eye on October 2016 - Montana Chamber of Commerce...KLJ Engineering, Bozeman ... nomic developers. However, when the Chamber heard that businesses were struggling in Cut Bank due to

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A N N U A LM E E T I N G I N B I L L I N G S O C T O B E R 2 7

S U P P O R T M O N T A N A MANUFACTURING:J O I N S T A T E A S S O C I A T I O N

CELEBRATE M F G D A Y

eye on October 2016

2 Montana Chamber of Commerce Eye on Business

2015-2016Board of Directors

* Executive Committee

*Aimee Grmoljez, ChairCrowley Fleck, Helena

*Jeff Billman, Past Chair Billman’s, Cut Bank

*Webb Brown, President/CEO Montana Chamber of Commerce, Helena

*Todd O’Hair, VP of ProgramsCloud Peak Energy, Helena

*Greg Thayer, VP of Gov’t Relations Montana Milling, Great Falls

*Bill McGladdery, Secretary/TreasurerTown Pump, Butte

*Richard Miltenberger, VP of Membership Interwest Health, Missoula

Coco BallewConsumer Direct Care Network, Missoula

Ed Bartlett Attorney at Law, Helena

Chad Bauer Republic Services, Missoula

Kathy BoelterArrow Solutions Group, Billings

Heather BurnhamBigfork Chamber of Commerce

Don CheryGlacier Bancorp, Inc., Kalispell

Kelly Cresswell Reach Higher, Helena

Frank D’Angelo D.A. Davidson & Co., Missoula

Rob Ferris Vision Net, Great Falls

Hillary Folkvord Sacajawea Inn, Three Forks

Mike Frank Blue Cross and Blue Shield of MT, Helena

Weston FrickeSimms Fishing Products Corp., Bozeman

Kristin HeckLC Staffing, Kalispell

John HinesNorthWestern Energy, Helena

Wayne HirschUS Bank, Billings

Paul HopfaufMDU Resources, Glendive

Niles Hushka KLJ Engineering, Bozeman

Matt JonesBNSF Railway, Bozeman

Shauna Kane Delta Airlines, Park City, UT

Terry Kramer Kramer Enterprises Inc., Kalispell

Kyle Lingscheit PayneWest Insurance, Missoula

Kathy McLaneMid-Rivers Communications, Glendive

Candice Payne Alaska Airlines, Spokane

Connie PrewittBillings Clinic, Billings

Erik Sletten Sletten Companies, Great Falls

Tom SpikaSpika Design & Mfg, Lewistown

Bill SquiresBlackfoot Communications, Missoula

Gary Underwood Charter Communications, Dallas

Susan Wolff Great Falls College of MSU

CEO MESSAGE

Manufacturing Makes Montana and America

Our theme in this month’s “EYE on Business” is Manufactur-ing. As I’ve noted before, the Montana Manufacturing Association formed back in 1999, following the demise of the former (stand-

alone) MMA about a half-dozen years prior. Originally, it started as the Montana Manufac-turing Council – we made the switch to Associ-ation about three years ago.

You’ll note the intentional naming as “Man-ufacturing,” rather than “Manufacturers.” That’s because this organization is for anyone who supports manufacturing – not just the manufacturers themselves. If you’re a supporter – and a member of the Montana Chamber – let us know if you’d like to be listed as a member of the MMA. There’s no extra charge!

About a dozen other state chambers also serve as their state’s manufacturing association. In part, there may not be enough manufacturing businesses to sustain a separate organization with separate administration, overhead, etc.

That’s what happened with the prior MMA. On a more positive note, this collaboration is also because manufacturers’ issues are generally the same as other chamber members’.

Workforce issues, business climate, and infrastructure develop-ment (three of our Envision 2026 Strategic Plan objectives) affect manufacturers as much as other chamber members. In fact, in one area – business equipment tax – the impact is even greater.

Just as the Montana Chamber is a member (in fact, I’m hon-ored to have served as Chair) of the Council of State Chambers (COSC), we’re proud to be a member of the Conference of State Manufacturers Associations (COSMA). Likewise, I was just elected First Vice President of COSMA at our recent annual meeting. Both groups provide a network of peers for us, with everything from best practices to emerging trends to comparative analysis.

My position as an officer of COSMA places me on the Board of the National Association of Manufacturers (NAM). NAM serves as the voice of manufacturers at the federal level in the Nation’s Cap-itol. Besides learning from the speakers, sponsors, and members of NAM, I get to be Montana’s voice on that board, making sure small manufacturer and rural-state issues are raised.

While our “EYE” focus is only this month on manufacturing, our support and promotion of the industry is 24/7/365. Help us help the manufacturing industry by being involved in the MMA. Keep up the good work!

Webb Brown

President/CEOMontana Chamber

of Commerce

Eye on Business October 2016 3

ELECTION PREVIEW

I was with a group of leaders recently and we discussed the con-cept of “getting things done.” I believe in life that 90% of “getting things done” is showing up. It is why I encourage all Montanans to VOTE- show up. If you want to “get it done” in the public policy arena with advocacy- first you must “show up.”

This is my last article as Chair and it will focus on two points: How the Montana Chamber Board is “showing up” and who is “showing up” at the Montana Legislature.

First, the Montana Chamber Board has “shown up” with our endorsements of statewide and federal candidates – see insert in this magazine. Not an easy task for our Board to vote- as Mon-tana is likened to one town with long streets- so voting for one person means we did not vote for another. We appreciate all the candidates for office for their public service in running for of-fice- it is a sacrifice and we are grateful for each person running.

