Missoula Business Fall 2021

n Inside:

Scheels Sports Store Opens

Local Clothing brand

Cryotherapy Alternative Wellness

Fall 2021 • Issue 4 Vol. 4

Clyde Coffee opens new location BUY | SELL | LEASE | INVEST

Maximize Your Time and Money with Montana Commercial Real Estate Experts Sterling CRE Advisors | Responsive. Results. | sterlingcreadvisors.com

Delivering a bright future.

When you can make a real impact on the place you call home, that’s incredibly fulfilling. At NorthWestern Energy, that’s how we feel every day. We get to deliver safe, reliable, affordable power to our families, friends and neighbors. But we also get to protect our environment, foster innovative energy solutions, support local charities, and give back to those who have helped deliver this community a bright future.

2 MISSOULA business ∙ FALL 2021

SPREADING THE HEALTH Ingredients for healthy Montanans: Drive Care Van® more than 28,500 miles in one year.

Help provide immunizations at low or no cost to everyone who needs them.

Keep doing that.

Paving the way for higher quality, less costly health care.

Check out our Social Responsibility Report at https://www.bcbsmt.com/company-info/making-an-impact.

A Division of Health Care Service Corporation, a Mutual Legal Reserve Company, an Independent Licensee of the Blue Cross and Blue Shield Association

355367.0818 REV

MISSOULA business ∙ FALL 2021

3

Missoula Chamber working to address workforce issues The Missoula Area Chamber of Commerce continues to play a key role in workforce development in Missoula and across the state of Montana. Employers not only in Kim latrielle Missoula and the President and state of Montana, CEO of the but across the nation are experiMissoula Area encing difficulty Chamber of in finding a qualiCommerce. fied workforce to fill open positions in all industry sectors. Lack of workforce is an added stress on businesses, residents, families and visitors to our communities.

The Chamber’s Board of Directors, led by board chair Chad Bauer of Republic Services, has prioritized workforce as a key initiative. We are actively making a difference on many fronts in the workforce arena.

The Missoula chamber, the Montana

Index:

Economic indicators New Clyde Coffee Scheels sports store opens Youer Clothing Chamber Chairman Cryotherapy Financial Management Workforce shortage Lack of Childcare Your 401(K)

4 MISSOULA business ∙ FALL 2021

chamber, and chambers across the state are working directly with the Montana Department of Commerce’s business attraction specialist.

The Missoula chamber and other Montana chambers receive leads from the state on business inquiries looking for infrastructure and possible relocation or startup in our great state. Missoula shares those leads with our membership and strives to connect inquiries to the right contacts in our community. Local chambers share leads with the state, providing those new business inquiries immediate connections to information and state resources. This collaborative partnership has already netted positive results for the state and Missoula. Missoula businesses, if you have connections to businesses wishing to move to Montana, please reach out to the chamber today and let us connect you.

The Missoula chamber is proud to share the following paragraphs from our collaborative partners focused on workforce needs: Montana’s Department of Labor & Industry works extensively with the Missoula Chamber of Commerce on a vari-

6 8 10 12 14 16 18 19 20 22

ety of workforce training and economic development issues. Through Montana Workforce Connections, the department and the Missoula chamber built an interactive portal that connects interested students with unique paid job training opportunities in a variety of in-demand fields. More recently, the chamber is partnering with DLI to leverage federal COVID stimulus funds to help meet Montana’s workforce needs through innovative new job training programs.

“The Department of Labor & Industry’s partnership with the Missoula Chamber of Commerce has been invaluable,” said Laurie Esau, commissioner of the Montana Department of Labor & Industry. “The chamber’s unique understanding of the on-the-ground needs of our employers helps inform our workforce development efforts statewide. I’m grateful for the chamber’s dedication and commitment to improving prosperity for all Montanans.”

The Missoula Chamber is also collaborating with Accelerate MT, the workforce development unit of the University of Montana. Accelerate MT is committed to meeting the workforce needs of Mis-

soula’s employers by developing and delivering short-term, flexible and tailored training programs.

A great example of Accelerate MT’s ability to deliver effective workforce development programs is the Aim Higher initiative developed in response to the needs of ATG Cognizant. The program, launched in early 2019, has seen over 150 career changers complete the 12-week “bootcamp”, with 100% of them receiving and accepting a job offer from ATG Cognizant. These are high-paying jobs with significant potential for continued income and career growth.

Accelerate MT is keen to hear from other employers who need assistance in developing skilled workers for their organization, or in providing skills development for existing employees. In these extremely tight workforce conditions, investing in the skills of your current or future employees through training can be a valuable differentiator in attracting and retaining talent.

Kim Latrielle is president and CEO of the Missoula Area Chamber of Commerce.

On the cover:

Clyde Coffee owner Glenda Bradshaw and head roaster Sanders Smith sit in the business’ new location at 741 South Higgins Avenue.

Photo by Tom Bauer

Publisher Advertising Business editor

Jim Strauss Toni LeBlanc David Erickson

For questions about news or pitches, contact David Erickson, david.erickson@missoulian.com, 406-523-5253.

For advertising information, contact Toni LeBlanc, Toni.leblanc@missoulian.com, 406-523-5242.

NO PART OF THE PUBLICATION MAY BE REPRINTED OR REPRODUCED WITHOUT PERMISSION. ©2021 LEE ENTERPRISES, ALL RIGHTS RESERVED.

Please call the Republic Services at 406.543.3157 for more information.

©2021 Republic Services, Inc.

We’ll handle it from here.

®

MISSOULA business ∙ FALL 2021

5

Economic indicators 2021

$475,900

Median sales price of all 151 homes sold in the Missoula Urban Area in August of 2021.

2020

$369,000

Median sales price of all 181 homes sold in the Missoula Urban Area in August of 2020.

