Title: Regional Planning in Central Minnesota
1Regional Planning in Central Minnesota
- Cameron Macht
- Regional Analyst, Central MN
- Dept. of Employment and Economic Development
- www.deed.state.mn.us/lmi/
- 320-231-5174 ext. 7535
- cameron.macht_at_state.mn.us
2Presentation Agenda
- Regional profiling in Central MN
- Changing Demographics
- Changing Labor Force
- Changing Economy
- Conclusions and Questions
3Why Does Regional Matter?
- Despite the intricacies of each countys
workforce and economy, there are more
similarities than differences
- We are in a global competition for good jobs and
good workers including our own youth!
- Businesses and people make decisions on where to
locate based on the image and reputationof the
region
- Central Minnesota is at a turning point
- Competing on low-cost, low-wage production
- Rural areas, but also other countries
- Competing on high skills that can support higher
wages
4Opportunities For Success
- There is no guarantee that Central Minnesota will
be a region in which advanced manufacturing or
other high-skilled industries can compete and
survive - This report presents a baseline of information
about where the region stands today
- There are strengths and weaknesses
- The challenge for Central Minnesota isto fully
embrace the notion of becoming aregion that is
focused on growingemployment in high-skill
industries - That change will require strategic thinking,
commitment, and effective leadership
5There Are No Easy Answers
- Regions and economies are giant, complex
organisms that change slowly in some ways and
quickly in others
- No single idea or answer is going to solve every
problem or maximize every strength
- Everyone should feel open and welcome to provide
ideas, comments, and feedback at any time
- Everyone needs to be able to say whatever they
want to say whenever they want to say it.
- This meeting is for brainstorming and creating
ideas the next meeting will focus on
formulating action plans and building work
groups/industry forums
6Pick the most important factors
- Low Labor Cost
- High Labor Quality
- High Labor Availability
- Access to Markets
- Access to Suppliers
- Access to Transportation
- Low Taxes
- Economic Development Incentives
- Public Services
- Industry Clusters
- Infrastructure and Utilities
- Available Buildings/Offices
- Natural Amenities
- Consumer and Cultural Amenities
- Quick, Consistent Regulation
- Non-adversarial Regulators
7Actually, theyre all important
- Depending on the needs of the individual
business, infrastructure might be the most
pressing need or access to supplies or quick,
consistent regulation - Our research on location factors has shown that
labor force is among the most important factors
will the workers with the needed skills come to
work? - Central MN has an educated,affordable, growing
workforce
- Taxes and economic devel-opment incentives serve
asa tie-breaker when other conditions have been
met
8Availability, Affordability, and Quality of Labor
Force
- Workers are less mobile than other factors of
production, making availability very important
- The availability measure that is most strongly
related to site selection is the presence of
workers in the occupations needed for particular
industries - Businesses will pay more for higher quality
workers, but would rather have equivalently
skilled workers at lower wages
- Research finds that higher wages have a stunting
effect on growth, all else being equal
- This is not surprising because labor is a large
component of operating costs for businesses
9Population is Growing Rapidly
- Region 6E has seen a steady incline 21.3
increase in population since 1960-2003
- Region 7E has seen explosive growth 121.4
increase in population since 1960-2003
- Sherburne and Wright County have seen explosive
growth 314 increase in population since
1960-2003
- Sherburne County was 2nd fastest
- Wright County was 7th fastest
- State of Minnesota increased 48.2 from 1960 to
2003
- Central Minnesota more than doubled (114.5
increase)
10Percent Population Change, 1990 to 2000
Growing Rapidly Only Renville County lost populat
ion between 1990 and 2000 Chisago 34.7 Isanti
20.7 Kanabec 17.1 Kandiyohi 6.3 McLeod
9.0 Meeker 8.6 Mille Lacs 19.6 Pine 24.8
