I paid as I went.
No, I didn’t set out to make a signature chocolate. I wanted to make something that I really liked — no shortcuts. I found my source chocolate in Europe. I used different grades of the Belgian Callebaut, and I tasted my way into our current offerings. We now offer many different chocolates, in milk, dark and white.

Years ago, I took a personality work profile assessment. My interest was not in making money so much as serving our community. That’s how I see my work at Chocolate Necessities. I found a way to give our community what you might never discover: European-inspired, high-end chocolates.

BP: Looking back on 37 years — what could be described as one generation in your business — what have been the keys to your success?
KB: I’m an information guy. I enjoyed the complexity of creating a world-class chocolate. Cocoa butter is the most expensive ingredient, and I never skimp on this important component that melts. Friends tasted what I was concocting, and they said, “You could sell this.” Getting good equipment was important, too.

BP: As a longtime owner of an established business, what are the benefits of doing business in Whatcom County?
KB: Customer loyalty to our small business has been emotionally fulfilling and almost overwhelming. Across all economic strata, customers enjoy our chocolates. I’ll never forget the day the president of a locally owned bank pulled up in his fancy car to purchase chocolates from us.

Our chocolate can be found at the Community Food Co-op, San Juan Island Roasters in Friday Harbor, Skagit’s Own Fish Market and under private label for several area organizations — Samuel’s Furniture, PeaceHealth and many nonprofits.

Continuing the legacy
BP: What would you like readers to know about your experience or connections to the area?
Rose Vogel: I was born in Bellingham, and I was raised in Guadalajara, considered to be the cultural center of Mexico, with its museums, galleries and cuisine. I’m well travelled, so I’ve tasted chocolate throughout the world, and I’m quite proud of the selection at Chocolate Necessities.

I work in Bellingham, support local businesses, and didn’t want to see Chocolate Necessities close. Michael, my husband and business partner, and I reached out to Kevin because we want to keep the business alive, keep downtown vibrant and colorful, and offer quality for our community.

MH: I received my ecology degree at the University of Georgia. After traveling the country for a year, I found it difficult to leave Bellingham. That was in 2004.

I have a lot of experience in residential construction and remodeling, designing and building custom spaces. My science background led me to a specific strength: I always put function before form. After getting to know Kevin, I found that we shared that same value. The quality of the ingredients is the primary function and cannot be compromised.
I am extremely thankful to Kevin for guiding us so we can avoid errors moving from understanding to commercial application.

BP: What is the role of the chocolatier?
RV: For almost a year, our chocolatier, Valentyna, has worked with Kevin, learning his recipes and the nuances of commercial equipment. Valentyna is from Ukraine and has an extensive background in confection, baking, chocolate, ganache, desserts and aesthetics. She is a flavor confection connoisseur, constantly creating new flavor profiles that wow our customers. This week, she made caramel and hazelnut cashew bites that are amazing! I ate six — not sure that was good for business, but it certainly made me happy.

BP: Can you describe the business model?
RV: Provide exquisite chocolates and gelato, be the employer of choice, serve downtown by helping to keep it vibrant, and support local business.

BP: What has your learning curve been like?
RV: Michael has a background in science, while my experience is in business. Currently, I’m taking an intensive chocolate course in Vancouver so I can support staff and have fun with chocolate! I’m taking another chocolate course in Chicago.
MH: Applying knowledge and understanding during this initial training phase, especially for a commercial production, is critical. We don’t have the liberty to come in and make mistakes. We’re enjoying this intensive learning process.

BP: Will you keep both of your current locations (handcrafting/production on the Guide and retail store in downtown Bellingham, on Commercial Street, across from Mount Baker Theatre)?
RV: Chocolate Necessities began at the Guide Meridian location. That handcrafting facility is the heart of the business, and we have no plans to leave any time soon. For our Commercial Street location, which opened in 2018, we just signed a long lease, and we are working with a local architect to create a fun, lively outdoor area — coming soon!

BP: Will you be hiring in the coming year? What kind of employees are you looking for?
RV: Yes! We will hire for our busy season — Christmas, Valentine’s Day and Easter. We are looking for good humans who love people, chocolate and good coffee and who are proud to be part of our downtown Bellingham community.

BP: What kind of event and marketing presence are you planning?
RV: We plan to offer wine and chocolate wafer pairings as well as charcuterie plates with wine and chocolate before and after Mount Baker Theatre shows. Chocolate wafer tastings are in the works. We have a myriad of chocolate chips — Ecuadorian, Colombian, Arriba Martini, Dulcey blond, ruby chocolate — all for melting, baking or snacking. In October, our gelato supplier will teach our staff how to elevate one of our favorite desserts to be an authentic Italian gelato. After the Christmas rush, we’ll host tours at the factory. And Valentyna is working on a monthly chocolate truffle feature.

BP: How do you want to maintain current clients?
RV: We’ll upgrade the website and online inventory for intuitive experiences, and we’ll be active on social media. At our downtown location, we plan to offer outdoor seating, change store hours to serve morning coffees, partner with local brewers and bakers, and host special tastings/hours to coincide with Mount Baker Theatre and downtown events. We want to partner with local businesses to offer our chocolate for their baking, desserts and custom gelato flavors.

BP: How are you thinking about planned growth?
RV: We want customer feedback. We plan to offer the same experience for current customers and share that with new customers: locally roasted espresso, handmade gelato, Italian sodas, affogatos (espresso, gelato, liqueur), traditional European hand-rolled truffles, Dutch-process cocoa powder, cocoa nibs, housemade trail mix, local and regional beers, excellent wine varieties, and the largest selection of curated chocolates in North America. ■

Money come, money go

Lorraine Wilde
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Money come, money go

A look at personal wealth and growth in Whatcom County

According to a recent study by SmartAsset Advisors LLC, Whatcom County is the sixth wealthiest county in Washington state based on investment income, property values and median income — just behind King, San Juan, Snohomish, Island and Kitsap counties.

Those values have changed over the past decade or more and are affected by population growth and shifting community demographics in the county and by out-of-town and local investment. To gain a better understanding of how personal wealth in Whatcom County has changed over time and what factors could affect it down the road, we looked at economic trends and spoke with local financial advisers and real estate brokers.

Income by the numbers
Personal income and its resultant wealth includes earned income, investment income and government payments such as Social Security and veterans’ benefits. No matter whose numbers you look at, it’s clear that income has not kept up with the pace of inflation or the cost of living in Whatcom County over the past several decades.

Numbers vary depending on the source and how you look at the data (median versus average, for example). Investment income includes income obtained from pension funds and from owning a home. Per capita personal income equals total personal income divided by the resident population. Here are a few values for comparison.

According to U.S. Census Bureau data, Whatcom County’s 2019 median household income (the one right in the middle, with equal numbers of households making more and less) was $65,712, less than the median for Washington state ($78,687) and the United States as a whole ($69,372). This trend is also reflected in hourly wages. In 2019, 12.9% of Whatcom County’s resident population were living below the official poverty line, more than the state average (9.8%) and similar to the national average (12.3%), according to data published by the Washington State Employment Security Department.

According to the Bureau of Economic Analysis, average per capita personal income ($59,510) is lower in Whatcom County than the state average ($67,126) but higher than the U.S. average ($52,787). Whatcom County ranked 14th among the 39 counties in the state for per capita income, according to the U.S. Census Bureau.

Although the Washington State Employment Security Department reports slightly different numbers, the trends are similar. In 2020, Whatcom County’s average annual wage was $53,325, well below the statewide annual average wage of $73,504 and above the national average wage of $50,834.

What is influencing personal wealth in Whatcom County?
Of course, changes in income values mean little without considering changes in the cost of living — which includes the cost of goods and services, real estate values and rental rates — over the same period. An increase in income isn’t felt at home when the costs of rent, food, gas and utilities have all gone up at the same time.

