First appeared on Washington Department of Commerce website on Dec. 17, 2019.
OLYMPIA, WA – Expanding on the success of its original economic gardening program, the Washington Department of Commerce has developed Thrive!, a new program to help second-stage companies increase revenues and position for growth.
Based on the Edward Lowe Foundation’s System for Integrated Growth (SiG) framework, Thrive! connects chief executive officers to subject matter experts who provide them with data, analytics, best practices and strategies that are typically only available to larger corporations. This actionable information can be used to overcome roadblocks related to human resources, finances, operations, marketing, sales, international trade and other business issues.
“Since its introduction three years ago, Commerce’s second-stage program has helped 39 businesses across the state find innovative ways to increase growth and revenue,” said Lisa Brown, Commerce director. “Where the original program focused solely on external issues, Thrive! examines internal and external roadblocks to growth, since one can often affect the other.”
Research shows that historically, companies that have completed a second-stage program like Thrive! experience a 15% to 30% increase in revenue.
The ideal candidate for Thrive! is a company that’s been in operation in Washington for at least two years, has between six and 99 employees, achieved $1 to $25 million in annual revenue and has demonstrated an appetite and aptitude to handle additional growth.
To help offset the $4,275 cost of the program, Commerce contributes $1,275 to pay for the initial needs assessment call with the team leader as well as a strengths-weaknesses-opportunities-threats (SWOT) analysis call with a team of experts assigned to address identified business issues. Based on these calls and the resulting work plan, the CEO can move into the research phase of Thrive!, which entails up to 33 hours of professional research time. Thrive! is conducted entirely by phone and a secure online portal created especially for each participating company. Thrive! requires approximately eight to 12 hours of the CEO’s time over the course of four to eight weeks.
More information about Thrive! as well as a link to the application for the program is available at http://startup.choosewashingtonstate.com/programs/thrive/. Contact Susan Nielsen at [email protected] for eastern Washington Thrive! opportunities.
First appeared in The Coeur d’Alene Press, December 12, 2019 at 5:00 am | By MIKE PATRICK Staff Writer
COEUR d’ALENE — Same ‘ol-same ‘ol looks pretty sweet.
Speaking to a packed house of 215 business people and community leaders Wednesday, economist Dr. John Mitchell said there’s little reason to expect the nation’s unprecedented 126-month expansion to come to a screeching halt. What we saw in 2019 should look a lot like what we see in 2020, he said.
In his annual Coeur d’Alene Chamber of Commerce breakfast address at the Best Western Plus Coeur d’Alene Inn, the veteran fiscal forecaster predicted economic growth might slow a bit but continue heading in the right direction.
“The things we traditionally worry about at the moment are not happening,” he said.
Sure, there’s some uncertainty with impeachment proceedings, Mitchell acknowledged. Angst ebbs and flows with international trade and tariff talk, too.
It’s always possible the market could see a big dip, or threats emerge to upend the tax system or the medical system. And of course, Mitchell had to raise the specter of a black swan event — some disaster that nobody sees until after it’s already happened — no matter how unlikely.
“I worry about… people’s willingness to take chances and invest,” he conceded. “That’s a threat.”
But having covered the big scary stuff, Mitchell’s forecast had a calming effect.
“The things that preceded many other recessions don’t seem to be there,” he said.
Nationally, Mitchell pointed to GDP slowing slightly next year but strong employment and low inflation propelling a steady course.
Close to home, Mitchell unwrapped a Christmas package of economic positivity.
He cited Idaho’s 2.1 percent population growth as No. 1 in the nation, tied with Nevada.
Idaho’s job growth for the year through October was a sturdy 2 percent, good for eighth in a nation where all 50 states showed job growth in 2019. Mitchell charted Kootenai County job growth for three years, from October 2016 through October 2019, and tallied 8.4 percent growth, with construction and leisure/hospitality leading the way.
The local housing picture is especially bright — if you’re looking at the value of your property rather than your tax bill, anyway. According to Mitchell’s research, the Coeur d’Alene metro area had the fourth highest housing appreciation rate in the country as of the year’s third quarter. Chico, Calif., rising from the ashes of the Paradise Fire, led the way with a 14.25 percent appreciation rate. Boise (11.81) was second, followed by Idaho Falls (11.33) and Coeur d’Alene (10.85). Demonstrating the growth power of the Northwest, Spokane was fifth in the nation (9.36).