Renville -2.9 Sherburne 53.6 Wright 31.0
Central Minnesota 9.1 from 2000-2003 State
2.8
Source 1990 2000 Census
11Positive Rate of Natural Increase
In 9 of the 11 counties, there were more births
than deaths Only Renville and Mille Lacs County h
ad more deaths than births Sherburne and Wright h
ad more than 1,000 births, Chisago and Kandiyohi
had more than 500 births Central Minnesota has
a natural rate of increase of 6 percent
The state of Minnesota has a natural rate of
increase of 6 percent Central Minnesota has larg
er average family sizes All 11 counties were larg
er than 3 people, as compared to only 4 of 14
counties in Southwest Minnesota
Chisago, Isanti, Sherburne, and Wright were the
largest
12Young Married-Couple Families
- Central Minnesota has a high percentage of young,
married-couple families
- 84.6 of all families
- State 82 U.S. 76.7
- Much higher in the younger age groups 25 to 34
years, 35 to 44 years, 45 to 54 years
- Younger, married-couples tend to have more
children
- Unlike other regions, Central MN is still seeing
growth in population under age 5
13Single Parent Families, 2000
Meeting the Need The five counties in East Centra
l Minnesota have some of the highest rates of
single parent families in the state
Could indicate demand for affordable child care,
social services, flexible work schedules, and
health benefits
14Projected Population Change, 2000 to 2030
Big Getting Bigger Twin Cities will continue to
expand north and west Regional centers and lakes
areas will also see continued growth
Chisago 69.1 Isanti 35.4 Kanabec 43.4
Kandiyohi 15.7 McLeod 19.1 Meeker
23.1 Mille Lacs 53 Pine 42.6 Renville
-2.9 Sherburne 53.6 Wright 31.0
15Projections
Central Minnesota can expect a huge 43.6 pop.
increase from 2000 to 2030 Due to births and in-m
igration Also longer life expectancies Every age
group will grow 35-39 sees the slowest growth 2
5-29 sees impressive gains 0-19 also growing quic
kly Every age group from 55 years on will grow ra
pidly 65-79 sees the biggest growth However, thi
s assumes that retirees will remain in the region
16Migration Patterns Losing Our Youth?
Net Migration, Age 30 to 44
Net Migration, Age 15 to 24
Source 1990 2000 Census
17In-migration becomes important
- Central Minnesota gained 93,960 new in-migrants
from 1995 to 2000
- One out of every four people in Central
Minnesota lived in a different county, state, or
country in 1995
- Nearly 35 in Sherburne, less than 15 in
Renville
- More than 40,000 new residents from 2000 to
2003
- Not all in-migrants, though
18Minority Populations, 2000
Central Minnesota is still 96.5 white
Only Kandiyohi (93.6), Mille Lacs (93.6), and
Pine County (94.4) are below that line
People of Hispanic origin increased the most in
Central Minnesota, with the largest populations
in Kandiyohi, Wright, Sherburne, and McLeod
Growing fastest in McLeod and Renville
Source 2000 Census
19Nonwhite populations grow faster
- Minnesotas nonwhite and Latino populations are
projected to grow substantially faster than the
white population
- By 2030, 1 in every 5Minnesotans will
beHispanic or of color
- The more rapid pop.gains are attributable to
higher rates of in-migration, higher
birthrates, and a youngerage composition
- Blacks, Asians, and Hispanics will growthe
fastest
20Housing Demands
- The regions demographic growth has led to
increasing demands on each countys housing
stock
- Eight of the 11 counties in Central Minnesota
have a newer housing stock at least based on
the median year that the structure was built
than the state - Only Renville (1951), Meeker (1963), and McLeod
County (1969) had older median dates than the
state (1969)
- Sherburne (1985), Chisago (1980), and Wright
(1978) had the newest housing stocks
- Likewise, eight of the 11 counties had a higher
percentage of total housing units built between
1999 and 2000 than the state as a whole
- Through November of 2004, both Sherburne (1,452
units) and Wright County (2,018 units) have
surpassed Carver County (1,142 units) as well as
Olmsted County the Rochester MSA which had
1,208 new units
21Why?
Access to a skilled work force remains the No. 1
priority of corporate site seekers, according to
a recent Site Selection survey of economic
development (ED) groups and service providers.
