HomeMy WebLinkAbout08-21-96 ECONOMIC DEVELOPMENT COMMITTEE AGENDA
Wednesday, August 21, 1996
8:00 a.m.
Army Reserve Center
4655 North Lexington Avenue
1. Call to Order.
2. Approval of Minutes from July 24, 1996 meeting.
3. Marketing Brochure.
4. County Road E Banners.
5. Council Comments.
6. Committee Comments.
S7. Adjournment.
If you are unable to attend this meeting, then please contact Julie at 633-5676.
MINUTES
CITY OF ARDEN HILLS, MINNESOTA
ECONOMIC DEVELOPMENT COMMITTEE MEETING
WEDNESDAY,JULY 24, 1996
8:00 A.M.
ARMY RESERVE CENTER
1. CALL TO ORDER
The meeting was called to order at 8:05 a.m.
2. ROLL CALL
Present were: Dan McCallum, Chair; Ray McGraw, Vice Chair; Arnold
Lindberg; Steve Freimuth; Council Liaison, Beverly Aplikowski; and
Kevin Ringwald, Community Development Director.
Others present were: Tom Steele, Finance Committee Liaison; and Julie
Tostenson, Department Secretary.
Absent were: Terry Nagle; Tom Goblirsch; Jeanne Winiecki; Tom
Andreasen; Ted Brausen; and Brian Fritsinger, City Administrator.
3. APPROVAL OF MINUTES
• Minutes from the June 19, 1996 meeting were approved, following a
motion made by Dan McCallum and seconded by Ray McGraw.
4. MARKETING BROCHURE
Chair McCallum provided the EDC various samples for the cover of the
marketing brochure. The Committee discussed these ideas in detail. The
samples consisted of photographs (ie., lakes, parks, business & churches)
and graphic designs. It was generally concluded that the covers of the
marketing brochure should consist of:
Front Cover
The front cover will consist of two photographs of businesses (ie.,
Land O' Lakes and Cardiac Pacemakers Inc.). Arden Hills'"ill be
printed under the first picture with a line of text(ie., A Community
for Family and Business). Also, to balance the visually balance the
photographs additional graphics may be required.
Back Cover
The EDC concluded that there should be three pictures on the back
cover, with a headline stating what the photograph is/represents.
S Those pictures being of recreation (ie., Tony Schmidt Park/Lake
Johanna), church (ie., Russian Orthodox) and a single family
house. The City logo will go on the bottom of the brochure, with
the City's address and phone number in small print under the logo.
Inside Cover
The EDC concluded that the inside covers will consist of a small
map and a slot for a business card. The small map would show the
relationship of Arden Hills to Minneapolis, Saint Paul,
International Airport, and the major metropolitan roadway system.
Vice Chair McGraw volunteered to produce the small map.
The Committee thanked Chair McCallum for doing a good job on the
layout of the cover of the marketing brochure and for doing it so quickly.
5. COUNCIL REPORT
Councilmember Aplikowski discussed the progress of the 1996 Street
Improvement Projects. The City would be reviewing the Street
Assessment Policy for appropriate modifications. The Council has
rejected all the watermain bids for the Highway 10 project, so the City
staff will be repairing a portion of the watermain. The Council is
discussing possible name changes for West County Road F,the names
appear to have the most support are Farrell Road or Country Road. The
first City newsletter(Arden Hills Notes) will be coming out in the
beginning of August.
6. MISCELLANEOUS
Welsh Companies •
Welsh Companies is working on a development in the Gateway Business
District. Phase I of the project is tentatively scheduled to be heard by the
Planning Commission on September 4, 1996. Welsh Companies is still
trying to acquire the other properties (ie., Pentair, City, Zafke, and
Harstad) for their Phase II construction.
Banners
The EDC discussed the banners along County Road E. The EDC
requested that Staff provide information on when the banners were last
replaced and what the estimated cost would be to provide new banners.
The EDC also discussed potential funding mechanisms (ie., adjacent
businesses) for the project.
Fire Hydrants
Vice Chair McGraw stated that the Fire Hydrants in Arden Hills need to
be painted. Steve Freimuth stated that it may be a good project for the
Boy Scout Eagles to do.
7. ADJOURNMENT
Meeting adjourned at 9:10 a.m.
•
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CITY OF ARDEN HILLS
MEMORANDUM
DATE: August 21, 1996
TO: Economic Development Committee
i
FROM: Kevin Ringwald, Community Development Director
v
SUBJECT: Marketing Brochure
The EDC at its July 24, 1996 meeting discussed various alternatives for the design of the cover
of the marketing brochure. The EDC discussed these alternatives in detail. It was generally
concluded that the covers of the marketing brochure should consist of:
1. Front Cover. The front cover will consist of two photographs of businesses (ie.,
Land O' Lakes and Cardiac Pacemakers Inc.). Arden Hills will be printed under
the first picture with a line of text (ie., A Community for Family and Business).
Also, to balance the visually balance the photographs additional graphics may be
required.
2. Back Cover. The EDC concluded that there should be three pictures on the back
cover, with a headline stating what the photograph is/represents. Those pictures
being of recreation (ie., Tony Schmidt Park/Lake Johanna), church (ie., Russian
Orthodox) and a single family house. The City logo will go on the bottom of the
brochure, with the City's address and phone number in small print under the logo.
3. Inside Cover. The EDC concluded that the inside covers will consist of a small
map and a slot for a business card. The small map would show the relationship of
Arden Hills to Minneapolis, Saint Paul, International Airport, and the major
metropolitan roadway system. Vice Chair McGraw volunteered to produce the
small map.
Staff also has been working with Land O' Lakes on putting together a draft of the internal
portions of the marketing brochure. The draft will be distributed by Terry Nagle at the meeting.
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CITY OF ARDEN HILLS
MEMORANDUM
DATE. August 15, 1996
TO: Economic Development Committee
FROM: Kevin Ringwald, Community Development Director
SUBJECT: Banners
The EDC at their July of 1996 meeting requested that Staff investigate the replacement of the
banners which exist along County Road E, as they are currently in poor condition.
Banners
The banners are 24 inches by 72 inches. The banners are two colors and have Spring/Summer
and Fall/Winter motifs. There were 40 banners (20 Spring/Summer and 20 Fall/Winter)which
were purchased for installation. The banners were originally purchased, through private
donations, in 1992.
The funding for periodic maintenance and replacement of the banners has not been provided by,
• nor sought from, the businesses along County Road E. The semi-annual replacement of the
banners has been problematic for the City's field crews, since the City does not have a bucket
truck. The crews have replaced the banners by standing in the bucket of a front end loader,
which is not a safe construction practice. In discussion with vendors the 24 inch by 72 inch
banner requires special cutting. The standard banner is 30 inches by 80 inches. Also, the Staff
asked for quotes on replacing the banner brackets. Currently,the banner brackets are metal
which do not flex in high winds and cause significant structural fatigue of the brackets and the
banners. The Staff requested quotes for flexible brackets.
Cost
The Staff prepared an analysis of an alternate which replaces the 20 Spring/Summer and 20
Fall/Winter banners. The estimated cost of this alternate is $7,267.31. The Staff also prepared
an analysis of an alternate which provides for 20 Spring, 20 Summer, 20 Fall, and 20 Winter
banners. The estimated cost of this alternate is $14,271.33. Obviously, either of these alternates
requires a costly undertaking. The Staff would conclude that if the businesses along County
Road E wish to have the banners, then those businesses should be responsible for raising the
necessary private funding for the project. The EDC may wish to facilitate the fund raising by
contacting businesses or charitable organizations for donations.
