By Casey Harper, The Center Square

Newly released small business survey data shows that those businesses cite the labor market as their top concern.

The National Federation of Independent Businesses released a survey of small businesses which found that the labor market is their top concern, with 43% of small businesses saying they have job openings they cannot fill.

“The labor force participation rate remains below pre-COVID levels, which is contributing to the shortage of workers available to fill open positions,” NFIB Chief Economist Bill Dunkelberg said. “Small business owners are struggling to take advantage of current sales opportunities.”

The concern from small business owners comes as new federal hiring data released Friday showed that hiring has slowed. The U.S. Bureau of Labor Statistics released the data, which showed employers added 236,000 jobs in March, keeping unemployment at about 3.5%.

“The labor force participation rate, at 62.6%, continued to trend up in March,” BLS said. “The employment-population ratio edged up over the month to 60.4%. These measures remain below their pre-pandemic February 2020 levels (63.3& and 61.1%, respectively).”

NFIB, which boasts thousands of members, has also become outspoken on the Biden administration’s policies, pushing back on Biden’s environmental regulations and tax increases in a time when businesses are already struggling to deal with elevated inflation.

The small business group launched an ad campaign to push back on tax increases on small businesses proposed in President Joe Biden’s latest budget.

“Main Street cannot afford these new tax increases,” said NFIB President Brad Close. “As expectations for better business conditions remain low, while high inflation and worker shortages continue to plague Main Street, these proposals would hurt small businesses’ ability to recover, grow, and create jobs. The White House should instead focus on promoting economic growth by providing certainty, such as permanently extending the Small Business Deduction.” 

Commercial

Mike Stock/ Stock Land Properties Inc, 3911 Central Ave, Com Remodel, $50,000

Jackpot Nevada LLC/ Guzman Construction, Inc., 1413 13th St W, Com Remodel, $22,000

Bill Schwarzkoph/ Jones Construction, Inc, 3936 Avenue B, Com Remodel, $65,000

Billings Food Bank Inc/ Sletten Construction Companies, 218 N 16th St, Com Addition, $250,500

Lees Construction/ Thompson Const. Co. Inc-Pools, 1965 Home Valley Dr,  Com Addition, $500

Thomas Property & Investments LLC/ Es Construction, 1731 Poly Dr, Com New Office/Bank,  $1,800,000

Pam Ask/ Hardy Construction Co., 247 Main St, Com Remodel, $568,000

State Of Montana, 2915 Gabel Rd, Com Remodel, $70,000

Mackenzie Brown/ Savage Construction Inc, 2950 King Ave W Com Remodel – Change In Use, $65,000

Schneiter  Enterprises/ Sprague Construction Roofing Division, 1937 Clubhouse Way, Com Fence/Roof/Siding, $27,183

1208 Broadwater LLC/ Wyomont Exterior Design, 708 12th St W, Com Fence/Roof/Siding, $2,200 

Best Box Billings Mt 29th LLC/ Ke Construction LLC Building A, 991 S 29th St W,  Com New Other, $2,200,000

Pam Ask/ Hardy Construction Co., 3925 Grand Ave, Com Remodel, $377,000

Residential

Reeves, Rodney W & Pamela C/ David Ketterling Construction, 1025 Avenue F, Res New Accessory Structure $60,000

Mike Christensen Enterprises M /Michael Christensen Homes, 4905 Gold Creek Trl, Res New Single Family, $312,312

Infinity Home LLC/ Infinity Home LLC, 1039 Matador Ave, Res New Single Family, $265,726

Chamberlain Construction LLC/ Chamberlain Construction, 1318 Anchor Ave, Res New Single Family, $450,000

Lorenz Construction/ Lorenz Construction, 3543 Rachelle Cir, Res New Single Family, $254,442

Infinity Homes/ Infinity Home LLC, 935 Ortega St, Res New Single Family, $230,101

NA/Lorenz Construction, 3533 Rachelle Cir, Res New Single Family, $254,442

Magnus Land Development/ Brown Builders Inc., 6394 Signal Peak Ave, Res New Two Family, $360,322

