Empire Airlines: North Idaho Was Best Relocation Choice

Sept. 1, 2011 – Freight airline says being wooed away from Washington by quick-acting corporate relocation team was best move for costs, growth, and quality of life.

When Empire Airlines President and CEO Tim Komberec first began to look at corporate relocation and expansion in 2003, he wasn’t even considering Coeur d’Alene, Idaho. Well-courted by the much larger, international airport just over the border in Spokane, Washington with a longer list of facilities and at first glance, services, Komberec’s focus was drawn away by a phone call.

“I hadn’t considered Coeur d’Alene at all until they contacted us,” said Komberec.

“They” were airport manager Greg Delevan and Jobs Plus, a.k.a. the Coeur d’Alene Area Economic Development Corporation. Soon other players eagerly and efficiently combined to compile a full proposal to address Empire’s concerns and offer incentives, including the State of Idaho, Kootenai County, and of course the airport’s board of directors. Coeur d’Alene Airport (COE) is owned by the county and operates under a local advisory board.

Komberec said the nonprofit Jobs Plus’ full range of corporate relocation services provided Empire not only with more information about the relative benefits of relocating his business operations to North Idaho, they also surprised him. Komberec said Idaho’s team showed more flexibility, high energy, and quicker action putting together a proposal which met Empire’s needs – for both corporate and airport facilities. They instilled in him a confidence that Coeur d’Alene could deliver, as compared with competing Spokane, in what Komberec called “a horse race” between the two cities.

In addition to meeting Empire’s needs, Idaho proved to be a better choice financially.

“Idaho is still cheaper than Washington State is, from a taxing and regulatory standpoint,” said Komberec, who added he saved 60 jobs and soon developed 40 more as a result of Empire’s location choice. Empire now has 293 employees and plans to hire more.

Empire’s growth has been steadily impressive. What began in 1977 as modest Clearwater Flying Service in Orofino, Idaho soon grew into a major corporation with operations all over the western United States and British Columbia. Throughout its history Empire’s business has included fire patrol, transport, air ambulance, air pollution monitoring, charters and flight instruction, commuter service, aircraft sales and maintenance. Its current focus is air freight, including major contracts with such companies as Fedex and Horizon Air.

Komberec was so impressed with Jobs Plus’ business relocation services he became a member, joining the board of directors in 2010. A dedicated believer in the broad benefits of active regional business development, he is also on Idaho’s Economic Advisory Board, which gives grants for economic development and job creation, and active in COE operations as a member of boards of the growing airport and the Regional Air Cargo Carriers Association.

Finally, Komberec said a factor that can’t be overlooked is quality of life. Compared with other corporate relocation options, this successful business owner believes Coeur d’Alene’s natural beauty and Idaho’s business-friendly and comfortable lifestyle continually confirm his choice.

“Every day I get to drive out here to go to work, I don’t regret it.”

With the world at his feet, he chose North Idaho

A testimonial to north Idaho’s quality of life

Ground Force Manufacturing is one of North Idaho’s best success stories. It was born when President and CEO Ron Nilson bought a failing company in Post Falls, Idaho at the end of 2000. The company was near bankruptcy; Nilson saved 20 jobs when he purchased it and it wasn’t long before he had turned things around. The manufacturer of mining and construction support equipment is in the process of expanding to a total of 265 employees.

In this case, it was Nilson and his wife who did the relocating. They thought they could run it from their home in Seattle, Washington, but Nilson said the more they were exposed to north Idaho’s economic climate, quality of life, and astounding beauty, they knew they wanted to move. They have quickly become intricately involved in the Coeur d’Alene and Post Falls community, both socially and economically, so well known that they can’t go anywhere without being enthusiastically pat on the back.

Nilson has a choice; he could be in England, for example, where the company has 15 employees. They could be almost anywhere in the world; Ground Force provides equipment and services in more than 40 countries, and counting.

