Manufacturing rallies in Spokane County

Manufacturing, a legacy industry in so many parts of the country, has been forced to reinvent its business model like so many others to stay competitive. Areas with inexpensive electricity rates, excellent infrastructure/transportation systems, strong regional workforces and favorable tax structures have emerged as major beneficiaries.

For those same reasons, the advanced manufacturing sector is on-the-grow in Spokane County, Wash. Employment increased 18 percent in the sector in during 2010, including more than 1,100 new jobs in the third quarter. The majority of advanced manufacturing firms – those working in chemical, composites, metal, energy and aerospace – employ 20-100 people.

Many issues affecting California businesses

In 20-plus years of recruiting companies in California, times have never been worse in that state. Workers compensation costs are skyrocketing again. The state pension fund is not sustainable and in serious trouble. Companies are struggling, especially in the aerospace industry. The situation is really out of control.

That kind of instability is difficult on companies in the best of times. Against the backdrop of broader economic struggles it can be devastating, which has companies considering their options. Watch this interview for more about the California business climate.

VIDEO: Impact of state budget crises on the relocation decision

Companies may not be moving, but they are planning. Businesses often take up to three years to consider locations, evaluate what each has to offer and make a decision. How states handle current budget challenges is being watched closely. The outcomes will prove telling to companies considering another state.

When companies do relocate, they’re going to move to states that can manage their budgets. They will look to minimize future state budget uncertainties. The state of Idaho as an example balanced its budget without a tax increase – and it didn’t take them forever to do it. The state of Washington is getting its budget balanced while looking for tax cuts, so it isn’t going to be a burden for the business community. Companies are going to look for states that can do that. Learn more about relocation decision factors in this interview.

New aerospace facility to open in fall

Construction has begun on a new Consolidated Aircraft Maintenance and Painting Hanger facility at Spokane International Airport. Associated Painters, Inc. of Everett has signed a 20-year lease for the 41,000-square-foot facility. The hangar bay is designed to accommodate a minimum of two Boeing 737-900 aircraft, with adjoining shops, office and storage space.

The $6.5 million hangar will be the latest addition to Spokane’s healthy and growing aerospace industry. Funding for the facility includes $4 million from CERB, $300,000 from the state’s Economic Development Strategic Reserve Account and $2 million in airport money.

Spokane and the Inland Northwest are home to more than 60 manufacturers, suppliers, distributors, and organizations – 8,100 workers and a $324.8 million payroll – that serve and support the aerospace industry. Aircraft parts and auxiliary equipment manufacturers represent the greatest industry presence in the Inland Northwest, which is also home to companies involved in aircraft manufacturing, maintenance, repair and overhaul.