Keeping Manufacturing Strong
State economists estimate every new manufacturing job spins off nearly two supporting jobs in other businesses.
BY ANDREA LAHOUZE
In an uncertain market, manufacturing’s strength should provide enduring stability to Minnesota’s economy, especially in Alexandria and its neighboring communities, according to Bob Kill, president of Enterprise Minnesota. On Oct. 21, 2008, Kill spoke to 150 Alexandriaarea business leaders at the third annual Manufacturing and Support Industries Breakfast, held at Alexandria Technical College and sponsored by the Alexandria Area Economic Development Commission.
“Manufacturing provides an integral foundation of Minnesota’s economy,” Kill says. “Everybody has a stake and will benefit in its success, and everybody will be hurt by its failures.”
Manufacturing provides Minnesota workers with better paying jobs. The average manufacturing employee earns almost 20 percent more per year than other private sector employees in Minnesota.
It also benefits workers outside the industry. Minnesota’s manufacturing industry alone is composed of 9,400 companies. But the multiplier effect of manufacturing jobs is much larger. State economists estimate that every new manufacturing job spins off nearly two supporting jobs among suppliers and other businesses in their chain.
Kill quoted a recent Manufacturing Extension Partnership study that found just 20 percent of America’s manufacturers are fully evolved and exploiting their potential, and cited Alexandria as home to a handful of Minnesota’s “highly sophisticated” and “forward-thinking” manufacturers, including Alexandria Extrusion Company, Douglas Machine Inc. and Donnelly Custom Manufacturers. He says the mission of Enterprise Minnesota is to help every manufacturer in the state to be in that top 20 percent.
“The top-20-percenters won’t be caught flat-footed by the impending worker shortages,” Kill says. “They don’t fear the growing influence of China and India. They don’t allow their products to be commoditized by purchasing agents at their OEM customers. And, the top-20-percenters don’t fret about recession. They look within it for long-term opportunities.”