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Economic Development and Advocacy for Southwest Alaska
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November 2013
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Temperatures are still a bit higher than usual this time of year, but winter will usher in soon enough. Things are staying busy with SWAMC and within the Southwest region, and we hope you'll read more to find out. Have a Happy Thanksgiving later this month! Thanks for reading, keep in touch, and let us know if you have any questions.
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Cod Red: A Regional Analysis of the Fall Fishery
The majority of this report comes from Stephanie Mangini with Fish Radio in Kodiak.
Global cod stocks are booming; unfortunately nearly all the increase is coming from the Atlantic Ocean's Barents Sea. The flood of new supply from Russia, Iceland, and Norway (1,197,000 mt vs. 320,000 mt in Alaska) is depressing Alaska prices, and affecting the fall cod season in much of Southwest. John Whiddon, the general manager at Pacific Seafoods in Kodiak, shared his thoughts about global cod stocks earlier this year. "We're (also) seeing a resurgence in the N. Atlantic. So there is cod coming from a wide variety of places around the world, which is creating an oversupply of cod." This oversupply is now having a negative effect on Alaska prices; it is a simple case of supply and demand. High transportation costs from Alaska are also a hit to our competitiveness. Whiddon says, "Right now the cost to get the same cod coming from Russia to China is about half the price of the transportation cost from Kodiak to China." Further compounding the problem is the flood of other whitefish proteins like pollock and tilapia (farmed). Although prices are variable and determined by many individual factors, a general price at Alaska docks for the 2013 fall season is 25 cents per pound - leaving fishermen wondering if it is even possible to run their operations and be able to turn a profit.
In addition to lower prices, biological factors are also a concern. In general, the fall season is slower for cod fishing as the biomass is dispersed, in a feeding mode, and it is not until the spawning season that dense schools are in greater abundance. According to Mark Stichert, a Kodiak Area Management Biologist, spawning aggregation generally begins around January, peaks in February or March, and disperses as fish move offshore through the spring. By the time of the fall fishery, dense clusters of cod, especially in the near shore waters, are harder to find. A leveling-off or possibly decline in total biomass from the strong recruitment seen from 2009 until now may be causing lower density on the fishing grounds. Generally speaking, lower biomass in Kodiak waters are making cod harder to catch, although fishing improves relative to effort, moving West down the Chain towards Sand Point and King Cove (one slow fall season is too early to determine definitively if this is a trend). The takeaway from this snapshot is that as a region dependent on variable commodity prices and resource stocks, we need to maintain social and biological sciences to protect our communities from future shocks.
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SWAMC Board Meets in Anchorage for Annual Retreat
SWAMC's Board of Directors congregated in Anchorage on October 24-25 to discuss major strategic priorities and issues facing the Southwest region. A good portion of the meeting was spent on energy planning in the region, as SWAMC is working with regional partners to eventually develop energy plans for all three sub-regions. The Board also heard a presentation on a rural/coastal Alaska LNG proposal, discussed the Tustumena ferry situation, got updates on regional fisheries activities, planned some of our 2014 Annual Conference, and outlined an initiative to interact more with our region's business community. Our meeting was capped off by touring an "Innovation Lab" in Anchorage, as well as a visit to the Muni's Landfill Gas project.
One of the major themes our Board discussed was organizational capacity and sustainability. While SWAMC is in solid shape with a stable future, many non-profits in Alaska are not. We wanted to pass along an insightful article recently written by the Foraker Group, which describes the "Crash of the Herd" that many NPOs are experiencing, and how to recognize the Top 10 warning signs that an organization might be in trouble and what you can do about it. We highly recommend reading the article here.
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SWAMC Community Member Spotlight: CITY OF MANOKOTAK
Monthly spotlights on a member community. 
Manokotak lies about 25 miles west of Dillingam in Bristol Bay, although the two aren't connected by a road. It became a permanent settlement in 1946-47 with the consolidation of the villages of Igushik and Tuklung; people also migrated from Kulukak, Togiak, and Aleknagik. The first school was established in a church in 1949 and a BIA school was built in 1959. Manokotak is a Yup'ik Eskimo village with a fishing, trapping, and subsistence lifestyle. Subsistence is important for the local economy, particularly because of the limited employment opportunities. Commercial fishing and public jobs are especially important as a source of employment and income.
