This is an obvious time to look forward, to a new year, a new beginning, a chance to shed bad habits and resolve to make better ones. It’s also a time to look backward, at the year that just flew by – the good and the bad. So, here’s my list of most memorable news items as seen from my desk at the Beacon.
Cheap Oil: We wrote a lot about this topic and why it matters nearly everywhere that energy prices have plummeted. Locally, consumers save money at the pump, so do farmers working in the state’s largest industry. As fuel continues its downward spiral, however, eastern Montana and North Dakota boomtowns have begun to bust. To the north, in Calgary, Alberta, where 30 percent of its economy is dependent on oil and gas, unemployment is rising and more layoffs are expected in the new year.
Cheap Loonie: Remember when the Canadian dollar was at par with the U.S. dollar? That seems like a long time ago now. Since Canada’s currency is tied so closely to energy, it has plunged alongside its key commodity export. Now, one Canadian dollar is worth about 70 cents U.S., making it cheaper to travel north but hurting local tourism spending. And there’s little end in sight. Oil futures are trading at about $45 a barrel compared to more than $100 a barrel in the middle of 2014.
A Better Boom: While development slowed in Alberta, it gained steam across the Flathead Valley in 2015. Jobless rates dropped to their lowest rates in eight years and, according to economists, the local economy is one of the fastest growing in the state. Construction led the way, as new home sales rebounded, contractors broke ground on new hotels and the U.S. Highway 93 bypass entered its final phase.
Urban Changes: Whitefish began construction on its new city hall and parking structure, which, despite looming cutbacks or an increased budget amid $1 million in cost overruns, will change the face of downtown. In Kalispell, along with increased commercial development over the last year, the city landed a coveted multi-million dollar federal transportation grant that will transform its core area by removing the railroad tracks downtown, developing a pathway system and reconnecting disjointed streets. Meanwhile, in Columbia Falls, developer Mick Ruis plans to turn an empty lot into a 25,000-square-foot, three-story hotel with a convention center, along with other planned projects along Nucleus Avenue.
Economic Stumbling Blocks: Yes, jobless rates decreased. Yes, housing prices stayed relatively in line with what is considered affordable. But there are still reasons to worry. The timber industry, after a promising start to 2015, stagnated as commodity prices dipped. Coupled with the expiration of the Softwood Lumber Agreement — a tariff on Canadian lumber — and Canada’s falling currency, a key part of local economy faces stiff headwinds. The largest local employer in the sector, Plum Creek, announced in late 2015 that it would merge with Weyerhaeuser, creating one of the largest timber companies in the world. What that means for local mills and their 750 employees in the Flathead Valley is unclear.
Banking on Tourism: Fires raged across Northwest Montana in August, closing parts of Glacier National Park and reminding us how much the local economy relies on visitors during its peak seasons. Some businesses suffered during the waning days of summer, but – at least based on the numbers – we weathered the storm. Despite closures, Glacier welcomed its most annual visitors on record. And with snow blanketing the local ski resorts, 2016 should get off to a good start.