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Idaho Business Report

A year of record-breaking exports in Idaho marks economic growth for the state’s manufacturing and technology companies.

By Pearl Gabel

Idaho Sets Export Record for 2006

 

Idaho exporters sold a record $3.72 billion in products to international customers last year, eclipsing the 2000 record of $3.57 billion. At the same time, Idaho doubled the amount it spent on trade to $600,000 for 2006. This enabled the state to turn an office in China into a full-time operation and establish part-time trade offices in Japan and India to augment the work of the state’s offices in Taiwan, South Korea, and Mexico. Customers in Asia were responsible for buying 64% of all the Idaho goods shipped overseas.

IDAHO
FAST FACTS

■ Population (2006): 1,466,465

■ Largest Cities (2005): Boise, 193,161; Nampa, 71,713; Pocatello, 53,372; Idaho Falls, 52,338; Meridian, 52,240

■ Targeted Industries: High-tech manufacturing, sporting equipment manufacturing, biomedical, food processing, electronics, finance, real estate, and insurance

■ Key Incentives: The Idaho Workforce Development Training Fund, Idaho Business Advantage, Community and Rural Development Block Grants, Employee Recruitment

“Exports are a major component of Idaho’s economic success,” says Commerce and Labor Director Roger B. Madsen. “With exports linked to one in every 10 private-sector jobs—jobs that pay above average wages—continuing to expand our export markets is crucial to our state’s economic growth.”

Meanwhile, the manufacturing companies responsible for this export growth are often benefiting from state incentives. Large companies that relocate their headquarters or invest in a major administrative expansion in Idaho qualify for the Idaho Corporate Advantage programs. The incentive includes a 6% tax credit up to $5 million in any one year and an enhanced new jobs tax credit of $1,500 to $3,000 per job created. A 10% property improvement tax credit of $500,000 is also available. The Idaho Business Advantage programs, which were amended in 2006, are available to any business making a $500,000 investment in a new plant and building facility in Idaho and hires at least 10 qualified employees. Through the state’s workforce programs, companies can receive up to $2,000 for new employee training, as well as access to business and technical assistance.

A partnership between the College of Southern Idaho and the Southern Idaho Economic Development Organization (SIEDO) has increased corporate expansion and relocation to the area, by working with companies that are interested in locating to South Central Idaho.

Since the partnership began in 2001, it has attracted 12 new companies to that region of Idaho that together represent more than $130 million in capital investments. The partnership helped 14 companies expand their operations and train additional employees in the past five years. By 2003, the region produced 71% of all new jobs in Idaho.

“All of our incentives are available up front,” says Jan Rogers, the director of SIEDO. “Economic development is very important to us.”

Idaho Exports by Commodity Group
(2005-2006)
Commodity 2005 2006 % Change
High-Tech $2,346,623,171 $2,690,806,777 14.7%
Food & Agriculture $333,311,750 $406,331,860 21.9%
Wood & Building Materials $173,928,359 $167,541,660 -3.7%
Other $142,657,871 $154,928,155 8.6%
Transportation Equipment $96,581,663 $110,263,113 14.2%
Raw Minerals $59,861,489 $79,911,234 33.5%
Fertilizers $65,157,689 $65,863,718 1.1%
Fabricated Metal Products $21,003,154 $25,843,597 23.0%
Hides & Leather Goods $21,143,482 $19,431,582 -8.1%
Source: U.S. Foreign Trade Statistics

Idaho is so Cheesy

Glanbia Food’s Twin Falls, ID processing plant—one of Idaho’s many cheese manufacturing plants—earned three gold and one silver medal in the 2006 World Championship Cheese Contest, the largest international cheese competition in the world held in Wisconsin in March of last year.

Glanbia is the largest cheese manufacturer in the Northwest. The company’s Twin Falls facility has more than 80 workers and produces over 50 thousand tons of cheese per year. They employ over 500 people in the Magic Valley area. Magic Valley is a region in South Central Idaho consisting of Blaine, Camas, Cassia, Gooding, Jerome, Lincoln, Minidoka, and Twin Falls counties.

Other area cheese and dairy processors that have successful operations in Southern Idaho include Jerome Cheese, Kraft, Gossner Foods, and WestFarm Foods.

Idaho Economic Climate Lures Corporations

• Hoku Materials, a division of Hawaiian-based Hoku Scientific, Inc., held a groundbreaking ceremony in March for a $260 million production plant in Pocatello, ID. The plant will manufacture 2,000 metric tons of polysilicon per year. Polysilicon is the key material used in the production of solar cells and integrated circuits. Hoku and the city of Pocatello signed a 99-year ground lease and are expected to complete construction in 2008. The facility will create over 200 jobs. Hoku’s client, Japan-based Sanyo Electric, has agreed to pay approximately $110 million upfront through prepayments for this product to assist in financing the project.

• Dutchmen Manufacturing, a division of Thor Industries, opened an 80,000-square-foot recreational vehicle manufacturing plant in Burley, ID last October. The state provided an $800,000 Idaho Workforce Development Training Grant to offset training costs for new employees.

 

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