Growth is also visible throughout Kootenai County, as building permits attest. Mitchell said residential building permits are up 11.5 percent year over year.
“The forces that have been driving the county would seem to be intact,” he said, pointing to confident employed consumers, an aging population in the higher cost areas, the many attributes of the region, and simply rising with the tide of continued national economic expansion.
He’s got some numbers to back that all up. Looking at 2010 through 2018, Mitchell showed a positive population change in Kootenai County. Making babies was responsible for 3,822 new faces, while net migration brought in 19,111 during that period, he said. That added up to a 16.6 percent increase, well ahead of Idaho’s strong 11.9 percent population growth.
Growth is evident not just in bodies but bank accounts. According to Mitchell’s research, Kootenai County residents’ personal income was up 7 percent last year. He noted that the big uptick isn’t all from hard-working employees getting raises or better-paying jobs, either: dividends, interest, rents and transfer payments are boosting the bankroll of retirees.
“Old people save a lot,” he said.
Worries over deficit spending haven’t slowed the overall economy, and the dreaded “R” word has somehow been held at bay. Mitchell called “recession headlines very common in 2019,” but said the warnings are often a reflection of political rather than economic interests.
“I always have in the back of my mind, ‘What’s the person’s agenda?’” he said. “The recession just keeps getting pushed further and further out.”
With some effort, the economist who has been making similar presentations for 47 years strained to see dark clouds, let alone black swans, on the 2020 horizon. However, all economic expansions end sometime.
“I don’t think it’s going to be in 2020,” Mitchell said, “but it’s out there somewhere.”
The following projects, initiatives, and economic developments are making news in eastern Washington and northern Idaho. This release is distributed by the Inland Northwest Economic Alliance on behalf of its regional partners.
COEUR D’ALENE, Idaho — StanCraft Boat Co. is expanding from manufacturing watercraft to offering aviation services with the addition of a $15 million StanCraft Jet Center at Coeur d’Alene Airport-Pappy Boyington Field. Construction on the new 85,000-square-foot FBO began in August east of Empire Aerospace, and the project is expected to be completed by May 2020. Coeur d’Alene-based Eric Hedlund Design is the architecture firm that designed the structure, and Hayden-based Young Construction Group of Idaho Inc. is the contractor. The 40,000-square-foot Southfield Aviation building will be used as a maintenance facility after the new jet center is built. In addition to refitting jet interiors, StanCraft Jet Center will offer jet refueling, conference rooms, waiting and pilot areas, and a tenant improvement space for offices. Contact Robb Bloem, StanCraft President, for more information.
Dauntless Air, an aerial firefighting company, relocated its aircraft maintenance operations to the Coeur d’Alene airport this year. Dauntless protects people, land and property from the devastation of wildfires through advanced aerial fire suppression tactics in Minnesota, Washington, Alaska, Idaho, North Carolina, California and Oregon. Learn more about the company at www.Dauntlessair.com or contact Brett L’Esperance, Dauntless CEO.
PULLMAN, WA — Washington State University’s Cosmic Crisp apple will hit the fruit stands on December 1, a project over 20 years in the making. Cosmic Crisp was developed specifically for Washington’s climate and growing conditions. WSU researchers combined the disease-resistant Enterprise with the Honeycrisp, known for its crispness, juicy sweetness, and hint of tartness. There are 12 million trees planted in the state of Washington and this year 450,000 boxes of Cosmic Crisp apples will be available. Washington apple growers will have exclusive rights to the Cosmic Crisp for 10 years. Washington produces 65-75 percent of the nation’s apples, yet this is the first variety that originated from the state. Contact Proprietary Variety Management for more information.
HAYDEN, Idaho — Roller coaster manufacturer, Rocky Mountain Construction (RMC), continues its Six Flags success with the innovative Jersey Devil Coaster at Six Flags Great Adventure in Jackson, New Jersey. Known as a single-rail coaster, riders in one-passenger cars will straddle a 15.5-inch-wide steel, monorail track and navigate a twisted course that will include multiple inversions, climbing 130 feet and hitting a top speed of 58 mph along 3.000 feet of monorail track. RMC has grown to 115 full-time employees and 5 manufacturing facilities, totaling more than 75,000 square feet. See USA Today’s article for more.
