Montana's manufacturing industry.

• Author: Morgan, Todd A.

Despite the recent recession and extensive declines in wood products, manufacturing remains a substantial component of Montana's economy. Measured as products left the plants, Montana manufacturers had sales nearing $7 billion in 2009. The state's manufacturers generated more than 21,400 jobs (Figure 1), and workers earned more than $1 billion in labor income during 2009 (Figure 2).

The manufacturing sectors account for more than 20 percent of Montana's economic base, and prior to the recent downturn, four Montana counties each had more than 2,500 manufacturing employees and more than $120 million in labor income from manufacturing (Table 1).

The full force of the global financial crisis and recession did not hit Montana manufacturers until late in 2008, leading to substantial declines in 2009. Value of production dropped by an estimated $1 billion to approximately $7 billion, with estimated employment at Montana manufacturers dropping from 23,800 (including the self-employed) in 2008 to approximately 21,400 in 2009. Workers' earnings fell by an estimated $110 million (10 percent) to an estimated $1 billion during 2009.

[FIGURE 1 OMITTED]

[FIGURE 2 OMITTED]

Comparing 2009 to the recession year of 2001, long-term employment and labor income growth (in constant dollars) occurred in a few manufacturing sectors, but total employment and labor income during 2009 are estimated to be lower than 2001 levels for manufacturing as a whole in Montana (Table 2).

Year-to-year declines were largest in Montana's forest products industry (see pages 31-32) with segments of Montana's metals, machinery, and nonmetallic minerals manufacturers also suffering declines. None of the major manufacturing sectors showed increased employment in 2009, although chemical/petroleum manufacturing did see a slight increase in worker earnings. Even with these declines, Montana manufacturing out-performed U.S. manufacturers as a whole, who saw employment declines exceeding 15 percent in 2009.

Just under 63 percent of the Montana manufacturing firms BBER surveyed reported decreased profits for 2009, with 18 percent indicating profits higher than 2008.

As indicated on page 4, manufacturing employment in Montana (like the test of the nation) has a high proportion of male workers. Our survey highlights some of the differences in male and female employment. Responses indicate that females comprise about 25 percent of Montana's total manufacturing workforce, with women holding about...