Montana manufacturers survey: operating in Montana has many advantages.

AuthorHayes, Steven W.
PositionSurvey - Statistical data

Living a "Montana lifestyle" with access to recreational opportunities is one of the advantages of operating a manufacturing business in Montana, according to respondents to BBER's annual manufacturers survey.

So is the affordable cost of living that allows people to pay their mortgages while bootstrapping a business, says Courtney McKee, co-owner of Headframe Spirits, a distillery in Butte (see sidebar, page 9). Not to mention the fact that people from "the governor on down will bend over backward to help you." .. For Robert Kincaid, an engineer at ATK Sporting Group in Manhattan, it's the strong Montana work ethic that helps make businesses successful. For James Stephens, co-founder of Blue Marble Biomaterials in Missoula, it's the opportunity to collaborate with universities, businesses, and industries that makes Montana a desirable place to do business (see sidebars, pages 11 and 13).

In the past year, manufacturing has experienced a resurgence throughout the U.S., with manufacturing employment at the highest level since 2008. Manufacturing continues to play a significant role in Montana's economy.

For this year's survey, BBER contacted more than 200 firms, including Montana's largest manufacturing facilities (as measured by the number of people employed), as well as smaller firms representative of their sectors. Of the firms contacted, 76 percent responded to the survey. More than 35 percent of the manufacturers surveyed indicated they have more than 50 employees in Montana. Just over 20 percent indicated their businesses are more than 50 years old, and one-quarter indicated their businesses have been in Montana 20 or fewer years.

Advantages and Disadvantages

Through a pair of open-ended questions, the survey asked participants what they saw as the biggest advantages of operating a manufacturing business in Montana and the most significant barriers to starting or expanding an existing manufacturing business in the state.

The most common responses were related to the high quality, availability, and low cost of labor (33 percent of respondents) and the high quality of life, Montana lifestyle, and recreational opportunities (29 percent). Other frequently cited advantages of operating in Montana were close proximity to raw materials or markets, lower costs in general, lower taxes, and less regulation. Surprisingly, 12 percent of survey respondents indicated there was no advantage to the business being in Montana. One response was: "None; it's poverty with a view."

The most frequently indicated barriers to manufacturing growth or new business formation in Montana were distance to markets and/or associated transportation and shipping costs (18 percent of responses) and lack of skilled or available workforce (26 percent). Regulations and taxes were also very common responses (31 percent), but many respondents did not differentiate between state and federal regulation or specifically mention federal regulations, which would apply in any state. Property tax, equipment tax, and workers' compensation rates were frequently identified as Montana-specific issues.

Important Business Issues

Survey recipients were given a list of business-related issues and were asked to rate each in terms of its importance to their businesses. There was no specified time frame, indicating the general and enduring nature of these issues.

Health insurance cost was the No.l issue, and 80 percent of respondents rated it very important, similar to last year. Workers' compensation rates were very important to 63 percent of responding firms, with workers' compensation rules rated as very important to 51...

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