Job Creation and New Business Startups in Idaho

Idaho’s new business establishments have added more than 10,000 private sector jobs per year over the past two decades, accounting for between 20 to 30 percent of private sector gross job gains and nearly all net private sector job growth. Since the end of the last recession, the share of private sector new businesses in Idaho’s economy has risen faster than surrounding states and the nation as a whole, growing from 7 percent of all establishments in 2010 to more than 11 percent in 2016. Job creation by these private startup businesses, however, remains in decline.

Idaho startup rates and failure rates are higher than national averages

In Idaho, as with the rest of the nation, the rise in the number of businesses entering the economy was significantly stymied by the most recent recession that started in December 2007. At the end of the first quarter of 2010, the number of establishment entries in Idaho had sunk to less than 3,000 from its prerecession peak of 5,073. Since then, the downward trend reversed and establishment entries have returned to pre-recession levels.

Source: Bureau of Labor Statistic – Business Employment Dynamics. Startups are establishments less than a year old and do not include non-employer establishments

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Idaho’s Construction Resurges Post Recession

The construction industry suffered disproportionate job losses during the course of the Great Recession as property values plummeted and the over-heated housing market contracted. An oversupply of housing in many parts of the country caused construction to shrink for several quarters even after other industries had begun to grow again. During the post-recession growth period, however, Idaho’s construction industry has outperformed the rest of the country, fueled by the state’s high rate of population growth and the associated demand for housing and commercial space.

Beginning in late 2007, construction in Idaho began to shed jobs at an alarming rate. The industry contracted by almost 24,000 jobs between October 2007 and March 2009 – about 42 percent of the industry’s total pre-recession employment. While construction suffered across the country, Idaho’s sufferings were particularly acute; the state’s 42 percent industry contraction dwarfed the 29 percent loss experienced nationwide. Continue reading

Around Idaho: July 2017 Economic Activity

Information provided in this article is from professional sources, news releases, weekly and daily newspapers, television and other media.

Northern Idaho
North Central Idaho
Southwestern Idaho
South Central Idaho
Southeastern
Eastern Idaho

NORTHERN IDAHO – Benewah, Bonner, Boundary, Kootenai & Shoshone counties

Region

  • Northern Idaho witnessed at least 21 reported wildfires in July. While the actions of the forest service and other authorities prevented any of the fires from forcing evacuations or threatening structures, the number of fires was above average for July. Source: Coeur d’Alene Press

Kootenai County:

  • Construction work began on a new commercial complex in Athol, which will eventually include the town’s first grocery store as well as a hardware store, a hotel and additional light industrial and commercial space. Source: Coeur d’Alene Press
  • The Idaho Transportation Department and North Idaho College are partnering to offer a free three-week heavy equipment operator course, which aims both to fill labor needs in the construction industry and offer career opportunities to veterans, women and minorities. Source: Coeur d’Alene Press

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Apprenticeships Go Beyond the Traditional Focus

Apprenticeships are no longer just for traditional trade and craft occupations like brick masons or bakers. Today’s apprenticeships have expanded to include careers in many fields such as information technology and health care.

With this change in apprenticeship opportunities comes additional flexibility for the employer as well. When an employer registers an apprenticeship in Idaho, the employer has the flexibility to customize the training and curriculum offered to help meet the company’s specific needs.

As the popularity of apprenticeships in Idaho grows, so too does the list of unusual opportunities. Here are a few of the apprenticeships the Idaho Department of Labor has recently registered.

Certified financial planner
Figure 8 Investment Strategies

Certified financial planner apprentices (pictured from left) Richard Naing, Taylor Reed and Serpil Rawson (on far right) enjoy learning from Figure 8 Investment Strategies President & Founder Lisa Cooper (pictured left of Serpil). Figure 8 Investment Strategies is located in Boise.

Figure 8 Investments in Boise hired three people to apprentice as certified financial planners in May. This is the first time a certified financial planner apprenticeship has been registered in Idaho. The employer has estimated it will take about four years to complete the 4,000 – 6,000 hours of training and instruction needed before the apprentices are prepared to take the CFP exam. This apprenticeship has been set up as a hybrid which involves both on-the-job training and curriculum provided by the Certified Financial Planner Board of Standards Inc.

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2017 Total Solar Eclipse: Infrastructure Challenge or Economic Windfall?

-Idaho Communities Prepare for Both Scenarios-

Nineteen Idaho counties – from Washington County in western Idaho to Teton County in eastern Idaho – are within the “path of totality” and are expected to see a large influx of visitors during this year’s total eclipse on Aug. 21, 2017.

Preparing for the total solar eclipse is taking center stage locally, regionally and nationally. Experts from Great American Eclipse.com anticipate anywhere from 93,000 to 370,000 visitors across the path of totality in Idaho, including Sun Valley, Stanley and Washington County. But the majority of visitors are expected in eastern Idaho, with NASA estimating upwards of 500,000 in eastern Idaho alone. Anyone trying to book a rental property in the region for that weekend using Airbnb will see a message that “2167 percent more people are looking for rental properties in Idaho Falls now (Aug 18-22) than on average.”

Image: Google

Eastern Idaho can provide roughly 8,000 units of rental sleeping spaces including hotels, motels, rental homes, lodges, campsites and RV parks. If each space is shared by an average of three people, the accommodation capacity is around 24,000 people – less than one half to one sixth of the visitor count expected to spend the night prior to eclipse day. Putting this into perspective, if 90 percent of the visitors are around only long enough to see the eclipse, using the region’s resources and infrastructure the economic benefits for the hotels, restaurants and retail outlets may be less than if they were to spend the night.

