Office of Economic Opportunity Weekly News

In this Issue…

– A Workforce for the 21st Century
– Ethanol Workshop for Rural America
– Building Bridges
– Upcoming Events
– Special Note

A Workforce for the 21st Century

Montana’s success in diversifying its economy will largely depend on the presence of a highly motivated, strategically educated
workforce with a highly developed capacity for critical and innovative thinking.

Companies currently looking to expand or locate in Montana must have access to a highly qualified workforce. With a statewide
unemployment rate at 4.6% and as low as 3% in several of our larger cities, worker availability is a serious concern to many new or
expanding. Efforts to date that have analyzed Montana’s workforce have not had much focus on underemployment. Underemployment
occurs when a worker is employed at low-paying jobs that require less skill or training than the workers possess.

We are now completing a collaborative effort by the Dept. of Labor, the Bureau of Business and Economic Research (Paul Polzin) and
our office to determine the level of underemployment in Montana. This study will be critical in our efforts to obtain meaningful data for
businesses that want to expand or relocate in this state. It will also help us to understand where we have real shortages so we can
focus our resources on the training programs that can fill the gaps.

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Ethanol Workshop for Rural America

Mark Lindberg, who oversees energy and agriculture for the Governor’s Office of Economic Opportunity, attended the Ethanol Workshop
for Rural America in Billings, Montana last week in a demonstration of support for Ethanol production. The workshop offered insights into
the background, environmental benefits, and economic advantages of Ethanol production in Montana. Lindberg explained that while
Ethanol offers clear and essentially indisputable environmental advantages by reducing the reliance on non-sustainable fossil fuels, the
production of Ethanol also offers comprehensive benefits to rural communities through economic stimulation.

Ethanol is an alcohol based alternative fuel produced by fermenting starch crops that have been converted into simple sugars.
Agriculture is Montana’s number one income producing industry and represents 8.7% of the states employment force. Because
agriculture is an integral component to the production of Ethanol fuel, the demand for feedstocks such as corn, barley and wheat
increase in relation to the demand for Ethanol. This means that through support of Ethanol production we can in fact stimulate
Montana’s largest economic contributor.

Lindberg went on to say that ethanol fuel must be competitive with other fuel sources in order achieve the desired economic impact in
rural Montana. In addition, Montana’s wheat and barley ethanol plants must work together with local feedlots in order to be more
competitive with corn ethanol plants in other regions of the country. "Collaboration is critical," said Lindberg. "By working together,
Montanans can produce ethanol, create good quality feed for the Montana cattle feeder industry and reduce the costs associated with
transporting Montana wheat and barley by selling locally. The bottom line is more money in the pockets of Montana farmers."

The workshop was coordinated by EPAC (Ethanol Producers and Consumers) a non-profit educational organization, and was
sponsored by the U.S. Department of Energy, Regional Biomass Energy Program, in cooperation with The Montana Departments of
Environmental Quality, and Agriculture and many more.

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Building Bridges

Representatives from the Montana University System, the Board of Regents, the state legislature and the state government met last
week in order to discuss a new way of thinking about the Montana economy. The Governor’s Office of Economic Opportunity hosted the
discussion. Dr. Stuart A. Rosenfeld, principal of RTS, Inc. of Raleigh, NC, talked about a new view of economic development by focusing
resources on those businesses that can have a competitive advantage in Montana while sharing infrastructure, labor markets and
services. This strategy is called "clustering."

Dr. Rosenfeld is one of the premier authorities on cluster strategies as is evidenced by his extensive work in the field. Rosenfeld has
authored nearly 100 articles and books on the topic and has worked on everything from economic development in the European Union,
to stimulating the economy in rural and underdeveloped regions.

"We’re excited to bring the state’s leadership together in a forum to discuss this cutting edge approach to economic development," said
Dave Gibson, the state’s Chief Business Officer. With the collaboration and guidance of the Governor’s Office of Economic Opportunity,
Rosenfeld was able to introduce the advantages of this highly acclaimed, and innovative system of economic development.

"My office is in the process of identifying industries with a high growth potential. We have already developed the blueprint for
implementing that cluster-based growth. A significant element of that blueprint includes improving the abilities of businesses in this
state to collaborate," Gibson said. Next steps for the project include the finalization of the industry identification process followed by
business group formation and a tailoring of the state’s economic development programs to encourage growth in those sectors.

"This is a long-term strategy," said Gibson. "But identifying opportunities for our businesses to work collaboratively is the only way we
can create critical mass in many of our industries — and critical mass drives competitiveness. Considering the economic challenges
facing Montana, this is the most effective strategy to create real growth for our existing businesses."

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Upcoming Events

Montana Farmers Union Annual Meeting

Mark Lindberg will attend this annual meeting, which will cover current agricultural issues, including farm policy updates.

Where: Heritage Inn, 1700 Fox Farm Road Great Falls. MT

When: October 24 2:00 p.m. – October 26 8:30 p.m.

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Seed and Venture Investing

Dave Gibson will participate in this meeting to discuss methods to encourage venture capital investing.

Where: 840 Helena Ave

When: October 29 1:30 – 3:30pm

Special Note

Desiree Taggart, the Office of Economic Opportunity’s Workforce Specialist passed away last week after a brief struggle with cancer.
Marla Tilton will be the office’s point-of-contact for workforce development issues. Desiree will be missed for her skill, dedication and
friendship.