2021

Median sales price of all 73 homes sold in Ravalli County in August of 2021.

2020

$386,750

Median sales price of all 100 homes sold in Ravalli County in August of 2020.

Enjoy retirement on your terms.

I can help you continue your standard of living, remain in control of your finances and maintain your independence.

Will Johnson & Associates

Will Johnson 2813 Connery Way Missoula, Montana 406.728.6811 AgentWillJohnson.com

Securities & services offered through FBL Marketing Services, LLC,+ 5400 University Ave., West Des Moines, IA 50266, 877/860-2904, Member SIPC. Advisory services offered through FBL Wealth Management, LLC.+ Mountain West Farm Bureau Mutual Insurance Company/Laramie, WY. Farm Bureau Life Insurance Company+*/West Des Moines, IA. +Affiliates. *Company provider of Farm Bureau Financial Services. PR-RET-A (4-21)

6 MISSOULA business ∙ FALL 2021

All data comes from the Missoula Organization of Realtors

$525,000

• Home • Auto • Business • Work Comp • Farm/Ranch • Crop

Montana’s Brand of Insurance

321 West Broadway | Missoula

406-258-1426

BETH DISNEY, CIC

Senior Account Manager

KELIN JOHNSON, CIC Licensed Agent

JAMIE SHROEDEL, CIC Account Manager

NOT FDIC INSURED - NOT A DEPOSIT ACCOUNT OR OTHER OBLIGATION - NOT GUARANTEED OR INSURED BY ANY DEPOSITORY INSTITUTION OR AFFILIATE. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY, EXCEPT FOR FEDERAL FLOOD INSURANCE OR FEDERAL CROP INSURANCE. THIS AGENCY IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER. MISSOULA business ∙ FALL 2021

7

Clyde Coffee’s new location offers outdoor seating.

TOM BAUER, MISSOULIAN

New Clyde debuts on South Higgins, gives coffee shop more space ZOË BUCHLI

zoe.buchli@missoulian.com

Since opening its new location on South Higgins Avenue in early September, Clyde Coffee has become a hub for Missoula locals to sip beans roasted just feet away in the new roasting facility.

“It’s been phenomenal, business has been booming,” owner Glenda Bradshaw said. “We’ve been so grateful for the response from the community.”

8 MISSOULA business ∙ FALL 2021

Bradshaw loved Clyde’s original location, which opened in 2015, just a few blocks up the street on the Hip Strip, but felt space-constrained and wanted to find something larger to house the coffee shop.

The new space allows Clyde to host about three times the number of people as the old location did at any given time.

COVID closures also pushed Bradshaw to expand — the old location was not conducive to pandemic-era operations,

she said. They did curbside orders, but it was uncomfortable for staff.

“I thought, ‘I have to close Clyde or I have to move it some place that’s more COVID-friendly,’” she said.

“I thought it would be a good time to diversify the business and not just have a service but also have a product,” she added, pointing to the roasting facility.

Increased visibility in the Missoula community has come with the new location too.

“This space is so visible on the corner, so I feel like we’ve garnered a whole new group of customers,” Bradshaw said.

With a larger location comes the need for more staff. Bradshaw had about seven employees at the old location, and now has just over 20.

Clyde closed right before Thanksgiving in November 2020, signed the lease for the new location in January and started building in earnest in March.

The building was an empty shell when

Clyde Coffee head roaster Sanders Smith stands next to the roasting machine at the business.

Bradshaw took it over, with just walls and a ceiling for engineers and designers to work with.

“It was a wonderful blank canvas that allowed us to overlay the things we wanted both structurally and to design and lay out the retail area,” she said.

The design concept for the new space echoes Bradshaw’s love of minimalism.

Light-colored wood, concrete and white fixtures adorn the new interior.

Customers can expect the same exceptional, hearty coffee. However, beans are roasted on-site now, which has been a great addition to the business, Bradshaw said.

“It was kind of a blank slate, where we can cater to light roast drinkers and dark roast drinkers, and that’s been really exciting,” head roaster Sanders Smith said, adding he was elated to be brought onto the team.

TOM BAUER, MISSOULIAN

Smith also does screen-printing in house for Clyde, meaning he creates the labels and artwork for Clyde’s packaging and merchandise.

Along with a roasting facility, the new building also allowed Bradshaw to install a full kitchen. Now they make their baked goods in-house and recently hired a head pastry chef. While the menu from old Clyde hasn’t expanded too much in the new location, Bradshaw anticipates add-

ing new menu items soon.

Bradshaw describes Clyde as a coffee shop that offers heavy savory fare. Food offerings right now range from avocado toast to hummus toast to a bagel breakfast sandwich.

Down the road, Clyde will also revamp its website, start a coffee subscription business and sell its beans in local grocery stores (they’re available for purchase now at Clyde).

MISSOULA business ∙ FALL 2021

9

Gigantic new Scheels All Sports store opens in Missoula

Scheels All Sports will open at Southgate Mall on October 2. Over 200 employees have been hired to opeerate the enormous facility.

DAVID ERICKSON

david.erickson@missoulian.com

Dan White, the store leader for the new Scheels All Sports in Southgate Mall, was busy all spring and summer hiring more than 200 employees to operate the enormous facility.

10 MISSOULA business ∙ FALL 2021

“We’d like to get to 250,” he said.

The Missoula Scheels held a grand opening on Oct. 2. In late September, White was making sure his staff was ready to handle the crowds.

“For a customer count, we’ve seen opening days where customers start camping out two days prior and there’s 3,000 people

outside the building,” he said.

The 110,000-square-foot store is almost twice the size of two NFL football fields combined and boasts an inventory so massive that it will take hours for a customer to peruse every section.

