Flathead County: climbing out of the recession hole.

• Author: Polzin, Paul E.
• Position: Statistical data

The Great Recession hit the Flathead economy hard. But, unlike some other parts of western Montana, the Flathead economy recovered quickly and is now growing moderately. Beginning in 2008, the Flathead economy was pummeled by:

* a one-third decline in construction activity;

* significant layoffs in the wood products industry;

* a sizable drop of nonresident visitors;

* the mothballing of the aluminum refinery; and,

* shift reductions and layoffs at the major high-tech manufacturing plant.

After two years of declines, including an almost 10 percent decrease in 2009, the Flathead economy posted 1 percent to 3 percent growth each year from 2010 to 2013.

To a large extent, the recent growth was due to reversals of the recession-caused declines. For example:

* Construction has begun to inch upward, but has a long way to go before regaining pre-recession levels.

* The rekindling of home building nationwide is slowly bringing the wood products industry back to life.

* The improved U.S. economy means that people are once again traveling.

* Better worldwide economic trends have improved conditions in high-tech manufacturing.

The emergence of Kalispell as a regional trade and service center has added an additional dimension to the economic base of Flathead County. The additional retail opportunities along North 93 have not only attracted nonresident shoppers but also mean that locals do not need to travel to Missoula or Spokane to find diversity. The most recent data suggest that the health care industry now attracts more dollars than it sends to other medical centers, such as Missoula and Great Falls. There is some evidence that more Canadians are crossing the border for elective procedures.

The Flathead outlook incorporates continued improvement in home construction (although not a return to pre-recession levels), a gradual increase in wood products as workers return and hours increase, and continuation of worldwide market trends for high-tech products. Nonresident travel will also respond to the growing U.S...