On sustainable economies and living wages

At Seattle Business magazine, we offer perspective on the major trends shaping our regional economy. Last month, we examined the challenges facing our ports in the face of changing trade patterns and growing competition. This month, we take a close look at three very different issues and trends having a major impact on our region.

On page 36, Bill Virgin explores the impact of 3D printers, these magic boxes that add layer upon layer of a materialwhether its metal, plastic or even human tissueto transform digital images into physical objects. A team of UW students used such a device to build a boat from recycled plastic milk jugs. Architects use the printers to create models of their new building projects, a local Lamborghini lab used the printers to build the prototype for a new sports car and, increasingly, companies are using a process called digital to manufacture to create finished products of everything from airplane interiors to light fixtures.

The technology has its limits. The materials can be expensive and the printing process can take days. But it has the potential to help us keep at home some of the production that has been moving offshore. And, like the computer, it is unleashing the creativity of our growing creative class.

By contrast, our cover story by Michelle Goodman (page 30) explores the business challenges and opportunities of marijuana legalization in our state. The business potential is huge. Already, entrepreneurs are positioning themselves to exploit the market. But the federal government has yet to sanction the recreational sale of the drug. Whether it ever does may well depend on the extent to which we and Coloradothe only other state to legalize recreational use of marijuana can develop responsible systems for its regulation and sale.

Many of us approved of the drugs decriminalization because we saw this change as a way to reduce the power and earnings of drug traffickers and force those transactions into the open, where they can be taxed and regulated. Yet, like alcohol, this drug can also be harmful to society. Once it is widely available and promoted by businesses, there will likely be increased consumption. We need to find ways to minimize its abuse by adolescents, whose developing brains are more susceptible to damage, and by motorists, whose irresponsible use could lead to more traffic accidents.

Perhaps one of the biggest drags on our economy is the increasing inequality among wage earners. In our executive Q&A (page 40), we interview Ivars President Bob Donegan, who notes that by focusing on the customer experience, he has found a business justification for paying his workers higher salaries and offering them lifelong careers. Better paid workers provide better customer service while generating more demand for other local products and services.

If we are to create a sustainable economy, its not enough to have new markets to pursue, such as the potentially lucrative marijuana business, and new technologies to exploit, such as 3D printers. We also need companies to develop business models that allow them to pay their employees living wages.