The pandemic, supply chain issues and inflation have all contributed to a higher cost of living in Whatcom County and across the nation. So, although wages also have gone up — Whatcom County’s median income had grown to $70,011 in 2021, according to a 2023 report from The Bellingham Herald — when asked, few county residents are likely to say they’ve been able to feel their personal wealth increase over that time.

Your outlook on whether your personal wealth has grown depends a lot on whether you’ve had extra money available to invest. A large portion of Whatcom County’s personal wealth is tied to the rate at which real estate values have increased over the past several decades.
“Everyone can see that their house has gone up in value, and the last five years we’ve had ridiculous appreciation due to the pandemic,” said Kathy Stauffer, managing real estate broker at Windermere Real Estate, “but long-term, owning versus renting is a better idea, even with higher mortgage interest rates.”

A lot of wealth also has been moving to Whatcom County from elsewhere, said Bryant Engebretson, fiduciary investment adviser and managing principal of Tradewinds Capital Management.

“I’m a capital markets guy — the stock market and financial planning — but I hear from my clients and neighbors,” Engebretson said. “There are a lot of wealthy retired people moving to Whatcom County that have created that wealth elsewhere.”

Financial adviser Paul Twedt, of Northwestern Mutual, agrees.

“From what I hear, the wealth that is moving into town has come from the sale of real estate in places like California and Seattle, and with their equity they are able to buy a nice place up here without a mortgage payment,” Twedt said. “Most of the clients we work with are self-employed professionals from all different kinds of industries that have some control over their compensation.”

Many people coming to Whatcom County are doing so with cash to spend from other places. This in turn has affected businesses and real estate values here.

“They want to go to nice restaurants, and there is some trickle down,” Engebretson said.
Other businesses also are profiting, Twedt said. Bellingham Golf and Country Club, for example, has full membership and a long wait list, which was not the case a decade ago.
“People are wanting to spend more,” Twedt said. “Our clients are focused on getting and keeping good workers on board.”

But the current environment also has made it harder for service people to live near where they work in Whatcom County.

“A lot of people who have wanted to buy homes have been forced to pay up for that privilege,” Engebretson said. “One disturbing trend I’ve observed is how much Wall Street-type money has moved into the residential housing market, driving up the prices and forcing those that really wanted to buy here to pay over market value. That’s great if you’re selling, but it also forced people who were outbid to become renters. It’s disturbing that we’ve allowed this to happen to the middle class, because home ownership has traditionally been a bedrock of the American dream.”

Those with fewer means, including young families trying to establish themselves here, have been priced out of the local real estate and rental markets by older Americans with accumulated wealth.

While those with enough income to own their home (who bought at the right time) have increased their personal wealth significantly, that benefit has impacted those who cannot afford to buy and so must rent. For renters, rising real estate values have significantly increased the cost of living in Whatcom County and therefore have decreased the portion of their incomes available for savings and investments.

The county’s median home value in 2019 was $569,207 — the fourth-highest median home value in the state, according to census data reported in The Bellingham Herald. And according to the U.S. Department of Housing and Urban Development, the fair market rent — the cost to rent a moderately priced home or apartment, adjusted for the local market — in Whatcom County is $1,355 this year and $1,571 in 2024 for a two-bedroom home.
If you live in Whatcom County, it’s probably been obvious that the population has been growing steadily. Perhaps you’ve noticed increased traffic on our roads and Interstate 5 or longer waits for services across a range of sectors, including restaurants, home maintenance, medicine and mental health. According to U.S. Census data, the population of Whatcom County in 2022 was estimated at 230,677, up 14.7% from 2010.

The demographics of Whatcom County’s population also have continued to shift. While the county’s age distribution has remained relatively similar for many age groups in the past decade, overall, our population is aging. While most age groups saw growth in total numbers from 2010 to 2021, the 65-plus age group was the only one to have increased its proportion of the total population — from 13.3% in 2010 to 18.3% in 2021, according to census data published at usafacts.org. This is mostly due to the huge jump in population among older people, with the segment growing by 56% from 2010 to 41,938 in 2021.

Those seniors also have felt the crunch of increasing living costs. A study published in 2022 by advocacy group The Senior Citizens League showed that even with 2023’s historic Social Security cost of living adjustment of 8.7%, rising inflation and changes in the cost of food, medication and other common goods and services used by retirees means they won’t feel the increase in their wallets due to a loss in buying power. According to the study, increases in the costs of typical expenses for seniors have been more than double the Social Security increases since 2000. The cost-of-living adjustment for 2024 was just announced as 3.2%, less than half the increase from the previous year.

Citizens and business owners alike are finding it more difficult to find and move to affordable locations or to facilitate needed expansions.

“People who want to move from their first home to their second can’t,” Engebretson said. Both prices and interest rates are high, so people are opting to stay with their lower rates.
Stauffer agrees. “Nobody wants to sell if their mortgage is 3%, so that is going to dampen supply,” she said. “The number of people in Whatcom County with full equity in their homes is over 50%, which is much higher than other parts of the state and country.”

In the end, people are hanging on to their homes longer.

“The average person stays in a home for seven years, but that’s going to become closer to 10 years due to the rising interest rates,” Stauffer said. “So you have to get creative, and we’re working hard to get prices to be more appealing. A generation of homeowners thinks 3% is a normal mortgage rate. But that’s not normal. The average over a 50-year history is actually 7%.”

Twedt has observed higher interest rates affecting real estate investors and developers.
“More projects are being said ‘no’ to because it’s harder to make the math pencil out,” he said. “Housing is not keeping up with our population. So rent rates go up, housing prices go up; the cost to get in is a higher barrier to entry. Their monthly payments aren’t going to allow them to buy the home they want or need. Those coming from more expensive places like California who have cash and don’t need to borrow are getting the benefit of the recent drop in real estate value caused by higher lending rates.”

Whatcom County business owners are feeling the demand of this increasing population. Whatcom County’s rental vacancy rates have hovered around 2% for the past decade and were second only to Skagit County in 2022. So while property owners and managers are able to earn top rents with little loss, residential and commercial rent is eating up larger and larger portions of individual incomes.

That has long-term impacts on generational wealth down the line as well. The current real estate market has caused some to rethink their future retirement plans.
“Some are choosing to invest in a second home or condo in a less expensive location with a more favorable tax structure and a political environment that more closely matches their own, such as Texas, Idaho or Mexico,” Twedt said.

Engebretson has similar observations.

“They plan to sell their largest asset, which for a lot of people is their home in Whatcom County, and live off the liquidated equity,” Engebretson said. “Moving to an area with lower real estate costs can completely change your economic situation for the better. Overall, everybody has a different economic reality based on their actions up to that point, which then determines their choices beyond that point.”

What continues to draw people to Whatcom County?
“There is a lot of literature out there about the type of communities folks like to retire to,” Engebretson said. “Cultural activities that colleges bring have a real influence. It’s all relative based on where you’re moving from.”

Stauffer agrees.

“When you compare us to other places, our proximity to the I-5 corridor and Vancouver is definitely a draw,” she said. “People love the Pacific Northwest, but they haven’t appreciated what’s happened to Seattle, so they are coming here instead.”

Both Stauffer and Twedt noted that sprawl, crowding, homelessness, drugs and crime are driving those with the means to escape further from our biggest cities.

“We have a core group of people, perhaps a third of the market, that know, love and trust Whatcom County and want to be here,” Stauffer said. “They might start in the Columbia neighborhood and then move to acreage as their family grows. Later they might downsize to a condo. Another 30% are coming out of King County, Eastern Washington or other parts of Washington, and another 30% are coming from out of the area — from Texas, California and the East Coast.”

