Economics of the Inland Northwest

History

For thousands of years, the falls of the Spokane River has been an ancient fishing and gathering grounds for local Native Americans known as the Spokanes, or “Children of the Sun.” James Glover passed through the area in 1871. He saw a small sawmill running at the head of the falls and recognized the economic potential of the site. In 1873 he and a partner bought the sawmill. Glover continued expanding, buying other property and eventually buying out his partner. In 1881, the city of Spokane Falls was officially founded, and the Great Northern Railroad was complete. Today, Glover is considered the founding father of the town that would become known as Spokane .When large deposits of silver were found in nearby north Idaho , Spokane became a booming mining town. By 1900, there were 15 millionaires living in Spokane . Transportation, banking, medical and service businesses grew up to support the mining, farming, and timber operations in the surrounding countryside. The railroads connected Spokane to ports on the Pacific Ocean .  As the population of the area grew, military and educational facilities expanded. Fairchild Air Force Base was founded in 1942. Eastern Washington University , Gonzaga University , and Whitworth College continued to serve the community. Spokane Falls Community College and Spokane Community College offered vocational and college preparatory courses. Spokane hit a high point in 1974 when they became the smallest city to host a World’s Fair. Expo ’74 touted an environmental theme. The city joined together to renovate the aging railyards downtown into fair grounds and an urban park along the banks of the Spokane River .In the late 1970s and early 1980s, the natural resource economy in the Northwest collapsed, leaving Spokane to lag behind Seattle and Portland as their high-technology economies took off.In the last few years, Spokane has experienced a renaissance. The beautiful 1890’s brick buildings downtown have become home to restaurants, boutiques and condominiums. People from expensive coastal markets have discovered Spokane ’s relatively affordable historic homes, shorter commuting times, and four-season climate with easy access to both the arts and the outdoors.

Major Employers

Today, employers are recognizing Spokane as a desirable, convenient, and affordable place to do business, with access to world trade and an educated workforce.Fairchild Air Force Base is the largest single employer in Spokane County . The base houses several functions including a aerial refueling wing and a survival training school.Health care is the largest single sector of the local economy, comprising approximately 20% of local business. Providence Healthcare, Empire Health Services, and the Shriners all operate hospitals in the area. In addition, medical school students from Washington , Wyoming , Alaska , Montana , and Idaho spend part of their training in Spokane .Education provides main jobs in Spokane . In addition to the public schools, Spokane also is home to Eastern Washington University , Gonzaga University , Whitworth College , the Community Colleges of Spokane, and a branch campus of Washington State University .From its early history in hydropower, Spokane is now a hub of the energy business. Avista Utilities is headquartered in Spokane , along with Itron, a global technology provider to utilities and large energy users. Cutting edge companies like Relion, a pioneer in fuel cell development, show that energy will remain a cornerstone of the local economy.

Current Conditions and Future Trends

Today, Spokane continues to enjoy moderate economic growth and real estate appreciation, even as other major markets on the West Coast feel the constraints of high housing prices and urban congestion. A major urban development project, Kendall Yards, promises to take Spokane to another stage of urban growth and livability. While wage growth trails that of Seattle or Portland , Spokane can look forward to several more years of economic growth and diversification.