Survey Reveals New Factors Behind Site Location
Decisions by Mark Arend, Site Selection magazi
ne, May 1999
22Brainstorming about Demographics
23A Job Bust from the Baby Boom?
Labor force participation rates are increasing
for Women of all ages For females aged 16 years
and over, Labor force participation rates grew
from 62.5 in 1990 to 66.0 in 2000 (Minnesota
ranks 1 in the U.S.) Older adults For males age
d 65 to 69, Labor force participation rates grew
from 28.7 in 1990 to 33.2 in 2000 females
grew 18.2 to 24.0 Teenagers For males aged 16
to 19, Labor force participation grew from
59.7 in 1990 to 60.3 in 2000 females grew
from 61.0 to 63.9
24Not Necessarily
- The Region 6E labor force is projected to grow
15.1 to 2030
- Female labor force will grow 17.3 in Region 6E
- 65 years labor force will grow 163.9
- 25-44 years labor force will decline -1.2
25Not Necessarily
- The Region 7E labor force is projected to grow
48.1 to 2030
- Female labor force will grow 49.0 in Region 7E
- 65 years labor force will grow 262.7
- 25-44 years labor force will increase 25.5
26Not Necessarily
- The Region 7W labor force is projected to grow
49.6 to 2030
- Female labor force will grow 49.5 in Region 7W
- 65 years labor force will grow 271.5
- 25-44 years labor force will increase 30.5
27Women in the Workforce, 1980 to 2000
Expanding Labor Force Since 1980, there has been
a huge increase in female labor force
participation The counties with the largest chang
e can be found in Central East Central
Minnesota Partially because of population growth
Renville, Pine, and Mille Lacs all lagged the
state Sherburne and Wright easily surpassed the
state rate Closer to the metro
28Working Outside County of Residence, 2000
Commuting Counties Counties surrounding the Twin
Cities Metro Area and St. Cloud MSA are supplying
the workers, not the jobs Central Minnesota is a
net exporter of labor Percent of Residents Workin
g Outside County of Residence Sherburne County
67.4 Chisago County 63.4 Isanti County 59.7
Wright County 56.8 State of Minnesota 33.
7 McLeod County 25.0 Kandiyohi County 11.6
29Average Commuting Times, 2000
Commuting Counties Central MN has some of the lon
gest mean travel times to work in the state
More than 33.5 of Isanti and 32 of Chisago
workers spent more than 45 minutes in the car one
way to work each day! Only Renville, McLeod, and
Kandiyohi had more than half of their residents
driving less than 15 mins. 10 percent of Kanabec
residents drove over 90 minutes each way!
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31Demography and the Economy
- This is a significant export of human capital,
which could be used within the region instead
- However, many of the jobs people are driving for
are paying much higher wages or have higher
educational requirements
- Central Minnesota may want to focus on strategies
that build more businesses within the region,
rather than sending half of its workforce into
other areas each day - Todays businesses require more competent labor,
as skill sets and training demands change every
couple years due to shorter product cycles and
new product introductions - Companies value workers who are well-trained,
but also trainable
- Companies look at the areas labor force
32What Does It Mean?
- Dynamic labor markets are characterized by
population growth and in-migration
- Productivity increases may be an indication of
adaptability
- Workforce development
- Recruitment
- Relocation
- What comes first, the people or the jobs?
- Population and income growth generates demand
for services
- Companies will look at local post-secondary
institutions for retraining
33Educational Attainment
- Central Minnesota lags the state in some measures
of educational attainment - fewer workers have
bachelors or advanced degrees
- 51 percent of the population aged 25 years and
over stopped with a High School diploma or less
(State 40.9)
- Central Minnesota has a higher percentage of
residents with at least some college, but no
degree, and associates degrees
- There is a significant gap in bachelors degrees
(losing our youth?) and advanced degrees
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35Market-Clearing Match
- Research shows that close to 71 percent of jobs
in Minnesota and 74.4 percent of jobs in Central
require only an HS diploma
- As compared to 8.9 percent of jobs that require
some college or an associates degree
- 16.7 percent of jobs require a bachelors degree
or above
- Slight unmet demand for workers with bachelors
degrees
- Can they be found among the commuters?
