2018 TECHNOLOGY ECONOMIC KNOWLEDGE REPORT 2018 TABLE OF CONTENTS

TABLE OF CONTENTS 2 CONTRIBUTORS 3 IDAHO TECHNOLOGY COUNCIL LETTER 4

INNOVATIVE GROWTH 6-7 PROFILE OF IDAHO 8-13 IDAHO’S SIX REGIONS 14-29 KEY DRIVERS 30-33 REGIONAL SNAPSHOT 34-68 ECONOMY 34-45 GOVERNANCE 46-49 PEOPLE 50-53 PLACE 54-59 SOCIETY 60-68 ACKNOWLEDGEMENTS 69 APPENDIX DATA 70-71

2 IDAHO KNOWLEDGE REPORT CONTRIBUTORS

CONTRIBUTING TEAM Jay Larsen, Idaho Technology Council Jason Haase, Idaho Technology Council THANK YOU TO ALL Craig Shaul, Idaho Department of Labor THE PEOPLE THAT Sam Wolkenhauer, Idaho Department of Labor CONTRIBUTED TO Kathryn Tacke, Idaho Department of Labor THE GREAT WORK Jan Roeser, Idaho Department of Labor THAT WENT IN TO Dr. Esther Eke, Idaho Department of Labor BUILDING THE 2018 Brian Husler, Idaho Department of Labor IDAHO KNOWLEDGE Hope Morrow, Idaho Department of Labor Carmen Achabal, Idaho Department of Commerce REPORT. Greg Hill, Idaho Policy Institute Lantz McGinnis-Brown, Idaho Policy Institute Mike Kerby, c308 Marketing Alec Aja, c308 Marketing Stephanie Cook, Idaho National Laboratory Haydn Bryan, Idaho National Laboratory/Boise State Suzie Dustin, HP Jodi Olsen, HP

ADVISORS Heidi Jarvis-Grimes, Idaho Technology Council David Moore, Idaho Technology Council Christina Slaughter, Idaho Technology Council Jana Jones, University of Idaho Dana Kirkham, Regional Economic Development Eastern Idaho Steve Robertson, Ph.D., Louie Robertson Consulting Russell Hancock, Joint Venture Silicon Valley Andrew Beck, EverCommerce Wendi Seacrest, Idaho Workforce Development Council Amy Lientz, Idaho National Laboratory Cheongsin Kim, Idaho Policy Institute Angela Hemingway, Idaho STEM Action Center Jennifer Swindell, Idaho Ed News Randy Schrader, Idaho Ed News Roger Quarles, J.K. and Kathryn Albertson Family Foundation John Regetz, Bannock Development Corporation Ethan Mansfield, Boise Valley Economic Partnership

3 2018

DEAR FRIENDS

Never in the history of Idaho is it as important to grow a knowledge based economy as today. We don’t know some of the technologies we will be utilizing five to ten years from now because they haven’t been invented or developed. The rate of innovation will change exponentially over the next decade and we must produce the next generation of prod- ucts and services.

Idaho is at a crossroads. Kauffman Foundation and Milken Institute re- ports usually rank Idaho in the middle of the pack regarding technolo- gy and innovation. We either make significant strides towards growing technology and innovation in our state or we slide to mediocrity. Idaho has a great history with growing an innovative, knowledge based econ- omy through advancing knowledge, information and high skill levels.

Top areas of focus for growing a knowledge based economy are:

• Improving how students are prepared to operate in a knowledge based economy. We must develop alternative education channels • Capital networks are growing in Idaho and we must develop a stron- ger capital network • Commercialization of ideas and getting products and services to market • Stresses on infrastructure will continue as Idaho grows. Infrastruc- ture requirements and planning with respect to transportation and housing will play a major role in future success • Quality of life—the underpinning to growing a knowledge economy with community benefits: better health, more innovative, more ed- ucated.

The opportunities are here. The Idaho Knowledge Report 2018 provides the metrics on building a stronger, more innovative economy. This report allows us to measure success and identify proscriptive actions towards industries. We recognized the unique nature of each region in our state. To create change, the leadership to drive initiatives must be done by industry and local leaders.

Let’s work collectively to build a strong, more innovative Idaho.

Best,

Jay Larsen President & Chief Executive Officer Idaho Technology Council

4 IDAHO KNOWLEDGE REPORT

BUILDING A KNOWLEDGE-BASED ECONOMY IS VITAL TO IDAHO’S LONG- TERM SUCCESS. INNOVATION AND TECHNOLOGY WILL INCREASINGLY DRIVE PRODUCTIVITY AND GROWTH IN OUR GREAT STATE.

C.L. “Butch” Otter, Governor August, 2018

5 2018 INNOVATIVE GROWTH

IDAHO GROSS DOMESTIC PRODUCT (IN CURRENT DOLLARS)

All industry total

$80,000

$70,000

$60,000

$50,000

Dollars $40,000

$30,000

$20,000

$10,000

$0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Data Source: BEA.Gov - interactive data application

IDAHO TOTAL NONFARM JOBS

(SEASONALLY ADJUSTED) 1971-1978 BEST OF BOTH WORLDS: STRONG 1978-1987 2001-2010 2010-NOW 1939-1970 NATURAL RESOURCES AND GROWTH ERA OF TRANSITION FROM NATURAL 1987-2001 HOUSING BUBBLE AND TECH EXPANSION NATURAL RESOURCE ECONOMY IN MANUFACTURING RESOURCE TO TECHNOLOGY IDAHO’S GOLDEN DECADE GREAT RECESSION PERIOD 800,000

700,000 1978 1990-1992 1929 MICRON FOUNDED IDAHO AVOIDS NATIONAL RECESSION SIMPLOT COMPANY AS FAR ASJOB GROWTH AND UNEMPLOYMENT. FOUNDED LEADS TO ACCELERATION OF TECHNOLOGY 600,000 IN IDAHO. MICRON EXPERIENCES 1932 STRONG GROWTH. MORRISON KNUDSEN 2000-2018 FOUNDED SIGNIFICANT TECH GROWTH WITH 500,000 1973 1984 INDUSTRY PLATFORMS IN INTERNET OF THINGS, HP COMES TO IDAHO EXTENDED SYSTEMS, FINTECH, CYBERSECURITY, PROTECTION, WITH EMERGING PRINTING WITH ROOTS TO HP ARTIFICIAL INTELLIGENCE, VIRTUAL REALITY, DIVISION IS FOUNDED 400,000 1995 AUGMENTED REALITY, ADVANCED MANUFACTURING. 1939 1949 1957 MICRON ELECTRONICS SIGNIFICANT INVESTMENT IN CAPITAL HAS ALBERTSON’S IDAHO NATIONAL LAB BOISE CASCADE STARTED TAKEN PLACE. FOUNDED FOUNDED FOUNDED 300,000

1977 1997 200,000 HP BRINGS SECOND DIVISION IDAHO REGARDED (MEMORY AND STORAGE) AS TECH HUB BY THE MILKEN INSTITUTE

100,000

0

1939 1944 1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2019

6 IDAHO KNOWLEDGE REPORT

TOTAL NONFARM GROWTH FROM 1990: IDAHO AND ITS SURROUNDING STATES

Idaho Montana Nevada Oregon Utah Washington Wyoming US

140%

120%

100%

80%

60%

40%

20%

0%

-20%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

IDAHO TOTAL NONFARM JOBS

(SEASONALLY ADJUSTED) 1971-1978 BEST OF BOTH WORLDS: STRONG 1978-1987 2001-2010 2010-NOW 1939-1970 NATURAL RESOURCES AND GROWTH ERA OF TRANSITION FROM NATURAL 1987-2001 HOUSING BUBBLE AND TECH EXPANSION NATURAL RESOURCE ECONOMY IN MANUFACTURING RESOURCE TO TECHNOLOGY IDAHO’S GOLDEN DECADE GREAT RECESSION PERIOD 800,000

700,000 1978 1990-1992 1929 MICRON FOUNDED IDAHO AVOIDS NATIONAL RECESSION SIMPLOT COMPANY AS FAR ASJOB GROWTH AND UNEMPLOYMENT. FOUNDED LEADS TO ACCELERATION OF TECHNOLOGY 600,000 IN IDAHO. MICRON EXPERIENCES 1932 STRONG GROWTH. MORRISON KNUDSEN 2000-2018 FOUNDED SIGNIFICANT TECH GROWTH WITH 500,000 1973 1984 INDUSTRY PLATFORMS IN INTERNET OF THINGS, HP COMES TO IDAHO EXTENDED SYSTEMS, FINTECH, CYBERSECURITY, PROTECTION, WITH EMERGING PRINTING WITH ROOTS TO HP ARTIFICIAL INTELLIGENCE, VIRTUAL REALITY, DIVISION IS FOUNDED 400,000 1995 AUGMENTED REALITY, ADVANCED MANUFACTURING. 1939 1949 1957 MICRON ELECTRONICS SIGNIFICANT INVESTMENT IN CAPITAL HAS ALBERTSON’S IDAHO NATIONAL LAB BOISE CASCADE STARTED TAKEN PLACE. FOUNDED FOUNDED FOUNDED 300,000

1977 1997 200,000 HP BRINGS SECOND DIVISION IDAHO REGARDED (MEMORY AND STORAGE) AS TECH HUB BY THE MILKEN INSTITUTE

100,000

0

1939 1944 1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2019

7 2018

PROFILE OF IDAHO 2018 AN ECONOMIC OVERVIEW

A rich history of innovation has been a part of Idaho dating back to when Abraham Lincoln created the Idaho Territory which included much of the land that became Idaho, Montana and Wyoming. In 1868, Idaho was carved from the territory, and in 1890 admitted as the 43rd state. Just six years later, Idaho became the fourth state that gave women the right to vote.

Idaho is currently experiencing rapid urban growth and development. This growth has been accompanied by an influx and expansion of industry, which in turn is leading to an increas- ingly diversified workforce, and a rising demand for STEM skills. Idaho has one of the fastest growing technology sectors in the and has the fastest growing software in- dustry as a percent of the states GDP. As the economy grows, wages, cost of living, quality of life and the conditions of the states infrastructure are becoming increasingly critical.

Idaho’s population is growing rapidly from births Idaho ranked 2nd in the U.S. for personal income and migration from other states, especially in urban growth in 2017(Wall Street Journal). Idaho had a 5.3% areas. According to the U.S. Census Bureau, Idaho is increase in income in 2017, compared to a national one of the fastest growing states in the U.S. in 2017, average of 3.1%. Idaho’s computer parts manufactur- with a 2.2% population increase (36,917 new people). ing industry in particular saw wages increase by more Idaho’s cities received the majority of this growth. than 15% from the previous year in the third quarter of 2017 (Wall Street Journal). The rapid growth of Idaho ranked 4th in the U.S. for employment growth emerging tech industries brings with it higher wages. in 2017 (Governing, BLS). Idaho’s technology indus- When looking at high tech job wages compared to all try growth ranked 5th in the nation, growing by 2.8% jobs, high-tech wages average $102,106. Whereas, all in 2017 (CompTIA). The Idaho Department of Labor jobs average wages are $49,880. projected this year that technology and healthcare will be the two leading job categories for the next ten years, with software/application developers and HIGH-TECH WAGES AVERAGE registered nurses topping the list. In addition, 4 of the top 26 jobs on the Hot Jobs list are related to $102,106. OVERALL, ALL advanced manufacturing. The emerging high tech JOBS AVERAGE WAGES ARE trends are expected to realize a 45% growth in the $49,880 next ten years as far as employment numbers, where- as traditional industry trends are only expected to grow 13%.