Engebretson believes we’ll see some correction and shift in the current financial and real estate situation as baby boomers pass their wealth to younger generations.

“The millennial generation doesn’t seem to be as interested in material wealth as their parents and grandparents, but partly because they had to adjust their dream because they are realizing that they had desires that they could never achieve,” he said. “You have to reformat your thinking. They are realizing that they are just as happy taking a hike versus owning Harleys or other material things. That is causing them to move to cities, where the opportunities and quality of life are.”

It’s better for the community when a broader range of people — not just the wealthy — can afford to live here, Stauffer said.

“Hopefully, Whatcom County is being responsible to try to make this a nice place to live and work, but there is some price point where our economy doesn’t support the cost of our houses,” she said. “I admire employers that make a point to pay their service workers a rate that enables them to live here. If they can’t live here, then you don’t have an amenity base of people to take care of your services. It’s a delicate balance for the city and county to manage long-term.”

While the factors that influence personal wealth in Whatcom County are certainly complex, making the future hard to predict, Whatcom County continues to rank among the top counties in the state for wealth and quality of life. We’ll need to work together to ensure that those in lower income brackets can continue to afford to live where they work. ■

Border is no obstacle when synergy exists

Cheryl Stritzel McCarthy
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Border is no obstacle when synergy exists

Cabinetmakers Sunrise Kitchens of Surrey, British Columbia, and Hertco Kitchens of Ferndale offer one example of a Canadian business expanding into Whatcom County. Sunrise acquired Hertco in June 2023, and the Ferndale spot is now the second location for Sunrise.

“The two companies complement each other, with Sunrise’s focus on multifamily kitchen cabinet projects and Hertco on the dealer network. Together, they can be leaders in the multifamily and residential markets in both countries.”

The answers below are edited from conversations with Navjot Bhogal, Hertco Kitchens CEO, and Paul Bhogal, president and CEO of Sunrise.

  1. Sunrise acquired Hertco to expand its dealer network and tap the U.S. market. Comment?
  2. This strategic move expands Sunrise Kitchens’ expertise into the western United States and establishes a strong presence through a network of dealers targeting large-scale projects. The addition of Hertco aligns with our growth objectives and allows us to broaden our reach to serve a wider customer base. Ferndale is only a short drive from Sunrise, which allows the teams to collaborate on expanding both businesses.
  3. Why is this a good match?
  4. Sunrise and Hertco share the same passion for the industry. Both have more than 40 years in business, are family owned and operated, have aligned corporate values, and believe in the significance of creating beautiful kitchens. The two companies complement each other, with Sunrise’s focus on multifamily kitchen cabinet projects and Hertco on the dealer network. Together, they can be leaders in the multifamily and residential markets in both countries. The companies are honored to continue the journey and success built by both families and are excited for future opportunities.
  5. Can you provide a sense of the company’s size and reach?
  6. Sunrise and Hertco are leaders in the market serving residential and multifamily housing. Sunrise is the largest producer of kitchen cabinetry in western Canada for multifamily housing, manufacturing over 5,000 kitchens per year. Hertco supplies kitchen cabinets through more than 200 dealers within the western United States, Hawaii and Alaska, as well as western Canada.

The Surrey location employs 130. The Ferndale location, with 60,000 square feet, employs 35 in manufacturing only.

Sunrise recently added 35,000 square feet to the existing facility to create a total of 80,000 square feet in Surrey. The expansion includes a significant investment in automated equipment, allowing us to increase our production capacity to better serve the North American market with shorter lead times, high-quality products and overall greater value to our customers.

  1. What’s ahead?
  2. Our goal is to continue synergy between Sunrise and Hertco by broadening our product offering to increase our reach in both markets and strengthen our relationships with dealers by providing more flexibility for their customers. We plan to continue to invest in our local communities and provide high-level labor. By offering training and employment to people in our area, we can help build a stronger workforce and contribute to the local economy. A longer-term goal is to expand our dealer network to more than 500 dealers in several new regions with streamlined processes, automated production and improved customer service. By focusing on these areas, we plan to continue to operate successful and sustainable businesses that are positioned for growth and modernization.

Let’s do business, eh?

Cheryl Stritzel McCarthy
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Let’s do business, eh?

Canadian interest in Whatcom is growing

Canadian businesses like Whatcom County. Most businesses here already have some connection to our northern neighbor, said John Michener, economic development project manager at Port of Bellingham.

“We saw interest pre-pandemic and throughout the pandemic,” Michener said. “We’re getting more inquiries now. These decisions, these projects, take a long time — five or six years — as they study conditions. We’re definitely seeing more interest today.”

In September 2020, Marcon Metalfab of Delta, British Columbia, which makes parts for bridges and other major transportation projects, purchased property in Ferndale for its second manufacturing location. In October 2022, Alliance Freeze Dry Group, a Canadian pet food manufacturer with a facility in Langley, British Columbia, broke ground for a 220,000-square-foot manufacturing facility on nearly 10 acres in Lynden. The facility, called Canature Kitchen Lynden, is slated to be completed in 2024. In June 2023, Sunrise Kitchens of Surrey, British Columbia, which makes kitchen cabinets, expanded into Whatcom County with its purchase of Hertco Kitchens, a Ferndale cabinetmaker. (Hertco itself was founded in 1981 in Langley, British Columbia, and expanded in Delta. It moved to the U.S. in 1995, to Custer, and to Ferndale two years later.) In September 2023, Vicinity Motor Corp., an electric vehicle manufacturer based in Aldergrove, British Columbia, opened a 100,000-square-foot electric truck assembly facility on Labounty Drive in Ferndale.

More Canadian connections are in the works. “I talked to three companies today that are thinking of expanding here,” Michener said.

His job supports all Whatcom business, not just the port. With the goal of helping Canadian businesses locate here, in 2014 the port joined the 6,000-member Surrey Board of Trade. Michener is the only American on its board of directors.

“Surrey is growing like nobody’s business,” Michener said. He expects Surrey to be larger than Vancouver by 2041. At least one Canadian online media source predicts that will happen years earlier.

“With agricultural land reserved, they’re running out of space for industrial development,” Michener said. “We’re going to see a large push from Canadians who will look this way to expand. Property is getting expensive there. It’s cheaper here.”

At a business park in south Surrey called Campbell Heights West, land is going for 7 million Canadian dollars ($5.15 million) per acre, Michener said.

“Campbell Heights is shovel-ready. We don’t have quite that level of preparation (here). It’s $500,000 to $600,000 per acre for the better-prepared parcels here. We don’t have a big, planned development like Campbell Heights. Here, it’s more one-off,” Michener said, adding that Whatcom’s smaller business parks are successful. “But nothing here is the scale of Campbell Heights. We don’t have the population base they have.”

Whatcom County’s population is roughly 229,000, according to a 2021 census. The city of Surrey in 2021 was 568,000. Nearly 1,000 people move to Surrey every month, according to a Surrey government website.

Plus, lower mainland British Columbia in general is growing, Michener said.

“As businesses grow in Canada, and markets are good, they’ll want to expand,” he said. “They’ll look south. If a company is growing and a lot of their product is exported into the U.S., why not manufacture here, to save issues with duties and tariffs?”

Jim Pettinger is the recently retired owner of UCanTrade, which provides office, warehouse, distribution and return/repair services for Canadian companies. A Canadian immigrant who became a U.S. citizen, Pettinger founded the company in 1984 and sold it in 2019. He had about 100 Canadian clients in the latter years.

“Whatcom is unique,” Pettinger said. “The border is more dotted line than barrier.”

Americans, even this close to the border, don’t know much about Canada, Pettinger said. “They tend to wait for Canadians to come this way. Initiative and commerce are mostly one way.”

