2008 in Review: Clark County's year in business

(Columbian files)

In the early months of 2008, Clark County’s unemployment rate hovered at 6.5 percent. Lowe’s and J.C. Penny opened new stores. Fisher Investments announced plans to bring 1,000 new jobs to the community. Even early signs of a housing cool-down had a bright side — Clark County was much better off than most of the U.S.

But as 2008 progressed, bad news piled up fast. A Wall Street meltdown spurred by bad mortgages left Washington Mutual in the hands of JPMorgan Chase.

Clark County’s home foreclosure rate climbed, home buyers got scared, and sales started to drop. That hurt developers, who have not been able to sell homes and finish projects — and have sometimes struggled to pay their banks.

As bad news mounted, consumer confidence fell, as did retail sales and manufacturing of the goods that shoppers buy. Several large Clark County retail developments that had been announced were put on hold. Fisher Investments postponed plans to move to Clark County.

Unemployment climbed sharply at the end of the year, reaching 8.2 percent in November. Housing-related construction jobs evaporated, manufacturing and retail contracted, and professional services dropped off.

Amid all this bad news, there were bright spots. North Clark County and downtown Vancouver made strides that should bring new development. And a late-year drop in gasoline prices may have freed up shopping dollars that retailers desperately need.

1. Housing market wilts.

After years as a go-go home-building community, Clark County saw home sales and new home construction plummet in 2008. Sales of new and pre-owned homes fell by 38 percent. Home construction hit 20-year lows. Meanwhile, Clark County’s foreclosure rate was above the state and national average. Many homeowners who could not meet mortgage payments and speculators who had counted on ever-rising sale prices walked away from their loans and their houses. Pacific Lifestyle Homes, a major Clark County developer, sought Chapter 11 bankruptcy protection in October.

2. Unemployment spikes.

Clark County’s robust employment picture began to darken by midyear as employers trimmed jobs. Construction, manufacturing and information all took hits. By November, the region’s labor market had worsened considerably with the area from Cowlitz County on the north to Multnomah and Washington counties in Oregon losing a combined 15,800 jobs. The Vancouver-Portland area saw the jobless rate climb to 8.2 percent in November, up from 5.2 percent a year earlier.

3. Gasoline skyrockets, then craters.

By midyear, a bubble in global oil prices had pushed gasoline prices at local pumps to record highs, with the average gallon of regular unleaded reaching $4.36 at the peak. But as the economy weakened, oil prices crashed. By December, gas prices at Vancouver-area stations were at four-year lows, near $1.65 a gallon.

4. WaMu collapses, other banks fret.

Washington Mutual lost its footing in the mortgage meltdown, and Clark County’s largest bank by deposits was taken over by JP Morgan Chase. All the area’s banks saw profits drop, and publicly traded community banks saw their stock prices battered. But it wasn’t all bad news. Many local community banks and credit unions saw deposits grow as people sought a safe haven for their money. And as banks such as First Independent and Riverview faced an earnings pinch because of flagging development loans, they sought new, creative ways to protect themselves for the future.

5. Retail’s early confidence evaporates.

Big new store openings in Clark County were overshadowed by bad news by year’s end. Fred Meyer opened a store at Grand Central, Lowe’s Home Improvement and J.C. Penney opened stores in east Vancouver, but Best Buy bailed out of Hazel Dell Towne Center in September. By year end, more than $600 million in retail-commercial projects had been put on hold. Those projects include a $20 million Home Depot in Battle Ground, a $215 million complex of upscale boutiques planned for Vancouver’s former Evergreen Airport and a $160 million four-block redevelopment project in downtown Vancouver.

6. North Clark County blooms.

Efforts to market north Clark County’s “Discovery Corridor” — the sweeping swath of real estate from 179th Avenue to Woodland along Interstate 5 — are starting to be fruitful. Hundreds of people turned up in May for the 2008 Business Opportunity Expo, aimed at informing businesses about opportunities in Ridgefield, Battle Ground and La Center. Agave, a high-end designer clothing company, has since moved to the area. After years of planning, millions of dollars and two years of construction, the Battle Ground-Interstate 5 interchange at Battle Ground opened ahead of schedule and on budget. The direct connection to Battle Ground is expected to boost mid-county economic development.

7. Vancouver’s downtown makes strides.

Gramor Development of Tualatin, Ore., and a group of local investors started the year by completing the purchase of the 27-acre former Boise Cascade waterfront site. By year’s end the group had hammered out an agreement with the city of Vancouver to bring streets into the project and submitted a development site plan.

8. Power, gas bills climb.

Rising demand, fluctuating commodity prices, and costly alternative energy requirements have pushed energy costs upward in the Northwest. Both Northwest Natural Gas Co. and Clark Public Utilities are increasing their rates to residential users to meet their higher costs. Clark power will rise 5 percent in January. Northwest Natural rates are already up about 20 percent.

9. Hewlett-Packard scales back.

Without commenting on its plans in Clark County, Hewlett-Packard Co. has apparently reduced its commitment to Vancouver, where inkjet printer technology was developed over the past 20 years. HP, which has made a corporate shift away from consumer printer technology, has cut staffing in Vancouver and at the start of the year put its 34th Street real estate up for sale. At last official tally, employment topped 1,800, but HP insiders say closer to 1,000 people work there now. Still, HP remains among the county’s most important high-paying employers.

10. Fisher’s Camas future grows hazy.

The fast-growing California-based investment management firm said it was eyeing Camas for a new corporate headquarters that would bring 1,000 jobs to the community. But by year’s end, with the national economy in jeopardy, those plans moved to the category of "uncertain."