“Anything you need for sports equipment, we’ve got it,” White said, walking

BEN ALLAN SMITH, MISSOULIAN

past an arcade for kids that features a laser gun range.

There’s a dedicated Trek bicycle retail section, a coffee and treat shop, an indoor archery range, a small bowling alley and 70 individual specialty shops. Some shops specialize in apparel, others in water sports or kids’ gear.

Landon White, son of Scheels store leader Dan White, practices his bowling skills at the in-store bowling alley.

“Each specialty shop does all its own purchasing,” White explained “What works well in Billings may not work well in Missoula, so we can react to what our customers want. That’s the same for fishing, shoes, across the board.”

The store’s offerings will change for the seasons, so an ice-fishing shop will pop up in winter but a waterskiing shop will pop up in summer, White said.

Customers can be assured they’re talking to people who know about the products they’re selling, White said.

“We would never hire an archery per-

son who’s not passionate about archery,” he said. “We bring them to other stores to train, but we also send them to what we call universities. Every Scheels store sends people to one central location for a week. If they’re in archery, they work on archery and work with the best vendors in the business.”

If they are in the waterskiing section, they’ll spend a week on a boat learning everything about the sport.

“We really pride ourselves on handson training.” White said. “It’s all about the hands-on and getting out there and doing it.”

It’s the North Dakota-headquartered, employee-owned retailer’s third Montana location after Billings and Great Falls. The Missoula store doesn’t have an indoor Ferris wheel like Billings, but there is a giant handcarved sasquatch statue.

White said the most important thing is that the company donates time and money to local community organizations and projects.

“10% of our proceeds go right back into the community,” White said. “Not into some national organization, but right here in Missoula. I get approached by nonprofits

BEN ALLAN SMITH, MISSOULIAN

all the time, and the first thing I always ask is ‘can my people come?’ So we help clean up the YWCA and we got out and cleaned up graffiti.”

The store sponsored the Missoula Day of Giving monetarily and also sent 40 workers to help out, he said.

Associates are also paid to volunteer on their own time.

The store is located at 2901 Brooks Street, and will be open from 9:30 a.m. until 9 p.m. during the week, 9 a.m. until 9 p.m. on Saturdays and from 10 a.m. until 6 p.m. on Sundays.

MISSOULA business ∙ FALL 2021

11

Local clothing brand takes new spin on crowdfunding to build local factory SKYLAR RISPENS

skylar.rispens@missoulian.com

The female-founded Missoula-based brand Youer is taking a unique spin on crowdfunding to build an apparel factory by launching a month-long program called Community Supported Apparel.

Modeled after Community Supported Agriculture, customers of the brand Youer, formerly known as Kind Apparel, will be able to purchase limited edition products and pay to make their mark on the new facility.

“The CSA was born out of this need to bring stuff in house and have more control over how, when and where our stuff is made,” said Youer’s founder and chiefeverything-officer Mallory Ottariano.

Youer is an outdoor apparel brand that uses original designs specializing in skorts, pants, leggings, hoodies and other accessories.

All of Youer’s products are designed by Ottariano and manufactured in the United States using sustainable materials, which in her experience can be challenging due to limited, expensive resources that are difficult to find.

Additionally, as a smaller company she often feels her brand is a “lesser priority” at other manufacturing sites across the country.

“As we’ve grown, we have run into a lot of manufacturing challenges and last year was really the experience that spurred the CSA,” Ottariano said.

Like many businesses, Youer took a hard blow during the pandemic due to supply chain issues and mismanagement of materials that left her without product to sell for nearly seven months.

“We realized we need to start taking control of this and doing it in-house because every production run that there is something that goes wrong and I just feel like that’s a bad thing to settle for,” she said.

“If we have our own production, we are always going to be the most important customer,” she continued.

A bulk of the fundraising goal will be

12 MISSOULA business ∙ FALL 2021

A model wearing the Youer clothing brand, based in Missoula.

sourced by pre-selling a limited edition Treasure Dress — Youer’s best-selling hooded fleece dress with a kangaroo pocket and vibrantly designed spandex side paneling and cuffs.

Ottariano aims to raise anywhere between $60,000 to $100,000 through the crowdfunding event, which is slated to run until Oct. 28.

Other specialty products like spandex leggings will be released through the effort.

Customers will also have the opportunity to make their mark on the factory by purchasing a seed packet that will have their face printed on it to be displayed in a “wall of faces” showcasing the people who supported the factory.

“I want the energy of the community to be very alive within the building and I think all of these things really play into that, like just being able to walk into this building and be able to see a wall of hundreds of individuals who made this all possible,” Ottariano said.

There are no apparel manufacturing factories in the state at this time, according to Ottariano. By building a factory in Missoula she aims to create a more transparent supply chain while also honoring the spirit of the town.

“It’s very much so a reflection of the lifestyle that we live in the city and there’s just something very magical about building a brand in Missoula and the people that support it seems like totally the right

PHOTO PROVIDED

place to grow into the next phase,” Ottariano said.

Ottariano’s unique approach to fundraising to build a factory locally is a direct reflection of support she receives from her customers.

“I feel like we have some of the most dedicated, devoted, supportive customers and the brand survived last year because of them. Because people became part of a conversation and reached out to support in any way they could,” she said.

“This idea of building production together instead of a brand doing something on its own is really interesting to me and really powerful and I think I just want to harness the power of community and build something together.”

We need a plan to protect our intellectual capital and our private customer data that now lives in the cyber world.

66%

21 DAYS Average downtime due to a cyber incident.1

66%

of companies with less than 1,000 employees have experienced a cyber attack in the last 12 months.2

69%

experienced an attack that got past their intrusion detection system.2

1 Coveware Ransomware Blog Report, 2 4th Quarter, Ponemon 2020. Data Breach Study.

YOUR BUSINESS CYBER RISKS: • • • •

Use of computers or mobile devices in your operations Accepting of credit card or digital payments Saving of confidential customer info Storing medical or financial data

Call a small business specialist today to prepare for cyber threats,

(406) 532-5911.