Mark Lervik, former manager of Copac on Grandview Road in Ferndale, concurred that cross-border business was mostly Canadians reaching out to Copac. In the mid-1990s, Copac, which was initially the timber company Coast Pacific Trading, purchased a share in Grandview Industrial Park. It became Copac Properties LLC and today is Copac Self-Storage.

“We started building buildings,” Lervik said. “Mostly Canadians contacted us about renting. We didn’t pursue Canada. They inquired about opening a U.S. facility or expanding.”

Pettinger, whose business rented space at Copac, sees two major categories of Canadian businesses in Whatcom: Canadian-owned businesses and Whatcom businesses that provide services for Canadians.

“Canadian businesses in Whatcom seem to be in pockets, or segments,” Pettinger said. “They don’t talk much to each other.”

The range includes retail, tourism, agriculture, transportation, warehousing, real estate (residential and commercial), legal and accounting services, religion, medical and more, Pettinger said.

How can Whatcom County attract more Canadian business? Offer prepared space, Michener said.

“If a Canadian wants to be in a business park here, the more ready it is, the better,” he said. “Certainty is what they’re looking for. No surprises. The more done ahead of time, the easier it will happen. The price of property, permitting … they want to know how, when, cost. That’s universal for business. The more certain your process is, the more companies you will attract.”

Numbers on how many Canadian companies are here do not exist. That’s partly because Whatcom’s business ties to Canada are many and varied. They include companies with beginnings in Canada, companies bought by Canadians, Canadian companies with a U.S. branch that grew to stand alone, companies that sell to Canada, and local folks employed by Canadian companies who then establish similar businesses of their own, Michener said.

“Some Canadians got green cards and started here because it suited their market,” Michener said. “The majority of businesses in Whatcom County have some tie to Canada. There’s not a number you can put on it.”

An example of one such tie is Hempler Foods Group, started by a German immigrant to Bellingham in 1934 when he bought a little meat-and-sausage company here. The business, operated ever since by the Hempler family, has been owned since 2006 by Premium Brands Holdings Corporation, a publicly held Canadian food manufacturing and distribution outfit.

Michener remembers meeting the owner of Marcon Metalfab in 2014 or 2015 and staying in touch as conditions changed over the years. The owner saw the U.S. federal government gearing up to invest in infrastructure that had to be manufactured in the United States, so expanding into close-by Whatcom made sense. At the same time, Marcon was running out of room in Delta.

“I stayed in touch,” Michener said. “It’s building relationships. It sounds trite, but it’s true.”

As the port’s economic development project manager, Michener is not waiting for Canadians to come to us.

“The more we grow our base, the more we improve our quality of life,” he said. “The population of Whatcom County is growing. Let’s be intentional and bring the growth we know will help us.”

The candidates – the questions – the responses

WBA
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The candidates – the questions – the responses

Business Pulse asked all the candidates for Whatcom County executive, Whatcom County Council and Bellingham mayor to answer the following questions so you can better understand their positions on some of the key issues facing your business and Whatcom County and Bellingham in general.

We hope this will be a helpful resource as you make your decision when voting this fall. Be sure to register to vote, if you have not already, and return your ballot by Election Day, Nov. 7, 2023.

Download the pdf here.

SEP | OCT 2023

WBA
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SEP | OCT 2023

Elevated and plated

Tara Gilligan Reimer
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Elevated and plated

At the Plantage commercial kitchen, chef and owner Chris Wilson creates high-end, plant-based cuisine that Whatcom families enjoy in their own homes

Midway through a brisk workday at her real estate office, Julie James breaks for lunch, leans over the steaming bowl in front of her and inhales. The broth has been infused with charred onions, garlic and aromatics – warming spices of clove, cardamon and cinnamon sticks. Vegetables cut on the bias – bok choy, celery, sugar peas, carrots and broccolini – have been steamed just enough to deliver a satisfying snap. Plumped with a trace of scallion oil, a nest of noodles completes the dish.

The midday fare is a colorful and fragrant pho, traditional Vietnamese soup. The entrée, composed of all organic and plant-based and mostly local ingredients, was created at Plantage.

Complexly flavored, textured and layered
Every week, owner and chef Chris Wilson plans, shops, prepares and cooks hundreds of elevated, plant-based meals in her state-of-the-art commercial kitchen in Bellingham. And clients from throughout Whatcom County come to Plantage, happy to pick up their nutritious lunches and delicious dinners to take to work and enjoy in their own homes.

The pho is emblematic of the array of entrees available at Plantage (rhymes, of course, with “cabbage”). Wilson, a seasoned chef of 18 years, said, “You start with a giant pot of water, and you end up with something really satisfying.” Like all her creations, the pho is complexly flavored, satisfyingly textured and skillfully layered, from the rich broth to the crunch of the vegetables to the slurp of the noodles. “You can eat so much of it,” Wilson pointed out. “Yet, the soup is chock-full of nutrition, and you feel full and fueled.”

Healthful fullness is what customer James and her husband, Mark Frye, and their 8-year-old anticipate. Weekly, they pick up a meticulously organized basketful of prepared meals, accompanied by easy-to-follow, step-by-step instructions.“Becoming a client made sense,” James said. “I penciled out the costs of meal planning, shopping and cooking myself, and I was honest that I avoided these tasks. Grabbing something on the go that wasn’t nutritious was replaced by Plantage.”

James added, “Chef Chris is amazing. Her meals are delicious. And we are healthier and happier.”

How to combine healthful entrees with satiety and create more time for Whatcom families? This is the equation that Wilson – who grew up on the western plains of Oklahoma, went to culinary school in Houston and earned a degree in mathematics – wanted to answer when she opened Plantage in January 2023.

A business model inspired by flavor
As a business owner, cyclist and skier, wife and mom, Wilson thinks a lot about how Whatcom folk eat. “So many people love the natural beauty here,” she said. “I wanted to fuel families with delicious meals. And I also wanted families to have more quality time – so instead of planning, shopping and cooking, they could be paddleboarding on Padden or enjoying their photography side gig.”

Back in her chef days in Houston, Wilson gradually converted from thinking about food as entertainment to understanding food as sustenance: “I went from creating foams, froths and foie gras to making fresh nut milks, sprouting seeds and fermenting vegetables.”
With a focus on flavorful sustenance, Wilson easily serves patrons who ask these questions: “How is your tofu fortified? In your lasagna, where do the tomatoes come from?”

Before COVID-19, the chef considered opening a café. But with restaurants closing during the pandemic, and with the awareness that her own family valued time together at home versus eating out, Wilson found her business model. “I wanted to create elevated entrees that clients pick up once a week, then enjoy in their homes.”

She also wanted the food to be nutrient-dense and elevated. “There is a gap between restaurant food and food that nourishes your body,” Wilson said. “There is also a gap in vegan food. Largely presented as bowls and wraps, vegan dishes often lack elevation, aren’t plated with sauces or garnishes and do not satisfy.”

She summed up: “This is food you’d expect in a restaurant that also nourishes you.”

Pick up weekly, be nourished daily
Plantage is tucked into the industrial-residential mix of Bellingham’s Sunnyland neighborhood. Here, people can get a new heat pump, wander into a brewery or build raised garden beds in front of their homes. Wilson liked the vibe (delightfully funky) and location (intentionally central, adjacent to Interstate 5) for her customers’ weekly visits from Blaine, Fairhaven and even Seattle.

Clients decide on the number of weekly entrees that works for their household: a “small” package of six portions, a “standard” package of 12 portions or a “large” package of 18 portions. Every dish is photographed and presented online. Customers choose from eight menu features each week, including at least three gluten-free options. Chef’s pick means you can follow Wilson’s choices, always popular, as a convenient way to enjoy diverse meals without spending time to order. Sign up once, pick up weekly, be nourished daily: That is the value in an elegant (plant-based) nutshell.

