Montana business data shows openings still outpacing closures

MONTANA — Empty storefronts can stand out in downtowns across the state, but business leaders said they did not show the full picture.

State labor data showed more Montana businesses were still opening than closing, even as some owners faced pressure from rising costs and staffing problems.

According to the Montana Department of Labor and Industry, Montana ranked 16th in the nation for five-year business survival. The department reported more than half of businesses were still operating five years after opening.

The state’s labor commissioner said that broader picture had stayed steady.

“Overall, Montana’s business climate remains really steady. More businesses are opening than closing every single year and our businesses have a higher-than-average long-term survival rate compared to businesses in other states,” Sarah Swanson said.

Swanson also explained that many businesses were still reporting trouble finding workers and keeping them.

In Missoula, downtown business leaders said that statewide numbers did not erase the strain some business owners were feeling.

“It has been a challenging couple of years. Frankly, it’s been challenging since Covid. And you know, I think we still have some folks that are still trying to recover from that. On a national level, people are eating out less, they’re spending less, they’re consuming less. Businesses have seen massive increases in things like their mortgage or their rent, of course insurance, labor, cost of goods. So the cost of everything has increased dramatically, which makes those margins a little bit thinner,” Linda McCarthy said.

McCarthy, executive director of the Downtown Missoula Partnership, said downtown Missoula was still seeing more openings than closings. She said the challenge ahead was helping local businesses manage rising costs while continuing to grow with the community.