The majority of Wyoming’s economy has been driven by natural resource extraction for decades. Now, as those staple industries suffer deep impacts from increased regulation and lower commodity prices, Wyoming’s economy is set to be impacted, but how deeply is something that remains to be seen according to Tom Johnson, Chief Performance Officer for the Wyoming Business Council.
“My guess is you’re going to see some contraction in the oil and gas services,” Johnson said. “I think it will be more of a pause.”
While the impacts on the extraction industries remain to be seen in coming months, increases in other sectors are having a positive impact on the state as well. After recording another stellar year for tourism, expectation this year is that tourism will remain steady and may even increase with lower gas prices.
“Tourism is a mainstay of Wyoming’s economy,” Johnson said. “Tourism is one of those industries that is not nearly as cyclical. It’s an interesting dichotomy and we hope for a balance.”
Growth in the technology sector is also helping Wyoming to diversify its economy away from its reliance on natural resource extraction. Expansion of Microsoft in Cheyenne and several other technology-based businesses around the state are helping to lead that growth.
“The governor is working to make technology a bigger part of our economy,” Johnson said. “You see a slow turn to diversify our economy.”
As the state heads into mid-2015, many factors are impacting economics around the state. And while some areas are anxiously awaiting oil prices to move forward, other areas of the state are concentrating on projects at hand. Here’s a look at what’s going on around the state:
Northeast
Reliant on energy production, northeast Wyoming is not exempt from market fluctuations, and there are some signs of a slowdown creeping in, said Dave Spencer, northeast region representative for the Wyoming Business Council.
“I wouldn’t say we’re in a downturn yet, but we may be headed in that direction,” Spencer said. “It’s pretty much a flat situation, but a few months ago we were in a growth mode.”
While it remains to be seen how long the oil price stays low and how deep the impacts will be, Spencer said there is steady commercial and retail growth throughout the region. Both Gillette and Sheridan have seen growth in both sectors with the addition of Tractor Supply in both communities, as well as other projects.
“Companies are expanding and looking for new markets,” Spencer said. “There are smaller commercial projects, especially in Gillette.”
Gillette recently wrapped up its $7.4 million downtown restoration project that included replacement of waterlines, repaving of Gillette Avenue and several beautification projects. And construction continues on the Gillette Regional Water Supply Project. The project is projected to be complete by 2016 and will bring increased water supply to Gillette and the surrounding areas.
“There are a lot of projects proceeding,” Spencer said. “It’s a long-term growth pattern in the community.”
Gillette is also updating its city hall building that will revamp the Gillette Police Department and upgrade the city council chambers. The $2.7 million project began in November and is scheduled to be complete sometime next year. And the colleges in both Sheridan and Gillette are working on large capital construction projects.
“Our Gillette campus will be breaking ground this spring on a 50,000-square-foot education and activities center, and part of that project will include a new simulation center to support our growing nursing program,” said Wendy Smith, marketing director for the Northeast Wyoming Community College District. “On the Sheridan College side, we are breaking ground this spring on our new Mars Agriculture Center, and part of that building includes an actual commodities trading floor classroom.”
Gillette College is also looking at adding student housing in the near future.
Southwest
Kemmerer plans to develop water infrastructure to the Cumberland Rail Spur. In March the Wyoming Business Council recommended funding through a Community Readiness grant for more than $1.9 million project to the State Land and Investment Board.
“There’s industrial development potential around that spur,” said Elaina Zempel, southwest region representative for the Wyoming Business Council. “It would make that property more marketable.”
Throughout the region there are also several projects under way. The Rock Springs Chamber of Commerce is also wrapping up construction on a $1.1 million expansion of its facility that will add public restrooms, meeting facilities and other community space. While in Evanston, construction on phase I of the Bear Meadows Site Development Project is set to begin this spring. The $750,000 first phase of the three-phase project will ultimately include the addition of a splash park and amphitheater.
In late April, The Church of Jesus Christ of Latter-day Saints will break ground on its new Temple in Afton.
“We’re very excited,” said Hyun Kim, administrator for the Town of Afton. “It’s a fantastic opportunity for our community. They don’t build temples in small communities like ours.”
The community is adding hotels and restaurants in preparation for the expected increase in the number of people visiting the temple. The community is already undertaking a number of road work projects in preparation and new hotels are building to be ready for the influx.
Southeast
Cheyenne’s economy is continuing to expand with several new businesses and industries. Magpul is a gun manufacturing corporation that quickly left Colorado after that state passed legislation that limits the sale of firearm accessories. The company recently opened its new manufacturing and distribution center in Cheyenne and is adding workforce to meet its growth plans.
With the relocation of Magpul, Cheyenne’s manufacturing scene is getting reexamined. Located on two interstate corridors, the city allows for easy shipping.
