North by northwest: Alaska's supply line.

• Author: Brelsford, Harry
• Position: Reliance of Alaska-based companies on supplies from the Pacific Northwest

Like the pioneers of yesteryear, Alaska companies still gear up with supplies from dealers in the Pacific Northwest.

Since gold rush days, Alaska has depended on goods and services coming from Seattle. And Puget Sound businesses continue to serve the Alaskan market with honor. They see a sustained market crucial to their operations.

"Alaska is the butter for many Northwesterners' bread," says Michael Parks, publisher of Marple's Business Newsletter. "It has been a relationship of necessity, based on geography and proximity. Many, many firms in Seattle depend on their Alaskan operations, and take the market seriously."

A landmark study released in 1988, "Alaska's Economic Impact on Puget Sound," quantified the Great Land's effect on Seattle-area businesses. Funded by the Greater Seattle and Tacoma-Pierce County chambers of commerce, the study found outgoing, ocean-based shipments to Alaska accounted for 3 percent of Puget Sound jobs. The study found transportation sector exports between Alaska and the Puget Sound area exceeded $575 million in 1985.

Chris Phillips, director of communications for the Port of Tacoma, suggests shipping volume has increased since the year of the study. Between 1991 and 1992, northbound cargo volumes from the Port of Tacoma increased approximately 2 percent, according to Phillips. The port reported its estimated 1993 growth rate for goods shipped to Alaska was more than double that, exceeding 4 percent on an annual basis through mid-1993. That is an impressive increase during the down years following the Exxon Valdez cleanup.

Some observers view the current Alaska/Northwest trading scenario with caution. "I've revised my forecast to conservatively predict stability in the Alaska/Northwest trading market," says Renatta Bennet, co-chair of the Alaska Committee at the Greater Seattle Chamber of Commerce. "It is a challenge to plan for large projects, booms, etc. in Alaska right now when there is an absence of such projects on the horizon."

The 1988 study found products shipped north in the greatest volume were jet fuel, groceries and manufactured wood products. The study findings about groceries doesn't surprise Michael Maruhashi, a vice president at Piper-Jaffray in Seattle. He was involved in the Carr Gottstein stock offering, and has been bullish on Northwest retailers in Alaska.

"Northwest-based Eagle Hardware has reported its Anchorage store sales are doing well," says Maruhashi. "Costco is committed to Alaska and should continue to be a strong performer, especially after the growing pains from the Price merger are over."

Carr Gottstein, a favorite of Maruhashi's, is an attractive element in his investors' portfolios. He reports having a "couple of dozen" Alaskan clients. Maruhashi dates his Alaska ties to his banking stints at Rainier Bank and Security Pacific Bank.

RETAIL RAVES

Nordstrom looks to Anchorage specifically and Alaska generally during these challenging times in retail. The company recently announced a remodeling plan for the Northwest region, starting with its Bellevue, Wash., store. The new style "embraces shopping" as both a family sport and entertainment.

One notable change is the addition of resting chairs for weary shoppers. The Bellevue store is installing 125 seats for consumers to drop into when they shop. Remodeling plans currently go no farther than the Northwest. "At this point, we haven't planned to remodel the Anchorage store," says Kellie Tormey, Nordstrom spokeswoman.

Costco is a winner, both for shoppers...