Economic leaders share concerns at roundtable

Montana has some strong economic numbers on its side in comparison to the rest of the country, but there are still many substantial challenges to the state’s business growth. 

Gov. Steve Bullock and one of the co-chairmen of the Main Street Montana Project were in Kalispell Monday to find out what Northwest Montana business leaders think will help them overcome those challenges. About 120 leaders in business, labor, education and economic development gathered at Flathead Valley Community College for the sixth and final Main Street Montana Project roundtable. 

“I’m not here to say, ‘This is how we go forward,’ but to get input,” Bullock said. “Montana has an incredible work ethic, and that has helped us come out of the recession better than most states.”

The Main Street Montana Project was announced in May as a way to create a transparent economic development plan that originates with the needs of Montana businesses, not with the government. The mission of the project is to develop a self-sustaining plan for supporting the creation, recruitment and retention of Montana jobs.

Bullock asked Larry Simkins, president and CEO of the Washington Companies, which employs about 1,700 people in Montana, and Bill Johnstone, president and CEO of D.A. Davidson & Co., to take on the leadership of the project.

“Ultimately we’ll have a blueprint,” Simkins said in an interview before his presentation. “It should be created by the first quarter of 2014, and it won’t just be put on the shelf. It will be concrete actions that we will be taking.”

Simkins said around 800 people participated in the five previous roundtable events. One of the biggest concerns he cited from research around the state includes work-force education.

“That’s at the top of the list, is being able to find skilled workers,” Simkins said.

Other themes have been the need for better technology infrastructure throughout the state and access to capital. 

During the FVCC roundtable small-group sessions, those were reported as concerns also, but many challenges somewhat unique to Kalispell and the Flathead Valley were also cited. Each of the tables was asked to talk about opportunities and hindrances to economic growth and report on those at the end of the session.

The closeness to Canadian markets and its large population was repeatedly mentioned as an opportunity, though a few tables said that the long lines at border crossings can be a hurdle in luring Canadians to the valley.

Many participants noted that the Flathead Valley has a number of assets helpful to business — a high quality of life with ample outdoor recreation, a good education system and access to superior health care. One table listed a high level of entrepreneurial spirit in the valley as a boost for growth.

Making Montana more attractive to workers, especially younger people, is a concern for many in the business community. One group said that work-force turnover is a big problem locally as employees often leave within a few years for better-paying jobs in other areas.

Other challenges listed included the high cost of transportation, both by air and ground, a weak work ethic among many employees, and uncertain regulatory and tax environments. Limited liquor licensing and the difficulty of starting up a new restaurant are impediments to the kind of growth that would help revitalize Kalispell’s downtown, one table said. 

The Main Street Montana Project will now analyze the answers from throughout the state and send county-specific surveys to the business community. The project will also look at what has worked and not worked economically for surrounding states. 

Part two of the process involves legislative implementation, Bullock said.