36The Loyalty Effect
- Research shows that Americans are changing jobs
and careers more frequently, regardless of the
economy. The median number of years that wage and
salary workers had been with their current
employer (referred to as employee tenure) was 3.7
years in January 2002 - Despite these trends to the contrary, workers in
Central Minnesota continue to display a
remarkable amount of loyalty to their
employers. According to a recent Labor Force
Assessment, median employee tenure was set
almost twice as high, at 6 to 7 years
37Show Me The Money!
- 87 of respondents rated an increase in pay as
important with 62 of respondents rating it as
very important
- 81 of respondents rated an increase in job
benefits as important with 57 of respondents
rating it as very important
- 78 of respondents rated better utilization of
skills as important
- 79 of respondents rated improved working
conditions as important
38Save Time, Save Money?
- In a late 2001 Labor Force Assessment, we
interviewed residents in Central Minnesota on a
variety of workforce issues
- How much less pay would workers accept to take a
job with a shorter commute? (or how much more to
drive farther?)
- Workers are willing to ask 2.00 less per hour to
drop their commute times! (from 31 to 45 min. or
46 min. or more)
- On the other hand, 50 wouldnt change their
current travel time
39Wages are VERY Important
- 90 of respondents rated an increase in pay as
important with 64 of respondents rating it as
very important
- 87 of respondents rated an increase in job
benefits as important with 64 of respondents
rating it as very important
- 80 of respondents rated better utilization of
skills as important
- 79 of respondents rated more job security as
important
40Regional Salaries
- Central Minnesota falls in the middle for
salaries
- Higher than Southwest, Northwest, and South
Central
- Lower than the Twin Cities, Southeast, and
Northeast
- Region 6E 76 of TC
- Region 7E 81.2 of TC
- Region 7W 77.5 of TC
- Lower wages in Central Minnesota are probably one
reason for our high rate of commuting
41Wage Comparison Analysis 6E
About 37 percent of all jobs in Region 6E pay
less than 10 per hour State 28 Another 45 pe
rcent pay between 10 and 20 per hour
State 41 The remaining 18 percent pay 20 per
hour or more State 31 7 percent pay 30 or mo
re State 14
42Wage Comparison Analysis 7E
About 38 percent of all jobs in Region 7E pay
less than 10 per hour State 28 Another 43 pe
rcent pay between 10 and 20 per hour
State 41 The remaining 19 percent pay 20 per
hour or more State 31 7 percent pay 30 or mo
re State 14
43Wage Comparison Analysis 7W
About 32 percent of all jobs in Region 7W pay
less than 10 per hour State 28 Another 46 pe
rcent pay between 10 and 20 per hour
State 41 The remaining 22 percent pay 20 per
hour or more State 31 8 percent pay 30 or mo
re State 14
44Wage Comparison Analysis
- The median hourly wage for Region 6E is 12.83
(84.1 of state)
- The median hourly wage for Region 7E is 13.66
(89.6 of state)
- The median hourly wage for Region 7W is 13.03
(85.4 of state)
- The median hourly wage for Minnesota is 15.25
- The highest paying jobs are typically
- Management occupations (29.70-33.21)
- Architecture and engineering occupations
(21.39-23.23)
- Business and financial operations occupations
(21.07-22.02)
- Healthcare Practitioners and Technical
occupations (22.64-24.02)
- Legal occupations (27.84-29.31)
- The lowest paying jobs are concentrated in
- Food preparation and serving related occupations
(6.92-7.56)
- Sales and related occupations (9.00-10.24)
- Building, grounds cleaning, and maint.