Boyer Land LLC/ Michael Christensen Homes, 2518 Buffalo Ridge Trl, Res New Single Family, $450,000

Mike Christensen/ Michael Christensen Homes, 2506 Buffalo Ridge Trl, Res New Single Family, $450,000

Infinity Homes/ Infinity Home LLC, 955 Anacapa Ln, Res New Single Family, $176,872

4 Mt Homes Inc/ 4 Mt Homes Inc, 838 Hermosa St, Res New Single Family, $172,270

4 Mt Homes Inc/ 4 Mt Homes Inc, 832 Hermosa St, Res New Single Family, $174,984

4 Mt Homes Inc/ 4 Mt Homes Inc, 827 Hermosa St, Res New Single Family, $174,984

4 Mt Homes Inc/ 4 Mt Homes Inc, 826 Hermosa St, Res New Single Family, $172,270

4 Mt Homes Inc Sfr 833 Hermosa St 4 Mt Homes Inc Res New Single Family $174,422.00

4 Mt Homes Inc/ 4 Mt Homes Inc, 845 Hermosa St, Res New Single Family, $174,422

4 Mt Homes Inc/ 4 Mt Homes Inc, 839 Hermosa St, Res New Single Family, $172,270

McCall Homes/ McCall Development, 1762 St George Blvd, Res New Single Family, $132,014

McCall Development/ McCall Development, 1766 St George Blvd, Res New Single Family, $147,435

Infinity Homes/ Infinity Home LLC, 961 Anacapa Ln, Res New Single Family, $174,158

Infinity Homes/ Infinity Home LLC, 949 Anacapa Ln, Res New Single Family, $174,158

Green Jeans, LLC/ Green Jeans LLC, 1322 Anchor Ave, Res New Single Family, $331,140

Green Jeans LLC/ Green Jeans LLC, 1320 Emma Ave, Res New Single Family, $320,000

City Of Billings/ Majestic Homes, Inc, 930 Steffanich Dr, Res New Single Family, $163,572

John Haman/ HD Building Inc, 1326 Anchor Ave, Res New Single Family, $234,889

McCall Homes/ McCall Development, 6194 Johanns Meadow Ln, Res New Single Family, $198,617

McCall Homes/ McCall Development, 1758 St George Blvd, Res New Single Family, $147,285

McCall Homes/ McCall Development, 1750 St George Blvd, Res New Single Family, $132,564

Magnus Land Development/ Brown Builders Inc., 2923 Eagle Butte Trl, Res New Two Family, $341,556

Magnus Land Development/ Brown Builders Inc., 2927 Eagle Butte Trl, Res New Two Family, $341,556

Magnus Land Development/ Brown Builders Inc., 6393 Signal Peak Ave, Res New Two Family, $360,322

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By Lawrence W. Reed

“Montanans can be rightfully proud of the state’s direct connection to James J. Hill, one of American history’s greatest entrepreneurs.”

When Canadian-born James J. Hill died in 1916 at the age of 77, he left a monumental legacy of achievement. Builder of the Great Northern Railroad (now the Burlington Northern), he opened up the sparsely populated American West from St. Paul to Seattle. And he did it on his own dime.

Residents of Glasgow in Valley County will vouch for Hill’s local influence. The town’s very name derives from the moment that Hill spun a globe and landed his finger on Glasgow, Scotland. At least two other Montana towns materialized on our maps in similar fashion, whether by Hill’s finger or that of another Great Northern official—Malta in Phillips County and Harlem in Blaine County.

The story of the five transcontinental railroads built by 1900 often overlooks some remarkable lessons about private initiative and government subsidies. Four of the five transcontinentals received huge “donations” from Washington in the form of land grants and taxpayer cash. Hill’s Great Northern was the only one that accepted neither and the only one that never went bankrupt. 

Hill was unlike Leland Stanford, who used his political connections to get the California legislature to ban competition with his Central Pacific Railroad. Hill was happy to compete without political favors because he knew he could. He offered incentives to people to move west and help him develop the area in exchange for hauling their goods. One of those people was Friedrich Weyerhauser, who built his timber fortune in the Northwest in partnership with Hill’s railroad.