The EDC should discuss the relative merits of this activity against the activities which are
anticipated to occupy the EDC's time in 1997 (ie., business retention, etc.,). The EDC may wish
to discuss this idea with the affected businesses prior to identifying this as a potential goal for
1997.
The five year cost for the Spring/Summer and Fall/Winter banners are as follows:
Spring/Summer and Fall/Winter Banners(5 year life expectancy*)
ITEM COST
20 S/S Banners(30"x80")2 color,both sides $2,250.00
20 F/W Banners(30"x80")2 color, both sides $2,250.00
20 Brackets(flexible w/banding) $1,440.00
Bucket Truck rental(1997)@ 2x per year $250.00
Bucket Truck rental(1998)@ 2x per year, incr @ 3%per year $257.50
Bucket Truck rental(1999)@ 2x per year, incr @ 3%per year $265.23
Bucket Truck rental(2000)@ 2x per year, incr @ 3%per year $273.19
Bucket Truck rental(200 1)@ 2x per year, incr @ 3%per year $281.39
Total $7,267.31
*5 year life expectancy is based on experience with current banners with flexible brackets.
The seven year cost for the Spring, Summer, Fall, and Winter banners are as follows:
Spring,Summer, Fall,and Winter Banners(7 year life expectancy**)
ITEM COST
20 S. Banners(30"x80")2 color,both sides $2,250.00
20 S. Banners(30"x80")2 color,both sides $2,250.00
20 F. Banners(30"x80")2 color, both sides $2,250.00
20 W. Banners(30"x80")2 color,both sides $2,250.00
20 Brackets(flexible w/banding) $1,440.00
Bucket Truck rental(1997)@ 4x per year $500.00
Bucket Truck rental(1998)@ 4x per year, incr @ 3%per year $515.00
Bucket Truck rental(1999)@ 4x per year, incr @ 3%per year $530.46
Bucket Truck rental(2000)@ 4x per year, incr @ 3%per year $546.38
Bucket Truck rental(2001)@ 4x per year, incr @ 3%per year $562.78
Bucket Truck rental(2002)@ 4x per year, incr @ 3%per year $579.66
Bucket Truck rental(2003)@ 4x per year, incr @ 3%per year $597.05
Total I $14,271.33
** 7 year life expectancy is based on experience with current banners with flexible brackets and increased longevity
due to reduced exposure to elements. •
CITY OF ARDEN HILLS
• MEMORANDUM
DATE: August 21, 1996
TO: Economic Development Committee
FROM: Kevin Ringwald, Community Development Director
SUBJECT: Monthly Report
1. Cardiac Pacemakers Inc. The Minnesota Department of Trade and Economic
Development (DTED) on August 12, 1996 awarded CPI a$300,000 Minnesota
Investment Fund grant(forgivable loan). The Staff has been pursuing this award on
behalf of CPI for almost one year(see Monthly Reports, August and November of 1995
and May of 1996).
The CPI project will create and retain jobs in Minnesota, specifically Arden Hills. The
project will create at least 70 high wage jobs and may create up to 200 new jobs. The
CPI project has retained 450 manufacturing and 90 professional jobs in Minnesota.
Cumulatively, the CPI project has the potential to retain or create approximately 740 high
• wage jobs in Minnesota's medical device industry.
The $14,646,500.00 project involves consolidating and expanding the CPI operations at
their Arden Hills campus. To this end, CPI has leased approximately 95,000 square feet
of space in the Control Data Corporation's (CDC)building directly east of the CPI
campus. Also, CPI has the right to lease approximately an additional 19,000 square feet
and construct a skyway from the CPI campus to the CDC building. The additional space
and its proximity to their campus provides the required operational efficiencies. CPI is
continually developing new product lines and these new spaces will facilitate the
exploration of these new market niches.
2. Golden Quince. The Golden Quince bakery has recently opened in Arden Plaza.
Attached is an article on the new bakery from the Focus News, Business `96 edition
which was published on August 1, 1996.
3. Metro East Development Partnership. Attached for your information is the Metro East
Development Partnership (MEDP) SCOREBOARD through the beginning of August.
You might note that of the businesses assisted by MEDP that 46 percent of the capital
investments and 21 percent of the jobs were to Arden Hills companies.
4. Business Tracking System Quarterly Report-July 1996. Attached to this
memorandum you will find the Quarterly Report of the Minnesota Business Tracking
System. The report was prepared by the DTED.
i'-11.N ESOTA DEPARTXIENT OF
TRADE AND ECONOMIC DE%ELOPME\T
X00\Ictro square
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August 12 , 1996
The Honorable Dennis Probst
Mayor, City of Arden Hills
1450 West Highway 96
Arden Hills, MN 55112
Dear Mayor Probst:
I am pleased to inform you that your application for a
Minnesota Investment Fund grant has been approved in the amount
of $300, 000. As outlined in the approved application, the City
of Arden Hills will make a loan of $300, 000 to Cardiac
Pacemakers, Inc.
A grant agreement is being prepared by the Business and
• Community Development Division staff. They will also provide you
with additional information about your grant award to help you
achieve your economic development goals. Also, please note that
your approved application becomes part of the grant agreement.
No changes can be made regarding the rates, term, use, schedules,
or recipient of the loan funds without approval from this
Department. For additional information, contact Cheryl Johnson
at (612) 296-2596.
Finally, let me extend my congratulations to you and your
staff for developing a successful project application to help
address your community and economic development needs.
sincerely,
� 2yNovak
r'mlmissioner
JN:jmc
-dd1296.76a
,a (612)29--1291
TTY/TDD(6":,282-6142
An Equal Opportunik Emplocer FAX(01',290-:290
• 4—Focus News-BUSINESS 96•Thursday August 1, 1996
Golden Quince: Winning
location, delicious goodies
The Golden Quince offers delicious,
fresh-baked goodies to its customers. �3a
A winning location, 3557 Lexington Ave.
N. in Arden Hills, combined with whole-
some, delicious bakery products, great cof-
fee, a warm atmosphere and friendly ser-
vice will make The Golden Quince a great t
neighborhood destination. ,
Created with genuine, fresh ingredients,
The Golden Quince products are baked dai-
ly in the store.The Golden Quince also has
a variety of gourmet deserts, which
includes chocolate fudge strudel and a deli-
cious,fresh summer fruit buckle.
The day starts with an array of aromatic
fruit and spice muffins, featuring low-fat
and fat-free/sugar-free products. An inter-
esting assortment of scones will include
seasonal fruit options and a signature herb
GOLDEN QUINCE/ Page 12
12—Focus News•BUSINESS 96•Thursday August 1, 1996
Golden Quince/ Open Monday-Saturday
From page 4 late chip cookie. The selection of fresh
breads available will include Brioche,
and cheese scone. Focaccia and Bagettes.
