VIDEO: Commerce Director Joe Nguyễn tells Kent business leaders: ‘We need to move with urgency’

Washington State Commerce Director Joe Nguyễn told Kent business leaders the state must build faster, cut red tape and deliver more predictable support to employers and nonprofits as job growth cools and revenue softens at an Oct. 2 membership luncheon.

“We have nearly 800 people at Commerce across 485 programs, and we manage over $8 billion in public investments,” Nguyễn said, adding that the agency’s role is to be a partner rather than a gatekeeper. “Moving projects from idea to groundbreaking should not take years. It should take months.”

Nguyễn said the latest state forecast shows a roughly $400 million dollar decline in revenue since the legislative session ended, with a potential gap of more than $1 billion dollars over four years. Job growth is expected to be about 0.3 percent in 2025 and near 1 percent annually through the next decade, he said.

The comments were made during a question and answer session with chamber members and Sen. Claudia Kauffman, D-Kent.

Local challenges dominated the discussion, including tariffs hitting manufacturers, recent bridge outages that lengthen commutes in the Kent and Green River valleys, and the escalating cost and complexity of permits.

“We have built a culture of caution and complexity when what we need now is a culture of urgency, outcomes and trust,” Nguyễn said.

For small and midsize manufacturers facing tariff shocks, Nguyễn pointed to a new flexible state loan program that ties payments to a firm’s revenue. He also said Commerce is tracking federal tariff litigation that could affect local purchasing decisions.

“The most important thing you want is clarity and predictability. We have neither at this point,” he said.

Nonprofits raised concerns about state contracting rules that drive up administrative costs and delay reimbursements. Nguyễn said Commerce is piloting fixes, including performance based contracts, exploring advance payments that would need legislative approval, and creating “innovation centers” to help first time grantees comply with state requirements. “We are basically asking nonprofits to subsidize the work that the state should be doing,” he said.

Nguyễn highlighted statewide assets that are concentrated in South King County, including aerospace suppliers from Tukwila to Auburn and a strong technology workforce. He said Washington is home to about 23 percent of the nation’s artificial intelligence talent and that Commerce is testing AI tools internally to streamline customer service and grant navigation.

Kauffman urged continued focus on the Kent Valley’s aerospace supply chain, which she called a major employer for the region. Nguyễn agreed and said workforce pipelines, shop class modernization and succession planning for family owned shops are priorities to keep suppliers competitive.

Nguyễn, who grew up in White Center and Burien, said he has pledged to visit all 212 chambers statewide to hear local needs. “Our job is to make sure every city and every tribe and every family has the tools they need to thrive,” he said.

Video

Below is video of the luncheon, as filmed/edited by Scott Schaefer (running time 51-minutes, 54-seconds):