8 IDAHO KNOWLEDGE REPORT

Idaho’s educational system is taking active steps to meet economic demands for a technologically skilled workforce. According to the STEM Action COMPLEX OR ROUTINE, Center, Idaho had 7,000 STEM jobs go unfilled in COGNITIVE AND MANUAL 2017, marking a significant need for increased STEM education in Idaho’s primary, secondary, and post- JOB NARRATIVE secondary education systems. In 2017, Idaho took steps to improve STEM educational offerings by passing legislation that will require every high school to offer at least one computer science course by 2020. Understanding how technology has changed This, along with several educational measures have the U.S. labor market is critical to our ability earned recognition by Code.org (a global nonprofit to understand how the economy is changing, dedicated to expanding access to computer science and has transitioned and adjusted to these in schools), stating Idaho is one of the top states pro- changes. One way of categorizing jobs is to actively addressing K-12 computer science education. classify them as either cognitive or manual Over the past few years the Idaho Legislature has and routine or complex. Routine jobs are appropriated over $2 million to increase computer occupations governed by a clear set of steps science in Idaho’s K-12 system. Idaho has significantly or a process that is repeated. Classic exam- increased the computer science pipeline as seen by ples include an assembly line worker who the growth of computer science graduates at Boise repeats the same process of putting compo- State University, University of Idaho and Idaho State nents together, or a telemarketer or custom- University. Five years ago, the Computer Science er service representative who follows a script programs awarded 73 computer science degrees, when assisting a customer. Non-routine jobs, and have graduated 169 in 2018 (Bachelors, Masters which are not governed by a predictable and Doctoral). process, are more likely to require abstract thinking, judgment, creativity, situational Idaho’s low cost of living is attractive for businesses adaptability and interpersonal skills. and individuals from other states, but housing costs are increasing as demand for housing outstrips Examples of occupations in the four supply. According to Zillow, Idaho’s median home categories include: value per square foot increased by 8.2% in 2017, while • Cognitive-complex: managers, home inventory decreased by 14.1%. The median sale engineers, scientists, artists, etc. price for a home in Ada County in 2017 was $243,625, • Manual-complex: food preparation, while statewide it was $207,483, and nationwide it personal care and retail workers, etc. was $220,958. • Cognitive-routine: office and administrative staff, telemarketers, etc. Idaho’s stable, business-friendly financial position • Manual-routine: production and is encouraging business development. A significant transportation workers, etc. portion of Idaho’s economic growth can be attributed to businesses moving to Idaho from out of state, in part There is a strong correlation between the to take advantage of the state’s financial position and routineness of a job, both cognitive and ease of access to a pro business government (Idaho manual, and the likelihood it can be auto- Department of Commerce, 2017 Idaho Investment mated. Cognitive-complex jobs, while less Guide). Idaho benefits from organic business growth receptive to automation, are jobs at the fore- within the state as well, as many Idaho companies front of technological development, driving have grown to become industry leaders. In regards the advancements that filter out into the to access to capital, The Idaho Deal Flow Report 2017 rest of the economy. As cognitive-complex indicated the technology and software industries jobs help open the economy to expansion, represented 16% of the total number of deals, but manual-complex and routine jobs are critical received over 60% of the total dollar volume in the to building it and maintaining infrastructure. state totaling $2.4 billion.

9 2018 PROFILE OF IDAHO

MIGRATION FOREIGN BORN

25,000 15.0%

20,000 Key 43,739,345

International

15,000 Domestic 10.0%

10,000 Migrants

97,953 5,000 5.0%

0

-5,000 0.0% 2012 2013 2014 2015 2016 2017 UNITED STATES IDAHO

Year

Data Source: Census Bureau, 2016 5-Year Estimates Data Source: Census Bureau, 2016 5-Year Estimates

PUBLIC LAND AREA 2018 2018 REGIONAL POPULATION DISTRIBUTION

1.00 12% 18% 19% 15% 14% 14%

26% Age 29% 28% 31% 3O% 34% 1.7% 65+ Tribal 0.75 40-64

28% 20-39 26% 25% 27% 30.0% 0.5 Private 28% 0-19 23% 16.5% Population Federal

33% 32% 31% 0.25 29% 5.1% 25% 24% State

0 E NC N SC SE SW

Region

Data Source: Census Bureau, 2016 5-Year Estimates

10 IDAHO KNOWLEDGE REPORT

IDAHO POPULATION

1,750,000

1,700,000

1,650,000 Idahoan

1,600,000

1,550,000 2010 2011 2012 2013 2014 2015 2016 2017

Years

Data Source: Census Bureau, 2017 Population Estimates

JOB GROWTH: NUMBER OF JOBS WITH PERCENT CHANGED OVER PRIOR YEAR

1,000,000 Region

Percent Change

750,000 3.5% 2.6% 2.9% 4.7% -1.1% 2.5%

Jobs 2.6% 3.9% -6.0% -1.3% 0.3% 1.1% 2.7% 1.5% 0.1% 0.7%

500,000

250,000 2000 2005 2010 2015

Years

Data Source: Bureau of Economic Analysis, 2016

11 2018 PROFILE OF IDAHO

PER CAPITA PERSONAL INCOME

USA IDAHO

$50,000 $49,246 $48,451

$46,494

$44,493 $45,000 $44,282

$42,461

$41,082 $40,277 $39,821 $39,376 $39,470 $40,000 $38,848 $38,144 $37,186

Personal Income Personal $35,720 $34,695 $35,000 $33,031 $33,296 $32,580 $31,357 $31,436 $31,726

$30,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

Data Source: Bureau of Economic Analysis, 2016

ETHNIC ORIGIN

80.0%

76.9%

60.0% 61.3%

40.0%

20.0%

17.8% 13.3%

2.6% 5.7% 1.3% 0.2% 0

WHITE (A) WHITE (A), NOT HISPANIC OR BLACK OR ASIAN (A) TWO OR MORE AMERICAN NATIVE HISPANIC OR LATINO AFRICAN RACES INDIAN AND HAWAIIAN AND LATINO AMERICAN (A) ALASKA NATIVE OTHER PACIFIC (A) ISLANDER (A)

Data Source: Census Bureau, 2017 Population Estimates

12 IDAHO KNOWLEDGE REPORT

EDUCATIONAL ATTAINMENT

Male Female

30.00%

20.00% Percent

10.00%

0.00%

LESS THAN 9TH 9TH TO 12TH HIGH SCHOOL SOME ASSOCIATE’S BACHELOR’S GRADUATE OR GRADE GRADE, NO GRADUATE COLLEGE, NO DEGREE DEGREE PROFESSIONAL DIPLOMA (INCLUDE DEGREE DEGREE EQUIVALENCY)

Population 25 years and over

Data Source: Census Bureau, 2016 5-Year Estimates

13 2018

IDAHO’S SIX REGIONS AN ECONOMIC OVERVIEW

SOUTHWESTERN IDAHO Population and growth in Idaho has its greatest con- oping concentrations of activity in Southwest Idaho centration in its southwestern region. Employment which are increasingly competitive nationally. has grown by 24% over the past eight years. The pop- The tech sector represents 9% of the jobs in this re- ulation growth has been matched with the technolo- gion with anticipated growth of 48% over the next gy sector growing rapidly. This region, with Boise at 10 years according to the Idaho Department of Com- its core, is where Idaho has grown both by the largest merce. Salaries in the high-tech area for Southwest amount and at the fastest rate. Agriculture and natu- Idaho are $113,570, 10% higher than the state average ral resource industries have been the primary drivers of high-tech earnings at $102,106. of its economy historically, and still play a major role in the region’s economy to this day. Today, Southwestern Idaho continues to develop these industries through a diverse community of Innovative pioneers like JR Simplot, homegrown and imported businesses. and Harry Morrison were among the first to make Southwestern Idaho their home. In the 1970’s a tech hub emerged when Hewlett Packard located two di- visions in Boise and Micron Technology was founded. From this foundation, Southwest Idaho has added new industries to the region. Web based business TECH SECTOR REPRESENTS stands out as a major growth sector, including infor- 9% OF THE JOBS IN THIS mation services, online cloud storage, and retrieval REGION WITH ANTICIPATED services. Virtual reality, online content publishing and broadcasting, Saas, E-Commerce, cyber securi- GROWTH OF 48% OVER THE ty, software development, and IT services and con- NEXT 10 YEARS sulting are also growing rapidly. Online stores are demonstrating above average growth and are devel-

14 IDAHO KNOWLEDGE REPORT

SHARE OF STATE TECH JOBS INCOME

State Tech Jobs Regional Tech Jobs

7% $150K 12% 11% <$15K $100K-$150K 23% 12% $15K-$35K 44% $75K-$100K 56% 20% $50K-$75K 15% $35K-$50K

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Economic Analysis, 2016

TECH JOBS IN REGION SHARE OF TOTAL EMPLOYMENT Other Jobs Tech jobs

Rest of the State Southwestern Idaho

9%

54% 46% 91%

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

15 2018

SOUTHWESTERN IDAHO SOUTHWESTERN IDAHO AVERAGE EARNINGS 2006 2016 NATURAL High-Tech Jobs (4 Digit) Idaho RESOURCES

1.50 $100,000 HEALTH AND 1.25 CONSTRUCTION $90,000 EDUCATION

$80,000 1.00

$70,000 0.75

$60,000 0.50 $50,000 CONSUMER Dollar Earnings $40,000 SERVICES MANUFACTURING

$30,000

$20,000

$10,000

PROFESSIONAL $0 SERVICES TRADE, TRANSPORT, AND UTILITIES HIGH-TECH JOBS ALL JOBS (4 DIGITAL)

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

SOUTHWESTERN IDAHO EMPLOYMENT

2016 2026 projected

140,000

120,000

100,000

80,000

Number Employed 60,000

40,000

20,000

0 COGNITIVE-COMPLEX COGNITIVE-ROUTINE MANUAL-COMPLEX MANUAL-ROUTINE

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

16 IDAHO KNOWLEDGE REPORT

EASTERN IDAHO Eastern Idaho has a robust and diverse economy. SHARE OF STATE TECH JOBS A thriving agricultural industry is the foundation of the region which includes major crops like potatoes State Tech Jobs Regional Tech Jobs and barley. Eastern Idaho companies, Great Western Malting, Anheuser Busch and InteGrow contribute to Idaho’s ranking as the #1 malt barley producing state in the nation. This region is also known as the Eastern Idaho Innovation Corridor focusing on science, tech- 16% nology, and clean energy industries. In 2017, Eastern Idaho saw six new business and three expansion an- nouncements in these industries accounting for over $1.74 billion in capital investment and generating over 2,000 direct and indirect jobs. This growth is 84% fueled by the presence of Idaho National Laboratory, the nation’s lead nuclear energy R&D facility. Couple this with the other federal installations; Department of Homeland Security, the US Navy, Department of Energy, and Department of Defense. The region gen- erates breakthrough technologies in energy, nuclear research, treatment and clean-up, cyber security, and supercomputing. In 2016 DOE granted a site use per- Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics mit to NuScale to build the world’s first Small Mod- ular Reactor (SMR), a $1.8 billion project employing thousands during construction and adding 350 per- manent jobs. TECH JOBS IN REGION

The Eastern Idaho region is a medical hub that serves State Tech Jobs Regional Tech Jobs the growing need for medical services for patients in several states. Within a 40 mile radius, Eastern Idaho houses three major modern hospitals, a can- cer center, and cardiac center as well as hundreds of supporting diagnostic facilities, medical laboratories, 9% outpatient facilities and medical support businesses. Eastern Idaho has a well-established education sec- tor including two major universities and a communi- ty college. Idaho State University (ISU) and Brigham Young University-Idaho combined host over 30,000 91% students from around the world. 81% of residents in Eastern Idaho’s City of Rexburg are under the age of 30 with the average age of 22, making it the highest concentration of millennial talent in Idaho. The newly formed College of Eastern Idaho works directly with industry to meet workforce needs.

