Southeast Minnesota is a health care and agricultural powerhouse. The region is home to the renowned Mayo Clinic and some of the world's most recognized food companies and brands.
Advanced manufacturing is especially strong here, with machinery, chemicals, and electronics among the top products.
Want the freshest data delivered by email? Subscribe to our regional newsletters.
9/15/2023 9:00:00 AM
Amanda O'Connell
The Manufacturing industry in Southeast Minnesota presents many job opportunities for job seekers, with various in-demand occupations that provide wages that outpace the region's cost of living. In the second quarter of 2022, Southeast Minnesota had 2,432 job vacancies in Manufacturing. That was the second highest number ever recorded, and was nearly double the number of openings posted by manufacturers in 2019, prior to the pandemic.
This surge in job opportunities underscores the growing need for skilled workers in the Manufacturing industry. It presents opportunities for job seekers to embark on or advance their careers in this high-paying sector, promising both personal fulfillment and economic advancement. In addition, 8% of these positions were part-time, 25% required post-secondary education, and 47% sought candidates with at least one year of experience. This means that job seekers with varying levels of education or experience and scheduling flexibility needs can find opportunities immediately, and move up with training.
The Manufacturing sector particularly excels in offering attractive career options, with occupations like Assemblers & Fabricators, First-Line Supervisors of Production & Operating Workers, Production Worker Helpers, Slaughterers & Meat Packers, Cabinetmakers & Bench Carpenters, and Welders, Cutters, Solderers & Brazers, all providing median hourly wages ranging from $18.69 to $32.17. The hourly wage needed to sustain a basic needs cost of living was $16.79 for a typical family (two parents and one child) in Southeast Minnesota, and $15.25 for a single person without dependents.
With more than 36,000 jobs, Manufacturing is the second largest industry in Southeast Minnesota, accounting for 15% of the region's total employment. In 2022, 662 manufacturing firms provided over $2.5 billion in total payroll and an annual wage of $69,368, which is $8,189 more than the average across all industries (see Table 1).
| Table 1. Industry Statistics, Southeast Minnesota, 2022 | |||||
|---|---|---|---|---|---|
| NAICS | Industry Title | Number of Establishments | Average Employment (Number of Jobs) | Avg. Annual Wage | Total Payroll |
| 0 | Total, All Industries | 13,373 | 239,872 | $61,179 | $14,681,605,177 |
| 31 | Manufacturing | 662 | 36,059 | $69,368 | $2,501,476,195 |
| 311 | Food Manufacturing | 105 | 9,904 | $64,064 | $635,192,937 |
| 334 | Computer & Electronic Product Manufacturing | 28 | 4,334 | $113,516 | $491,964,118 |
| 333 | Machinery Manufacturing | 70 | 4,294 | $64,168 | $275,791,909 |
| 332 | Fabricated Metal Product Manufacturing | 115 | 4,086 | $61,412 | $251,071,762 |
| 327 | Nonmetallic Mineral Product Manufacturing | 46 | 2,224 | $65,780 | $146,382,520 |
| 326 | Plastics & Rubber Products Manufacturing | 23 | 1,550 | $54,080 | $83,836,357 |
| 339 | Miscellaneous Manufacturing | 62 | 1,470 | $54,964 | $80,874,142 |
| 337 | Furniture & Related Product Manufacturing | 44 | 1,458 | $59,228 | $86,333,561 |
| 325 | Chemical Manufacturing | 25 | 1,393 | $90,272 | $125,961,008 |
| 323 | Printing & Related Support Activities | 41 | 1,168 | $52,936 | $61,863,480 |
| 314 | Textile Product Mills | 13 | 596 | $71,656 | $42,735,293 |
| 336 | Transportation Equipment Manufacturing | 15 | 558 | $60,372 | $33,682,799 |
| 322 | Paper Manufacturing | 7 | 508 | $65,676 | $33,346,757 |
| 321 | Wood Product Manufacturing | 26 | 483 | $48,828 | $23,506,200 |
| 331 | Primary Metal Manufacturing | 11 | 471 | $65,468 | $30,910,273 |
| 335 | Electrical Equipment, Appliance Manufacturing | 4 | 322 | $63,388 | $20,320,567 |
| 312 | Beverage & Tobacco Product Manufacturing | 21 | 179 | $16,120 | $2,906,271 |
| 315 | Apparel Manufacturing | 4 | 155 | $38,220 | $5,851,491 |
| Source: Quarterly Census of Employment and Wages | |||||
The largest subsectors include Food Manufacturing with 9,904 jobs at 105 firms, Computer & Electronic Product Manufacturing with 4,334 jobs and 28 firms, Machinery Manufacturing with 4,294 jobs and 70 firms, and Fabricated Metal Product Manufacturing with 4,086 jobs with 115 firms. These four subsectors comprise almost two-thirds (62.7%) of total employment in the Manufacturing industry in Southeast Minnesota.
Manufacturing employment in Southeast Minnesota has fluctuated from 2000 to 2022 along with different economic cycles. In 2000, there were about 49,500 jobs in the Manufacturing industry. However, there was a notable drop occurring during the 2001 recession, losing about 8,000 jobs, and then again during the Great Recession in 2008 and 2009, when the region cut about 4,000 manufacturing jobs.
Following those declines was a slow but steady recovery, with employment levels showing some stabilization and brief periods of growth between 2010 and 2019, though jobs remained below the peak back in 2000. In 2020, the COVID-19 Pandemic Recession had a brief but substantial impact, leading to a dip of about 2,500 jobs. There has been a small gain in jobs from 2021 to 2022, though they again remain below the early 2000s and pre-pandemic levels (see Figure 1).
The Manufacturing industry in Southeast Minnesota has experienced fluctuations in employment over the past two decades, with recent challenges due to the COVID-19 pandemic. Nevertheless, Manufacturing remains a vital part of the region's economy, offering competitive wages and promising career opportunities for job seekers.
Contact Amanda O'Connell, Labor Market Analyst, at amanda.oconnell@state.mn.us.
