As analysts and economists begin reviewing the data for 2014, a clear message has already surfaced: Flathead County is one of the fastest-growing economies in the state.
“It was definitely a good year in Flathead County,” said Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana. “There are lots of things that seem to be looking up for the Flathead lately. There are things that give you an idea of what’s going on, and it’s pretty strong.”
Last week Barkey was in the final stages of reviewing data from the past 12 months in preparation for the BBER’s annual statewide economic outlook seminar, which will be held in Kalispell on Feb. 13. This year’s seminar series will largely focus on “The New American Energy Revolution,” although there will be an individual section devoted to each county.
And when Barkey arrives in Kalispell, he will be bearing the best news in years.
“If I had to describe Flathead County in a nutshell, I would say that the hole was deep but the recovery has definitely picked up speed. It’s really moving and certainly coming back stronger than Missoula,” Barkey said, describing Flathead as the strongest economy in Western Montana. “It’s definitely good news.”
The county added 1,574 jobs in the past year, according to the Montana Department of Labor and Industry. At the end of November, the local unemployment rate was 5.8 percent compared to about 7 percent a year ago.
A clearer picture of the exact local gains will be available at the Flathead Valley Economic Forecast event on Jan. 28 hosted by Montana West Economic Development at Flathead Valley Community College. That event, which begins at 8 a.m., will explain the recent job gains and industry predictions for the next 12 months.
Preliminary local figures show a healthier wood products industry and manufacturing sector. The housing market was less impressive, Barkey noted, and real estate still hasn’t regained its typical activity as before the recession.
Tourism has provided a noticeable boost to communities both statewide and in the Flathead. Construction figures are also optimistic.
Nearly 11 million nonresidents visited Montana and spent more than $3.9 billion in the Treasure State in 2014, according to preliminary numbers compiled by the Institute for Tourism and Recreation Research.
Nonresident visitation appears to be roughly the same or slightly lower than 2013, according to estimates, but nonresident spending grew by roughly 4 percent in the first quarter of the year, 20 percent in the second quarter and 9 percent in the third quarter.
Statewide lodging tax collections were up 7 percent over last year during the third quarter of 2014, and are up 8 percent for the calendar year, according to the Montana Department of Revenue. The tax collections come from a 7 percent fee on all hotel or other lodging accommodations.
In Kalispell, lodging tax collections were up 5 percent from July 1-Sept. 30. However, they were down 9 percent from Jan. 1-March 31 and down 4 percent from April 1-June 30.
In Whitefish, lodging tax collections were up 4 percent from January-September. The first quarter of the year was up 11 percent; the second quarter dipped 1 percent and the third quarter was up 3 percent.
Whitefish also has a resort tax, which can reflect economic activity, and from July through October, the collections were up 22 percent. In fiscal year 2014, which runs from July 2013-June 2014, total resort tax collections were $2.1 million, a 5.1 percent increase over the previous year.
“The numbers are looking really good,” said Dylan Boyle, executive director of the Whitefish Convention and Visitors Bureau.
Boyle said the valley has seen noticeable improvements during the so-called shoulder seasons — down months before and after summer — and regional businesses are reporting more economic activity than years’ past.
About 68 percent of all tourism-related business owners surveyed by the ITRR this fall reported an increase in visitation or customers in 2014, and 31 percent of those said they saw a significant visitor increase of more than 10 percent over 2013. More than half — 57 percent — of businesses expected to see their visitation increase in 2015.
Two big reasons for the local optimism involve Glacier National Park, which had a record year of visitation, and Glacier Park International Airport, which has broken passenger records the past two years running. The first 11 months of this year already surpassed last year’s total in terms of passengers, according to airport officials.
The trend is similar across the state.
“The national parks in Montana have experienced an 8 percent increase over 2013 and the number of people stepping off a plane in Montana was up nearly 18 percent, through November,” ITRR Director Norma Nickerson said in a news release.
For more information about the BBER Economic Forecast seminar, visit http://www.bber.umt.edu/events/EOS.asp. For more information about the MWED Flathead Valley Forecast event, visit http://www.dobusinessinmontana.com.