Billings: Economy

Major Industries and Commercial Activity

Agriculture has been one of the leading economic forces in Billings since its founding, and it continues to play a major role today. Because of extensive irrigation, the Yellowstone Valley and the northern Great Plains are some of the nation's most fertile agricultural regions. The city is the transportation, processing, and packaging center for this large, productive area. The main agricultural products include sugar beets, grain, and livestock such as cattle and sheep.

The energy industry (oil, natural gas, and coal) is also an important part of the economic picture in Billings. The mountains around the city and throughout eastern Montana are a rich source of coal, oil, and natural gas. A number of refineries and purification plants are located in the Billings area to process the raw materials into usable energy resources.

Billings is the retail and wholesale trade center for a vast area of land in the northern Rocky Mountain states and a primary and secondary market population of almost half a million people, reaching from Denver, Colorado, to Calgary, Alberta, and from Minneapolis, Minnesota, to Seattle, Washington. Billings is also the medical and educational capital of the region. The city's medical community, including two major hospitals and more than 40 clinics, provides the most advanced health care in the four-state area. Three major colleges and a highly-rated public school system provide jobs and a well-trained workforce. It is also difficult to underestimate the impact of tourism and recreational diversity on the area's economy. The proximity of nearby Yellowstone National Park, as well as a wide array of other wilderness territories, mountain trails, rivers, and streams in the area bring much-needed tourist dollars and act as a magnet to companies and workers looking to relocate.

Items and goods produced: raw and refined energy products, sugar, flour, farm machinery, electric signs, furniture, paint, metal ornaments, cereal, creamery and meat products, canned vegetables, concrete, sugar beets, wheat, beans, livestock

Incentive Programs—New and Existing Companies

Local programs

The Billings Small Business Development Center (SBDC) is part of a statewide network of resource and technical service providers that assist start-up and existing businesses. The SBDC staff provides confidential business counseling, training and information to small business leaders and entrepreneurs. Services are provided at no charge and are funded by the Small Business Administration, Montana Department of Commerce, Yellowstone County, and local organizations. Areas of assistance include technical assistance in writing business plans for new and existing businesses, financial analysis, planning and state and private capital sources; assistance with marketing research, analysis and strategy as well as advertising, packaging and promotion; business plan review and critique; preBusiness workshops; and one-on-one counseling for existing and start-up business management. Additionally, the Business Development Council of the Chamber of Commerce maintains a comprehensive inventory of local and state programs. It also helps identify location alternatives, provides technical assistance, and maintains current information on Billings and its trade area.

State programs

State of Montana tax incentives include property tax reduction; no inventory, use, or sales tax; new industry income tax credits; small business investment tax credit; and tax reduction on pollution control equipment.

Development Projects

In 2004 renovations were completed on the historic Acme Hotel on North Broadway. Built in 1911 and rich with local history, the hotel was converted to residential homes, lofts, and commercial space in an area that included several more loft developments from refurbished buildings such as the Securities Building, Montana Avenue Lofts, and a proposed development at One South Broadway. Recent additions to the city's cultural and commercial growth include the $6 million Skyfest Amphitheatre, which presents outdoor concerts alongside the Yellowstone River, a $6.2 Yellowstone Art Museum expansion, and the conversion of several former hotels that were once stops on the Northern Pacific Railroad into coffee shops, antique stores, and restaurants.

Economic Development Information: Billings Area Chamber of Commerce, 815 South 27th Street, PO Box 31177, Billings, MT 59107-1177; telephone (406)245-4111; toll-free (800)711-2630; fax (406)245-7333; email blgscvb @visitmt.com

Commercial Shipping

Via Billings Logan International Airport a number of carriers provide air freight and express mail service to the city. Burlington Northern Railroad and Montana Rail Link operate rail lines from the Billings area. Burlington Northern also operates an intermodal (surface, sea, and air transportation) hub in Billings.

Labor Force and Employment Outlook

The Billings-area work force is educated above the national average, and a 2004 study found that one in four workers was overqualified for the jobs they were performing, creating an excellent climate for technical and higher-wage businesses looking to relocate to the area. The Billings area economy is service-based which includes specialized manufacturing, processing, and professional services to support the region's rural agricultural and energy economies. Billings serves as the regional hub for medical services, higher education, professional business services, retail and distribution, and travel and lodging.

The following is a summary of data regarding the Billings metropolitan area labor force, 2004 annual averages.

Size of non-agricultural labor force: 73,300

Number of workers employed in . . .

trade, transportation, and utilities: 19,400

professional and business services: 8,500

educational and health services: 11,200

leisure and hospitality: 9,700

government: 9,800

Average hourly earnings of production workers employed in manufacturing: $14.87 (Montana average, 2004)

Unemployment rate: 4.1% (February 2005)

Largest county employers (2000)	Number of employees
Federal Government	2,480
Deaconess Billings Clinic	2,250
Billings School District #2	2,030
St. Vincent Hospital and Health Center	1,740
State of Montana	1,490
City of Billings	850
Better Business Systems	675
Yellowstone County	660
Wells Fargo Bank	615
First Interstate Bank	480

Cost of Living

The following is a summary of data regarding key cost of living factors for the Billings area.

2004 (3rd Quarter) ACCRA Average House Price: $227,500

2004 (3rd Quarter) ACCRA Cost of Living Index: 98.3 (U.S. average = 100.0)

State income tax rate: Ranges from 2.0% to 11.0%

State sales tax rate: None

Local income tax rate: None

Local sales tax rate: None

Property tax rate: 3.22% per $150,000 of assessed value

Economic Information: Billings Area Chamber of Commerce, 815 South 27th Street, PO Box 31177, Billings, MT 59107-1177; telephone (406)245-4111; fax (406)245-7333. Office of Research & Analysis, Montana Department of Labor & Industry, PO Box 1728, Helena, MT 59624; telephone (406)444-2430; fax (406)444-2638 or (800)633-0229 (within Montana) or (800)541-3904 (outside Montana); email questions4RAD@state.mt.us