The lure of subsidies created powerful incentives for the other railroads to throw down tracks just to get the government goodies. That’s why hundreds of miles of track had to be replaced later before any train could ride them. Historian Burton Folsom, author of the classic book, “The Myth of the Robber Barons,” reveals that before the lines of the Union Pacific and the Central Pacific met where the famous Golden Spike connected them, teams from the two railroads blew up each other’s track to claim more land and cash from Washington. Congress stopped it by finally demanding they meet at Promontory Point, Utah.

Thirty years ago, I wrote a newspaper column about Hill. One of the papers that published it was the Havre Daily News. Havre was the headquarters of the western division of the Burlington Northern, the successor railroad to Hill’s Great Northern. The division’s president invited me to give a couple of speeches in town. He promised to put me up in an old but restored executive rail car that Hill had built himself.

For two nights, I lodged on the tracks in that beautiful car, marveling at its 19th-century fixtures. After my speeches, Burlington Northern workers hooked the car to a locomotive. I then experienced one of the most memorable rides of my life—west on the “Hi-Line” through the Marias Pass that Hill himself chose as the best route for his tracks, ultimately arriving and disembarking at Whitefish.

Montanans can be rightfully proud of the state’s direct connection to James J. Hill, one of American history’s greatest entrepreneurs.

Lawrence W. Reed writes a monthly column for the Frontier Institute in Helena, on whose board he serves. He is president emeritus of the Foundation for Economic Education and blogs at www.lawrencewreed.com.

Samuel Stebbins, 24/7 Wall St. via The Center Square

The U.S. job market is about to enter an era of unprecedented change that could impact tens of millions of workers. As robotics and artificial intelligence technologies continue to advance, companies will be able to leverage new, cost effective tools to create and deliver their products to the market, while reducing their need for workers.

Montana stands to see about 18 percent of its current jobs eliminated or reduced in scope by automation and AI (artificial intelligence) putting the state at the lower end – 34th – – of a ranking of states.

NetVoucherCodes, a U.K.-based voucher code website, automation and AI pose a high risk to 71,650 jobs in Montana in the coming years – the 17th smallest share among states.

Several media and tech companies, including BuzzFeed and Microsoft, have already stated their intentions to use artificial intelligence to generate content and improve their products. And while BuzzFeed claims that AI will not impact the size of its workforce, the announcement came a month after the company laid off 12% of its employees to cut costs.

The advantages AI can offer businesses is undeniable, and the implications are impossible to ignore. AI is capable of automating a wide range of tasks that, until now, have been performed by humans. But unlike human beings, an AI does not need regular paychecks or breaks. And as AI capabilities continue to develop, virtually no industry will be left untouched. (Here is a look at the fastest growing industries in America.)

According to a recent report from NetVoucherCodes, a U.K.-based voucher code website, automation and AI pose a high risk to 71,650 jobs in Montana in the coming years – or 18.3% of all jobs considered, the 17th smallest share among states.

Distinct from AI, automation – such as the software used in automatic checkout counters or robotics used in manufacturing – poses risk to the largest number of jobs in the coming years. In Montana, automation poses a high risk to 59,440 jobs, compared to 12,210 jobs exposed to risk from AI technology.

All data in this story was compiled by NetVoucherCodes. States are ranked on the share of all jobs that are at high risk of being replaced by AI or automation. Notably, NetVoucherCodes used an AI program to aid in its analysis.

The U.S. Environmental Protection Agency (EPA) announced approximately $65 million in funding from President Biden’s Bipartisan Infrastructure Law to address cleanup projects at three Superfund sites across Montana: the Basin Mining Area, in Jefferson County; the Carpenter Snow Creek Mining District, in Cascade County; and the Upper Ten Mile Creek Mining Area in Lewis and Clark County.

The funding is aimed at continuing the cleanup of long-standing contamination of Superfund mining sites and watersheds according to EPA Regional Administrator KC Becker.

This is a historic funding of $3.5 billion for Superfund cleanup work. The funding is not just for cleanup, however, it will also enable EPA to accelerate “essential work needed to prepare sites” for construction and to enforce communities to be “meaningfully involved in the cleanup process.”