Manufacturing, construction, professional and busi- Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics ness services, and new technologies drive the East-

17 2018

ern Idaho economy. Melaleuca, Inc. is a billion dollar enterprise centered in Idaho Falls. The expansion of compliance software and services company NAVEX INCOME Global, and the relocation of Iteris, Inc. from California to eastern Idaho are examples of economic oppor- tunities and job creation in the region. Due to East- ern Idaho’s projected population growth, its niche in 5% clean energy, and proximity to Idaho National labora- $150K 13% tory, new industries are constantly developing. 11% <$15K $100K-$150K Eastern Idaho’s population growth has been robust 25% and is expected to continue to grow rapidly into the 12% $15K-$35K $75K-$100K next decade. This growth comes from a mixture of steady birth rates and a mass influx of in-migrators. Retirees and those looking for new opportunities are 19% $50K-$75K 15% drawn to Idaho’s quality of life. $35K-$50K

IN 2016 DOE GRANTED A SITE USE PERMIT TO NUSCALE TO BUILD THE WORLD’S FIRST Data Source: Bureau of Economic Analysis, 2016 SMALL MODULAR REACTOR (SMR), A $1.8 BILLION PROJECT EMPLOYING THOUSANDS SHARE OF TOTAL DURING CONSTRUCTION AND EMPLOYMENT

ADDING 350 PERMANENT JOBS. Rest of the State Eastern Idaho

13%

87%

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

18 IDAHO KNOWLEDGE REPORT

EASTERN IDAHO EASTERN IDAHO AVERAGE EARNINGS 2006 2016 High-Tech Jobs (4 Digit) Idaho

$90,000 NATURAL RESOURCES $80,000 1.50 HEALTH AND EDUCATION CONSTRUCTION $70,000 1.0

$60,000 0.5

$50,000 0.0

CONSUMER $40,000

SERVICES Dollar Earnings MANUFACTURING $30,000

$20,000

PROFESSIONAL TRADE, TRANSPORT, $10,000 SERVICES AND UTILITIES

$0

HIGH-TECH JOBS ALL JOBS (4 DIGITAL)

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

EASTERN IDAHO EMPLOYMENT

2016 2026 projected

35,000

30,000

25,000

20,000

Number Employed 15,000

10,000

5,000

0 COGNITIVE-COMPLEX COGNITIVE-ROUTINE MANUAL-COMPLEX MANUAL-ROUTINE

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

19 2018

NORTH CENTRAL IDAHO North Central Idaho continues to rely on its natural er education, The University of Idaho in Moscow and resources for many of the jobs that drive its economy. Lewis-Clark State College in Lewiston provides 12% Wood and paper product manufacturing, logging, of all payroll jobs in North Central Idaho. These insti- forest management (including the U.S. Forest Ser- tutions employ a growing number of STEM research vice), and transportation firms that carry logs, lum- and education experts. In addition, this industry has ber, paper and wood chips are the region’s traditional created many high-tech jobs by producing research mainstay. More than 9% of all payroll workers are in that has resulted in new firms. this category. Over time, professional jobs especially in fish and wildlife management, habitat restoration, Tourism is also an important industry, providing and the paper and lumber industries have increased, about 10% of all payroll jobs in North Central Idaho, while traditional blue collar jobs have declined. A but it remains technologically unsophisticated. The rapidly growing metal fabrication industry, including fast growing health care industry employs 13% of all ammunition makers, firearms manufacturers, jet boat payroll workers and is another source of many STEM builders, machine shops, and foundry and equipment jobs. manufacturers has taken hold in this region.

The rapid growth of equipment manufacturing has A RAPIDLY GROWING METAL led to an increase in STEM jobs in that industry, which now accounts for about 7% of all payroll jobs. High- FABRICATION INDUSTRY

TECH JOBS IN REGION SHARE OF TOTAL EMPLOYMENT Other Jobs Regional Tech Jobs

Rest of the State Northern Idaho

4% 13%

96% 87%

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

20 IDAHO KNOWLEDGE REPORT

SHARE OF STATE TECH JOBS INCOME

State Tech Jobs Regional Tech Jobs

4% $150K 15% 3% 9% <$15K $100K-$150K 10% $75K-$100K 26% $15K-$35K 20% 97% $50K-$75K 16% $35K-$50K

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Economic Analysis, 2016

NORTH CENTRAL IDAHO NORTH CENTRAL AVERAGE EARNINGS 2006 2016 High-Tech Jobs (4 Digit) Idaho

$90,000 NATURAL RESOURCES $80,000 1.50 HEALTH AND EDUCATION CONSTRUCTION $70,000 1.0

$60,000 0.5

$50,000 0.0

CONSUMER $40,000

SERVICES Dollar Earnings MANUFACTURING $30,000

$20,000

PROFESSIONAL TRADE, TRANSPORT, $10,000 SERVICES AND UTILITIES

$0

HIGH-TECH JOBS ALL JOBS (4 DIGITAL)

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

21 2018

NORTH CENTRAL IDAHO EMPLOYMENT

2016 2026 projected

16,000

14,000

12,000

10,000

8,000 Number Employed 6,000

4,000

2,000

0 COGNITIVE-COMPLEX COGNITIVE-ROUTINE MANUAL-COMPLEX MANUAL-ROUTINE

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

NORTHERN IDAHO Northern Idaho’s economy was historically built on As Northern Idaho has grown, it has cultivated a va- the region’s abundant natural resources, including riety of growing high-tech industries. The region is agriculture, logging and associated forest products, home to a dynamic group of aerospace manufactur- and mining in the Silver Valley. Over time, the region’s ers. Quest Aircraft, which manufactures finished sin- low cost of living and rich natural beauty have trans- gle prop aircraft at its facility in Sandpoint. Empire formed Northern Idaho. The region’s population has Aerospace, which overhauls and maintains its airliner exploded, more than doubling since 1990. Kootenai fleet in Coeur d’Alene, and a variety of component County is a rapidly growing community and a desti- manufacturers, who produce products ranging from nation for both retirees and families looking to leave seaplane floats to electronic components. Northern high cost west coast cities. Idaho’s vibrant aerospace sector has helped support other advanced manufacturing industries, including plastics manufacturers that support hundreds of em- ployees producing advanced thermoplastic compos- HOME TO A DYNAMIC ites as well as a drone manufacturer, Xcraft. GROUP OF AEROSPACE MANUFACTURERS

22 IDAHO KNOWLEDGE REPORT

TECH JOBS IN REGION SHARE OF TOTAL EMPLOYMENT Other Jobs Regional Tech Jobs

Rest of the State Northern Idaho

5% 13%

95% 87%

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

SHARE OF STATE TECH JOBS INCOME

State Tech Jobs Regional Tech Jobs

5% $150K 13% 10% <$15K 9% $100K-$150K 11% 24% $75K-$100K $15K-$35K

91% 20% $50K-$75K 17% $35K-$50K

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Economic Analysis, 2016

23 2018

NORTH CENTRAL IDAHO NORTH IDAHO AVERAGE EARNINGS 2006 2016 High-Tech Jobs (4 Digit) Idaho

$90,000 NATURAL RESOURCES $80,000 1.50 HEALTH AND EDUCATION CONSTRUCTION $70,000 1.0

$60,000 0.5

$50,000 0.0

CONSUMER $40,000

SERVICES Dollar Earnings MANUFACTURING $30,000

$20,000

PROFESSIONAL TRADE, TRANSPORT, $10,000 SERVICES AND UTILITIES

$0

HIGH-TECH JOBS ALL JOBS (4 DIGITAL)

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

NORTHERN IDAHO EMPLOYMENT

2016 2026 projected

35,000

30,000

25,000

20,000

Number Employed 15,000

10,000

5,000

0 COGNITIVE-COMPLEX COGNITIVE-ROUTINE MANUAL-COMPLEX MANUAL-ROUTINE

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

24 IDAHO KNOWLEDGE REPORT

SOUTH CENTRAL IDAHO Agriculture traditionally drove most of the eight TECH JOBS IN REGION counties in South Central Idaho. In response to in- creased demand for crops to feed dairy cows and Other Jobs Regional Tech Jobs demand from a growing food processing sector, agri- cultural jobs have continued to increase over the last 17 years by 56%, or 2.7% per year, double that of all industry jobs in the region. Four of the five counties 3% with the highest agricultural market production in the state, are all in South Central Idaho: Cassia, Twin Falls, Gooding and Jerome counties.

AGRICULTURAL JOBS HAVE CONTINUED TO INCREASE 97% OVER THE LAST 17 YEARS BY 56%, OR 2.7% PER YEAR

Manufacturing, particularly food processing, but also plastics, harvesting equipment, R.V. trailers and box Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics makers, has also become a solid employment source in the region over the last 17 years. The container and box making industry makes products to fill the needs of food processors and online retailers. SHARE OF TOTAL Dairy product manufacturing facilities are typically EMPLOYMENT stainless steel, computer-controlled environments. Rest of the State South Central Idaho Workers skilled in the mechanical, electrical, hydro- logical and programming fields run dairy plant con- trols and valves. These workers are critical to keeping plants going by troubleshooting problems and work- 12% ing to schedule predictive/preventative maintenance.

Warehousing and transportation is another industry closely tied to agriculture. The number of state of the art warehouses is growing in South Central Idaho. 88% DOT Foods, a re-distributor of food to small grocers and convenience stores, built a regional warehouse in Burley. Newcold, a Netherlands based company, is building a 25 million cubic foot warehouse that will need only 80 workers, due to automated features such as robotic arms that pick, move, and pack food items.

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

25 2018

SHARE OF STATE TECH JOBS INCOME

State Tech Jobs Regional Tech Jobs

4% $150K+ 12% 8% <$15K 5% $100K-$150K 12% $75K-$100K 27% $15K-$35K 20% 95% $50K-$75K 17% $35K-$50K

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Economic Analysis, 2016

SOUTH CENTRAL IDAHO EMPLOYMENT

2016 2026 projected

30,000

25,000

20,000

15,000 Number Employed

10,000

5,000

0 COGNITIVE-COMPLEX COGNITIVE-ROUTINE MANUAL-COMPLEX MANUAL-ROUTINE

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

26 IDAHO KNOWLEDGE REPORT

SOUTH CENTRAL SOUTH CENTRAL IDAHO AVERAGE EARNINGS 2006 2016 NATURAL High-Tech Jobs (4 Digit) Idaho RESOURCES

$90,000 4

HEALTH AND $80,000 CONSTRUCTION EDUCATION 3

$70,000 2

$60,000 1

$50,000 0

$40,000

Dollar Earnings CONSUMER SERVICES MANUFACTURING $30,000

$20,000

$10,000

$0 PROFESSIONAL TRADE, TRANSPORT, SERVICES AND UTILITIES HIGH-TECH JOBS ALL JOBS (4 DIGITAL)

