What is Montana’s biggest industry?
If you ask someone, “What is Montana’s biggest industry?”, they might say wheat or beef. They would be correct, but only from one perspective: agriculture has been a prominent sector and lifeblood of Montana’s economy since the early 1800s and still comprises a major portion of Montana’s annual GDP.
In truth, Montana’s main industries fluctuate over time, depending on economic circumstances. When mining shrunk after the 2008 recession, manufacturing expanded. Like a diversified investment portfolio, these fluctuations balance out the state’s economic development over time.
Determining which is Montana’s biggest industry also depends on whether we are speaking in terms of GDP, employment, personal income, job creation, or other factors. Read on to discover Montana’s current biggest industries according to these key measurements.
Table of contents:
- Montana’s #1 industry in terms of GDP
- Montana’s #1 industry in terms of personal income
- Montana’s #1 industry in terms of employment and wages
- Montana’s #1 industry in terms of job creation
- Fastest-growing industries in Montana
Montana’s #1 industry in terms of GDP
Real Estate/Rental/Leasing
In terms of GDP, the Real Estate/Rental/Leasing sector is easily Montana’s largest industry, comprising roughly 13% of statewide GDP in 2022⁴.
Behind Real Estate, Healthcare/Social Assistance and Manufacturing are Montana’s 2nd and 3rd largest industries by GDP respectively, together comprising 18% of the state GDP⁴.
All three industries together comprise roughly 31% of Montana’s GDP.
Montana’s #1 industry in terms of personal income
Government
The biggest industry in Montana in terms of personal income is the Government sector, generating 19.3% of personal income across the state, most of which comes from state and local governments. Healthcare comes in a close second, comprising 15.1% of personal income statewide.
Personal income is especially important to any state’s economy as it represents the portion of the GDP that goes back to residents in the form of payroll or investment earnings. Residents can put this income back into the economy, driving further development.
Why doesn’t the real estate or financial sector rank high for this factor?
Personal income makes up different portions of each industry. For example, much of the personal income in the Financial Activity sector is seen by out-of-state companies that provide Montanans with things like bank accounts, loans, and credit cards.
Healthcare, on the other hand, employs a large number of people and offers exceptionally high wages compared to many other industries, hence this sector’s large impact on personal income statewide.
Montana’s #1 industry in terms of employment and wages
Mining
The biggest industry in Montana in terms of employment and wages is Mining, with a $91,000 average annual salary. This is $31,000 more than the average salary in the runner-up sector, Financial Activities.
This unit of measurement considers payroll wages, which is the source of income for many Montanans.
This, like personal income, is a critical factor for Montana’s economy, as it represents the constituents’ ability to make both large and small purchases, from dining out to purchasing cars and higher education.
Montana’s #1 industry in terms of job creation
Leisure
The biggest industry in Montana in terms of job creation is the Leisure Activity sector, which has created over 7,000 jobs statewide since 2008.
Part of the reason the leisure activities sector, such as dining out, movies, and entertainment, has expanded in recent years is due to steady overall economic growth in Montana.
Montana is also a top destination for travelers worldwide, which has sparked additional growth in this industry across the state.
Fastest-growing industries in Montana
According to recent data from the Bureau of Economic Analysis, Finance and Real Estate are the fastest-growing industries in Montana.
Finance
The Finance sector in Montana includes banks, insurance companies, real estate, and other businesses, which often deal in high-value transactions for things like buildings or insurance policies².
In addition to being the top industry in Montana in terms of GDP for the past 10 years², this sector is also one of the fastest-growing in the state.
Real Estate
The Real Estate sector in Montana has seen significant growth in recent years due to rising demand, low supply, and regularly increasing housing prices.
From 2021 to 2023, median home values rose as much as 67% even in small communities across Montana, such as Granite County. The smallest increases, which have been seen in Montana’s eastern regions, amounted to roughly 32%³.
Other top industries in Montana
Montana’s other top industries, in order of prominence, include:
- Agriculture
- Forestry
- Energy production
Whenever people think about Montana’s main industries, they usually think about Agriculture, Forestry, Energy Production, and other primary sectors like these.
Discover the overall top 7 industries in Montana, including Agriculture and Forestry, in our other article, Montana’s top 7 industries – real estate, wheat, and…
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