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Survey of Manufacturers — Fourth Quarter 1993 through Third <br /> Quarter of 1994* <br /> During the third quarter of 1994. 32 failed indAfaciurers were surveyed to determine the <br /> . cause of dissolution and to identifv those moving from the state. Oniv one company reported <br /> moving out of Minnesota during this quarter. <br /> • Of the 231 manufacturing dissolutions that occurred during the one year period ending third <br /> quarter, t994, Financial difficulty was the most prevalent cause of business dissolution. <br /> Ninety-two businesses (40 percent') cited financial difficulty as the reason for discontinuing Minnesota <br /> operations. An additional t9 firms (8 percent) cited a combination of circumstantial and financial Statewide <br /> reasons for their business dissolution. Eight tirms (3 percent) consolidated their businesses with an Analysis <br /> out-of-state company. A total of 17 firms.(7 percent) employing over 360 workers moved out <br /> of Minnesota. These 17 firms cited taxes (including income, sales and property taxes) and 3rd Quarter. 1994 <br /> worker's compensation and unemployment insurance as significant in the decision to move. <br /> Manufacturing firms that moved out of Minnesota during, the past four quarters went to [he <br /> following states: California (1). Illinois (1), Iowa (2), Massachusetts (2), Michigan (1), North <br /> Carolina (1). North Dakota (t) and Wisconsin (8). Since the survey began in the third quarter <br /> of t99t. a total of 779 dissolved manufacturers have been surveyed. A total of 46 <br /> manufacturers were determined to have moved out of state and 28 (61 percent) of those <br /> moved to the border states of Iowa. North Dakota, South Dakota and Wisconsin. <br /> Cause of Manufacturing Business Dissolution <br /> (Fourth Quarter 1993 through Third Quarter of 1994) <br /> Other 19 <br /> Total number of business <br /> • dissolutions = 237 Moved out of state 17 <br /> Moved witftin state 4 <br /> Cause of dissolution/ Consolidated with operations in another state 8 <br /> e unknown 73 <br /> Consolidated with another MN!oration 9 <br /> Oeathiretlrement of owner 6 <br /> Lack of technical assistance&support from state 3 <br /> rinancial reasons 92 <br /> Reason for Move to Another State <br /> (Fourth Quarter 1993 through Third Quarter of 1994) <br /> High workers'compensation/ <br /> unemoloyment compensation costs <br /> 3urcensome state-moosea;axes <br /> Good incentives from other cities/states <br /> Moved closer to markets and/or suppliers — <br /> Significant <br /> Burdensome state-imposed regulations <br /> _ Most Significant <br /> Unsuitable land and/or facilities - <br /> Inadequate public services <br /> Insufficient local capital <br /> 0 2 4 6 8 10 <br /> Number of Movers <br /> • Naret Two categories listed in the survey. insufficient skilled labor and high wage costs. were not cited us stentjrcant reasons to more ;,v <br /> unv of the resporidenis. <br /> < This survev dues not include discontinued businesses in other industries. especiadit whoiestaine and:rucking. In addition. the m—ev <br /> Ines not include businesses that have chosen to expand outside of.Ninnesota or those that were not able:o exnrmd m:Ninnesnta <br /> because of hieh state-unposed costs. <br /> 3 <br />