U.S. Senator Jon Tester said he is “proud to have secured this funding and is working closely with the EPA to apply it.

The Infrastructure Investment Act actually packs in a lot of things like public transportation, water and climate provisions including “green” provisions, and cybersecurity that will impact communities in numerous ways. It is touted as creating “millions of jobs modernizing our infrastructure,” and turning the “climate crisis into an opportunity.”

In 1980, Congress passed the Comprehensive Environmental Response, Compensation and Liability Act, known as Superfund. The law gave EPA the authority and funds to hold polluters accountable for cleaning up the most contaminated sites across the country. When no viable responsible party is found or cannot afford the cleanup, EPA steps in to address risks to human health and the environment using funds appropriated by Congress, like the funding provided by the Bipartisan Infrastructure Law.

The Bipartisan Infrastructure Law is a once-in-a-generation investment that will create millions of jobs modernizing our infrastructure, turn the climate crisis into an opportunity, and put us on a path to win the economic competition for the 21st century. 

In a disaster how well would your business fare? 40 percent of businesses do not survive most disasters.
Emergency service providers are concerned about not only the survivability of Yellowstone County’s businesses, but also wondering what local businesses have that could assist the community in an emergency.
Ready Yellowstone, a subcommittee of the Local Emergency Planning Committee (LEPC), has launched a survey to which they are asking local businesses to respond. “The findings will form the basis of developing a plan to support increased preparedness among the business community,” explains Pam Sanderson, of United Way as Volunteer Center Director, and who chairs Ready Yellowstone.
The survey is very easy and quick to complete, said Sanderson, as she urged everyone to take a few minutes to respond. To request a link call 406-272-8510 or go to volunteer@uwyellowstone.org or go to Facebook to find the link readyyellowstone.org.
The survey will help LEPC in an effort to determine how prepared the cities and county are for various kinds of emergencies, and to help determine if there are actions LEPC could take that would be helpful, said Dianne Lehm, with the Big Sky Economic Development Authority (BSEDA), which is one of numerous local civic groups with representatives to LEPC. They hope, also, to gather information about what kind of resources local business might have that could be used in cases of emergencies to mitigate emergency situations, large or small, with things like equipment, open spaces or manpower.
The LEPC’s concerns arise from reports from FEMA, a federal agency that deals with disasters all the time, that 25 percent of businesses that do not immediately fail, do fail within the first year after a disaster and the US Small Business Administration reports that over 90 percent of businesses fail within the first two years. Every county is required by the Environmental Protection Agency, to have an LEPC. The Committee includes the director of the County’s Emergency Services, representatives of all the hospitals, schools, law enforcement, fire departments, and many other emergency responders, meets regularly to address emergency preparedness issues.

By Chris Woodward, The Center Square

Wyoming and Montana are among the states that are most dependent on the federal government, according to a new ranking.

The ranking, from the personal finance website WalletHub, compared the 50 states across metrics such as return on taxes paid to the federal government, federal funding as a share of state revenue, and share of federal jobs. 

Jill Gonzalez, policy analyst at WalletHub, said both Wyoming and Montana receive a large amount of federal funding as a share of state revenue.

“In Wyoming federal funding represents more than 56% of the state’s revenue, the highest share nationwide,” she said. “In terms of residents’ dependency, both states have a large percentage of federal jobs, over 2.8% of total employment.”

Wyoming ranks sixth out of 10 when it comes to most federally dependent states. Montana ranks ninth. 

Other states finishing in the top-10 are Alaska (No. 1), West Virginia, Mississippi, Kentucky, New Mexico, South Carolina, Arizona, and Louisiana (No. 10). 

The least federally dependent states are Nevada (No. 41), Delaware, Iowa, Massachusetts, California, Illinois, Kansas, Utah, Washington, and New Jersey (No. 50). 

Wyoming and Montana did rank among states with the lowest amount of federal contracts received per money in federal taxes paid.

Wyoming has the lowest amount of grants received per money in federal taxes paid. Wyoming also has the lowest amount of other financial assistance received per money in federal taxes paid. 

