Due to its relative affordability and proximity to many outdoor recreation activities, Montrose is known as a manufacturing hub for outdoor products. Fly-fishing companies Ross Reels, Abel, and Airflo are headquartered in the city. Additionally, Scott Fly Rods relocated to Montrose from Telluride in 1993. Gordon Composites, maker of nearly 90 percent of the high-performance laminate material used in the bow-hunting industry, is located in Montrose. Secret Creek, formerly known as Colorado Yurt Company, maker of handcrafted yurts, tipis, and rugged canvas wall tents, is also located in Montrose. In November 2017, the City approved a $10 million fund for public infrastructure improvements within the Colorado Outdoors development, and was the recipient of a $2 million grant for a new trail system. The GOCO grant was the largest single grant awarded to the City of Montrose in its history, and connects the newly built, $30 million Montrose Recreation Center to the project, safely under-passing both major highways within the city.
Russell Stover Candies closed its Montrose plant in the spring of 2021, eliminating 400 jobs and offering employees to relocate to plants in Kansas and Texas. The plant was listed as a "primary employer" for the city on its Economic Development Corporation website. The former plant building was sold in 2024, but is still vacant as of March 2025. In October 2020, the City of Montrose announced a multi-year, multi-million dollar river restoration project along the
Uncompahgre River, including a $785,000 grant from the
Colorado Water Conservation Board. In 2024, both Shelter Distilling and restaurant Toasty opened after receiving economic incentives from the city. ==Parks and recreation==