occupations (9.77-10.15)
- Personal care and service occupations
(8.84-9.82)
45Regional Salary Surveys
- Minnesota Salary Survey is based on a rolling
survey of 22,000 employers
- Updated quarterly and annually for the state,
regions, and MSAs
- Third Quarter 2004
- Distribution stats for 10th, 25th, 50th, 75th,
and 90th percentiles
- Central Minnesota typically pays between 75 and
85 percent of the metro wage
www.deed.state.mn.us/lmi/tools/oes/
46Competitive Occupational Groups
- Only three major occupational groups pay more in
Central Minnesota
- Education, training, and library occupations
- Farming, fishing, and forestry occupations
- Protective service occupations
- Several occupational groups are competitive
- Healthcare support occupations
- Food preparation and serving related occupations
- Transportation and material moving occupations
- Several occupational groups earn significantly
less
- Management occupations
- Business and financial operations occupations
- Computer and mathematical occupations
- Architecture and engineering occupations
- Arts, design, entertainment, sports, and media
occupations
- Healthcare practitioners and related occupations
- Construction and extraction occupations
47Wages are growing
- Wages are increasing in Central Minnesota, but
not as quickly as the state and the Twin Cities
metro area
- Average Annual Wage growth slowed down from 2002
to 2003
- Industries seeing the fastest growth in wages
include
- Professional and Business Services
- Financial Activities
- Public Administration
- Manufacturing
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49Brainstorming about the Workforce
50Central MN Economy
- Central Minnesota had 16,558 firms 241,896 jobs
paying 7.13 billion in 2003
- Central MN has 9.4 of total statewide jobs
- 74.7 of employment in Central MN is in
services-producing industries 25.3 of jobs are
in the goods-producing domain (state 19.3)
- 82.9 of employment in Central MN is in the
Private sector 17.1 of jobs are in the Public
or Government sector (state 14.4)
- Central MN gained a net of 8,046 jobs and 932
firms from 2000 to 2003
- Minnesota lost -32,865 jobs from 2000 to 2003
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52Distinguishing Industries
- Value-added Agriculture Production
- Animal Production, Crop Production, Ag. Support
Activities
- Food Manufacturing
- Specialty Manufacturing Sectors
- Nonmetallic Mineral Mfg., Paper Mfg., Textile
Product Mills
- Furniture Related Product Manufacturing (Wood
Product Mfg.)
- Computer Electronic Product Manufacturing
- Truck Transportation and Gasoline Stations
- Utilities
- Heavy Civil Engineering Construction
- Nonstore Retailers
- Healthcare (and Nursing Care for elderly
residents)
53Region 6E Economy
- Region 6E had 3,611 firms 52,016 jobs paying
1.5 billion in 2003
- 68.3 of employment in Region 6E is in
services-producing industries 31.7 of jobs are
in the goods-producing domain
- State of Minnesota 19.3 of jobs in
goods-producing
- 82.6 of jobs are at private sector companies,
and 17.4 of jobs are in the public sector
- State of Minnesota 14.4 of jobs in the public
sector
- Region 6E lost a net of -393 jobs but added 27
firms from 2000 to 2003
54Region 6E Blue Collar Economy
- Manufacturing is the largest employing non-ag
industry in Region 6E, with 22.5 of total
regional jobs (11,723 jobs)
- Statewide, manufacturing comprises 13.4 of total
jobs, and lost over-40,000 jobs during the
recession (Q2-2001 to Q2-2004)
- Region 6E lost -1,929 manufacturing jobs from
2001-2004, a -14.1 decline
- 3rd highest-paying industry overall at 762 avg.
weekly wage
- Computer Electronic Product Mfg. lost -1,118
jobs, a -29 decline
- Avg. Weekly Wages increased 32.3, from 666 to
881
- Machinery Mfg. lost -447 jobs, a -34.5 decline
- Avg. Weekly Wages increased 9.6, from 677 to
742
- Plastics Rubber Product Mfg. lost -117 jobs, a
-29.3 decline
- Avg. Weekly Wages increased 16.9, from 598 to
699
- Food Mfg. lost only -15 jobs, a -0.4 decline
- Avg. Weekly Wages increased 21.3, from 520 to
631
- Furniture Related Product Mfg. added 79 jobs,
a 19.8 increase
- Avg. Weekly Wages increased 6.0, from 600 to
636
55Region 6E Rising Services Economy
- Healthcare Social Assistance makes up 16.2 of
total regional jobs (8,442 jobs) with 541 avg.
