The manufacturing landscape of our state has changed significantly over the last 25
years, and MMEC has been a partner working side by side with manufacturers through
it all. We’ve watched as very large natural resource manufacturing operations gave
way to a wave of entrepreneurship, high-tech manufacturing and value-added agriculture
manufacturing. These new industries along with our traditional manufacturers have
diversified Montana’s economy and reduced the chance of economic recession.
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Spika Design & Manufacturing is a family owned business making access solutions, proudly
employing 55 to 60 Montanans. Almost 100% of Spika's revenue generated is outside Montana, bolstering Montana's
economy.
THEN
Montana supplies more organic crops than any other state in the nation.
Farmers and ranchers grow a plethora of raw products such as barley, wheat, seeds,
etc.
To process these ag products, they were shipped out of state, and the producers would
only receive about 14 cents on the dollar profit.
NOW
By 2021, “Value Added Agriculture” is exploding in Montana.
As just one example, raw barley is $3 a bushel, whereas malted barley can be sold
at $6 a bushel.
Companies like Wheat Montana and Montana Eggs, among others, have helped Montana expand
into Value-Added Ag.
The Changing Landscape of Montana Manufacturing: Agriculture
While large-scale farming of commodities such as wheat and barley continues, it is
complemented by rapid growth in specialty crops, value-added goods, and direct sales
and interactions with consumers.
THEN
Montana used to be home to large corporations based around natural resource extraction.
Companies such as saw mills, metal and oil refineries, and other agricultural processing
operations employed large numbers of workers. Over time, over-logging, outdated technology,
and a cascade effect of closing mines and foundries brought an end to the era of many
big corporations in Montana.
NOW
The number of manufacturers in Montana has grown, but now most Montana manufacturers
are small businesses. More than half have fewer than five employees; and roughly 85%
have fewer than 20 employees.
The state is ranked highest in entrepreneurial activities and has been #1 four years
in a row according to the Kauffman Foundation.
The Changing Landscape of Montana Manufacturing: A Strong Entrepreneurial Spirit
Over time, you could say that the landscape has “flipped,” because we now have a large
number of small manufacturing businesses. Their success is founded on a strong entrepreneurial
spirit and a commitment to creating and maintaining good jobs in our state.
THEN
Montana owes a lot of its history to large extraction companies like Anaconda Copper
Mining (ACM). The landscape was dotted with lumber mills and metal refineries taking
advantage of the state's abundance of natural resources. Once extraction became economically
unviable and large companies left, the cascade effect was felt on other downstream
industries.
NOW
Today, companies have diversified into other high growth industries like the photonics
industry in collaboration with local universities such as Montana State University,
resulting in 35 Photonics companies in the state.
Exporting of products including value-added ag, outdoor clothing and equipment, and
machinery, leading to a rise in manufacturing exports of about 120% to $1.18B in 2019.
The Changing Landscape of Montana Manufacturing: Product Diversification
Building on the popularity of outdoor recreation in Montana, the state is home to
numerous companies that produce sporting goods, outdoor clothing and equipment, and
pet supplies.
2310 University Way Building 2 Suite 1 P.O. Box 174255 Montana State University Bozeman, MT 59717-4255