Homemade Quince Jam, along with oth- You'll enjoy the relaxing and pleasing
er favorites, will be available to accent atmosphere. The inside is decorated in a
warm muffins, scones and breads, and can very simple, rustic European marketplace
be purchased to take home. Freshly baked style.
cinnamon rolls will complete the morning There is an abundance of indoor seating
attractions. at antique tables and chairs or outside with
Customers will enjoy satisfying creations a patio setting among flower arrangements.
with a rich coffee drink made with Clay- Hours are 6:30 a.m.-8 p.m.Monday-Friday
ton's Coffee of San Francisco. Standards and 7 a.m.-8 p.m.Saturday.Call 483-3327
will include Tiramisu, Rouladen, pound for more information.
cake, cream puffs and a satisfying choco-
The Golden Quince
3557 Lexington Ave. N.
Arden Hills, MN 55112
483-3327 (FAX) 483-3291
6:30 a.m.-8 p.m. M-F;
7 a.m.-8 p.m. Sat.
i
METRO EAST DEVELOPMENT PARTNERSHIP
DATE: 08/06/96
TO: METRO EAST DEVELOPMENT PARTNERSHIP MEMBERS
FROM: MEDP
RE: SCOREBOARD
................................................................................................................................................................................................................................
In an effort to illustrate the type of projects MEDP staff and volunteers work on, the enclosed
SCOREBOARD has been developed.
It is intended to be a summary of the progress of MEDP projects from January 1, 1996 to date.
The successful completion of the projects listed are the results of many parties working together, not
the sole responsibility of MEDP efforts.
Once again, thank you for your great responses to the RFD's. The Client Update will be sent
out soon. It will be a report of the status of the projects and clients worked with to date.
Your continued participation and support wi11 enhance the strength of the Metro East
Development Partnership. Through these joint partnership efforts there will continue to be new
businesses and new jobs in Ramsey,Washington and Dakota counties.
If you have any questions please call the office at (612) 224-3278.
Enc. 1
lygh
• � � _ ��L�Li'i 1ti Lr_\
08/06/96
r'
SCOREBOARD
JANUARY 1 - JUNE 30, 1996 •
SUMMARY DESCRIPTION TOTAL #
Total Clients Served 76
Metro Area 38
Out of State 34
Foreign 4
Site Tours 16
Capital Investment of Successes (1996 only) $37,500,000
Successes 4
Retained/Expanded Jobs* 1,975
New, Created/Attracted Jobs* 950
Small Business/Entrepreneurial Mentoring Projects 11 •
Small Business/Entrepreneurial Jobs Created/Retained 49
MPO/Tel Tech Sign Ups 19
Business Information Requests/Responses 105
SPMEDCO Approved* SBA Approved
Total # Loans Approved 7 4
Total # Jobs Created/Retained 97/125 56/60
Total Capitol Investment $9,344,000 $3,710,000
* Living Wage Job
•
Metro East Development Partnership
Second Quarter 1996
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State of Minnesota
Department ol' Trade and Economic Development
. I r u + Systc,
ZD
k-te r 11
ua. r" -y Report
NkIinnesota B:t�,incss Births, DISSOIIItIMIS.
Eypansions and Contractions
S
•
i
Introduction
The DTED Business Tracking Report (BTR) examines time dvnamics of business growth and decline in Ainnesota, providing a
better understanding of the process of job creation and of the competitive position atf the various regions (!f the state. Time BTR
documents the ebb and flow of business activity in Minnesota by tracking business start-ups and fidlures. and major expansions
and contractions around the state.
While net employment change statistics are widely available and vet• usefid, they do not reveal the `chanting" of business
activity as jobs are created and lost in the economy. bmformation about this underlying activity provides a dearer picture of the
vigor of Minnesota's regional economies.
The BTR also tracks Minnesota manufacturers that have ceased operations in Minnesota. including those that have moved out
of the state, to determine the cause of those dissolutions or relocations.
Table of Contents Page
Minnesota Statewide Analysis . . . . . . . . . . . 1
Regional Analysis . . . . . . . . . . . . . . . . . 4
Northwest Region . . . . . . . . . . . . . . 6
West Central Region . . . . . . . . . . . . 7
Northeast Region . . . . . . . . . . . . . . 8
Southwest Region . . . . . . . . . . . . . . 9
Central Region . . . . . . . . . . . 10
Southeast Region . . . . . . . . . . . . . I I
Twin Cities Area . . . . . . . . . . . . . 12
Terms, Definitions and Sources . . . . . . . . . 13
Economic Expansion Resumes in Summer 1995
A soft landing during the Spring of 1995 and sustained low inflation rates led to a surge in economic
activity nationwide during the succeeding summer. Strengthened consumer demand and low business
• inventories caused U.S. industries to produce 3.6 percent more goods and services during the summer
of 1995. Minnesota's manufacturing sector added 10,600 new jobs from the previous quarter.
According to the Department of Economic Security, Minnesota continued to add jobs at a faster rate
than nationally. There were 67,000 more jobs in Minnesota during summer 1995 compared to summer
1994, a 2.9 percent increase. This exceeded the national rate of 2.6 percent for the same period, and the
2.4 percent growth rate for the state the previous spring. Consequently, Minnesota's seasonally adjusted .
unemployment rate fell to 3.0 percent by September 1995, nearly half the national rate of 5.6 percent.
Major business expansions in Minnesota added 42 percent more jobs than the previous quarter. Several
food manufacturers expanded operations beyond their high seasonal levels of the previous summer. 3rd Quarter, 1995
Technolog -intensive companies producing computers and industrial machineries, electronic components,
transportation equipment, and instruments and related products greatly increased their expansion hirings.
Business services and health services more than doubled their expansion hirings from the previous quarter.
New business formation picked up during the summer of 1995. Compared to the previous
quarter, 13 percent more new businesses started up, creating 24 percent more start-up jobs.
Several large food manufacturers opened new plants, and manufacturers in several industries,
including rubber and plastic products, printing and publishing, and industrial machinery
continued to be significant contributors to start-up jobs. The number of business dissolutions
declined by one-third, with business services, health services, and engineering, accounting,
legal and other professional services posting fewer business closings and job losses.
July 1994
2400 Jan.1996
2390
2380
• Wage and 230
Salary 23660
Employment,2350
Seasonally 2340
Adjusted
(1,000) 2330
2320
2310
2300
4°'.
—----- 2.a
2.a 2-7 3% Business
2 a Birth
2.3 `ds 2:: and
__1A 1.9 _ >ys' - -_ - *"'r: --- � ' Dissoluticn
2% Rates
1.6
5
e Berth Rase
I— 1% ❑ Dssolubc�Rate
3rd Quarter,1994 4th Quarter,1994 1 st Quarter,1995 2nd Quarter,1995 3rd Quarter,1995
Large Manufacturing Companies Built New Plants and
Enlarged Facilities
Manufacturing companies with 50 or more employees accounted for two of every three start-up jobs
and almost all major expansion jobs in manufacturing. Most of these start-ups occurred in the Twin
Cities area, while major manufacturing expansions were split evenly between the Twin Cities area and
Greater Minnesota. Large companies in other industries were also major sources of expansion jobs.
Across all industries, small companies with fewer than 50 employees exhibited characteristic
volatility; they accounted for 65 percent of start-up jobs, 71 percent of terminated jobs and
• 50 percent of downsized jobs. Small business contractions were prevalent in the construction.
retail trade and service industries.
