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UM survey: eastern Montanans support economic hub idea – Focus on Glendive

Eastern Montana has the untapped human capital and political will to create a commerce center to spur economic development and slow declining population in the area.

That according to a new survey spearheaded by Jon "Tony" Rudbach, University of Montana vice president for research and economic development.

Contact: Jon "Tony" Rudbach, UM assistant vice president for research and economic development, (406) 243-2148; Julie Dasinger, Sidney-based research assistant, (406) 482-4755.

Rudbach argues that competitive economic growth requires a community with infrastructure sufficient to support major industries and that the 21 depressed eastern Montana counties don’t have cities with sufficient resources and infrastructure to boost economic development on their own.

“What we need to do is create a city that has a population somewhere between those of Kalispell or Bozeman – about 25,000 people,” Rudbach said. “And we assume that most of the work force derived from existing Montanans would not move to the new hub city, but would continue to live in their rural communities or ranches and then commute to the economic center and then return home with their paychecks.”

A Workforce and Interest Survey to Establish an Economic "Hub" in Eastern Montana: http://www.umt.edu/research/FILES/Hubsurvrpt.pdf

By Missoulian.com

Full Story: http://missoulian.com/articles/2006/01/09/breaker/doc43c2eca259fb8027387632.txt

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UM SURVEY: EASTERN MONTANANS
SUPPORT ‘ECONOMIC HUB’ IDEA

MISSOULA —

A new survey suggests that eastern Montana has the untapped human capital and political will to create a new "center of economic commerce," which could be used to spur development and reverse declining population trends in the area.

"A Workforce and Interest Survey to Establish an Economic ‘Hub’ in Eastern Montana" was produced by The University of Montana. It’s online at http://www.umt.edu/research/econdev.htm.

The survey was spearheaded by Jon "Tony" Rudbach, UM associate vice president for research and economic development. He argues that competitive economic growth requires a town or city with infrastructure sufficient to support major industries in order to take off, and that the 21 depressed eastern Montana counties don’t have cities with sufficient resources and infrastructure to boost economic development on their own.

Full Story: http://news.umt.edu/index.asp?sec=1&too=100&eve=8&dat=1/10/2006&npa=1019

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Glendive named as economic hub city

By Margaret Brinkley
Ranger-Review Staff Writer

A new survey suggests that eastern Montana has the untapped human capital and political will to create a new “center of economic commerce,” which could be used to spur development and reverse declining population trends in the area.

After intense review of demographic and survey data, Jon “Tony” Rudbach, University of Montana associate vice president for research and economic development has named Glendive as the ideal candidate for the new hub.

The survey, taken in 2005, was spearheaded by Rudbach. “What we need to do is create a city that has a population somewhere between those of Kalispell or Bozeman – about 25,000 people,” he said. “And we assume that most of the workforce derived from existing Montanans would not move to the new hub city, but would continue to live in their rural communities or ranches and then commute to the economic center and then return home with their paychecks.”

The Dawson County Economic Development Council has been involved in the discussion of an economic center since first approached by Rudbach a couple of years ago.

“We feel the ‘hub city’ concept makes a lot of sense because the people who live in eastern Montana choose to do so because of our open spaces and our lifestyle, which means that we are spread out, and yet we are not opposed, as a workforce, to traveling for good employment opportunities,” said Scott Duke, DCEDC chairman. “That’s the hub city concept.”

The Dawson County Commissioners are behind the concept as well. Commissioner Adam Gartner acts as the county’s liaison to the DCEDC and is also in favor of the hub city concept.

“It’s a long range goal that will take commitment and support from the community and especially community leaders,” Gartner said. “I seriously believe that it’s a good long range plan. It’s a great goal to strive for.” He said a hub city would be a great economic benefit to the area and even though there are some challenges to overcome, the reward will be worth it. “We need a boost in our economy here, eastern Montana needs a lot,” he said. “We don’t want a big metropolis, but it would sure be nice to grow a little.”

According to a press release from UM, “A Workforce and Interest Survey to Establish an Economic Hub‚ in Eastern Montana” was produced by The University of Montana. It is online at http://www.umt.edu/research/econdev.htm.

Rudbach argues that competitive economic growth requires a town or city with infrastructure sufficient to support major industries in order to take off, and that the 21 depressed eastern Montana counties don’t have cities with sufficient resources and infrastructure to boost economic development on their own.

His solution: Montana should create an “economic hub city” in the east that could attract outside businesses. Economic development activities would be concentrated in this town to improve transportation, information and education infrastructure. However, the workforce would be drawn from wide-spread communities and would commute to the “economic hub” for jobs.

Rudbach said Montanans hear constantly that their state underperforms economically. However, he said the western portion of the state – an area that has been referred to by Gov. Brian Schweitzer as “the boot,” because of its shape – actually performs at or better than the national average. The eastern counties, however, drag down state averages.

“Maintaining the status quo for eastern Montana is not an option,” Rudbach said. “To do nothing will allow the downward economic slide to continue, with rapid loss of regional community infrastructure and services.”

Last year, UM collected 1,122 usable surveys regarding the hub proposal. The survey was administered at 13 sites in 11 eastern counties. No one under 18 years old was surveyed. Rudbach said they found that respondents had more formal education than the 2000 U.S. Census suggested, and there were fewer survey participants listing themselves as employed by farms or ranches than expected.

More than 90 percent of respondents supported the creation of an economic cluster, even if they were not interested in taking a job in the hub. If the hub generated better-paying jobs with benefits, 63.5 percent of respondents would be interested in taking such jobs. And if a hub city were created, 65 percent to 73 percent of families would drive up to 60 miles to take advantage of additional retail shopping, health centers, entertainment and higher education.

More than 50 percent of respondents were concerned about the economic future of eastern Montana for themselves, and more than 73 percent were worried about economic opportunities for their children. In addition, 91.1 percent of respondents saw a need for “outside intervention” to grow the economy of eastern Montana.

“Eastern Montana has a lot to offer,” Rudbach said, “especially its stable, educated and ethical workforce.”

How would one create an economic cluster in eastern Montana? Rudbach said Montana needs to land an “anchor company or institution” in the area. He said something like an IRS processing facility or Medicare claim center — agencies that rely on storing or processing electronic data — could be operated in Montana as easily as in metropolitan areas.

The hub city also would need enhanced educational resources, and a higher level of culture, entertainment and recreation would be necessary to satisfy the needs of a creative workforce and their families.

“Our survey shows there is support for intervention in eastern Montana,” Rudbach said. “We need to help the regions of our state that need it the most.”

http://www.rangerreview.com/digest/

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