DAVENPORT, WA – Washington Department of Commerce, USDA, and Washington State University Medical School hosted a daylong workshop with 100 community leaders and residents from Eastern Washington to address the broadband law approved this year by Washington state lawmakers. A new statewide broadband office will approve and distribute grant and loan funds to local governments, tribes, public, private and nonprofit entities working together to expand broadband. The program has $21.5 million available, including $14.5 million for loans and $7 million for grants. The state will prioritize funding to public-private partnerships, with a focus on underserved areas in the state. Contact Margie at Lincoln County EDC for more information.
MARIES, Idaho — City officials and housing developers, Troy Lozano, are projecting construction of new homes in Ragan’s Addition to begin in early 2020. Lozano purchased 21 lots in the addition and plans to partner with Julian Construction to build single family homes. Updates can be found at greystonehill.com.
OTHELLO, WA — McCain Foods broke ground on a 170,000-square-foot expansion, a project that will cost $300 million and is scheduled for competition in 2021. The expansion to the frozen potato products line is estimated to bring about 180 new jobs to Othello and is expected to be the biggest manufacturer of frozen potato products in the world. Dale McCarthy, McCain Foods, said Othello’s proximity to West Coast shipping makes it a crucial location for the company. “Othello is very strategic for us.” Adams County officials are working with McCain Foods and the state to develop a recruitment process and support. They plan to conduct a countywide housing needs assessment to confirm housing needs and development solutions. Email Adams County Economic Development Council for more info.
MOSCOW, Idaho — Northwest River Supplies (NRS) began operations from its new facility on South Blaine Street on November 5. The newly constructed 155,000-square-foot building includes a warehouse, customer service center, corporate offices and a 3,500-square-foot NRS flagship retail store. The $13.5 million project received a tax break from Latah County that exempts 75 percent of the increase in the site’s value from property taxes for five years, ending in 2023. Read more here.
PULLMAN and COLFAX, Wash. — Two Inland Northwest businesses were recognized through the Washington Secretary of State’s Corporations for Communities Award Program. Schweitzer Engineering Laboratories, of Pullman, was recognized for donating and raising funds for local charities and providing money for employees to donate to the charity of their choice. Bunyard Automotive, of Colfax, was honored for repairing vehicles at little to no cost for families in need. Both businesses were awarded the National Association of Secretaries of State Medallion for their efforts in their communities. The full press release is here.
OSBURN, Idaho — The city dedicated the newly completed Shoshone Fire District #1 facility, which was awarded a $500,000.00 block grant earlier this year. The new 10,000-square-foot facility is a significant fire, training, and emergency services upgrade for the region. Contact Silver Valley EDC for more information.
LEWISTON, Idaho — With a start-up $839,809 grant from the National Science Foundation, the Northwest Intermountain Manufacturing (NIMA) Association has created a pilot project to train high school students in fabrication and machining. In partnership with Lewis-Clark State College, the Clearwater Economic Development Association, the University of Idaho and 16 school districts, the program gives students a solid skill set and educational background in manufacturing so they can be ready to start work right after high school for local companies. The first group of students will complete the program in 2020. See Idaho Department of Labor article here.
LIBERTY LAKE, WA — In response to a gap in the city’s flex office market, Liberty Lake Coworking LLC will open Jan. 2 at 23505 E. Appleway. The 4,600-square-foot space will have 11 private offices, six semi-private spaces, and open table space. The space will also feature booths for private calls, two semi-private meeting booths, a podcast and media room, access to high-speed fiber internet, and free parking. More details can be found here.
POST FALLS, Idaho — Construction on Idaho’s fourth state veterans’ home is expected to start next year. The 82,000 square foot project is to be built in Riverbend Commerce Park in Post Falls and will have 64 beds. The home will be built on 7.3 acres donated by the Jacklin Land Co. in Riverbend Commerce Park on Post Falls’ west side. It is adjacent to BioPol Laboratory and Buck Knives. See the full article here.
