Custer County outlook: indirect energy impacts.

• Author: Polzin, Paul E.

Despite its image as a wild and woolly cowtown, I Miles City has a diverse economic base dependent on federal and state government, agriculture, and agricultural-related activities and transportation. These industries have led to relative economic stability and moderate growth in the past. Recently, there has been growth in activities directly related to the Bakken oil fields, which are located hundreds of miles to the east.

The U.S. government accounts for about 23 percent of Custer County's economic base, and state government is only slightly behind as roughly 20 percent. The federal facilities include regional offices of the USDA Forest Service and the Bureau of Land Management. Montana state government has regional administrative offices in Miles City plus a youth correctional site.

Agriculture and closely linked activities (such as farm equipment dealers) account for roughly 14 percent of Custer County's economic base. Transportation (primarily rail and trucking) represents approximately 11 percent.

Miles City has evolved into a second order trade and health care center. These merchants and health care providers draw people from throughout eastern Montana as well as providing services that formerly required a trip to Billings. This has sometimes been called the "Wal-Mart effect" as this company has opened stores (including super stores) in smaller and smaller communities and decreased the need to travel to a regional center to shop. But a quick glance at the variety of businesses out on South Haynes Avenue reveals that it is more than just Wal-Mart.

Custer County is experiencing the indirect impacts of the Bakken oil field development. A global corporation providing energy services recently opened a facility in Miles City. It currently employs more than 200 employees with earnings of more than $60,000 per year. Energy services now represent about 16 percent of the economic base.

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The Custer County...