WA business official says statewide competitiveness could be eroding

March 13, 2026 - 07:20

The President of the Association of Washington Business, Kris Johnson, has issued a stark warning that the threat of businesses relocating from Washington state continues to grow. This concern highlights a potential erosion of the state's overall competitiveness on the national stage.

Johnson points to a combination of persistent challenges creating a difficult environment for employers. The high costs of operating a business, particularly soaring energy prices, are a primary burden. These expenses are compounded by ongoing difficulties in hiring and retaining a skilled workforce, a problem felt across numerous industries.

Regulatory complexity and uncertainty further strain the business landscape. Companies are navigating an ever-evolving web of state and local policies, which can hinder planning and growth. This regulatory pressure, layered atop high costs, is prompting business leaders to critically assess their future in Washington.

The cumulative effect of these factors is a declining perception of the state as a business-friendly location. While Washington boasts significant strengths, including a talented population and innovative sectors, these competitive headwinds are causing genuine alarm. The discussion now centers on whether state policies will adapt to address these fundamental cost and regulatory concerns to retain and attract the employers that form the backbone of the state's economy.