Second, the Montana Chamber Board has a government affairs committee that has driven to Billings, Great Falls, Missoula and Helena to interview legislative candidates. With each can-didate we discussed our Envision 2026 Montana Chamber Strategic Plan and its core objectives of promoting work-force development, improving the business climate, promoting strategic infrastructure development and maintaining Montana’s entrepreneurial development. As a nod to all of you who helped form this plan, not one legislative candidate of the more than 35 we met with has said “I don’t like that objective.” However, we have been impressed with a number of candidates as tireless sup-porters of these objectives with a pro-business focus.

While the Montana Chamber does not endorse legislative can-didates, the following candidates have expressed their position to our group that business is not the enemy to government and rather business is major consumer of government services and a partner with government and all the consumers that are served by government:

SENATE CANDIDATES:SD 23 Roger Webb SD 25 Donna Huston SD 26 Don Roberts SD 28 Tom RichmondSD 40 Terry GauthierSD 47 Dan Salomon

HOUSE CANDIDATES:HD 18 Rob Cook

HD 19 Wendy McKameyHD 20 Fred Andersen HD 22 Lola Sheldon-GallowayHD 25 Jeremy Trebas HD 43 Peggy Webb HD 47 Kathy Kelker HD 52 Jimmy Patelis HD 55 Vince Ricci HD 56 Sue Vinton HD 84 Steve Gibson

This list is not exhaustive and we appreciate all of the other rac-es and candidates we did not have a chance to sit down with or meet this election cycle. There are many excellent Democrat and Republican candidates not listed above. However, our government

2015-2016 Foundation Board of Directors

Rick Edwards, PresidentNorthWestern Energy, Butte

Webb Brown, ED, Sec./Treas. Montana Chamber of Commerce, Helena

Ed BartlettAttorney at Law, Helena

Jeff BillmanBillman’s, Cut Bank

Kathy Boelter, Past PresidentArrow Solutions Group, Billings

David BrownWyo-Ben, Inc., Billings

Kim ChampneyElectrical Consultants, Inc., Billings

Don CheryGlacier Bancorp, Inc., Kalispell

Tami ChristensenTri-County Implement, Sidney

Aimee GrmoljezCrowley Fleck, Helena

Steve HollandRetired, Bozeman

Greg KohnVistage, Billings

Bill WoodyMontana Health Solutions, Missoula

Chamber Staff/ContactsLeah BrownExecutive Asst./Bookkeeper .............442-2405, ext. 113

Webb Brown, CAEPresident/CEO ................................... 442-2405, ext. 101

Pete BurwellMembership Director .......................442-2405, ext. 103

Stacye DorringtonOffice/HSBC Manager ......................442-2405, ext. 100

Dee DurandStrategic Plan/MACE Assistant .......442-2405, ext. 105

Jim HizerStrategic Plan Manager .................... 442-2405, ext. 110

Nate KavanaghCommunications Director ...............442-2405, ext. 104

Bridger MahlumGovernment Relations Director ......442-2405, ext. 102

Kerry SchaeferGovernors’ Cup Manager ........................406-463-2370

All Staff Emails are:“firstname”@montanachamber.com

The Eye on Business is published monthly by theMontana Chamber of CommerceP.O. Box 1730 Helena, MT 59624

(406) 442-2405(406) 442-2409/fax

Toll Free-1-888-442-MONT (6668)www.montanachamber.com

Articles contained in this publication are available for redistribution with proper credit and attribution.

Material included in this magazine does not necessarily reflect the position of the

Montana Chamber of Commerce.

Aimee Grmoljez

Crowley Fleck, HelenaChair of the Board of Directors

Montana Chamber of Commerce

Chair Message continued on page 9


MBA TOUR

Chamber Brings Back Valuable Input to Prepare for SessionThe Montana Chamber of Commerce traveled

nearly 2,000 miles on its most recent Montana Business Agenda (MBA) tour. The Chamber not only informed Montanans of Chamber happenings, but

more importantly gathered infor-mation from each of the 18 com-munities visited on the tour. From Butte and Bigfork, to Colstrip and Sidney, the Chamber was busy throughout the month of Septem-ber.

The tour included a western loop with stops in Butte, Missou-la, Polson, Bigfork, Kalispell, Cut Bank, and Great Falls. The East-ern loop included Livingston, Co-lumbus, Billings, Laurel, Colstrip, Miles City, Glendive, Sidney, Glasgow, Malta, and Lewistown.

The Chamber’s Envision 2026 strategic plan was a main point of emphasis throughout the state-

wide travels. President/CEO Webb Brown, Govern-ment Relations Director Bridger Mahlum, and Com-munications Director Nate Kavanagh heard time and time again throughout the tour about the need for workforce development programs.

In addition to workforce development, infra-structure needs also continue to be a hot topic in Montana’s business community. Both needs are highlighted as core objectives in Envision 2026, the Chamber’s 10-year strategic plan. A point of dis-tinction with Envision 2026 is the metrics associ-ated with each objective and our ability to measure our progress.

Relentless regulations, as well as workers’ comp

rates were also discussed at multiple meetings around the Big Sky. The Chamber is committed to working at lowering the burden of regulations on Montana businesses and creating a more inviting climate for new and incoming businesses.

This includes the eventual elimination of the business equipment tax. As we heard on the tour, this antiquated tax can be a hindrance for compa-nies’ ability to grow and hire new employees.

Another question the Chamber often heard was if the Chamber had an opinion on a local option sales tax. At this time, the Chamber does not either support or oppose this issue. The Chamber would definitely prefer a general statewide sales tax to ensure all consumers (including our 11 million vis-itors yearly) pay the same price for the same goods around Montana. This position is not new for the Chamber even though the Chamber will not be pro-posing a statewide sales tax in the upcoming legis-lative session.

