Missoula economic leaders warn housing shortage is throttling manufacturing growth

Grant Kier, president and CEO of the Missoula Economic Partnership, told the chamber that Missoula’s economy remains "resilient" but faces structural challenges that threaten manufacturing and local wood‑products jobs.

Kier said the region has been "absolutely flat" in manufacturing employment overall and estimated the loss of nearly 450 jobs over the past three years (about 300 full‑time and 100–150 part‑time or temporary positions). He described the economics: transporting logs and turning residuals into products is substantially more expensive in western Montana than in competing regions. "If we're going to invest $120 to $140 million to put a large mill into a community, we'd be better off making that investment in the Southeast or in Canada," he said, noting subsidies and different cost structures elsewhere.

Kier argued housing affordability and the availability of workforce housing are immediate constraints for business growth. He relayed a manufacturer’s comment: "What keeps me awake at night right now is whether or not all these people who want to work for me in Montana ... can afford a house." Kier described several housing projects he said are part of the local strategy: Midtown Commons (about 250 homes), Franklin Crossing (roughly 225 units, including about 192 income‑restricted apartments targeting 30–70% of area median income and 33 market‑rate townhomes) and other infill and community land‑trust developments.

Kier emphasized multi‑sector collaboration — banks, nonprofits, local and state governments and private developers — and cited recent state support: Franklin Crossing scored highly with the Montana Board of Housing and benefited from newly created tools including a 2025 legislative program that provided low‑interest loans aimed at catalyzing such projects.

Why it matters: Kier tied workforce and housing supply directly to Missoula’s ability to retain and attract employers, particularly mid‑wage manufacturing jobs. Loss of local mills also affects forest management and wildfire resilience, he said.

What’s next: Kier asked business and civic leaders to support code reform, layered financing and targeted projects designed to increase housing inventory at price points aimed at workers. "We only have two options right now as a town. We can either build more housing ... or we can say no to change and development," he said.