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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

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Page 1: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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, PhD8th Annual Idaho Planning Conference

Sandpoint, IdahoOctober 8, 2015

Page 2: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 3: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Bonner County, rural ID microcosm

• Lots of public lands

• Lots of natural resources and amenities

• Far from population centers

Page 4: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Three Wests

Page 5: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Three Wests: Economics

Page 6: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Three Wests: Demographics

Page 7: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Bonner County is isolated, but prospering

Page 8: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Elements of rural economic development

What we look for:

1. A diversified economy

2.

3.

4.

Page 9: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Elements of rural economic development

What we look for:

1. A diversified economy

2. Access to larger markets

3.

4.

Page 10: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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.

Page 11: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 12: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 13: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

What is behind this diverse economy?

Spoiler alert: it’s not (only) tourism

Page 14: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Change in compensation, 2001-2013

Page 15: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Focus on ManufacturingFruit and vegetable preserving and specialty Cement and concrete product mfg. Motor vehicle parts mfg.

Animal slaughtering and processing Cutlery 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 metals Household and institutional furniture mfg.

Textile furnishings mills Industrial machinery mfg. Office furniture and fixtures mfg.

Other textile product mills Commercial and service industry machinery Medical equipment and supplies mfg.

Cut and sew apparel mfg. HVAC and commercial refrigeration equipment Other miscellaneous mfg.

Sawmills and wood preservation Other 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 activities Electric lighting equipment mfg.

Page 16: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Advanced IndustriesBrookings 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.

Page 17: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Advanced Industries in Bonner County

In 2012, 7% of all establishments in the county were Advanced Industries, which would rank Bonner County 66th 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

Page 18: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

What role does tourism play?1

99

8

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

2,000

4,000

6,000

8,000

10,000

12,000

2,187

8,785

Travel & Tourism Non-Travel & Tourism

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

Page 19: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 20: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

How to overcome distance?

Page 21: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 22: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 23: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Some jobs lost, but most people stayed

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

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1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

5,000

10,000

15,000

20,000

25,000

30,000

22,425

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

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1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000 40,699

Population

Jobs

Page 24: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

How to measure quality of life?

• Mountains, lakes, and rivers

• Entrepreneurship, but that’s tricky

• Trails• Miles• Public investment• Private investment

Page 25: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Housing Affordability

Average monthly cost Housing Costs as a Percent of Household Income

Owner Renter Owner Renter

Bonner $1,334 $716 49.9% 45.7%

Ponderay $835 $677 50.0% 51.1%

Sandpoint $1,256 $704 49.1% 51.4%

Idaho $1,231 $728 34.4% 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.

Page 26: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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

Page 27: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

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 19th 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 County 9.3 21.1 14.7 6.4

Ponderay 7.9 21.5 20.2 1.3

Sandpoint 9.3 20.7 13.3 7.4

Idaho 11.2 25.1 17.2 7.8

Page 28: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

SummaryStrengths

• 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 regionWeaknesses

• 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

Page 29: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

What’s Happening Up Northwww.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!

Page 30: Bonner County: Portrait of a Resilient Place Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development

Tools to understand your community

Megan Lawson406-570-7475

[email protected]

www.headwaterseconomics.org

Economic Profile System: http://headwaterseconomics.org/tools/economic-profile-system

Three Wests: http://headwaterseconomics.org/dataviz/three-wests

West Wide Atlas: http://headwaterseconomics.org/dataviz/west-wide-atlas