So now the slow road to recovery begins.
In most industry sectors, 2009 has been a year people would like to put behind them, and, after a couple of years of mostly negative indicators, observers now are offering hope that 2010 will provide at least the beginnings of a steady, though slow turnaround.
Job growth in the Spokane metropolitan area is projected to advance slightly next year, although not to the peak levels of 2008. Economists don't expect more sustained growth until late 2011.
The residential real estate market should begin to improve slowly in 2010, following a four-year sales decline, while the outlook for commercial real estate remains bleak for now. Also, although the flow of commercial construction projects in the pipeline remains just a trickle, public-works projects should prop up that industry here in 2010. Developers say financing still is hard to obtain, but a federal tax credit is spurring home construction.
There's good news among high-tech manufacturers here, who say orders are beginning to build again, giving them optimism for 2010. "Without exception, our customers are poised for growth in '10," says MacKay Manufacturing Inc.'s Mike MacKay.
Spirits also are high in the tourism sector, which is expected to rebound here next year, boosted by some big-ticket events including the U.S. Figure Skating Championships in January. "It's going to be a remarkable year," gushes Harry Sladich, of the Spokane Regional Convention and Visitors Bureau.
Bankers, meanwhile, believe the economy hit a low point in 2009 and that 2010 should be better, though they say that doesn't necessarily mean it will be a great year. For mining executives, their turnaround occurred this year, thanks to surging metals prices, and they are bullish about 2010. The future of the venerable Lucky Friday mine in North Idaho could get a big boost next year.
Demand for health-care services is projected to be strong next year, but uncertainty looms in that sector regarding the health-care reform debate and the implications of the planned acquisition of Rockwood Clinic by the new owner of Deaconess Medical Center.
Any rebound in the retail industry likely will be modest next year, observers and government budgeters say, though there are recent signs of increased traffic and improved consumer confidence.
In Kootenai County, expectations are for 2010 to usher in a rebound in several sectors, including real estate, construction, manufacturing, and tourism, and for the bleeding to at least slow in the wood-products industry.
Observers in that industry, meanwhile, say the worst might be over, and that demand and prices for lumber and structural panel products should begin to improve in 2010, following multiple years of distress.
There's also optimism in the agricultural industry, following a good year for legume growers and recent moisture that could boost soft white wheat yields.