Idaho

0

Among other things, Idaho offers a highly educated, steadily growing work force.

Companies Find Room to Grow in Idaho

By Georgia Smith

Like many businesses, Seastrom Manufacturing started out small. Founded in 1928, the company operated for 20 years from a Glendale garage. As it grew to become one of the nation’s leading suppliers of electronic and assembly hardware for aerospace and commercial manufacturers, the firm chose to remain in the Southern California city. But by 1994, Seastrom Manufacturing occupied more than 50,000 square feet and was still growing. With no building space available nearby, it became clear that the company could not expand unless it opted to make a move. So move it did. Today, the company is still thriving and occupies 100,000 square feet–with the ability to add 150,000 square feet on an additional 10 acres of land–in Twin Falls, Idaho.

Seastrom Manufacturing’s predicament is a not unique one. Rising prices and a shortage of available land for new construction in certain regions of California is leaving many business owners scrambling to find space they can afford. Increasingly, these businesses are beginning to look outside California for the solution. And, like Seastrom, many of them are looking to Idaho.

Idaho Today: Anything But Idle

With nearly 83,000 square miles of land and a population of slightly more than 1.2 million, Idaho has plenty of space to spare. Couple that with the fact that state and local government officials as well as private economic development groups are eager to help growing companies tap into all that Idaho has to offer, and you might say the state has set out a welcome mat for businesses looking to relocate or expand.

Idaho’s economy is more diverse than ever, with technology, manufacturing, construction, business services, retail trade, tourism, and health services all surging to all-time highs. In the past few years, the state has seen tremendous economic growth. As Governor Phil Batt recently noted, “Idaho is a great place to do business. Why? Our attractive business environment, comparatively low operating costs, and dedicated, productive workers all lead to exceptional bottom-line profits,” he said.

A closer examination of the factors mentioned by Batt reveals insight into exactly why companies are moving to Idaho. Low energy costs, low workers compensation rates, low taxes, and competitive labor costs make the state one of the most business-friendly in the country. In fact, in its relative business cost comparison, Regional Financial Associates ranked Idaho eighth best in the country and second best among the western states when it comes to the overall cost of doing business. Additionally, the Corporation for Enterprise Development ranked Idaho third best in long-term employment growth and third best for its tax and fiscal system. The state also has the twelfth lowest overall per capita tax burden in the country as well as the lowest per capita debt.

In addition to low business costs, Idaho also offers a highly educated, steadily growing workforce. The state ranks fourth in the nation for literacy and in the top 25% of the nation for its percentage of the adult population that has completed high school. The state’s schools and universities offer businesses many customized training programs designed to meet specific employers’ needs, and large and small businesses alike can receive assistance with worker training expenses through the Idaho Workforce Development Training Fund.

The state also offers members of its workforce with what many of today’s larger metro areas seem to lack: an opportunity for outstanding quality of life. With the nation’s economy booming, many companies are finding that attracting and retaining quality employees is an increasingly difficult task. Today’s employees aren’t just looking for good salaries, they want to live and raise their families in the best setting possible. Idaho’s clean air and water, low crime rate, natural beauty, and limitless opportunities for outdoor recreation make it difficult to resist–as does the fact that the state sees more than 230 days of sunshine a year.

Making the Decision

All of the factors mentioned above did not go unnoticed when Dennis Hicks considered relocating his company, Spur Products, several years ago. In fact, he and his three-person site selection committee developed an elaborate matrix to compare various cities throughout the western United States. Quality of life–along with access to an educated workforce and the availability and cost of real estate–was a primary factor. Hicks’ committee narrowed the list to eight, then two, cities, with Hicks making the final decision to move the company to Boise.

Spur Products, which provides products and services for attaching printers to computer networks, has now spent several years in Boise, and Hicks and his employees couldn’t be happier with the decision. In fact, 28 of approximately 35 employees chose to move from the company’s original location in El Segundo to Idaho.

One of the reasons Hicks said Spur’s employees enjoy living in Boise is that affordable housing is readily available. “In California, many employees had to drive long distances to work because that was where they could afford to live,” said Hicks. “Here in Boise, the same employees who had two-hour commutes now live close enough to ride their bikes to work.”

Similar factors also influenced the decision of Daryl Kraft, president and founder of Environment Control Building Maintenance Company, a janitorial service enterprise that was looking for a new home for its corporate headquarters back in 1993. For nearly 30 years, the firm had been doing business in Orange County, but Kraft had grown concerned about the rising cost of doing business in Southern California. He also had a strong desire to improve the quality of life for his family and his employees.

Because Environment Control was a well-established national franchising company with more than 60 business units in 23 states, moving the company headquarters was a relatively easy prospect. So in mid-1993, Kraft and his chief financial officer began evaluating cities across the western United States, with a focus on finding low business costs and a superb quality of life. Ultimately, they chose Coeur d’Alene, Idaho.

Five years later, Kraft said he believes they made the right decision. “The move has significantly reduced our operating costs while enhancing the lives of the employees and families who relocated with the company,” he explained. Kraft also gives high marks to Jobs Plus, the nonprofit economic development corporation that recruited the company to Coeur d’Alene and helped smooth its transition process.

For Work and Play

To those who live and work in Idaho, the state is truly unlike any other. Growing cities are complemented by thousands of acres of unspoiled wilderness. Low business costs and a low cost of living make the state financially attractive, and the family-oriented lifestyle is the envy of many who live in bigger cities. As Tom Arnold, director of the Idaho Department of Commerce, noted, “There aren’t many other places where you can go snow skiing in the morning, fly fishing in the afternoon, and then walk just a few blocks from the river to attend a concert or a play.” It’s no wonder so many companies are considering Idaho as the final destination for their expanding or relocating businesses.

[ital]Georgia Smith is the public information officer for the Idaho Department of Commerce. For information about business opportunities in the state, contact Randy Shroll, business development manager, at (208) 334-2470.[ital]

No posts to display