Spokane7
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August 29, 2010 in Business
Apple store may say as much about Spokane as firm’s success
Adam Norwood of SignSouth installs a temporary Apple logo on the exterior of the former Eddie Bauer store at River Park Square on Aug. 19. It was the first public acknowledgment by the company that an Apple Store will open soon in Spokane.
(Full-size photo)
In 2004 the company that owns River Park Square contacted Apple Inc. and asked the maker of Mac computers and iPods to open a new store in the downtown Spokane mall.
The tech company replied with a curt “No, thanks.” Its Cupertino, Calif., retail managers never gave a reason for the rebuff, said Robert Smith, a spokesperson for River Park Square, owned by Cowles Co., which also owns The Spokesman-Review.
Six years later, trendy and cash-flush Apple has decided now is the perfect time to build a retail store in Spokane’s downtown. Taking over the two-story space last used by Eddie Bauer near Main and Wall streets, this will be Apple’s first Inland Northwest store.
Spokane retailers say Apple’s arrival is big news. But they’re also asking: What changed since 2004?
Did Spokane develop more retail credibility? Or did Apple change its rules for where it builds stores?
According to local managers and analysts, the answer is both. Spokane’s downtown has proved itself a solid and robust retail destination, say area business managers.
Plus, Apple is now building more stores across the country to capitalize on its brand’s skyrocketing popularity. Thanks to the success of products like the iPad and the iPhone, cities like Spokane are big enough to help the company keep growing, said Apple analyst Charles Wolf, based in New York with Needham & Co.
An Apple spokeswoman did not provide answers to questions about its selection of Spokane. Even after an Apple logo was painted last week on the construction site, spokeswoman Amy Barney said no announcement has been made about the Spokane store.
City officials have said the store is likely to open in September or October.
Apple has roughly 300 stores worldwide, with about 70 outside the U.S.
Retail stores account for about 16 percent of Apple’s revenue. Back in May, Apple overtook Microsoft in overall stock market value, becoming the world’s most valuable tech company.
When picking new stores, Apple looks less at total population than two age groups of consumers, said Trip Chowdry, managing director of Global Equities Research and an Apple analyst, based in San Francisco.
“Apple looks at the markets it goes into and especially wants two characteristics,” Chowdry said. One is college-age computer and gadget-users, because those people become advocates for the brand, he said.
Spokane qualifies on that account, having roughly 21,000 full-time college students within 20 miles of downtown. “For Apple, Spokane is then a college town,” he said.
The other target group that Spokane provides is older, graying customers, Chowdry said. Those are retired or near-retirement buyers who respond to ads that describe Apple products as simpler to use, safer than PCs and more reliable, Chowdry said.
Retail stores play a large role in reaching that older demographic, he added.
Unlike other large consumer electronics retailers, Apple’s stores are more than places to examine products. “It’s about hands-on training and very strong customer support,” Chowdry said.
That emphasis on customer satisfaction is a major strength Apple has over Microsoft, he said. Microsoft’s products are sold in stores with sales teams who don’t have the depth of knowledge about software and hardware that Apple’s store staffs do, Chowdry said.
He also said Apple only builds new stores in neighborhoods or malls that are visually and aesthetically pleasing. “They will only go where it looks like a vibrant location,” he said. “Downtown Spokane,” he added, “seems a very favorable, ideal location.”
Added Chowdry: “You need to remember, Apple computers are about fashion. Apple doesn’t sell technology so much as an experience.”
Its stores maintain that same feeling: sleek, modern and uncluttered in layout, with plenty of room to move around in, he said.
Apple’s flagship stores are monuments to glass and stainless steel. These high-profile spaces feature all-glass walls and stainless steel facades. Many of its smaller stores use backlit wall graphics, stone floors and all-wood product tables and shelves.
Its Fifth Avenue store in Manhattan has attracted scads of publicity, resembling an all-glass structure in the shape of a cube.
Wolf, who tracks Apple and other consumer electronics firms, suggested Apple’s foray into Spokane is more about the tech giant expanding into steady retail markets, especially as the company continues taking customers away from Microsoft.
