BNSF begins hiring in Montana
Big Mountain can be seen behind a BNSF train as it sits on the tracks in Whitefish. (Whitefish Pilot file photo)
After a two-year period without hiring in the Flathead Valley, BNSF Railway now has positions available.
BNSF is a major supplier of jobs in the valley, with 345 local employees. The company is now hiring for 45 different positions around Montana, including Glendive, Great Falls and Whitefish.
Ross Lane, director of public affairs for BNSF in Montana and Wyoming, stated that 345 employees has been the average over the past few years, however, due to decreasing demand the company was unable to hire in the last two years.
“We match our transportation to what our customers are demanding,” Lane said. “As people spend more, you’ll definitely see BNSF needed more.”
According to Lane, the demand for new positions is in part due to increasing grain production in addition to upcoming maintenance to the Hi-Line corridor planned to take place throughout this year.
BNSF last month announced its capital expenditure plan for the year to be approximately $3.4 billion, with $2.4 billion going toward “replacing and maintaining BNSF’s core network and related assets.”
Of the 28 states in which BNSF operates, Montana is one of eight states that will be receiving the bulk of the funds for maintenance. With a total of $100 million going to new tracks, resurfacing and other projects, Lane said, adding that ongoing maintenance for the year will require increased traffic and as such, the majority of the positions now available are for conductors.
BNSF is a major shipper of consumer products, coal, industrial products and agricultural products. About 950,000 carloads of agricultural commodities were shipped last year, which the company states is “enough grain to supply 90 million people with a year’s supply of bread.”
Despite a dip last year in coal production, coal still accounts for the bulk of the company’s shipments. Last year BNSF hauled 1.8 million shipments of coal, or “enough coal to power one of every 10 homes in the nation.”
Berkshire Hathaway Inc. released its annual report yesterday, which notes that 2016 net earnings for BNSF, a subsidiary of Berkshire Hathaway, were down, falling to $3.8 billion from $4.2 billion the year before. Revenues in 2015 were $21.9 billion, compared to $19.8 billion last year.
In his annual letter to shareholders of Berkshire Hathaway, CEO Warren Buffett noted the declining demand in coal and crude oil.
“Coal had the largest decline, driven by structural changes in that business as well as competition from low natural gas prices,” Buffett wrote. “While natural gas prices and the amount of electricity burn will affect the demand for coal in 2017, our long-term demand outlook for U.S. and global coal consumption is lower.”
Buffett noted that coal freight revenues decreased by 26.9 percent in 2016, and that freight revenues from industrial products also declined, dropping by 14.2 percent to $4.8 billion in 2016.
“The decrease reflects lower volumes, primarily for petroleum products, reflecting pipeline displacement of U.S. crude rail traffic and lower U.S. oil production. We expect low oil production and pipeline displacement will continue to negatively impact the demand for crude oil shipments in 2017,” Buffett said in his letter.
Last year was difficult for BNSF and the rail industry as a whole due to a decline in coal traffic, Lane said, which affected the company’s need for new employees.
Compensation and benefits decreased by 5.4 percent, or $274 million, last year according to the annual report.
One bright spot, agriculture product volume increased by 6.3 percent in 2016, though the revenue remained roughly the same at $4.2 billion. The increase in agricultural production was primarily due to higher corn, soybean and wheat exports, the report stated.
As the largest hauler of grain in the U.S., BNSF saw an increase in grain shipments in 2016, which was a record year for soybean exports, Lane said, adding that a continued increase in agricultural shipments has helped to stimulate job growth.
Lane describes BNSF as “tough minded optimists,” and states that the company is “well positioned for growth” for the year.