SPOKANE, WA — The Toolbox manufacturing incubator expanded to 17,000 square feet in a recent move to Logan Neighborhood. Anchored in the space is Vestis, which manufactures specially designed commercial awnings and canopies. The Toolbox continues to serve as collaborative space where established companies and business mentors share expertise, ideas, tools, and equipment with manufacturing startup and entrepreneurs. The Toolbox is overseen by nonprofit Spokane Create. Read full article here.
On December 4, the Edward Lowe Foundation and Washington Department of Commerce will lead businesses through the basics of Thrive!, a new state program that helps second-stages businesses to increase revenue, streamline operations, and expand into new markets. Contact Susan Joseph Nielsen for more information about Thrive!
POST FALLS, Idaho— Northwest Specialty Hospital completed a $4.5 million addition to include an Endoscopy Center and two additional operating rooms. The 15,000-square-foot addition brings to eight the number of operating rooms for patient surgery. The Endoscopy Center, a 8,650-square-foot addition to the hospital, features two procedure rooms, one exam room and eight preoperative and post-anesthesia care unit bays. See company news release for more information.
Inland Northwest Economic Alliance (INEA) is a consortium of fourteen economic development agencies representing fifteen counties in the North Idaho/Eastern Washington region. The collaborative effort is aimed at building economic growth through enhancing the brand recognition of the Inland Northwest and its communities and showcasing its business value.
Article first appeared in The Spokesman Review, October 22 2019. By Amy Edelen, SR staff writer.
As Melinda Cadwallader and Cassidy Bones walk around a vacant building in downtown Coeur d’Alene, they see potential for a community space buzzing with activity.
Bones, Cadwallader and her daughter, Delia, aim to create The Hive, a coworking space geared toward women entrepreneurs – but inclusive to everybody – that fosters an environment of learning and collaboration.
“It’s a coworking and learning annex where you can get outside of your home, get outside of your normal flow of life and have a space to be inspired, to connect with other people, to work on your business and also know that everyone there wants to help support you, too,” Cadwallader said.
Bones and Cadwallader signed a lease for a 3,400-square-foot building at 405 E. Indiana Ave. because of its proximity to a wellness bar, day care center, parking and the energy of downtown Coeur d’Alene.
The Hive, slated to open in early 2020, will feature several coworking tables, a meeting and workshop area, photography corner, and a media room with equipment to develop podcasts.
“We have a lot of coffee shops here in town, but as student, as an entrepreneur and as someone who works digitally, to just go from coffee shop to coffee shop can be exhausting and distracting,” Cadwallader said. “There’s one coworking space here in town, but women want choices, we want options, we want new and interesting spaces to be and to work.”
Cadwallader, who has a background in vocational education at beauty institutes in Denver and Coeur d’Alene, wants to provide space at The Hive for community members to teach classes and host events.
“That’s what I got to do in vocational education. I was able to take people who were licensed professionals without a master’s degree in teaching and teach them how to share their knowledge and information with students,” she said. “When you see that growth in an individual – where they go from a professional to a teacher of that profession – that change affects someone’s whole life.”
The Hive is among many female-focused workspaces gaining traction nationwide as women entrepreneurs and freelancers look for an alternative to traditional offices, with resources and training to grow their businesses.
Female-focused coworking spaces are becoming more prevalent nationwide because they provide a place for women entrepreneurs to gain access to networks, experts and capital, said Marie Mayes, director for Washington State University’s Center for Entrepreneurial Studies.
“Access to capital is a really critical thing to women entrepreneurs,” she said. “These spaces will often host pitch sessions and pitch coaching sessions to help women prepare to raise capital and help understand capital markets.”
Mayes added that she appreciates female-focused coworking spaces are inclusive to everyone, which reflects the diversity of skills and perspectives that startups often have among their teams.
Established female-focused workplace The Wing launched in New York in 2016. It has since expanded to eight locations nationwide and raised more than $117 million in funding from several investors, including SoulCycle founders Julie Rice and Elizabeth Cutler.
Seattle-based The Riveter, founded by CEO Amy Nelson in 2017, expanded its network of community coworking spaces built by women, for everyone, to five additional cities this year after securing $15 million in venture capital financing.
“Our expansion from one to 10 locations and thousands of members in just two years signals a significant market demand for workspaces, community, resources, and content that caters to the needs of women in work,” Nelson said in an email.