While each stop was unique, meetings were gen-erally in conference rooms with local chamber of commerce executives, business leaders, and eco-nomic developers. However, when the Chamber heard that businesses were struggling in Cut Bank due to a Main Street construction project, we de-cided to move the meeting to a local café who was hit hardest by the construction burden. Word spread throughout the community and a group of 25 area leaders showed up for breakfast to support the Big Sky Café. This is just one example of the state cham-ber’s support of small business in Montana.

The Chamber is already planning to travel the state again after the 2017 legislative session. Keep an eye out for the next time the Montana Chamber will be in your back yard.

Nate Kavanagh

Communications DirectorMontana Chamber

of Commerce

3Chamber Employees

18 Communities Visited

1800+Miles Traveled


MONTANA MANUFACTURING

Bridger Mahlum

Govt. Relations DirectorMontana Chamber

of Commerce

Chamber Prepared to Tackle Tax, Infrastructure, and Workforce Needs

In a time when technology and service-oriented industries appear to hold the most attention, man-ufacturing is the unsung pillar of Montana’s econ-omy. While people scramble for jobs at Google and Facebook or to gain traction starting their own law practice, openings in manufacturing positions ei-ther go unnoticed or disappear altogether.

Making things from scratch: it’s the labor-inten-sive type of work deserving of its respect, defined by both success and need for improvement in our state. We are committed to paving the way for growth in these industries through the Montana Manufacturing Association, a subsidiary of the Montana Chamber.

Manufacturing has experienced both local and federal momentum. Through grants from the U.S. Department of Labor, Flathead Valley Community College in Kalispell utilized some of the best equip-ment available for its welding, machining, and elec-tronics programs. The college also implemented a new department focused exclusively on connecting interested students with manufacturers through on-the-job experience prior to graduation.

Federally, the Montana Chamber supported the Strengthening Career and Technical Education for the 21st Century Act (H.R. 5587), which easily passed the U.S. House this month. The bill is de-signed to modernize technical education programs through input from employers and responsive to needs identified by labor market data. These are two fine examples of manufacturing heading in the right direction, but challenges persist.

Montana’s tax policy is not competitive when it comes to attracting capital investment, especially with border states like North Dakota and Wyoming. While we made progress during the 2013 Session re-garding business equipment tax relief, the valuation threshold for exemption does not apply to enough small businesses today.

Our 2015 effort in HB 213 would have increased the exemption from $100,000 to $500,000, but the leg-islation was tabled in House Appropriations. Many manufacturers will start their businesses in North Dakota instead where they can expect no property taxes and palatable workers’ compensation premi-ums. Our goal is to gradually eliminate this tax.

Infrastructure investment is another way in which Montana can reverse its competitive disadvantage in the Northwest. Manufacturers depend on reliable roads and bridges for commerce, in addition to wa-

ter, sewer, and energy transmission systems to op-erate their factories, plants, and businesses.

The American Society of Civil Engineers recently issued an over-all infrastructure grade of “C-“ to Montana. We owe a better report card to these businesses and the jobs that they support. The Mon-tana Chamber is prepared to do so through common-sense solutions in conjunction with the Montana Infrastructure Coalition.

Montana is export-driven in the manufacturing sector. There-fore, success in these industries is also contingent on factors be-yond their control. Aside from the U.S., economic growth around the world has been anemic. So the relative strength of our dollar has made our products less attractive to price-conscious foreign consumers. With sales down and contracts seldom, production dips and so does the need to re-tain a full employment.

Workforce issues have an influence on prosperity in manufacturing. With a sizable portion of all in-dustrial engineers nearing retirement, studies have estimated that the U.S. manufacturing sector will see a shortage of nearly two million workers over the next decade.

The Montana Chamber will explore ways to cre-ate more apprenticeship and vo-tech opportunities through the legislative process. However, address-ing the “skills gap” through government-spon-sored programs ought to serve as just a part of a multi-faceted strategy. Manufacturers should con-sider ramping up their in-house programs to pro-vide continuous education for employees, in addi-tion to expanding their dialogue with secondary and post-secondary schools to adequately prepare stu-dents for the workforce.

With the 2017 Session in sight, the Montana Chamber will do everything it can to create a better business climate for manufacturers. The November elections will determine how the Legislature’s 90 working days will unfold.

Especially critical in this cycle is the contested race for Montana Supreme Court Seat 3. Despite low

Govt. Relations continued on page 14


MMEC provides substantial return on investment to Montana taxpayers

Montana State University’s Montana Manufac-turing Extension Center provides the state of Mon-tana with an 8-1 return on investment, based on $250,000 the state invested in 2014, according to a recent study by the University of Montana’s Bureau of Business and Economic Research.

“Manufacturing is a vital part of Montana’s eco-nomic future, and the growth in manufacturing in Montana outpaces the national rate,” said Paddy Fleming, director of MMEC. “Eighty-one percent of Montana manufacturers have fewer than 10 em-ployees and 55 percent of them have been in busi-ness for fewer than 20 years.

During the past 20 years, however, the number of manufacturers has more than doubled to 2,841 com-panies, which means that we’re busier than ever. Most companies consider 30 percent (return on in-vestment) to be a good investment, so 800 percent is truly amazing. We are proud to be one of the best investments the state of Montana makes to further manufacturing in Montana.”

Founded in 1996 and based in the College of Engi-neering at MSU, MMEC works with Montana manu-facturers to help them grow, innovate and increase their profitability.

MMEC staff typically makes on-site visits to Montana manufacturing clients to assess problems, suggest appropriate solutions and assist with im-plementation of those solutions. The center closely monitors its performance through client feedback and by following an evaluation procedure developed by its parent organization, the National Institute of Standards and Technology.

An independent party surveys clients about six

months after a project is completed and questions those clients about their satisfaction with the ser-vices received. The respondents are also asked to quantify certain economic impacts and outcomes associated with MMEC. The findings of these sur-veys associated with MMEC projects in 2015 are summarized in a report.