1
L r
Construction Industry Flourished During the Summer
'L The pick-up in new housing starts since the spring quarter and low mortgage rates produced a
xr ' P P o P o q o P
robust 1995 summer construction activity in the state. According to the Department of
Economic Security, total summer construction jobs increased almost two percent from the
same quarter of 1994, or twice the growth rate from the previous summers. Expandin g large •
companies created most of the new jobs, and attained for the construction industry the highest
rate of job growth from expansions (33 percent) among the major industries in the state.
Although the number of manufacturing start-ups did not change significantly compared to the
Minnesota previous quarter, their initial large sizes tripled the total number of start-up jobs in manufacturing.
Statewide With fewer business dissolutions during this quarter, there were 97 net new manufacturing
businesses and over 600 net new manufacturing jobs. Major manufacturin- expansions in the state
3rd Quarter, 1995 continued to outpace major contractions, creating over 800 net additional jobs during the summer.
The largest source of new jobs in the state- the services industry- showed similarly improved
performance of net new job creation from business start-ups (811 net new businesses and 2,000 net
new jobs) and major business expansions (3,900 net additional jobs). In addition, the large retail trade
industry created almost twice as many new start-up jobs as those jobs lost from business dissolutions.
Greater Minnesota Job Growth (page 13)
Number of Business Establishments*
Births Dissolutions Expansions** Contractions" Total
Industry No.Rate(%) No.Rate(%) No.Rate(%) No.Rate(%) Estab.***
Agriculture D D D D 28 1.0 D D 2,802
Mining D D D D 4 2.1 D D 189
Construction 405 3.3 226 1.9 138 1.1 100 0.8 12,226
Manufacturing 156 1.9 59 0.7 140 1.7 93 1.1 8,385
Trans., Comm., Utilities 179 3.1 105 1.8 40 0.7 43 0.7 5,930
Wholesale Trade 409 2.9 217 1.6 47 0.3 38 0.3 14,094
Retail Trade 623 2.3 482 1.8 191 0.7 223 0.8 26,780 .
Finance, Ins., Real Estate 328 2.6 178 1.4 51 0.4 44 0.4 12,711
Services 1,451 3.2 640 1.4 309 0.7 245 0.5 45,012
Public Administration 11 0.4 D D 56 2.2 4 0.2 2,203
TOTAL 3rd Qtr., 1995 3,651 2.8 1,940 1.5 1,004 0.8 816 0.6 130,332
TOTAL 2nd Qtr., 1995 3,244 2.4 2,933 2.2 831 0.6 6.17 0.5
TOTAL 3rd Qtr., 1994 3,446 2.6 2,353 1.8 1,029 0.8 697 0.5
Number of Jobs*
Births Dissolutions Expansions" Contractions" Total
Industry No.Rate(%) No.Rate(%) No.Rate(%) No.Rate(%) Jobs***
Agriculture D D D D 362 1.8 D D 22,645
Mining D D D D 93 1.2 D D 7,593
Construction 654 0.8 272 0.3 2,618 3.1 1.838 2.1 95,574
Manufacturing 1,055 0.3 381 0.1 4,423 1.1 3.558 0.9 411,519
Trans., Comm., Utilities 374 0.3 208 0.2 919 0.8 1,050 0.9 110,691
Wholesale Trade 899 0.6 571 0.4 817 0.6 715 0.5 144,584
Retail Trade 4,262 1.0 2,213 0.5 3,214 0.8 3.762 0.9 419,316
Finance, Ins., Real Estate 632 0.5 292 0.2 1,079 0.8 1,28» 1.0 131,411
Services 3,459 0.5 1,424 0.2 9,533 1.3 5,601 0.7 696,069
Public Administration 2 0.0 D D 935 1.4 132 0.2 55,632
TOTAL 3rd Qtr., 1995 11,590 0.5 5,394 0.3 23,994 1.1 18,390 0.9 2,095,034
TOTAL 2nd Qtr., 1995 9,340 0.4 5,901 0.3 16,945 0.8 12.439 0.6 -
TOTAL 3rd Qtr., 1994 11,234 0.5 4,472 0.2 25,379 1.2 14.673 0.7
* The rates in this table are based on totals from previous quarters.
** Covers only major expansions and contractions. ,!
*** Total establishments and total jobs, 3rd Quarter. 1995, unadjusted for late or missing employer reports.
D = Suppressed to avoid disclosure of individual company data.
Note: See notes on Page 13 of Report for Terms, Definitions and Sources.
2
Medical Instruments and Supplies Grew in Twin Cities
Rapid growth of instruments and related products manufacturing in the state has softened the impact
of sharp declines in computer manufacturing. This industry now employs over 37,000 workers, near
• the peak of computer manufacturing jobs in the state during the late 1980s, and surpassing the
current 25,000 jobs in computer and office equipment manufacturing. However, the instruments
group had a slow component, the more mature measuring and controlling device manufacturing
sector, that had some businesses linked to declining federal defense contracts. Employment in this
group peaked at 16,500 jobs in early 1990 and went down to 14,000 jobs in the summer of 1995.
Minnesota
In contrast, medical instruments and supplies manufacturing is a fast growing sector in the instruments Statewide
and related products group. Employment grew from 12,000 workers in 1990 to 16,800 in the summer of
1
An-alysi
995, mostly in the Twin Cities area. This industry benefits greatly from an outstanding health service sil
industry in the state, including research facilities in hospitals and universities. Another component, 3rd Quarter, 1995
ophthalmic goods manufacturing has a large concentration of employment in the St. Cloud area.
Survey of Manufacturers — Fourth Quarter 1994 through Third
Quarter of 1995
During the third quarter of 1995, 59 failed manufacturers were surveyed. Although financial
difficulty was the primary reason cited for business failure, four firms reported moving out of
Minnesota, three of which relocated to neighboring states.
During the one year period that began with fourth quarter 1994 and ended with third quarter 1995,
259 manufacturers closed their business operations. The most commonly cited cause was financial
difficulty. Specifically, 77 responding firms cited financial difficulty as the primary reason for
business dissolution, while 10 firms consolidated their businesses with operations in another state.
Fourteen firms, employing more than 84 workers, reported moving out of Minnesota during the one year
period that ended third quarter 1995. Major reasons cited by the firms for their move were state-induced
• business costs, such as Minnesota's income, sales and property taxes, workers' compensation and
unemployment insurance costs. The manufacturing fimts that moved out of Minnesota during the past four
quarters went to the following states: California (1), Iowa (2), Kansas (1). Kentucky (1), North Dakota (1).
South Dakota (1), North Carolina (1), South Carolina (1), Texas (1) and Wisconsin(4).
Since the survey began in the third quarter 1991, a total of 1,038 dissolved manufacturers have been
surveyed. A total of 76 manufacturers (7 percent) moved out of Minnesota and 36 of these movers
(47 percent) relocated to the border states of Iowa, North Dakota, South Dakota and Wisconsin.
Cause of Manufacturing Business Dissolution
(Fourth Quarter 1994 through Third Quarter of 1995)
Other 22
Total number of business
dissolutions = 259 $* Moved out of state 14
Moved within state 9
Cause of dissolution Consolidated with operations in another state 10
unknown 104 Consolidated with another MN location 12
Death/retirement of owner 10
` r Lack of technical assistance&support from stale 1
C }'
r 11
` Financial reasons 77
• * This survey did not include eliscontinued businesses in other industries, such as wholesaling and trucking. tit addition, the sun eN
did not in' businesses that have chosen to expand outside of Minnesota or those that were not able to expand in Ahnneso:.;
because of hilt state-unposed costs.