By Dan Brooks, Billings Chamber of Commerce

To date, 1,571 bills have been introduced, over 250 more than were introduced in the 2021 session. Of those introduced, approximately 1/4 are considered dead, either failing passage or missing a deadline. The Governor has signed into law 82 bills, including his tax package lowering taxes and providing tax rebates to Montanans.

Other tax changes coming up this week deal with the Montana Economic Development Industry Advancement (MEDIA) Act Film Tax Credit. Film tax credits offer incentives for film producers to practice their craft in our beautiful state. Originally passed in 2019 by Representative Wylie Galt, the tax credit was established at $10 million of first-come, first-served tax credits for qualifying media productions in Montana. Last legislative session, Speaker of the House Wylie Galt introduced HB 340 to remove the cap on the MEDIA Act tax credits. After a number of amendments through the process, the final bill increased the cap from $10 to $12 million.

That increase in the tax credit cap was at least partially responsible for the television series Yellowstone packing their things in Utah and moving all production to Montana. With further increases perhaps there’s a chance for our snow-capped peaks to become the Misty Mountains, or the open skies of eastern Montana to be the open fields of Rohan, or the Lewis and Clark Caverns as the mines of Moria…

 This session, there are a number of proposals to revise the MEDIA Act. Senator Greg Hertz is sponsoring a bill to raise the cap to $30 million. Representative Brad Barker has a bill that would raise the cap to $75 million. Representative Kerri Seekins-Crowe is bringing a bill to eliminate the cap on credits. And, if that weren’t enough to discuss, Representative Bill Mercer has a bill draft to eliminate the MEDIA Act entirely. As far as the MEDIA Act tax credit debate goes, hopefully the elimination of the MEDIA Act is more red herring and less Chekhov’s gun. 

The television series Yellowstone and its spin offs get a lot of attention but the fact is, there’s A LOT of film production in Montana. A 2020 – 2022 study commissioned by the state indicates significant production and numerous benefits around the Big Sky. The two-year study identified 195 film productions, generating $153.9 million in local economic impact and $16.6 million in total tax revenue. 

According to the study, Yellowstone County fared pretty well with $4.8 million in total production spending between 2020 and 2022. That spending created additional benefits in the form of indirect and induced economic impacts totaling $4.3 million. Those indirect and induced jobs include professional services, accommodations, recreation, food, and others.

While it’s highly unlikely any amount of tax benefit would move Middle Earth filming to the Big Sky, there is substantial potential to grow an industry interested in bringing the majesty of Montana to the big screen. The Billings Chamber encourages the legislature to increase the MEDIA Act tax credit and allow Montana to realize its film industry potential and generate more meaningful economic benefits.

Senate Bill 323 — Allow for duplex, triplex, and fourplex housing in zoning

Sen. Jeremy Trebas (R) SD 13

This bill would eliminate exclusionary zoning by allowing additional homes to be built on a lot. Many local zoning codes mandate exclusionary zoning throughout a majority of residential areas—including Billings—making housing less available and more expensive. Beyond negative impacts on the housing market, it segregates citizens. An article in the Journal of the American Planning Association points out, “[Exclusionary zoning] was born from, and codifies, base and tribal instincts: a desire to set privileged in-groups apart and keep feared or despised out-groups at bay.” The Governor’s Housing Task Force identified this recommendation (3B) in its final report.  Billings Chamber supports.

House Bill 827 — Appropriation for water works at Billings treatment plant

Rep. Larry Brewster (R) HD 44

This bill provides an appropriation of $17 million for a grant to construct year-round recreation and conservation amenities at the west end water reservoir. The bill is co-sponsored by 12 local legislators of both parties and Representative Mike Hopkins (R) from Missoula. The facility is certain to benefit Montanans beyond Billings considering the regional appeal for recreational opportunities and easy access for travelers, being just a short drive from interstate 90.  Billings Chamber supports.

Patrol agents in Minnesota and North Dakota continue to apprehend foreign nationals brought in by human smugglers in the dead of winter and illegally crossing the northern border from Canada, reports The Center Square.  