Key findings include:

• MMEC clients reported that as a result of MMEC’s work:

- 388 jobs were created or retained

- $71.9 million in sales was created or retained

- $5 million in cost savings was realized

- $21.4 million was additionally invested

- $796,000 in costs were avoided

• Due to the 388 jobs that were created or re-tained, approximately $1.9 million was added to the Montana individual income tax revenue.

• The state of Montana received about $8 in income tax revenue for each dollar invested in MMEC.

• Personnel issues (employee recruitment and re-tention) have increased as the labor market has tightened.

• Fewer respondents are mentioning financing as a challenge as the economic recovery has strengthened.

• The most reported outcome of the 2015 MMEC visits was an increased investment in workforce development and employee skills. Second place was a tie between increased investments in plant/equipment and retaining otherwise lost jobs.


Montana’s Manufacturing Conference Convenes in Fairmont The Montana Manufacturing Association is proud to sponsor Montana’s Manufacturing Conference, the

biennial Compete Smart. Manufacturers from around the state will descend upon Fairmont Hot Springs for the Montana Manufacturing Extension Center’s conference October 5-7. The 2016 Compete Smart Conference aims to strengthen skills, grow networks, and enhance opportunities for business.

Janyce Fadden, Executive-in-Residence for the College of Business at the University of North Alabama, will keynote this year’s conference. Previously, Fadden served in executive leadership roles for multina-tional corporations including Honeywell, General Signal, Applied Power, Pacific Scientific, and Danaher.

Speakers, sponsors, booths, showcases, and lots of networking highlight this year’s Compete Smart conference. MAKING it happen

under the BIG SKYMAKING

YEARSCompete S M A R TMontana Manufac tur ing Conference

2



Open Doors and Minds this MFG Day

The Montana Chamber of Com-merce and Montana Manufac-turing Association is a support-er of MFG DAY, a celebration of modern manufacturing meant to inspire the next generation of manufacturers. Although Manu-facturing Day officially occurs on October 7 this year, any day can be a Manufacturing Day. We’re plan-ning MFG DAY Helena on October 14. Join the movement and plan an event in your community this fall. Facility tours are a great way to promote your business and the manufacturing industry.

MFG DAY addresses common misperceptions about manufac-turing by giving manufactur-ers an opportunity to open their doors and show, in a coordinat-ed effort, what manufacturing is — and what it isn’t. By working together during and after MFG DAY, manufacturers will begin to address the skilled labor short-age they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperi-ty of the whole industry.

Supported by a group of indus-try sponsors and co-producers, MFG DAY is designed to amplify the voice of individual manufac-turers and coordinate a collective chorus of manufacturers with common concerns and challeng-es. The rallying point for a grow-ing mass movement, MFG DAY empowers manufacturers to come together to address their collec-tive challenges so they can help their communities and future generations thrive.

For more information and to schedule your MFG Day event, visithttp://www.mfgday.com/.

MMEC report shows Montana has increased its manufacturing base

Montana State University’s Montana Manufacturing Extension Cen-ter recently released the 2016 version of their annual State of Montana Manufacturing report, showing that Montana has increased its manu-facturing base.

This report was produced by a partnership between MSU’s Montana Manufacturing Extension Center and the University of Montana’s Bu-reau of Business and Economic Research.

Highlights from the report include the fact that Montana has risen from the 1997 ranking of 41st in manufacturing as a percentage of the economic base to 36th in 2012. And, manufacturing in Montana cur-rently accounts for 22.4 percent of the state’s base gross product.

The highest growth in manufacturing jobs occurred in the fabricat-ed metals sector, the beverage sector (breweries and distilleries) and the wood products sector. Factors involved in this growth included the introduction of new companies to the state, such as the ADF Group, a Canadian company that manufactures steel components and opened a branch in Great Falls, the cross-laminated timber manufacturing start-up SmartLam in Columbia Falls and exponential growth in breweries and distilleries across the state.

Manufacturing employees in Montana earn an average salary of $45,754, which is 17.2 percent higher than the average worker in Mon-tana, although Montana manufacturing employees still earn less than their national counterparts, averaging about 71.5 percent of the nation-al average manufacturing wage.

Manufacturing wages in Montana currently account for approx-imately 16 percent of the total worker earnings in Montana. Mining accounts for 18 percent of worker earnings, Agriculture accounts for 15 percent of worker earnings, non-resident travel accounts for 14 per-cent, and federal, civilian and military workers account for 25 percent of Montana’s wages.

Exports from Montana manufacturers have remained relatively steady and despite economic downturns throughout the world remain at about $1 billion per year. Montana manufacturers export mostly to Canada, followed by China and Korea.

While Montana has had some major manufacturers shut down in the past 10 years including Columbia Falls Aluminum, Stone Container and Plum Creek, Montana manufacturing remains strong due to the en-trepreneurial startups that have filled the gaps created by shutdowns. Manufacturing employment has remained steady or grown slightly and is currently at approximately 23,500 employees. In addition, studies have shown that each manufacturing job in Montana produces an addi-tional 2.58 jobs elsewhere in Montana’s economy.

Founded in 1996 and based in the College of Engineering at Mon-tana State University, MMEC provides hands-on assistance to Mon-tana manufacturers in the areas of growth, innovation and profit en-hancement. BBER, founded in 1948 and based at the School of Business Administration at the University of Montana, produces research and information on the Montana economy, including annual economic forecasts for manufacturing in Montana.



Joins us to Maximize Montana’s Manufacturing PotentialGreetings from the Montana Manufacturing Asso-

ciation. Being the current President of the Montana Manufacturing Association, and a third generation member of a family-owned and managed Mon-

tana-based manufacturing busi-ness, I am always excited when someone gives me a soapbox on which to talk about manufactur-ing.

