TWO LINES OF GROWTH 



13 



A Forecast 

 of Industrial 

 Development 



There is every roa.soii to bL>lii'\e that Montana's weallli of basic industrial 

 materials combined with its vast fuel and power resources and the growing im- 

 portance of the western and oriental markets will bring manufacturing here. 

 According to experts, the prairie lignite of eastern Montana, if made into producer 

 gas and the energy is then changed into electricity, is equal in energy value at 

 $5.00 a ton to Pittsburgh bituminous coal at $10.20 a ton. 



The emergence of industry in iloutaua from the extractive to the manufactur- 

 ing stage, however, will not be a sudden transition but a slow growth along two 

 lines. One will be a more complete fabrication for sale in west- 

 ern and oriental markets of the raw materials now produced in 

 large quantity. The other will be a development of industries, 

 utilizing resources of Montana, that in the beginning at least 

 will primarily manufacture tools and appliances required by the 

 extractive and other industries already established. The copper, rod and wire 

 mill at Great Falls is an instance of the industrial transition along the first line ; 

 the manufacture of some mining machinery, such as hoists and ore cars in the 

 mining districts, and the assembling and partial fabrication of oil-drilling equip- 

 ment by machine shops in the oil fields, are instances of the second line of 

 development to be anticipated. In other words, the development will be in 

 accord with the axiom that nearness to market is the most important of loca- 

 tion considerations to the largest number of manufacturing enterprises. 



There are some real opportunities for new manufacturing plants in Montana 

 to supply the needs of the present available mai'kets. Looking at the matter from 

 the angle of the needs of extractive industries already established and the possi- 

 bility of filling these needs with products made out of Montana resources, the 

 prediction would appear justified that the next step forward in this state will 

 be the establishment of iron and steel mills, and then of paper mills. 



The coal, metal mines and smelters use large quantities of iron and steel prod- 

 ucts. The northwestern oil fields are big users of pipe and steel tanks. The 

 building and other miscellaneous industries are users of iron and steel products. 

 The farms of the northwest require barb and woven wire fencing. Establish- 

 ment of iron and steel works in the state would make possible the establishment of 

 many specialized plants serving markets now available for such products as gas 

 engines for farm use, wind mills, pumps, certain kinds of farm machinery, tin 

 cans for the northwestern and iutermountain canneries, and a large variety of 

 pressed metal goods — Ituckets, cups, dishes and novelty goods, hardware of various 

 sorts and speciality goods. 



Oil Refining the Newest Industry 



