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Workforce Statewide Presentation 2012
1. Grow Minnesota!
… Generally: ”Eyes & Ears” on the
Development & Growth of Our Economy
…Today’s Focus: Workforce: What We’re Hearing
2. What Is Grow MN!?
• Private sector economic development…
…strategic links to public sector
• MN Chamber sponsored
• 59 local chamber partners
• 3 parts to the program:
– Business retention
– Business assistance
– Business expansion
3.
4. Grow Minnesota! Visit – 3 Parts
• Say, “Thank you!”
• Ask, “How can we help your business?”
• Ask, “How to make business environment
better?”
5. Grow MN! 2010-2011 Results
• 990 one-on-one business retention visits
• 23% are revisits
• 122 firms assisted, affecting 4,900 jobs…
…15 expansions
• BusinessConnection:
– 940 on line searches completed
– 50 email questions answered
6.
7. Sales & Profitability -- Last 2 Years
Sales (2010-2011) Profitability (2010-2011)
70.00% 40.00%
60.00% 35.00%
30.00%
50.00%
Percentage
25.00%
Percentage
40.00%
20.00%
30.00%
15.00%
20.00% 10.00%
10.00% 5.00%
0.00%
0.00%
Increased Relatively Decreased Fluctuated
Increased Relatively Decreased Fluctuated
Stable Widely
Stable Widely
Responses
Responses
State (N=582) St. Cloud (N=49) State (N=541) St. Cloud (N=48)
8. Businesses Creating New
Products in the Last Two Years
78%
76%
74%
72%
70%
Percent
68%
66%
64%
62%
60%
58%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Fiscal Year
9. Expansions – Next Two Years
• 2010: 147 (25%) Current Community 66%
In MN 15%
• 2011: 198 (29%)
Another State 9%
Another Country 2%
• Where: 2011
Don’t Know 8%
10. Workforce: A “New Normal”
• Jobs are being created…
• But, they are different…
…Mismatch of current skills & current openings
• Persistent problem…growth or recession
11. Expected Job Growth, Next Year
70%
66%
60%
52%
50%
4 1%
Percent
40%
2009-2010
30% 27%
2010-2011
20%
10 %
6%
4%
3%
2%
0%
Unsure Stable Increase Decrease
Responses 2009-10 N = 600
2010-11 N = 488
13. Percentage
Pr
ec
i sio
n
0%
10%
20%
30%
40%
50%
60%
70%
80%
Pr
Pr od
of uc
es tio
sio n
na
l/M 72%
an
ag
em
en
Cl
er t
42%
ica
l/ O
ffi
ce
St
af
Sa f
37%
le
s/
M
ar
In ke
fo t in
rm g
at
io
31%
n
Te
ch
no
lo
Job Type
gy
25%
O
th
er
22%
Pa
rt-
T im
Te
m e
po
19%
ra
ry
/ Co
nt
ra
ct
(2010-2011 Grow MN! Results, N = 488 companies)
9%
Key Workers – Still in Short Supply
14. Key Workers – Still in Short Supply
(2010-2011 Grow MN! Results)
# of Companies % Reporting
Job Type Seeking Workers Unfilled Jobs
Precision Production 216 72%
Professional/Management 185 42%
Clerical/Office Staff 185 37%
Sales/Marketing 178 31%
Information Technology 155 25%
Other 73 22%
Part-Time 149 19%
Temporary/Contract 127 9%
16. Migration: Best Source of New Workers?
Net Labor Force Growth
500,000
400,000 Total Natural Part Rate Migration
300,000
200,000
100,000
0
-100,000
2000-10 2010-20 2020-30
State Demographer projection revised 2007
17. What Should We Do?
• Understand what employers need
• Change systems accordingly
• Be ready to change again!
18. Employers: 4 Patterns
• Basic skills, work ethic & OJT
• Basic skills, work ethic, OJT then “higher”
ed
• “Jack of all trades” & work ethic
• Basic skills & higher ed
19. • 300 Employees
• 15% - 4 Yr Degree
• 10% - GED
• 75% - 2 yr (at least) technical training
21. Change The Systems
• K12 – What’s “basic” today? Tomorrow?
• Higher ed – all types
– Right courses
– Right content
• Dislocated worker programs – time to
rethink them?
Locations of Grow MN! partners showing the statewide impact of the program.
Say “Thank you”: Talk about the importance of thanking the business for being located in Minnesota. “ Many times when we sit down with the business owner it’s the first time anyone has thanked him/her for being located in Minnesota and it helps set the tone for the conversation.” Ask “About assistance”: More will be discussed on this topic later on in the presentation, but one of the important purposes Grow MN! has been fulfilling is the follow-up assistance that we can provide to companies across the state. Ask “About environment”: Results of the visits are pulled together at the end of our year and turned into an annual report. The results of this report are used at the state capitol to lobby on behalf of businesses and help set the priorities of the MN Chamber. Locally, we use the results at/to… (e.g. city council meetings, member meetings, etc.).
Business Expansion: ‘09 Results: 12 companies: 6 TC/6 Greater MN Done deals: 5 = 200+ jobs MN Rubber (Litchfield) Sage (Faribault) Goodrich (Burnsville) Detroit Diesel (Hibbing) Behrens (Winona) Dead: 3 = 125+ jobs Pending: 4 = 1,000+ jobs For 2, losing will cost existing jobs & HQ