3
Southeast Region and Twin Cities Area Lead at New Job Creation
During the summer, rapid growth of manufacturing and local service companies produced the
�
highest rate of new job creation for the Southeast region and Twin Cities area. Manufacturers
of food products, medical instruments and other technology-intense products expanded
iv
?r •
ww significantly in these regions. Hospitals and business service companies also posted major
expansions during this quarter. In the Northwest region, manufacturing companies continued
expansion hirings. Construction businesses expanded in all seven regions of the state.
Regional Retail trade start-ups in the Northeast, West Central and Central regions continued strong
Analysis since first quarter of 1995. Large retail merchandisers aggressively penetrated competitors'
market areas during this period.
3rd Quarter, 1995
Brisk Business Start-ups by Retail Trade Companies in Northeast, West
Central and Central Regions
3
2
Percent of
Wage and
Salary Jobs
1
0.5 0.6 07 0.4 0.6 lmiiLi
0.3 •
Zfy V St.
Statewide Northwest West Central Northeast Southwest Central Sout-east Twin Cities
Region Region Region Region Region Re;on Area
Expansions by Manufacturing and Local Service Companies Spur Job
Growth in Northwest, Southeast and Twin Cities Area
3
2
Percent of
Wage and
Salary Jobs 1 1.1 1.2 1.3 1.2
0
Statewide Northwest West Central Northeast Southwest Central Sou_-east Twin Cities
Region Region Region Region Region Re;on Area
4
Job Losses from Business Dissolutions Remained Low
Since the summer of 1994, Minnesota businesses maintained low rates of job loss from
business dissolutions in all seven regions. There were fewer manufacturing business
• dissolutions during this quarter (59 businesses) and most losses occurred in the Twin Cities
area (42 businesses). However, business closings were prevalent among small retail trade and
service companies.
Major contractions among business service companies and amusement and recreation
businesses led to a doubling of job losses in the service industry during this quarter. The ' a
Central region and Twin Cities area had the highest rates of job loss from major business
contractions.
3rd Quarter, 1995
Low Rates of Job Loss from Business Dissolutions Since Summer
1994
1 -
o _
Percent of
Wage and -0.3 -0.2 -0.3 -0.2 -0.2 -0.2 -0.2 -0.3
Salary Jobs
-1
• -2
Statewide Northwest West Central Northeast Southwest Central Southeast Twin Cities
Region Region Region Region Region Region Area
Rate of Job Loss from Business Contractions Increased in All Regions
1 --
I
0
Wage and = -
Salary Jobs
Percent of
-0.7 -0.7
-1 -0.9 - -1.0 -0.9
-2
Statewide Northwest West Central Northeast Southwest Central Southeast Twin Cities
Region Region Region Region Region Region Area
•
5
Manufacturing Expansions Impressive in Northwest Region
Manufacturing companies have expanded in this region every quarter since early 1994.
Manufacturing of transportation and recreational equipment took the lead in new job creation
from traditional resource-based manufacturing such as food products and lumber and wood •
products. This produced consistently high rates of job gains from business expansions.
The number of business start-ups and dissolutions declined from the previous quarter in this
region, while major business expansions and contractions increased. Manufacturing was the
Northwest largest source of new and major expansion jobs (278 jobs), followed by services (212 jobs),
Region retail trade (122 jobs) and constriction (117 jobs).
3rd Quarter, 1995
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(°o) No. Rate(%) No. Rate(%)
Agriculture D D D D 0 0.0 D D
Mining 0 0.0 0 0.0 D D 0 0.0
Construction 11 2.9 5 1.3 6 1.6 D D
Manufacturing 5 1.9 0 0.0 5 1.9 6 2.2
Trans., Comm., Utilities 5 1.9 D D 0 0.0 D D
Wholesale Trade 5 1.7 6 2.0 D D D D
Retail Trade 12 1.1 13 1.2 8 0.7 4 0.4
Finance, Ins., Real Estate 5 1.5 D D D D 0 0.0
Services 27 2.1 14 1.1 7 0.5 11 0.8
Public Administration D D 0 0.0 D D D D
TOTAL 3rd Qtr., 1995 80 1.8 42 1.0 32 0.7 29 0.7 •
TOTAL 2nd Qtr., 1995 85 1.9 72 1.6 30 0.7 13 0.3
TOTAL 3rd Qtr., 1994 108 2.4 57 1.3 36 0.8 25 0.6
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%)
Agriculture D D D D 0 0.0 D D
Mining 0 0.0 0 0.0 D D 0 0.0
Construction 12 0.6 8 0.4 105 4.9 D D
Manufacturing 7 0.1 0 0.0 271 2.4 82 0.7
Trans., Comm., Utilities 15 0.8 D D 0 0.0 D D
Wholesale Trade 7 0.2 6 0.2 D D D D
Retail Trade 47 0.4 54 0.5 75 0.7 39 0.4
Finance, Ins., Real Estate 2 0.1 D D D D 0 0.0
Services 45 0.2 53 0.2 167 0.8 167 0.8
Public Administration D D 0 0.0 D D D D
TOTAL 3rd Qtr., 1995 186 0.3 136 0.2 692 1.2 439 0.8
TOTAL 2nd Qtr., 1995 169 0.3 145 0.2 589 1.0 224 0.4
TOTAL 3rd Qtr., 1994 604 1.1 79 0.1 1,181 2.2 295 0.5
D = Suppressed to avoid disclosure of individual company data.
Nordnvest Region Counties: Beltrami, Cleanvater, Hubbard. Kittson, Lake of the Woods, Atahnornen, btarsha::_ L'nr-._n, Pennington.
Polk, Red Lake and Roseau.
Note: See notes on Page 11 of Report for Terms, Definitions and Sources. •
6
Business Dissolutions Cut by One-third in West Central Region
The West Central region's economy entered a stable period during the summer of 1995.
Although the region's economy slowed after two quarters of exemplary job creation
• performance, the number of business closings declined by one-third from the previous quarter,
reducing the number of terminated jobs by more than one-fourth. However, new business
formation was also slower during this quarter, causing a slight drop in the number of start-up
jobs.
The number of expansion jobs fell by 26 percent because of moderating growth among retail West Centrul
trade and service businesses. Manufacturers of lumber and wood products and paper and allied Region
products did not increase their work force during this quarter.