Many people do not realize that manufacturing contributed $2.17 trillion to the US economy last year. That is more than 12% of the total gross domestic product. I have even seen claims that man-ufacturing has the highest multi-plier of any economic sector, and when you combine direct and in-direct inputs into the US economy from manufacturing, it makes up closer to 35% of the gross domes-tic product.

There is no doubt that manufacturing in America is not dead, or even on the ropes, as some people might lead you to believe. In a country as large and diverse as the US, it is essential to have a robust manufactur-ing industry if we are to have a strong middle class. We at the Montana Manufacturing Association feel that Montana has tremendous potential, and we are committed to the cultivation of this potential.

Support the IndustryThe Montana Manufacturing Association’s basic

mission is to identify and further the common inter-ests of in-state businesses impacted by manufactur-ing. Who qualifies to be a member of the Montana Manufacturing Associ-ation? We welcome pretty much any-one who adds value to a product. So, obviously this would include manu-facturers, molders, mills, mines, and refineries; but it would also include other less-obvious businesses who use a manufacturing process to add value to a product.

We also welcome businesses that support our Montanan manufactur-ers and are positively impacted by a flourishing Montanan manufac-turing environment. This includes logistics companies, materials sup-pliers, industrial supply businesses,

personnel management groups, temporary employ-ment providers, and professional services−such as engineering, financial, and legal specialists.

The primary ways we support Montanan manu-facturers and those impacted by the manufacturing industry are:

• Connecting manufacturers and support indus-tries to build business ties.

• Advocating for legislation and rules that benefit manufacturing.

• Supporting and promoting international trade.

• Educating Montanans about the importance of manufacturing.

This is a fairly ambitious list of objectives for an organization with limited resources like ours. We realize this, but feel we have identified ways we can work towards each of these objectives.

Facilitate NetworkingFirst off, we help facilitate networking which al-

lows manufacturers the opportunity to find out what else is going on in the state. Many of us work in niche markets and fly a little under the radar of the other businesses in the state. Because of this, without good networking, many of us could end up going out of state or even out of country to source products or services available right here in Montana.

We also put out a newsletter with an assortment of information about our manufacturing climate. Within this newsletter we often feature one of our members so that other manufacturers around the state get a chance to learn a little more about some of the unique things we are doing.

Another benefit of increased state-wide communication between man-ufacturers is they can share their opinions on pending legislation, find common ground, and present a uni-fied voice to the legislature. We have members of our group who have quite elegantly represented man-ufacturing interests during recent legislative sessions.

One of the most intimidating things for manufacturers is nav-igating the regulations governing the exportation of their products. By networking, manufactures can learn what others have done to overcome some of these common challenges.

Bryan Wood

CEO, Wood’s Powr Grip, LaurelPresident, Montana

Manufacturing Association


Educate the PublicAs pointed out earlier, manufacturing is essential

for a healthy economy. Because of this, we are pas-sionate when it comes to educating people about the importance of manufacturing. Many of us feel that manufacturing has at times been falsely considered a dirty and undesirable career path.

This wasn’t always the case. There was a time in America when manufacturing jobs were coveted. They were very stable, with good benefits and often above average wages.

Despite the tarnished rep-utation of more recent years, manufacturing jobs are still very stable, with good bene-fits and above average wages. To support this, the National Association of Manufacturing has published some statistics which are available at http://www.nam.org/Newsroom/Top-20-Facts-About-Manu-facturing/.

To help overcome some of the negative perceptions, many of our members are looking for opportunities to offer tours of their facilities, giving people a firsthand view of what today’s manufacturing looks like. Most of us are not operating out of facilities with bank-like curb appeal, so people are often astonished when they see the level of technology being used within these metal and cinder-

block facilities. We are always looking for ways to educate people about the opportunities available in manufacturing and the importance of manufactur-ing to our economy.

Recognize SuccessAnother way the Montana Manufacturing Asso-

ciation promotes manufacturing is by partnering with the Montana Chamber of Commerce to present a “Man-ufacturer of the Year” award. We review the applications for this award and determine who best meets the criteria for the award. Receiving this award results in lots of free publici-ty as well as the opportunity for winners to promote them-selves with the excellence this award represents; a means of validation to potential custom-ers and prospective employees.

Join UsWe ask that you join us in

encouraging people to explore their entrepreneurial spirit and consider manufacturing. It does not matter if you live in the city or the country, all you need is an idea that you are passionate about and the desire to pursue it. Manufac-turing has been a key element in making the United States of America the great country it is, and it provides us with abun-dant opportunity to contribute to its continued greatness.


affairs committee wanted to share the above list and thank these individuals for “showing up” to meet with us and exemplify a pro-business focus.

On my behalf I want to thank every individual who is running across Montana in every race this 2016 election cycle. I run the government affairs group for Crowley Fleck and I tell everyone I know the real truth about Montana politics — running for office is not about money and fame — so take a moment and thank those who run for office. Politics does not need to be mean, it needs to be honest and ask those who run for office to focus on what can be done to make the Republic of the United States better- and the great state of Montana one that views business as a partner.

I am honored to have served in this post of Chair of the Montana Chamber for a short period of time - to “scheme and dream” with so many of you. I thank each of you for “showing up” each day in all you do for your community, business and Montana.

Chair Message continued from page 3

Photos courtesy of Wood’s Powr Grip


AROUND MONTANA

City College at MSU-B Provides Skilled Trade Programs

We’re pleased to present this series of updates on Montana’s two-year col-leges and how they are preparing their students to enter the manufacturing industry. This is the final article in this series. We would like to thank Dr. Daniel Bingham of Helena College for gathering all of the articles for this series.

City College at Montana State University Billings is the regional pro-vider of accredited skilled trade training programs that support Mon-tana’s manufacturing companies. City College has a reputation of being the source of highly qualified graduates in educational fields related to the local and regional needs of employers.