“I suspect Apple is anxious to locate in Spokane because it has no stores between Portland and Seattle and Salt Lake City,” he said. “And Spokane easily has a large enough population to support a store.
“So it’s probably adding stores in locations that previously did not appear attractive,” Wolf said.
The Spokane Apple store will be its sixth in Washington. It has no stores in Idaho, Montana or Wyoming.
Spokane-area retailers agree that the addition of Apple is a major win for the downtown core.
“Apple is a fantastic brand and we’re very excited they’re moving into downtown,” said Murray Huppin, president of Huppin’s Hi-Fi, Photo and Video, which has a retail electronics store several blocks away from the Apple location.
“Wherever they come in, they attract visitors,” Huppin noted.
The one Spokane retailer who probably has the most to lose is J.D. Strong, owner of Strong Solutions, who opened a full-service Apple retail shop on East Sprague in summer 2009.
He won’t be able to compete on cost with the downtown store, since Apple sets the prices for nearly all its products. But Strong said he expects the new store will have benefits down the line. Over time the appeal of Apple products will increase, and Strong said he believes his store will do just fine.
“Spokane has that desire for quality, personal service, and we provide that,” he said, noting that Strong Technologies does Apple repairs in-store, while Apple’s own stores ship a large number of repair jobs to a central hub.
“We also provide on-site repairs,” along with consulting services for companies that need help in managing a group of new computers in a small or midsized business, he said.
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spokanecommunistparty on August 29 at 1:54 a.m.
Do ipads come with wings? http://www.ubuntu.com/
force_vector on August 29 at 8:30 a.m.
An Apple store in Spokane only shows that Apple has lowered whatever standards were applied to their initial Site location scheme. I believe Apple will have a very hard time in Spokane with a big presence. They would be much better off having a cooperative agreement with college book stores than a full-size retail store. That said, the description in this article of Spokane as a “college town” is laughable. Spokane is anything but. Why is this place so worried about things that don’t matter? This place is like an insecure high school freshman that would rather pretend to be someone he’s not, and hope others believe it. Perhaps it’s because Seattle looms so large from the west side of the state? In any case, Spokane has an identity issue that Apple can’t fix. When they leave for greener pastures, don’t be suprised. A bunch of drunk homeless people and large groups of kids loitering about doesn’t equate to a “vibrant” downtown. The only thing vibrant about downtown Spokane is the under carriage of my car as I drive through the contruction zones left in disrepair all about town.
de3 on August 29 at 9:32 a.m.
It took 9 years since the opening of the first Apple store until Spokane was considered worthy of an Apple store.
Your story title “Apple store may say as much about Spokane as firm’s success” does indeed say much about Spokane, but probably not in the way you intended it.
What is says is that Spokane lags years behind the mainstream metro cities that Spokane wishes to emulate.
That out of the way, it will be nice to join the mainstream, finally.
509ifyourlucky on August 29 at 9:37 a.m.
Spokane is still a dump in my book, The city that is NOT business or for that matter NOT people friendly.
Thoreau on August 29 at 10:15 a.m.
Bring a Trader Joe’s to Spokane!
fbhkymom on August 29 at 10:16 a.m.
Force, de3, and 509 - Get the hell out!! You must be some ungrateful, uneducated, fast-food career mongers who have no appreciation for all that this great city has to offer. Go find somewhere else that you like better. And by the way, people a LOT smarter than you decided that Spokane IS an ideal place for an Apple store. Deal with that. So sad that your eyes can only see negative. I could spend hours, no, days pointing out all of the beauty and joy that this area brings to many. And Apple has its own standards of what a college town is. I think Gonzaga, Whitworth, EWU, SCC, SFCC, WSU, and NIC campuses in the immediate area probably qualify!
MAnthony on August 29 at 10:25 a.m.