At her workplace, which she “never doesn’t want to come to,” Wilson is deft at creating entrees such as polenta with ratatouille: “My favorite dishes are hearty and rich peasant food, like this true Italian dish.” For this entree’s base, Wilson makes her own cashew milk, a strategic surprise added to the polenta so the grits don’t seize up but remain velvety. Eggplant, zucchini, yellow squash, tomatoes and dried and fresh herbs make the ratatouille. Finally, the heirloom white Cicerchia beans from Rancho Gordo, with a little garlic herb oil, “cook up like little teeth.”

“My entrees are not trays of food from the freezer section that you heat and serve,” the chef said. “Instead, you spoon into satisfying layers: creamy polenta, chunky ragu and delicate white beans, finished with a sprinkling of cashew-based vegan parmesan.”

A base to build from
Though Wilson opened Plantage this year, she drew on three and a half years of prior success working as a personal chef for Whatcom families, creating a solid client base. Her previous business model was rewarding but also time intensive. She shopped for one family’s ingredients, went to the client’s home to prep and cook in the kitchen, then stocked the pantry and refrigerator with a week’s work of entrees.

Wilson added another chef, Abigail Bruno, who helped expand the personal chef business. But the max the duo could serve was four homes a day, with lots of driving time. Wilson wanted to decrease her business carbon footprint and variance (“we were dependent on clients’ kitchens”) and increase service, adding more clients as well as menu variety.

The chef began searching for a location to house a commercial kitchen that would flip her service model. Instead of going into clients’ kitchens, clients would come to hers. When Plantage opened this year, 20 families from Wilson’s personal chef business stayed with her and, importantly, Abigail did, too.

Mission for transparency
On Grant Street in Bellingham’s Sunnyland neighborhood, the cheerful Plantage storefront, with a rolling metal service garage door and a fir front door, opens into a commercial kitchen. An impressive row of stainless steel appliances is framed by a wall of clean, white subway tile and a pressed fir staircase that leads to an open loft used for storage and office space.

Whatcom has been described as a supportive county in which to start a small business. Still, changing a business model and investing hundreds of thousands of dollars in the right commercial equipment were critical steps.

A combination oven anchors the lineup of high-end, culinary machines. “The combi (shorthand for combination) is like a car,” Wilson said, because this single unit operates as a smoker, steamer and convection oven. Recipe times and temperatures can be programmed in, while humidity and fan speed can be adjusted. There’s also a huge gas range, a separate heating source for stockpots of simmering broths and beans, a blast chiller and a walk-in refrigerator.

On one Monday, an enormous prep sink is full of organic, green bunches of broccoli, 60 heads at least. Including the broccoli, 600 hundred pounds of vegetables will be prepped for the week’s 330 entrees.

“Once prepped and cooked,” Wilson said, “everything our clients pick up must stay fresh for seven days.”

Kitting out the space to meet permitting standards was also an investment of time. “COVID hit the city and permitting was short-staffed,” Wilson said. “But we were patient, and it all worked out.”

Pointing to the industrial-sized sanitize, rinse and wash station mandated by the county health department, Wilson reported these county officials were “phenomenal” in their communication and follow-up, even alerting her when more fees than necessary were paid. “At the department, Tom was so present,” Wilson said. “He welcomed my questions and was someone I could turn to.”

At most restaurants and markets, the kitchens are tucked away, unseen by customers. At Plantage, the kitchen is on full display. “There are a lot of curtains in this industry,” Wilson said. “We want to be transparent.”

So, when clients pick up their entrees, they see what chef Chris wants them to see: everything. A highly organized kitchen space that is daily scoured and regularly hard-cleaned. Two chefs who easily work together. And importantly, all the organic ingredients largely sourced from the Pacific Northwest – from the red cabbage to the flaxseed – are front and center.

Most Plantage ingredients come from the same wholesaler that sells to the Bellingham Community Food Co-op. A case of locally grown, organic onions for Wilson costs $50. As comparison, at the local chef store, a case – not necessarily organic or local – runs $18. “I won’t cut corners,” Wilson said. “My customers see what they’re getting.”

Wilson also won’t compromise on how her entrees are bundled. “Compostable packaging is so expensive,” Wilson explained. But she’s committed to being environmentally conscientious.

Even the dishwasher follows the throughline: no sulfates are used. Instead, Wilson invested a lot more money into an appliance that recirculates water from the first cycle, traps the steam, and turns the condensation back to water for a high-temperature, chemical-free, environmentally friendly rinse.

One Whatcom County expert commended Wilson’s thoughtful build of her business. “Plantage is a great illustration of the startup philosophy called minimum viable form,” explained CJ Seitz, director of Western Washington University’s Small Business Development Center.

“The startup gets in front of the customer as quickly as possible, with the absolute minimum of effort and investment,” Seitz said, describing Wilson’s initial personal chef business. “Once in the market, the startup will learn much more about the needs, pains and gaps that present themselves.”

Seitz continued, describing Wilson’s current business in a commercial kitchen: “This wise entrepreneur discovered a need that presented a more scalable business opportunity, and she pivoted to this new alternative – a prescription for small business success.”

Love for customers
“Kitchens are like little families,” Wilson said with a smile. “They are lively and fun places where you have meaningful conversations.”

Those exchanges happen daily between the chefs. Wilson is quick to point out, “I could not be doing what I’m doing, on this scale, without Abigail.” She added, “I hired Abigail not to fill a position, but because she is as passionate as I am about our mission.”

Wilson wants to intentionally grow subscribers, never sacrificing the thoughtfulness for entrees that change with the seasons, from the spring pea risotto to the autumn-favorite Swedish not-meatballs with classic cream sauce.

What does Wilson enjoy most? “I love knowing our clients,” she said. “We know whose child won’t eat mushrooms, who enjoys more cilantro, and the family who loves the cauli-mac bake with tempeh ‘bacon.’”

After mealtimes, and sometimes even during, the chef regularly receives texts from happy customers: “LOVED the enchiladas and the coconut bowl!! Thank you for the nurturing and nutritious menu this week!” And: “I enjoyed the ramen on the seventh day, and the vegetables tasted like they had just been sliced. How do you do that?”

Today, in the kitchen, Wilson and Abigail prepare celery, onion, peppers, carrots and mushrooms for moo shu vegetables. The cooks are scratch-making hand-rolled Mandarin-style pancakes that will enfold the crunchy goodness. Once ingredients have been transformed into entrees and labeled, the two pause to observe their work, laid out on the long pickup counter.

Wilson mused that 90% of her clientele will be enjoying the same meal at some point this week. “All of these people are taking these entrees – and eating healthfully – in different homes, but together, too.”

At Plantage, families nourished by time together over wholesome food is a happy and delicious mission. ■

3DX Industries: At the forefront of innovation

Lorraine Wilde
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3DX Industries: At the forefront of innovation

Ferndale company has invested big in 3D metal printing

Most of us don’t give much thought to where all the little metal parts in our lives are manufactured, or even how they’re made. Many are made right here in the United States, including in Whatcom County. From medical devices, marine and aircraft parts, food service and military machinery, metal parts are the foundation of most every machine or process in our homes, businesses and government.

“Our world and economy wouldn’t function without them,” said Roger Janssen, president of 3DX Industries, the Ferndale-based precision machine shop and manufacturer of three-dimensional metal printed and composite printed products.

Their process also includes in-house design support, rapid prototyping, production and assembly services.

