Business Conditions in North Idaho

Our major employers are not strapped for funds. Luckily, companies such as Coldwater Creek, Thorne Research, and Unicep Packaging are cash-rich, though the stocks for Coldwater have not been this low since 2003. The current economy is troubling for many, but our area is graced by continued good stewardship of its companies, many of which have national and international business: Coldwater Creek, Quest Aircraft Manufacturing, Buck Knives, Airtow, Easy Docks, Encoder Products, Thorne Research, Unicep Packaging, and Litehouse Foods are all companies with low debt and good cash reserves. Even our banks are among the few that did not make the kind of destructive loans that has put our nation at jeopardy.

Finding out about how many businesses are going under and how many are opening is fluid at best. Cathleen Hyde of the Downtown Sandpoint Business Association said that what people see from the street is not a good indicator of occupancy rates. She explained that the visible storefronts might give the appearance of empty buildings, many have simply moved to inner spaces that were significantly more affordable. In fact, we are down about 20 businesses over last year. However, there have been so many new start-ups, including big box stores like Big Five sporting goods opening on Fifth, and other national chains like Jack in the Box and Subway. The new digs for Mountain West Bank and Panhandle State Bank are stunning additions to our town, and with companies like Parsons hiring for the Sand Creek Byway and Quest continuing to hire, our job situation is a mixed bag.

The current rate of occupancy is virtually no different than 2003-04, though does not approach the 94% we saw in ’06-’07. This is probably a good thing though. One of the things that makes Idaho an attractive place to do business are the low costs. We have had a booming economy in some sectors for twenty years. It was not uncommon over the last 3-4 years to see rents in the same high rates as Spokane or even Seattle. With the downturn and closed storefronts, rents have come down to reasonable levels.

Plus, while some businesses have gone under, certainly our rate of bankruptcy is not overt. Idaho ranks 22nd in the nation for bankruptcies, putting it squarely in the middle, and most of the bankruptcies and foreclosures are in areas south of the North Idaho counties of Bonner and Boundary.

Coeur d’Alene is not faring as well as Sandpoint, but predictions are for a fairly rapid recovery even there.

Why do companies, without much of a tax incentive, find Sandpoint and North Idaho so alluring. Check out this video from the Bonner County Economic Development Corporation: http://www.bonnercountyedc.com/business-video.html Basically, one of the biggest draws is quality of life, but there are other reasons.

On their website they explain:

Skilled Employee Pool

Part of the inherent ease of doing business in Bonner County is its bounty of skilled workers. And when you’re located in a beautiful area that happens to have a lower cost of living, it’s particularly easy to find employees who are excited about being part of your growth and productivity. Additionally, Idaho distributes a Workforce Development Training Fund to help Idaho businesses train their workers, so you can have a knowledgeable team up and running in no time.

Low Business Costs

In Bonner County, you’ll also discover some of the lowest workers compensation premiums in the country, thanks to Idaho’s emphasis on working safely and productively. And, having already dropped 36% in the last five years, rates continue to fall steadily, making this an ideal time to relocate your business.

Overall, the costs of doing business in Idaho are much lower when compared with other parts of the country. According to the Regional Financial Associates, Idaho is the seventh best state in the country for total business-related expenditures. For example, many companies find their overall energy costs are half of what they would be in other western regions. And gas prices are just as attractive, as the state is conveniently located on a major north-south natural gas pipeline.

Idaho enjoys a business-friendly government that is committed to helping businesses become successful, profitable assets to its communities. And state and local officials have worked hard to ensure a balanced tax structure that has to date resulted in the third lowest per capita tax burden in the West.

One thing not as easily quantifiable is that employees here have an old-fashioned, show up for your shift, work ethic. Until very recently, Idaho had one of the lowest foreclosure rates in the nation in spite of lower wages than neighboring states. Why? Values that still are important here.

Certainly it has become harder to find work. Once a month for the last few the Bonner County Daily Bee has posted the same story about the rise in the number of unemployed...and, of course, it is true. We enjoyed unprecedented low unemployment for the last few years. Still, since 1997 manufacturing jobs increased in Bonner County by over 1,000, Quest just delivered its first aircraft to missionaries, as another wrote last time, Litehouse is always hiring, and though there are few jobs in the Bee, this is not the bellweather for job postings. For instance, there are dozens of jobs listed in NorthIdahoHelpWanted.com , and Sandpoint Online has similar numbers. Other jobs can be found on Craigslist regionally, and on the job search engines like Monster.

 
Tourism

There have been several restaurants that have closed in the last year, yet we have seen several new ones also: Jack in the Box, 41 South, Subway, Dish to name a few. We saw a real slowdown in summer tourism, much of which can be attributed to the high cost of gasoline, yet we saw few businesses shut down. In fact, in an interview I had on my radio show with Tom Chasse, CEO of Schweitzer Mountain Ski Resort, he explained that bookings for this season were on a par with last year’s, and that season was a record breaker for the ski resort. If the throngs that turned out for Sandpoint Winter Carnival are any indicator, then this winter will not be as bad for North Idaho as it has been for many other parts of the country.

According to the Journal of Business, the economic outlook for 2009 expects a soft year for tourism:

Jeanne Gustafson reported that Tourism is expected to slow further in Spokane and North Idaho in the coming year, though event bookings remain strong, observers say. The article went on to state that 2009 group hotel room bookings for events such as conventions so far are up by 2.3 percent compared with 2008, and such bookings for 2010 already have surpassed this years's group bookings.