It’s great to see a new business open a store in downtown Spokane, but Spokane isn’t receiving any special consideration from Apple. This store will be exactly the same as Taipei’s (where I live), where there are Apple Stores in every district of the city (as there are now in cities all over the world). And they will indeed attract college students and teenagers, as they do all over Taipei, but I wonder how significant a spending demographic that is for downtown Spokane.
With the loss of businesses like Eddie Bauer, and the fantastic Sawtooth Grill, there are now two fewer reasons for me not to go downtown. While I think there are still a few interesting places, I’m always amazed at how empty the streets and shops are every time I’m in the city.
I would also be wary of adding another tech-related store to the existing ones (Verizon, AT&T). Because they are so specialized and expensive, they create retail dead zones, in my opinion. It’s unlikely many people will be thinking, “Let’s go downtown, buy a $300 I-phone, buy some new shoes, and have lunch.” Surely there must be other retail and entertainment solutions to make downtown more vibrant and attractive.
These dead zones are why many large cities like Taipei and Tokyo have created special districts for technology retail business, far away from malls and shopping districts that feature restaurants, fashion and luxury retail, and entertainment.
opiemuyo on August 29 at 10:36 a.m.
Better than Disneyland! (drool)
force_vector on August 29 at 11:17 a.m.
fbhkymom- freak out much? Your uninformed generalizations of what I must be sound more like unintended self reflection on your part. But please, do tell what the “many things” Spokane has to offer are. I’m not saying I don’t believe this place brings “joy” to some, I just can’t fathom what specific things induce such euphoria for a place that clearly has been in decline for decades. Spokane had an opportunity to establish itself as a center for more than regional medical care and wal mart employees/shoppers, but that opportunity passed. Furthermore, proximity alone doesn’t establish a place as a college town. If that were true, then any town with a population greater than 100k would qualify. Rather, a college town is one who gleans its identity from a college, and in large part is economically dependant on that college. You listed 3 community colleges, and 2 universities that are hardly local to support your argument which is laughable. I will grant you that Gonzaga plays an important role in Spokane, but Spokane’s fortunes are not tied to Gonzaga’s, and even less so for EWU.
flutieflakes on August 29 at 1:25 p.m.
From the article:
“The other target group that Spokane provides is older, graying customers, Chowdry said. Those are retired or near-retirement buyers who respond to ads that describe Apple products as simpler to use, safer than PCs and more reliable, Chowdry said.”
I think this is the real reason for bringing an Apple store to Spokane. There’s no way GU, Eastern, SCC and the Riverpoint campuses can support an Apple store in RPS. Spokane has a huge population of older residents, however, so that could make it work.
de3 on August 29 at 1:34 p.m.
fbhkymom - I only note the facts. It took 9 years before we qualified, which is about how long I’ve had Apple computers as well. Why was Spokane 9 years down the list?
I concluded with “That out of the way, it will be nice to join the mainstream, finally.” That would be good news, right?
My comments did not warrant your emotional and rude outburst, an outburst that makes Spokane sound like it has hostile, non-friendly people, where dissenting views will not be tolerated. Is that what you intended?
spokanecommunistparty on August 29 at 2:49 p.m.
Windows crashes all the time and gets viruses, Apple is merely expensive toys for the kiddies, Ubuntu is free and doesn’t get viruses. The link is also on my first comment, I stopped using xp pro after I found out about this and I haven’t looked back since. Long story short, Modern Linux is free and noob friendly. http://www.ubuntu.com/
flutieflakes on August 29 at 3:25 p.m.
“Why was Spokane 9 years down the list?”
Because it is Spokane. On the bright side, if/when the world ends, Spokane should theoretically exist for another 10-15 years while it catches up with everyone else…
force_vector on August 29 at 3:45 p.m.
Haha! Nice one flutieflkes.
misjustice on August 29 at 3:52 p.m.
Spokane seems to be the red-haired step child of Washington state. Why is that? We have the second largest population count and many colleges in our area.
What is it about Spokane that keeps us tagged as second [ or third or forth ] best? Could it be attitudes like flakymom; love it or leave it?
Instead of recognizing the flaws that exist in our city and working to eradicate those we scream at those that would highlight the flaws; Spokane, love it or leave it! That type of ideology defies change.