weekly wage added 911 jobs
- 3,131 jobs at Nursing Residential Care
Facilities 314 avg. wage
- Added 425 jobs from 2000 to 2003
- 2,029 jobs at public Hospitals 726 avg. wage
- 1,999 jobs at Ambulatory Healthcare Services
826 avg. wage
- Projected to be the one of largest-growing
industries in Central Minnesota
- Retail Trade comprises 12.6 of total countywide
jobs (6,536 jobs)
- 65 of Retail Trade jobs are anchored in Willmar
(2,432 jobs 37.2) and Hutchinson (1,820 jobs
27.9)
- Retail Trade lost -87 jobs from 2000 to 2003
- One of the lowest-paying industries, at 335 avg.
wage
- Building Materials Stores added 159 jobs
- Food Beverage Stores dropped -151 jobs
- Retail Trade also lost -32 establishments
56Region 7E Economy
- Region 7E had 3,532 firms 45,819 jobs paying
1.25 billion in 2003
- 81.2 of employment in Region 7E is in
services-producing industries
- State of Minnesota 19.3 of jobs in
goods-producing
- 26.8 of employment in Region 7E is in the Public
or Government sector
- State of Minnesota 14.4 of jobs in the public
sector
- Region 7E gained a net of 2,443 jobs and 150
firms from 2000 to 2003
57Region 7E Healthcare Services
- Healthcare and Social Assistance is the largest
employing non-ag industry in Region 7E, with
19.4 of total region jobs (8,907 jobs)
- That was a 13.7 increase since 2000, which is
1,100 more jobs
- Healthcare employment was at Hospitals (3,125
jobs), Ambulatory Healthcare Services (1,231
jobs), Nursing Residential Care Facilities
(4,021 jobs), and Social Assistance (698 jobs) - Healthcare averaged 40.3 employees per site
larger employers
- Retail Trade is the next largest employing non-ag
industry in Region 7E, with 13.1 of total region
jobs (6,017 jobs)
- That was a 2.8 increase since 2000, which is
1,100 more jobs
- Among the lowest-paying industries at 357
average weekly wages
- Food Beverage Stores (1,400 jobs) and General
Merch. Stores (1,005 jobs)
- Led to associated growth in Accommodation and
Food Services, jumping up to 3,974 jobs in 2003
- Also has low wages (184 aww)
58Region 7E Differences
- Much smaller concentration of Manufacturing
firms, makes up 11.4 of total regional jobs
(5,201 jobs) with 658 avg. wage
- Manufacturing lost -1,059 jobs from 2000 to 2003
- Average of only 20 employees per site smaller
companies
- Plastics Rubber Product Mfg. was competitively
located Food Manufacturing was almost
non-existent (290 jobs)
- The largest employing specialty was Fabricated
Metal Product Manufacturing (1,356 jobs),
although it also lost nearly -200 jobs
- Demographic growth also led to growth in
Educational Services (4,373 jobs)
- 53.3 employees per site the largest average
size
- Added 592 jobs from 2000 to 2003
- Public Administration had 3,507 jobs in 2003,
significantly more concentrated than other
regions
59Region 7W Economy
- Region 7W had 9,416 firms 144,061 jobs paying
4.37 billion in 2003
- 75 of employment in Region 7W is in
services-producing industries 25 of employment
in goods-producing domain
- State of Minnesota 19.3 of jobs in
goods-producing
- 86.1 of employment in Region 7W is in the
private sector
- State of Minnesota 85.6 of jobs in the private
sector
- Region 7W gained a net of 5,996 jobs and 755
firms from 2000 to 2003
- With Stearns and Benton Counties included,
Region 7W is by far the largest employing
region
- 37 of the region jobs are in Sherburne and
Wright
- Wright added 3,346 jobs Sherburne added 2,315
60Region 7W Blue Collar Economy
- Manufacturing is the largest employing non-ag
industry in Region 7W, with 16.8 of total
regional jobs (24,185 jobs)