The Western Federal Lands Project is reconstructing 4.35 miles of Manokotak Heights Road to improve access from the village to the school, airport and the Weary River Barge Landing, important for local jobs and income. The community has decided to rename the Manokotak Heights Road to Thomas O. Madole Road in memory of the slain VPSO in March 2013. Tom was a strong community advocate; villagers recall he always greeted kids as they went to school and encouraged a good education. Recently, some kids in school even video-chatted with Governor Parnell while they were in Manokotak and he was in Fairbanks at AFN, introducing his new digital teaching initiative. A great platform for the school!
On June 30, 2013, the Coast Guard received a mayday from F/V Lone Star, a 78 ft. tender vessel, who was taking on water in the nearby Igushik River. ADF&G in Dillingham issued an emergency order for Igushik setnetters to pull their nets due to the possibility of fuel in the water. A crewmember said that while at anchor a change in the tide "swung the ship against the anchor chain, detaching the transducer and coolant lines," the Coast Guard says. "This created a hole in the steel hull and caused the vessel to take on water." The salvage efforts began almost immediately according to the Coast Guard, but were unsuccessful, until later in the Fall when the vessel was successfully floated and towed to Unalaska for salvage. Unfortunately, leaking fuel into the Igushik River resulted in ADF&G shutting down local set net, drift boat and subsistence in the area.
Following the accident fishermen were advised by a local processor (who held the tender contract) that the Lone Star has insurance, and even went as far as sending a representative to Manokotak to address the community. Villagers wonder how insurance will cover lost subsistence. According to community members, subsistence fish is very important to the villagers as a means of supplementing food; compared to the cost of shopping in Dillingham, the value of fish and other game is priceless. Despite a few bumps, this resilient community looks forward to next season where strong salmon prices and open water will surely beckon millions of fish to the district again soon; in the mean time, as the weather grows cold and days get short, many villagers look forward to a quiet winter.
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From the VISTA Desk: STEM Education & Workforce Update
This month SWAMC's VISTA attended Alaska's Annual Career and Technical Education Conference. The conference was a hub for all things STEM and provided great educational and networking opportunities. Also represented at the conference were organizations such as the Juneau Economic Development Council (JEDC), the FAA, AVTEC, the Alaska Workforce Investment Board (AWIB), as well as professors from throughout Alaska's University system. The VISTA saw presentations on topics such as Teaching STEM in Rural Schools, Using Aviation to Teach STEM and Effective Online Learning for Teachers. The conference brought forth many new possibilities for STEM development in the southwest as it highlighted models that are working, such as the middle school mentorship program in Kodiak or the Build-A-Plane project in Talkeetna, and can be replicated throughout the region.
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SWAMC Business Member Spotlight: HDR ALASKA
Monthly spotlights on a member business.HDR Alaska, Inc. is proud to be a member of SWAMC since the early 1990s. The firm values its working relationship with Southwest Alaska communities over the years, having worked on numerous projects supporting hydroelectric power development, community planning, environmental studies and permitting, military site repurposing, transportation and port projects, and sanitary water, sewer, and waste disposal systems. 
Currently, HDR is helping Nushagak Electric & Telephone Cooperative, Inc. (NETC) advance the Dillingham Area Hydroelectric Project by performing environmental studies. This hydroelectric project would generate power at lakes within Wood-Tikchik State Park, and would bring electricity into the existing system at Aleknagik. As project feasibility is firmed up, HDR will map vegetation and determine whether rare plants are present, as a required part of its application for a federal hydropower license.
Founded in 1917, HDR is a global employee-owned firm providing architecture, engineering, consulting, construction and related services with more than 8,600 professionals in more than 200 locations worldwide. In Alaska, HDR is supported by 180 employees specializing in: Wetlands and Vegetation Ecology; Fisheries Science; Geospatial Information Systems; Hydroelectric Power Engineering; NEPA and Permitting; Solid Waste Systems Engineering; Roads, Bridges, & Trails; Airports; Ports and Harbors; Water and Wastewater Engineering; and more.
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Southwest Alaska Economic Indicator: Wages & Employment!