Coeur d'Alene and North Idaho hope to maintain their current levels for tourism in the coming year, in contrast to double-digit growth in hotel receipts that those areas experienced last year, says Dani Zibell-Wolfe, vice president of tourism at the Coeur d'Alene Chamber of Commerce. The chamber also administers state grants for the North Idaho Tourism Alliance, which promotes tourism in the five northernmost counties in Idaho, Zibell-Wolfe says.

Last summer, Canadian visitors contributed a lot to the economy, choosing northwest U.S. destinations because of favorable exchange rates. Though gas prices were high in the U.S., they were even higher in Canada, Zibell-Wolfe says.

One trend Zibell-Wolfe says is expected to continue is a rise in tourism from areas within a four-hour drive from Coeur d'Alene.

Idaho Foreclosure Rates

Our local newspapers have regurgitated this misleading info about foreclosures, namely that they are skyrocketing. Only six months ago it was reported that Idaho was the eighth best state in the nation. In other words, one of the lowest rates. Now, less than one year later, we are ranked closer to the bottom. Same thing happened with misleading reporting when our unemployment went up two points this winter. But looking at the data since 1990, this is the absolute normal pattern during winter months. Plus, Schweitzer Ski Resort has not even hired its full staff yet.

Here is what ForeclosureResearch.com wrote in December 2008:

Idaho foreclosure rates: Nothing to be alarmed about

Read more...

Idaho attacks foreclosure epidemic
 

Northern Idaho Area Labor Market Information

Northern Idaho is comprised of the five northern most counties of Idaho: Benewah, Bonner, Boundary, Kootenai, and Shoshone. The beauty and lifestyle of this area has attracted thousands of new residents in recent years, making it Idaho’s second most populous region. The region’s largest city, Coeur d’Alene, is just 33 miles from Spokane, Washington, where many Northern Idaho residents work. Industries playing major economic roles include the lumber industry, a wide variety of other manufacturing industries, tourism, retail, agriculture, call centers and the Coeur d’Alene and Kootenai Tribes.

IDAHO COMMERCE & LABOR LINKS

 

Bonners Ferry     Coeur d'Alene

Sandpoint           Silver Valley

St. Maries

Local Offices 

IdahoWorks Job Search

Wikipedia Idaho Facts

Macneil-Lehrer.com: Background Information: The Changing Idaho Economy

New Study Finds Tourism an Increasing Economic Factor in Idaho

Idaho's Incredible Business Incentives

Starting a Business in Idaho

Priest River Development Corporation

Bonner County Economic Development Corporation

BuyIdaho.org - Newsletter

Idaho Game & Fishery Economic Facts

Inland Northwest Economic Developments, Winter 2008

The following are projects, initiatives and economic developments that are making news in eastern Washington and northern Idaho. This email is distributed by the Inland Northwest

Lewiston, Idaho – Munitions and rocket motor manufacturer, ATK, has completed - ahead of schedule - the training of more than 100 workers at its Lewiston plant using a $272,000 grant from the Idaho Department of Labor grant. In January 2007, the company was awarded a five-year federal contract worth up to $90 million to supply ammunition to the Department of Homeland Security. Much of the work is being done at the Lewiston plant, which has over 900 workers. To learn more, read the press release at http://labor.idaho.gov.

Lewis-Clark State College broke ground this spring on a $16 million Nursing and Health Sciences building at its Lewiston, Idaho campus. The new addition will contain labs for Natural Sciences in addition to classrooms. Expected completion is fall 2009. Visit www.lcsc.edu to learn more.

Boundary County, Idaho – An Idaho Community Gem Grant, engineered by the Panhandle Area Council, has been awarded to the Inland Pacific Hub project to embark on a $300,000, year-long study to develop strategies to create the regional transportation system hub. The Inland Pacific Hub is an inland transportation corridor with vital routes between the Columbia River and north into the Canadian provinces of British Columbia and Alberta as well as east-west routes. To learn more, view this PowerPoint presentation: http://www.inwp.org/pdf/InlandNorthwestCrossroads.pdf

Spokane County has seen the greatest gains in retail sales of all 58 counties in Washington State, according to the Washington State Retail Survey. Spokane retail sales have grown at a rate that is 176 percent higher than the statewide norm over the past five years. The Washington State Retail Survey ranks each county based on a number of factors to determine the "relative strength index.” Learn more at http://washingtonstateretailsurvey.com.

Rathdrum, Idaho – The Rathdrum Prairie will soon be home to a trade-technical high school where students can prepare for a technical career. Students interested careers such as diesel mechanic, machinist or welder will have the opportunity to attend a school that offers courses in those and other trades in addition to traditional high school courses. On the same 100-acree parcel of land, North Idaho College will establish a campus geared toward professional and technical education, allowing students to move seamlessly into college programs. These schools will focus on the 80-plus percent of local young people who don’t pursue a four-year college degree. To learn more, read the following Spokesman-Review article http://www.spokesmanreview.com/breaking/story.asp?ID=17510.

Spotlight on Inland Ports

Lewiston, Idaho – The Port of Lewiston, Idaho’s only water access point to the Pacific Ocean, plays the traditional port role, off-loading the region’s significant exports in timber, grain and other agricultural products, as well as containerized cargo, including plastics, jet boats, log homes and more. It also handles select imports, including heavy equipment destined for the Tar Sands in Alberta, Canada. Innovatively, the Port offers business incubator services to help young companies lay a strategic foundation for growth. Recently, the Port began development of an off-water, 42-acre business and technology park, presenting a campus setting, fiber optics and infrastructure for light manufacturing, professional services and R&D operations.