I’m not ‘from’ here, so I really don’t get it…is it because Spokane is viewed as a cow town, as a wannabe, as a place that is behind the times instead of an innovator?
It will be interesting to see how long the Apple store manages to stay open in a bucolic town with the mantra of love it or leave it. I’ll bet, within two years, they leave it…
force_vector on August 29 at 5:18 p.m.
Misjustice- in my opinion, many of Spokane’s problem trace back to the youth raised here. Those high school students who show promise, and would be capable of turning this place around, apply to U Dub, or Western, or Seattle Pacific U, and the other highly competitve higher learning institutions on the other side of the state. Those who are accepted will likely will not return because there are simply not enough high paying jobs here to support a return. Those who either didn’t get accepted to one of the competitive colleges, or never tried, attend Eastern or WSU and return to Spokane with the same sort of mentality their parents have that made Spokane a dump to begin with. Obviously this generalization does not apply to all, but this goofy mentality here of scream limited government with your hand out just doesn’t equate to prosperity, and is a learned trait. Prosperity breeds further prosperity, and since Spokane has been in the dumps for so long, I don’t think enough people here even know what it is to begin creating it. Spokane needs infrastructure to attract high tech corporations, an educated work force to staff them, and a government capable of making smart decisions for the economic health of the region. Unfortunately, Spokane fails on all these requirements, and as such, plays second fiddle to cities like Seattle, Redmond, Bellevue, Issaquah, and all the other Washington cities that got it right when they had the chance. It would take Spokane an entire generation to catch up. It is possible though. Boise was once very similar to Spokane, but I visited recently and couldn’t believe the transformation it had made from hill billy old folks to energetic, educated, and youthful citizens and infrastructure. While Boise will never be a Seattle or Denver, Spokane might do well to look at the things they have done right if they want to forge a path ahead to prosperity. Emulating Seattle is a waste of time, yet it seems all Spokane is capable of. It’s a shame.
mikewsu on August 29 at 5:39 p.m.
force_vector: You are living in a cave. And I myself, among several of my “Gen-Y” peers that grew up in Spokane have proved every ignorant statement in your gibberish message incorrect.
Apple store will do just fine in Spokane. Market research has proven that it will be a viable and profitable storefront. Apple isn’t #1 in mobile devices, recently surpassing Microsoft as the world’s #1 tech company (by market share), #1 music retailer in the world, etc, etc — by ‘guessing’ or following the norm. (A theme here with the #1’s?)
Lastly, most of you posting wacky comments to this thread need not worry. You are not Apple’s target demographic.
misjustice on August 29 at 6:06 p.m.
@force; thanks for your explanation. It’s often difficult for an “outsider’ to comprehend why Spokane seems stuck…it has the population and college campuses that other cities do not have [that have managed to ‘transform’ or transcend] and I have not been able to figure out why the city seems ‘stuck’. Just my opinion/observation…anyway, thanks for your input.
force_vector on August 29 at 6:22 p.m.
Yeah, I guess not. The target demographic is clearly fan boy’s in denial. Congratulations. Frequent the store often, and prove yourself correct, much like your first paragraph proved me correct.
InlandNW on August 29 at 7:07 p.m.
Apple will probably do okay with their store. At least better than they did with their Apple Newton (only older people will get that).
But many of force_vector’s points are valid.
Doing a little digging around, the Spokane Airport had more air passengers in 1996 than it will in 2010. Boise’s airport has continued at a fairly steady growth in passengers since then - but not so much in Spokane.
Why is Spokane’s air traffic growth negative since 1996 while Boise is growing? That sort of suggests Boise is pulling ahead while Spokane is in a bit of reverse gear.
fbhkymom on August 30 at 7:19 a.m.
All I’m saying to you people is: why would you live in a city that you so obviously hate? Change what you don’t like or shut up and leave! I am part of what makes Spokane great because I do what I can to participate in making it great and change things that I find objectionable! What do you do? I’m just SO tired of coming to these comments and seeing people like you just go on and on about how bad Spokane is. There are a plethora of cities in this country. I’m sure you can find one that suits you better.
fbhkymom on August 30 at 7:30 a.m.
mikewsu - You steal my heart!
