Business Community

Spokane is the economic, financial and service capital of the Inland Northwest, in addition to being a major attraction for parts of southern British Columbia and Alberta, opening a market to over two million people.

The Spokane economy is heavily trade- and service-oriented, and is working to expand its manufacturing and technology sectors. Because of Spokane’s strategic location, it has been Washington State’s primary inland distribution center and transportation hub since 1881.

Lush forests line the region. An estimated one-quarter of the world’s largest stand of white pine is contained within the 31 million acres of commercial forests in the Inland Northwest. Consequently, forestry products play an important economic role. Pulp, paper, plywood, paneling, wood chips, cedar products, and many large timber and lumber mills contribute to the regional economy.

Miners have been active in the region since gold and silver were discovered in the late 1800s in the Coeur d’Alene mining district.

Spokane County’s non-agricultural labor force increased by 7,180 in 2007 to 222,180 people. In 2007, a total of 10,634 building permits were issued throughout Spokane County. The total valuation of these permits was $252,997,774.

Recent projects in the area include Kendall Yards, a 77-acre site directly connected to downtown, just north of the Spokane River. The development will incorporate residential units and retail, commercial and office space. Two new Y’s are under construction in central and north Spokane.

Recent projects include a $12 million renovation of the grandstand at the Spokane County Fair & Expo Center; a $77 million expansion at the Spokane Convention Center; expansion work at each of the county’s four hospitals; a $38-50 million renovation of the historic Davenport Hotel; and construction of a $23 million arena at Gonzaga University.

In the residential sales market, 6,935 homes were sold in 2007 at an average price of $211,872. The city’s low median home price continues to position Spokane as one of the most affordable places in the nation to live. In 2006, taxable retail sales in Spokane County were $7.2 billion.

The Military

All branches of the armed forces are represented in Spokane County. The Spokane community prides itself on being a friendly community for military personnel and their families. Greater Spokane Incorporated estimates that the military units and their personnel combine to have an economic impact of over $1 billion each year.

The largest military facility is Fairchild Air Force Base, located 12 miles southwest of downtown. This 10,000-acre base was established in 1942 and is the top employer in Spokane County, with nearly 5,000 employees. It is currently designated as an Air Mobility Command base, with more than 41 KC-135R tankers making it one of the world’s largest tanker bases. Additionally, an Air Force Survival School is located at Fairchild, as is a wing of the Washington Air National Guard.

The Navy and Marines operate both active duty and reserve personnel at their facility in northwest Spokane. The Navy also operates a submarine research facility in nearby Bayview, Idaho.

The Army Reserve and Guard units in Spokane add a special dimension to our community. The U.S. Army has been stationed in the Spokane region since the 1870s.

The Hospitality Industry

Tourism is the fourth-largest industry in Washington State. Spokane adds to this by offering its special blend of Western-style hospitality. Whether you stay in one of 6,743 fine guest rooms, or eat in one of nearly 1,000 eating and drinking establishments, you’ll find that Spokane is indeed a friendly city. Most of the major hotel properties offer musical entertainment in their lounges.

Conventions are a major boost to Spokane’s economy. The Convention Center in downtown Spokane, which has undergone a major expansion, joins with the major hotels and motels in making the area an ideal place for conventions, meetings, trade shows and other special events. Its new size allows local organizations to hold meetings, graduations and other events at the same time as major conventions.

Spokane County’s Top Ten Employers

State of Washington	5,119
Fairchild Air Force Base	4,960
U.S. Government	3,463
Spokane Public Schools	3,233
Sacred Heart Medical Center	3,194
Spokane County	2,133
City of Spokane	1,972
Empire Health Services	1,864
URM Stores, Inc.	1,423
Community Colleges of Spokane	1,417
SOURCE: Market Fact Book 2008, Spokane Journal of Business
Spokane County Income Levels
Estimated per capita personal income, 2006	$30,266
Estimated median household income, 2007	$46,956
SOURCE: Market Fact Book 2008, Spokane Journal of Business

Cost of Living Index, Second Quarter 2008

	Composite	Utilities	Housing	Health
				Care
Spokane WA	91.2	81.7	76.8	107.6
Mobile AL	94.2	103.9	81.6	87.7
Colorado Springs CO	92.2	84.6	89.1	103.3
Tucson AZ	99.6	93.7	96.4	97.0
Portland OR	119.3	99.8	136.5	106.1
Raleigh-Cary NC	104.8	98.0	102.3	109.5
Salt Lake City UT	98.8	70.0	99.6	103.9
San Jose CA	156.6	104.3	250.4	120.6
SOURCE: ACCRA; all figures compared to a national average of 100, 2008

Spokane County Average Hourly Wage Rates by Industry

Agriculture, forestry and fishing	$16.70
Mining	$29.96
Construction	$18.94
Manufacturing	$17.21
Wholesale trade	$18.39
Transportation and warehousing	$18.14
Information	$19.35
Finance and insurance	$18.41
Real estate and rental leasing	$14.71
Professional, science, technical services	$19.93
Educational services	$18.82
Health care and social assistance	$18.48
Arts, entertainment and recreation	$13.52
Other services	$13.63
Public administration	$21.61
SOURCE: www.workforceexplorer.com, 2008
Spokane County Non-Agricultural Employment by Industry
Total	208,903
Natural resource and construction	13,409
Manufacturing	18,592
Wholesale trade	10,497
Retail trade	26,213
Transportation, warehousing and utilities	5,242
Information	3,178
Financial activities	9,917
Professional and business services	24,300
Education and health services	33,652
Leisure and hospitality	20,490
Government	32,738
Other services	9,056
SOURCE: www.workforceexplorer.com, 2007