3rd Quarter, 1995
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(so)
Agriculture D D 4 1.8 4 1.8 D D
Mining 0 0.0 0 0.0 0 0.0 0 0.0
Construction 17 2.8 10 1.7 6 1.0 5 0.8
Manufacturing 4 1.4 0 0.0 D D D D
Trans., Comm., Utilities 9 3.3 D D D D D D
Wholesale Trade 5 1.3 D D 0 0.0 D D
Retail Trade 27 2.0 26 1.9 14 1.0 8 0.6
Finance, Ins., Real Estate 11 2.3 D D 0 0.0 D D
Services 38 2.4 18 1.2 D D 6 0.4
Public Administration D D 0 0.0 D D 0 0.0
TOTAL 3rd Qtr., 1995 121 2.2 71 1.3 34 0.6 26 0.5
TOTAL 2nd Qtr., 1995 139 2.5 106 1.9 38 0.7 22 0.4
TOTAL 3rd Qtr., 1994 112 2.0 59 1.1 52 0.9 20 0.4
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(so)
Agriculture D D 7 0.4 39 2.5 D D
Mining 0 0.0 0 0.0 0 0.0 0 0.0
Construction 35 1.1 6 0.2 160 5.2 119 3.8
Manufacturing 7 0.1 0 0.0 D D D D
Trans., Comm., Utilities 36 1.2 D D D D D D
Wholesale Trade 6 0.2 D D 0 0.0 D D
Retail Trade 133 0.8 141 0.9 198 1.3 109 0.7
Finance, Ins., Real Estate 16 0.7 D D 0 0.0 D D
Services 105 0.4 19 0.1 D D 107 0.4
Public Administration D D 0 0.0 D D 0 0.0
TOTAL 3rd Qtr., 1995 374 0.6 180 0.3 568 0.9 490 0.8
TOTAL 2nd Qtr., 1995 397 0.6 248 0.4 770 1.2 411 0.6
TOTAL 3rd Qtr., 1994 333 0.5 71 0.1 1,032 1.6 293 0.5
D = Suppressed to avoid disclosure of individual company data
West Central Counties: Becker, Clay, Douglas, Grant, Otter Tail. Pope, Stevens, Traverse and Wilkin.
• Note: See notes on Page 13 of Report for Terms, Definitions and Sources.
7
Northeast Region Businesses Maintained Lead in Rate of
Start-up Job Creation
Numerous business start-ups in retail trade and service industries helped the region maintain
the highest regional rate of start-up job creation. Construction, retail trade and service
companies continued to expand in the region. Within the service industry, tourism-related
hotels, amusement and recreation businesses and government provided most expansion jobs.
Recent pick up in activity in these sectors helped put the region back on its growth path.
Northeast The number of business dissolutions and contractions declined from the previous quarter,
Region which reduced the rate of job losses to the lowest in the state (with the southeast region).
3rd Quarter, 1995
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(°o) No. Rate(%) No. Rate(%)
Agriculture D D 0 0.0 0 0.0 D D
Mining 0 0.0 0 0.0 D D 0 0.0
Construction 36 4.7 9 1.2 7 0.9 7 0.9
Manufacturing 13 2.5 4 0.8 D D 4 0.8
Trans., Comm., Utilities 14 3.2 8 1.8 D D D D
Wholesale Trade 13 2.7 7 1.5 0 0.0 0 0.0
Retail Trade 44 1.9 34 1.5 11 0.5 9 0.4
Finance, Ins., Real Estate 12 1.7 8 1.2 0 0.0 0 0.0
Services 64 2.2 30 1.0 18 0.6 15 0.5
Public Administration D D 0 0.0 8 3.0 D D
TOTAL 3rd Qtr., 1995 202 2.4 100 1.2 53 0.6 40 0.5 •
TOTAL 2nd Qtr., 1995 201 2.3 149 1.7 44 0.5 43 0.5
TOTAL 3rd Qtr., 1994 199 2.3 145 1.7 64 0.7 46 0.5
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%)
Agriculture D D 0 0.0 0 0.0 D D
Mining 0 0.0 0 0.0 D D 0 0.0
Construction 65 1.4 7 0.2 190 4.2 179 4.0
Manufacturing 48 0.4 10 0.1 D D 94 0.8
Trans., Comm., Utilities 52 0.9 16 0.3 D D D D
Wholesale Trade 25 0.6 10 0.2 0 0.0 0 0.0
Retail Trade 303 1.2 159 0.6 128 0.5 149 0.6
Finance, Ins., Real Estate 91 2.2 6 0.1 0 0.0 0 0.0
Services 162 0.4 47 0.1 379 0.8 273 0.6
Public Administration D D 0 0.0 204 3.3 D D
TOTAL 3rd Qtr., 1995 757 0.7 255 0.2 1,049 0.9 839 0.7
TOTAL 2nd Qtr., 1995 781 0.7 277 0.2 960 0.8 655 0.6
TOTAL 3rd Qtr., 1994 561 0.5 264 0.2 1,062 0.9 987 0.9
D = Suppressed to avoid disclosure of individual company data.
Northeast Region Counties: Aitkin, Carlton, Cook, Itasca. Koochiching, Like, and St. Louis.
Note: See notes on Page 13 of Report for Terms, Definitions and Sources.
8
Manufacturing Expansions Produced Most New Jobs in
Southwest Region
Continued growth of high technology manufacturing such as industrial machinery and
• computers, electronic products and scientific instruments provided most new jobs in the
region. Food products and other resource-based manufacturing were expanding, although at
uneven rates during the past year. Constriction, retail trade and services were also large
sources of new and expansion jobs in the region.
The number of business dissolutions declined sharply from the previous quarter, particularly in Southwest
the large retail trade and service industries. Increased business start-ups and reduced business Region
dissolutions improved the region's net new job creation performance during this quarter.
3rd Quarter, 1995
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate %) No. Rate(%)
Agriculture D D D D 4 1.3 5 1.6
Mining 0 0.0 0 0.0 0 0.0 0 0.0
Construction 29 3.4 14 1.6 7 0.8 D D
Manufacturing 5 1.1 D D 11 2.4 D D
Trans., Comm., Utilities 23 4.1 16 2.8 D D D D
Wholesale Trade 15 2.3 9 1.4 D D D D
Retail Trade 46 2.4 32 1.7 5 0.3 12 0.6
Finance, Ins., Real Estate 14 1.8 10 1.3 0 0.0 0 0.0
Services 38 1.7 26 1.2 D D 8 0.4
Public Administration D D 0 0.0 10 2.6 0 0.0
• TOTAL 3rd Qtr., 1995 181 2.2 116 1.4 47 0.6 35 0.4
TOTAL 2nd Qtr., 1995 149 1.8 151 1.8 37 0.4 33 0.4
TOTAL 3rd Qtr., 1994 164 2.0 128 1.5 61 0.7 34 0.4
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate( o) No. Rate(%) No. Rate(°b)
Agriculture D D D D 74 2.6 81 2.9
Mining 0 0.0 0 0.0 0 0.0 0 0.0
Construction 60 1.3 4 0.1 155 3.2 D D
Manufacturing 7 0.0 D D 362 1.4 D D
Trans., Comm., Utilities 21 0.5 9 0.2 D D D D
Wholesale Trade 25 0.4 7 0.1 D D D D
Retail Trade 247 1.2 103 0.5 68 0.3 176 0.9
Finance, Ins., Real Estate 45 1.0 18 0.4 0 0.0 0 0.0
Services 55 0.2 44 0.1 D D 175 0.5
Public Administration D D 0 0.0 106 1.9 0 0.0
TOTAL 3rd Qtr., 1995 476 0.4 227 0.2 952 0.9 900 0.8
TOTAL 2nd Qtr., 1995 405 0.4 260 0.2 720 0.7 497 0.4
TOTAL 3rd Qtr., 1994 459 0.4 302 0.3 1,307 1.2 564 0.5
D =Suppressed to avoid disclosure of individual company data.
Southwest Region Counties: Big Stone, Chippewa, Cottonwood, Jackson, Kandiyohi. Lac Qui Parle, Lincoln, Lyon, McLeod, bleeker.