“Today 75 percent of our sales are overseas and none of these sales are in Idaho. We could have built our products anywhere in the USA, or the world,” Nilson told Jobs Plus.

Ground Force could certainly afford to. Sales volumes overall in the last decade have laughed in the face of recession, growing 500 percent. So why did Nilson come to North Idaho, and why does he stay?

“We continue to stay in Idaho for the quality of the people and workforce, the low operations costs -utilities, workers’ compensation and other taxes, etcetera. We’re close to an airport and freeways, so it’s easy to move our people and products,” Nilson replied. “And oh yeah, this is a great place to live, work and play! It’s just so beautiful.”

Nilson adds that people in north Idaho “know how to work.” As a business owner comparing experiences from different states, his impression of Idaho government is that it “truly wants to help (businesses).” He calls his family’s decision to move to the Coeur d’Alene/Post Falls area one of the best decisions of their lives.

Relocating Businesses: A Jobs Plus checklist

Relocating your business can be daunting, but a methodical, multimodal approach carves the decision into digestible pieces. This checklist of considerations can help ensure success.

Few decisions are as monumental to corporate growth and health as relocating businesses. While some factors are unique to each corporation, industry, and business product or service, careful consideration of other factors can help maximize the success of site selection. After all, business relocation is not just a matter of packing and moving trucks. Experienced business owners and managers know an ideal corporate relocation choice will include a business-friendly economic climate and low costs, educational opportunities and a labor-ready workforce, a quality of living which will attract and keep the desired workforce, and other services and resources which will keep the company well supplied for a long and prosperous future.

Careful groundwork lays the foundation for successfully relocating businesses, whether in business-friendly Idaho or elsewhere. Helpful things to consider when selecting and comparing possible relocation sites may include:

Planning: Develop an outline of criteria specific to the business, such as proximity to raw materials and other resources, energy needs, market access, and skilled labor pool.
Initial/fixed costs: Costs such as construction, leases, and freight.
Transportation: Proximity to airports and highways (is visibility to the public required?), with safe delivery and vehicle access.
Infrastructure/services: This includes ease of obtaining applicable permits and infrastructure sufficiency for potential growth. How easy is the local council or commission to work with? Do you have ready help navigating those processes, such as what the nonprofit Coeur d’Alene Area Economic Council/Jobs Plus offers?
Referrals and testimonials: Speak to leaders of successful businesses which have already relocated to a preferred location or know the area well. Ask about their experiences, insights, and about the quality of life and ease of doing business in that location.
Government and incentives: What business relocation incentives do the local government and state offer? What is the tax structure – be careful to look for non-income tax “catches,” such as Washington’s business and occupations tax, or high property and real estate taxes.
killed workforce: What training facilities are nearby, both private and public? Is there an adequate labor pool to fit your needs? Are there colleges, low cost skills training, and customized workforce training opportunities available for worker retraining and recruitment?
Cost of living: How well does a dollar stretch? Will your available salaries match the desired or expected standard of living possible in this location, such as costs and availability of housing and insurance rates?
Quality of life, community: Will your workers and managers like living here? People/friendliness, community attitudes toward the business, recreational opportunities, healthcare access, daycares and schools – all these contribute toward a stable business and workforce. They can be assessed through visits and requested referrals from business managers already in the area.

Few come who do not find North Idaho wins hands-down for an appealing combination of quality of life, striking natural beauty, low costs and steady growth, and the state’s eagerness to attract new business. Idaho is also known for its friendly, but straightforward approach to personal interaction. Jobs Plus can help you evaluate your needs and North Idaho’s ability to meet them, with a transparent and direct style you can rely on for solid information and quick response to your inquiries.

Why Idaho relocation makes “cents”

Forbes ranks Idaho in top 10 for economic climate – lower costs, balanced budget, and population growth exceeding national average combine to make north Idaho ideal relocation choice.