Regionally, eastern Idaho has approximately 222,432 people spread across more than 19,000 square miles – much of it vacant without roads and little access to emergency services. The area’s infrastructure – roadways, cell towers, sewer systems, hospitals, emergency teams and more – is engineered to serve the residential population with capacity for anticipated tourism and economic activity. If the number of visitors  for the eclipse are realized for a condensed period of time, as estimated by NASA, the infrastructure will experience up to three times the number of people it was built to support.

While late August is still part of the heavy tourist season, the eclipse attendance will be the largest concentration of visitors the region has ever seen. Travel accommodation businesses, retail businesses and restaurants may see increased foot traffic and higher purchasing volume, but according to department economists, the benefits may pale in comparison to the actual visitor count. The Idaho Transportation Department anticipates seeing roads that would normally carry 1,100 cars per hour, increased to 1,800 or 1,900 cars per hour around the eclipse date. With many visitors intending to leave directly after the eclipse, a heavy increase in traffic may dissuade drivers from spending additional time at local restaurants and shops.

The average hotel room rate in eastern Idaho was $123.97 per day in 2016. With the eclipse, hotel rates are expected to increase significantly depending on the demand. In this case, eastern Idaho travel accommodation businesses are advertising rental spaces for $350 to $2,500 per night. Airbnb claims to have less than 19 percent availability currently open in the area. This is likely comparable to camping and RV site reservations. With an estimate of more than 3,700 rooms total in the region, some hotels, motels, lodges and inns throughout the region are already booked.

In addition, due directly to the sheer volume of visitors expected, the infrastructure costs the region may incur may exceed the profit margins private leisure and hospitality businesses will see.

That’s why Idaho businesses and government agencies within the path are holding frequent meetings in their communities to prepare and create the best possible plans available to accommodate the increase of businesses and at the same time benefit from the event.

For example, with so many small towns right in the path of ideal viewing, the Idaho Department of Commerce is working with the state’s Office of Emergency Management, local law enforcement and area hospitals to ensure all are prepared for the influx of people. In addition to holding a series of workshops in June, with one hosted by Idaho Falls the department has launched a website to serve as an information hub for both communities and travelers.

The website also features resources for businesses, visitors, residents and links to other resources, as well as plans and resources created by the Bureau of Land Management, the Idaho Transportation Department, the US Forest Service and the Idaho Tax Commission.

A quick glimpse at the eclipse impact on the hotel and rental industries can be found below:

Source: Statistica 2017
**The data above represents national averages, in conjunction with Idaho hotel/rental pricing and occupancy estimates for Aug-17.

For more information on what Idaho businesses and government agencies are doing to prepare for the eclipse, visit the Idaho Office of Emergency Management Facebook (https://www.facebook.com/IdahoOEM/) and Twitter (https://twitter.com/IdahoOEM) accounts. Twitter users will find updates using the hashtag #IdahoEclipse2017.

Additional information can be found at these websites:

Hope.Morrow@labor.idaho.gov, regional economist
Idaho Department of Labor
(208) 525-7268 ext. 4340

 

Idaho’s Lumber Industry Gets Boost from Trade Tariffs

Recent tariffs imposed on Canadian softwood lumber should reduce the amount of lumber the U.S. imports from Canada and boost the Idaho lumber industry this year. Softwood lumber — made from pine, fir, cedar and spruce — is mostly used for framing new houses.

Last year, according to Wood Resources Quarterly, imports from Canada accounted for 32 percent of lumber used in the United States. Less competition from Canada should boost U.S. mills’ profits, production and employment.

The countervailing duties on Canadian lumber imported to the United States range from 3 percent to 24.12 percent, averaging 19.88 percent. The U.S. Commerce Department plans to impose additional fees that would mean some lumber importers would face duties as high as 30.88 percent. Commerce says Canada is unfairly selling lumber in the U.S. below production costs, aided in part by improper government subsidies.

The new tariff is the latest step in a 35-year-old trade dispute between the two nations. U.S. lumber producers argue that the Canadian government unfairly subsidizes its lumber industry, since most timber cut in Canada comes from provincial forests. Provincial governments set prices administratively and are lower than if they were set in a competitive market. Under U.S. trade remedy laws, foreign trade benefiting from subsidies can be subject to a countervailing duty tariff to offset the subsidy and bring the price of the commodity back up to market rates.

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Campus Tour is Important Step in Choosing a College

We all know that one person who committed to a college and a major before the start of senior year of high school. However, for the larger percentage of high school students considering a college or a four-year university, visiting a college campus can be a crucial step in making a decision.

Typically, students who are interested in post-secondary institutions fall into four different categories. First, there are those who know what post-secondary institution they will attend, but are undecided on a major. Then, there are students who know what they want to study, but not at what institution. There are those students who do not know what or where they want to study. Finally, there is that small, lucky percentage of students who know what they want to study and where.

Going to a post-secondary school is a personal and family decision based on a few factors including, location, living options, programs of study, college culture, cost, etc. Combined, all of these factors could be overwhelming to any student and her parents. Here are a few helpful tips to consider before making a cross-country trip or committing to a miss-fit for the next four years.

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