Instead of flying from Mexico and other countries to Canada to enter legally through ports of entry, border agents say foreign nationals are flying to Canada to enter the U.S. illegally between ports of entry while intentionally seeking to evade capture by law enforcement. But they do so at their own peril as temperatures reach double digits below zero and heavy snow is prohibitive for travel on foot and by car. 

Minnesota and North Dakota are located in the U.S. Customs and Border Protection Grand Forks Sector, which has 7 Border Patrol stations responsible for covering 8 midwestern states and 861 miles of shared international border with Canada. In 2022, Border Patrol agents in the Grand Forks Sector apprehended 171 illegal foreign nationals and reported 10 who turned back to Canada. Grand Forks Sector agents also reported 293 gotaways.

By Dr. Timothy G. Nash

The U.S. economy is not as good as President Joe Biden has stated over the last year — nor is it as bad as many Republicans would argue it to be.

The U.S. unemployment rate is at a multi-decade low while job growth continues at a strong post-pandemic pace.

[Following COVID….]

When the Employment Situation Report for December 2020 was released, total employment in the United States had rebounded to just over 149 million Americans employed. In December 2022, the U.S. economy finally realized overall employment – on a monthly basis — greater than that of December 2019. The Employment Situation Report showed total Americans employed in December 2022 was just over 159.2 million Americans. In our opinion, job recovery ended in December 2022, with total Americans employed surpassing pre-COVID-19 levels. This momentum continued into January 2023, with the Employment Situation Report showing 160.14 million Americans employed, or roughly 1.34 million net Americans employed since December 2019.

In our opinion, it is a bit of an exaggeration for President Biden to claim that he has created 12 million new jobs when many of the jobs were jobs recovered rather than new jobs created.

Another barometer of the U.S. economy that gives us cause for concern is the lack of recovery in new automobile, light truck, and SUV sales. In 2019, 16.85 million automobiles, light trucks, and SUVs were sold in the United States, according to Statista. Edmunds has forecasted 14.8 million automobiles, light trucks, and SUVs will be sold in the United States in 2023 (Cox Automotive estimates the number could be as high as 15.5 million vehicles).

In the best-case scenario, we are selling 1.5 million fewer automobiles, light trucks, and SUVs in the U.S. in 2023 relative to 2019. This clearly means we are still having supply chain issues and/or a declining demand in this vital segment of the U.S. economy. New car prices were up 6.3% in January, which leads us to believe demand, at least in the short run, is still strong and the major issue is supply chain-related adversely impacting the production of vehicles.

Key U.S. data from the federal government shows the annualized U.S. inflation rate for January 2023 was 6.4%, as measured by the Consumer Price Index (CPI), down from 6.5% in December and substantially lower than its 2022 high of 9.1% but much higher than the Federal Reserve long run target of 2%. Adding to our concern, the Producer Price Index (PPI) came in well above expectations for January. The January rates were not received well by many on Wall Street as they were hoping for a more substantial decline in inflation.

Many worry that the Federal Reserve’s Open Market Committee will increase the Federal Funds Rate by a half percent in March, driving interest rates on everything from motor vehicle loans to home mortgages upward, putting new and existing home sales into an even deeper recession, while further slowing sales of new automobiles, light trucks, and SUVs.

Current Issues

In a recent Wall Street Journal editorial, “Biden’s federal budget blowout,” it was noted “If you are a socialist and want the government to control more of the means of production in the U.S. economy, Joe Biden is your man.” Based on CBO data, we believe the Wall Street Journal is correct. The solution for the economy, according to the Biden administration, is that more government spending and higher taxation of individuals and corporations will lead to an average growth in U.S. GDP of only 1.8% between now and 2033, based on CBO projections.

We believe it is time to cut government spending, reduce unnecessary regulations and cut taxes on individuals and businesses, to unleash the American competitive free enterprise system and the entrepreneurs who are the backbone of economic growth and change.

We believe economic policies that create entrepreneurs and new businesses will restore U.S. economic growth to its pre-Great Recession, post-World War II growth rate of 3.3%.

About the author:

Dr. Timothy G. Nash is Vice President, Emeritus; Director of The McNair Center for the Advancement of Free Enterprise and Entrepreneurship; and the McNair Endowed Chair in Free Market Economics at Northwood University.