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 Wednesday, December 22, 2004
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Speaker tells city to look ahead, not back


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The base of central Montana's economy is shifting away from natural resource to service industries. That doesn't mean the majority of us will have to make a living serving burgers to tourists, however.

"Don't be upset about it. This is what is happening and what you have to work with," Dr. Larry Swanson told about 230 people who showed up Tuesday afternoon for the Great Falls Economic Summit.

During the past decade in Cascade County, health care services grew by $30 million. In contrast, net farm income dropped by $14 million.

The challenge now is to come up with ways to build off those trends instead of looking back at the way things used to be, said Swanson, the associate director for regional economics for the Center for the Rocky Mountain West in Missoula.

And Great Falls is off to a solid start.

"Great Falls has a plan that is well grounded, and that's not always the case," Swanson said. "There is a good foundation here."

Local officials were ready with a list of evidence.

The Great Falls Development Authority saw recruiting efforts pay off during the 2003-2004 season with six companies — Biolife Plasma, First Horizon, International Malting Co., Shel-Bar, a new technology arm of Precision Lift, and Centene Corp. — announcing plans to set up shop locally.

The companies will bring 620 jobs, $8.4 million a year in payrolls and invest almost $76 million in facilities.

Each serves out-of-the-area customers, which means the money brought in is new to the local economy.

Benefis Healthcare and the Great Falls Clinic are expanding.

Explore! The Big Sky, a national signature event for the Lewis and Clark Bicentennial celebration set for June 1 through July 4, is expected to attract 80,000 visitors to the area who will spend $12 million.

Malmstrom Air Force Base's merits are being lobbied in Washington, D.C., during the current BRAC process, which will trim about 20 percent of the military's bases.

Those kinds of planned efforts can help redirect negative trends in central Montana's economy, such as a dwindling population base, Swanson said.

One factor keeping Cascade County's growth rate relatively flat is the dependence of the local economy on agriculture, he said.

"There's a lot of instability in agriculture, but you can grow beyond that so the pull of ag is reduced," Swanson said.

For instance, manufacturing that adds value to agricultural products keeps the industry profitable in other areas of the United States. Those areas are located near cities, Swanson said. Recruiting additional value-added agricultural business to Great Falls is another item presented on the laundry list of on-going economic development activities.

The summit was organized to provide insight about trends in the local economy and an update on efforts to steer the area's economic future.

Great Falls City Manager John Lawton said the summit really was a progress report on the local economy — one that's been presented several times at different venues in recent years.

But this time, more people showed up to listen.

"There are a lot of faces here I don't recognize. That shows me that the belief that it is possible to change our economy is catching on with more people," he said.

Sharon Gerhart was a first-timer.

"I have four grown children; one works as a nurse in Great Falls, and the other three live out of state," she said. "Two would like to come back."

Forde Nursery owner Bruce Forde is a new Great Falls Development Authority board member. Tuesday was the first time he's attended a formal presentation on the condition of the local economy.

"There is a lot of excitement in economic development now and that's paying dividends with people's attitudes about the economy improving," Forde said.

Reach Black at (406) 791-6502 or by e-mail at jdblack@greatfal.gannett.com.

Originally published December 22, 2004

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