Gallatin County: Montana's economic growth leader.

• Author: Polzin, Paul E.

The Gallatin County economy has been on an economic roller coaster since the onset of the Great Recession in 2008. The Bozeman-area economy experienced a significant contraction early in the recession. But the economy began to turn around in 2010 and has continued upward ever since. In fact, Gallatin County is one of only two major urban areas in the state (the other being Yellowstone County) to significantly exceed the statewide growth rates during the recovery phase of this business cycle.

The favorable growth trends in Gallatin County can be attributed to both short-run and long-run factors. The short-run economic boosts to the economy include:

* A robust recovery in the construction industry. There was double-digit growth in all sectors of construction during 2013, following significant growth in 2012. Detailed data are not yet available, but the Big Sky area may account for much of these increases.

* The hard hit nonresident travel industry also had strong years in 2012 and 2013.

* The sale of RightNow Technologies to Oracle created a one-time boost because the U.S. Bureau of Labor Statistics counted the stock options of employees as wages and salaries in 2011 and 2012.

Over the longer run, positive trends in Gallatin County's high-tech sector and the transition of Bozeman into a regional trade and service center suggest continued growth. The high-tech sector includes both manufacturing and software. RightNow Technologies was classified in professional services.

Montana State University continues as the largest component of Gallatin County's economic base, accounting for about 30 percent of the total. The long-term growth in enrollment at MSU suggests there are probably additional positive influences on the local economy that are not reflected in the earnings data. The RightNow sale distorts the recent growth rate trends.

Gallatin County is projected to grow 3 percent per year or greater from 2015 to 2018, the fastest of...