4_CWU Tech Transfer Agenda 20260519

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58 | Old Heat CERB Feasibility Study INDICATE THE SPECIFIC ISSUES THAT WILL BE ADDRESSED. Indicate the specific issues that will be addressed. The issues outlined in this section directly correspond to the four core objectives of the Old Heat project: creating high-wage employment, commercializing and diffusing technology statewide, reusing state assets efficiently, and modeling a replicable Eastern–Western Washington economic alignment. Each challenge identified below represents a barrier these objectives are designed to overcome, and together they define the scope of transformation the project will deliver. The Old Heat project is designed to address several longstanding and interrelated economic development challenges in Kittitas County and the surrounding region: 1. Lack of High-Wage, Innovation-Driven Employment Kittitas County’s job base is heavily concentrated in low-wage sectors such as retail, hospitality, and commoditized production. The absence of local firms in advanced manufacturing, technology, or engineering-intensive fields has constrained both wage growth and economic mobility for residents. It has also limited the career scope of local youth wanting to stay in the region in their choices towards a STEM education. 2. Outmigration of Skilled Talent Due to limited career opportunities in high-skill fields, particularly in STEM and applied technology, the region experiences a regular outflow of college graduates and young professionals. This “brain drain” weakens the long- term development potential of the local economy. 3. Absence of Innovation Infrastructure The region lacks facilities and institutional mechanisms—such as incubators, accelerators, or technology offices — that connect research, workforce development, and business creation. This disconnect limits the region’s ability to launch and retain innovative firms. SECTION I 4. Economic Vulnerability Due to Industry Concentration Kittitas County’s overreliance on a narrow band of industries makes it vulnerable to downturns in agriculture, tourism, or seasonal sectors. The region lacks economic diversity, making it harder to absorb shocks or adapt to technological shifts. 5. Barriers to Technology Adoption by Local Businesses Small and mid-sized firms in the region often lack awareness, resources, or skilled personnel to adopt advanced technologies like automation, digital platforms, and AI. The proposed ACTI program—if funded—would play a vital role in closing this “technology literacy gap.” 6. Limited Regional Integration to Attract High-Wage Industries Kittitas County lacks strong ties to nearby Metropolitan Statistical Areas like Seattle and Yakima in high-wage supply chains. The Old Heat project addresses this by creating a platform that connects the region to metro- area supply chains and talent networks. This would make Ellensburg a competitive location for advanced manufacturing, ag-tech, and aerospace- related enterprises looking to reshore operations and to expand outside of their metro centers. Together, these issues contribute to a pattern of economic underperformance, talent loss, and missed opportunities for long-term growth. The Old Heat project directly addresses these challenges by serving as a catalyst for regional economic development enabling the region to retain its talent, diversify its economy, and build resilience in a rapidly changing economic landscape. • Workforce Development: Equipping the local labor force with skills and experience for emerging industries. • Utilization of Commercial Properties: Filling and revitalizing vacant or underutilized commercial real estate through business leasing and property sales. • Increased Lodging Demand: Attracting visitors via conferences, events, and accelerator programs, thereby boosting hotel occupancy. SECTION I