Murray, Nobles, Pipestone, Redecood. Renvifle, Rock, Swift and Yellow Medicine.
• Note: See notes on Page 13 of Report for Terms, Definitions anti Sources.
9
Large Merchandise Companies Opened Discount Stores in the
Central Region
Competition among retail merchandisers intensified in Central Minnesota with the opening of
large discount stores. The number of start-up jobs in retail trade more than doubled, causing a •
sharp increase in total start-up jobs in the region. Health services and amusement and
recreation businesses also increased new and expansion hirings during this quarter.
The Business Tracking System found declining rates of new and expansion job creation
Central
among manufacturers in this region since early 1995. Job losses from manufacturing
Region contractions also increased from previous quarters. These trends are consistent with a
Department of Economic Security finding of little net change in manufacturing employment in
3rd Quarter, 1995 the St. Cloud area during the summer of 1995 (Minnesota Labor Alarket Review, August to
October issues, 1995).
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(°o) No. Rate(°a)
Agriculture D D D D D D 4 1.2
Mining D D D D 0 0.0 0 0.0
Construction 67 3.8 27 1.5 15 0.9 7 0.4
Manufacturing 20 2.1 D D 15 1.5 11 1.1
Trans., Comm., Utilities 16 2.2 8 1.1 D D 5 0.7
Wholesale Trade 29 3.7 D D D D D D
Retail Trade 73 2.2 34 1.0 15 0.5 21 0.6
Finance, Ins., Real Estate 22 2.0 8 0.7 D D D D
Services 107 2.7 47 1.2 14 0.4 26 0.7
Public Administration D D 0 0.0 5 1.1 0 0.0
TOTAL 3rd Qtr., 1995 349 2.6 135 1.0 72 0.5 78 0.6
TOTAL 2nd Qtr., 1995 326 2.4 261 1.9 62 0.5 56 0.4
TOTAL 3rd Qtr., 1994 300 2.2 203 1.5 110 0.8 65 0.5
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%)
Agriculture D D D D D D 44 1.8
Mining D D D D 0 0.0 0 0.0
Construction 90 1.0 35 0.4 200 2.2 99 1.1
Manufacturing 37 0.1 D D 253 0.7 435 1.2
Trans., Comm., Utilities 26 0.3 4 0.0 D D 76 0.9
Wholesale Trade 74 1.0 D D D D D D
Retail Trade 582 1.3 218 0.5 188 0.4 330 0.7
Finance, Ins., Real Estate 30 0.4 7 0.1 D D D D
Services 318 0.5 63 0.1 364 0.6 852 1.3
Public Administration D D 0 0.0 47 0.7 0 0.0
TOTAL 3rd Qtr., 1995 1,182 0.6 431 0.2 1,141 0.6 1,932 1.0
TOTAL 2nd Qtr., 1995 814 0.4 495 0.3 977 0.5 869 0.5
TOTAL 3rd Qtr., 1994 1,000 0.6 310 0.2 2,251 1.2 1,157 0.6
D = Suppressed to avoid disclosure of individual eonpanp data.
Central Region Counties: Benton, Cass, Chisago, Crow {Vin,, Isanti. Kanabec, Mille[.ties, Morrison. Pine. S=:erbu^x. Stearns. Todd.
Wadena, and Wright.
Note: .See notes on Page 13 of Report for Tenns, Definitions and Sources.
10
Manufacturing and Service Businesses More than Doubled
Major Expansion Jobs
Food products and other nondurable goods manufacturing in this region expanded beyond their
• seasonal highs of the previous summer. This growth more than compensated for the slowdown
in new and expansion hirings among technology-intensive and durable goods manufacturers in
the region.
Major expansions in the service industry more than doubled the number of new jobs created
by the industry during the previous quarter, with health and business services showing strong Southeast
growth. This region had the highest rate of expansion job creation, and tied with the Northeast ' '
region for the lowest rate of job losses from business dissolutions and contractions.
Consequently, the Southeast region was this quarter's top performer for new job creation and 3rd Quarter, 199-5
retention.
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%)
Agriculture D D 6 1.3 D D 5 1.1
Mining 0 0.0 0 0.0 0 0.0 0 0.0
Construction 28 1.7 27 1.6 11 0.7 12 0.7
Manufacturing 10 1.0 5 0.5 19 1.9 17 1.7
Trans., Comm., Utilities 18 1.8 16 1.6 D D D D
Wholesale Trade 21 1.7 13 1.0 8 0.6 4 0.3
Retail Trade 89 2.2 61 1.5 21 0.5 30 0.7
Finance, Ins., Real Estate 26 1.7 23 1.5 0 0.0 D D
Services 106 2.2 71 1.5 30 0.6 19 0.4
Public Administration D D 0 0.0 14 2.7 D D
• TOTAL 3rd Qtr., 1995 313 1.9 222 1.4 111 0.7 94 0.6
TOTAL 2nd Qtr., 1995 309 1.8 299 1.8 100 0.6 82 0.5
TOTAL 3rd Qtr., 1994 336 2.0 250 1.5 132 0.8 66 0.4
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(°o) No. Rate(%) No. Rate(%)
Agriculture D D 9 0.2 D D 72 2.0
Mining 0 0.0 0 0.0 0 0.0 0 0.0
Construction 50 0.5 20 0.2 156 1.6 143 1.5
Manufacturing 17 0.0 7 0.0 1,358 2.1 660 1.0
Trans., Comm., Utilities 25 0.2 10 0.1 D D D D
Wholesale Trade 308 2.3 63 0.5 207 1.6 115 0.9
Retail Trade 465 0.8 245 0.4 280 0.5 433 0.8
Finance, Ins., Real Estate 27 0.3 34 0.3 0 0.0 D D
Services 278 0.3 115 0.1 1,207 1.3 432 0.5
Public Administration D D 0 0.0 161 1.6 D D
TOTAL 3rd Qtr., 1995 1,205 0.4 503 0.2 3,579 1.3 1,987 0.7
TOTAL 2nd Qtr., 1995 889 0.3 750 0.3 1,840 0.7 1,381 0.5
TOTAL 3rd Qtr., 1994 1,295 0.5 447 0.2 3,324 1.2 1,110 0.4
D = Suppressed to avoid disclosure of individual company data.
Southeast Region Counties: Blue Earth, Brown, Dodge, Faribault, Fillmore, Freebont, Goodhue, Houston, Le Sueur, A/artin, ,tlov,e-.
Nicollet, Obrtsted, Rice, Sibley, Steele, Wabasha, Waseca, Watomvan, and Winona.
Note: See notes out Page 13 of Report for Terms, Definitions and Sources.
I
Twin Cities' Businesses Created Two of Every Three Major
Expansion Jobs
Business services and health services in the Twin Cities area more than doubled their expansion
hirings during this quarter. Retail trade and finance, insurance and real estate businesses also
showed impressive growth during this quarter. Among manufacturers, the medical instruments and •
supplies group led the expansion hirings, followed by industrial machinery and computers,
fabricated metals, and printing and publishing. The Twin Cities area has 94 percent of total
Twin Cities employment in the fast growing medical instruments and supplies group, helping the Twin Cities
Area create two of every three major expansion jobs in the state. On the other hand, the St. Cloud area
in Central Minnesota has a large concentration of ophthalmic goods manufacturing.
