1. Natural Resources, Transportation and Economic Prosperity www.tobiasmadden.com

2. Outline Economic outlook Affect on Region/Sectors: – Agriculture – Mining/Energy – Transportation Q & A

3. World Economy Continues to Grow Source: The Economist

4. 2015 Country Outlook Source: IMF

5. U.S. economy is in a long expansion

6. Slow Growth is Expected in U.S. Source: Minneapolis Fed

7. Inflation Below Target Source: Minneapolis Fed

8. Unemployment Rate Steady Source: Minneapolis Fed

9. Optimism is High Source: Minneapolis Fed

10. Key Takeaway: Economy Should Grow, But… Risks! -Fiscal/ Monetary issues -Europe -China -Agriculture -Unlucky -Others?

11. GDP Varies by State

12. Source: U.S. Bureau of Economic Analysis

15. Source: Minneapolis Fed

16. Source: U.S. Bureau of Economic Analysis

17. Ag harvests are key 2015 Corn and Soybean yields up, Wheat harvest down Spills over into: – Energy – Transportation – Manufacturing – Wholesale/retail

18. Region is Interdependent “Roughly 20% of the cost of producing grain comes from oil” “From 2000 to 2011, America went from using 6% of its corn crop (the world’s biggest) to make ethanol, to 40%” Source: Economist

19. Source: U.S. Bureau of Economic Analysis

21. Source: Minneapolis Fed

22. Mining: Boom Bust cycles BUSTS: Continental Mine closes in in 1983, reopens in 1986, closes in 2000, reopens in 2003 BOOM: Profit sharing was huge boom to Butte economy in mid 2000’s

23. Source: Yahoo Finance

24. Source: U.S. Bureau of Economic Analysis

25. Transportation Rail bottlenecks  Increased Cap Ex Truck Driver shortage Bridge, road and lock infrastructure problems Leads to (in)effeciencies down the value chain.

26. Many industries depend on natural resources and transportation Utilities Manufacturing Trade Impact is on 27 percent of GDP

27. Questions? toby@powerparametrics.com tobiasmadden.com clubfedbook.com @TobyCMadden @clubfedbook