PayneWest.com/Cyber

2925 Palmer St, Missoula, MT

MISSOULA business ∙ FALL 2021

13

Chad Bauer again takes Chamber of Commerce board reins JORDAN HANSEN

jordan.hansen@missoulian.com

Chad Bauer, a municipal manager at Republic Services has again taken the reins as the Missoula Chamber of Commerce’s chairman.

Bauer became involved with the board of directors a few years ago and is happy to have the opportunity to contribute to the organization’s goal of uplifting local businesses, he said.

“For me, it’s all helping the business community in Missoula succeed and be able to move forward and have a good opportunity to succeed,” Bauer said.

In his role at Republic Services, he does a lot of work with federal, state and local government resources, he said. This has helped him build many relationships as businesses work to push through the COVID pandemic.

Montana has the ninth-lowest unemployment among U.S. states, with its rate at 3.5%. Many businesses in Missoula are still understaffed, a problem many in the

14 MISSOULA business ∙ FALL 2021

community are working to solve. businesses about that, he said.

“We’ve partnered with the University Housing is another major issue the of Montana (and) Missoula College try- chamber of commerce is deeply involved ing to figure out a game plan moving for- in. Bauer is happy with the strides the ward for training and getting city and county have made people to actually get out as they work towards a better and apply for these jobs so permitting system, he said. we can get these businesses Missoula County basically stay open and be able to sucthrew out its building code and ceed,” Bauer said. “That’s built a new one from scratch, the biggest challenge, with while the city is undergoing a a second part of that being very similar process. childcare, which is a huge “We’re at the table for all of initiative for us, trying to that and we continue to be,” make sure that folks that are Bauer said. “We’re not pushChad Bauer working have a reliable place ing any policy or legislation Chamber of to stay for kids.” or ordinance or anything like Commerce Many job specialties are in that.”

Chairman high demand, such as serAnother major issue for vice workers, truck drivers, building has been the increasand train, heating and ventiing price of materials, such as lation employees, Bauer said. lumber and steel during the pandemic.

There is some hope that college stu- Transportation and shipping costs have dents coming back to town could enter increased as well. the local workforce, but Bauer has not “Trying to build affordable housing is had the chance to follow up with local a very large challenge for those folks and

that’s where they need to partner with cities and counties and try to get some tax increment financing or some sort of break to make it a little more affordable for these folks that are building,” Bauer said.

Bauer said his biggest goal for his term, which is for one year, is to continue to partner with the city, county, University of Montana and Missoula County Public Schools.

He would like to see more childcare options and said the chamber is working with local nonprofits on that issue.

“For us, it’s just to make sure we have viable business community that we partner with on a daily basis to make sure the whole Missoula community moves forward,” Bauer said.

The chamber’s annual banquet is approaching on Oct. 5 and tickets are on sale.

“We’d love to see anybody that wants to come out for that,” Bauer said.

MISSOULA business ∙ FALL 2021

15

New cryotherapy venture in Missoula offers alternative wellness systems DAVID ERICKSON

david.erickson@missoulian.com

Inside a rumbling high-tech chamber at the new Cryo Method health and wellness facility in downtown Missoula, the temperature rapidly drops to between -150 and -220 degrees Fahrenheit while music plays on an overhead speaker.

Inside, participants wear a robe, a headband, socks, gloves and a mask to protect their extremities, but the goal is to have the body initiate a “fight or flight” in response to the sudden cold.

Adrenaline is released, causing blood to rush from the periphery of the body to the core in order to warm the vital organs.

After stepping out of the machine, the blood quickly returns to the rest of the body.

Like immersing oneself in a cold lake or an ice bath, cryotherapy is meant to improve circulation and combat pain and inflammation in the body.

“Your body is kind of sensing that there’s some danger in it, even though there really isn’t,” explained co-owner Dustin Williams.

He and his wife, Krissy, spent months remodeling the space at 111 W. Broadway and held their grand opening in midSeptember.

“Missoula is a market that is ready for something like this and can actually sustain it,” Williams said. “Utilizing our state-of-the-art recovery modalities, we are committed to bringing the community an affordable alternative to traditional pain management and recovery.”

Along with the cryotherapy chamber, they offer compression therapy, an infrared sauna, a red light therapy room and pulse massage guns.

“So it’s all kinds of sports recovery and pain management,” Williams said. “It’s just kind of a way to enhance your overall wellness.”

The TheraLight red light therapy bed looks like a tanning bed.

“Instead of any UV rays, it’s all red light and near-infrared light,” Williams said.

“So it’s just kind of utilizing LEDs. It’s utilizing that light spectrum to enhance your cellular production.”

Krissy Williams said people can get

16 MISSOULA business ∙ FALL 2021

TOM BAUER, MISSOULIAN

Krissy and Dustin Williams stand next to the Cryobrain chamber at their new health and wellness center in Missoula. many of the benefits of sunlight, but without exposure to harmful UV rays.

“So you don’t get tan but you don’t get any of the cancer risks or anything like that,” she said. “It can treat seasonal affective disorder and anxiety in the winter but it also goes to, like, performance recovery and all that. A lot of people come for the mood benefits.”

The infrared sauna uses infrared light to penetrate body tissues in order to promote cellular repair and reduce inflammation.

Because it doesn’t generate as much heat as a traditional sauna, people can stay in longer, Williams said. Users will

still fell their body warming.

The increased temperature signals the body to initiate bodily defenses, Williams explained. That means the heart starts pumping faster and participants will feel like they’re getting a moderate exercise.