3rd Quarter, 1995 Residential development in several Twin Cities suburbs fueled strong growth among general building
contractors and special trade contractors. Growth among finance and mortgage companies was
also induced by improved consumer demands for housing, furniture and other consumer durables.
Number of Business Establishments
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate(%) No. Rate(°o) No. Rate(%)
Agriculture 32 3.0 D
Mining 0 0.0 p p 15 1.4 D D
D 0 0.0 D D
Construction 181 3.2 113 2.0 83 1.5
Manufacturing 91 1.9 42 0.9 82 1.7 51 1.0
Trans., Comm., Utilities 78 3.2 46 1.9 28 1.2 22 0.9
Wholesale Trade 184 2.5 108 1.5 31 0.4
Retail Trade 328 2.6 278 2.2 116 0.9 138 1 .1
Finance, Ins., Real Estate 214 2.9 114 1.5 47 0.6 38 0.5
Services 967 3.6 398 1.5 226 0.8 156 0.6
Public Administration 0 0.0 D D 13 2.7 D D
TOTAL 3rd Qtr., 1995 2,075 3.0 1,113 1.6
641 0.9 496 0.7
TOTAL 2nd Qtr., 1995 1,766 2.5 1,621 2.3 507 0.7 380 0.5
TOTAL 3rd Qtr., 1994 1,999 2.9 1,363 2.0 556 0.6 419 0.6
Number of Jobs
Births Dissolutions Expansions Contractions
Industry No. Rate(%) No. Rate % o
Rate(%) No. Rate(/,) No. Rate(%)
Agriculture 81 1.0 D D 175 2 2 D
Mining 0 0.0 p D
D 0 0.0 D D
Construction
234 0.5 191 0.4 1,624 3.2 1,067 2.1
Manufacturing 926 0.4 227 0.1 2,077 0.8 1,863 0.8
Trans., Comm., Utilities 151 0.2 162 0.2 654 0.9 630 0.8
Wholesale Trade 329 0.3 405 0.4 502 0.5 421 0.4
Retail Trade 2,478 1.0 1,281 0.5 2,184 0.9 2.514 1.0
Finance, Ins., Real Estate 392 0.4 221 0.2 1,045 1.0 1,168 1.1
Services 2,183 0.5 1,061 0.2 7,083 1.5 ?.544 0.8
Public Administration 0 0.0 D D 312 0.9 p
D
TOTAL 3rd Qtr., 1995 6,774 0.5 3,550 0.3 15,656 1.2 1'.370 0.9
TOTAL 2nd Qtr., 1995 5,457 0.4 3,457 0.3 10,633 0.8 -.098 0.6
TOTAL 3rd Qtr., 1994 6,621 0.5 2,786 0.2 14,497 1.1 :.925 0.8
D= Suppressed to avoid disclosure of individual sampans data.
Turin Cities Region Counties: Anoka, Caner. Dakota, Hennepin. Ramses, Scott mui 4Vasiwtn t a.
Note. See notes on Page 13 of Reporr fur Terms. Definitions and Sources.
•
12
Greater Minnesota Continued to Share Job Growth with
Twin Cities Area
• Construction business start-ups remained strong in Greater Minnesota: two of every three new
construction jobs in the state were created in this area. More than 60 percent of start-up jobs
in transportation, communication and utilities, and wholesale trade were created in Greater
Minnesota.
Greater Minnesota had a 53 percent share of new jobs from major manufacturing expansions,
with the new jobs concentrated in food and kindred products, lumber and wood products, and
transportation and recreational equipment. The growth of recreational equipment manufacturing 1
continued strong in Greater Minnesota since early 1994. and
Major expansion among constriction companies was prevalent in the Twin Cities area 3rd Quarter, 1993
(62 percent share of expansion jobs). Also, two of every three new and expansion jobs in the
large services and retail trade industries were created in the Twin Cities area.
Terms and Definitions
The following are definitions of sonte fundamental terms used in this report:
• Business Establishment: As defined be the U.S. Department of Cormherce, a separate plant location or work-site of a
company or enterprise. Large companies may have several establishments in various locations around Minnesota.
Dissolution: The death of a Minnesota business establishment is assumed to have occurred when that establishment both
did not report to the Minnesota Unemployment Insurance Program (U-1) for two consecutive quarters, and when the
establishment cannot be fnind elsewhere in the U-1 records. Businesses which were sold or merged with other
establishments, "-heir such sale or merger resulted in a name and identification number change, ma y occasionally be
erroneously reported cis dissolutions. Apparent dissolutions of manufacturing companies are fitrther verified by business
termination data from Department Depanent of Economic Sec•uritti(DES),and through fallow-up surreys administered by DTED.
Birth: Tire start-up of a new company is determined to have occurred when the establishment first reports to the U-1
Program. Stiles or mergers of companies mar occasionally be erroneously reported as births. when such activity resulted in
a company name change. For rrranufacutring companies, DES's records and various industry sources are used to identify
such business sales and mergers, which are then excluded front this category.
Expansion: The DTED Business Tracking System reports only significant business expansions. A significant expansion
occurs when a business establishment with over 19 employees increases employment by 25 percent or more over two
quarters; or when any establishment adds 50 or more employees over two quarters. For seasonal businesses such as
outdoor recreation and tourism,job growth is calculated front the same quarter of the previous year.
Contraction: Tire DTED Business Tracking System reports only significant business contractions. A significant contraction•,
occurs when a business establishment with over 19 employees decreases employment by 25 percent or more over nvo
quarters: or when an• establishment terminates 50 or more employees over nvo quarters. For seasonal businesses, job
decline is calculated from the same quarter of the previous year.
Sources For This Report
Tire DTED Business Tracking System is based on information and data files provided by the Research Division and Tae
Division of the Minnesota Department of Economic Security, including quarterly employer reports to the Unemployment
Insurance Program (ES202), St. Paul, Minnesota. The data covers approximately 97 percent of all nonagricultural wage
and salary employment in h/innesota. Those excluded from ES202 are the self-employed, railroad workers, most farmers.
• conntissian agents, students, religious workers and elected government officials.
Six months after the close of each quarter. DES provides DTED with raw data on employment and wages by business
establishment for that quarter. This report is produced one to two months after DTED receives these data. Hence, the
13
a.
The Department of Trade and Economic Development gratefully .
acknowled-es the assistance of the Research and Statistics Office and
Data Proce.ssin_ Office of the Department of Economic Securit_� in
decelopin_ the DTED Business Tracking S�,,tem.
The DTED Business Tracking report is Puhlished iluarterk h� the
Minnesota Department of Trade and Econonli Development in
cooperation � ith the Minnesota Department of Economic Sccurit%.
Senior Economist: Ernesto C. Vene La;. Ph.D.
,�t t ;41
Data Sy stems: Jason Saari
` NlanUfacturin, SLIIAV}: Jennifer flaire
For more information or additional copies call 612-296-1775.
For TTY/TDD userS on(v: dial 1-500-627-,529 and ask for 612/282-6142.
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'�. PAID
Permit No. 171
•s , St. Paul, Minn.
Minnesota Department or
Trade and Economic Development
500 Metro Square
121 7th Place East
St. Paul, YIN 55101-2146
Mr, Kevin Ringwald
City Of Arden Hills
1450 West Highway 96
ARDEH HILLS MN 55112
•