The Montana economy zooms along

Montana Business Quarterly, Spring, 2008 by Paul E. Polzin

Flathead County

While among the fastest growing counties in Montana, Flathead County may be vulnerable to a quick slowdown if construction and real estate falter. Both of these sectors have expanded rapidly since 2001 and may have inflated the overall growth rates. Flathead County has a diverse economic base, including manufacturing (primary metals, wood products, and high-tech), transportation (railroads), nonresident travel, and the federal government (USDA Forest Service and the National Park Service). Growth in the trade center component of retail trade was one of the major contributors to increases in the economic base between 2001 and 2005. Other basic industries experiencing increases were nonresident travel and the federal government (perhaps related to homeland security). Manufacturing has almost recovered from the recession-related declines in the high-tech sector and the partial shutdown at the Columbia Falls Aluminum Company.

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Figure 1

Actual and Projected Percent Change
in Nonfarm Labor Income,
Flathead County, 1997-2007

      Projected   Actual

'97      3.2        0.8
'98      3.4       13.4
'99     -1.9       -3.0
'00      4.2        6.4
'01      2.2      No Data
'02      1.2        2.2
'03      2.9        4.0
'04      4.5        7.0
'05      3.5        6.5
'06      6.1        9.0
'07      5.7        6.1

Source: Bureau of Business and Economic Research,
The University of Montana-Missoula. Bureau of Economic Analysis,
U.S. Department of Commerce.

Note: Table made from bar graph.

Figure 2

Actual and Projected Change in Nonfarm
Labor income, Flathead County,
2005-2011

Actual

'05   6.5
'06   9.0
'07   6.1

Projected

'08   6.4
'09   6.2
'10   6.0
'11   6.0

Source: Bureau of Business and Economic Research,
The University of Montana-Missoula. Bureau of Economic Analysis,
U.S. Department of Commerce.

Note: Table made from bar graph.

Figure 5

Labor Income in Basic Industries,
Flathead County, 2005-2007
(percent of total)

Ag. and Other            5%
Nonresident Travel      19%
Primary Metals           4%
Transportation           7%
Other Manufacturing     13%
Trade Center-Retail      5%
Trade Center-Services    6%
Fed. Government         18%
Wood Products           23%

Source: Bureau of Business and Economic Research,
The University of Montana-Missoula. Bureau of Economic Analysis,
U.S. Department of Commerce.

Note: Table made from bar graph.

Silver Bow County

The worldwide energy/commodity boom is having direct impacts on the Butte-Silver Bow economy. The sizable increases in 2004, 2005, and 2006 reflect the direct and indirect impacts of the reopening of the Montana Resources Mine. Continued environmental cleanup activities (which are reported in the construction industry) and capacity of operation of the mine underlie the projections of 3.0 to 3.5 percent annual growth from 2008 to 2011. Both trade center components (retail and services) reported sizable growth from 2001 to 2005, reflecting Butte's continued development as a regional trade and service center.