- Statewide, manufacturing comprises 13.4 of total
jobs, and lost close to-40,000 jobs during the
recession (Q2-2001 to Q2-2004)
- Region 7W lost just over 1,200 manufacturing jobs
from 2001-2004
- Food Manufacturing added 88 jobs (3,422 jobs)
- Fabricated Metal Product Mfg. was the largest
specialty (3,473 jobs)
- Wood Product Mfg. gained just under 200 jobs
- Furniture Related Product Mfg. added 117 jobs
- Sherburne and Wright had 31 of Region 7Ws
manufacturing employment
- Sherburne County 2,749 jobs
- Lost -210 jobs from 2000 to 2003
- Wright County 4,731 jobs
- Lost -369 jobs from 2000 to 2003
61Region 7W Services
- Retail Trade is the next largest employing
industry in Region 7W, with 15.1 of total jobs
(21,803 jobs)
- That was a -4.1 decrease since 2000, which is
-943 less jobs
- Largest decreases in Nonstore Retailers (Stearns
Benton)
- In contrast, Sherburne added 550 retail jobs
Wright added 769 jobs
- Led to associated growth in Accommodation and
Food Services, gaining 974 new jobs to 11,830
jobs total
- Also has low wages (185 aww)
- Healthcare Social Assistance was the third
largest industry, with 17,800 jobs added 2,475
jobs from 2000
- 6,115 jobs at Hospitals 4,873 jobs at Ambulatory
Healthcare Services 4,559 jobs at Nursing Care
3,001 jobs at Social Asst.
- Averaged only 27 employees per site
62A Growing Services Economy
- Demographic growth also led to growth in
Educational Services (12,912 jobs), added 1,719
jobs from 2000 to 2003
- 72.1 employees per site the second largest
average size
- Added 592 jobs from 2000 to 2003
- Construction payrolls jumped nearly 25 between
2000 and 2003
- Specialty Trade Contractors (1,413 jobs and 189
firms)
- 1,058 of those jobs were added in Sherburne
Wright County
- Construction of Buildings (563 jobs)
- 212 of those jobs were added in Sherburne
Wright County
- Heavy Civil Engineering Construction (215
jobs)
- 228 of those jobs were added in Sherburne
Wright County
- Construction is one of the fastest growing
industries in Central Minnesota demand for more
workers is high
63DEED Business Services List
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65A Trade-Off?
- Longevity and Stability
- Central Minnesota has a large number of
businesses that have been operating for more than
30 years
- Vitality and Growth
- Central Minnesota has a growing number of new
businesses created in the last five years
- We need different industries not just more of the
same
- Central MN relies on many older firms in older
industries
- Competition in these mature industries has
already squeezed out the windfall profits
- That leaves thin margin firms in thin margin
industries
66Thin Margin vs. High Tech
- Thin margin firms are more susceptible to
- Minimal investment in research and development
- Infrequent investment in new capital equipment
- Lean staff salaries
- High sensitivity to tax environment
- Vulnerable to merger and acquisition
- High Tech Industries tend to have fat margins
- Because of the high-value added production in
high-tech industries, and the greater demand for
high-skilled labor, these industries compensate
their employees well. - America's High-Tech Economy Growth Development,
and Risks for Metropolitan Areas Ross DeVol,
Perry Wong, John Catapano, and Greg Robitshek
The Milkin Institute
67Brainstorming about Industries
68Questions?
- Cameron Macht
- Regional Analysis Outreach Unit
- 320-231-5174 ext. 7535
- cameron.macht_at_state.mn.us
- Dept. of Employment Economic Development
- LMI Analyst HelpLine
- 651/282-2714
- DEED Publications
- 651/296-6545
- DEED LMI Web Site
- www.deed.state.mn.us/lmi/