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FLATHEADBEACON.COM
BUSINESS
FEBRUARY 19, 2014 | 33

than expected in the fourth quarter of
Measured once again by growth in Amtrak ridership sunk 7 percent, air- MANUFACTURING

2012 and irst quarter of 2013, lumber real wages, the state’s two fastest grow- port deboardings dropped 6 percent and The manufacturing sector has ex-
and structural panel prices reached a ing urban areas are Gallatin County the percentage of hotel bookings dipped perienced three consecutive years of
ive-year high in March and April. Mills (Bozeman) and Yellowstone County 5 percent.
improvement, each year outpacing the
across the U.S. ramped up production (Billings). Bozeman has enjoyed growth previous in employment, worker earn-
and lumber prices climbed steadily from related to the housing recovery and AGRICULTURE
ings and outputs, according to the
their June 2013 low. For all of last year, university- and tourism-related spend- Heavy rains blanketed the state last BBER. It remains an important piece of
average lumber and other major wood ing. Yellowstone has beneited from the May and June, replacing ongoing wor- the state’s economy, providing jobs with
prices were the highest since 2005. Mon- boom in oil production in the Bakken.
ries of drought with near record crop and higher than average wages.

tana’s forest industry enjoyed continued Barkey predicted this year could be- livestock production across the state. Employment numbers were estimat-
improvements and gradual recovery. come a “breakout” one for the Flathead, The state’s growth revenue estimates in- ed to be 22,100 last year, nearly 3,000
Lumber production was up roughly 4 and Montana as a whole. The national creased for a ifth consecutive year and more than in 2010. The state’s total
percent and wages were up 3 percent, ac- economy could surprise everyone with jumped 7 percent over 2012 to a record worker earnings were estimated to have
cording to the BBER. The average num- a year of signiicant growth, and faster $3.1 million, according to Montana State grown 6 percent last year, topping $1.1
ber of mill workers increased roughly 2 growth in consumer spending could give University’s Department of Agricultural billion.
percent. Sales value of the state’s prima- Montana an extra boost, particularly Economics. As a whole, the inancial sta- Flathead County had the second

ry wood products was estimated to be in tourism. Barkey predicts Montana’s bility in the nation’s agriculture sector largest manufacturing sector in the
$614 million, up roughly $56 million, or economy will outperform the nation’s.
is increasing farmland values and cash state behind only Yellowstone. Flathead
10 percent, from 2012. The state’s timber Here are a few snapshots of Montana rents in Montana. Yet the state’s farm- had $163 million in worker earnings in
harvest volume remained low, though, sectors:
land values increased 3.8 percent last 2012, 10 percent more than in 2010.
with roughly 365 million board feet, year, lower than the national average of Wood, paper and furniture account-
the same as 2009. The state’s industry TOURISM
9.4 percent. The farm debt-to-asset ratio ed for the largest speciic portion of the
continues to struggle with raw material Montana attracted 11 million non- had declined steadily since 2008 and is state’s manufacturing industry and ex-
availability due to very low timber har- resident visitors in 2013, a 2 percent in- expected to fall to 10.2 percent, its low- perienced a 1 percent decrease in em-

vest levels. In iscal year 2013, National crease over the previous year, according est level since 1960. Cash receipts are ployment last year with roughly 4,158
Forest System timber harvest volumes to the latest igures from the Universi- expected to increase by 2-3 percent this jobs.
in the state were 10 percent lower than ty of Montana Institute for Tourism & year, but could be ofset by higher cash Forecasters predict a positive outlook
2012. Widespread mountain pine beetle Recreational Research. Visitors spent expenses. Grain and cattle prices are ex- for Montana’s manufacturing industry
mortality and ongoing environmental roughly $3.5 billion overall, including pected to remain above long-run histor- in 2014, expecting higher sales, increased
litigation have hampered the U.S. Forest 20 percent more per day, or $162, in the ical averages. The demand for Montana’s production levels and greater proits
Service’s timber production, according third quarter from July to September. high protein wheat and high quality bar- among most of the sectors, according to

to the BBER. Yet members of the state’s Among visitors surveyed, 72 percent ley will remain strong, according to ana- the Bureau of Business and Economic
forest products industry have a positive said they appreciated Montana’s scenic lysts. Livestock producers are anticipat- Research. Many manufacturing employ-
outlook for the coming year, analysts driving opportunities, 49 percent en- ing higher prices driven by lower cattle ers are predicting increased employ-
say, as markets keep improving and the joyed wildlife watching and 48 percent numbers. With record prices, livestock ment, however health insurance cost was
housing recovery gains further ground. were interested in nature photography. producers are becoming increasingly rated as the most important issue.
Availability of timber will be the major The government shutdown in October concerned about domestic and interna-
challenge, according to the BBER.
did have a dampening efect; national tional demand.
FOREST PRODUCTS
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park visitation was down 63 percent,
As housing starts increased more