Market Update: Seattle business leaders warn of AI tech shift in economy – Full Analysis

SEATTLE – Layoffs, shifting priorities due to artificial intelligence, and the domino effect. Cities across the country are experiencing change.

The CEO of the Seattle Metro Chamber of Commerce said our region isn’t invincible. FOX 13 Seattle talked with him about how we can prepare for the economy of tomorrow.

“The biggest thing to ensure that we’re providing that durability is the diversity of innovation that happens in this region. A diversity of industries that happen in this region,” said Seattle Metro Chamber President Joe Nguyen.

What He’s Saying:

As layoffs hit Seattle’s tech sector and artificial intelligence has the power to transform any industry, Nguyen said now is the time to adapt.

He said “Our Success is More Fragile than it Looks” in a letter to members of the Seattle Metro Chamber of Commerce earlier this year.

“Almost 100% of the budget in Seattle, the growth is from Amazon, from the JumpStart policies that have passed. So, not only are they providing jobs, they’re providing a significant amount of the revenue we see in our cities,” said Nguyen.

SEATTLE, WA – NOVEMBER 14: Corporate office buildings rise above The Spheres at the Amazon.com Inc. headquarters on November 14, 2022 in Seattle, Washington. (Photo by David Ryder/Getty Images)

He said businesses, small and large, see successes and failures together.

“The businesses here have really changed how the world operates from aerospace with Boeing, Microsoft, Amazon, Nordstrom, even how we shop is different because of this region,” he said.

By the numbers:

Nguyen marvels at a half a trillion dollars a year of economic output in the region from many industries including tech, manufacturing, biotech, and aerospace.

“Boeing. Obviously, world-class, big company. Boeing has 1,500 suppliers that work with Boeing,” Nguyen said. “So, in addition to Boeing itself, there’s 1,500 small, medium-sized companies that employ tens of thousands of people. Those are jobs. Those are people that buy homes, that pay property taxes, that go to restaurants.”

If you’ve looked around Seattle, you may have noticed vacant office and business space, heard about struggling small businesses, and talked with people feeling like it’s harder to find work.

“You’re seeing a lot of folks who once saw this as their home being pushed out. Whether that’s because things are not affordable or because the policies that are being put in place make it difficult for them to do business as well,” he said.

What’s next:

Nguyen said it’s time to listen and work together, forging new public-private partnerships and bringing together different perspectives to build a new, durable path ahead.

“You have to create that environment that people want to start their companies here and want to invest here and want to build here, or else, if you get to the point where you’re concentrating all your revenue in the city or all of your jobs in one industry and they change, you can’t pivot,” he said.

Nguyen said it’s important to learn from other cities and their experiences.

“We’re really in this inflection point where there’s a lot of challenges nationally, there’s a lot of challenges locally and we have to come together to build an ecosystem that is durable because if we don’t, we saw what happens to other jurisdictions,” he said. “Detroit used to be the home of auto manufacturing, Pittsburgh, Cleveland, Ohio — like, all these places used to be beacons of innovation. I want to make sure we stay that way.”

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