1. Bonner County: Portrait of a Resilient Place 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 8 th Annual Idaho Planning Conference Sandpoint, Idaho October 8, 2015

2. Stay! Even if you’re not from Bonner Understanding economic development potential Larger economic forces affecting rural America Access to data sources and tools to understand your local trends

3. Bonner County, rural ID microcosm Lots of public lands Lots of natural resources and amenities Far from population centers

4. Three Wests

5. Three Wests: Economics

6. Three Wests: Demographics

7. Bonner County is isolated, but prospering

8. Elements of rural economic development What we look for: 1.A diversified economy 2. 3. 4.

9. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3. 4.

10. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3.Residents committed to the community and the area’s quality of life 4.

11. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3.Residents committed to the community and the area’s quality of life 4.A well-educated workforce, suited to current and future employer needs

12. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3.Residents committed to the community and the area’s quality of life 4.A well-educated workforce, suited to current and future employer needs

13. What is behind this diverse economy? Spoiler alert: it’s not (only) tourism

14. Change in compensation, 2001- 2013

15. 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.

16. 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 For every advanced industry job, another 2.2 jobs are created Since 1980, advanced industry jobs have grown 30% faster than the US economy as a whole.

17. 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 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

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

19. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3.Residents committed to the community and the area’s quality of life 4.A well-educated workforce, suited to current and future employer needs

20. How to overcome distance?

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

22. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3.Residents committed to the community and the area’s quality of life 4.A well-educated workforce, suited to current and future employer needs

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

24. How to measure quality of life? Mountains, lakes, and rivers Entrepreneurship, but that’s tricky Trails Miles Public investment Private investment

25. Housing Affordability Average monthly costHousing Costs as a Percent of Household Income OwnerRenterOwnerRenter Bonner$1,334$71649.9%45.7% Ponderay$835$67750.0%51.1% Sandpoint$1,256$70449.1%51.4% Idaho$1,231$72834.4%45.0% Housing affordability is critical to maintaining community and quality of life Bonner County is affordable relative to Idaho, but increasingly unaffordable on local wages Source: U.S. Department of Commerce. 2013. Census Bureau, American Community Survey Office, Washington, D.C.

26. Elements of rural economic development What we look for: 1.A diversified economy 2.Access to larger markets 3.Residents committed to the community and the area’s quality of life 4.A well-educated workforce, suited to current and future employer needs

27. Education is lagging, but improving Primary and secondary education help predict the future Adult educational attainment help describe the current workforce capacity 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 % of population with no high school degree % of population with Bachelor’s degree and higher % of population with Bachelor’s degree % of population with Graduate or professional degree Bonner County9.321.114.76.4 Ponderay7.921.520.21.3 Sandpoint9.320.713.37.4 Idaho11.225.117.27.8

28. Summary Strengths Manufacturing size and breadth Growing advanced industries Consistent tourism draw Residents’ commitment to the community High quality of life High quality primary and secondary education Commercial and residential real estate affordable, relative to the region 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

29. What’s Happening Up North www.whatshappeningupnorth.com November 5, 2015 The goal of this meeting is to share ideas about business prosperity, economic development, and quality of life, to improve the opportunities in Northern Idaho. This event is free and open to business owners, community leaders, residents, and anyone else interested in economic opportunity in the area. Please join the conversation!

30. Tools to understand your community Megan Lawson 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