The Fairbanks economy is "stable and solid," even though 2002 was relatively slow for most of the city's companies.
So said Kara Moriarty, the president of the Greater Fairbanks Chamber of Commerce. Last year was flat in terms of growth for much of the community's businesses, but that doesn't mean area executives have lost hope in the Fairbanks economy, she said.
"It's definitely a challenging time for businesses," Moriarty said. "People are being cautious, but, unlike other chambers in the nation, ours has not lost members. For us, that shows that businesses are still doing well enough to want to invest in the community."
Brigitta Windish-Cole, a state labor economist who focuses on Fairbanks, suggested that the community did have some economic growth in 2002, albeit only moderate. She estimated that the city saw an economic increase of between 1.5 and 2 percent, largely because of development and government jobs. Construction, new opportunities from the Fort Knox gold mine and an increase in military personnel in the area all added to the growth, she said.
To Dean Owen, the president and chief executive of the Fairbanks Economic Development Corporation, one untapped source of fiscal expansion is climate-specific research that could be conducted at the University of Alaska Fairbanks.
"There's a pretty active (cold-weather testing) market in Fairbanks, and we're trying to expand it," he said. "It's an undeveloped industry that brings ancillary money into the economy."
UAF plays a role in that research by providing the technology and know-how needed to perform the tests, Owen said. That gives Fairbanks an advantage over other competing cities.
"Fairbanks is the largest northern city to do the testing, and it's the only one with a world-class facility," he said. "We see some real synergism between the university and the city."
Windish-Cole agreed.
"The university is very strong," she said. "It is an important, and the largest, employer in Fairbanks."
Other industries that Windish-Cole predicted could stimulate the Fairbanks economy in 2003 include construction, health care and food service.
Fairbanks is looking to current or pending expansion projects, such as expanding the hospital or defense development, as an opportunity to grow in 2003. Those projects, as well as a surplus of new construction, incite optimism from members of both the business sector and the surrounding community, the chamber's Moriarty said.
Owen said the economic development corporation is working on projects to increase development of both senior housing and natural resources in the outlying area.
Currently, the population in Fairbanks aged 65 and older is about 5 percent, he said; but, studies indicate that number will only increase over the next two decades. That could mean a shortage in assisted-living facilities, unless something is done, Owen said. The development and construction of some 65 assisted-living units is under consideration, and would raise the community's total number of dwellings to 265.
Windish-Cole noted that while Fairbanks is not directly driven by oil, it is supported by the industry. That means development of natural gas or exploration in ANWR could have contributory effects on the community's economy, according Owen. Contractors and employees hired to work on the development could only be beneficial for the city, he said.
As a whole, Moriarty said Fairbanks has reason to be "cautiously optimistic."
"Fairbanks is still a good place to do business," she said. "Businesses might not be as healthy as they were two years ago, but Fairbanks is still stable and solid."
