Why Missoula and Billings Lag Behind Major Cities like Denver and Calgary

Missoula and Billings, two cities located in Montana, have often been compared to the thriving urban centers of Denver and Calgary. While Denver has grown substantially, becoming a major metropolis with a robust economy and diverse industries, Missoula and Billings have lagged behind in their development. Several factors contribute to their slower growth, including geographical advantages, economic foundations, and competition from neighboring areas.

Geographical Factors and Economic Foundations

Denver, located in a strategically advantageous region, has several key factors that contribute to its rapid growth and economic success. Denver is situated where goods must pass through, making it a crucial hub for distribution centers. Surrounded by major interstates, a major airport, and thriving railroads and highways, Denver is well-positioned to support a diverse economy. In contrast, Missoula and Billings, despite being important trading posts, lack these strategic geographical advantages. Historical infrastructure focused on natural resource extraction and processing, while vital, has not fostered similar growth and diversification.

Economic Structures and Major Employers

The economies of Denver and Calgary are built on a strong foundation of major employers and corporate headquarters. Cities like Denver have seen the growth and expansion of global companies, such as Morrison-Knudsen, Ore-Ida, J.R. Simplot, and Boise Cascade. These large-scale enterprises have generated thousands of jobs and driven significant economic activity, boosting amenities like theaters, universities, parks, and hospitals. Missoula and Billings, on the other hand, have not seen a similar influx of large national companies. While they have supported small businesses and resource industries, they lack the scale and diversity of major corporate presence that contribute to the growth of larger cities.

Environmental and Economic Challenges

Environmental policies have played a significant role in shaping the economic landscape of these regions. Missoula has faced challenges from environmental activism, particularly the "war on spotted owl habitat," which has shut down over 1,000 wood products-based companies. Similarly, Billings has been affected by recent political decisions, such as Obama's War on Coal, which has cost thousands of coal mining jobs and redirected development to adjacent regions like Bismarck and Casper. These environmental policies, while well-intentioned, have disrupted traditional industries and slowed economic growth.

Local Economic Factors and Workforce Development

Another factor contributing to the slower growth of Missoula and Billings is the local economy’s reliance on specific industries that are susceptible to environmental and economic changes. Missoula, a city that has traditionally been a trading post and retail center, has a limited range of job opportunities. The university, while a significant draw, does not provide the necessary training and opportunities for local job specialization. Additionally, the local workforce and customer base are skewed towards the non-profit sector and away from more productive industries. This limited economic diversification makes these cities less resilient to economic shocks and slower to recover.

Comparison with Denver and Calgary

Denver and Calgary, both known for their robust economies, have a different economic structure. They have benefited from a mix of natural resources, tourism, and services, alongside a strong presence of major corporations. Denver has grown significantly with oil mining, railroads, and professional services, while Calgary has been a major oil center since the 1920s. Both cities have seen substantial investment in key sectors, providing a diverse and stable economic base. In contrast, Missoula and Billings have struggled to diversify their economies effectively, leading to slower growth and less resilience to external factors.

Conclusion

The comparison between Missoula, Billings, and cities like Denver and Calgary highlights the importance of strategic geographical location, diverse economic structures, and robust corporate presence in fostering urban development. While Missoula and Billings continue to develop and grow, understanding and addressing these challenges can help them better position themselves for future success.

Keywords: Missoula economy, Billings city development, Denver economic growth, Calgary industry success