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<br /> as South Dakota:to produce goods outside the some ` n ad bloc- JOB GROWTH IN LARGEST INDUSTRIES
<br /> Fnod and Drug Administration-approval yuag• soured. In addition, r
<br /> mire,companies set up operations abroad. sonic former heavy in- 1988
<br /> -1 994
<br /> Machinery and metalworking,however,show dustry sites have been
<br /> i sonic lasting power.Twin Cities'companies converted from pollut- Employment in thousands
<br /> manifest a cooperative-competitive attitude, ed or abandoned 450
<br /> and competitors often call on each other for "brownficlds"to us-
<br /> help with a problem or for subcontracting a able industrial parks,
<br /> task.Specialization is very high,as is quality. like Texaco's former 400
<br /> "Firms know they can depend on other suppli- tank site at Interstate
<br /> ers to fulfill their subcontracting needs."the au- 35E and Shepard Services
<br /> thors note."so they are not forced to make in- Road,which is now the 350
<br /> vestments in equipment that would be underuti- Crosby Lakes Business
<br /> lized if it were employed within the company Park.The city could
<br /> I
<br /> alone." have"fined the site �^ Retail and Wholesale Trade
<br /> Lack of skilled labor poses one of the largest three times,"Strand 300
<br /> problems faced by area employers,note the au- says,the demand was
<br /> thorn of the"Twin Cities Industry Cluster so high.
<br /> Study."The labor shortage potentially blocks Unfortunately,man- 250
<br /> further growth:Minnesota's unemployment ufacturing emplov- Manufactln'Ing
<br /> rate has been less than 4 percent since early ment has been lighter
<br /> 1995,and the Ninth District Federal Reserve as well.Although as 200
<br /> Bank projected in July that the rate would hov- recently as 1987 manu-
<br /> er around 3.3 percent through the end of 1997. facturing was St.Paul's
<br /> largest job sector,with
<br /> Shortages:employees and land 49,906 jobs.the city's 150
<br /> Despite the increasing number of manufactur- Planning and Econom- 1988 189 90 191 182 '93 '84
<br /> ing concerns in rural and small-town Minneso- is Development staff
<br /> ta,the Twin Cures area still stands as the state's estimates manufactur- Source:Minnesota DoV of Economic Security
<br /> j manufacturing stronghold.Hennepin.Ramsey, ing jobs for 1995 at
<br /> Anoka,and Dakota counties account for about 35,300,the lowest figure for the last five%ears. equipment.But fabricated-metal employment
<br /> • 57 percent of Minnesota's manufacturing em- ('these statistics include 3M jobs at its Maple- increased 7.4 percent from 1994 to 1995,med-
<br /> ployment.according to the 1992 census.But the wood headquarters.)The decline in mail ufac- ical•inslrument employment increased 6.3 per-
<br /> metropolitan area's manufacturing scene also is turing jobs,according to Mark Vander Schaaf cent in that period,and commercial-printing
<br /> mixed. of the St.Paul PED,corresponds to rising pro- employment 5.4 percent.
<br /> Manufacturing has been lightening up in St. ductivity—which means fewer workers are re- In Minneapolis also,one of the major restric-
<br /> Paul.says Michael Strand,vice president of quired for the same output—and to the national tions to manufacturing growth is the lack of
<br /> marketing and communications for the St.Paul shift away from manufacturing employment to good land,says Terrell Towers,director of the
<br /> Port Authority,as heavy manufacturers like services.Indeed.St.Paul's service-sector jobs economic-development division of the Min-
<br /> Amhoist and Whirlpool have left and such light increased by an estimated I ISM.to 65,4110,in neapolis Community Development Agency.
<br /> industry and high-technology companies as 1995.He also notes a shift of many jobs from Out of 4,000 industrially zoned acres,1,000
<br /> Minnesota Wire&Cable and Endocardial So- urban to suburban and rural areas. acres are underutilized,typically because they
<br /> From 1994 to 1995, need pollution cleanup.The MCDA touts Se-
<br /> manufacturing employ- ward Place,at East 26th Street and 26th Av-
<br /> From 1994 to 1995, ment in the 13-county enue South,as a successful land rehabilitation;
<br /> metropolitan area,ac- it took more than 10 years,public investment of
<br /> cording to the Minneso- $10.1 million,and private investment of$9 mil-
<br /> manufacturing employment la Department of Eco• lion to retain 272 jobs and create 140.Many of
<br /> nomic Security,grew in these are manufacturing jobs,and most have
<br /> in the metro area grew all but tour sectors:pa- gone to Minneapolis residents.But more needs
<br /> per and allied products, to be done.Towers says:"If a company calls to-
<br /> food and kindred prod- day and wants 20 clean acres of land,we don't
<br /> ucts,in all but four sectors■ men industrial equip- have er
<br /> men industrial
<br /> and computer Nevertheless,manufacturing has increased in
<br /> 44 OCTOBER 1996 TWIN CITIES BUSINESS MONTHLY
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