Here’s some interesting facts: Spokane County supports a Mercedes dealership, a Lexus dealership, has million $ properties with mansions, Spokane Symphony, Opera, fine jewelry stores, high-end fine furniture stores, gourmet restaurants, etc. Ya think we can support a lil’ ol’ Apple store? Well golly gee, we’ll sure give it a try!
Regardless of what you say about my attitude, I think the majority of people in this county, no, entire country, have a “love it or leave it” mentality. It’s just common sense.
sustainable on August 30 at 7:44 a.m.
Force Vector and InlandNW,
It seems as though both of you have missed a few points in your attempt to show that Spokane is in a long term decline while other cities are surpassing it.
Firstly, regarding college students: You may be correct in stating that Spokane is not a “college town” in the same way that Pullman, Moscow or Bellingham are “college towns.” Although you are incorrect to think that college students are a small part of our population. If you were to look into the data that GSI put out you would see that Spokane County confers a higher per capita amount of post-secondary (college) degrees than Seattle, Portland or Boise. In fact we had twice as many as Seattle and almost three times as many as Portland or Boise in 2008 which is the most recent year of data. (http://www.greaterspokane.org/images/stories/PDFs/Economic_Development/vitals2010.pdf).
It is true that a lot of the graduating students leave Spokane, but again, if you look at the numbers you will see that it because many of them come to universities in Spokane from out of the area and go back home when they are finished, which is typical of many cities with large college populations as there are not always enough entry level jobs to accomodate large groups of graduates.
Regarding quality of the universities - it is laughable to put Boise in the same category of education as Spokane. Boise State was only a community college up until a few decades ago and that is the only public college in Ada or Canyon Counties.
Secondly, regarding air travel. This was a deliberately misleading. While 2009 was a (slightly) lower year than 1996 in air travel you are ignoring the larger trends. What was not mentioned was that 2007 and 2008 were record years for passengers in Spokane and that passenger totals were down nationwide as the recession hurt most airports. Overall, GEG is experiencing a healthy level of growth. (http://www.spokaneairports.net/Pass_stats/2009data.pdf)
By the way, if you go to Boise’s aiport site you would also see that not only does Boise have lower passenger totals than Spokane, it also has had a larger decline in total passenger totals over the last few years than has Spokane. I don’t say this to disparriage Boise, but the point was brought up and was inaccurate. Rather than tearing down Spokane in comparison to other cities of the region, why don’t we look at some of the strengths that each bring in the midst of a devastating recession that’s affecting all of us?
As a matter of courtesy: if you are going to refer to statistics please reference your material or at least give a basic attempt at being fair in your use of the data.
force_vector on August 30 at 8:48 a.m.
Sustainable- First, I wasn’t tearing down Spokane in comparison of other cities. I was trying to give examples of other cities who have transformed themselves communities that have an atmosphere of prosperity and creativity, not urban blight and old, unsightly infrastructure from a heyday of 50+ years ago.
Second, I made no mention of the quality of higher learning provided by Boise area colleges. Rather, I was talking about the youthfulness of Boise, with it’s population and infrastructure,as a place that’s clearly interested in retaining its college grads, and attracting others from around the region/country.
Third, cities that are growing in prosperity don’t lose most of their graduates upon finishing their program. Do you think Seattle loses most of its computer science grads to other areas (excluding silicon valley)? Do you think the aeronautical engineering grads pick up in mass and look for greener pastures? Perhaps the hoards of MBA holders do (likely the title of those post secondary degree holders in Spokane), but those can be purchased on-line for bottom dollar these days and simply don’t lead to communal transformation or prosperity. They don’t build prosperity for a community at large, they only prosper the holder (if he/she is lucky). Seattle built itself on tech giants and technical manufacturing (Boeing). Boise, similarly, moved towards a tech heavy work force. What kind of work force is Spokane going after or attracting? We’ve already discussed medical, so think beyond the obvious. I’m serious, what is Spokane known for as a community in terms of being a magnet for like minded individuals to flourish at work, and recreate when not at work?