Nelson founded The Riveter after a decadelong career as a corporate litigator in New York and Seattle.
“I had a successful career and, for many years, felt comfortable working in the male-dominated space that is corporate law. But, when I shared the news of my first pregnancy with my colleagues in 2014, I felt the perception and perspective of me in the workplace shift immediately,” she said. “It didn’t make sense to me to remain in a system where I couldn’t make an equal dollar and where I knew mothers faced even more discrimination than women without children. So, I decided to start my own business, The Riveter – a modern-day union of working women and allies.”
Nelson said The Riveter, which now serves more than 2,000 members, has been met with excitement from entrepreneurs and businesses nationwide.
In Coeur d’Alene, Bones said the community’s response to The Hive has been positive, although some people are confused by the concept.
“It’s just new,” she said. “People don’t quite understand it yet, but as we start talking and communicating about what this place is and what this place stands for, people have been very warm, receptive and supportive.”
Bones, who owns Beyond Bones Chiropractic and the small business consulting firm Ascension Consulting with her husband, Ryan, is excited about plans for education space and workshops at The Hive.
“As I’ve created, grown and tried to help rehab businesses, I’ve found there is a really interesting culture around that. The traditional business education that you get in college is not complete,” she said, adding marketing strategies are constantly changing. “So, I’m really excited to have current, very applicable things being taught.”
Memberships at The Hive start at $59 a month, which includes a reduced $10 daily rate for coworking space, two hours of workshops and a 15% discount on additional workshops, event space and media/conference room reservations.
A higher-tier membership – at $129 a month – includes unlimited access to the coworking space, four hours of workshops, two complimentary media/conference room reservations and a 30% discount on additional workshops and event space.
Nonmembers can rent coworking space for $25 a day.
The Hive is launching a fundraising campaign next week to assist with initial startup costs through “iFundWomen,” a crowdfunding platform for female entrepreneurs.
Cadwallader said The Hive’s focus will be primarily on local issues and women to create a space for empowerment in the community.
“It’s locally focused, and we see ourselves duplicating the space, but maybe in another smaller community, like Lewiston,” she said. “We aren’t looking to go to San Francisco. The Wing is there. The Riveter is there. But we have a heart for local community, small business communities, so being a hub for that in a small town is our appeal.”
When your company earns its keep by providing location data to site selectors, economic developers and others, it stands to reason that other people are going to pay close attention anytime your firm engages in a site search of its own.
That was exactly the case when Moscow, Idaho–based Emsi announced July 26 that it was expanding its footprint in Northern Idaho with a new headquarters. The campus will house more than 500 Emsi employees and give the firm room to grow.
“One of the first goals for Emsi was to employ 50 people earning over $50,000 because good jobs in our town drive prosperity for everyone,” said Andrew Crapuchettes, CEO of Emsi. “Through striving to bless our customers, employees and shareholders, Emsi has enjoyed market success and is now privileged to be a part of Strada Education Network. With Strada’s backing and the crucial support of many people in Idaho, we are grateful and excited to build this signature building in Moscow.”
Emsi was launched in Moscow — 80 miles (130 km.) south of Spokane and 300 miles (480 km.) north of Boise — in 2000, as Economic Modeling Specialists International. When the firm moved to its current downtown facility in early 2014, it had 92 employees. Today, Emsi employs more than 200 people, with about 160 working in Moscow.
Emsi anticipates a move-in date of late 2020. The expansion will allow the firm to add more software developers, engineers, data scientists, economists, sales executives and other personnel. By remaining in Moscow, Emsi retains access to a talent pipeline coming out of the University of Idaho, Washington State University and New Saint Andrews College. More than 550 students with the skills required for Emsi’s key occupations graduate each year from these schools.
Happiness is Hard to Quantify
Emsi CFO Timothy van den Broek says that talent and quality of life convinced the firm that the best place for the new headquarters was Moscow. “We’ve been very happy with Moscow as a place to operate for 20 years,” he says. “It is our town. Our employees mostly live here, and their families live here. Within 10 miles, we have three colleges that all produce a good number of high-caliber graduates.”
But it’s not just about skills, says van den Broek.
“We hire people of great character,” he adds. “Moscow is largely an immigrant community of transplants from across the nation and around the world. I am a family man. I have a wife and five kids. I could not imagine a better situation.”