“3D metal printing is a newer technology,” Janssen said. “It’s exciting, and there’s a clear need for it to help with our national industrial base. We’re getting support for it from this administration, and it’s a job that a lot of young people are interested in.”

According to Rob Errera of Toner Buzz, the global 3D printing market reached a value of $13.8 billion in 2021, with $5.72 billion of that in North America.

“Various analysts predict that the 3D printing industry will grow at staggering speeds — between 18% and 27% per year,” Errera posted on the Toner Buzz website in 2022.

From humble beginnings
Janssen, who considers himself a motorcycle nut, works on the pit crew with a group that’s trying to break the motorcycle land speed record.

“That’s what got me into machining, actually,” Janssen said. “I started the machine shop in Snohomish County in 1984, Key Manufacturing, and moved it here to Ferndale right after 9/11. A lot of our work was originally for Boeing, and we were right there on Mukilteo Speedway next to a lot of little machine shops. After 9/11, those purchase orders dried up, and so we decided to diversify.”

Janssen chose to relocate to Ferndale because of its convenient proximity to Interstate 5 and Canada.

“I love Whatcom County, and about 10 years ago I merged my company with 3DX, which is a publicly traded entity, and that enabled us to expand and buy the metal printers,” he said.

Additive versus subtractive manufacturing and the benefits of 3D printing
Metal manufacturing can be additive or subtractive, but many parts use both types of machining to achieve a precision finished product.

Additive manufacturing is what you think of as classic 3D printing, with each new layer built on the last. 3DX currently prints using a range of 3D printers capable of printing in picoliter drops of stainless steel or nickel powder.

Subtractive manufacturing is what you might imagine when you think of typical metal machining. A wide variety of tools and processes are used to remove pieces of metal systematically until the final part is all that’s left.

“The different metals have different hardnesses, and when the hardness changes, all your cutting parameters change,” Janssen said. “You might need to use different tools or slow the tool down or speed it up. It makes machining extremely important, and it’s still a growing field, a very skilled trade.”

Janssen says most don’t know how many steps can go into making a single part, and many think of 3D printing as just the push of a button. In fact, each part goes through a variety of steps and processes.

The process almost always starts with a precision design made in a computer program. The design is then plotted in three-dimensional space, generating thousands of X, Y and Z coordinates (G-code). Those coordinates are then loaded into the computer brain of the metal printer so the design can be printed and tested over and over in order to improve and perfect it.

“In binder jet printing, a fine metal powder is laid down very accurately out of the printer head,” Janssen said. “We add a binding agent that sort of glues the metal particles together when it’s cured at a high temperature over several hours. The binding agent burns off, and all those particles become one.”

Before they have cured, any defective parts can be pulverized and reused with no waste generated.

3DX doesn’t yet use the other two main types of 3D metal printing — selective laser sintering and electron beam melting — because they are much more involved and expensive and require more troubleshooting and maintenance.

Most 3D metal printed parts must go through some additional subtractive machining steps after they are printed.

“You can’t 3D metal print super accurately yet,” Janssen said. “Some parts need to be perfectly flat. Others will need holes drilled and tapped. Many threads are super precision, so we can make adjustments that are less than the thickness of a hair to get them exactly right.”

Additive manufacturing has a number of advantages over subtractive alone.

“The beauty of the additive process is that you only use what you need, so there is less waste,” Janssen said. “3D metal printing allows you to make complex parts without additional costs. But on the subtractive side, if you need to machine that complex part, it can be very costly, because they need tooling, meaning you might need to make a new vice or tool in order to hold or orient a part to withstand the force of the subtractive process. That’s more labor intensive. So for printed parts, tooling costs are almost nil.”

3D printing also allows you to make complex parts more affordably than with subtractive methods.

“I’ve seen some crazy rocket nozzle designs at trade shows with cooling channels all over the place so they can run it super hot to burn your fuel hot and fast, and that lowers your payload; it’s lighter and runs more efficiently,” Janssen said. “That part would be so costly and difficult to produce using only subtractive methods.”

Some 3D printed parts can also be made with properties that result in a longer lifetime compared to their subtractive counterparts.

Giving a tour of the facility, Janssen showed an incredible range of manufactured parts made to stringent specifications — medical device prototypes used in knee and hip replacements, parts that help make clean drinking water, saxophone mouthpieces, turbine rotors to help make electricity, nonstructural airplane parts, parts for heavy-lift drones that can deliver packages, parts for deep oil exploration and parts for steaming in industrial coffee machines. 3DX is collaborating with several businesses in Whatcom County that have been profiled by Business Pulse, including Corvus Energy, Vicinity Motor Corp. and Samson Rope.

Although robots are gradually being added to the process, Janssen says it will be a long while before the human worker is replaced.

“Without the guy that has the knowledge, the robot can only do what you tell it to do,” he said. “You can go away and come back and find that the robot has made a whole pile of stuff that you’ll have to throw out.”

A small but mighty crew
3DX runs with an efficient crew of about eight people who work mostly independently. Several workers in the subtractive area attended industrial technology programs at Bellingham Technical College.

“On the additive side, our workers are usually somebody that may or may not have been to engineering school,” Janssen said. “But more importantly, if they are excited and want to do this type of work, those are the people that are successful here.”
3DX also trains its workers.

“More and more of the trade shows are focused on education,” Janssen said. “Sometimes there are 50 classrooms, and they’re bringing in some of the best instructors from around the world.”

Whatcom Community College has added some new additive machines that are used by students in its many engineering-related transfer degree programs, Janssen said.

Considered an essential business, 3DX wasn’t too impacted by the COVID-19 pandemic; like many other businesses, however, it has been affected by supply chain issues, worker illness and career shifting.

“We’re always working on a positive work culture here,” Janssen said. “I want people to want to be here. There’s the option to participate on the stock side as well, if someone is really engaged in what we do.”

Janssen says the choice to work four 10-hour days each week was a group decision among the workers.

Janssen’s team includes his mother, Marsha, who has been popping in since the 1980s to help with billing and accounting whenever there is a need.

Janssen is also active in the Society of Manufacturing Engineers in Seattle, which is starting a group in the Pacific Northwest for women in 3D printing. Janssen grew up in 4-H, so he has a soft spot for its programs, using his business to support local groups each year. The company also has built a truck for the local demolition derby.

Staying on the cutting edge of technology and business
The pace of technological innovation, especially within the field of manufacturing, is evolving and progressing so rapidly that it’s hard to keep up. But that’s what Janssen finds most exciting.

“I love to hit all the trade shows,” he said. “I’m always knee deep in all the latest and greatest. Metal printing is becoming more standard, and there are a lot of people chasing it down. We’re still considered an early adopter as far as west of the Mississippi; there aren’t a lot of shops that are metal printing and machining the way we are, especially the binder jet.”

Past Western Washington University students have investigated the feasibility of recycling more of the waste from subtractive manufacturing and the parts themselves.
Although many parts are still made using a subtractive process, as the technology improves, more and more are gradually converting to an additive process.

“We plan to buy more additive machines, because we see that as the future,” Janssen said.
The company has an open-door policy, he said.

“Fridays are the best day to reach us to discuss your project,” Janssen said. “We also have an annual shareholder meeting with tours so future shareholders can understand what we do.”

Janssen said he believes additive manufacturing will change the way we live, help humanity and make the world a better place, on a scale similar to the invention of the automobile, the airplane or the computer.

“For a strong economy, any country that has a good manufacturing industrial base historically does well,” he said. “Our government knows that and is investing in that security by putting 3D printers in schools and making sure there are tech school programs to train those workers.”

3DX plans to expand aggressively in the coming years.

