Inland Northwest manufacturers are positioning the region as a hub for emerging technologies as they pursue opportunities in nuclear energy, clean energy, and photonics.

The strategy comes as manufacturers navigate an aging workforce, automation, and shifting demand in legacy industries, says Mark Norton, executive director of the Northwest I-90 Manufacturing Alliance.

A few subsectors within manufacturing are growing while others are contracting, says Mike McBride, the Washington State Employment Security Department's regional labor economist for north central and northeast Washington. Growing subsectors include chemical manufacturing, specifically within pharmaceuticals; wood product manufacturing, likely attributed locally to cross-laminated timber; and primary metal manufacturing. Contracting subsectors include food manufacturing, computer and electronic products, and transportation equipment, with most of the latter attributed to the aerospace sector.

An overall manufacturing workforce decline is likely related to retirements and possible trade disruptions in specific subsectors, McBride says.

Spokane County's manufacturing sector reached over 17,000 workers in 2023, the second highest mark over the past decade, according to U.S. Census Bureau data provided to the Journal by McBride. Since then, the workforce has shrunk, with just over 16,000 manufacturing jobs reported in 2025.

Norton agrees that the aging workforce is contributing to the decline, saying that baby boomers are the last generation that widely embraced the trades. The increase in automation is also forcing workforce changes in the industry. Automation will likely replace some lower-skill jobs and create demand for more technically skilled workers, he adds.

“Automation and robotics are really coming to the forefront,” Norton says. “I think honestly that there is going to be some displacement of workers.”

As the industry navigates this shifting landscape, manufacturers in the Spokane area are building supply chains with partnerships in the Tri-Cities, Washington; Idaho; and Montana, hoping the collaboration will create new business opportunities that no single region could support alone, he says.

One of Northwest I-90 Manufacturing Alliance's closest partnerships is with Tri-Cities-based Clean Energy Supplier Alliance, where manufacturers are working to build a supply chain around the region’s growing nuclear and clean energy sector, which is helping manufacturers connect with existing opportunities in conventional nuclear energy while preparing suppliers for the future build-out of small modular reactors, Norton says.

The Tri-Cities, home to major nuclear organizations such as Energy Northwest and the Pacific Northwest National Laboratory, brings expertise in nuclear energy, while Spokane offers a wider manufacturing base capable of producing specialized products, he says.

Before manufacturers can enter the nuclear supply chain, however, they must obtain industry certifications required to supply components to the sector. Much of Northwest I-90 Manufacturing Alliance's work involves educating manufacturers about those requirements and helping companies determine whether pursuing the market makes sense, says Norton.

“The synergies are good because they have some real specific expertise in nuclear, but they don’t have the same overall manufacturing capability that we do up here,” Norton says. “It can be a really complementary relationship, and I think everybody sees that and feels this is really an opportunity that makes sense.”

Spokane Valley-based Wagstaff Inc. has already started supplying the nuclear industry, while other Inland Northwest companies such as Johnston Engineering PLLC and Hydrafab Northwest Inc. are exploring potential opportunities in the energy sector, Norton says.

While the Clean Energy Supplier Alliance is helping manufacturers connect with opportunities in the nuclear supply chain, Idaho Falls-based Idaho National Laboratory is leading efforts to prepare the workforce needed to support the industry’s growth, he says.

The Idaho National Laboratory, through the Intermountain-West Nuclear Energy Corridor Tech Hub, which recently received $31 million in federal funding, will help develop the specialized workforce needed for the expanding nuclear sector. The Northwest I-90 Manufacturing Alliance is collaborating with the laboratory and the Idaho Manufacturing Alliance to identify training opportunities and prepare manufacturers for future demand, he says.

The partnership is currently in the early stages. Manufacturers are not yet sending workers to Idaho for training, but discussions are underway as the organization builds the framework for future workforce development programs.

Beyond nuclear energy, the alliance is also building relationships with organizations in Bozeman, Montana, where a growing photonics industry is creating opportunities for Inland Northwest manufacturers.

Photonics is the science of using light in technologies ranging from industrial lasers to autonomous vehicles, Norton explains. Bozeman has become the center for photonics work, largely because of Montana State University’s nationally recognized optics and photonics program, which has helped attract approximately 35 photonics companies to the region, he says.

Photonics is also expected to play a key role in advancing quantum computing. Conventional computer chips transmit information using electricity; emerging photonic chips use light instead, allowing data to move significantly faster, Norton says. Combined with quantum computers, photonic chips could significantly increase computing performance by allowing data to move much faster than it does through conventional electronic chips, he says.

“They have a lot of (original equipment manufacturers) out there, but they don’t have a lot of supply chain manufacturing capabilities immediately in the area,” Norton says. “That’s where the opportunity is for us to take our supply chains and help fill in the gaps, which is similar to what we are trying to do in the Tri-Cities.”

Several Inland Northwest manufacturers, including Altek Inc. and AccraFab Inc., have already begun supplying companies in Bozeman, he says.

No surrounding city has the scale to compete with larger manufacturing hubs on its own, Norton contends. By collaborating with subsectors in the Tri-Cities, Idaho, and Montana, the region is positioning itself to compete collectively for emerging industries.

“If we work together, we have a better chance of being able to compete,” Norton says. “It’s a win-win for everybody.”