InlandNW on August 30 at 9:23 a.m.
The raw data is on the SIA web site at
http://www.spokaneairports.net/Pass_stats/historic.pdf
Total passengers: 2009 3,055,081
(Source: http://www.spokaneairports.net/Pass_stats/12-09pr.pdf)
Total passengers: 1996 = 3,258,762
(Source: http://www.spokaneairports.net/Pass_stats/historic.pdf)
The FACTS on SIAs own web site - SIA handled more passengers in 1996 than in 2009.
2010 can only be estimated at this point and is on track to be less than 1996.
Here is a chart showing the trends:
http://inlandnw.files.wordpress.com/2010/07/spokanedata_passengersvspop.jpg
I never said “recent years”. I said 2010 (and left out that 2010 is an estimate - but for 2009 the data supports the comment and 2010 traffic totals imply that 2010 will also be less than 1996.)
Please look at the actual data. Airport traffic, and presumably, Spokane’s economy has stalled.
I am only reporting the actual data and not cherry picking the start to show a trend, as you did. You owe an apology.
I am sorry that the actual data is not positive. I can’t help that. But if we engage in wishful thinking, we won’t ever make a positive change.
spokacoug on August 30 at 10:40 a.m.
As a former resident (25yrs) and now living on the westside I can tell you what hurts Spokane economically is not the people or politics its the overall lack of business diversity. This is a very important key in the overall economic health of a region.
Spokane is very blue collar and thats fine so is the majority of America and its workforce. But what it lacks, is it doesn’t have enough large diverse companies that can keep the economy a float when one area is dragged down (ie manufacturing). Which is the bread a butter of the Spokane region besides healthcare.
Other cities have large tech, biotech, and research institutions that spring up more smaller companies that help diversify the region. The midwest is an example of depending on one thing (manufacturing) to drive the economic engine and once the auto busy went down so did the entire region and now there are huge unemployment and a workforce that can’t sustain an area.
Spokane is similar in that its workforce is primarily bluecollar and not diverse. It can’t expect the healthcare field to hold up the region economiclly until the next upswing in manufacturing. Boise has been talked about in previous posts and its true it is a hub for tech companies, why because Micron and HP were there. From that you get innovative minds that come up with other companies like Balihoo, Edge Tech and Logical Solutions among others. Next thing you know is great minds and innovations bring together more great minds and innovations and now you have a thriving tech center and another engine to drive the regions economy.
Spokane will never be major business city like Seattle do to the logistics of the area. But it can replicate Boise. Spokane has everything already built in place: universities and educated workforce, plenty of land that can be developed, a strong healthcare industry, vast amounts of outdoor activites, family friendly, all four seasons, a major highway and an international airport, and the cost of living compared to Seattle is very, very affordable.
I’m not sure if Spokane is willing to grow up or just not ready to change the culture. Or maybe its the old money in the city not ready to let go and give persons a chance for new money to come in.
force_vector on August 30 at 11:06 a.m.
Spokacoug- very well reasoned contribution to the discussion. Thank you.
misjustice on August 30 at 11:51 a.m.
Spokacoug; Your post helps answer, in part, my question of Spokane as the state’s red-haired step child; good post.
InlandNW on August 30 at 2:22 p.m.
Thank you, Spokacoug. I think your last paragraph hints at what ever the root problem is: there is definitely a culture here that enjoys the status quo. As illustrated in the comments, raising a dissenting perspective, backed by data, is shot down as nay saying. Some professors at EWU looked at the local culture issue and found that any disagreement on economic issues here is viewed as “disruptive” - the message is - go with the status quo. (Source: web.ewu.edu/groups/institutepubpol/Monograph7.pdf)
But we cannot make improvements unless we acknowledge reality and then diagnose the root causes - there is much wishful thinking in Spokane that these things are not true.