“We’re looking at additional locations besides Ferndale, either Eastern Washington or even out of the state,” Janssen said. “There’s so much more work coming at us we’re not even worried about competition right now. There are a lot of small shops like us. I’ve seen the stats; there’s 26,000 shops in North America that average 15 to 20 employees, and they’re responsible for making 76% of the parts that we use. It’s not all big business. It’s a lot of small businesses making what we need in our everyday lives with this innovative technology.” ■

Asphalt Northwest owners confident in company’s fast-tracked launch

Tamara Anderson-Loucks
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Asphalt Northwest owners confident in company’s fast-tracked launch

Success in the paving industry is built on relationships among people, not businesses

To take advantage of the 2023 paving season, Loren VanderYacht and (silent) partner Ken Otter didn’t have months to meticulously plan operations and business strategy for their startup company, Lynden-based Asphalt Northwest. The time from initial concept to launch was a mere five weeks. Launching a capital-intensive business so quickly and without any guarantee of work would rattle the nerves of most new business owners. Yet VanderYacht was confident the work would be there. Success in the paving industry, he says, is built on relationships among people, not businesses.

“On a daily basis, my customers primarily only worked with me, and they got to know me and could depend on my ensuring their project was done right the first time,” VanderYacht said. “Many of these customers became repeat customers. Relationships were built. When I changed companies, often the customer would follow, so I was confident we could continue many of those relationships — many whom I’ve worked with now for 20-plus years.”
In business since March, Asphalt Northwest offers paving and grading services to the residential, commercial, industrial and municipal markets and primarily serves Island, Skagit, Snohomish and Whatcom counties. It’s a locally owned company that proudly employs some of the top area professionals, also all residents of Whatcom County.

Given VanderYacht’s enthusiasm for Asphalt Northwest’s achievements this year and his appreciation for the relationships he’s formed in a career that spans more than three decades, you’d never believe that a career in the paving industry was not his calling.

From ‘job’ to lifelong career
When considering employment opportunities as a young man, VanderYacht didn’t aspire to a career in the asphalt paving and grading industry.

“I wasn’t drawn to asphalt,” he said. “I just needed a job. The first asphalt company I worked for, I started out at the bottom. I earned $9 per hour weighing trucks.”

For 31 years, VanderYacht worked his way up the ranks, from dispatching to superintendent and then to estimating. He’s worked for small, family-owned companies and larger corporations, all in Whatcom County. What kept him in the industry were the relationships he built with co-workers and customers.

“Over the years, co-workers and customers have become friends,” he said. “I have some customers I’ve worked with for over 25 years.”

In early 2023, VanderYacht was ready for a change and decided to seek a partner to open a paving company. Around this same time, Dylan Otter was also looking to start a paving company.

“Loren was my supervisor when we worked together in the past,” Dylan Otter said. “I left the industry to work for my father, Ken, at LandTek, but I wanted to return to the paving industry, so I approached Loren about a potential partnership. I thought the worst case was he may say ‘no.’ I had no idea he planned to go into business for himself. The timing worked out.”

Overcoming startup challenges
In February 2023, VanderYacht and the Otters decided to pursue the business venture. VanderYacht currently serves as company president and Dylan Otter as asphalt superintendent.

However, paving season was on the horizon, and if they were to capture any of this season’s business, they needed to move quickly. They fast-tracked the business and incorporated on March 23. Such an aggressive schedule brought two major challenges.
First, the partners believed that new, top-quality equipment that is clean and presentable would help represent the high standards they would provide at every level of the business. However, they struggled to find all the equipment they needed locally on such short notice. Some equipment was sourced from as far away as California and Arizona.

Their biggest hurdle was hiring an experienced crew — and quickly — to be ready to roll at the start of paving season around late March. In paving, a quality finished product is often dependent on the skill of the crew.

“This is not the type of work you can just take someone and simply train them to do it and send them out,” said Leah Roorda, the company’s asphalt administrator. “It takes years of experience to master it.”

Hiring a skilled crew was critical, VanderYacht said.

“We knew we had to have experienced, highly skilled people,” he said. “That would be key to our success. Inexperience can lead to lower-quality work, and as a business we could have been finished not long after we started.”

VanderYacht and Otter needed top-notch pavers to solidify their reputation from the get-go as a business that puts quality first. To recruit and retain the best, Asphalt Northwest would need to offer top pay and a robust benefits package. The company offers competitive wages, fully paid medical, dental and vision insurance for employees and their families, a retirement program, and paid leave.

Together, they reached out to previous co-workers with whom they had established relationships and knew the quality of their work.

“Between Loren and myself, we’d worked with everyone on our team at some point,” Dylan Otter said. “We knew their work history. They had a lot of trust in us and in Loren’s experience.”

That gave the team a lot of options, VanderYacht added.

“We were able to be selective,” he said. “Our paving crew averages 14 years of experience. This is one of the best crews I’ve had in 31 years, and not just skill set-wise. We have a team of truly great people. We’ve become a family.”

While some companies currently struggle with staffing shortages, this has not been a problem for Asphalt Northwest. VanderYacht says qualified people continually knock on their door.

Thriving despite a lagging economy
While the economy has been sluggish this past year, VanderYacht says that it hasn’t had much effect on the paving industry, because there is still plenty of work available from new housing developments and commercial projects.

In fact, the newly formed company has not struggled to acquire the level of work needed to keep its crew busy. Otter explained that since customers tend to work closely with a company’s estimators, schedulers and site crews, rather than the top-level ownership, it wasn’t difficult to be the paver of choice for previous customers’ 2023 projects.

“The local contractors know who we have working for us — who the foreman is, who is running the paver, etc. — as they’ve worked with them at some point over the years,” he said. “There is a lot of trust in Loren and the capabilities of our crew.”

Lane Stremler, president of Stremler Gravel, concurs. He was worked with VanderYacht for 20 years, as did his father and uncle before him. Stremler has upcoming projects on the books with Asphalt Northwest.

“Problems can arise in construction,” Stremler said. “That’s where our work history with Loren is important. We know he’ll have our back. There is a lot of value in that. When Loren and I discussed the new business, I had two key questions for him. First was about the equipment, which has a lot do with the finished product. Asphalt Northwest has brand name, high-quality equipment. Second was the crew. For asphalt, you need experience both in running the machine and on the ground. He told me who he had working for him. He’s got a highly experienced crew behind him.”

Asphalt Northwest also offers one of the best warranties in the area — two years on workmanship and materials, twice the industry standard. With several projects now completed and available for potential new customers to view, it will be a much smoother road for the company to land bids with companies with which there has been no prior relationship.

“I’ve looked at projects they’ve completed,” Stremler said, “and the quality of work is impressive.”

Finishing strong in 2023
VanderYacht expects Asphalt Northwest to finish strong in 2023, thanks in part to established relationships decades in the making. His goal for 2024 is to add some equipment and a couple of additional employees. VanderYacht and Ken Otter’s 10-year plan is to retire and pass a highly successful business down to their sons.

While Asphalt Northwest is still new and the team is working hard to establish its place within the local paving industry, the experience so far has been gratifying.

“The two most rewarding things are that the employees that previously worked with us made the decision to move to our company,” VanderYacht said. “And several customers made the decision to follow us as well. Without those, we wouldn’t be having this conversation today.” ■

2023 Legislative Session Recap

Dann Mead Smith
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2023 Legislative Session Recap

How local representatives voted on key business issues

As someone who is busy running your business, it is not always easy to find time to track and then engage on issues that impact your company. That is where the Whatcom Business Alliance can be a helpful resource. Hopefully you were able to track some of the bills and maybe even weigh in on them during the 2023 legislative session to let your local legislators know your position on the many bills that could impact businesses in Whatcom County. Here is a recap of what took place during this session, which adjourned at the end of April, as well as how our six legislators in the 40th and 42nd districts voted.

