Local and state economic development leaders say it’s not unusual for outsiders to think that Alaska is in the middle of nowhere, that it’s bitterly cold, and that residents live in log cabins and igloos. In addition, they’ve been asked what Alaska’s currency is, and whether there is telephones and Internet service available.
However, Alaska is a solid location to site a manufacturing plant or distribution facility, especially for companies that need access to abundant natural resources.
The state boasts no sales tax or personal income tax, and corporations pay low amounts of business taxes.
Alaska’s Permanent Fund is another little-known-about bonus that helps offset the cost of living.
In 2002, the fund enabled each man, woman and child living in Alaska for at least one year to receive a dividend check from the state government for $1,540.76.
When it comes to logistical assets, you can’t beat Alaska if you want proximity to the rest of the world.
Anchorage is nine hours by air from 95 percent of the industrialized world. The city is strategically located for global air commerce and logistics, and is home to logistics companies such as Federal Express, United Parcel Service, China Airlines and Northwest Air Cargo.
Anchorage is also home to the Ted Stevens Anchorage International Airport. The airport is the No. 2 air cargo airport in North America for all-cargo aircraft landed weights.
Companies located at the airport benefit from easy accessibility to the Alaska Railroad, the state’s expansive highway system and the Port of Anchorage.
While commercial fishing and fish processing are important components to Alaska’s economy, there are several other engines driving the business climate.
Sitka, an island community with a population of 9,000, has a diversified economy that is propelled by healthcare, education, tourism, government and marine fabrication/repair.
The city’s Sawmill Cove Industrial Park has seven tenants, including the Sitka Beverage Corp. The company, which has 27 employees, produces bottled water in a 90,000 square foot facility, selling the product in California, Oregon and Washington.
Sitka is also one of the few cities in the nation exploring the prospect of bulk water for sale and export. The city has no shortage of water thanks to 95 inches of rain per year, as well as pure alpine water gushing in at 25 million gallons per day from snow and glacier melt.
— Rachael Hedgcoth
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