Southwest Minnesota is a national leader in agricultural production, and renewable energy.
The region's thriving manufacturing sector includes food processing, machinery, printing, metal products, and computers and electronic products.
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12/19/2023 9:00:00 AM
Luke Greiner, Amanda O'Connell
There's no snow on the ground yet, but the wind is still blowing across the prairie in Southwest Minnesota, as it often does thanks to the geography of the region and the prevailing winds. Southwest Minnesota is home to over half of the state's employment in Wind Electric Power Generation. Home to the Buffalo Ridge, a large expanse of rolling hills that runs through Lincoln, Pipestone, Murray, Nobles, and Pipestone, Wind Energy jobs are 8.5 times more concentrated in Southwest than the state as a whole (see Table 1).
| Table 1. Southwest Minnesota Industry Employment Statistics, Qtr. 2 2023 | |||||||
|---|---|---|---|---|---|---|---|
| NAICS Code | Industry Title | Number of Firms | Number of Jobs | Location Quotient | Avg. Annual Wage | Change in Jobs, 2022-2023 | |
| Number | Percent | ||||||
| 0 | Total, All Industries | 12,896 | 174,530 | 1.0 | $50,960 | +2,426 | +1.4% |
| 22 | Utilities | 76 | 933 | 1.1 | $101,712 | +30 | +3.3% |
| 2211 | Electric Power Generation, Transmission & Distribution | 50 | 790 | 1.1 | $106,288 | +26 | +3.4% |
| 22111 | Electric Power Generation | 17 | 309 | 1.1 | $108,368 | +11 | +3.7% |
| 221112 | Fossil Fuel Electric Power Generation | 2 | 86 | 0.8 | $83,928 | -2 | -2.3% |
| 221115 | Wind Electric Power Generation | 10 | 180 | 8.5 | $121,004 | +11 | +6.5% |
| 22112 | Electric Power Transmission, Control & Distribution | 33 | 481 | 1.1 | $104,936 | +16 | +3.4% |
| 811310 | Commercial & Industrial Machinery & Equipment Repair & Maintenance | 109 | 463 | 2.4 | $47,268 | +12 | +2.7% |
| Source: DEED Quarterly Census of Employment & Wages | |||||||
In the second quarter of 2023, there were 10 establishments providing 180 jobs in Wind Electric Power Generation in Southwest Minnesota, with an annual average wage of just over $121,000. That made it one of the highest paying industry subsectors in the region, paying well over double the average across all industries, which was just under $51,000 per year. In addition, Southwest also has a high concentration of employment in wind energy repair services, which are classified in Commercial & Industrial Machinery & Equipment Repair & Maintenance, with 463 jobs at 109 establishments in second quarter 2023. The subsector has lower wages, but has also seen recent growth.
Interestingly, the region now has more jobs in Wind Energy than in Fossil Fuel Electric Power Generation, which was down to 86 jobs in 2023. While Fossil Fuel jobs are down by nearly -34% over the past decade, Wind Energy jobs are up over 25% from 2012 to 2023. The region also has seen a strong increase in Electric Power Transmission, Control & Distribution, which added 16 jobs in the past year.
In sum, these renewable energy-related subsectors comprise a small but fast-growing and high-paying part of Southwest Minnesota's economy. The main occupations in demand in Wind Energy in Southwest Minnesota include:
Contact Luke Greiner at luke.greiner@state.mn.us or Amanda O'Connell at amanda.oconnell@state.mn.us.
