Posted: Nov 28, 2007  08:48

Ranked the 17th fastest growing of Idaho's 44 counties, Boundary County has so significantly diversified its economy from a timber-reliant industry that the number of employed residents has skyrocketed nearly 90 percent since 1976.

Though it hardly rivals the astonishing 200 percent rate of neighboring Bonner County, a regional labor economist says Idaho's northernmost county that once derived almost 35 percent of its total wages from logging and lumber manufacturing is posting strong numbers in its overall employment growth. Its average annual wage is now $27,214, an 18 percent hike from 2000.

"You have made great strides in branching out from an economy reliant on traditional mainstays of grain crops and forest products," Kathryn Tacke of Idaho Department of Labor told about 50 people at the Kootenai River Inn. "What has struck me is how well this community bounces back after major economic losses like mill closures, layoffs and the loss of 300 jobs when CEDU schools closed. Yet Boundary County has managed to keep its payroll jobs steady, which is pretty impressive. It shows the spirit of this community, that it knows how to dig in and make things work here."

What is also impressive has been construction since 2000, a figure that well-outpaces both Idaho and the U.S.

"There has been an incredibly strong surge in construction activity the last four to five years here," said Tacke. "Since the early 1990s, the county has also doubled employment in its small, non-woods manufacturing sector."

Though sparked by companies like Anheuser-Busch, nurseries, Christmas tree farms and the Kootenai Tribe of Idaho that jumpstarted job diversification, the county's manufacturing sector has dropped significantly in the last seven years. It posted a startling 27-percent decline since 2000 - a loss of 120 jobs - while Bonner County registered a 65-percent jump.

"While the decline in saw mill employment partially explains the decline, it seems like Boundary County always goes one step forward and one step back," said Tacke. "There is also not a large labor pool here for prospective manufacturing companies to draw from. Because of your remoteness from major airports and freeways that those companies rely on, it makes it difficult to recruit large manufacturers here."

If companies are hesitant about setting foot in Boundary County, tourists - especially Canadians - are anything but timid. The currency exchange rate is more favorable for Canadians than ever before, and substantial gains in the county's tourism sector have been impressive.

"It's definitely making a difference," said Tacke. "It also has some advantages for the lumber industry. Canadian lumber is more expensive than it was four years ago because of the current exchange rate."

However, Tacke warned that the lumber industry is still volatile and Boundary County is still very reliant upon it.

"Right now, lumber prices are low and that's a problem for mills facing rising costs and excess capacity of lumber stacked up in their yards," she added. "The next eight months could be a very tough period for the industry."

Although Tacke said an increasing number of economists are predicting a major recession within the next six months, her long-term vision for Boundary County - whose population has grown to 11,100, a 12 percent increase in seven years - is upbeat.

"All the groundwork and improvement have been laid out for this community's future," she said. The downtown revitalization - including the clock tower, a new archway and water feature - along with the Visitor Center, North Idaho College's expansion, the national attention of the Selkirk Loop and the completion of the underpass are impressive achievements. What you are doing is laying a foundation that expands the potential and makes Boundary County more attractive."