One note for the bills that died: In some cases, our local legislators should be held accountable for not helping them move though the legislative process, so even though there might not be an official vote for or against, you should ask them for their position on each bill and if them not sponsoring a “good” bill is the same as being against it.
Most of these bills come from the list we presented in our Business Pulse column when the session started.

The overall summary from the session:
• No new general taxes were passed.
• The Democrat majority did pass (and the governor signed) several bills that will negatively impact businesses.
• The state budget continues to grow at an unsustainable level, with $4.7 billion in new spending in the overall $69 billion two-year general fund operating budget.
• Several key issues were partially addressed this session but will need additional work next year or via possible ballot measures.

Here is a list of the six Whatcom County legislators (all Democrats) whose votes are listed under each bill below:
40th District:
Sen. Liz Lovelett
Rep. Alex Ramel
Rep. Debra Lekanoff
42nd District:
Sen. Sharon Shewmake
Rep. Alicia Rule
Rep. Joe Timmons

SB 5352 / HB 1363
Concerning vehicular pursuits
Of all the issues the Legislature spent time debating, restoring the ability for police to pursue criminals in vehicles might have been the highest profile. Unfortunately, it was only partially addressed and will need to be revisited in the future. This could be in the form of a ballot measure to the Legislature in 2024 if enough signatures are collected later this year. A watered-down version of Senate Bill 5352/House Bill 1363 that will not significantly improve public safety passed. Nearly every police chief in Whatcom County has spoken about the need for this fix. House Bill 1363 was sponsored by Rep. Rule, who voted for the amended SB 5352 that passed and was signed by the governor. A “yes” vote is a step in the right direction and hopefully reflects their interest in fully restoring pursuits of dangerous criminals in the future. Some legislators voted against the bill because they do not want to restore pursuits in any way, while others voted against it to demonstrate that this bill will not do what is needed and is not worthy of support at this time. Lovelett voted “no,” while all the others voted “yes.”

SB 5536
Concerning controlled substances, counterfeit substances, and legend drug possession and treatment
The other major public safety bill was the so-called “Blake fix,” which addressed open drug use and possession. The Legislature held a one-day special session in mid-May to pass a bill that they could not find consensus on during the regular 105-day session. The bill is similar to what the city of Bellingham passed a few weeks ago to address drug use in the downtown area. SB 5536 passed and was signed by the governor and supported by all six Whatcom legislators.

SB 5476 / HB 1523
Authorizing agricultural employers to select 12 weeks a year to employ workers for up to 50 hours a week before overtime applies
Given how important agriculture is in Whatcom County, it would have been good to have SB 5476/HB 1523 pass the Legislature. Unfortunately, this bill — sponsored by Rep. Rule in the House — to authorize agricultural employers to select 12 weeks a year to employ workers for up to 50 hours a week before overtime applies only received a hearing in the Senate, with no vote taken. There were other agriculture-related bills, but space precludes us from including them in this column.

HB 1011
Concerning the state’s long-term-care program and tax proposal
The state’s new long-term care payroll tax takes effect in July, when it will impact every W2 employee in the state. HB 1011 would have repealed this unpopular program, which is funded by a new payroll tax of 58 cents for every $100 a worker earns. It did not receive a hearing, and none of the Whatcom House members sponsored the bill.

HB 1373
Funding the removal of illegal encampments near schools, child care centers, parks, and courthouses
One bill that was introduced to address the homeless crisis in our state and in particular its impact on local businesses and neighborhoods was HB 1373, but the bill did not receive a hearing and did not have any local district sponsors.

HB 1401 / HB 1293
SB 5058 / SB 5290
Addressing affordable housing and building more homes
One of the major goals from the governor and legislators from both parties was to address affordable housing and to build more homes across the state. There were several “good” bills that were introduced, with a few positive and also negative ones that finally passed:
HB 1401 to streamline the permit process received only a hearing and committee vote, with no Whatcom legislators serving on the particular committee that heard the bill. While HB 1293 will streamline some development regulations, SB 5058 exempts some buildings from the definition of “multiunit residential,” and SB 5290 consolidated the local permit review process. All of these passed, and I am pleased to report that all six of the Whatcom legislators voted for all three. All were signed by the governor.

HB 1110
Concerning removing single-family zones in cities across the state
One housing bill, HB 1110, was controversial and received support (from all Whatcom legislators) and opposition from legislators of both parties, as it allows more housing units to be built on single-family-zoned lots, which will increase the supply of housing but also density. Furthermore, it overrides city and county current zoning. Ramel and Lekanoff sponsored this bill.

HB 1181
Improving the state’s response to climate change by updating the state’s planning framework
On the other hand, HB 1181 adds “climate change” as a specific element to the Growth Management Act and adds a goal to reduce vehicle miles driven, which would increase housing costs with yet another regulatory element. When affordable housing is one of the biggest issues locally and across the state, we should be reducing unnecessary regulations to bring down housing costs; this adds another burden to counties, cities and builders. Lovelett voted “yes” and sponsored its companion, SB 5203. Ramel and Lekanoff voted “yes” and sponsored the bill. Shewmake and Timmons also voted “yes,” with Rule the only local “no” vote.

SB 5133
Concerning responsible bidder criteria for public works projects
SB 5133 was one of several bills related to the construction industry, especially small businesses, that might have ended up increasing costs and adding to workforce shortages. The bill died, thankfully, after passing out of committee. None of the Whatcom legislators were sponsors of this bill, which would have required all contractors looking to engage in public/government work to have a “registered training agent,” something many small contractors can’t afford.

HB 1106
Concerning qualifications for unemployment insurance when an individual voluntarily leaves work
HB 1106 unfortunately passed and was signed by the governor. It will make it easier for individuals to gain unemployment benefits by expanding the standards for “voluntarily leaving work.” Employers in Whatcom County and across the state are already struggling to hire employees; this will make it easier to be unemployed.
Shewmake voted “no.” Lovelett, Ramel and Lekanoff voted “yes.” Rule and Timmons voted “yes” on final passage.

SB 5217
Known as the Ergonomics Bill
WBA members might recall the debate over ergonomics several years ago, as a ballot measure repealed the regulations that were passed by state government. SB 5217 now removes the restriction passed by voters on the regulation of work-related musculoskeletal disorders (“ergonomics”), except for home offices. This new law will increase the power of the state Department of Labor and Industries to fine small businesses even when the state doesn’t have any scientific consensus on musculoskeletal injuries. The bill passed even though workplace safety is improving, worker injuries are decreasing and employers are struggling to come back from a pandemic. We should be making it easier, rather than harder, for our businesses. Lovelett sponsored the bill, and all local legislators voted for it.

Stay informed — bills we’re watching
We mentioned three other bills that were good to keep an eye on: SB 5482 would replace the state’s business and occupation tax with a margins tax.

HB 1795 would make the estate/death tax “more progressive.” HB 1484 addresses who qualifies to pay the estate tax by restoring a working inflation index, as the number of people paying the tax is much higher than originally envisioned since there is no functional “death tax index” for inflation. None of these bills either passed or moved out of committee.

WBA encourages you to stay engaged and to continue to let your state legislators know where you stand on these and other important issues, even when they are not in session in Olympia. It’s a good time to ask them where they stand on all of these issues.
You can access more information on these bills and contact your
legislator via https://leg.wa.gov and https://future42.org.

Dann Mead Smith, president/CEO of the Mead Smith Group, works with groups such as Project 42, a nonprofit organization created to change the course of Washington state. Prior to starting his own firm, Dann was president and CEO of the Washington Policy Center. He also served on the Advisory Group of the Washington State Tax Structure Study Committee and the Citizen Performance Audit Oversight Board. Dann is a graduate of Western Washington University and lives part-time in Birch Bay.

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