The presence of such industry powerhouses as Polaris, Arctic Cat and New Flyer make Northwest Minnesota a hub of transportation equipment manufacturing.
From wheat and potatoes to soybeans and sugar beets, the region is a major producer and processor of food staples and specialty agricultural products.
Want the freshest data delivered by email? Subscribe to our regional newsletters.
9/27/2021 9:00:00 AM
Cameron Macht
With around 28,000 jobs at more than 820 establishments, Manufacturing is one of the most important industries in Northwest Minnesota. In fact, about one in every seven jobs in Northwest are in Manufacturing, making it the second largest employing industry behind only Health Care & Social Assistance. Manufacturing also provided roughly $1.5 billion in total payroll in the region in 2020, with average annual wages of just under $55,000. That was nearly $10,000 higher than the total of all industries in the region, where annual wages averaged $45,200 in 2020.
The pandemic recession affected the economy across the state, and while it had a smaller impact in Northwest Minnesota, the region still lost jobs from the first to the second quarter of 2020, cutting nearly 14,000 jobs over the quarter. Since then, the region has steadily built employment back up, with Manufacturing helping to lead the charge, regaining 1,375 jobs from the second quarter of 2020 to the first quarter of 2021, a 5.1% increase (see Figure 1).
The largest manufacturing sector in Northwest Minnesota is Food Manufacturing, which had nearly 6,000 jobs at 95 firms in 2020. As consumer preferences and needs changed during the pandemic, employment actually increased at Food Manufacturing over the year, with the region adding just over 50 jobs in 2020. With a range of entry-level and higher skilled jobs, Food Manufacturing offers average annual wages just above $54,000.
With 3,935 jobs at 158 shops, Fabricated Metal Product Manufacturing is the second largest manufacturing sector in the region. This includes Machine Shops that supply the region's other large and distinguishing sectors: Transportation Equipment Manufacturing, which had about 3,850 jobs at 31 employers, and Machinery Manufacturing, which had just over 3,800 jobs at 98 establishments. Both of those sectors have high location quotients in Northwest Minnesota, providing a competitive advantage over other parts of the state. The region also has a large and successful Wood Product Manufacturing sector, with 3,171 jobs at 70 firms (see Table 1).
| Table 1. Northwest Minnesota Manufacturing Employment Statistics, 2020 | Annual Average, 2020 | Average Annual Wages | Change in Jobs, 2019-2020 | ||
|---|---|---|---|---|---|
| Number of Firms | Number of Jobs | Number | Percent | ||
| Food Manufacturing | 95 | 5,969 | $54,028 | +52 | +0.9% |
| Fabricated Metal Product Manufacturing | 158 | 3,935 | $51,064 | -229 | -5.5% |
| Transportation Equipment Manufacturing | 31 | 3,848 | $58,136 | -489 | -11.3% |
| Machinery Manufacturing | 98 | 3,809 | $64,220 | -175 | -4.4% |
| Wood Product Manufacturing | 70 | 3,171 | $55,432 | -236 | -6.9% |
| Printing & Related Support Activities | 51 | 1,072 | $38,272 | -190 | -15.1% |
| Plastics & Rubber Products Manufacturing | 32 | 947 | $48,828 | +25 | +2.7% |
| Computer & Electronic Product Manufacturing | 17 | 946 | $62,140 | -3 | -0.3% |
| Nonmetallic Mineral Product Manufacturing | 51 | 914 | $64,844 | -54 | -5.6% |
| Miscellaneous Manufacturing | 87 | 806 | $41,444 | -28 | -3.4% |
| Furniture & Related Product Manufacturing | 61 | 611 | $46,592 | -36 | -5.6% |
| Primary Metal Manufacturing | 7 | 570 | $56,524 | -78 | -12.0% |
| Chemical Manufacturing | 11 | 420 | $61,984 | +8 | +1.9% |
| Textile Product Mills | 16 | 348 | $34,060 | -44 | -11.2% |
| Beverage & Tobacco Product Manufacturing | 22 | 255 | $26,676 | -1 | -0.4% |
| Electrical Equipment, Appliance, & Component Mfg. | 5 | 140 | $55,432 | +5 | +3.7% |
| Apparel Manufacturing | 4 | 14 | $12,341 | -4 | -22.2% |
| Source: DEED Quarterly Census of Employment & Wages | |||||
Jobseekers who are considering a career path or looking to get back into the labor market in Northwest Minnesota will find a tremendous amount of opportunity in the Manufacturing industry. According to Job Vacancy Survey results from the fourth quarter 2020, there were nearly 1,200 manufacturing openings, which was the second highest number of manufacturing openings on record in the region. Manufacturing jobs in the region are often living wage jobs: median wage offers topped $15 per hour and 80% of the jobs offered health care insurance. Both wages and percentage of jobs offering health insurance are higher for manufacturing job openings than the total of all openings across all industries, at $14.26 and 58%, respectively.
Contact Cameron Macht at 320-441-6596.