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

SOUTHEASTERN IDAHO Southeastern Idaho has a fairly diverse economy. clude ongoing expansions at the Idaho Central Credit About 1 in 5 jobs are concentrated in goods pro- Union and the FBI data center in the region’s largest ducing industries including agriculture and agricul- community, Pocatello – Chubbuck. ture related manufacturing, mining, and high-tech semi-conductor component manufacturing. Service This FBI expansion project holds a lot of promise for sector jobs are largely dominated by state and local the region as it has the potential to expand the re- government jobs supported by the presence of Idaho gion’s professional and business services sector. The State University and the Shoshone-Bannock Tribes. expansion project is expected to bring in an addition- The region also has a growing healthcare industry to al 350 information technology and 150 administrative support the region’s rapidly growing population. Ad- and operations jobs once completed. Additionally, ditionally, the region’s logistics sector is expanding jobs brought in by supporting services companies with the development of the Frigitek cold stargaze are moving into the area. project, which will support food and agriculture pro- cessing. FBI EXPANSION WILL BRING The construction industry in the region has grown IN AN ADDITIONAL 350 significantly since the last recession. In the past year, construction grew by 4.8 %, four times faster than the INFORMATION TECHNOLOGY average regional industry growth. This growth can AND 150 ADMINISTRATIVE be attributed to a number of ongoing and recently AND OPERATIONS JOBS completed construction projects. Some of which in-

27 2018

Three specific projects have the potential to bring more high-tech jobs into the region. Premier Tech- nology has already begun a $15 million expansion in TECH JOBS IN REGION the city of Blackfoot, in Bingham County. Another project is a proposed walkable-bikeable communi- Other Jobs Regional Tech Jobs ty in Pocatello - Chubbuck, the Northgate – Siphon Road Development. This development is expected to bring 10,000 residential units, a shopping and re- tail district, commercial and industrial sites, and an IT 5% park supporting 6,000 high paying IT jobs. The third project is the new eCobalt Solutions plant, which will process ore from their new mine in Salmon, Idaho and convert it into components for lithium batteries that will power products from flash lights to cars. 95%

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

INCOME SHARE OF STATE TECH JOBS

State Tech Jobs Regional Tech Jobs

4% $150K+ 13% 10% <$15K $100K-$150K 6%

12% 24% $75K-$100K $15K-$35K

20% 94% $50K-$75K 17% $35K-$50K

Data Source: Bureau of Economic Analysis, 2016 Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

28 IDAHO KNOWLEDGE REPORT

SHARE OF TOTAL SOUTHEASTERN IDAHO EMPLOYMENT EMPLOYMENT

2016 2026 projected Rest of the State South Central Idaho 25,000

20,000 12%

15,000

10,000 Number Employed 88% 5,000

0

MANUAL-COMPLEX MANUAL-ROUTINE COGNITIVE-COMPLEX COGNITIVE-ROUTINE

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

SOUTHEASTERN IDAHO SOUTHEASTERN IDAHO AVERAGE EARNINGS 2006 2016 High-Tech Jobs (4 Digit) Idaho NATURAL RESOURCES

$90,000 1.6

$80,000 HEALTH AND EDUCATION 1.4 CONSTRUCTION

$70,000 1.2

$60,000 1.0

$50,000 0.8

$40,000 CONSUMER Dollar Earnings SERVICES MANUFACTURING $30,000

$20,000

$10,000

$0 PROFESSIONAL TRADE, TRANSPORT, SERVICES AND UTILITIES HIGH-TECH JOBS ALL JOBS (4 DIGITAL)

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

29 2018

KEY DRIVERS FOR BUILDING A KNOWLEDGE BASED ECONOMY IN IDAHO

Over the past decade, the Idaho Technology Council has conducted over 20 focus groups throughout the state to identify the needs of companies in Idaho. The top opportunity has always been to find and develop talent. Also, every industry utilizes technology to imple- ment products or services, for optimization, or for manufacturing.

Emerging Industries in Idaho are forecast to grow 21% in the next 10 years while traditional industries will grow 14%. Traditional industries such as food manufacturing, agriculture sup- port, electronics manufacturing, wood products and mining continue to be strong in Ida- ho. However, emerging industries such as electrical equipment manufacturing, information (cloud/SaaS) services, beverage manufacturing, data processing and advanced manufac- turing bring with them more rapid growth and higher wages.

DRIVING TALENT Regarding the hottest jobs, five of the six regions in drawn national recognition from Code.org regard- Idaho have software application at or near the top of ing the tremendous work we have done in Idaho. the list. With the rapid demand for software positions This is just the start. With keen demand for soft- in Idaho, coupled with one of the fastest growing ware and computing talent we need to increase: software industries per capita in the United States, we must have a strong Computer Science (CS) pipe- • Professional development for teachers. Over the line. In the United States, approximately 70% of all past four years, hundreds of teachers in k-8 have new STEM jobs are software application positions. been trained with Code.org curriculum and pro- Here is what is going on with software training: grams like “I DO CODE” where Boise State Uni- versity has received National Science Foundation K-12 Computing Technology grants to train high school teachers in Idaho. These Several accomplishments have taken place over programs are essential as we grow CS. the past five years-- from making CS count to- • Continue to work on curriculum with existing and wards a math or science credit towards high school emerging technologies. graduation (Idaho was the 13th state to pass this • In a knowledge based economy, having robust legislation) to requiring that CS be offered at internet bandwidth is imperative. Organizations all high schools. These accomplishments have like the Idaho Education Technology Association

30 IDAHO KNOWLEDGE REPORT

are focused on continued improvement of band- Technology Council have been developing tech width to schools. Plans to bring higher bandwidth apprentice programs to help create a stronger to our state with specific focus on rural areas is a entry talent pipe line within software, testing/ must. Quality, web development, and cyber security. • Approximately three years ago, the Idaho legislature • Strong efforts to work with regional leaders and formed the Idaho STEM Action Center. Through the community colleges and to solve workforce de- STEM Action Center, millions of dollars have been mands in manufacturing. Building apprentice and are being appropriated to further CS and other programs will also assist the talent demands. STEM initiatives. These funds are designed to help • Earnings in high-tech jobs in Idaho are $102,106 schools implement programs in their districts and vs. $49,880 for all Idaho jobs. The average in the must be continued. United States is $123,063 while all jobs in the US are $65,369. Idaho needs to grow more sophis- Higher Education ticated, technology jobs that will help drive the Higher Education needs to continue to grow com- economy and provide a stronger tax base for Ida- puter science and engineering programs to address ho and its communities. software talent required by industry. Having strong industry advisory boards is essential to obtain the ACCESS TO CAPITAL needs of industry. University of Idaho and Boise During 2017, approximately $2.4 billion was invest- State have grown their computer science programs ed in Idaho companies through mergers and acqui- significantly. Over the past five years, Boise State sitions, private placement, and public offers. Nearly has grown from 10 faculty to approximately 27 and 61% of these investments were made in technology University of Idaho added 8 new faculty head count and software companies. Idaho companies have re- nearly two years ago and has significantly expanded ceived major investments from some of the top ven- its program to Coeur d’Alene. Idaho State University ture firms in the United States over the past 10 years. has an amazing cybersecurity program that provides Here is what we must do to build a stronger, more talent for several federal agencies. connected capital network:

• We must continue to scale our Idaho university • Continue to measure Idaho deal flow which pro- computer science programs and make sure pro- vides metrics and information regarding: industry grams have stackable credits which allows stu- sectors, areas of the state, providers of capital, dents the flexibility to plug into programs to en- investment partners. hance their knowledge and skill. Industry must • Idaho needs to look for additional sources of cap- work closely with our universities to connect with ital. The ITC Capital Connect group is looking for technology evolution in areas as cybersecurity, an Idaho sponsored fund that helps grow compa- IoT, AI, VI, AR, data analytics, and more. Because nies specifically in the emerging company space. of programs like “I Do Code” at Boise State Uni- • Idaho should look at a state backed fund to help versity, we are training more high school teachers accelerate the access to capital and bring more to teach computer science in Idaho schools. capital investors from outside of Idaho. • Continue to look for emerging companies in the Alternative Paths tech space. With the high demand for software professionals, we need to continue to build alternative paths for those TECH2MARKET that want to shift to software. Idaho is recognized as one of the top performing • Several paths are being created by Idaho Com- states regarding patents per capita and has a strong munity Colleges and other alternatives with pri- history of innovation in traditional and tech indus- vate sector companies. tries. The foundation of the tech industries began in • The Idaho Department of Labor and the Idaho the 1970s when HP located two divisions in Idaho and

31 2018

Micron started. From these two tech giants, several turing, retail, high-tech bolstered by memory and companies have spun out with the commercializa- printing, and tourism. tion of several products and services. What we have learned: Advanced Manufacturing Manufacturing is one of the top industry segments in • We need to keep the start-up engine in Idaho Idaho accounting for 11.5% of the states GDP at $8.3 strong. We experienced Idaho’s Golden Decade billion in 2017. A main strength of Idaho’s economy is in the 90s resulting from work that started in the its ability to make products. Advanced manufactur- 70s. Companies that begin in the early 2000s ing is the use of innovative technologies and meth- have now grown and Idaho is reaping the bene- odologies for improved competitiveness in the man- fits of these outstanding tech companies that are ufacturing sectors. Idaho must continue to build the producing products and services that are world talent pipeline to manufacturing segments as food class. You can measure the strength of a state’s processing, computer and electronics, metal fabrica- economy based on its early stage/start-up com- tion, wood and paper, and chemical manufacturing. munity. All regions have strong advanced manufacturing • Continue to strengthen the relationship of start- industries—all in unique areas. For instance, South- ups and our university system. Our university sys- central has major food production focus. This focus tem has started new programs like Colleges of has made Idaho one of the top three milk producing Innovation and Design, Integrated Research and states behind California and Wisconsin. North Idaho Innovation Center, Venture College, and other has growth in the aerospace industry which has pro- places to help students incubate ideas. pelled the industry 400% year over year. This is lead • Mentoring programs and incubators need to be by companies such as Quest Aircraft Company and developed in a stronger fashion throughout Ida- Empire Airlines. ho. Organizations like Small Business Develop- ment Center, INL initiatives, TechHelp,Trailhead, Continued focus on talent and differentiation on ma- Venturecapital.org, the Idaho Technology Council terial science to help production and to help make Tech2Market Committee, and others are helping products, stronger, faster, and smaller. Innovation and drive innovation and connections and the conflu- investment in new technology, improved processes, ence of technology. and management methods are improving manufac- • Programs like the Idaho Global Entrepreneurial turing of products and driving advanced manufactur- Mission (IGEM), must continue to be developed ing within each of the six regions in Idaho. to help early stage research and intellectual prop- erty get to market. • Work closely with capital initiatives as there is a strong overlap. ONE OF THE TOP THREE • Each economic region is unique and has micro MILK PRODUCING STATES industry shifts within the region. Economic De- INCLUDING CALIFORNIA velopment entities must work to optimize indus- try strengths and help get products and services AND WISCONSIN to market based on those strengths. A concerted effort to build industry strengths will continue to Software Development connect Idaho. Software and Computing Technology as shown by the Idaho Hot Jobs analysis, one of the top demand TECH SECTORS AND IDAHO jobs in all but one region is a software application de- CORE COMPETENCIES veloper. As the world becomes more mobile with the Internet of Things, cloud services demand continues Over the past century, Idaho has had strong growth to grow, and emerging technologies with artificial in- from agriculture/natural resource sectors, manufac- telligence expands with analytics, virtual reality; the

32 IDAHO KNOWLEDGE REPORT

demand for new products and services as well as the INFRASTRUCTURE growth in traditional industries will continue to propel Infrastructure demands in Idaho over the next de- software in Idaho’s knowledge economy. This area is cade will help determine the quality of life for Idaho fundamental to the Idaho economy and shows why residence. Here are the three areas of focus: Idaho has the fastest growing software industry as a percent of the state’s gross domestic product. Re- • Tech infrastructure which includes internet band- gional approaches to growing north Idaho and east- width and data storage. As demands for con- ern Idaho’s software communities are taking place nectivity and mobility continue to explode with with Meet Up groups and other areas of focus. We the implement of existing and new technologies, anticipate that technology will be the top industry in continue pressure on mobile technologies and Idaho by 2025. cloud services and data centers grow. Strategies to grow tech infrastructure throughout Idaho’s regions and communities will in a large measure determine a regions success. IDAHO IS ONE OF THE FASTEST • Factories and commercial real estate will be a big GROWING SOFTWARE part of expansion. With region focus, niches will continue to be developed in advanced manufac- INDUSTRIES PER CAPITA IN turing and the shortage of commercial real estate THE UNITED STATES is hampering expansion and grow. • Several communities have housing shortages that are restricting growth and talent attraction. AgriScience & Natural Resources • Transportation and finding effective ways to deal According to a study by UI ag economists, the state’s with traffic congestion will be critical in the urban agricultural sector is directly and indirectly respon- areas of Idaho. sible for 14% of Idaho’s total GDP, 1 in every 7 jobs (128,200 total ag jobs) and 20% of total economic The data gathered within this report and the hours output ($27.8 billion). We must continue to find ways of analysis have indicated that Idaho is accelerat- to grow the agriculture space and look for synergies ing rapidly into a knowledge based economy. Jobs around research. The Magic Valley continues to be an that are considered cognitive and complex are not extraordinary area focused on agriculture and manu- only becoming more abundant, but also encompass facturing. Several research facilities are located in the the fastest growing emerging industries. These jobs Twin Falls area focus on product development. While have tremendous value to the state as well as the lo- Idaho is a richly abundant natural resource state, we cal communities. Developing talent, access to capital are feeling the push and pull of changes with urban and tech to market commercialization are recognized and rural living. as the three key drivers that will continue to push Ida- ho’s economic advancement. Energy & Power Major shifts in energy and power have taken place over the past decade. In Idaho and the region, power costs are some of the lowest in the nation.

