Commerce and Tech Hub Funding Helps Put STEM Graduates to Work
“The work happening right here in Montana connects to some of the most advanced technologies in the world.”
That’s what one Montana State University senior had to say after her student organization, the NanoCats, toured the VACOM facility in Lewiston in April. The German company VACOM, which opened its Lewiston location in 2024, is a global leader in vacuum technology and precision measurement systems – and they’re hiring.
Rea Joshi, an electrical engineering student at MSU and a lab research assistant at the on-campus Montana Microfabrication Facility, helped found the NanoCats in 2023. Joshi wanted to connect students interested in the semiconductor industry with companies looking for talent. “The engineers graduating from MSU consistently deliver high-quality work that’s earned respect from leading companies like Micron, Applied Materials, Tokyo Electron, Texas Instruments and Los Alamos National Labs,” Joshi said. “These organizations actively seek out MSU talent because they know our students bring not only strong skills but genuine enthusiasm and dedication.”
Even with career opportunities from New Mexico to Tokyo, Joshi said a lot of her peers want to stay in Montana. Unfortunately, wanting to stay may not be enough to keep some STEM graduates, especially engineers, in the state. “The cost of living in places like Bozeman has increased in recent years, and starting salaries don’t always reflect that shift,” Joshi said.
Eric Meredith, developer and business intelligence manager with the Montana University System, echoed that concern, which is backed up by the data. “When you look at engineering, you can actually look at the big difference in salaries for students that get a job in Montana and students that go outside of Montana. In some of the majors and programs, you don’t see that huge difference. Usually those are the programs where more of the students are staying here.”
However, Meredith sees people in these fields returning to Montana because the cost of living here is actually lower. Both Meredith and his brother, an engineer, returned to Montana after seeking higher-paying jobs out of state. He said students just out of college might not realize how much more it costs to live elsewhere when they consider an out-of-state job with a six-figure salary.
Purchasing power is a more accurate measure of a state's economic standing than just focusing on the cost of living or average income alone. When considering Montana's median household income adjusted for the cost of living, a study of household income adjusted for regional price from the Gardner Institute found Montana ranked 26th nationally among states and the District of Columbia in 2023.
And the difference in the cost of living from Montana community to community is considerable. The Tax Foundation 2024 map shows Great Falls and Billings ranking among the most affordable of the metropolitan areas in the nation.
“While there is a bit of a bottleneck in terms of career opportunities, the bigger issue tends to be salary versus cost of living. Even when students land jobs in Montana, the compensation often isn’t competitive enough to make staying here financially sustainable,” Joshi said.
With more companies expanding into Montana and rising entrepreneurial activity, there’s a lot of potential for growth. As tech companies flourish and more positions for STEM graduates become available, salaries are becoming more competitive. Average Montana personal income grew 48% between 2013 and 2023. Montana is embracing its potential as a tech hub and business magnet. Companies like VACOM have expanded or moved here because the state offers enticing incentives, there’s plenty of room to grow and the workforce is exceptionally well educated and hard-working. That’s what Bozeman-based nonprofit Montana Photonics and Quantum Alliance calls “The Montana Advantage,” placing Montana on the frontier of technology.
“If employers are to be successful in their future workforce recruitment plans, the fact that we have a group like the NanoCats demonstrates that Montana has moved into the world of high-tech innovation,” said Frederick Van Den Abbeel, senior business attraction advisor at the Montana Department of Commerce. “Given our high concentration of STEM talent in Montana, the NanoCats provides a great example of the quality of our educational institutions and our people to push the needle and embrace next generation technologies.”
With former President Joe Biden’s signature on the CHIPS and Science Act on Aug. 9, 2022, Montana began carving out its place as a tech hub. On Oct. 23, 2023, the U.S. Department of Commerce’s Economic Development Administration designated Headwaters Hub, led by Accelerate MT, one of 31 tech hubs authorized by the CHIPS and Science Act. Less than a year later, Headwaters Hub was awarded $41 million and is one of only 12 tech hubs to share $504 million in implementation funding. Now formally designated a Regional Technology and Innovation Hub, Headwaters Hub is developing smart photonic sensing systems with applications in defense, resource management and disaster prevention.
Montana offers a robust ecosystem of support for businesses, including job training subsidies, job creation tax credits and a wide array of learning opportunities – from apprenticeship and training programs to comprehensive college degree programs. This comprehensive support system provides compelling reasons for businesses to consider starting up, expanding or relocating to Montana.
Montana continues to give businesses, including tech companies, plenty of reasons to put down roots here. With tax breaks like the business equipment exemption, no state sales tax, and no gross receipts or state inventory taxes, Montana offers job training subsidies and job creation tax credits so businesses will start up, expand and relocate here.
Joshi said, “Montana is incredibly welcoming to companies in photonics, optics, quantum tech and semiconductor manufacturing. Organizations like the Optics and Photonics Society and the Montana Photonics and Quantum Alliance foster a strong, supportive community that helps integrate these companies into the local ecosystem. Another big draw is the quality of students graduating from MSU. The university has a solid reputation for producing skilled engineers, which provides companies with a talented, ready workforce. This combination of lifestyle, community support and talent makes Montana a unique and appealing place for these industries to grow.”
Montana has the talent and is open for business. When asked what she’d say to a business thinking about coming to Montana, Joshi replied, “Montana is becoming a launchpad for innovation, a place where the next generation of technology leaders is being forged. If you want to be part of a bold new chapter in tech, Montana State is the epicenter and it’s waiting for you.”
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