Flathead's economy faring well

Once again, it appears that the Flathead Valley has dodged the effects of a national economic challenge.

The "crisis" that has enveloped the mortgage-loan industry hasn't had much effect in the Flathead, according to local lenders

The Flathead mortgage market has seen few of the defaults, delinquencies and foreclosures that have plagued some areas of the country. Those loan woes surfaced particularly in the subprime market where borrowers with bad credit histories, low incomes or other financing red flags got loans they now can't repay.

Perhaps it's the conservative nature of local lenders, but it also could be that the Flathead historically has been insulated from wider economic woes. Recessions and economic downturns simply don't make much of a dent here.

More evidence of that insularity came last week from a leading bank economist who emphasized the strength both of the Flathead Valley and Montana economies.

On a variety of fronts such as home sales and job growth, Montana is faring very well.

He touted the state's standing as one of the top five growth areas in the country as Montana adds 1,000 jobs each month. And he called the Flathead's growth rate of 5 percent "pretty spectacular."

A great source of the strength of the Flathead economy is its diversity. Remember that a 2004 economic study ranked Flathead County No. 1 for the most balanced employment out of eight states in the Rocky Mountain West.

The local economy spreads its employment across a broad array of sectors: construction, retail, manufacturing, natural resources, health services, education, finance and even arts/entertainment/recreation.

This kind of diversity - with jobs not concentrated in just one or two areas - protects communities against economic downturns.

And that protection is likely once again to help the Flathead stand above the fray and continue to thrive despite any national difficulties spawned by mortgage woes or other factors.