When we think about domestic industries, we tend to think of large appliances and durable goods like capital equipment, automobiles, and computers. However, one fast-growing market in the United States that is spurring domestic industry is knives. From kitchenware to folding blade multitools to collectibles, knives are big business. One American company capitalizing on this growth is the Montana Knife Company, which is embarking on an $18 million expansion in Missoula, Montana.
The company is planning a 50,000-square-foot manufacturing center where guests can observe the knife-making process. Over the next few years, the expansion is expected to add about 100 jobs to the company, ultimately reaching about 200 jobs when the new manufacturing center is complete and fully running. In a small city like Missoula, population just under 80,000, this is a significant employment market boost! The expansion is also bringing in some federal dollars, with the $18 million expansion partially funded by a $1.5 million grant from Montana’s allocation of the State Small Business Credit Initiative (SSBCI). Over the last few years, Montana has been especially active in administering these grants.
Missoula, Montana Also Benefits From Tourism Industry
Montana’s active use of SSBCI grant dollars is likely linked to its growing status as a popular tourist destination. Many Americans – and foreign tourists – visit the state each year to see its rugged and beautiful nature. Glacier National Park and Yellowstone National Park are the two biggest draws. Visitors to the state often flock to Missoula as one of its most popular tourist towns, which mixes outdoor adventure access with the comfort and luxury expected by urban travelers.
A locally-made knife from Missoula will almost certainly be a popular draw for domestic tourists, as well as students and families affiliated with the state’s largest university, the University of Montana (UMT), which is based in the city. UMT students studying various types of engineering or metals manufacturing would also be well-positioned to work as part-time employees at the Montana Knife Company expansion or seek internships there. For those willing to drive a bit, metallurgy students at Montana Tech in nearby Butte, Montana would also be well-positioned for employment or internships during the summer months.
Growing Demand for Knives May Help Domestic Steel Industry
Montana’s scenic views and the presence of UMT in Missoula will help drive demand for the company’s knives, which could become self-sustaining as out-of-state tourists show them off to friends back home and encourage them to get their own. This will increase demand for steel, which is a critical component in knives of all kinds. American knife manufacturers, which include individual hobbyists, get their steel from both domestic and foreign sources. Ideally, any expansion in demand for domestic knives, such as those made by the Montana Knife Company, will result in increased steel purchases from domestic steelmakers.
When American knife companies want to expand, their eligibility for federal grants will require that they use domestic steel under the guidelines of the Build America, Buy America Act of 2021. For the Montana Knife Company, which uses only domestically-made materials, this is an easy requirement to meet!
Image credit: Montana Knife Company
