Item: Valley fabricator plans move to Post Falls Burly Products is building a $1.5 million facility at Riverbend Commerce Park/David Cole, Journal of Business
More Info: Burly Products, a Spokane Valley metal fabricator and machinery maker, plans to move its operation to Post Falls by the end of the year, saying Idaho will provide it a more favorable business climate, the Idaho state Department of Commerce says on its Web site. Representatives at Burly Products couldn’t be reached for comment, but the Idaho state agency says the company is having a $1.5 million facility built for it in the Riverbend Commerce Park, in Post Falls.
Question: Does Idaho, indeed, have a better business climate than Washington?
intheknow on October 31 at 12:58 a.m.
Break it down even further - Post Falls has a better business climate than CDA.
This is a huge issue that this election should be about. If you look at Jobs Plus and hear Steve Griffiths talk about all the jobs that have come to Kootenai County, he says Post Falls City Council (leaders) are wonderful to work with and they are getting the good jobs. Good jobs = living wage jobs (not just the min. wage Walmart jobs).
His presentation to the Post Falls Chamber this summer was amazing when you look at all the jobs that Jobs Plus has brought into the county and the HUGE percentage of those jobs are in Post Falls.
What does Post Falls have that CDA doesn't have? A good Urban Renewal Agency (remember their URD gave back $2.2 Million?), a business friendly city government, and they don't cater mainly to the 10% of high rollers.
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hmoffsuite on October 31 at 10:25 a.m.
Absolutely Idaho has a better business climate than Washington. When Boeing moved its corporate headquarters out of Washington a few years ago, it was a wake up call for Washington. And, they didn't get it. I have had both Washington and Idaho Corporations and speak with experience. Washington is not friendly to business with their liberal policies and attitudes and it has proven to be detrimental.
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Bent on October 31 at 11:40 a.m.
Wait until the governor's Green House Gas initiative kicks in. A couple of years from now manufacturers will be flocking across the stateline…
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HonestGeorge on October 31 at 1:24 p.m.
Yes, a much better business climate. But if Valley Fabricator wants to hit a real home run then they should consider Lewiston - where the actual Climate is an improvement!!
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lewis on October 31 at 3:02 p.m.
anyone in business knows Washington does not want them. and Washington state does a good job getting that point across. it amazes me all the businesses that open in Washington must be first timers.
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hmoffsuite on October 31 at 3:27 p.m.
There are many, many reasons why one would not want to operate a business in Washington. The obvious, of course, are their pollution standards, B & O taxes, State Workmans comp and on and on. One hidden item was enough to cause Tom Stewart (Food Servies of America) to move his corporate offices from Seattle to Scottsdale. Estate taxes in Washington. If you build a nice successful business and happen to die, Washington will do all they can to make sure your children and grandchildren will not be able to carry on with the business. (happens a lot to farmers and ranchers as well)
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Kage_Mann on October 31 at 3:44 p.m.
“I have had both Washington and Idaho Corporations and speak with experience”.hmoffsuite on October 31 at 10:25 a.m.
HMO, how many businesses do you own? I'd almost bet that anything Duane does business wise, your right there ready to invest? ;-)
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hmoffsuite on October 31 at 3:48 p.m.
Kage >> ” I'd almost bet that anything Duane does business wise, your right there ready to invest? ;-)”
Duane doesn't like partners. I would likely invest in anything he does, however, as his track record and business acumen are as good as they can get. He is one very sharp businessman, Kage.
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sue on October 31 at 4:37 p.m.
from hmoff –(happens a lot to farmers and ranchers as well)
How many family farmers and ranchers lose the land due to estate taxes? Seriously, a number since you stress a lot. That's the hype we always hear about with the 'death tax”, yet it usually affects agribusiness type operations that have avoided taxes through loopholes, or been the recipient of farm subsidies. The tax doesn't apply to the first $2mil, and after that :The tax rate is a progressive one that ranges from 10% for taxable estates valued up to $1,000,000 and maxes out at 19%, according to the about.com website. As long as your wealthy friend had a choice, Scottsdale is pretty nice, but I doubt his kids would've lost the business over it.
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hmoffsuite on October 31 at 4:54 p.m.
Sue. Estate taxes are just a part of the problem. The Feds get theirs right off the top on a family death and often, the heirs can't come up with the tax without selling the asset. Unless the family has done some real serious estate planning, it is a big problem.
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Zelda Krup on October 31 at 5:06 p.m.
It depends on the quality and type of jobs and who you're competing against in the labor force. PF and CDA probably are more business-friendly if most of the workforce you seek is direct labor with basic skills and just enough education.
Yes, Boeing is expanding in S. Carolina to get a low-wage workforce and no union. However, the jobs that pay the highest at Boeing (and other big companies) are going to have salaries that are determined at a nationally competitive level.
