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.
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9/15/2023 9:00:00 AM
Anthony Schaffhauser
Manufacturing is a primary driver of Northwest Minnesota's economy and labor market. What's more, manufacturing's strong growth in both employment and wages is generating well-paying career opportunities in the region.
In terms of the number of jobs, Manufacturing is the second largest industry sector in Northwest Minnesota and statewide. Manufacturing accounts for 13.5% of Northwest jobs, a greater percentage than Minnesota's 11.3%. Manufacturing's impact is even more pronounced in terms of wages. Manufacturing pays out 16.7% of total Northwest payrolls for all industries. This is a significantly larger percentage than the statewide share of 12.5%.
Demand for workers in the Manufacturing sector remains strong. Both jobs and wages have trended up over the past decade (Figure 1). Job growth took a slight breather in 2016, but resumed the upward trend through 2019. Like all industries, Manufacturing employment dropped substantially in the 2020 COVID-19 Pandemic Recession. However, jobs came back strong by 2022, even topping 2019 employment by 1.2%. In contrast, total employment for all industries remains 0.7% below 2019.
Manufacturing employment grew by 931 jobs from 2020 to 2021 (3.3%), and another 936 jobs from 2021 to 2022 (3.2%). This was the fastest annual job growth in manufacturing over the past decade. As impressive as this is, the Job Vacancy Survey results suggest that Manufacturing could have added even more jobs if all vacancies were filled.
In second quarter 2021, there were 1,988 job vacancies in the Manufacturing industry, setting a record high. In 2022 there were 1,851 vacancies, which is the second highest number back to 2001 when the Job Vacancy Survey started. It is also notable that only 29% of the 2022 Manufacturing industry vacancies required one or more years of experience, compared to 39% of vacancies for all industries. Yet the median wage offer was $18.25 in Manufacturing, compared to $17.06 for all vacancies.
Indeed, Manufacturing pays higher average wages: average annual wages were $61,360 compared to $47,892 for all industries in 2022. Average Manufacturing wages in Northwest Minnesota have also been growing faster than statewide. From 2019 to 2020, Northwest Manufacturing average wages grew at a 5.2% annual growth rate, compared to a 3.2% annual growth rate statewide. This wage growth in Northwest Minnesota is visually apparent from the sharply upsloping average wages in Figure 1. Prior analysis shows that this wage growth has outpaced inflation.
Since averages do not necessarily reflect individual situations, let's get more specific. What careers that are in high demand in Manufacturing would pay above the basic-needs cost of living in the Northwest? The Cost of Living tool estimates an annual cost of $49,320 for a three-person family with two partnered adults and one child. This is assuming one adult is working full-time and one part-time (but the tool allows one to select other variations). Note that "basic" means it includes nothing for savings, recreation, or any upgrade from the bare necessities. So, what kinds of Manufacturing jobs cover these basic costs entirely, leaving the second-earner's wages for savings, fun, and upgrades?
Table 1 displays several examples of careers in the Manufacturing industry from the Occupations in Demand Tool. To narrow down the list, I only included those requiring a two-year degree or less education. However, the tool allows sorting and filtering, so use it to match your interests.
| Table 1: Selected Northwest Minnesota Occupations in Demand Found in the Manufacturing Industry | ||||
|---|---|---|---|---|
| SOC Code | Job Title | Median Wage | Education Requirements | Training Requirements |
| 17-3026 | Industrial Engineering Technologists & Technicians | $53,775 | Associate's degree | Moderate term on the job training |
| 17-3023 | Electrical & Electronic Engineering Technologists & Technicians | $65,561 | Associate's degree | Unavailable |
| 49-9041 | Industrial Machinery Mechanics | $64,774 | Postsecondary non-degree award | Long term on the job training |
| 49-9043 | Maintenance Workers, Machinery | $60,274 | High school diploma or equivalent | Long term on the job training |
| 51-1011 | First-Line Supervisors of Production & Operating Workers | $64,377 | High school diploma or equivalent | Short term on the job training |
| 51-9061 | Inspectors, Testers, Sorters, Samplers, & Weighers | $49,353 | High school diploma or equivalent | Short term on the job training |
| 51-9162 | Computer Numerically Controlled Tool Programmers | $57,790 | Postsecondary non-degree award | Long term on the job training |
| 51-4034 | Lathe & Turning Machine Tool Setters, Operators, & Tenders, Metal & Plastic | $50,345 | High school diploma or equivalent | Short term on the job training |
| 51-9032 | Cutting & Slicing Machine Setters, Operators, & Tenders | $51,342 | High school diploma or equivalent | Short term on the job training |
Contact Anthony Schaffhauser at anthony.schaffhauser@state.mn.us.