A striking distinction must be made when computing labor data for Southwest Alaska's primary economic engine, as the fishing industry is not accurately recorded. The Commercial Fisheries Entry Commission (CFEC) does maintain a database that collects most participation and earnings data (confidential data is hidden), but in order to answer the simple question "What does a fisherman make?", there are more questions than can be derived from existing data. What makes a fisherman? According to CFEC a fisherman (or woman) is a permit holder, which leaves data gaps in allocations to labor (crew) and capital (boats, permits, etc) necessary to determine payments for catching fish, or investing in the industry. This gets even more complicated in diversified fisheries, which encompass many professional fishermen. So, without a better metric, a fisherman may have heard that professional crew can expect to make a minimum of $10,000/month. That might sound like a lot, but ask someone who just spent four months in the Bering Sea if their $40,000 was easy money and you just might have an earful coming to you! Expected returns for those with capital at stake is less certain, and may be worthy of a future SWAMC project. The charts below display Annual Public Income by Region & Type and High Paying Private Sector Jobs ( click to enlarge). In general, the pubic sector pays pretty well, averaging over $51K/year, with Federal and State jobs paying best and local government more modest. One factor to note among high paying jobs, both public and private, is that better paying jobs are a small percentage of total jobs; 3,823 public jobs and 4,183 high-paying private jobs, of the total 17,036 (non-fish harvesting) jobs. Resource, professional, and construction jobs are the best paying private jobs in the SWAMC region. One concerning observation is that the best wage jobs on land are found in the Kodiak and Aleutians West regions, leaving room to improve the job market in the Bristol Bay and Peninsula districts. Looking to the future of our communities, collectively we would benefit by identifying factors that can increase the more valuable and thus higher paying jobs in the region. In December SWAMC will be host a Business Council discussion to investigate such strategies with our private sector business leaders.  
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SAVE THE DATE!
SWAMC's 2014 Economic Summit & Annual Membership Meeting will take place March 5-7 in Anchorage at the Hotel Captain Cook. (details to follow soon)
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Interested in Supporting Southwest Alaska's Economy?
BECOME A SWAMC MEMBER TODAY! 
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Our Thanks to These SWAMC Members!
Adak Eagle Enterprises
Agdaagux Tribal Council
AIDEA
Alaska Aerospace Corporation
Alaska Airlines
Alaska Comm. Fish & Agriculture Bank (CFAB)
Alaska Fisheries Development Foundation
Alaska Groundfish Data Bank
Alaska Scallop Assoc.
Aleutian Housing Authority
Aleutians East Borough
Alyeska Seafoods
APICDA
ASMI
At-Sea Processors Association
Belkofski Traditional Council
Boyd, Chandler & Falconer
Bristol Bay Borough
BBEDC
Bristol Bay Housing Authority
Bristol Bay Native Assoc.
Bristol Bay Native Corp.
City of Adak
City of Atka
City of Akutan
City of Dillingham
City of Egegik
City of False Pass
City of King Cove
City of Kodiak
City of Manokotak
City of New Stuyahok
City of Old Harbor
City of Ouzinkie
City of Pilot Point
City of Port Lions
City of St. Paul
City of Sand Point
City of Unalaska
Coastal Transportation
Copper River Seafoods
Curyung Tribal Council
Delta Western
DOWL HKM
Era Aviation, Inc.
First National Bank Alaska
Foraker Group
GCI
HDR Alaska, Inc.
High Tide Environmental
Icicle Seafoods
James E Carmichael
Karluk Village Council
Katmailand, Inc.
King Cove Corporation
Kodiak Best Western Inn
Kodiak College- UAA
Kodiak Island Borough
Lake & Peninsula Borough
Marine Advisory Program
Marine Stewardship Council
McDowell Group
Naknek Electric Assoc.
Native Village of Port Lions
Northern Air Cargo
Northern Economics, Inc.
Nushagak Electric Coop.
Ocean Beauty Seafoods
Ounalashka Corporation
Pacific Seafood Processors Association
Pacific Seafoods, Inc.
Pebble Partnership
Pen Air
Petro Star, Inc.
Qagan Tayagungin Tribe
Samson Tug & Barge
SAVEC
Shumagin Corp.
Sullivan & Richards, LLP
TelAlaska
The Aleut Corporation
UniSea
WACDA
Wells Fargo
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Visit Southwest Alaska @
www.southwestalaska.com
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SWAMC Board of Directors
Louise Stutes, Pres.
Alice Ruby, Vice Pres.
Layton Lockett, Treas.Dan Clarion Dan O'Hara
Glen Gardner
Joe Sullivan Michelle Ravenmoon Paul Gronholdt
Shirley Marquardt Trevor Brown
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SWAMC Staff Andy Varner
Executive Director
Erik O'Brien Economist; Development Specialist Mickey Morelli STEM Education Coordinator / VISTA |
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| Upcoming Events & Dates to Remember | |
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As always...
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Thanks for your support of SWAMC. Please don't hesitate to share your thoughts, ideas, concerns and events. For previous newsletters, click the link below.
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