So, skilled/semi-skilled jobs have wages that get calculated at the local level while expert/professional jobs have salaries based on what other companies are paying across the entire country. The higher the proportion of your region's workforce is composed of direct labor employees, the lower the standard of living.
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spokelooneh on October 31 at 9:32 p.m.
I love all this “man on the street” speculation that Idaho has a better business climate than Washington. That's true in a narrow sense, as Zelda mentioned. If your company provides lots of low paying, low skilled jobs, then yes, Idaho is somewhat more favorable, especially because of WA's higher minimum wage.
Companies that have more educated and higher skilled employees prefer the business climate in WA, as WA state has comparatively more of those folks.
Analysis by numerous organizations rate WA state's business superior to Idaho, here's one from the Tax Foundation.
Washington State is in the top ten (#9) of states most friendly to business. Idaho is #18.
http://www.taxfoundation.org/files/bp…
Eastern WA and N. Idaho are similar in their lack of highly educated, highly skilled workers, compared to the states' bigger population centers, Seattle and Boise.
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lewis on November 01 at 9:23 a.m.
spokeloo talk to any small business owner in Washington and ask them if they think Washington is favorable to small business. I don't think they will give Washington a 8 in a top ten best. more like 113th.
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spokelooneh on November 01 at 9:52 a.m.
“spokeloo talk to any small business owner in Washington and ask them if they think Washington is favorable to small business.”
-lewis
Again with the meaningless anecdotal supposition.
Let's look at real data.
“The Small Business and Entrepreneurship Council's Small Business Survival Index 2008 is based on the idea that “a state's economy and competitiveness benefit most from what government does not do,” says the study's main author, SBEC economist Raymond Keating. The index it looks at 34 costs on investment and business that are imposed by government directly—such as taxes and regulations—or indirectly—such as a failure to control crime. These 34 measurements are tallied together into one overall score for each state, determining its overall ranking. A lower number suggests a lighter government burden on the business people in that state.”
Washington State is ranked #5 in the nation.
Idaho is ranked # 35.
http://www.sbecouncil.org/uploads/sbs…
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hmoffsuite on November 01 at 10:25 a.m.
Spoke >> “Let's look at real data.”
There are many viewpoints, studies and opinions on this ranking of the States business. Fwiw, here is another credible source that has Idaho at #16 and Washington at #40. If you think our opinions are “meaningless anecdotal supposition” let me ask. Have you ever operated a business in Idaho or Washington and been able to draw your own conclusions? Personal experience is hardly anecdotal supposition. Here is the study I mentioned above.
http://www.chiefexecutive.net/media/u…
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spokelooneh on November 01 at 10:56 a.m.
HMO, Chief Executive's methodology is inferior to the two comprehensive sources I referenced.
BTW, one of the datapoints that Chief Executive has is “initial claimants”. I can find nothing that describes what that means, do you know? Sounds like it could be Unemployment claimants, however they also use unemployment rate as a datapoint.
Lewis was speculating on small business “friendliness” which is exactly the type of analysis that I cited. Small business owners and operators are indeed CEOs, but I doubt many call themselves such, they likely makeup a relatively small percentage of CEO magazine's readers.
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spokelooneh on November 01 at 11:53 a.m.
Well for some reason the link to the comparison report doesn't work, you can get there from here:
“The “Small Business Survival Index” serves as the most comprehensive measure of the states in terms of which ones offer the most conducive environment for small businesses, and those that make it more difficult for entrepreneurs from a government-cost perspective. The factors included in the Index - taxes, various regulatory costs, government spending, property rights, health care and energy costs, and much more - matter a great deal to the competitiveness of each state and to the well being of small business.”
Washington ranks #5, Idaho #35.
http://www.sbecouncil.org/news/displa…
From the same organization, specifically about state tax policy:
“Today, the Small Business & Entrepreneurship Council (SBE Council) published the “Business Tax Index 2009: Best to Worst State Tax Systems for Entrepreneurship and Small Business,” which ranks the 50 states and District of Columbia according to the costs of their tax systems for entrepreneurship and small business.
…
SBE Council's “Business Tax Index 2009” pulls together 16 different tax measures, and combines those into one tax score that allows the 50 states and District of Columbia to be compared. Among the taxes included are income, property, death/inheritance, unemployment, and various consumption-based taxes, including state gas and diesel levies.”
http://www.sbecouncil.org/businesstax…
Washington ranks 4th BEST,
Idaho, 11th WORST business tax system.
I work for a regional company that has retail operations in eastern Washington, and Idaho (northern and southern). The business managers/owners regardless of location do not have the business tax system as a major concern. Small Business Survival in these hard times is high but not #1 on their list. Several owners have been forced out of business, but others have stepped in and operations have continued under new ownership.
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