Tax reimbursement incentives, mostly employment-related incentives, were helpful in getting this deal done, he says, noting what he calls a “fantastic relationship” with the state, county and city. Quality of life is the icing on the cake, says the CFO, who is originally from England. “We have a vibrant restaurant scene in Moscow. The jazz festival brings a good amount of people to the region,” he notes. “My commute is a 10-minute walk. If I drive, it’s one minute.”
The new space could accommodate a workforce of 1,000 people or more, he says. “If we do our job well and help our customers grow, we’ll continue growing ourselves. We are in this for the long haul.”
Brian Williams shares some great thoughts on local food systems and why they are important for building strong communities in his August 2017 article, Local Food: Turning your Greens into Greenbacks.
“There are many reasons to promote local food in your community: freshness; knowing where your food came from and how it was grown; supporting local farmers; having an alternative to fruits and vegetables that were trucked across the country from California or Florida.
But one of the best reasons is economic development: keeping your food dollars in your own town, county, and state.“
—Brian Williams, consultant for Local Nexus LLC
According to the USDA, more than 150,000 farmers, ranchers, and agricultural entrepreneurs are selling quality products directly to consumers nationwide. These direct sales at farmers markets exceeded $1.5 billion nationwide in 2015.
“As the number of markets grow around the country, so do the number of farmers. This means that with the help of farmers markets, hundreds of farmers choose to stay in agriculture over another profession, thereby helping to preserve our farmland and rural traditions.”
Farmers markets also act as an important “third place” or gathering space in your community. These places can cultivate a different kind of connection among people in our communities, welcoming people and providing space for neighbors and friends to meet one another.
As of today, there are over 8,000 markets listed in the National Farmers Market Directory, demonstrating the continued demand for community-oriented markets and the many contributions they make to local economies. Connecting rural to urban, farmer to consumer, and fresh ingredients to our diets, farmers markets are becoming economic and community centerpieces in cities and towns across the U.S. The Inland Northwest is no exception:
IDAHO FARMERS MARKETS:
Athol: Athol Farmers Market
Bonners Ferry: Bonners Ferry Farmers Market
Coeur d’Alene: Wednesday Market
Harrison: Harrison Grange Market
Hayden: Saturday Market
Kellogg: Silver Valley Community Market
Moscow: Moscow Farmers Market, Tuesday Community Market
Sandpoint: Farmers’ Market at Sandpoint
WASHINGTON FARMERS MARKETS:
Chewelah: Chewelah Farmers Market
Colville: NEW Farmers Market
Clayton: Clayton Farmers Market
Kettle Falls: Kettle Falls Farmers Market
Liberty Lake: Liberty Lake Farmers’ Market
Newport: Newport Farmers Market
Pullman: Pullman Farmers Market
Othello: Othello Farmers Market
Spokane: Emerson-Garfield Farmers’ Market, Fairwood Farmers Market, Kendall Yards Night Market, Millwood Farmers’ Market, Perry Street Thursday Market, Spokane Farmers’ Market, and West Plains Farmers’ Market
Spokane Valley: Spokane Valley Farmers Market
The national coworking culture is now fifteen years old. Successful coworking spaces know they need to be more than just secure wifi, free coffee and meeting rooms.
“Coworking spaces have to go above and beyond to stay competitive and thrive—developing niches spaces for certain businesses (legal, fashion and beauty, blockchain, film production), offering unique experiences such as coliving or childcare, plus getting creative by opening spaces in underutilized real estate like hotel business centers or within stores.”
—Madison Maidment, COO of Coworker
One novel idea is an app that connects you with another local option: your neighbor’s living room. Codi, a new startup launching soon in the Bay Area of California, turns apartments and houses into temporary, affordable coworking spaces during the day.
“I used to work from home, and it’s very isolating. When you go to coffee shops, they can be very distracting. And there were no working options close by, and downtown coworking spaces are very expensive.”
—Christelle Rohaut, CEO/founder of Codi
LiquidSpace is a national online network that connects people with spaces. Users can search for meeting rooms, coworking space, private office suites, brainstorming-ready spaces, event spaces, and, dedicated desks. Searches can be customized to neighborhoods or specific properties to be the first to know of new space availability.