In the compression therapy room, participants use devices that can engulf an entire limb and then tighten with air pressure.

“It’s really just a way to help increase your circulation and decrease your lactic acid buildup post-effort,” Dustin Williams said. “It’s great for endurance athletes or a post-gym session. But also with compression therapy, this can help peo-

ple who are dealing with blood-clotting from standing or sitting all day.”

As with any health or wellness program, users should consult their doctor or licensed health professional for advice.

“We’re committed to changing the perception of health and wellness,” Dustin Williams said. “Making your health and recovery an active priority is one of the most important decisions you’ll make each day. Cryo Method was created with the intention to help people enjoy more of what they love to do.”

Cryo Method is open from 10 a.m. until 6 p.m. Monday through Friday and from 10 a.m. until 4 p.m. on Saturdays.

Technology echnology has changed your business for forever.

Do you have e the right IT p partner?

You should expect more from your IT network than simply uninterrupted service.

At Morrison-Maierle Systems, we build powerful strategies to maximize your competitive strengths, enhance productivity and increase your bottom line – all with proven ROI.

Let’s get started.

Schedule your FREE network security risk assessment today!

406.542.4855 l 866.401.4846 l info@getsystems.net INNOVATIVE • • • • •

IT SOLUTIONS BUILT BY EXPERTS

Technology Strategy and Operations Cybersecurity Risk Management 24/7/365 Threat Monitoring and Support Remote User Security Architecture OMNI Managed IT Services

A Morrison-Maierle Company

1055 Mount Ave. Missoula, MT

Missoula l Helena l Billings l Bozeman

MISSOULA business ∙ FALL 2021

17

A more intentional approach to financial management In today’s world, there is a near-con-

The financial strategy you put in place

stant chorus of clutter competing for our

should include a personal emergency

attention. Every day we are bombarded

fund, an investment strategy for your

with an overload of negative news, tidal

long-term goals, and insurance to protect

waves of information, and pings from

all that you are building.

electronic devices.

Zoom out from the negativity

Despite all these distractions, it’s important to guard ourselves from spend-

The everyday news cycle can be over-

ing precious energy on external events

whelming and seem hopeless at times,

beyond our control. Rather, stay focused

but I would argue that there are many

on what matters most to you. From there,

reasons to be optimistic. Look at the

you can develop a financial strategy that

progress. According to worldvision.org,

supports those goals.

an estimated 1.2 billion people are coming

Finding what you value is important

out of poverty and moving into the mid-

not just for your mental health, but for

dle class. An estimated 4 billion people

your financial health as well. Stress and

who are yet to be online will most likely

fear do not typically lead to smart finan-

soon have access to high-speed internet

cial decision-making. Rather, they can

and all it has to offer. Futurist and author

cause reactive and costly errors in pro-

Ray Kurzweil calls it the “Law of Ac-

tecting and building your wealth. Think

celerating Returns” — he posits that we

about March and April of 2020 and how

kimberly shappee

will experience the equivalent of 20,000

frightening the stock market felt at that

Financial Advisor at RBC Wealth Management

years of technological change over the

time. Were you ready to invest?

next 100 years. If any of this is true, there

A study by psychologists Grable and

you doing? The financial advisor in me

greater global news, we were able to help

are many reasons to believe economies

Britt of Kansas State University showed

would suggest taking it a step further and

with her peace of mind by stress-testing

will continue to advance and humanity

that a person’s stress level increases sub-

looking at how much that great day, and

her wealth plan and strategy and coming

will continue to solve big problems.

stantially while viewing financial news,

those supporting items cost. Write this

up with recommendations to help with

regardless of what the news is about.

number down.

her fears.

When the markets are down, people wor-

I recently had a client tell me that her

ry about their losses. Conversely, when

great day was waking up without an

the markets are up, they’re upset that they’re not making more profit.

The antidote to the chorus of clutter and the fear it creates is threefold.

These three tactics can help you resist the temptation of reacting out of fear and being distracted by “keeping up with the Joneses,” and instead anchor your life

alarm, reading the paper at her leisure,

Write out your personal financial strategy

doing yoga at a local gym, grabbing a

Not a reactive strategy, rather a proac-

a strategy, and in achieving your goals.

fancy latte at the cute local coffee shop

tive plan that is focused on your goals,

You will no longer feel like you are being

afterward, meeting a friend for a walk or

financial needs and day-to-day life. Ac-

tossed about in a sea of wants and head-

and financial decisions in the present, in

lunch, and then spending time with her

cording to the Certified Financial Plan-

lines and fear, and instead become the

Define your great life

kids and grandchildren. She went on to

ner Board of Standard and the Consumer

master of your financial fate. And what I

Not your neighbor’s great life, not

say that it was important to her to cook

Federation of America, nearly two-thirds

hear repeatedly from clients and friends

someone you read about in the Wall

dinner with the women of her congrega-

of U.S. investors lack a basic financial

is that this change in mindset — and how

Street Journal’s great life but your best

tion each week and to travel monthly on

strategy — which may be why people are

you feel about your money — is priceless.

life. To do this, I suggest you start with

a long weekend trip. When we looked at

frequently tempted into investments that

a great day. When are you at your most

her great day, and the fear that she was

don’t align with their values, goals or ap-

content? Who is around you and what are

feeling around the economy and the

petite for risk.

18 MISSOULA business ∙ FALL 2021

Kimberly Shappee is a financial advisor at RBC Wealth Management.

Study looks at causes behind Missoula’s workforce shortage Grant Kier and Nicole Rus

Missoula Economic Partnership

Have you noticed a sudden wave of irregular hours, surprise closures, and limited offerings from your favorite local businesses, particularly in the retail and service sectors?

Restaurants, retail shops, and even essential services like grocery stores and pharmacies have been heavily impacted by labor shortages to the extent that they’ve had no choice but to implement measures like reducing hours and limiting services due to lack of staffing.

