10/11/2019 3:00:00 PM
Commissioner Steve Grove
Manufacturing is a bedrock of Minnesota's economy. In 2018, manufacturing contributed more than $52 billion to the state's GDP, the second largest contributing industry. Minnesota manufacturers also paid the second largest payroll in 2018 ($21.6 billion) and had an average wage that was 15% higher than the average for all other industries. And each manufacturing job in Minnesota generates another 3.24 jobs in other segments of the economy like sales, marketing, shipping and professional services.
I was thrilled to join Governor Walz and Lt. Governor Flanagan earlier this month to highlight Minnesota Manufacturing Week. We toured Rosenbauer Minnesota, a production center in Wyoming that manufactures fire service trucks, and heard more about their efforts to engage young people as part of their job training programs. I also joined Lt. Governor Flanagan and Minnesota Office of Higher Education Commissioner Dennis Olson at Wyoming Machinery, a precision sheet metal manufacturer who is leading on innovative ideas to attract workers in this tight market.
Coming out of these visits, a couple themes stuck out to me — we want to help share Minnesota's manufacturing story with young adults looking for well-paying jobs. And while many of our state's manufacturers are having a hard time filling more than half of their positions, more people are finding opportunities through employer training. As DEED commissioner, I am committed to supporting industry job training so that all Minnesotans can attain the skills they need for good employment.
There are many opportunities in manufacturing right now. Results from the most recent quarterly survey of job vacancies in Minnesota show unfilled openings soared to 146,513 in the second quarter of 2019 – the highest ever recorded and much higher than the number of unemployed people in the state. More than 7% of the unfilled positions were in the manufacturing sector.
DEED's 2019 Hiring Difficulties in Manufacturing Survey reports 62% of job vacancies in skilled production occupations posted by manufacturing firms in 2018 were difficult to fill. Of those hard-to-fill positions, 68% drew ten or fewer applicants. Providing a combination of internal and external training to new hires and current employees is a best practice for attracting new employees and bridging skills gaps. Another best practice: reviewing advertising and recruiting methods and making improvements to more effectively reach their target audience.
Although Minnesota Manufacturing Week has officially ended, Manufacturing Month continues, and there are many manufacturing tours and events taking place over the next few weeks. Please join us and help spread the message of the power of Minnesota's manufacturing industry!
– Commissioner Steve Grove
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economy