Business - Business News

POSTED: Sunday, Jul. 05, 2009

Market Report: June marked with business closures

The end of the second quarter was a hectic time for the local business community, particularly when it came to closures.

In June there were 10 Whatcom County companies that either announced they were closing or closed in June.

Here is some other business data released last month worth noting:

Income: Washington state personal income declined 0.4 percent in the first quarter of 2009, one of 37 states to see a decline, according to the Bureau of Economic Analysis. Job losses, lower interest rates and smaller corporate dividend payments all pushed income down, according to the report.

Real Estate: Through May there have been 573 properties sold in Bellingham, down 36 percent compared to the same period in 2008, according to data compiled by First American Title in Bellingham. Properties include homes, commercial and industrial property as well as undeveloped land. In Ferndale, Lynden and Blaine there have been 519 property sales, down 30 percent compared to the first five months of 2008.

Other significant changes in June: The biggest business closure announcement in terms of job loss was Johnson Outdoors, which will be shutting down its facility near Ferndale and laying off 90 people. ... One of Blaine's longest-running businesses, Goff's Department Store, announced it was closing at the end of August. ... Barron Heating and Air Conditioning moved into its $5 million facility on Pacific Highway, near Wilson's Furniture. ... Bonneville Power Administration and Alcoa continue to work on an energy deal that will keep the Alcoa Intalco Works facility near Ferndale open and operating.

By the numbers

QUARTERLY RETAIL SALES

4Q 2008: $780.8 million

3Q 2008: $859.4 million

Whatcom County's taxable retail sales for the fourth quarter of 2008 dropped 10.6 percent compared to the same period in 2007, the biggest year-over-year drop for a quarter since 1993. Whatcom County's retail trade - a subset that focuses on products sold at businesses -was down 13.1 percent for the same period.

BANKRUPTCIES

May 2009: 61

April 2009: 77

May 2008: 36

For the first five months of the year, there have been 304 Whatcom County bankruptcy filings, up 58 percent compared to the same period in 2008.

AUTO SALES

May 2009: 181

April 2009: 221

May 2008: 223

Sales of new cars in Whatcom County are down 19 percent from one year ago, continuing the trend from the last 12 months.

RESIDENTIAL SALES

May 2009: 179

April 2009: 166

May 2008: 238

While home and condominium sales in Whatcom County rose from the previous month, it's still down 25 percent compared to the May 2008.

WHATCOM COUNTY BUILDING PERMITS

May 2009: 96

April 2009: 77

May 2008: 142

For the first five months of 2009, permits issued in Whatcom County's unincorporated areas were down 27 percent compared to the same period in 2008.

FORECLOSURES

May 2009: 114

April 2009: 153

May 2008: 42

While down from the previous month, May had one of the largest number of foreclosure filings and bank repossessions in one month since the national real estate meltdown began two years ago. In May, there was one filing for every 759 households, nearly matching the state foreclosure rate.

MEDIAN PRICE OF HOMES

May 2009: $250,000

April 2009: $259,450

May 2008: $255,000

Whatcom County's median price for homes and condominiums took a 4 percent drop in May, signally a rise in lower-end or first-time residential units.

NEW HOME LISTINGS

May 2009: 496

April 2009: 521

May 2008: 622

The number of new homes and condominiums listed each month gives an indication of how many home sellers are entering the market. The year-over-year drop of 20 percent indicates there are fewer sellers entering the market than in May 2008.

AIRPORT TRAFFIC

May 2009: 28,087

April 2009: 27,342

May 2008: 22,333

There were a record number of people flying out of the Bellingham International Airport in May, beating the previous record set in March of 27,716. The May total is 26 percent higher than May 2008.

CANADIAN DOLLAR

End of June, 2009: 86 cents

End of May, 2009: 91 cents

End of June, 2008: 99 cents

After a big jump in May, the loonie dropped 5 percent, nearly returning to levels seen in the first four months of 2009.

CANADIAN BORDER CROSSINGS

May 2009: 936,876

April 2009: 832,284

May 2008: 1,013,808

The number of people using the southbound border crossings at Blaine, Lynden, Sumas and Point Roberts in May was up 13 percent from April, as tends to happen in the spring. However, the numbers are down 8 percent from May 2008.

BELLINGHAM BUILDING PERMIT VALUES

May 2009: $5.9 million

April 2009: $16.3 million

May 2008: $11.5 million

In what is usually a busy time for construction, there were 49 permits issued in May, down from 60 in April and 89 in May 2008.

CONSTRUCTION JOBS

May 2009: 7,000

April 2009 (revised): 7,000

May 2008: 8,300

May is usually a time when construction jobs ramp up; it's down 16 percent compared to May 2008.

UNEMPLOYMENT

May 2009: 8.4 percent

April 2009 (revised): 8.3 percent

May 2008: 4.5 percent

Whatcom County's unemployment rate remained up 8 percent for the third straight month, the first time that's happen since the beginning of 1994.