In light of the tightening labor market and other labor-related challenges faced by local employers, Missoula Economic Partnership commissioned a State of Missoula’s Workforce study, conducted

by Bryce Ward, ABMJ Consulting in support of the work of the Missoula County COVID Economic Relief and Recovery Task Force. The report summarizes recent trends and current conditions and identifies key areas of opportunity for Missoula to strengthen its labor force.

The report’s findings identified housing, childcare, and educational/training opportunities as central factors impacting our community’s capacity.

Under ideal economic conditions, the number and type of jobs available in our region are balanced with the people here who want the jobs and can do them well.

This ideal state of balance can be thought of as achieving our full capacity. Our capacity as a community is a function of three elements —productivity, participation, and working population.

Productivity reflects the individual worker’s skills, abilities, and experience and how those individual characteristics interact with other resources in the firm (e.g., equipment and other workers) and in the community (e.g., infrastructure).

The productive capacity of the workforce rises with the education, skills, experience, and wisdom of the population. UM and Missoula College provide Missoula with an advantage over many other places by expanding our productive capacity. However, Missoula’s education and training capacity must be used effi-

NAM Y. HUH, AP

ciently and be well-adapted to expected workforce needs.

In general, productivity rises when capacity is utilized more efficiently. When demand for workers grows, each worker is more likely to find an employer that uses all of their skills and abilities. Productivity can be increased by ensuring that the people who are available to work know about the full range of job opportunities in the region.

Participation is the share of the population that are willing and able to work.

Pre-COVID-19, about 70% of Missoulians 16+ (and 85% of those 20-64) participated in the labor force. This placed Missoula in the top 5% of all counties in the US Assuming Missoula returns to this level post-COVID-19, this means Missoula has limited room to increase capacity by drawing people into the labor force.

However, hours per worker are relatively low, so Missoula may have a small amount of under-used capacity available.

Workers and employers reported available, affordable, high-quality childcare as a significant challenge to workforce participation. At present 84% of Missoula children under 6, and 88% of Missoula children 6-17, live in a household where all parents work. Other reported participation challenges including wages, seasonal work, health, mental health, addic-

tion, and transportation.

The working population available in Missoula is estimated to be 100,000 people and includes the existing workingage population, the population within commuting distance willing to commute to Missoula, and those willing to move to Missoula. Relative to 2010, Missoula has fewer children under 10, fewer college age people, and fewer 45-60-year-olds.

This creates several challenges, including fewer college students in the local workforce pipeline, an ongoing wave of potential retirement, and fewer 45-60-year-olds to fill roles requiring more experience. To the extent that workers move away (or don’t relocate to Missoula), limited job opportunities (particularly for spouses) or high housing prices relative to wages are often cited as reasons.

To boost capacity through population, Missoula must keep its current population and attract students or workers from elsewhere. Between July 1, 2010, and July 1, 2020, Missoula’s population increased by over 12,000. Roughly 75% of this increase stemmed from more people moving to Missoula than moving away (the remaining 25% reflects more births than deaths). However, in recent years the rate of natural increase has fallen.

Rapidly rising home prices impact

working population by increasing the challenges of attracting workers from elsewhere and retaining employees whose housing is not secure. By far, housing affordability and availability was identified as the most pressing issue in a current assessment of Missoula’s labor market. Many Missoula employers report hiring people who cannot find housing.

Others report existing employees losing their current housing and struggling to find alternatives (and many choosing to move elsewhere).

There are several ways to address affordability for housing in the current climate, including increasing the supply of housing, especially in forms that target median wage workers; accelerating the rate at which housing development can respond to the market; reducing the cost of housing development, assisting homebuyers with down payments, and generally increasing wages, particularly in low-to-moderate income brackets.

Housing affordability also depends on rents. Historically, rent in Missoula has been cheap relative to other comparable places. While home prices in Missoula are well above the U.S. level and typically rank toward to the top of all metro/micro areas (usually ranking between 50th and 70th or top 10%), in 2019, median rents were below the U.S. median and rank roughly 300th. Like home values, rents have surged since COVID. According to Sterling CRE’s Missoula Multifamily Investor and Data Reports, rents have risen nearly 20 percent since the beginning of 2020.

Missoula is a desirable place to live, work, and grow, and the attributes that make Missoula desirable also present challenges for local employers and working Missoulians. Addressing challenges our community currently faces in regards to accessible childcare and access to adequate, affordable homes for a variety of income levels will help to alleviate the pressure our local businesses are facing as a result of our current workforce shortage.

Grant Kier and Nicole Rush work for the Missoula Economic Partnership.

MISSOULA business ∙ FALL 2021

19

laCk of ChildCare leads to workforCe shortage in Montana

rOBert SONOra

Associate Director at the Bureau of Business and Econmic Research at the University of Montana.

Like the rest of the country, the pandemic hit Montana hard. The unemployment rate increased 7% in one month and initial unemployment insurance claims skyrocketed 26,000% in two weeks as non-essential businesses were closed down.

Economic activity came to a near standstill. Real gross state product fell almost 9% in the second quarter of 2020, about the same as the country as a whole. The U.S. fell into a recession, the deepest since the Great Depression in 1929.

The global flow of goods and services declined, leading to production shortages. The Dow Jones Industrial average fell over 50% in six weeks. The last barrel of oil traded at $37 on April 20, 2020.

Two months later, the U.S. and

state economies were already showing a sharp return to some form of normalcy. Swift stimulus policy by the Federal Reserve, which reduced target interest rates to zero, and the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March of 2020 blunted the effects of the self-imposed shutdown.

By June of 2020, the unemployment rate in Montana had already fallen by 4.5% and the number of initial unemployment claims had almost returned to pre-pandemic levels. A remarkable turnaround.

