October is Manufacturing Month in Minnesota. That's important to highlight because Manufacturing is Southeast Minnesota's second largest employing industry, providing 36,380 jobs in 2023. At 15%, Southeast has the third highest concentration of Manufacturing employment of the six regions in the state, compared to just over 11% Manufacturing employment for the state as a whole. In sum, Southeast Minnesota manufacturers provided about $2.63 billion payroll in 2023, making it the second largest industry in terms of payroll, behind Health Care & Social Assistance. Average annual wages in Manufacturing were $72,228, which was $8,850 higher than the total across all industries.

Food Manufacturing stands out as the dominant subsector in Southeast Minnesota, boasting 10,352 jobs at 104 establishments and generating nearly $700 million in payroll. The region's significance in this sector is underscored by its substantial 21.9% share of statewide employment in Food Manufacturing. Within this sector, Animal Slaughtering & Processing leads with 5,139 jobs, followed by Grain & Oilseed Milling with 1,773 jobs. Dairy Product Manufacturing contributes 1,264 jobs, while Fruit & Vegetable Preserving & Specialty Food Manufacturing accounts for 1,125 jobs.

Machinery Manufacturing is the second-largest sector in the region, with 4,403 jobs across 69 establishments in 2023. Like Food Manufacturing, this sector shows a higher concentration in Southeast Minnesota compared to the state average. The third and fourth largest sectors are Computer & Electronic Product Manufacturing and Fabricated Metal Product Manufacturing, providing 4,306 and 4,034 jobs respectively. Collectively, these four leading sectors are the backbone of the region's Manufacturing industry, accounting for nearly two-thirds (63.5%) of total Manufacturing employment in Southeast Minnesota (see Table 1).

New employment projections have been released for the Manufacturing industry in Southeast Minnesota (Table 2), providing insights into the region's job outlook. Comparing Southeast Minnesota to the state, the region's projected growth is slightly lower than the state. Minnesota's total employment across all industries is expected to increase by 4.6%, while Southeast Minnesota projects a 4.5% increase. In the Manufacturing sector specifically, Minnesota anticipates a 3.4% growth, which is just slightly lower than Southeast Minnesota's projected 3.5% growth.

At that rate, manufacturers in the region would be expected to add 1,253 jobs over the ten-year period from 2022 to 2032. The subsector with the greatest increase in employment (Total Change) is Food Manufacturing, which is projected to add 452 jobs, representing a 4.6% increase. On the other end of the spectrum, the Computer & Electronic Product Manufacturing subsector is expected to see the largest decline, losing 116 jobs, a 2.7% decrease. It's worth noting that while some subsectors like Beverage & Tobacco Product Manufacturing show high percentage growth (18.9%), the total job additions are relatively small (34 jobs) due to their smaller base employment.

The Manufacturing industry in Southeast Minnesota continues to be a vital component of the region's economy, providing substantial employment. Overall, the industry is projected to experience modest growth in the coming decade. With a slightly higher projected growth rate compared to the state, Southeast Minnesota's Manufacturing sector shows resilience and potential for continued development. For those seeking more comprehensive Manufacturing data and insights for Southeast Minnesota, additional information can be found in the Southeast Minnesota Manufacturing report.

You can find a listing of career exploration and hiring events taking place throughout the month of October, in recognition of Manufacturing Month.

For More Information

Contact Amanda O'Connell, Labor Market Analyst, at amanda.oconnell@state.mn.us.