Business leaders in the Puget Sound region have warned that Washington state is losing its economic advantage, calling for urgent action from local authorities to prevent further job losses and restore confidence among employers.
The warning comes as Seattle Mayor Katie Wilson faces pressure over public safety and a significant budget shortfall, with business groups seeking assurances that the city will become easier and more predictable for companies to operate in.
Former Washington governor Chris Gregoire and the business coalition Challenge Seattle have launched the Partnership for a Competitive Puget Sound, backed by more than $1 million in funding. The initiative is intended to strengthen cooperation between businesses and local government, reduce bureaucracy and support job creation.
Its proposed “Mayor’s Playbook” will set out measures aimed at improving the relationship between private enterprise and city halls across the region, including simpler taxes, faster permitting and more consistent rules.
Gregoire said the Puget Sound had lost jobs in 2025 for the first time in decades, adding to concerns about the region’s economic direction.
Figures cited by the partnership show Washington falling from 32nd to 47th in the cost of doing business between 2017 and 2026. Its ranking for overall business-friendliness also dropped from 31st to 40th over the same period, while office vacancy rates in downtown Seattle have risen above 35 per cent.
Business leaders call for a more competitive Puget Sound
The report argues that the region retains significant advantages, including a highly educated workforce, a strong technology and innovation base, access to relatively cheap and clean energy, global trade links and substantial federal research and development investment.
It also points to the region’s defence presence and natural environment as assets that help attract skilled workers and support major industries.
But the partnership says those strengths will not be enough without changes to the way government works with employers. Its priorities include creating simpler and more predictable tax structures, reducing regulatory complexity, shortening permitting delays and linking education and training more closely to regional businesses.
The coalition is also calling for local authorities to work together rather than compete against one another for investment, with the aim of presenting the Puget Sound as a single, internationally competitive economic region.
Speaking alongside business leaders on Seattle’s waterfront, Ms Wilson acknowledged the pressure facing the city and said she was taking its economic competitiveness seriously. Her administration has also described the forthcoming budget as challenging, amid demands for improved services and tighter financial management. ([wilson.seattle.gov](https://wilson.seattle.gov/2026/02/17/mayor-wilsons-2026-state-of-the-city-address/?utm_source=openai))
Corporate executives have warned against responding to the shortfall with wider taxes on employers. Brad Smith, Microsoft’s vice-chair and president, said expanding Seattle’s JumpStart payroll tax across the region would risk driving jobs elsewhere by increasing the burden on businesses.
The debate has placed public safety alongside taxation and regulation as a central economic issue. Business leaders say crime, street disorder and concerns about the condition of downtown are affecting the city’s ability to attract workers, visitors and investment.
Dozens of executives recently signed a letter asking Ms Wilson to produce a public safety action plan within 100 days. They pointed to the co-ordinated security operation planned for the football World Cup as an example of the urgency they want to see maintained beyond major events.
Seattle has already expanded its use of technology in policing. The city launched a Real Time Crime Centre in April 2025, initially using 62 police CCTV cameras in downtown, along Aurora Avenue and in the Chinatown-International District. ([wilson.seattle.gov](https://wilson.seattle.gov/2026/03/19/mayor-wilson-announces-next-steps-on-surveillance-pilot-project/?utm_source=openai))
Ms Wilson has defended her record, saying overall crime is at a 10-year low, but she has also acknowledged frustration over disorder in public spaces.
“There is far too much crime and public disorder on our streets,” she said. “People are frustrated and they are right to feel frustrated, and I, like everyone, want to see faster, more consistent progress.”
The Partnership for a Competitive Puget Sound says its proposals are intended to give city and county leaders practical steps to improve services for businesses while protecting the economic foundations that have made the region a centre for technology, research, trade and industry.