Now as we look back one year later, the news continues to be positive. Most economic projections made during 2020 have lost their currency. Forecasts for Montana’s economy have improved since

Realty Can Hit Hard.

Good Realtors Protect You. ®

Julie Gardner REALTOR®

mid-2020. Forecasted employment levels in 2022 are higher by 15,000 jobs using updated data compared to forecasts made a year ago. Similarly real state output in 2022 is forecasted to be $2 billion higher today than last year’s estimates, or about 4% higher.

But the recovery has not been uniform. As with the rest of the country, in terms of employment, the hospitality, education, and mining and logging sectors continue to lag. These sectors have yet to return to pre-pandemic levels of employment. Some of this can be explained by longer run structural changes in these sectors — for example, education delivery is undergoing some technological innovation in the post-pandemic world and state logging and wood

Wholesale Business supplier • Facility Supplies • Packaging Supplies • Safety Supplies • Foodservice Supplies • Equipment • Printing Papers

Local Contact Info: Tyson Peissig ptyson@wcpsolutions.com (406) 890-3545

Peter Lambros

Commercial (406) 532-9291 peter@ERALambros.com

Ask us about our BEST IN CLASS VALUE Supplyways line of Facility Supplies

Julie Gardner

Commercial & Residential (406) 532-9233 jgardner@ERALambros.com

www.JulieGardnerProperties.com

20 MISSOULA bUSIneSS ∙ FALL 2021

manufacturing is facing challenges associated with market dynamics and production innovation.

Over the shorter term, the leisure and hospitality sectors suffered from a lack of demand. The food service sector has fully recovered to early 2020 levels, but the accommodation sector is stubbornly stuck below pre-Covid employment.

Bright spots include manufacturing which has not only returned to pre-pandemic employment levels but has also returned to the prepandemic trend. Construction has been similarly unaffected. Professional services and health sectors are also back to “normal.”

But there are still a number of headwinds to a universal recovery. First, though Montana’s un-

(877) 398-3030 • www.wcpsolutions.com

Founded in Washington and family owned since 1930

employment rate is less than in February 2020, some of this can be explained by a smaller labor force. The headline unemployment rate only accounts for people actively seeking employment as a percent of people in the labor force, and the labor force is smaller than it was in early 2020.

The unemployment rate which includes all types of unemployment remains about 8%.

Labor markets are likely to remain soft for a couple of reasons. First, is, let’s call it, the “Johnny Paycheck” effect. Over the course of the pandemic workers had a chance to re-find life without work, to spend more time with their families and leisure. Usually this kind of event happens within a specific sector which is undergoing a unique set of conditions. The more universal nature of the pandemic meant that more sectors were impacted simultaneously.

Compared to most developed countries, Americans work more hours per year, about 1,750. Germans, on the other hand, work about 1,300 hours per year. True, Germans have less annual income, but not that much less. Americans work 33% more hours per year and earn 25% more. What we may be seeing is a shift away from work towards other activities people like to do.

Secondly, some have been unable to return to work because of other obligations, in particular child and parental care. The results of the impacts of two childcare surveys in Montana were published in 2020, one surveyed parents and the other employers. Both studies found that inadequate child care in Montana has a considerable effect on the state economy.

From a labor supply perspective, the survey conducted by the Bureau of Business and Economic Research (BBER) found that for Montanans who struggle to find childcare, 22% turned down a job offer, 15% went from full-time to parttime and 12% quit their jobs. Licensed child care can only meet roughly 45% of demand.

Couple this with an aging population — Montana is the oldest state in the West — and there has been an 8 percentage point decline in the labor force participation rate since 2020. It’s now about 62%, about the same as the national average.

Global supply chain issues persist. According to a survey conducted for World Trade Center Montana by the BBER, the most frequently cited impact of the COV-

ID-19 pandemic on responding firms was delayed or prevented incoming transport of components or supplies. And the 2021 BBER survey of manufacturing firms in Montana finds employment and supply chain issues were the two primary concerns for the state’s manufacturers. The causes of bottlenecks in the global supply chain are well-documented and can be distilled down to Covid-related production cuts and transportation shortages.

The cost of a shipping container has risen 2-3 fold since the end of 2020.

What is fueling that, at least in the short run, is inflation. Some policy pundits attributed inflation to the monetary and fiscal stimulus as the potential primary source, but now the focus is on supply side issues. And like everything else, the reasons behind inflation are not uniform. First, the overall increase in inflation has been driven by a relatively small number of goods and services, such as used cars and travel. Second, the way inflation is calculated, particularly when using the consumer price index, can lead to exaggerated data. It’s best to consider the trend of inflation rather than the absolute number. Market-based expectations do not foresee inflation above 2.2% for the foreseeable future.

Montana’s recovery from the Covid recession has been remarkable. Economists are having a difficult time reconciling the short-run severity of the recession with the rapid recovery. Is it due to the considerable stimulus? Misleading data? A public health crisis? Probably all of the above plus others. But as short as this crisis was will likely have lasting short- and long-run impacts.

In the short run, support is ending for unemployed workers and those struggling to pay their rent and mortgages.

New Covid variants could disrupt the recovery. Over the longer term, the nature of work is likely to change, some sectors will become moribund while others will restructure; how we provide health care and childcare and economic certainty will also be part of the conversation.

Robert Sonora is the associate director at the Bureau of Business and Economic Research at the University of Montana. He is also a senior research professor at the university’s College of Business.

MISSOULA business ∙ FALL 2021

21

Get to know your 401(k) a little better As we approach the end of the year, many people ask about the best things they can do to close the books on the current year and prepare for the next. My first recommendation is to look at their retirewill johnson Financial advisor ment account(s), ensuring that their plan structure and their contributions align with their goals for the future.