The list of coworking spaces in the Inland Northwest continues to grow, as rural communities recognize the need to attract flexible workforce and encourage a startup culture.
IDAHO CO-WORKING SPACES:
Bonners Ferry: The Plaza Downtown
Coeur d’Alene: The Innovation Den, SpaceShare CDA, Rockford Building
Hayden: Panhandle Area Council Business Incubator
Sandpoint: The Office Sandpoint
WASHINGTON CO-WORKING SPACES:
Liberty Lake: Liberty Lake Portal
Pullman: Crimson Commerce Club (C3)
Harrington: The Post & Office
Spokane: Niche Coworking, Fellow Coworking, Level Up, Regus, and StartUp Spokane
Washington State grant helps international food processor expand, add jobs in Othello
April 15, 2019
OLYMPIA, WA – The Washington Department of Commerce provided a $100,000 grant to the Adams County Development Council from Gov. Inslee’s Economic Development Strategic Reserve Fund to support the expansion of SVZ-USA Washington Inc., the only North American subsidiary of Netherlands-based specialty food processor SVZ International B.V.
The company plans to invest $4.8 million to increase capacity at its Othello facility opened in 2000, adding 17 new manufacturing jobs to its 90 existing employees.
“SVZ is an important part of the food processing cluster in Othello, and we are pleased to help Adams County Development Council partner with the company to make infrastructure improvements that will strengthen the entire community and prepare for future growth,” said Commerce Director Lisa Brown.
“We are excited to have SVZ-USA moving forward with a $4.8 million expansion project that will bring new jobs to the city of Othello and Adams County,” said Adams County Economic Development Director Stephen McFadden.
The grant will help offset the cost of sewer system improvements required by the city of Othello for the expansion. This will also extend the new sewer line well beyond SVZ’s building, facilitating future municipal connections and growth.
SVZ-USA specializes in processing fruit and vegetable juices, concentrates and purees for food and beverage manufacturers around the world. The company is recognized globally for sustainability and agronomy management best practices.
“The company is actively involved in our community in multiple ways,” McFadden added. “SVZ employees volunteer with several community organizations, and the company plays an active role in the Othello Career Showcase where we connect students in grades 8 through 12 with local employers to introduce them to the numerous career paths that exist within their hometown.”
“Building and growing a great business requires equally great relationships. We are very pleased with the relationship we have with The State of Washington, Adams County, and the City of Othello. The grant funding provided facilitates our expansion, and confirms the business friendly and supportive role of government to our international leadership,” said David E. Stewart, president, SVZ-USA Washington.
“In addition to direct employment increases, as our sourcing of raw materials is predominantly local, we look forward to expanding our local sourcing as we partner with farmers for our agro supply needs, increasing by about 30 million pounds with this expansion,’ he added. “Our business success requires long-term relationships with customers, farmers, employees, and the communities in which we operate.”
first posted in the National Governor’s Association via Medium, March 8, 2019.
The Creative Sector: A Proven Economic Catalyst for Rural America
Rural regions contain some of our nation’s most iconic landscapes and cherished heritage, yet many of them are struggling with persistent economic obstacles. Rural America is contending with the outmigration of young and skilled workers, low levels of educational attainment, infrastructure needs (both physical and digital), rising poverty rates, barriers to health care and poor health outcomes and problems related to an evolving economy ― especially the loss of industry.
While the overall U.S. economy has rebounded from the most recent recession, rural areas have not shared equally in the gains. In spite of facing similar problems, some rural areas have prospered since the Great Recession: They experienced population growth, earnings growth, higher household incomes and the ability to attract and retain workers.
The “secret sauce” for those prospering rural areas is their ability to leverage their creative sector assets to catalyze economic and workforce development initiatives in those rural areas. An extensive body of research by economists at the U.S. Department of Agriculture and the National Endowment for the Arts has found:
- Rural counties that are home to performing arts organizations experienced population growth three times faster and higher household incomes (up to $6,000 higher) than rural counties lacking performing arts organizations.
- Rural counties with design-driven businesses ― those that integrate branding and design services ― recovered more quickly from the recession, showing more growth in weekly earnings over the period from 2010 to 2014.
- Two out of three rural businesses report that arts and entertainment are important to attracting and retaining workers.