Employers often seek graduates and program completers from City College programs in Commercial Driver’s License (non-credit), Process Plant Technology, Welding and Metal Fabrication, Sustainable Energy Technology, and Diesel Technology.

The CDL program provides employers with an entry lev-el employee with the creden-tial of a Class A Commercial Driver’s License. This pro-gram is six weeks in length and is specific training re-lated to commercial vehicle operation.

The Process Plant Technology program is an academic program that is four semesters in length. The graduate of the program will possess the skills needed to be a successful process operator, as well as the related interpersonal, mathematics, and writing skills the high level employers seek.

The Welding and Metal Fabrication program is an academic program with four options for student completion. A student may elect to attend four semesters of training, and receive an Associate of Applied Science degree, or if desired three other options exist, including a one semester diploma.

The Sustainable Energy Technician program provides entry level electrician / electronics training that graduates can use as an employ-ment opportunity, or apply to an electrician’s apprentice program.

The Diesel Technology program provides the skills required by a wide array of employers for mechanical repairs. The employment opportu-nities are only limited by the individuals drive and desire when seeking employment. Typical employment opportunities include; Over the Road truck repair facilities, Heavy Equipment repair facilities, Agriculture Equipment repair facilities, lift truck repair facilities, agencies with stationary generation systems, and independent repair businesses of all types.

SafetyFestMT Slated for Oct. 17-20

SafetyFestMT provides free quality training to employers and their workers throughout Mon-tana. Just as the needs of each community in Montana are di-verse and unique so is each Safe-tyFest. Every event is geared to-wards the community hosting it. Great Falls will be the site of the next SafetyFest event October 17-20. The University of Great Falls campus is the site of this month’s event and with nearly 50 topics on this year’s agenda, there’s some-thing for everyone.

Along with a core curricu-lum consisting of classes such as OSHA 10-Hour General Indus-try, OSHA 10-Hour Construction, Work Comp 101, Stay at Work/Return to Work, and others; Safe-tyFest provides classes that are geared towards specific needs of the region. Visit SafetyFestMT.dli.mt.gov/GreatFalls-2016 to view class descriptions and the event’s full agenda.

Whether you’re a seasoned safety professional, or just getting started; you can pick and choose the classes you need. SafetyFest has tools to help you create a cul-ture of safety in your workplace.

To date, thousands of Montan-ans from a variety of industries have attended SafetyFest. Busi-ness owners, front line managers, employees, safety professionals, job seekers and average citizens have attended SafetyFest. The va-riety of classes offered allows for a more diverse audience.

The Montana Chamber of Com-merce and Montana Manufactur-ing Association encourages you, whether you work in the trades, on a farm, or in an office, to at-tend this upcoming event.


AROUND MONTANA

Malta Event Highlights Rural Technology and Showcases Possibilities

Dina Meneely, Chamber Executive, Malta Chamber of Commerce

Technology was in full display in Malta, on Sep-tember 22, at the Hi-Line Technology Roundup. Over 130 attendees participated in tradeshow booths, panel discussions and break-out sessions covering a wide variety of tech topics from small business and entre-preneurship to agriculture, healthcare and education.

The free event, funded in-part by Triangle Com-munications’ Connected Community Challenge grant received by the Malta Area Chamber Commerce and City of Malta, promoted technology use that inspires a rural future. The stakeholder committee and event organizers included participants from local govern-ment, education, healthcare, business, agriculture, economic development and the Malta Chamber.

Ranchlogs, a Montana based tech-company, pro-vided the keynote address. A standing-room only audience heard about Ranchlogs’ software that manages various aspects of a ranch including cus-tom mapping, production statistics, and grazing ro-tations. That session, as well as the Ag panel and tradeshow booths, complete with in-cab demon-strations, showed the value that technology brings to Montana ranches.

Three recent returnees to the Hi-Line discussed how they were able to come home, bringing their remote jobs and businesses with them. The pan-elists emphasized reliable connectivity and use of communications technology that allows them to live the lifestyle they want in rural Montana, while maintaining the high level of work they do. During the event, testing of Triangle Communication’s provided Wi-Fi, showed the fastest speeds across Montana, proving that rural communities have the ability to stay connected or work remotely.

A full-size patient simulator on a gurney in the tradeshow area caught attendees’ attention. It was one of several examples of high-tech tools that are changing the healthcare industry. Montana Tele-health Association and Montana Area Health Edu-cation Center discussed the move toward telehealth and consumer directed healthcare. Providers are becoming equipped with tools such as Bluetooth stethoscopes, smartphone EKG monitors and re-mote providers who consult via video call. This technology gives rural patients the same standard of care received in urban settings.

Technology in Montana is one of the fastest grow-ing industries. Panel discussions from Montana Code Academy/Code Girls and the Harlem United F1 team, moderated by Montana High Tech Business Alliance, drove the point home that education is the key to successful careers in the tech industry, and a way to help us keep our current and future genera-tions here in Montana.

Special thanks goes out to the top tier sponsors that helped make this event possible, Montana High Tech Business Alliance, Triangle Communications, Farm Equipment Sales in Glasgow, Phillips Coun-ty Hospital, Choose Montana/Montana Governor’s Office of Economic Development, Disadvantaged Business Enterprise Program, Big Sky Code Acade-my, PhillCo Economic Growth Council and the Malta Area Chamber of Commerce.

The Montana Chamber was able to attend a por-tion of the Hi-Line Technology Roundup in Malta as part of our Montana Business Agenda Tour.


