Manufacturing outlook 'positive'

Montana manufacturers remain optimistic about their future, according to speakers Thursday at the Mid-Year Update to the Economic Outlook Series.

“The outlook is positive, which is a reflection of what is going on at the national level. There is an expectation of higher sales, an increase in production levels and greater profits,” Glenn Oppel, Montana Chamber of Commerce Government Relations director, told nearly 75 people Thursday at a seminar in Kalispell.

A survey of manufacturers showed 47 percent expect improved conditions and 40 percent are planning major capital expenditures, according to the University of Montana Bureau of Business and Economics Research.  

Oppel said the challenges Montana manufacturers identify mirror challenges on the national level.

“Health insurance, 80 percent say that’s their biggest challenge ahead. In Montana it’s not surprising that workers’ compensation rates would be identified as a big challenge, since we have some of the highest premium rates in the nation,” Oppel said.

Oppel said that the state Chamber has been working to reduce the premiums and has decreased them by about 25 percent.

More than half of the manufacturers surveyed identified shortages of qualified workers as important. Foreign competition was ranked as the least important issue they faced.

“We have what is starting out to be a very disappointing year for the U.S. economy ... We have half of the year in the books, so to speak, with a 1 percent growth and we all hoped for a lot better than that,” said Patrick Barkey, director of the Bureau of Business and Economic Research. 

“One of the things that is really looking up for the national economy has been manufacturing overall,” Barkey said. “There are signs that there is health and vitality in that sector.”

According to the U.S. Bureau of Economic Analysis, Montana manufacturing increased by 3.6 percent from 2012 to 2013 in real earnings. 

During this time, the manufacturing sector in Flathead County had an increase of $9 million in real wages.

Thursday’s seminar was hosted by the Montana Chamber Foundation and the University of Montana.

Reporter Aaric Bryan may be reached at 758-4441 or by email at abryan@dailyinterlake.com.