Ease of doing business
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters - F500 Cos Representation | Trade Surplus or Deficit | GDP | Agriculture | Innovation | Manufacturing | Employment | Tax | Cost of Living | Disposable Income and Education.
Population | % of overall Population | US Overall |
|---|---|---|
1,137,233 | 0.3% | 340,110,988 |
National Ranking Index
Montana - SWOT Analysis for Global Trade & Business (October 2025)
Category | Strengths (S) | Weaknesses (W) | Opportunities (O) | Threats (T) |
Ease of Doing Business | Tax Competitiveness:Â Ranks highly in the national State Tax Competitiveness Index (e.g., 5th overall in a recent index). Entrepreneurial Spirit:Â High rate of new business formation and ranks high nationally for self-employment. | Low City Ranking:Â Major city (e.g., Billings) has a relatively low ranking in city-specific "Ease of Doing Business" metrics compared to top-tier US cities. | Attracting In-Migration:Â Leverage strong wage growth and high quality of life to continue attracting a net inflow of educated workers and entrepreneurs. | Labor Market Tightness:Â Record-low unemployment and strong wage growth, while positive, can lead to labor shortages and rising costs for businesses. |
Domestic Manufacturing | Key Niche Sectors:Â Strong manufacturing presence in Chemicals, Machinery, and Transportation Equipment. SME Export Base:Â Small and Medium-sized Enterprises (SMEs) are a crucial part of the export base, showing a diversified company structure. | Small Overall Footprint:Â Manufacturing represents a small percentage of the state's GDP (approx. 6.4%) and labor earnings compared to other industries like Healthcare and Professional Services. | Value-Added Processing:Â Opportunity to increase local value-added processing of its own resource-based exports (e.g., metals, ores, timber) instead of exporting raw materials. | Volatility in Resource-Based Industries:Â The resource-based industries, which feed manufacturing (e.g., mining, oil, gas, and farm), are highly volatile and susceptible to price and weather-related earnings declines. |
Sustainability Initiatives | Critical Materials Focus: Actively positioning itself as a leader in the domestic production and recycling of critical materials essential for national security and the clean energy transition. Renewable Potential: Significant potential for utility-scale and community solar, wind, and energy storage development, supported by recent legislative efforts. | Regulatory Rollbacks: Recent state legislation (e.g., in 2025) has removed language that directed state agencies to prevent long-range environmental impacts and limited the consideration of greenhouse gas emissions in environmental reviews. | Federal Funding Leverage: Utilize federal funding and focus on advanced transmission technology, carbon capture, and storage to modernize its energy infrastructure. | Policy Inconsistency: The tension between leveraging traditional resource economies (oil, gas, coal) and promoting cleaner energy creates an inconsistent regulatory environment for long-term sustainable investment. |
Balance of Trade | Export Value: Annual goods and services exports total around $4 billion, with chemicals and industrial machinery as top categories. Strategic Trade Partners: Has strong, established trade ties with major markets like Canada, South Korea, and Japan. | Structural Trade Deficit: Maintains a significant negative trade balance, driven primarily by very high imports of Oil & Mineral Fuels and Industrial Machinery. | Agri-Tech & Modernization: Implement AI and data-driven solutions in the agricultural sector to optimize crop selection and resource management, increasing competitiveness in global commodity markets. | Vulnerability to Tariffs: Agricultural exports (wheat, beef, pulse crops) are particularly exposed to global trade policy shifts and retaliatory tariffs, leading to significant drops in export value. |
Overall Summary
Montana's economy exhibits a fundamental tension between its traditional resource-based identity and its emerging role in a modern, diversified economy. Its core Strength lies in its highly competitive tax environment and a thriving culture of entrepreneurship, attracting strong in-migration that fuels robust job and income growth. The state has a promising Opportunity to lead in the domestic supply chain for Critical Materials and renewable energy infrastructure.
However, a structural Weakness is its overwhelming trade deficit, primarily due to massive imports of fuel, which ties its economic stability to external energy costs. The most significant Threat is the high exposure of its key export sectors (agriculture and natural resources) to global trade wars and volatile commodity markets. For Montana to achieve sustainable, long-term growth, it must successfully manage this energy import cost while translating its strong entrepreneurial spirit and resource-based expertise into higher value-added, tech-driven manufacturing and processing.
2 Balance of Trade
The map represents Trade Surplus / Deficit in Millions USD of each State in YTD 2025
In Millions USD - 2025 YTD
Imports in Millions USD | US Imports 2025 YTD | % of US Imports |
|---|---|---|
$2,266 | $1,224,182 | 0.19% |
9 Education
The map represents Education Rankings for each State