MONTANA RETIREMENT CHOICES

Plan Assets and Participant Bankruptcies When a participant files for bankruptcy protec-

tion, the obligation of the plan’s named fiduciary to protect plan assets comes into conflict with the rights of creditors—and the bankruptcy trustee—to pursue their claims. The situation can become fur-ther complicated if the participant has an outstand-ing plan loan, in which case the named fiduciary has an additional obligation to collect the loan. To re-solve such issues, the federal Bankruptcy Code, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), helps to clarify the plan sponsor’s obligations.

ERISA and BankruptcyGenerally, outside of the bankruptcy context, both

ERISA and the tax code require that all retirement plans and qualified trusts contain an “anti-alien-ation” clause preventing the assignment or alien-ation of any plan benefits. These provisions protect the debtor’s retirement assets by preventing a cred-itor from using various state0created collection tools to gain access to the debtor’s retirement assets.

In the bankruptcy context, such protections are supplemented by the exemption framework of the Bankruptcy Code. Generally, the Bankruptcy Code allows the debtor to exclude from the bankruptcy estate—and from claims of creditors—certain types of assets. These include the debtor’s retirement plan assets, to the extent they are held in plans that are “qualified” under the following tax code provisions:

• Sec. 401—defined benefit and defined contribu-tion plans, including 401 (k) plans;

• Sec. 403—qualified annuity plans and tax shel-tered 403 (b) annuities;

• Sec 408—traditional individual retirement ac-counts (IRAs), SEP-IRAs, and SIMPLE IRAs;

• Sec. 408A—IRAs;

• Sec. 414—qualified governmental plans;

• Sec. 457—deferred compensation plans of state or local governments or tax-exempt organizations;

• Sec. 501(a)—tax exempt organizations.

Generally, a retirement plan is considered “qual-ified” if it has received a favorable determination letter from the IRS and the letter remains in effect at the time of the filing the bankruptcy case. The Bankruptcy Code further allows for other means of qualification if such a letter is not in effect.

Note that the exemption for these types of retire-ment assets is available whether the debtor elects to take either the federal or state exemptions under the Bankruptcy Code.

Special Rules for IRAsIRAs—whether traditional or Roth—are subject to

some important additional rules. Where the IRA is established as part of a SEP-IRA or a SIMPLE-IRA plan, the amount of the exemption is unlimited. But where the IRA is established as part of a SEP-IRA or a SIMPLE-IRA plan, the amount of the exemp-tion is unlimited. But where the IRA is an individual IRA set up by the debtor, the exemption for the ag-gregate amount of such IRAs is limited to an infla-tion-adjusted $1 million. Effective April 1, 2016, this amount was adjusted to $1,283,025.

However, this limit does not apply to rollovers from tax-qualified retirement plans. In other words, if the bankrupt debtor has an IRA with a $2,000,000 balance, but $1,000,000 of those funds previously came into the account through a qualified rollover from a tax-qualified retirement plan, the debtor would still be well within current exemption levels.

Participant LoansOnce a debtor files for bankruptcy, creditors are

prohibited by the Bankruptcy Code’s “automatic stay” provisions from taking any action to enforce their claims against the debtor. However, the Bank-ruptcy Code provides that the automatic stay provi-sions do not apply where the debtor has previously agreed to repay an outstanding loan from a qualified plan through payroll withholding. The Bankruptcy Code further provides that such loans are nondis-hargeable, so the debtor must repay them even if he or she has successfully completed the bankruptcy and discharged his or her other debts.

The intersection of the ERISA, the tax code, and federal bankruptcy law can be complex. Contact your UBS Financial Advisor if we can help.

Montana retirement choices offer solutions for all businesses, including startup, small business, and large companies. The heart of Montana retirement choices is the multiple employer plan (MEP). Complimenting the MEP are stand-alone solutions for large and/or more complex plans, as well as special opportunities for start-ups and small employer plans. Contact us today at [email protected] or (406) 256-7132 to see how your busi-ness and employees might benefit from joining Montana Retirement Choices.

Group Health Benefits

Value &

Service

The Montana Chamber and Associated Employers have teamed together to provide business an

opportunity to solve the Health Benefits Puzzle.

Available to all Montana Employers covering at least 1 employee

Offer multiple deductibles and plan options that provide you flexibility

Choose from a “Traditional” style type plan or a High Deductible Health Plan (HDHP)

The MT Chamber & Associated Employers have been serving the interest of Employers for many years. We have combined forces to provide MT Businesses an option to government run Healthcare...Chamber Choices!

We have worked hard to earn your trust and would like to show you why more Employers are trusting their benefits to us.

If you have questions or would like more information please contact: Associated Employers 406 248-6178 or email [email protected]

Group Health Benefits

Value &

Service

The Montana Chamber and Associated Employers have teamed together to provide business an

opportunity to solve the Health Benefits Puzzle.

Available to all Montana Employers covering at least 1 employee

Offer multiple deductibles and plan options that provide you flexibility

Choose from a “Traditional” style type plan or a High Deductible Health Plan (HDHP)

The MT Chamber & Associated Employers have been serving the interest of Employers for many years. We have combined forces to provide MT Businesses an option to government run Healthcare...Chamber Choices!

We have worked hard to earn your trust and would like to show you why more Employers are trusting their benefits to us.

If you have questions or would like more information please contact: Associated Employers 406 248-6178 or email [email protected]


CHAMBER UPDATES

Join the State’s Manufacturing AssociationGreetings! Since we are featur-

ing manufacturing in this issue of the EYE on Business and we are the Montana Manufacturing Association for the state, I will focus on upcoming events. The Compete Smart conference, put on by the Montana Manufactur-ing Extension Center in Bozeman, is coming up October 5, 6, & 7 at Fairmont Hot Springs Resort. If you have not registered for the event – hurry up, it is filling up fast. We will be there as a sponsor with a booth, explaining all we do for manufacturers and the com-panies that support them.