Outsiders are too often unaware of Idaho; tell outsiders you live here and they’ll often say, “Iowa?” or, “You mean there’s more than potatoes?” Yes, far more than potatoes, especially for businesses looking to relocate.

Good rankings

Did you know Forbes ranks Idaho in the top 10 states nationwide for business and economic climate? The comparably low Idaho cost of living makes Idaho relocation an easy choice. A few more of the state economic rankings may pleasantly surprise those considering corporate relocation:

Number two in patents issued per capita
Second lowest energy costs in the nation
Number seven for renewable energy source electricity generation
Predictable tax and regulatory policies
Lowest crime rate in the western United States
Best overall change in the poverty rate
Best vacation value
Low business costs

Word is spreading. According to the 2010 U. S. Census Idaho’s urban population growth rate is well above the national average, and the North Idaho/Coeur d’Alene/Post Falls area specifically is above the statewide rate of 21.1 percent. Local economic development organizations, the state’s Department of Commerce, and cities combine to create a set of Idaho relocation services which can make corporate relocation seamless.

State incentives and qualified workforce

Idaho’s governor and legislature are decidedly pro-business, with a consistent record of tax and business incentives, a healthy state rainy day fund to avoid raising taxes (unlike other states during recessionary times), and no “hidden” taxes in addition to income tax which make corporate tax burdens heavier than at first they may appear.

One “plus” which few other states have in this national and global economy is a balanced budget. That’s right; Idaho is debt-free. It’s state law.

State incentives include:

Reimbursement up to $3,000 for costs of training a new employee or retaining one facing permanent layoff.
State skills training programs tailored to corporate needs
On-site consultations from state workforce experts
Tax credits for investments, new job creation, real property improvement, and research; exemptions; and tax caps for large businesses

“The state agencies have been very business-friendly. We looked at a lot of places – New Hampshire, Colorado, and we had been located in California. Idaho is by far the best choice. It’s been the reason we’ve been very successful,” said Dr. Lorna Finman, Stanford physicist and owner of LCF Enterprises in Post Falls.

In addition to state training programs, North Idaho is home to more customized and on-the-job training from private, experienced sources such as The Ketchum Group in Coeur d’Alene. North Idaho (community) College is based in Coeur d’Alene and Post Falls with sizable professional-technical and workforce education elements, and Lewis and Clark State College and University of Idaho have branches in Coeur d’Alene. A new professional-technical high school was approved by voters in 2010. The Kootenai Technical Education Campus, or KTEC, is scheduled to be completed in 2013.

Quality of Life

Health care access is an important factor in the corporate relocation analysis. North Idaho has several hospitals (full-service and specialty), urgent care clinics, and a broad supply of medical professionals to service its population. If the colleges’ nursing programs are any indication, growth shows no sign of slowing in the local medical profession, likely because the population itself continues to grow steadily.

Last but hardly least is Idaho’s excellent quality of life outside of work. North Idaho is known as a nature-lover’s paradise; national and state parks abound, with many trails even within city limits for walking, biking, ATV rides, cross-country skiing, and horses. Three ski resorts are within an hour’s drive. A five-star lake resort with the world’s longest floating boardwalk, and a floating green for golfers is centered in Coeur d’Alene. Many restaurants, wineries, shops, a local airport, and border proximity to tourist destinations in Canada, Montana, Oregon, and Washington make the area a tourist hot-spot and a recreational haven for happy locals.

Overall “transplants” often find North Idaho a pleasant surprise. A wide variety of people live and move here, with varying opinions, ways of life, and personal backgrounds. The common thread is a desire for a strong, active, and family-based sense of community. This is one of those places where strangers still band together to help a neighbor in need; and while cities and professional organizations are flexible, service-oriented, and professionally skilled, “Coeur d’Alene Casual” is the preferred mode of dress.

Ask a business who has relocated here; you won’t hear regrets.

Sources: Idaho Department of Commerce, U.S. Census Bureau, Coeur d’Alene Press