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Manufacturing jobs have county on solid ground
Posted: Friday, Nov 16, 2007 - 10:18:52 am PST
By MARLISA KEYES
Staff writer


SANDPOINT -- Bonner County's manufacturing jobs have put the area on solid footing for the future, said Kathryn Tacke, Idaho Department of Labor regional economist.

Since 2000, the county has experienced a 27-percent increase in total payroll jobs with a net addition of 2,994 jobs. During that same time, manufacturing jobs increased 65 percent, with 904 new jobs added in that sector.

"There are a lot of counties in this nation that would like to be this position," she said. Tacke spoke Thursday at the Idaho Department of Commerce and Labor.

What is interesting is that while the timber industry and Coldwater Creek have lost jobs, the overall number of jobs has continued to grow, she said.


Companies like Unicep, Litehouse and Quest have added to that growth.

And it appears the foundation has been established to add more Bonner County manufacturing jobs in the future, Tacke said.

Growth taking place in Bonner County's manufacturing sector is bucking trends nationally and in the state.

"Your manufacturing here has just been truly amazing," she said.

In seven years, the United States has lost three million manufacturing jobs, while Idaho experienced a decline of 2,600 positions.

By diversifying its economy, Bonner County has experienced job growth after it struggled in the 1980s and 1990s with a severe downturn in the timber and lumber industry.

"Bonner County could be a model for other communities," Tacke said.

This year, the number of available Bonner County jobs increased by 3 percent, typical of Panhandle counties.

The Silver Valley is the exception with 5 percent growth related to an increase in silver prices and mining jobs.

Tacke predicts Bonner County's job growth will remain low or even dip a bit in 2008.

In the coming year, she is concerned that there may be a downturn in the county's construction industry based upon the national economy.

"That national economy is so confusing," she said.

When construction slows down, that affects everything from title companies to real estate, insurance, finance, furniture and appliance stores, she said.

Construction payroll is down 10 percent this year simply because people are not working as many hours, Tacke added.

The real question on people's minds is what to expect from the economy in the coming year, said Realtor Mickie Caswell of Sotheby's.

Although the number of properties sold this year decreased, sales were as solid as they were in 2005, she said.

However, there has been some talk around the community that some contractors have not been paid for work they have done on infrastructure because lots are not selling, Caswell said.

The timber industry also is of concern, Tacke said. More mills, including several in the Priest River area, are extending down time for repairs from four days to two weeks because timber prices are so low, she said.

If construction jobs decrease, however, it is possible that will provide a labor pool for other jobs that need "strong back" labor, Tacke said.

Bonner County's low unemployment has left employers struggling with trying to fill positions. In October, the county's unemployment rate was 3.1 percent, compared to 2.5 percent for the state and 4.7 percent nationally.

Part of Bonner County's labor shortage can be attributed to a decrease in the number of workers available and an aging population.

Overall decline is 11 percent from 2003, with 28 percent fewer workers available from the 14-21 year old group and 22 percent less are available in the 22 to 30 year old group. Workers ages 31 to 55 decreased by 7 percent.

Although younger people have been accused of lacking a work ethic and job hopping, Tacke believes something else is taking place. Because workers have more job options, many are quitting jobs "when they are slightly dissatisfied or because employers vying for workers are offering higher wages down the street," she wrote in "Workforce Availability in Bonner County and the Rest of Idaho."

The labor shortage is not expected to ease any time soon as the Panhandle population ages.

"Population projections suggest that the five counties in the Idaho Panhandle will be able to add fewer than 900 people per year to their labor force between 2005 and 2015," she wrote in a report.

However, the Idaho Department of Labor projects that employment will grow by 2,140 jobs per year.

The biggest concern of businesses is that they will not be able to grow or respond to demand if they don't have a labor pool to draw from, Tacke wrote.



Cris.D.Hartman wrote on Sep 5, 2008 9:03 PM:

" Sandpoint has the access with the small airport and proxiemity to UPS to be a leader in it's field. Quality workers and experience in the production and manuf. lines, give unicep inc. total advantage over their competetors, as well as management who cares, not only about porductivity, but also its employees well being "

Wondering wrote on Nov 17, 2007 1:07 PM:

" Do any of the writers below make $5.25 an hour? I doubt that anyone in town does anymore, except waitstaff...and they have to pay taxes on tips...real or imagined tips. "

sour grapes wrote on Nov 16, 2007 5:35 PM:

" Remember a book called "Nickel and Diming it in America"?, where a journalist (woman) takes on 3 different areas of the U.S. and tries to live off of minimum wage? Yes, a reality show in Sandpoint would be a wonderful thing to watch. thanks for the fantasy sugar shane. "

Economist? wrote on Nov 16, 2007 2:28 PM:

" "That national economy is so confusing". What does Ms. Tacke do for a living? :-) The dollars value is falling, mortgage failures are increasing daily, middle class is suffering while the administration continues fighting for tax cuts for the rich, the Federal Reserve printing presses are working overtime to save those who bought and sold mortgages like commodities while knowing they were worthless subprime loans. The national economy is a house of cards, Ms. Tacke. And the last time I checked Idaho was still part of the United States of America. Economists my eye. "

Sugar Shane wrote on Nov 16, 2007 12:14 PM:

" A model for other communities? With what? The 5.25 an hour or the unaffordable housing? Unemployment is down, but so are the wages. Before you start tooting your horn you should do some research. Jobs are up because employers want to capitalize on the low wage scale. I propose a new reality tv show called "minimum wages" in which lawmakers and representitives from congress are forced to live at the federal minimum wage for one year, to which many hijinx and hillarious adventures will ensue. Can they eat and pay rent? I doubt it! "

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Bonner County Daily Bee
P.O. Box 159 / Sandpoint, Idaho 83864 / 208-263-9534

Bonner County Daily Bee Online is updated at 10am PST.