Some of the programs you have access to when

you become a member are Retirement Choices, Safety Choices, Chamber Choices, Office Depot/Of-fice Max and eCertify. We also have a program with Personnel Plus! here in Helena for Human Resource help. All these programs are here to help business in specific areas that mean a lot to your business and your employees. Check out our website at www.MontanaChamber.com or www.MontanaManufac-turingAssociation.com and get more information on these programs.

Check out your local area also, as a lot of manu-facturers are having show-and-tell type events all across Montana. The National Manufacturing Day is October 7th this year, so check for something going on the first part of October. If you are a manufactur-er go ahead, and invite folks to your place of busi-ness. We like to think the whole month of October is a great time to show off the business.

Pete Burwell

Membership DirectorMontana Chamber

of Commerce

Stacye Dorrington

High School Business ChallengeMontana Chamber

of Commerce

High School Business Challenge Gets in on ManufacturingOctober is Manufacturing

Month, a celebration of modern manufacturing meant to promote manufacturing as a viable career and inspire the next generation of manufacturers. With over 12 million total jobs, manufactur-ing is the 6th largest employer in the U.S. Manufacturing has a wide reach, including in our High School Business Challenge.

Students competing in the Chal-lenge are responsible for manu-facturing a Digital Music Player.

Throughout the eight-week simulation (each week represents one business quarter), students market and advertise the DMP, conduct research and devel-opment, and much more.

As we recognize and promote manufacturing this month, consider a contribution to this program (100% tax-deductible) that recognizes the impor-tance of manufacturing along with educating the next generation on business principles.

To find out more about the challenge, or make a contribution, contact Stacye Dorrington (HSBC Co-ordinator) at 888-442-6668 (MONT) or [email protected].

name recognition among both candidates, the elected individual will influence business and manufactur-ing practices for the next eight years. Take a moment to learn more about both candidates to make the most informed choice at the ballot boxes. The Montana Chamber interviewed both candidates in June and endorsed Kristen Juras for the seat.

In addition to candidate interviews, the Chamber engages in each election cycle through its Montana Prosperity Plan. It consists of two political action committees (PAC), the Montana Prosperity PAC for indi-vidual contributions and the Montana Business PAC for corporate contributions. Through these funds, we are able to promote our message through independent expenditures and keep voters apprised of the most business-friendly candidates running for office. The success of our advocacy efforts in Helena, on your behalf, is largely determined by the composition of Montana’s legislative, executive, and judicial branches. Please contact me at (406) 442-2405 ext. 102 or [email protected] to learn more about our PAC activity and how you can make a difference through a contribution.

Govt. Relations continued from page 5


MEMBERSHIP REPORT

Fisher Water Service, Inc., Helena

Montana Broom & Brush Supply, Helena

Whitehall Chamber of Commerce

The Milky Whey Inc., Missoula

Missoula Copy Center, Missoula

Specialized Medical Inc., Helena

Dick Irvin Inc., Shelby

Mountain Lake Lodge, Bigfork

United Insurance & Realty, Glasgow

The Briarwood, Billings

Conrad Building Center, Conrad

Mechanix Unlimited, Great Falls

Baker Commodities Inc., Missoula

Excel Electric, Billings

PrintingForLess.com, Livingston

Drake Water Technologies Inc., Helena

Kelly Supply LLC, Sidney

Point S. Capital City Tire, Helena

Venture Inn, Libby

Laurel Golf Club, Laurel

Radisson Colonial Hotel, Helena

Uncle Joe’s, Gilford

McDonald’s, Lewistown

Bank of Montana, Missoula

Rocky Mountain Credit Union, Helena

General Mills, Great Falls

Computers Unlimited, Billings

B & B Septic, Baker

River Rising Inc., Hamilton

Montana Vistas LLC, Kalispell

Queen City Exxon, Helena

Holiday Inn Downtown, Helena

Glacier National Park Conservancy, Columbia Falls

August 15 to September 15, 2016

Treasure State Members ($35,000+)

Renewing Copper Level Member ($1,000+)

Bridger Bowl, Bozeman

RENEWING MEMBERS TIERED MEMBERS

NEW MEMBERS

Integrity Financial

1001 S. Main Street Ste 49

Kalispell, MT 59901

406-209-9935

P.O. Box 1730Helena, MT 59624-1730

Presort StandardUS Postage

PAIDHelena, MT 59601

Permit No. 68

Do you have an opinion on healthcare in Montana?

We want to hear from you! The November issue of the Eye on Business will focus on healthcare in Montana. Is there an aspect of healthcare you would like to shed light on? Is your local clinic or hospital doing something innovative to address local needs? Do you have a photo that says a thousand words about healthcare in Montana? Let me know! We want to include more member opinions and articles in upcoming issues of the Eye on Business. Contact me with ideas, news tips, and photos at [email protected] or (888) 442-6668 ext. 104.

Compete Smart 2016 October 5-7 • Fairmont Hot Springs

Manufacturing DayOctober 7

Fall MACE ConferenceOctober 10-11 • Bozeman

Montana Chamber Annual MeetingOctober 27 • Billings

Montana Goes to CubaNovember 5-12

Small Business SaturdayNovember 26

Healthcare ForumNovember 29-30 • Billings

2017 Business Days at the CapitolJanuary 2-3 • Helena

Montana Goes to China April 29 • May 9, 2017

M I S S I O NTo create and sustain an optimal business climate, business prosperity, and a strong Montana economy, the Montana Chamber of Commerce, through advocacy, education, and collaboration, works to provide an empowered and educated workforce, reduce business growth obstacles, and advance positions that promote success for Montana businesses.

eye on October 2016 - Montana Chamber of Commerce...KLJ Engineering, Bozeman ... nomic developers. However, when the Chamber heard that businesses were struggling in Cut Bank due to

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