Silver Bow-Deer Lodge economy: serving southwestern Montana.

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

The economies of Butte and Anaconda have long been intertwined. Copper used to be the connecting link; it was mined in Silver Bow County and refined in Deer Lodge County. But now the connection is workers. Each day about 700 people travel from Deer Lodge County to a job in Silver Bow County. In addition, there is the reverse flow of about 450 workers who live in the Silver Bow County but work in Deer Lodge County.

The Silver Bow-Deer Lodge economy also provides jobs to others living in southwestern Montana. Every day, almost 400 commute from Jefferson County, roughly 350 travel from Beaverhead County, around 300 come from Powell County, and about 160 from Madison County.

The largest basic industry is mining, accounting for roughly 28 percent of the local economic base. State government is second at 20 percent; it includes Montana Tech in Butte and the state hospital at Warm Springs. The utility industry represents about 20 percent of the economic base and mostly consists of the headquarters of Northwestern Energy.

The state government and utility industries are traditionally relatively stable and help to buffer volatility in other basic industries. Even though mining employment has remained stable since the mid-2000s, worker earnings plummeted in 2009, but have now regained their pre-recession levels. This may reflect the bonuses paid (or not paid) depending on world copper prices.

Manufacturing continues strong. Seacast is expanding its partnership with GE Aviation to build tubes, ducts, and other small fabricated metal parts for jet engines. REC Silicon operates on the ever-volatile and uncertain market where political considerations are always part of the equation.

Future growth rates in the Silver Bow-Deer Lodge economy depend crucially on the price of copper and other commodities. At the moment, the current trends are not favorable. In addition, the Golden Sunlight Mine in neighboring Jefferson County has been reducing its...