- A forthcoming action guide from the National Governors Association (NGA), in partnership with the National Endowment for the Arts (NEA) and the National Assembly of State Arts Agencies (NASAA), describes three principles of arts-based rural development for governors and other state policymakers.
- Creative sector initiatives are most effective when attuned to the particular creative assets and needs of rural communities.
- Those creative and cultural assets can be used as a springboard for local economic development ― that is, they can catalyze growth and amplify broader community planning and rural Main Street development.
- Creative sector initiatives add value when integrated with economic development, workforce development, community development and other state and local policies and practices.
When these principles are applied within a state’s existing policy framework, the steps can lift employment, wages and the quality of place in rural areas.
The action guide features numerous successful high-profile examples of states, regions and rural communities that have become more economically resilient and sustainable through creative sector initiatives. The Montana Artrepreneur Program, for example, expands entrepreneurial opportunities for rural visual artists by providing personal coaching and other business and marketing training over 10 months. Artists who received certification through the program between 2009 and 2014 experienced, on average, a 650 percent net sales increase and an 87 percent increase in out-of-state sales.
Nebraska Gov. Pete Ricketts is promoting creative entrepreneurship by providing access to “maker” equipment, such as 3D printers, through rural libraries. This is intended to help strengthen the maker culture in rural areas and expand the libraries’ roles as anchor organizations for economic development. The libraries are supported by community action teams who are reaching out to residents and offering training.
States can similarly encourage rural community colleges to serve as anchors for creativity-based economic growth. Sheridan, a city in rural northern Wyoming, has been beefing up its creative economic development for more than a decade. It started by collaborating with the Northern Wyoming Community College District to commission a cultural sector inventory and form a local Creative Economies Council. The Wyoming Arts Council funded the community college district’s theater and dance program organizations, which gradually became prominent parts of the local asset portfolio. The state also contributed to funding the redevelopment of a Performing Arts and Education Center affiliated with the local college ― all to the benefit of the surrounding rural region.
Every state has rural areas, including some that we don’t normally think about as being rural, such as New York and Maryland. In New York, interagency coordination has been the key to providing grants focusing on workforce development incorporating the arts. The state’s Regional Economic Councils (REDCs), through the New York State Council on the Arts, are providing $5 million to support projects using the arts to foster workforce readiness and development. Local organizations can apply to develop career-training programs in artistic fields, including internships and apprenticeships in collaboration with high schools, community colleges and four-year colleges. Also, grants for large capital improvement projects through the Arts and Culture Facilities Improvement Grant Program are similarly being offered through the REDCs. The projects are intended to promote accessibility, stability and sustainability of cultural arts facilities and strengthen tourism and business development statewide ― “including in rural communities where such investments can be particularly impactful.” In 2018, the program awarded $20 million for capital improvement projects, and another $10 million is planned in 2019.
Further, some states have designated or certified creative districts that support workforce development. For example, in 2016, Maryland’s 24 state-designated Arts and Entertainment Districts supported more than 8,500 jobs, which collectively yielded $267 million in wages, $63.2 million in local and state tax revenue and almost $856 million in state economic output. Today, Maryland has 26 such districts.
The Next Generation Initiative headquartered in rural Iowa is a collaboration between the Art of the Rural and the Rural Policy Research Institute at the University of Iowa to strengthen connections among the arts, public policy and community and economic development. The Initiative’s web-based Digital Learning Commons and Exchange features how-to material on rural “creative placemaking” which occurs when arts organizations and community development practitioners deliberately integrate the arts and culture into community revitalization work and engage partners from a range of sectors, such as agriculture and food, and policy areas such as economic development, community development, housing and workforce development.
NGA’s forthcoming action guide, Rural Prosperity through the Arts and Creative Sector: A Rural Action Guide for Governors and States, outlines principles, process steps and further examples that constitute an overall Systems Change Framework for rural America based on the creative sector. The Systems Change Framework is organized according to five key roles for governors and states: providing leadership; capitalizing on cultural assets; building the state’s infrastructure for creative partnerships with other policy areas; developing local talent with creative skills and creating an environment friendly to investment and innovation. The guide will be released March 12, 2019. Follow the conversation on Twitter with the hashtag #ruralarts.