Whether your employer-sponsored retirement plan is a 401(k), 403(b) or 457 plan, the end of the year is a good time to ask yourself these questions:

• Do you know what funds your 401(k) is invested in?

• Are you in an actively managed account, or something set up for a targeted retirement date?

• Is your 401(k) meeting your risk comfort level, or is it time to reevaluate your 401(k) investments as part of your overall portfolio?

• Are you fully funding your 401(k), funding it enough to get your employer match, or needing to make changes in your contributions?

These are all good questions to consider while reviewing your retirement plan.

For many families, their 401(k) is one part of a larger investment and retirement savings plan. It’s important to evaluate your 401(k) both as an individual item

and as part of your entire financial picture. For example, is your 401(k) by itself designed to handle market swings? And when evaluated in context of investments in your taxable and tax-free accounts, are the assets in your employer-sponsored retirement plan appropriate for your overall retirement savings plan?

Another aspect to consider is strategizing your withdrawals from your 401(k) account. Generally, withdrawals are available penalty-free starting after you reach age 59½. There is an exception to allow withdrawals at age 55 penalty-free if you have separated from service, but many plan administrators allow this with a one-time only withdrawal. If you are interested in pursuing early withdrawals, you’d have to determine what annual income you’d need from your 401(k), how many years you’d need it before other incomes may become available, and if the tax burden on the amount for multiple

You can see it everywhere you look: safety, and how it’s protecting all kinds of work all over our state. The proof is in how we’re getting back at it – creating, tending, teaching and building. Montana State Fund is proud to help protect work and workers, and it’s clearer than ever that safety works here. See how Montana companies are putting safety to work at safemt.com.

22 MISSOULA business ∙ FALL 2021

years is worth the price of the withdrawal.

When you reach age 72, required minimum distributions (RMDs) come into play. These RMDs are on retirement accounts where pre-tax funds are contributed — like 401(k)s — and the investments are allowed to grow tax-deferred.

The stipulation is that at age 72, retirees must begin taking annual income (based on life expectancy) out of these accounts.

That income is taxed at the current tax rate. Note, RMDs are also required of IRAs, so if you plan to roll your 401(k) over into a traditional IRA when you leave your company, you will still need to plan for RMDs. Will Johnson is a financial advisor and agent with Will Johnson & Associates, a division of Farm Bureau Financial Services.

Real Estate Professionals Leaders in the Real Estate Industry throughout Western Montana since 1961 RESIDENTIAL - COMMERCIAL - RANCH - LAND

Katy Anderson 880-2060

Sam Angel 546-2522

Jennifer Barnard 529-7644

Ed Coffman 370-5009

Wendy Coffman 880-5001

Joe Cummings 240-9435

Michele Hall 531-5298

Carla Hardy 531-8112

Sandee Kuni 241-3034

Janna Pummill 546-3144

Karen Berg-DiGangi 201-5626

Cindy Biggerstaff 544-4653

Carol Brooks 218-9822

David Brooks 240-9269

Bill Bucher 529-8329

Benji Butzon 518-1857

Nancy Coffee 240-0805

Tory Dailey 880-8679

Goldie Dobak 240-2331

Chris Funston 560-4007

Julie Gardner 239-1848

Shawna Gascon 207-1768

Zach Gratton 794-7572

Rita Gray 544-4226

Annelise Hedahl 546-6979

Adam Hertz 239-1865

Brittni Hertz 546-8904

Bill Hohler 880-8910

Vickie Honzel 531-2605

Karli Hughes 531-4150

Ruth King 531-2628

Tavia Kohles 868-8471

Peter Lambros 396-4335

Caroline McCauley 303-0718

Courtney McFadden 671-7901

Jeanette McNamee 396-9261

Rick Meisinger 240-6031

Jackie Mumm 546-7221

Hillary Ogg 370-0137

Jim Olson 880-9221

Patsy Plaggemeyer 240-1212

Sheryll Rainey 830-3002

Chase Reynolds 546-6334

Kila Reynolds 529-4574

Tom Skalsky 546-6620

Brandy Snider 239-8811

Sasha Vermel 404-6241

Jack Wade 240-3089

Lyla Wiemokly 546-1580

Bill Wyckman 544-7592

Mary Louise Zapp-Knapp 546-2260

Jan & Rod Rogers Shirley Simonson 239-5930 546-9595

Jami Woodman 539-1955

Dan Worrell 546-8903

Carly Chenoweth Lic. Assistant

Shawn DeStafney

Joy Mogensen Jordyn Nelson

Lic. Assistant

Assistant

Lic. Assistant

Charlie Pew

Lic. Assistant

Katie Thies

Lic. Assistant

Erin Wyckman Lic. Assistant

O w n e r s / Pa r t n e r s

Pat Dauenhauer President/Parner

Bruno Friia CEO/Partner

Bob Zimorino 239-9795

S u p p o r t Te a m

A s s i s t a nt s

Jeri Barta Lic. Assistant

Savannah Tynes Merrilee Valentine 546-7640 370-4984

Sloane Adams Donna Campbell Connor Cyr Savannah Anderson Accounting Admin. Asst.

Admin. Asst Admin. Asst.

Le a d e r s h i p Te a m

Gordon Gilchrist IT Manager

Alisa LaRue Controller

Deana Ross Broker/Manager

Brittany Scalise Jeremy Schultz Roxanne Shelly Will Windham CORE Support Broker/Manager General Operations Digital Marketing Manager Manager MISSOULA business ∙ FALL 2021

23

We make banking simple...

Your new account is just a click away! Now offering online account opening in addition to our online and mobile banking features!

O PE N

N OW

Member FDIC | Equal Housing Lender

24 MISSOULA business ∙ FALL 2021