1. Economics of Resilience in North Idaho Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development and land management decisions in the West. http://www.headwaterseconomics.org Megan Lawson, PhD November 5, 2015

2. Behind the Grit and Persistence “Through grit and persistence, the center is holding in this Western small town, against forces that are turning other hamlets into ghost towns.” - Kirk Johnson, New York Times, July 3, 2015 Photo: Ruth Fremson/New York Times

3. Three Wests

4. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2. 3. 4.

5. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3. 4.

6. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3.A well-educated workforce, suited to current and future employer needs 4.

7. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3.A well-educated workforce, suited to current and future employer needs 4.Residents committed to the community and the area’s quality of life

8. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3.A well-educated workforce, suited to current and future employer needs 4.Residents committed to the community and the area’s quality of life

9. What’s behind the diverse economy? Spoiler alert: it’s not (only) tourism

10. Change in compensation, 2001- 2013

11. Focus on Manufacturing Fruit and vegetable preserving and specialtyCement and concrete product mfg.Motor vehicle parts mfg. Animal slaughtering and processingCutlery and hand tool mfg.Aerospace product and parts mfg. Bakeries and tortilla mfg.Architectural and structural metals mfg.Ship and boat building Other food mfg.Machine shops and threaded product mfg.Other transportation equipment mfg. Beverage mfg.Coating, engraving, and heat treating metalsHousehold and institutional furniture mfg. Textile furnishings millsIndustrial machinery mfg.Office furniture and fixtures mfg. Other textile product millsCommercial and service industry machineryMedical equipment and supplies mfg. Cut and sew apparel mfg.HVAC and commercial refrigeration equipmentOther miscellaneous mfg. Sawmills and wood preservationOther general purpose machinery mfg.Pharmaceutical and medicine mfg. Plywood and engineered wood product mfg.Computer and peripheral equipment mfg.Plastics product mfg. Other wood product mfg.Electronic instrument mfg. Printing and related support activitiesElectric lighting equipment mfg.

12. Advanced Industries Brookings Institution, 2015: Sectors that invest heavily in R&D Rely in large part on workers with skills in Science, Technology, Engineering, and Math In the US, they represent 5% of the workforce but produce 17% of GDP Since 1980, advanced industry jobs have grown 30% faster than the US economy as a whole.

13. Advanced Industries in Bonner County In 2012, 7% of all establishments in the county were Advanced Industries, which would rank Bonner County 66 th in the top 100 metropolitan counties in the US. Advanced Industries grew by 31% from 2003-2012. Sectors with the most establishments: Power generation Industrial machinery manufacturing Electronic instrument manufacturing Motor vehicle parts manufacturing Aerospace product and parts manufacturing Medical equipment and supplies manufacturing Information services Architectural and engineering services Computer systems design services Management and technical consulting services Scientific research and development services

14. What role does tourism play? Source: U.S. Department of Commerce. 2013. Census Bureau, County Business Patterns, Washington, D.C. Consistent economic engine Marketing the community to business owners, retirees, entrepreneurs

15. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3.A well-educated workforce, suited to current and future employer needs 4.Residents committed to the community and the area’s quality of life

16. Broadband can shorten distance Broadband is a potential solution, but availability, affordability, and reliability lag in Bonner and Boundary County, and many rural places. Limits the types of businesses, footloose entrepreneurs that can thrive

17. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3.A well-educated workforce, suited to current and future employer needs 4.Residents committed to the community and the area’s quality of life

18. Primary and Secondary Education Despite the relatively low funding per student, the district’s schools have high scores in statewide standardized tests, ranking 19 th out of 92 districts in the state Residents of the Lake Pend Oreille School District passed a levy in early 2015 to supplement state and federal funding, providing $7.9 million per year for two years, or 30 percent of the total school district’s budget. Passed by 70% P-TECH: connecting high school students to local employers North Idaho High School Aerospace Program

19. Current Workforce Capacity Adult educational attainment lags behind much of the region

20. Housing Affordability Housing affordability is critical to maintaining competitive advantage, economic diversity, and quality of life North Idaho is affordable relative to Idaho and the Pacific Northwest… Source: U.S. Department of Commerce. 2013. Census Bureau, American Community Survey Office, Washington, D.C.

21. Housing Affordability Housing affordability is critical to maintaining competitive advantage, economic diversity, and quality of life … but increasingly unaffordable on local wages. Source: U.S. Department of Commerce. 2013. Census Bureau, American Community Survey Office, Washington, D.C.

22. Elements of rural economic development Build on strengths and shore up weaknesses 1.A diversified economy 2.Access to larger markets 3.A well-educated workforce, suited to current and future employer needs 4.Residents committed to the community and the area’s quality of life

23. Some jobs lost, but most people stayed Population Jobs

24. How to measure quality of life? Mountains, lakes, and rivers Entrepreneurship Commuting time Arts and public spaces Trails Miles Public investment Private investment

25. Local Strengths and Weaknesses Strengths Manufacturing size and breadth Growing advanced industries Consistent tourism draw High quality primary and secondary education Commercial and residential real estate affordable, relative to the region Residents’ commitment to the community High quality of life Weaknesses Distance to markets Low download and upload speeds Low educational attainment of current workforce Commercial and residential real estate unaffordable and rising relative to local wages

26. Tools to understand your community Megan Lawson, PhD 406-570-7475 megan@headwaterseconomics.org www.headwaterseconomics.org Economic Profile System: http://headwaterseconomics.org/tools/economic-profile-systemhttp://headwaterseconomics.org/tools/economic-profile-system Three Wests: http://headwaterseconomics.org/dataviz/three-westshttp://headwaterseconomics.org/dataviz/three-wests West Wide Atlas: http://headwaterseconomics.org/dataviz/west-wide-atlashttp://headwaterseconomics.org/dataviz/west-wide-atlas