Idaho has tremendous assets the Idaho National Lab- oratory being a multi billion dollar national laborato- ry and we have a state coalition with the Center for Advanced Energy Research to help find solutions to a variety of energy issues like storage and efficiency.

33 2018

ECONOMY

34 IDAHO KNOWLEDGE REPORT ECONOMY

EMPLOYMENT Idaho’s employment rate has been increasing steadily SHARE OF in all regions, and most notably in the Southwestern EMPLOYMENT part of the state. Since 2010, Idaho has added 82,000 Consumer Services Natural Resources new jobs. Job growth has recovered since a dip during Education Production the recession of 2008, and has surpassed pre-reces- Government Trade, Transportation, Utilities sion levels. Between 2015 and 2016 Idaho saw a 3.5% Healthcare Professional and Financial Services increase in jobs (23,127 new jobs), marking its fastest rate of job growth since 2006. The Southwestern re- 7.5% gion saw the most growth between 2010 and 2017 13.4% at 22%, followed by the Northern, South Central, and 11.6% Eastern regions, which all saw between 13% and 14% 8.6% growth over the same time period. In 2017, Idaho had the 7th fastest growing GDP in the U.S. Idaho’s three 6.3% 20.2% largest industries by GDP were real estate, rental and leasing; government; and manufacturing. Areas that 14.2% Idaho needs to continue to focus on include work- force development and innovative entrepreneurship. 18.2%

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics IDAHO HAS ADDED 82,000 NEW JOBS SINCE 2010

IDAHO EMPLOYMENT Why is this important? A strong and stable labor pool is the backbone of 1,000,000 a robust economy. Idaho’s labor force is its stron- REGION gest economic asset, and can be expected to grow through increased workforce development. Southwestern 750,000 Southeastern

South Central

Northern 500,000

Idahoans North Central

Eastern

250,000

0 2010 2012 2014 2016

Year

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

35 2018 ECONOMY

ANNUAL UNEMPLOYMENT

15%

REGION

Eastern

North Central 10% Northern

South Central

Southeastern

Southwestern 5% Percent Obese/Overweight Percent

0% 2010 2011 2012 2013 2014 2015 2016 2017

Years

Data Source: Bureau of Labor Statistics, 2017 Local Area Unemployment Statistics

TOTAL EMPLOYMENT BY TIER

400,000 TIER

Tier 1 Occupations Leadership and STEM jobs 300,000 Tier 2 Occupations Sales, teachers, administrative, manufacturing, and production

Tier 3 Occupations 200,000 Food service, protective services, retail positions, and

Employment personal care

100,000

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Data Source: Bureau of Labor Statistics

36 IDAHO KNOWLEDGE REPORT

AVERAGE WEEKLY WAGES

$1,000 REGION

Eastern $750 North Central

Northern $500 South Central Wage

Southeastern

$250 Southwestern

$0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Data Source: Bureau of Labor Statistics, 2017 State Occupational Employment and Wage Estimates

PERCENT OF TOTAL EMPLOYMENT BY TIER

400,000 TIER

Tier 1 Occupations Leadership and STEM jobs 300,000 Tier 2 Occupations Sales, teachers, administrative, manufacturing, and production

Tier 3 Occupations 200,000 Food service, protective services, retail positions, and

Employment personal care

100,000

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Data Source: Bureau of Labor Statistics

37 2018 ECONOMY

JOB GROWTH: NUMBER OF JOBS WITH PERCENT CHANGED OVER PRIOR YEAR

1,000,000 Region

Percent Change

750,000 3.5% 2.6% 2.9% 4.7% -1.1% 2.5%

Jobs 2.6% 3.9% -6.0% -1.3% 0.3% 1.1% 2.7% 1.5% 0.1% 0.7%

500,000

250,000 2000 2005 2010 2015

Years

Data Source: Bureau of Labor Statistics, 2017 Current Employment Statistics

INCOME Idaho’s per capita personal income has been increas- MEDIAN HOUSEHOLD ing steadily since the recession. Although median INCOME BY REGION individual and household income both rank below the national average, the cost of living in Idaho also remains lower than the national average, which pro- $50,000 vides workers with stronger purchasing power. Com- $46,163 $43,350 puter and mathematical jobs currently rank among $40,000 $42,715 $40,665 $41,699 the highest paying occupational categories in Idaho, $40,388 with a median wage of $30.69. $30,000 Why is this important? Both income and cost-of-living play a role in attract- Household Income $20,000 ing skilled labor to Idaho, and in keeping skilled labor- ers in Idaho long-term. Like employment growth, per capita income growth is a sign of a strong and stable $10,000 economy. Employees and job seekers are benefiting from the economic growth, and in turn are more able $0 to contribute to further this trend. For this reason, E NC N SC SE SW reducing poverty rates can represent an opportunity RegionRegion for additional long-term growth. Data Source: Census Bureau, 2016 5-Year Estimates

38 IDAHO KNOWLEDGE REPORT

POVERTY STATUS

Children All Ages

25%

24% 23%

21% 21% 21%

20% 19%

16% 16% 16% 16% Population

15% 15% 14%

10%

E NC N SC SE SW Region

Data Source: Census Bureau, 2016 5-Year Estimates

MEDIAN HOUSEHOLD INCOME

Idaho USA

$60,000

$40,000 Household Income

$20,000

$0

2010 2011 2012 2013 2014 2015 2016

Year

Data Source: Census Bureau, 2016 5-Year Estimates

39 2018 ECONOMY

MEDIAN PAY BY OCCUPATIONAL CATEGORY

$80,000

$60,000

$40,000

Annual Median Wage $20,000

$0

LEGAL

PRODUCTION MANAGEMENT SALES & RELATED

PROTECTIVE SERVICES FOOD PREP & SERVING

PERSONAL CARE & SERVICE COMPUTERS & MATHEMATICAL FARMING, FISHING, & LIBRARY ARCHITECTURE & ENGINEERING COMMUNITY & SOCIAL SERVICE CONSTRUCTION & EXTRACTION LIFE, PHYSICAL, & SOCIAL SCIENCE EDUCATION, TRAINING, & LIBRARY BUSINESS & FINANCIAL OPERATIONS HEALTHCARE SUPPORTOFFICE OCCUATIONS & ADMINISTRATIVE SUPPORT BUILDING, GROUNDS & MAINTENANCE TRANSPORTATION & MATERIAL MOVING INSTALLATION, MAINTENANCE, & REPAIR ARTS, ENTERTAINMENT, SPORTS, & MEDIA HEALTHCARE PRACTITIONERS & TECHNICAL

Data Source: Bureau of Labor Statistics, 2017 State Occupational Employment and Wage Estimates

CHANGE IN THE NUMBERS OF HOUSEHOLDS BY INCOME CATEGORY

400 0

REGION

200 Eastern 0 North Central

Northern

0 South Central

Southeastern

Southwestern -200 0 Change in the Number of Households

-400 0

<$10k $10K- $15k- $25k- $35k- $50k- $75k- $100k- $150k- $200k+ $15K $25k $35k $50k $75k $100k $150k $200k

Income

Data Source: Census Bureau

40 IDAHO KNOWLEDGE REPORT

PER CAPITA PERSONAL INCOME

USA IDAHO

$50,000 $49,246 $48,451

$46,494

$44,493 $45,000 $44,282

$42,461

$41,082 $40,277 $39,821 $39,376 $39,470 $40,000 $38,848 $38,144 $37,186

Personal Income Personal $35,720 $34,695 $35,000 $33,031 $33,296 $32,580 $31,357 $31,436 $31,726

$30,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

Data Source: Bureau of Economic Analysis, 2016

AVERAGE INCOME BY GENDER AND EDUCATION

$80,000

GENDER

Male $60,000

Female

Population $40,000

$20,000

$0

LESS THAN HIGH HIGH SCHOOL GRADUATE SOME COLLEGE OR BACHELOR’S GRADUATE OR SCHOOL GRADUATE (INCLUDES EQUIVALENCY) ASSOCIATES DEGREE DEGREE PROFESSIONAL DEGREE

41 2018 ECONOMY INNOVATION & ENTREPRENEURSHIP IDAHO RANKS HIGH AMONG Idaho ranks high among its western mountain state ITS WESTERN MOUNTAIN peers for patents awarded yearly. We are leading Wyoming, Montana, and Nevada. Nationwide, Idaho STATE PEERS FOR PATENTS had the 12th highest number of patents awarded per AWARDED YEARLY. WE capita in 2017 (24/7 Wall Street). ARE LEADING WYOMING,

Idaho’s thriving business environment is also very MONTANA, AND NEVADA. supportive for entrepreneurs trying to create new start-ups. According to the Kauffman Foundation, Idaho experienced a 48.6% rate of startup growth in employment over the previous 5 years.

Why is this important? Increased innovation can further bolster job growth by contributing to a strong and sustainable local job market. In addition, innovation helps to keep the mar- ket moving forward toward new sources of growth and value, preventing stagnation.

