Corporations Give ‘Boonies’ A Second Look

Companies looking for change used to dismiss Spokane and other remote U.S. cities as the “boonies.” They were cities considered too small, too remote and too backward to locate expansion operations or company headquarters.

But Hawaii author David Heenan says that’s all changed. Spokane and another 150 midsized U.S. cities have become the “new frontier” for large corporations seeking hard-working employees, a slower pace of life and a chance to influence their communities.

“Where is corporate America’s next frontier? It’s past the edge of the suburbs to a select number of small and medium-sized cities, including Spokane,” Heenan told 400 people attending the Momentum ‘95 annual meeting Tuesday at the Ag Trade Center.

“The non-traditional locations used to be viewed as off the beaten path,” he added. “But corporate America is far more foot-loose, far more mobile than ever before.”

Heenan’s message was good medicine to the economic development group which, together with Jobs Plus in Coeur d’Alene, recently lost a bid for a Micron Technology Inc. expansion plant and its 4,000 jobs.

Heenan, former dean of the University of Hawaii’s business school and author of a 1991 book on companies moving to small U.S. cities, said in a later interview that the loss of Micron should not be considered a setback to Spokane and Kootenai counties. It usually takes 10 years of promoting a community to land a major company, he said, noting that Momentum just completed its eighth year.

Momentum was founded in 1986 to promote job growth, higher household incomes and quality of life. Its 550 members invest about $1 million annually to meet those goals.

Heenan, who currently manages the $2 billion James Campbell Estate in Honolulu, complimented Spokane leaders for their economic development program. But he warned them not to ignore existing businesses and Fairchild Air Force Base.

“I’ve seen too many mayors, in their lust for another Japanese (company) scalp, turn their backs on local employers,” Heenan said. “Local businesses provide three-fourths of your job growth.”

Heenan also advised against joining a bidding war for prospective companies and skimping on support for public schools and other infrastructure.