50 in 50: Montana

50 in 50: Montana

50 states in 50 weeks: U.S. states economic and infrastructure highlights.

Key Economic Indicators

GDP: $49.3 billion

GDP 5-year compounded annual growth rate (CAGR) (2017-2021): 1.8% (U.S: 1.6%)

GDP per capita: $45,068 (U.S.: $58,154)

Population: 1.1 million

Population 5-year CAGR (2017-2021): 1.2% (U.S.: 0.5%)

Unemployment: 2.3% (U.S.: 3.9%)

Economic health ranking: #23 out of 50

Fiscal health ranking: #22 out of 50

Overall tax climate ranking: #5 out of 50

Key Sectors and Metro Areas

Top five industry sectors by 2021 GDP:

Top three industry sectors by GDP 5-year CAGR (2017-2021):

Top three metro areas by GDP:

• Billings
• Missoula
• Great Falls

Top three areas by population 5-year CAGR (2016-2020):

• Missoula
• Billings
• Great Falls

Infrastructure Highlights

Infrastructure: ASCE Infrastructure Grade (2018): C

Since the publishing of the last Report Card for Montana’s Infrastructure, there has been increased awareness of the need to improve schools, wastewater, drinking water, dams, and stormwater infrastructure, especially when considering the population growth the state has had since the report was issued. Authorities in the state are working on how to allocate IIJA dollars and looking to find solutions to make sustainable investments. Several large “set-aside” initiatives in areas like rural water, Indian water rights, and National Park Services included in the bill will benefit The Treasure State. One of the main priorities is the St. Mary diversion dam, which is a hundred years old and carries many irrigation systems and environmental species, issues that need to be addressed. About $400 million will go towards water rights settlement payments to Indian tribes in Montana. Separately, the state will receive around $3.9 billion from the legislation over the next five years, divided into the following categories of projects (additional funds may be deployed as federal grants get awarded to states):

Construction spending (Value of Construction Put in Place – CPiP):

• Private Nonresidential 2020 CPiP: $771 million; -2.1% 5-year CAGR (2016-2020), below overall U.S. CAGR of 2.0%
• State & Local 2020 CPiP: $1.5 billion; 11.9% 5-year CAGR (2016-2020), above overall U.S. CAGR of 4.8%

AE Industry

ENR 500 firm headquarters (2021): None

M&A activity since 2018:

• 5 deals with buyers from Montana
• 8 deals with sellers from Montana

For customized market research, contact Rafael Barbosa at [email protected] or 972.266.4955. Connect with him on LinkedIn.