Gallatin County: data muddied by RightNow Technologies sale.
Author | Polzin, Paul E. |
Position | Statistical data |
The economic growth figures for Gallatin County received a one-time boost due to the sales of RightNow Technologies to Oracle. Because of the way in which the U.S. Bureau of Labor Statistics counts things, the stock options of RightNow employees were included in reported wages during 2011 and 2012. The negative growth in 2013 is simply the arithmetic consequence of the large one-time increases in earlier years. Even after correcting for this event, Gallatin County is tied with Flathead County and trails only Bakken-fueled Yellowstone County in terms of overall economic growth since the recession trough in 2009.
Gallatin County's construction industry was particularly hard hit and has recently only shown a hint of recovery. The recent growth has been due to stability in the traditional basic industries such as Montana State University, nonresident travel, and high-tech manufacturing combined with robust expansion in Bozeman's role as a regional trade and service center.
Montana State University is the largest basic industry in Gallatin County, accounting for about 32 percent of total basic earnings. Growth in contract research rather than state funding has maintained the contribution of MSU despite wage freezes and other recession-related impacts on government. Bozeman's high-tech sector includes firms in manufacturing and professional services (software), and accounts for another 32 percent of basic earnings.
The forecasts call for increases to be 4 percent or greater between 2014 and 2017. Gallatin County is projected to be the fastest growing urban area in the state. The end of the wage freeze at Montana State University, continued moderate recovery in construction, increases in nonresident travel as Americans once again...
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