1 in 3 kids drop out of high school (Source: www.spokesman.com/stories/2010/feb/21/levy-would-finance-dropout-rate-battle/)
The number of high school seniors taking the SAT has fallen in recent years to 38%, compared to a state average of 53%.
(Source: www.communityindicators.ewu.edu/graph.cfm?id=205)
Manufacturing jobs have dropped to 14,700 according to the July 2010 Washington State Current Economic Indicators report. This is down from about 22,000 in 2000 and 19,360 in 1990. (Source: workforceexplorer.com/ and a WSU 2003 manufacturing report - sorry, my link for that is broken).
The Milken Institute ranks Spokane almost last as a place to start a technology business (Source: www.milkeninstitute.org/nahightech/nahightech.taf?rankyear=2007&type=metro&ID=1333 - you may have to select Spokane from the drop down list).
Spokane’s economy, for 15 years, is acknowledged in numerous area economic development studies, to be overly reliant on government/education and health care. These studies include the 1995 PACE study, the 2003 Innovation Economy report, a 2004 Spokane Assessment report and many more. Most of these reports were produced by government agencies or under contract to government agencies. They all mention problems like chronic low wages in the area. This is well documented. One study even humorously notes that we don’t need yet another study that draws the same conclusions and makes the same recommendations that are filed away and ignored!
According to a 2003 report, about one-third of Spokane’s GDP is due to health care. (Source: www.awb.org/articles/magazine-julaug2003/_sweet_home_spokane_a_regional_strategy_for_economic.htm)
Spokacoug’s comments on lack of a truly diversified economy may also be on the mark. We like to think that having lots of little businesses is diversified - but pair those off against the giant government/education and health care sectors. We do not have comparable “private sector” industries in Spokane today - mostly lots of little businesses and a few mid-sized companies (good ones too). The economy is lopsided with between 35% and 40% in the giant gov/edu/health care category.
In recent years, a number of large employers have shut down or moved out including General Dynamics/Itronix, Agilent (shutting down in October), Columbia Lighting, United Coatings, Columbia Paint and Coatings, and others. Comparable employers have not re-emerged in their absence.
Those in the security of a government/education or health care job - which on average pay salaries on par with Seattle - I looked it up - likely see a rosy picture of paradise in Spokane.
Those not working in those sectors are faced with the chronic lower wages described in the economic reports. This group will have a different perspective on Spokane.
In Spokane, a mere mention of the issues is immediately shot down with statements that we should “Get the hell out!” (see above comments).
That closed minded attitude may also be a clue as to why Spokane’s economy has stalled for some time. It is definitely not achieving what it ought to be capable of achieving. Those with ambitions will leave. But losing ambitious people would not be good for Spokane’s future.
spokacoug on August 30 at 4:15 p.m.
I did not post to flame on Spokane, I was born and raised there. As others have posted, Spokane for better or worse really has to make a conscious effort to step into the light. An example is the city of Pittsburgh. If that region is not considered dark blue collar than I don’t know what is. But after the metal factories started to shutter its doors in the 70’s and 80’s west PA took a big economic hit. But 20yrs later the city has rebounded dramatically. I’m not saying Pitt is a tourist destination or white collar city but it has reinvented itself. Here are some excerpts from an article by Michael Strong: Economic Turnaround from June 2010 comparing Pitt to Detroit.
Pittsburgh was heavily reliant on manufacturing to provide a life for its citizens and taxes for its city coffers. However, when the steel industry tanked in the late 1970s and early 1980s, the city suffered. To recover, it put together a plan called Renaissance II, which called for diversifying the city’s economy by using tax breaks and other incentives to attract new business segments to Pittsburgh.
The end result was a move toward health care and technology. In fact, the top two employers in Pittsburgh are in health care and the city is one of the nation’s leaders in technology, especially green technologies. The city has more than 300 LEED certified buildings.
Tobacco settlement monies were used to help set up “greenhouses” in three major Pennsylvania cities, including Pittsburgh. The greenhouses were designed to focus on the needs and expertise of each geographical area. Pittsburgh’s LifeScience Greenhouse works as an incubator for research, startups, executive training, and corporate counseling in the life sciences sector.
