Economy of Spokane, Washington facts for kids
The economy of the Spokane Metropolitan Area plays a vital role as the hub for the commercial, manufacturing, and transportation center as well as the medical, shopping, and entertainment hub of the 80,000 square miles (210,000 km2) Inland Northwest region. Although the two have opted not to merge into a single Metropolitan Statistical Area (MSA) yet, the Coeur d'Alene MSA has been combined by the Census Bureau into the Spokane–Coeur d'Alene combined statistical area (CSA). The CSA comprises the Spokane metropolitan area and the Coeur d'Alene metropolitan area anchored by Coeur d'Alene, Idaho. According to the U.S. Bureau of Labor Statistics, the Spokane metropolitan area has a workforce of about 287,000 people (255,000 non-farm) and an unemployment rate of 5.3 percent as of February 2020; the largest sectors for non–farm employment are education and health services, trade, transportation, and utilities, and government. The Coeur d'Alene metropolitan area has a workforce of 80,000 people and an unemployment rate of 6.8% as of June 2020; the largest sectors for non-farm employment are trade, transportation, and utilities, government, and education and health services as well as leisure and hospitality. In 2017, the Spokane–Spokane Valley metropolitan area had a gross metropolitan product of $25.5 billion while the Coeur d'Alene metropolitan area was $5.93 billion.
Spokane's economy has traditionally been natural resource based—heavily dependent on extractive products produced from farms, forests, and mines—however, the city's economy has now diversified to encompass other industries, including the technology, healthcare, and biotech sectors. Major trade in the city started with the first permanent European settlement in the Spokane area and Washington state with the fur trade, with the westward expansion and establishment of the North West Company's Spokane House in 1810. The Spokane House was the center of the fur trade between the Rockies and the Cascades for 16 years. The Spokane area is considered to be one of the most productive mining districts in North America. In the late 19th century, gold and silver were discovered in the Inland Northwest, leading to intensive development of mines in the region. After the mining rushes ended at the turn of the 20th century, agriculture and logging became the primary influences in the Spokane economy. The expansion and growth of Spokane abruptly stopped in the 1910s and was followed by a period of population decline due to economic factors such as capital flight, low commodity prices, and loss of industry. A later stabilization of the economy came with diversification away from natural resources.
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Economic development
Despite diversification to new industries, Spokane's economy has struggled in recent decades. The city faces challenges such as a scarcity of high-paying jobs, pockets of poverty, and areas of high crime. Spokane was ranked the #1 "Worst City For Jobs" in America in both 2012 and 2015, while also ranking #4 in 2014. A 2017 study conducted by a local investment firm found that the Spokane-Coeur d'Alene area had lost publicly traded companies at a rate greater than other metropolitan areas of comparable size. The study indicated the area had lost eight public traded companies with a market capitalization of at least $25 million since 2012, the most of any of the 31 areas surveyed, which all had populations between 600,000 and 900,000 people. Additionally, Forbes named Spokane the "Scam Capital of America" in 2009 due to widespread business fraud. Trends of fraud were noted as far back as 1988, again in 2002, and continuing through 2011.
Economic development in the Spokane area primarily focuses on promoting the following industries: manufacturing (especially aerospace manufacturing), health sciences, professional services, information science and technology, finance and insurance as well as clean technology, and digital media. The local and state government are undertaking steps to develop the economy of the Spokane region. At the local level there is the Spokane Area Economic Development Council, which works with businesses to locate and utilize local and state business incentives. Also, advocating for regional economic growth in workforce, industry, manufacturing, public policy, and healthcare is Greater Spokane Incorporated, a joint organization consisting of the former Chamber of Commerce and the former Economic Development Council. There is also the typical patchwork of member business associations and improvement districts such as the Downtown Spokane Partnership and the East Spokane Business Association that work in conjunction with the city to pool their resources to enhance services and make improvements to the public or private infrastructure that help create a vibrant business climate as well as cooperatively promote business and advocate on city policy matters pertinent to them. In addition to these traditional economic development mechanisms, there has been the addition of the City of Spokane Targeted Investment Pilot (TIP) program, which aims to use a significant portion of city neighborhood development funds and focus them on a single, visible and important business corridor to transform and revitalize it by reconstructing and updating infrastructure such as streets, sidewalks, trees and landscaping, intersections, and lighting, etc., spurring further private investment. The TIP is currently part of the local government's “Centers and Corridors” growth and development strategy and part of the City of Spokane Comprehensive Plan, which focuses growth on mixed use city centers, districts, or neighborhoods. The East Sprague District was the first corridor selected for this program and has been met with some praise. Innovate Washington, a business incubator seeks to help and develop Spokane companies for success.
A number of companies have located or relocated to the Spokane area, drawn by the easy access to raw materials and lower operating costs, such as cheap hydroelectric power including Buck Knives from San Diego. The city maybe benefitting and be able to capitalize on a growing trend of IT firms moving from major urban areas to smaller ones to reduce job stresses like increasing costs of living, labor shortages, and long commutes.
