Gallatin Valley Economy – While vibrant, our economy still needs work

What changes has our economy seen in the past decade? Certainly there has been a lot of growth in Gallatin County, with a 34.4 percent increase in population between 1990 and 2000. Now Gallatin Valley is home to the largest technology sector in the state and is one of the leading manufacturing centers in Montana.

By Alicia Bradshaw- executive director of the Gallatin Development Corporation in Bozeman

Since 1970, Gallatin County gained nearly 37,000 residents. Our population is now within a whisper of 70,000 people with an annual rate increase of 2 percent. Our housing units increased by 71.1 percent from 1980 to 2000. What has changed over time with our economy? Over the past decade our income has grown by 90 percent, with the highest increase occurring in the 1990s. Until that time, Gallatin County per capita income lagged behind Montana’s. Our 1999 median household income increased to $38,120, and our poverty rate lowered to 13 percent. During the same time period we saw a decline in our unemployment rates. Our 2002 unemployment rate of 2.6 percent ranks well below the average in Montana and the U.S.

Is Gallatin diversifying its economy? In 2001, the private sector outpaced government as the largest employment sector in the County. For the first time, the manufacturing sector surpassed MSU as the largest basic sector industry, according to University of Montana’s Bureau of Business and Economic Research. Over the last decade manufacturing more than quadrupled in size in Gallatin County. Two areas in the state saw growth in manufacturing: the Flathead and Gallatin. Gallatin County’s manufacturers are typically small companies in light manufacturing, employing less than 25 people with average salaries of $29,000. Of companies responding to the 2002 GDC Manufacturing Survey, 46 percent predicted growth in the coming year.

While it’s true the tech industry saw a downturn and companies in the Gallatin Valley were impacted, the technology sector still provides average salaries between 46-50K. According to the 2002 GDC Tech Survey, 35 percent of technology companies indicate growth over the next year. Companies like RightNow Technologies, Cutthroat Communications and Printing4Less.com are now having some of their best corporate moments.

Gallatin County has one of the highest numbers of startup businesses in Montana. GDC has seen a continuous increase in the demand for business assistance. Over the last two years, Gallatin Development Corporation assisted nearly 500 businesses with funding of over $10.1 million.

So what distinguishes Gallatin County? We reside in a county with the highest education attainment level in the state, with 41 percent of the population holding a bachelor’s degree. Gallatin County continues to produce a higher than average number of patents, which speaks of our innovative entrepreneurial climate. We rank third in the state for the highest number of jobs behind Yellowstone and Missoula Counties.

We are home to a university that provides opportunities for world-class research and development as well as a highly skilled workforce.

Our commute time is only 17.1 minutes, below the national average. Persons per square mile average 26.0, compared to 6.2 in Montana. Our physician per 1,000 people is 1.9, which is on par with the national average. Interestingly, our average per capita retail sales is higher than the state average at $11,603 compared to $8,853.

What lies ahead? Economists continue to forecast a growth trajectory in the Valley over the next decade, but at a slower rate of 1.3 percent annually. Growth in primary industries is expected, but will depend on our ability to foster an entrepreneurial community. Some of the attributes needed to become an entrepreneurial community are: provide a place for innovation and entrepreneurs to thrive, the ability to attract skilled talent, and maintaining a good quality of life.

While we have made great strides to improve our economy over the last decade, we still have work to do.

Alicia Bradshaw is the executive director of the Gallatin Development Corporation in Bozeman.

http://bozemandailychronicle.com/articles/2003/04/08/business/col-alicia.txt