Economy of Spokane, Washington

Economic History

Natural resources have traditionally provided much of the economic activity for the Spokane area, a major center for the timber, agriculture, and mining industries in the region.

Fur trade

At the nexus of the Little Spokane and the Spokane, David Thompson's men built a new fur trading post, which is the first long-term European settlement in Washington state. This trading post known as the Spokane House was in operation from 1810 to 1826. The Spokane House, which was operated by the British North West Company and, later, the Hudson's Bay Company, was the center of the fur trade between the Rockies and Cascades for 16 years. As the North West Company was absorbed into the Hudson's Bay Company in 1821, the operations at the Spokane House continued until 1825, when they shifted their operations to Fort Colville; afterward the company still remained active in the Spokane region.

Mining boom

In the late 1800s, gold and silver were discovered in the Inland Northwest. The discovery of gold, silver, and lead in the Coeur d'Alene region (which generally encompasses present day Stevens, Ferry, and Pend Oreille counties and northern Idaho) in the 1880s precipitated a rush of prospectors into the region. Mining emerged as a major stimulus to Spokane and the city served as a popular outfitting and jumping off point for miners. As a regional shipping center, the city furnished supplies to the miners who passed through on their way to mine in the Coeur d’Alene region. By the mid-1890s, high mining operations were underway in the region.

The Spokane area is still considered to be one of the most productive and reformed mining districts in North America. The Coeur d’Alene district of Shoshone County (also known as Silver Valley) in northern Idaho has produced more silver than any other mining district in the United States, and is historically one of the top three silver districts in the world in total silver produced. (It competes with Potosi in Bolivia and Pachuca-Real del Monte in Mexico for the title of greatest silver district, each having produced more than a billion troy ounces of silver).

Logging, foresty, and agribusiness

The historic Schade Brewery

Just after the turn of the century mining declined and agriculture and logging replaced mining as the primary influence in the economic development of Spokane. The city also became noted for processing and distributing dairy and orchard products and for producing products milled from timber. By the early twentieth century Spokane was primarily a commercial center rather than an industrial center.

Today, a number of manufacturing companies have located in Spokane, drawn by the easy access to raw materials and cheap hydroelectric power. Finished wood products, metal refinery and fabrication, and food processing are among the leaders in manufacturing. The outlying areas are part of an abundant agricultural system, providing a large amount of the nation's apples, peas, hops, pears, asparagus, lentils, soft wheat, and sweet cherries. A number of wineries and breweries also operate in the Spokane area.

Economy diversification

Foresty and agribusiness continue to be important elements in the local economy, but Spokane's economy has diversified to encompass other industries, including the lucrative high-tech and biotech sectors. Economic development initiatives in Greater Spokane concentrate on six industries: manufacturing, aerospace, health sciences, information technology, clean technology, and digital media. Sizable companies with locations in the Spokane region include Agilent, BluRay Technologies, Cisco, F5 Networks, General Dynamics, Goodrich Corporation, Honeywell, Itron, Kaiser Aluminum, Telect, and Triumph Composite Systems. Spokane's downtown is the site of a 100-block wireless network—one of the largest of its kind in the country, which is seen as symbolic of its dedication to the development of technological opportunities and resources.

Regional services

Spokane serves as the hub for the service industries, and the wholesale and retail trade center of the 80,000 square miles (210,000 km²) Inland Northwest region. And in part because Spokane is the largest city between Seattle and Minneapolis, tourism is on the rise in the area. Spokane can be a "base camp" for activities such as river rafting, camping, and other activities in the region. As the metropolitan center of the Inland Northwest as well as southern British Columbia and Alberta, Spokane serves as a commercial, manufacturing, transportation, medical, shopping, and entertainment hub.

Head offices

See also: Category:Companies based in Spokane, Washington

Spokane and its' metropolitan area is the headquarters to some notable companies. Fortune 1000 company, Potlatch Corporation, which operates as a real estate investment trust (REIT) and owns and manages timberlands located in Arkansas, Idaho, Minnesota, and Oregon is headquartered in Spokane, as well as Signature Genomic Laboratories, a fast-growing company that is a leading innovator in diagnostic microarray testing. Computer equipment manufacturer, KeyTronic, auto manufacturer, Commuter Cars, and the owner and publisher of the Spokesman-Review, Cowles Publishing Company also have their head offices in Spokane.

Other company headquarters in the Spokane metropolitan area include Itron, Inc., the world’s leading provider of solid-state meters, in Liberty Lake, Washington, computer game developer, Cyan Worlds in Mead, Washington, and retailer, Mountain Gear in Spokane Valley, Washington.

Leading industries

From 2005 to 2007, the leading industries in Spokane for the employed population 16 years and older were educational services, and health care, and social assistance, 25 percent, and retail trade, 12 percent.Template:GR

The health care industry is a large and increasingly important industry in Spokane, the city provides specialized care to many patients from the surrounding Inland Northwest and as far north as the Canadian border. Other industries include construction and mining, manufacturing, transportation, communication and networking utilities, finance, insurance, real estate, and government. Furthermore, all branches of the U.S. armed forces are represented in Spokane County. The largest military facility in the area is Fairchild Air Force Base.

Economic development

The local and state government are undertaking steps to develop the economy of the Spokane region. At the local level there is The Spokane Area Economic Development Council, which works with businesses to locate and utilize local and state business incentives. The Spokane Neighborhood Economic Development Alliance offers two revolving loans to businesses and nonprofit organizations expanding or creating new jobs in Spokane. Also, advocating for regional economic growth in workforce, industry, manufacturing, public policy, and healthcare is Greater Spokane Incorporated, a joint organization consisting of the former Chamber of Commerce and the former Economic Development Council. At the state level, there are a wide variety of tax incentives exist for businesses operating, expanding, or relocating to Spokane. Industry and area-specific tax incentives are available, as well as loans, bonds, credits, and grants.

See Also

• Zip's Drive In