NUMBER OF FIRMS WITHOUT PAID EMPLOYEES AS A TOTAL OF FIRMS

100%

KEY

90% Firms with paid employees Firms without paid employees 80%

70% Percent of Total Firms of Total Percent

60%

50%

Ada Clark Butte Gem Valley Power Custer Cassia Latah Blaine Lemhi Idaho Lewis Boise Teton Bonner Jerome Elmore Payette Adams Canyon Lincoln Oneida Camas Gooding Franklin Madison Bannock Caribou Fremont Owyhee Shoshone Twin Falls Kootenal Benewah Boundary Minidoka Bingham Jefferson Bear Lake Nez Perce Clearwater Bonneville Washington County County

Data Source: US Census Bureau 2012 Survey of Business Owners

42 IDAHO KNOWLEDGE REPORT

NUMBER OF PATENTS EACH YEAR (BY STATE)

2,000

STATE 1,500 Idaho

Wyoming

1,000 Montana Patents Utah

Nevada 500

Average

0 2002 2004 2006 2008 2010 2012 2014

Year

Data Source: US Patent and Trademark Office

NUMBER OF FIRMS WITHOUT PAID EMPLOYEES AS A TOTAL OF FIRMS

100%

KEY

90% Firms with paid employees Firms without paid employees 80%

70% Percent of Total Firms of Total Percent

60%

50%

Ada Clark Butte Gem Valley Power Custer Cassia Latah Blaine Lemhi Idaho Lewis Boise Teton Bonner Jerome Elmore Payette Adams Canyon Lincoln Oneida Camas Gooding Franklin Madison Bannock Caribou Fremont Owyhee Shoshone Twin Falls Kootenal Benewah Boundary Minidoka Bingham Jefferson Bear Lake Nez Perce Clearwater Bonneville Washington County County

43 2018 ECONOMY

2017 TOTAL DEALS BASED ON 2017 TOTAL NUMBER OF DEALS BY DOLLAR AMOUNT BY INDUSTRY INDUSTRY SECTOR (147 TOTAL DEALS) ($2.4 BILLION) SECTOR Materials/Resources Healthcare Materials/Resources Healthcare Tech/Software Agriculture Tech/Software Agriculture Consumer/Retail Other Consumer/Retail Other

4.8% 4.4% 11.2% 5.8% 37% 47% 13.3%

23% 60.5% 7% 14% 19%

Data Source: Idaho Deal Flow Report 2017 published by the Idaho Technology Data Source: Idaho Deal Flow Report 2017 published by the Idaho Technology Council. Idahotechcouncil.org. Council. Idahotechcouncil.org.

$ VOLUME–AREA (BILLIONS)

Southwestern Idaho Northern Idaho Eastern Idaho

$20.00

$15.69

$15.00

$10.00 Billions

$5.00 $3.10 $2.09

$1.11 $0.35 $0.17 $0.02 $0.04 $0.05 $0.15 $0.08 $0.15 $0.00 2014 2015 2016 2017

Year

44 IDAHO KNOWLEDGE REPORT

PRIVATE PLACEMENT— PRIVATE PLACEMENT— NUMBER OF DEALS $ VOLUME (BILLIONS)

97

1.46

82 76 73 73 70 72

63 Deals

0.8 Billions of Dollars

0.55

0.43 0.4

0.22 0.2 0.17

2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017

YearRegion YearRegion

Data Source: Idaho Technology Council Deal Flow Report Data Source: Idaho Technology Council Deal Flow Report

AVERAGE DEAL SIZE $ AVERAGE DEAL SIZE BY BY REGION (MILLIONS) DEAL TYPE (MILLIONS)

$22.68 $59.00

Millions of Dollars $16.34 Millions of Dollars

$36.79

$10.02

$3.82 $6.00

S N E Average Private Placement Public M & A

RegionRegion Region

Data Source: Idaho Technology Council Deal Flow Report Data Source: Idaho Technology Council Deal Flow Report

45 2018

GOVERNANCE

46 IDAHO KNOWLEDGE REPORT GOVERNANCE CITY FINANCES Charges for services make up an increasing propor- REVENUE MINUS EXPENSES tion of average revenue among Idaho cities. However, property taxes remain the primary source of revenue. Intergovernmental revenue and sales taxes are the $150,000 two smallest revenue sources, although both have REGION also increased. Total revenues have increased steadi- $100,000 Eastern ly, as have total expenses. Average revenues and ex- North Central penses in 2012 were nearly double what they were in 1997. Reliable data is not yet available for the years $50,000 Northern after 2012, so it is not yet possible to tell how Idaho’s South Central cities have continued to recover financially from the $0 Southeastern recent recession. Southwestern

Revenue Expenses Revenue $50,000

AVERAGE REVENUES AND $100,000 EXPENSES IN 2012 WERE NEARLY DOUBLE WHAT $150,000 1997 2002 2007 2012

THEY WERE IN 1997 Years

Data Source: Government Finance Database developed by Pierson, Hand, and Thomp- son (2015) based on the Census Bureau’s original fiscal data.

Why is this important? As Idaho’s cities manage a growing population, they are faced with both increased expenses and in- creased revenues. Cities are challenged to maintain CITY FINANCES—REVENUES a stable balance between the two while upholding BY SOURCE & EXPENSES service levels for more people. Property taxes tend 1997 2002 2007 2012 to make up the most consistent revenue stream, but other revenue streams may pose more opportunity $1,500,000 for innovation. FUNDING SOURCE

CIVIC ENGAGEMENT Other revenues $1,000,000 Residents aged 45 to 64 years old make up the larg- Property tax

est sector of Idaho’s voting age population, followed Dollars Sales tax by those between the ages of 30 to 44. People aged InterGovernmental 18 to 29 years old make up the third largest sector, revenue $500,000 followed by those over the age of 65. Voters in East- Charges for services ern and Southeastern Idaho tended to participate Total expenditure more in elections, which those in Southwestern and South Central Idaho tended to participate the least. Participation in midterm and primary elections has $0 Expense Expense Expense Expense decreased somewhat since 2008, while participation Revenue Revenue Revenue Revenue in the general election has remained stable. Funding Source

Data Source: Government Finance Database developed by Pierson, Hand, and Thomp- son (2015) based on the Census Bureau’s original fiscal data.

47 2018 GOVERNANCE

Why is this important? Civic engagement helps to ensure that government remains representative of its constituents. A higher VOTING AGE POPULATION level of civic engagement is associated with a high- er quality of life within a community. Furthermore, participation in political systems helps to act as a measure of public confidence in those systems. Voter 400,000 engagement represents an opportunity for Idaho to 33.2% connect with its residents in order to develop policies and make political decisions that further the best in- 350,000 terests of the state as a whole.

300,000

24.9%

45 TO 64 YEARS OLD MAKE 250,000 21.4% UP THE LARGEST SECTOR 20.5%

OF IDAHO’S VOTING AGE 200,000 POPULATION

18 to 29 Years 30 to 44 Years 45 to 64 Years 65 Years and over

Data Source: Idaho Secretary of State

2016 VOTER SHARE REGIONAL VOTER PARTICIPATION Trump Clinton

100% 63% REGION

Eastern

North Central

75% 60% Northern

South Central

Southeastern

Southwestern 50% 58% Voter Participation (18+) Participation Voter Voter Participation (18+) Participation Voter

25% 55%

0% 53% 100,000 200,000 300,000 400,000 500,000 600,000 E NC N SC SE SW

Region Ballots Cast

Data Source: Idaho Secretary of State Data Source: Idaho Secretary of State

48 IDAHO KNOWLEDGE REPORT

VOTER PARTICIPATION IN PRIMARY ELECTIONS

1,250,000 40% KEY

Voting Age 1,000,000 Population 30% Registered Voters Primary Elections 750,000

20%

500,000 Voter Participation (18+) Participation Voter

10% 250,000

0 0%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Year

Data Source: Idaho Secretary of State

VOTER PARTICIPATION IN GENERAL ELECTIONS

1,250,000 70% KEY

Voting Age 1,000,000 Population 60% Registered Voters General

750,000 Midterm

50%

500,000 Voter Participation (18+) Participation Voter

40% 250,000

0 30%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Year

Data Source: Idaho Secretary of State

49 2018

PEOPLE

50 IDAHO KNOWLEDGE REPORT PEOPLE

PEOPLE Idaho has consistently ranked among the fastest lation growth has helped to bring economic opportu- growing states in the U.S. since 2010, along with nities to the forefront, such as business development, many of its Western peers. This rapid growth can be education, innovation, housing, and transportation. attributed both to natural increase and migration, How Idaho responds to these opportunities will un- with migration growing to become the majority share doubtedly influence future growth patterns. of growth in most recent years.

Regarding natural increase, Idaho is home to a rela- IDAHO HAS CONSISTENTLY tively young population. Idaho has a median age of 35.7, compared to a U.S. median age of 37.7. Idaho RANKED AMONG THE also has a robust birth rate. Regarding migration, Ida- FASTEST GROWING STATES ho has seen new residents move in for a number of IN THE U.S. SINCE 2010 reasons, ranging from its environmental beauty, to its low cost-of-living, to its rapid job growth.

Both natural increase and migration have also con- tributed to Idaho’s increasing urbanization. As both Idaho natives and migrants from other states move to Idaho’s cities to pursue economic and educational opportunities, they have seen an explosion of growth and development.

Why is this important? With this rapid growth comes change, and with change comes opportunity. Idaho’s population is be- coming larger and more diverse, expanding the skills POPULATION CHANGE and strengths of its workforce. This expansion, along with a rapid GDP growth and a low cost of business 40,000 operation, has made Idaho into an attractive spot for business, which in turn promotes further economic KEY growth (Wall Street Journal). Natural Increase Net Migration 30,000 Total Population Increasing urbanization, a relatively new phenome- Change non in Idaho, also contributes to economic growth by concentrating available human resources into an 20,000 easily accessible area for business. As businesses Population demand and increasingly complex set of skills from their workers, technological skills ranking among the 10,000 most important of these. Urbanization, along with ex- panding educational systems, also helps facilitate a supply for this demand. 0 2012 2013 2014 2015 2016 2017

Like other states that have experienced such growth, Year the state of Idaho now faces a number of new poten- tial opportunities to shape the direction of its future Data Source: Census Bureau, 2017 Population Estimates growth through policy and promotion. Idaho’s popu-

51 2018 PEOPLE

EDUCATIONAL ATTAINMENT

30.00%

GENDER

Male

Female

20.00% Percent

10.00%

0.00% LESS 9TH TO 12TH HIGH SCHOOL SOME ASSOCIATE’S BACHELOR’S GRADUATE OR THAN 9TH GRADE, NO GRADUATE COLLEGE, NO DEGREE DEGREE PROFESSIONAL GRADE DIPLOMA (INCLUDE DEGREE DEGREE EQUIVALENCY) Population 25 years and over

Data Source: Census Bureau, 2016 5-Year Estimates

NON-ENGLISH SPEAKERS WITH MORE THAN 1000 SPEAKERS (OTHER THAN SPANISH)

5,000

4,000

3,000

2,000 Number of Speakers

1,000

0

ARABIC GERMAN CHINESE FRENCH RUSSIAN KOREAN TAGALOG JAPANESE PORTUGUESE OTHER ASIAN VIETNAMESE OTHER NATIV... OTHER INDO... SERBO-CROAT... AFRICAN LAN... OTHER PACIFI... Languages (more than 1,000 speakers)

Data Source: Census Bureau, 2016 5-Year Estimates

52 IDAHO KNOWLEDGE REPORT

MEDIAN AGE NON-ENGLISH SPEAKERS

MEDIAN AGE Other Spanish

Eastern

23.20 52.70 North Central

28.80 50.60 Northern

40.10 48.10 South Central 25.2% 32.40 44.50 40147 Southeastern

33.20 39.70 Southwestern

31.50 54.00 74.8% 119097

Data Source: Census Bureau, 2017 Population Estimates Data Source: Census Bureau, 2016 5-Year Estimates

ANNUAL BIRTHS

25,000

REGION

20,000 Eastern

North Central

15,000 Northern

South Central Births 10,000 Southeastern

Southwestern

5,000

0

2012 2013 2014 2015 2016

Years

Data Source: Census Bureau, 2017 Population Estimates

53 2018

PLACE

54 IDAHO KNOWLEDGE REPORT PLACE

HOUSING The housing market is very strong in Idaho. Since RENTAL AFFORDABILITY 2011, home prices and home sales have both risen sharply, while home inventory has fallen at a similar APARTMENTS SINGLE FAMILY RESIDENCES pace. Increasingly more residential building permits 1300 REGION have also been granted during this time. Multi-family units have made up around 20 to 30% of new resi- Eastern 1200 North Central dential units being built each year. Northern

