How Montana’s Tech Sector is Responding to COVID-19
January and February were great months for the Alliance and Montana’s high-tech industry. We traveled to 7 cities with UM BBER’s Montana Economic Outlook Tour and shared our positive predictions for high-tech and startups in 2020, which have been on a steep growth curve for the past six years.
BBER had just completed our 2020 survey analysis in late February. The report showed that in 2019, Montana’s high-tech industry represented a record $2.5 billion in revenue, was growing 9 times the overall Montana economy, paying twice the median wage, and hungry for talent. We were drafting our press release to share this big news.
MHTBA hosted 7 tech meetups the night before the Outlook Seminars, many sponsored by generous members like the Montana Chamber of Commerce (Helena), onX maps (Missoula), Cushing Terrell (Bozeman), and Applied Materials (Kalispell). We loved sharing a beer and catching up with our members across Montana, not knowing how quickly that door would close.
On February 25, Rocky Mountain Bank hosted 100+ tech leaders at MHTBA’s Mardi Gras-themed Bozeman reception. At that point, no cases of COVID- 19 had been announced in Montana. On March 13, everything changed.
From Record Growth to Unprecedented Uncertainty
President Trump declared a national emergency, U.M. BBER moved the remaining three events of the Outlook Tour online (see the slides and a video of the Bozeman event here), and the Alliance canceled our meetups planned in Havre, Lewistown, and Big Sky. Giving the last three Outlook presentations via Zoom, I realized our data had become obsolete – the economic landscape had shifted overnight.
We started calling member companies, especially our biggest tech employers, to see what they are facing. More than one exec who had managed through previous downturns like the dot-com bubble in 2000 and the 2008 recession said this time felt different. Instead of unfolding gradually, it “came like a brick wall in one week.”
We’ve interviewed about a dozen tech leaders in the past few weeks and will continue to reach out. Some quick notes from our conversations:
Some tech companies are doing okay, especially larger firms with big cash reserves, businesses whose customers are stable – like Fortune 500 companies, or those whose products happen to serve a current need like IT services, medical supplies, or critical infrastructure.
Other tech companies, especially those who serve industries that have shut down like service businesses, tourism, and hospitality, have seen a drastic fall in revenue and are struggling with cash flow and being forced to lay off employees.
Businesses that are stable are seeking out ways to serve their communities, whether it’s volunteering to manufacture face shields for Montana hospitals or accelerating company donations to the local food bank.
Some very early-stage startups that were already bootstrapping and running lean or pre-revenue/relying on venture capital are surviving okay.
Many tech leaders are looking for federal support through the CARES Act to help them get through the crisis and eagerly awaiting information about the pending programs.
The shift to working from home has been easier than expected for many tech companies. Working in the cloud and working remotely were already commonplace. Managers are focused on communicating effectively and keeping everyone mentally and physically healthy.
One of the most difficult aspects of this crisis is the uncertainty – the inability to predict when the shutdown will end and plan for the future. Businesses are hungry for information to help them make decisions and eager to learn what their peers are doing.
What’s Ahead – Virtual Events and Of-the-minute Reporting from MHTBA
Stay tuned in the coming weeks for more detailed, reported articles from the Alliance. A deep dive into our interviews with tech CEOs. A look at how new college grads and job seekers are faring, and tips for how they can navigate this job market. And we’re checking in with long-time remote workers to get their advice on how to maintain productivity and stay connected while at home.
Our new Communications Director, Martina Pansze, started on March 23. I joined a number of you in the experience of handing a new employee a laptop on her first day and then sending her home to work. Martina is doing a great job – the newsletter is evidence of her skilled handiwork.
MHTBA is hosting a weekly webinar series throughout April and May with resources to help our members deal with the impacts of COVID- 19. All webinars are free and open to the public. Check out our first few events below and stay tuned for additional offerings in the coming weeks. Recordings will also be available.
Please feel free to email me at director@mthightech.org or call 406-552-9157 – we are here to help.
About the Publisher: Launched in 2014, the Montana High Tech Business Alliance is an association of more than 230 high tech and manufacturing companies and affiliates creating high-paying jobs in Montana. For more information visit MTHighTech.org.