The move to encourage entrepreneurs to make their home in Pittsburgh means the growth of ancillary companies and even more jobs. Many of these companies work in concert with the city’s largest educational institutions, University of Pittsburgh and Carnegie Mellon University.
Pittsburgh is now home to several entities aimed at luring more technology based companies to the city due to the initial greenhouse program. Innovation Works provides seed money for entrepreneurs with technology ideas. The firm has invested more than $43 million in more than 125 technology startups. Those companies have been a magnet for creating thousands of new jobs and attracting more than $750 million in follow-on capital to the region in just the past nine years.
Pitt now has a diversified economy that fits right into the blue collar culture of its past. Its a win/win for everyone especially the workforce. Spokane is not Pittsburgh by any means but you can take the blue print that has already been used succesfully and shrink it down to fit the logistics of Spokane. Many underlying things needed for Pitt turnaround, Spokane already has. Workforce, universities, educated folks, large HealthCare/Sciences established and a blue collar culture.
jonahNDWale on August 30 at 5:22 p.m.
One thing is clear. Back in the 1980s, when Apple was selling those quaint Macintosh computers, the comapany was a lot different in how they viewed the retail distribution channel. Back then, a store was a store.
By 2010 the notion of selling Macs in a store evolved into a different idea and a different kind of experience. It’s really about marketing and advertising. Anyone watching Mad Men? Apple’s marketers have convinced us we’re lucky somehow when they come in and drop a store in our midst.
I don’t get it. It’s just a store, really, no matter what else you want to call it.
misjustice on August 30 at 6:01 p.m.
Again Spokacoug, and InlandNW; thank you for your contributions and information regarding our city of Spokane.
It is thoughtful and well researched posts like yours that will lead to a higher level of dialogue on this subject [beyond the love it or leave it expressed by some]. You have both given me a lot to mull over and examine further.
jonahNDWale on August 31 at 5:54 a.m.
Two extra thoughts. I hope Strong Solutions keeps going and isn’t affected by the new store. Tehyr’e great people… check them out.
Also I bet Best Buy starts doiong more promotions for apple products… it will be to their advantage to keep people aware they also do apple products.
jonahNDWale on August 31 at 5:56 a.m.
This story probably dind’t do one key thing. It did not try to find out how much spending / shopping in downtown comes from outside the area. . I bet Apple would know and figures the amount is fairly large.
eagleproducer on September 03 at 10:55 a.m.
The Spokane bashers: There are highways leading in every direction from the city…
As for the Apple store: It’s nice that Spokane is finally deemed worthy for Apple’s hipness… I’ve ALWAYS owned Macs and Apple products and seemed to get along just fine purchasing them like I always have. Apple is disingenuous about saying they wish to attract the college crowd because they will shop online where they receive a significant discount by entering their school info in their education store.
The bookstore at Eastern has been a Mac retailer for at least 12 years with both hardware and software selections. I’ll continue to purchase my Apple products there or online so I don’t have to patronize a business in a Cowles owned property.
VOTE WITH YOUR DOLLARS!
missspokane93 on September 04 at 9:43 p.m.
@InlandNW
The SAT statistic is cute, but you have to remember that the more serious students take this test in the Spring of their Junior year. Therefore, your statistic could be proof that the students on this side of the state procrastinate less than the average student statewide. If you want a true indicator, try looking at the AP tests. They are more closely related to college courses anyways.
13Lucky on September 09 at 1:52 a.m.
Hurray! Steve Jobs, you know where Apple Mac’s Target Markets are; your company’s place on the Stock Market reflects you do. Of course Mac’s are user friendly, plus a major per cent of the news & print media are Mac users. Any of you that find Spokane not up to par have a choice to move, if you aren’t happy living in Spokane who’s choice is it to remain here? I happily anticipate the Apple store opening, count me in…. I have had to spend my dollars on Apple products for 15 years out of this areas tax base.