Business Profile

Seattle is blessed by great waterways, and the city's economy has always been dominated by domestic and international trade. It began with the lumber industry a century ago and reached a high profile with Microsoft and its spin-offs. In the USA, Washington ranks fourth in the value of exports and is second in exports per capita, with 70% of these exports in transportation and software. Trade-related companies are the source of one in four jobs, while Microsoft, the world's largest computer software producer, employs over 25,000 people. The Port of Seattle is the third largest port on the west coast and the main point of entry for Japanese and South Korean consumer goods into the USA. Air transportation, coupled with the region's seaports and rail links, also plays a key role in trade dependency.

Since 2000, however, the area has gone into recession, with manufacturing levels down, but is slowly improving. In fact, the most recent unemployment figures for Seattle in December 2004 were 4.9%, which are lower than the May 2005 national unemployment rate of 5.1%. Seattle's Forbes rating plummeted from 15th place in 2001 to 73 in 2004.

The main blow was Boeing's decision to move its headquarters to Chicago and begin massive layoffs. For decades, this company, which was founded in Seattle in 1916, was Seattle's primary employer and accounted for more than 100,000 workers - one in four jobs. The national economic downturn after the terrorist attacks of 11 September 2001 resulted in 30,000 layoffs. A potential halving of the boom-time workforce was predicted for 2005, although an upturn in sales at Boeing, plus the introduction of the higher capacity and longer range aircrafts, mean that the plant in Seattle now seems set to increase its workforce instead of decreasing it. Overall, non-agricultural employment fell by 85,100 between December 2000 and October 2002 alone, concentrated mainly in the manufacturing of aircraft and parts, transportation, communications, construction, trade and business services. The city's financial dependency on a relatively small number of companies has always meant major risks in employment. Software development such as Microsoft and e-commerce companies such as Amazon.com and Nintendo were responsible for the area's economic boom in 1999 and 2000 and although the soaring profits have levelled off, the industry remains stable. Solid retailers such as Nordstrom, Eddie Bauer, Costco and Starbucks are centred here, as is the insurance giant, Safeco, which acquired rights to the name of the city's main sports arena, Safeco Field.

The main financial centre is Downtown, on Third, Fourth, and Fifth Avenues (just south of the retail core), although manufacturing districts extend from Redmond to the northeast, where the main Microsoft Campus is also located, and south to Boeing Field and the city of Tacoma.

Business Etiquette
Seattle locals appear remarkably informal in their business dress and manner, even to other Americans. Comfort comes foremost, particularly in the high-tech and e-commerce world, where jeans, trainers and sweatshirts are standard business attire. It was Microsoft founder Bill Gates' philosophy that people worked harder in less formal environments, so working hours in many companies have followed suit with flexibility, although based on 0930-1800 working hours. Equal opportunity in race, creed, sex and sexual orientation is standard practice. In the world of high finance and law, however, the crisp business suit and briefcase is still the norm for both women and men.

'Power' breakfasts for brainstorming are common, as are 'power lunches' ordered into company premises from designer caterers or speciality restaurants. Dinners at private homes are rare, with fashionable restaurants or wine bars more likely settings. Many Seattleites are health conscious, so when making a private visit, alcohol or sweets might not be appropriate and flowers are the best bet. Visitors should not even think of smoking.