“We’ve seen an increased interest from the manufacturing sector,” said Randy Bruns, executive director of Cheyenne LEADS.
While the manufacturing sector looks poised for growth, the technology sector is rapidly expanding with Microsoft’s planned expansion. That expansion comes from a decade-long process to recruit data centers and technology-based industries to the community.
“Ten to 11 years ago at Cheyenne Leads we specifically looked at data centers,” Bruns said. “It takes a long time when you start focusing on something before you see results. It was our estimate that the demand for data would explode.”
That booming sector has had a positive impact on the Cheyenne region with the addition of Microsoft, NCAR Wyoming Supercomputing Center, EchoStar and Green House Data.
“Microsoft continues their expansion and that’s good news for us,” Bruns said. “Everything is busy at this point.”
West Central
With construction almost complete on the new Wind River Job Corps Center, the federal government is in the process of hiring an operator to oversee day-to-day operations at the facility. That $35 million project will accommodate about 300 students at the facility and add approximately 150 jobs to the region.
The Wind River Reservation’s two Native American tribes are also working on expansions at their independently owned casings.
The Eastern Shoshone Tribe is expanding its Shoshone Rose Casino north of Lander. The Shoshone Rose will expand to 165,000 square feet and include a hotel, convention center, three restaurants and an indoor water park. Construction on the new facility will begin this spring and be finished by 2016.
Expansion is also underway at the Northern Arapahoe Tribe’s Wind River Casino outside of Riverton. The expansion will include a convention center with break-out rooms and additional kitchen space.
In the Jackson area, construction is starting on a vertical garden created by Vertical Harvest. The three-story indoor vertical garden will allow for more than 12,000 square feet of growing space.
“The vertical greenhouse is starting to come out of the ground now,” said Roger Bower, west central regional representative for the Wyoming Business Council.
Jackson also recently completed construction on a new bus barn for the community’s public transportation system – Southern Teton Area Rapid Transit, or START. The new $15 million, 42,000-square-foot facility will allow for buses to be parked inside, extending the life of the START fleet. The first phase also includes a bus wash and administrative offices for START. A second phase is planned to add 75,000 square feet to the building.
“It’s a pretty flashy building,” Bower said.
The Jackson community also has a large residential housing unit under construction to help accommodate workers in the community who have challenges finding affordable housing. The Grove includes 68 affordable housing units and about 6,000 square feet of commercial space.
Northwest
Construction is wrapping up on an expansion of Cody Laboratories pharmacy labs. The $3.7 million project has already added 45 jobs to the community. In addition, FedEx has started building a 28,000-square-foot facility. It will serve as a regional distribution hub for FedEx’s ground service.
The Cody community is also seeing the arrival of new businesses and the expansion of existing businesses.
“There’s a lot of real estate activity,” said James Klessens, director of Forward Cody. “We’re seeing a lot more interest in large-scale retail and that’s typically an indication of more money flowing into the economy.”
While those signs are positive, Klessens said downtown Cody seems to be suffering with the closure of a few businesses this winter.
“Every year we have vacancies on Main Street, they just seem a little more prevalent this year,” Klessens said.
While Klessens said he’s unsure what’s driving the difficulties in the downtown area, other areas are booming. West Park Hospital is wrapping up construction on its “Bridge to the Future” that connects the hospital’s old and new facilities.
“It’s interesting how the dynamic is changing in our community,” Klessens said. “It’s not just one thing, it’s an amalgamation of many things. Everything tells me there’s more discretionary dollars flowing through the community.”
East Central
The East Central region remains busy with expansion of two high schools in Casper and retail and residential growth in the community on both ends of town. Natrona County also recently requested roughly $2.5 million from the Wyoming Business Council to add a 10,000-square-foot hangar and 2,000-square-foot office space at the Casper/Natrona County International Airport. The added space would allow the community to recruit aeronautical service providers.
Although Converse County is starting to feel the impacts of the slowdown in the oil industry, several community projects are still underway. Glenrock’s $7 million library expansion will be complete this summer, while Douglas will begin work on its $16.5 million library this month. Also, funded by the one-cent sales tax, the Eastern Wyoming Community College branch recently opened to students.
“The voters of Converse County said let’s invest in some long-term capital projects,” said Jim Willox, Converse County commissioner. “Our one-cent is ahead of projections. We’re close to taking in $1 million a month. We will be paying those projects off earlier than projected.”
New recreation centers in Glenrock and Douglas will also go before the voters in May. The Douglas facility will include a pool, indoor walking track, multi-purpose courts, wave rider, bouldering wall, racquet ball courts and other features, while the Glenrock facility will include expansions of the community’s existing recreation center.
“The community has been engaged and they see a need for some additional recreation options,” Willox said.
Planning is also underway for a new justice center for Converse County. The center would consolidate the county’s three dispatch centers and expand the jail facility in that community which is currently outdated and over capacity.
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