South Central 1100 Southeastern

Southwestern

SINCE 2011, HOME PRICES 1000 AND HOME SALES HAVE Median Rental Prices Median Rental BOTH RISEN SHARPLY, WHILE 900 HOME INVENTORY HAS FALLEN AT A SIMILAR PACE. 800

'13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18

Year (2000) Housing burden (the percentage of people paying more than 30% of their incomes toward housing Data Source: Zillow costs) ranges from 35 to 50% among homeowners across Idaho, and has decreased in all Idaho regions since 2013, when there was a peak. Among renters, housing burden has remained more even, between HOUSING AFFORDABILITY 30 and 45% over this time period. Housing afford- ability (calculated as the ratio of median family in- come to median home price) increased from 2010 to 0.42 REGION 2014. Then, started to level off or decrease in many Eastern regions from 2014 to 2016. North Central

0.38 Northern

Why is this important? South Central Housing is a vital supporting factor for a growing Southeastern workforce. If houses are not available, or affordable, Southwestern economic growth can be limited. Idaho’s housing 0.34 market has been a primary source of growth to date, and can continue to be in the future. A decreasing home inventory signals an opportunity to stimulate 0.30 new housing development, which can play an import- Median Family Income / Median Home Price Income Median Family ant role in maintaining a healthy balance between median home prices and median family income, re- ducing housing burden, and stimulating further eco- 2010 2012 2014 2016 nomic growth. Year

Data Source: Zillow

55 2018 PLACE

TRANSPORTATION The large majority of Idahoans drive to work. The number of vehicle miles driven per capita across ELECTRICITY PRICES (CENTS/KWH) the state has remained stable since 2007, though in- creasing slightly in 2015 and 2016. Gas prices have also remained stable over time, although they dipped 15 significantly in 2015 and 2016. Mean travel times have KEY consistently increased across most regions, but re- U.S. Average main relatively low. Idaho 10 10.1 Numbers of cross county commuters in Idaho have stayed about the same. Transit ridership has remained 7.93 the same or decreased in most regions. The percent Price (Cents) Price 6.03 of people who commute by bicycle has decreased in 5 the majority of Idaho’s regions.

Why is this important? Traffic congestion and commuter safety can affect 0 the economy by wasting employee time, increasing

shipping costs, and creating schedule delays. Current- INDUSTRIAL RESIDENTIAL COMMERCIAL ly, commuters in Idaho face reasonable travel times and safe travel in general, but urban areas are see- Data Source: Moody’s Economy.com ing an increase in mean travel times, creating stress and highlighting the need for transportation planning and development. Increasing numbers of cross coun- ty commuters can also represent increasing numbers of rural and suburban Idahoans commuting to ur- BIKE ACCIDENTS ban centers for employment opportunities. As Idaho grows, these figures represent more opportunities to 400 enhance Idaho’s transportation capacity. ACCIDENT SEVERITY

300 Fatalities

Possible Injuries

Serious Injuries

Total Bicycle Crashes 200 Visible Injuries

100 Number of Bicycle Accidents Number of Bicycle

0

2008 2010 2012 2014 2016

Year

Data Source: Idaho Transportation Department

56 IDAHO KNOWLEDGE REPORT

HOUSING BURDEN

OWNERS RENTERS

50% REGION

Eastern

North Central 40% Northern

South Central

Southeastern 30% Southwestern

20%

10%

0%

E NC N SC SE SW E NC N SC SE SW

Data Source: American Community Survey, 1 year estimates from the Census Bureau

HOME INVENTORY TRENDS

16,000 STATE

Idaho

14,000

12,000

Home Inventory Over Time Over Home Inventory 10,000

8,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Year

Data Source: Zillow

57 2018 PLACE

MEDIAN PRICE TRENDS HOME SALE TRENDS

2,800 REGION STATE

200,000 Eastern Idaho

North Central

Northern 2,400

South Central 175,000 Southeastern

Southwestern

2,000 150,000 Median Home Price Home Inventory Over Time Over Home Inventory

125,000 1,600

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year (2000’s) Year

Data Source: Zillow Data Source: Zillow

PERCENTAGE OF AVERAGE HOUSEHOLD SIZE MULTIGENERATIONAL HOUSEHOLDS

5% 2.8 REGION REGION

Eastern Eastern

North Central North Central 2.7 Northern Northern 4% South Central South Central

2.6 Southeastern Southeastern

Southwestern Southwestern

2.5 3% Average Household Size Average

2.4 Percentage of Multigenerational Households of Multigenerational Percentage

2.3 2%

2010 2012 2014 2016 2010 2012 2014 2016

Year Year

Data Source: American Community Survey, 1 year estimates from the Census Bureau

58 IDAHO KNOWLEDGE REPORT

VACANCY RATES

REGIONAL HOME VACANCY REGIONAL RENTAL VACANCY

15% REGION

Eastern

North Central

Northern

South Central 10% Southeastern

Southwestern Vacancy Rates Vacancy

5%

0%

2010 2012 2014 2016 2010 2012 2014 2016 Year

Data Source: U.S. Federal Housing Finance Agency

RESIDENTIAL BUILDING PERMITS

20,000 HOUSING TYPE 100% Single Family 15,000 90% Multi-Family Units

80% Multi-Family % of Total Multi-Family % of Total 70%

10,000 60%

50%

40%

5,000 30%

20%

Total Number of Units in Residential Building Units Number of Units in Residential Total 10%

0 0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Data Source: Retrieved from Rand State Statistics and originated from the Census Bureau

59 2018

SOCIETY

60 IDAHO KNOWLEDGE REPORT

Why is this important? Math and reading proficiency scores are directly con- nected to a student’s ability to succeed, both in high- er education and in the workforce. In addition, the SOCIETY ability to provide these skills to students with diverse backgrounds is connected with a stronger overall workforce. As Idaho’s economy continues to grow PREPARING FOR and evolve toward cognitive and complex industries, ECONOMIC SUCCESS and skilled jobs begin to take up a larger percentage Math and reading proficiency scores among Ida- of the labor market, universities, colleges, and techni- ho students have increased from 2015 to 2017. This cal schools will continue to play an important role in is remarkable when recognizing that Idaho’s public meeting this demand. school districts, particularly those in and around cit- ies, have also seen rapid enrollment growth over the Furthermore, as online learning tools become more last 15 years. In addition, Idaho public schools have important in public education, access to internet can seen an increase in ethnic diversity, particularly from play a significant role in student’s success. Internet Hispanic or Latino students, corresponding with an availability can also increase worker productivity increase in English Language Learners (ELL). Idaho’s and flexibility. In particular, improved internet access high school graduation rates, as well as college go-on would allow rural workers to potentially increase their and graduation rates, remain an absolute priority as participation in the workforce through decreased Idaho moves forward. transportation times and increased work-from-home opportunities. Continued deployment of high-speed Idaho’s urban areas have significantly better access internet remains a priority in rural areas. to the internet, including faster download speeds, than its rural areas. This means that urban students URBAN STUDENTS AND and employees have better access to technological learning and working tools than their rural counter- EMPLOYEES HAVE BETTER parts. ACCESS TO TECHNOLOGICAL LEARNING

2017 PERCENT OF STUDENTS SCORING PROFICIENT OR ABOVE ON ISAT ELA

80%

70%

60%

50%

40%

30% Scoring Proficiency Scoring 20%

10%

0%

GRADEGRADE 4 8 GRADEGRADE 4 8 GRADEGRADE 4 8 GRADEGRADE 4 8 GRADEGRADE 4 8 GRADEGRADE 4 8 GRADEGRADE 4 8 GRADEGRADE 4 8

HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL HIGH SCHOOL White Hispanic or Black/African Asian or Pacific American Indian or Native Hawaiian/ Two or Student Latino American Islander Alaskan Native other Pacific Islander more races Average

61 2018 SOCIETY

PERCENT OF CHILDREN AGE 3-4 NOT ENROLLED IN ANY TYPE OF SCHOOL

90%

80%

70%

60%

50%

40%

30% Annual Median Wage

20%

10%

0%

ADA IDAHO LATAH CASSIA TETON ELMOREJEROME BLAINE POWER CARIBOU OWYHEE BONNERMADISON BINGHAM CANYON KOOTENAI BANNOCK BENEWAH FREMONT FRANKLIN MINIDOKA NEZ PERCE JEFFERSON BEAR LAKE TWIN FALLS BONNEVILLE CLEARWATER WASHINGTON County

EDUCATIONAL ATTAINMENT BY RACE

100.00% EDUCATION

High School (or higher) Bachelors Degree (or higher) 75.00% Less than High School

50.00% Percent

25.00%

0.00%

WHITE WHITE (NOT BLACK OR AMERICAN ASIAN NATIVE TWO OR HISPANIC (ALONE) HISPANIC AFRICAN INDIAN OR HAWAIIAN OR MORE OR LATINO OR LATINO) AMERICA ALASKA NATIVE OTHER PACIFIC RACES ORIGIN ISLANDS Race

Data Source: State Board of Education

62 IDAHO KNOWLEDGE REPORT

DEGREES BY TYPE PER YEAR COLLEGE ENROLLMENT BY EDUCATION TYPE 9100 8416 8146 Bachelor’s 7614 8100 7629 Associate’s 100,000 7344 KEY 7083 6962 Master’s Lower Division 7100 6552 Doctorate’s Upper Division

Graduate 6100 10,000 Pharm-D 5164 4943 4821 4943 Law 5100 4575 4018 WWAMI Medical

4100 1,000 IDEP Dental 3347

3051 People Total Academic Number of Degrees 3100 Professional Technical

Total C&U FTE 2100 100 1104 1079 911 960 989 960 949 908 1100 298 313 324 379 367 352 381 326

100 10

2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 2017 Year Year

Data Source: National Center for Education Statistics Custom Data Files Data Source:

EDUCATIONAL ATTAINMENT 4TH GRADE MATH PROFICIENCY 92.5% 100%

Below Basic 15.30% 18.50% 18.30% Basic

90.0% Proficient 80% Advanced

28.10% 28.60% 28.30%

87.5% 60%

85.0% 40%

Proficiency Percent Proficiency 35.40% 33.50% 32.60% Graduated from High School from Graduated

82.5% 20%

21.20% 19.60% 20.80%

80.0% 0% NC SE N E SW SC 2015 2016 2017 Region Year

Data Source: State Board of Education

63 2018 SOCIETY

ARTS AND CULTURE Idaho’s arts and culture industry is expanding rapidly. Idaho ranked among the top 10 states for both value RANKED AMONG THE TOP added growth and employment growth. These mea- sures, provided by the Bureau of Economic Analysis, 10 STATES FOR BOTH VALUE point to a growing industry, with significant potential ADDED GROWTH AND for increased added value to Idaho’s economy in the EMPLOYMENT GROWTH near and distant future.

Why is this important? Idaho’s arts and culture industry acts as both a busi- ness generator and an attractor for people consid- ering Idaho as a place to work and live. Idaho resi- dents have access to performing arts centers which provide access to major performances from around the world. The arts and culture industry also encom- passes advertising, promotion, and design. These industries stimulate economic growth and develop- ment, and provide employment opportunities. Fur- thermore, arts and culture enhance quality of life by providing a sense of community, creativity and ex- pression for residents.

