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Manufacturers of Farm, Construction and Industrial Machinery <br /> Overtake Computer Manufacturing in Expansion Jobs <br /> During the first half of 1995, manufacturers of farm and garden, constriction and industrial machineries <br /> • produced more expansion jobs than computer manufacturers in the state. With the ongoing retrenchment <br /> by some large computer and defense-related businesses, these expanding niachiner} manufacturers have <br /> become the major source of g<xxl paying jobs in this sector. In printing and publishing, major <br /> expansions have shifted from newspapers and periodicals to publishers of books and commercial <br /> business materials. On the other hand, millwork has continued to provide for growth of high <br /> value-added products anion- the state's lumber and wood products businesses. The nation-wide Minnesota <br /> recovery of residential and commercial construction has stimulated this important local industry. ' <br /> Analysis <br /> Survey of Manufacturers—Third Quarter 1994 through Second <br /> Quarter 1995 2nd Quarter, 199 <br /> During second quarter 1995, 74 failed manufacturers were surveyed. Although financial <br /> difficulty was the primary reason cited for business failure, eight firms reported moving out of <br /> Minnesota, four of which relocated to an adjacent state. <br /> During the one year period that began with third quarter 1994 and ended second quarter 1995, <br /> 253 manufacturers closed their business operations. The most commonly cited cause was financial <br /> difficulty. Specifically, 73 responding firms cited financial difficulty as the primary reason for <br /> business dissolution. Ten firms consolidated their businesses with operations in another state. <br /> Eleven firms moved out of Minnesota during the one year period that ended second quarter <br /> 1995. These I 1 firms employed more than 51 workers. Major reasons cited by the firms were <br /> Minnesota's income, sales and property taxes, workers' compensation and unemployment <br /> insurance costs. The manufacturing firms that moved out of Minnesota during the past four <br /> • quarters went to the following states: California (l), Iowa (1), Massachusetts (l), North <br /> Dakota (1), Wisconsin (3), Kansas (1), South Carolina (1), Texas (1) and Kentucky (1). <br /> Since the survey began in the third quarter 1991, a total of 979 dissolved manufacturers have been <br /> surveyed. A total of 72 manufacturers (7 percent) moved out of Minnesota and 33 of these movers <br /> (46 percent) relocated to the border states of Iowa, North Dakota, South Dakota and Wisconsin. <br /> Cause of Manufacturing Business Dissolution <br /> (Third Quarter 1994 through Second Quarter of 1995) <br /> Other 20 <br /> Total number of business <br /> dissolutions = 253 Moved out of state 11 <br /> Moved within state 7 <br /> Cause of dissolution Consolidated with operations in another state 10 <br /> unknown 109 Consolidated with another MN location 12 <br /> Death/retirement of owner 9 <br /> Lack of technical assistance&support from state 2 <br /> �M <br /> Financial reasons 73 <br /> • * This sun•ey did not include discontinued businesses in otter industries, such as wholesaling and trucking. In addition, the sun ey <br /> did not include businesses that have chosen to expand outside of Minnesota or those that were not able to expand in Minnesota <br /> because of high state-imposed costs. <br /> 3 <br />