Business news

1. Harpers leads parade of companies

The Inland Northwest, which traditionally has had relatively few big-name employers, added some nationally recognized companies in 1994. Harpers Inc. _ a division of Kimball International, the giant company best known for pianos _ opened its Post Falls office furniture plant. The plant, which eventually will employ 600 or more, is the biggest catch by business recruiters since the economy turned around in 1989. Late in the year, Egghead Software announced that it would close regional sales and service centers around the country and replace them with a centralized facility near Liberty Lake, employing 130 people. A few weeks earlier, Sallie Mae, the nation's largest processor of student loans, announced it will open a regional loan servicing center in downtown Spokane this spring, employing 250 by 1996. 2. Housing market loses steam

After five years of rapid sales and price increases, the residential housing market showed signs of leveling off late in 1994. Sales for the year were less than in 1993, but prices continued to increase _ ending the year about 10 percent higher than they started. Local economists and housing analysts expect the market to stabilize at a healthy level, avoiding a down period like the region suffered in the '80s after the post-Expo housing boom. 3. Jobless rate falls below 5 percent

Spokane's unemployment rate dropped below 5 percent as the county's economy continued to perform well above the national average. In North Idaho, where the decline in timber and mining employment has had a larger effect, unemployment ended the year near 7 percent. But that represents improvement from recent years. 4. WWP copes with chaotic year

Washington Water Power Co., Spokane's largest publicly traded company, gave shareholders a lot to think about. The utility proposed a merger with Sierra Pacific Corp. of Reno, Nev. At about the same time, the company had to deal with revelations about an oil leak at its idle steam plant downtown. The leak led to a high-profile battle between WWP Chairman Paul Redmond and some prominent downtown property owners. The Davenport Hotel's owners blamed the spill for delays in renovating the downtown Spokane landmark. 5. Southwest's arrival spurs air traffic

Air traffic soared at Spokane International Airport. Southwest Airlines acquired Morris Air and the added competition spurred Horizon and Alaska airlines to boost their Spokane presence. To meet growing demand, the airport increased parking, improved runways and ordered a new baggage system. 6. Gulf mismanagement raises eyebrows

Bondholders and pensioners were flabbergasted by continuing revelations of financial mismanagement by executives at Gulf USA Corp., a company with local pension liabilities and responsibility for cleanup at the Bunker Hill Superfund site. 7. Key Tronic lands Microsoft deal

Key Tronic Corp. signed a deal to manufacture an ergonomic keyboard for Microsoft Corp., the most visible step in the Spokane company's financial turnaround under CEO Stanley Hiller. The company also shifted most of its local manufacturing operations to Mexico, making its Spokane headquarters a center for research and development. 8. Downtown Spokane projects get started

Several long-awaited downtown projects began to materialize as construction started on the new arena, downtown transit center, Wall Street trolley route and Crescent Court. Crescent Court opened in November. However, the trolley project missed its goal of opening for the Christmas holidays and the transit center has been plagued by construction-related cost overruns. 9. Kaiser caught in price crunch

Kaiser Aluminum Corp. was caught between volatile world aluminum prices and a power shortage in the Northwest. As a result, the company was without 25 percent of its production capacity when aluminum prices rebounded from a three-year slump. The company also failed to reach a new labor agreement with the United Steelworkers, although both sides continue to negotiate.

10. Washington apples head for Japan

Washington agriculture took a prominent place on the world stage as Japan agreed to accept U.S. apples for the first time in 23 years. Also, Inland Northwest wheat and cattle farmers feuded with Canada over alleged dumping of grain and beef into the United States. And Pacific Rim millers criticized Northwest wheat growers for shipping low-quality grain.

Copyright 1995 Cowles Publishing Company
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