ARTS EMPLOYMENT ARTS INDUSTRY VALUE ADDED AND COMPENSATION

780,000 25,500 (LOG OF 1000S OF DOLLARS)

760,000 REGION 7.90 6.35 24,500 Total Industry Employment 740,000 REGION 6.30 ACPSA 7.80 Employment Total Industry 23,500 720,000 Value Added 6.25 Total Industry 7.70 Compensation 700,000 22,500 ACPSA Value 6.20 Added 680,000 7.60 ACPSA Compensation 21,500 6.15 660,000 7.50 Dollar Earnings 6.10 640,000 20,500

Total Industry Employment Industry Total 7.40 620,000 6.05 19,500 600,000 7.30 5.95

580,000 18,500 7.20 5.90

2011 2001200220032004200520062007200820092010 2012201320142015 2011 2001200220032004200520062007200820092010 2012201320142015 Year Year

Data Source: Americans for the Arts

64 IDAHO KNOWLEDGE REPORT

QUALITY OF HEALTH Idaho’s adult obesity rate decreased from 29.6 to 28.6 % between 2013 and 2015. However, adolescent FLU VACCINATIONS obesity increased from 9.6 to 11.1 % during this same BY REGION 2012-2018 period. 55% REGION The percent of Idaho adults vaccinated for season- al flu decreased from 66.2% to 64.2% between 2013 50% Eastern North Central and 2015. Older adults and women were more like- Northern ly to receive flu shots than younger adults and men. 45% South Central Idaho’s age ratios for residents with health insurance Southeastern changed little during this time, but adults aged 18 to Southwestern 24 and adults over the age of 75 remained less likely 40% than other adults to have health insurance. Rate Vaccination

Why is this important? 35% Medical costs and overall resident health can have a significant impact on the economy by affecting work- 30% force productivity and labor participation. Individu- 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 als without health insurance are less likely to receive Years ongoing treatment, making them more vulnerable to medical issues and emergencies, and increasing the Data Source: Idaho Division of Public Health associated cost burden.

OVERWEIGHT AND OBESE ADOLESCENTS (GRADE 9-12)

30.0%

15.3% 15.7% KEY 25.0% Obese 11.6% 13.4% 13.7% 11.8% Overweight

20.0% 11.3% 10.6%

15.0%

Population 10.9% 11.1% 9.6% 9.2% 10.0% 8.7% 7.2% 7.4% 7.2%

5.0%

0.0%

2001 2003 2005 2007 2009 2011 2013 2015

Year

Data Source: California Health Interview Study

65 2018 SOCIETY

IDAHO OBESITY RATE BY GENDER (OVER 18)

50%

45% KEY

Male Obese 40% Female Obese

35% Female Overweight

Male Overweight 30% Percent Obese/Overweight Percent

25%

20% 2011 2012 2013 2014 2015 2016

Years

Data Source: California Health Interview Study

INSURED BY AGE GROUP 2016

150,000

KEY

Male 100,000 Female Population

50,000

0 Under 6 6 to 17 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75+

Age Group

Data Source: ACS

66 IDAHO KNOWLEDGE REPORT

SAFETY Idaho’s overall crime rate, as well as its violent crime VIOLENT CRIMES rate, has decreased steadily across regions since 2010. Likewise, Idaho’s number of public safety officers has increased across all regions since 2002, in order to REGION accommodate the safety needs and demands of a 70 growing populace. Idaho maintains a sound reputa- Eastern tion for public safety, and crime rates support this North Central

Northern reputation when compared with national rates. 60 South Central

Southeastern

Southwestern IDAHO MAINTAINS A SOUND 50 REPUTATION FOR PUBLIC

SAFETY, AND CRIME RATES people violent crimes per 1,000 40 SUPPORT THIS REPUTATION WHEN COMPARED WITH $0 NATIONAL RATES. 2010 2011 2012 2013 2014

Year

Data Source: IPI data: retrieved from Rand State Statistics and originated from FBI. Why is this important? Public safety is vital for a sense of community. Public fear has a detrimental impact on economic growth and stability by pushing people and businesses away ALL CRIMES from the area. Idaho’s public safety officers have done an exemplary job of maintaining a sense of public safety, and Idaho’s local governments have REGION been wise to increase numbers of officers as popula- 70 tions increase. Eastern North Central

Northern 60 South Central

Southeastern

Southwestern 50

Total Offenses per 1,000 people per 1,000 Offenses Total 40

$0

2010 2011 2012 2013 2014

Year

Data Source: IPI data: retrieved from Rand State Statistics and originated from FBI.

67 2018 SOCIETY

VIOLENT CRIMES BY TYPE

Region

E NC N SC SE SW

100% CRIME TYPE

Assault

75% Manslaughter

Murder

Rape

Robbery 50% Percent of Total Percent

25%

0% 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2012 2012 2012 2012 2012 2012 Year

Data Source: IPI data: retrieved from Rand State Statistics and originated from FBI.

PUBLIC SAFETY OFFICERS

400 REGION

Eastern

300 North Central

Northern

200 South Central

Southeastern Public Safety Officers Public Safety Southwestern 100

0

E NC N SC SE SW E NC N SC SE SW E NC N SC SE SW

Region

Data Source: Retrieved from Rand State Statistics and originated from the Census Bureau

68 IDAHO KNOWLEDGE REPORT ACKNOWLEDGEMENTS

Special thanks for the financial support as well as work provided by:

ORGANIZATION ACKNOWLEDGEMENTS

Battelle Energy Alliance Idaho STEM Action Center c308 Marketing Idaho Technology Council

Thank you for the support and work provided by the following organizations:

Idaho Department of Labor Idaho Department of Commerce Idaho Policy Institute Idaho Economic Development Association and its members HP -Idaho policy Institute

69 2018 APPENDIX DATA

TOP 50 HOT JOBS IN IDAHO

RANK TITLE 2016 2026 GROWTH % WAGES STEM

1 Software Developers, Applications 2027 2639 30.2% $ 41.19 STEM 2 Registered Nurses 13180 17045 29.3% $ 30.79 STEM 3 Medical and Health Services Managers 1873 2357 25.8% $ 40.00 STEM 4 Construction Managers 1507 1891 25.5% $ 37.30 5 Nurse Practitioners 659 890 35.1% $ 48.96 STEM 6 Physician Assistants 616 818 32.8% $ 47.89 STEM 7 Health Specialties Teachers, Postsecondary 801 1033 29.0% $ 35.45 STEM 8 Information Security Analysts 515 671 30.3% $ 39.39 STEM 9 Pharmacists 1564 1825 16.7% $ 58.42 STEM 10 Industrial Machinery Mechanics 2376 2927 23.2% $ 25.26 11 Market Research Analysts and Marketing Specialists 1408 1798 27.7% $ 24.18 12 Physical Therapists 887 1120 26.3% $ 36.86 STEM 13 Loan Officers 2776 3339 20.3% $ 26.59 14 Respiratory Therapists 603 912 51.2% $ 27.12 STEM 15 Healthcare Social Workers 599 751 25.4% $ 26.92 16 Industrial Engineers 1111 1282 15.4% $ 43.28 STEM 17 Occupational Therapists 426 534 25.4% $ 39.73 STEM 18 Administrative Services Managers 1491 1726 15.8% $ 32.24 19 Diagnostic Medical Sonographers 304 411 35.2% $ 36.29 STEM 20 Management Analysts 1758 2026 15.2% $ 31.11 20 Heavy and Tractor-Trailer Truck Drivers 12279 14747 20.1% $ 19.08 22 Accountants and Auditors 4193 4800 14.5% $ 28.30 23 Cost Estimators 1136 1337 17.7% $ 26.49 24 Interpreters and Translators 2034 2676 31.6% $ 17.27 25 Training and Development Specialists 1131 1342 18.7% $ 25.30 26 Radiologic Technologists 901 1108 23.0% $ 26.42 STEM 27 Nursing Instructors and Teachers, Postsecondary 257 335 30.4% $ 31.58 STEM 28 Maintenance Workers, Machinery 899 1118 24.4% $ 20.85 29 Health Educators 551 666 20.9% $ 25.70 30 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 6348 7260 14.4% $ 24.86 31 Surgical Technologists 669 844 26.2% $ 22.80 STEM 32 Sales Engineers 203 245 20.7% $ 45.22 STEM 33 Operations Research Analysts 418 523 25.1% $ 29.59 STEM 34 Cardiovascular Technologists and Technicians 350 460 31.4% $ 28.46 STEM 35 Speech-Language Pathologists 432 528 22.2% $ 34.56 STEM 36 Secondary School Teachers, Except Special and Career/Technical Education 5055 5810 14.9% $ 23.04 37 Real Estate Sales Agents 884 1076 21.7% $ 21.57 38 Bus and Truck Mechanics and Diesel Engine Specialists 1701 2058 21.0% $ 18.81 39 Financial Analysts 414 492 18.8% $ 33.69 40 Social and Community Service Managers 937 1112 18.7% $ 23.65 40 Insurance Sales Agents 1475 1750 18.6% $ 20.94 40 First-Line Supervisors of Production and Operating Workers 3814 4338 13.7% $ 25.72 43 Education Administrators, Postsecondary 998 1137 13.9% $ 36.83 44 First-Line Supervisors of Mechanics, Installers, and Repairers 2551 2898 13.6% $ 27.68 45 Physicians and Surgeons, All Other 1136 1301 14.5% $ 56.46 STEM 46 Managers, All Other 1296 1466 13.1% $ 38.18 47 Middle School Teachers, Except Special and Career/Technical Education 2623 3013 14.9% $ 24.18 48 Elementary School Teachers, Except Special Education 7408 8504 14.8% $ 21.52 49 Web Developers 831 1008 21.3% $ 22.43 STEM 50 Operating Engineers and Other Construction Equipment Operators 2203 2557 16.1% $ 20.88

70 IDAHO KNOWLEDGE REPORT

AVERAGE EARNINGS REGIONAL TRENDS PER JOB (2017)

TECH JOBS ALL JOBS 2010 JOBS 2018 JOBS CHANGE % CHANGE

Idaho $102,106 $49,880 Idaho 666,065 795,626 129,561 19.5%

Northern $75,467 $46,061 Northern 83,629 97,094 13,465 16.1%

North Central $67,996 $47,590 North Central 45,050 47,826 2,776 6.2%

Southwestern $113,570 $53,554 Southwestern 296,527 367,871 71,344 24.1%

South Central $82,496 $43,403 South Central 86,477 100,789 14,312 16.6%

Southeastern $88,304 $44,750 Southeastern 62,924 69,041 6,117 9.7%

Eastern $76,822 $47,726 Eastern 87,246 102,243 14,997 17.2%

United States $123,063 $65,369 United States 137,918,676 156,893,765 18,975,089 13.8%

Region Region

HIGH TECH COGNITIVE COMPLEX BY REGION

GROWTH 2010 JOBS 2018 JOBS CHANGE % CHANGE 2016 2026 GROWTH RATE

Idaho 38,945 46,747 7,802 20.0% Northern 8913 10797 1884 21.1%

Northern 3,647 4,601 954 26.2% North Central 4074 4529 455 11.2%

North Central 1,246 1,682 436 35.0% Southwestern 41275 49859 8584 20.8%

Southwestern 24,821 28,134 3,313 13.3% South Central 6520 7683 1163 17.8%

South Central 2,106 2,576 470 22.3% Southeastern 6645 7613 968 14.6%

Southeastern 3,160 4,113 953 30.2% Eastern 9897 104463 566 5.7%

Eastern 2,813 3,038 225 8.0% United States 77324 90944 13620 17.6%

United States 10,831,176 13,135,849 2,304,673 21.3%

Region Region

71 Consistently ranked by The Wall Street Journal, Kiplinger’s, Forbes and others as oneof the top 10 locations for business and family in the U.S., Idaho is the ideal setting for companies in search of an affordable, pro- business environment and a superior quality of life for employees and prospective employees.