In an effort to further attract companies, area community and business leaders created the "Terabyte Triangle", a sizable area downtown with high bandwidth fiber optic infrastructure in many buildings and wireless connectivity. Spokane's downtown was the site of a 100-block wireless "HotZone" network—one of the largest of its kind in the country, which was seen as symbolic of its dedication to the development of technological opportunities and resources. In 2010, the HotZone was falling into disrepair but local firms have stepped in to continue its operation.
Economy diversification
The growth witnessed in the late 1970s and early 1980s was interrupted by another U.S. recession in 1981, in which silver, timber, and farm prices dropped. The period of decline for the city lasted into the 1990s and was also marked by a loss of many steady family-wage jobs in the manufacturing sector. Although this was a tough period, Spokane's economy had started to benefit from some measure of economic diversification; growing companies such as Key Tronic and other research, marketing, and assembly plants for technology companies helped lessen Spokane's dependence on natural resources.
Mining, forestry, and agribusiness continue to be important to the local and regional economy, but Spokane's economy has diversified to include other industries, including the high-tech and biotech sectors. Economic development in Spokane focuses on six industries: manufacturing, aerospace, health sciences, information technology, clean technology, and digital media. Sizable companies with locations in the Spokane region include, BlueStar Technologies, Ciena, Cisco, F5 Networks, Goodrich Corporation, Honeywell, Itron, Kaiser Aluminum, Telect, and Triumph Composite Systems. Spokane's downtown was the site of a 100-block wireless "HotZone" network—one of the largest of its kind in the country, which was seen as symbolic of its dedication to the development of technological opportunities and resources. As of 2010, the HotZone was falling into disrepair but local firms have stepped in to continue its operation.
Regional services
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With the arrival of the Northern Pacific Railroad in the late 19th century, Spokane became a transportation hub for the Inland Northwest region. After the arrival of the Northern Pacific, the Union Pacific, Great Northern, and Chicago, Milwaukee, St. Paul and Pacific railroads, Spokane became one of the most important rail centers in the western United States, being the site of four transcontinental railroads. Spokane became an important rail and shipping center because of its location between the Rocky Mountains and the Cascade Range and between mining and farming areas (namely the Silver Valley and the Palouse). As a regional shipping center, the city furnished supplies to the miners who passed through on their way to mine in the Coeur d’Alene as well as the Colville and Kootenay districts. Spokane is still a major railway junction for the BNSF Railway and the Union Pacific Railroad and is the western terminus for the Montana Rail Link. Spokane, eastern Washington and northern Idaho are also served by air through the Spokane International Airport at Geiger Field (GEG). Spokane International Airport is the second largest airport in the state of Washington and is recognized by the Federal Aviation Administration as a small hub.
As the metropolitan center of the Inland Northwest as well as southern British Columbia and Alberta, the city serves as a commercial, manufacturing, transportation, medical, shopping, and entertainment hub. The city is also the hub for the service industries, and the wholesale and retail trade center of the 80,000 square miles (210,000 km2) Inland Northwest region. In 2010, the Spokane metropolitan area had a gross metropolitan product of $19.48 billion.
Due in part because Spokane is the largest city between Seattle and Minneapolis and because it lies along the route to many regional attractions, tourism is on the rise in the area. Spokane can be a "base camp" for activities such as river rafting, camping, and other activities in the region.
Economic development
The local and state government are undertaking steps to develop the economy of the Spokane region. At the local level there is The Spokane Area Economic Development Council, which works with businesses to locate and utilize local and state business incentives. Also, advocating for regional economic growth in workforce, industry, manufacturing, public policy, and healthcare is Greater Spokane Incorporated, a joint organization consisting of the former Chamber of Commerce and the former Economic Development Council. Innovate Washington, a business incubator seeks to help and develop Spokane companies for success. In an effort to further attract companies, area community and business leaders created the "Terabyte Triangle", a sizable area downtown with high bandwidth fiber optic infrastructure in many buildings and wireless connectivity.
A number of companies have located or relocated to the Spokane area, drawn by the easy access to raw materials and lower operating costs, such as cheap hydroelectric power.
Images for kids
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Stereoscopic image of placer mining in the Silver Valley
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The Spokane River log boom at Post Falls in 1973
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The Industrial Worker began publication in Spokane in 1909. This work was produced during the US Panic of 1910–1911
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Elson S. Floyd College of Medicine: Educational services and healthcare are the leading industries in Spokane
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Wheat farming on the Palouse, Idaho
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Bunker Hill smelter in Smelterville, Idaho in the 1970s
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Amtrak's Empire Builders at Spokane, WA
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The convention center is a source of tourism
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Concert at the Knitting Factory
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Avista acquired and operated the Central Steam Plant until 1986.
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Sacred Heart, Spokane provides specialized medical care for the region
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