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HomeMy WebLinkAbout[06] Region 7W CEDS Update EDA Agenda Item 6 MEETING DATE: January 16, 2018 AGENDA ITEM: Region 7W CEDS PREVIOUS EDA ACTION: None BACKGROUND INFORMATION: Economic Development Region 7W- Central includes the counties of Benton, Stearns, Sherburne, and Wright. Central MN Jobs and Training Services (CMJTS) led the preparation of a Comprehensive Economic Development Strategy (CEDS) in Central MN that was completed last fall. Having a CEDS for Central MN allows our region to be competitive in obtaining federal funding for economic development projects. CMJTS will manage the CEDS for Central MN. In order access federal economic development funds, the City has to be part of a regional economic development district. The EDA does not need to take any action on being a member as we already are a member being part of Stearns County. This is the same concept as the APO and access to federal transportation funding. Without the APO we could not access federal transportation funding. Jenn Russell, Economic Development Coordinator, with Central MN Jobs & Training Services will be attending to discuss information on Region 7W CEDS. BUDGET/FISCAL IMPACT: ATTACHMENTS: Region 7W CEDS Strategic Comprehensive Economic Development Plan REQUESTED BOARD ACTION: Discussion www.cmjts.org Equal Opportunity Employer and Program Provider Upon request the information in this document can be made available in Workforce excellence is CENTRAL to all we do. alternative formats for people with disabilities by calling 800-284-7425 Benton Stearns Wright REGION 7W Comprehensive Economic Development Strategy in Central Minnesota Benton Sherburne Stearns Wright 2017 TABLE OF CONTENTS TABLE OF CONTENTS Comprehensive Economic Development Strategy in Central Minnesota INTRODUCTION......................... 3STRATEGIC DIRECTION/ACTION PLAN .... 27 What is the CEDS? MADO and DevelopMN Vision Human Capital ............................. 28 Stakeholder Involvement and Public Engagement Labor Force Context Economic Resilience Labor Force Goal Labor Force Objectives REGIONAL OVERVIEW ................... 5 Educational Attainment Context DEMOGRAPHICS ............................... 5 Educational Attainment Goal Demographics Population Change, 2000–2016 Educational Attainment Objectives Population Change, 1950–2016 Economic Competiveness ................... 29 Population by Age Group, 2000–2016 Business Growth Context Population Projections by Age Group, 2020–2040 Business Growth Goal Population by Race, 2015 Business Growth Objectives LABOR FORCE ................................. 8 Entrepreneurship Context Labor Force Change, 2000–2016 Entrepreneurship Goal Labor Force Projections, 2020–2040 Entrepreneurship Objectives Employment Characteristics, 2016 Community Resources ...................... 30 Unemployment Rate, 2000–2016 Arts and Culture Context Jobseeker Per Vacancy, 2016 Arts and Culture Goal Educational Attainment by Age Group, 2015 Arts and Culture Objectives Commute Shed and Labor Shed, 2014 Tourism Context INCOME, WAGES, AND OCCUPATIONS ............ 12 Tourism Goal Household Incomes Tourism Objectives Per Capita Incomes Natural Resources Context Cost of Living Natural Resources Goal Wages and Occupations Natural Resources Objectives Job Vacancy Survey Foundational Assets ........................ 32 Occupations in Demand Broadband Context Employment Projections Broadband Goal ECONOMY.................................... 18 Broadband Objectives Industry Employment Transportation Context Distinguishing Industries Transportation Goal Industry Projections Transportation Objectives Employers by Size Class Housing Context Nonemployer Establishments Housing Goal Census Agriculture Housing Objectives Water Quality/Wastewater Infrastructure Context SIGNIFICANT INDUSTRY TRANSITIONS.... 23 Water Quality/Wastewater Infrastructure Goal Water Quality/Wastewater Infrastructure Objectives SWOT ANALYSIS....................... 25 SWOT Stands for … IMPLEMENTATION AND EVALUATION ..... 35 PUBLIC COMMENT ON 7W CEDS PLAN ... 35 CONTACTS............................ 37 1 INTRODUCTION Comprehensive Economic Development Strategy in Central Minnesota INTRODUCTION Central Minnesota Jobs and Training Services, Inc. representing the diverse population of the region. (CMJTS) provides customer-focused employment Planning and data collection for this document began and training services for individuals and businesses in early 2016 with public input derived through in the 11-county Central Minnesota Local Workforce community meetings and partnerships with local Development Area 5. CMJTS matches jobseekers, organizations. including youth, adults, and seniors, with job training VISION Region 7W strives to foster a prosperous region that creates new business and employment opportunities resources to grow their business. Additionally, CMJTS essential for economic growth. Economic development touts its progressive Economic Development Division will champion the creation, retention, and reinvestment of resources that increase the economic serving Region 7W. The Region 7W Comprehensive opportunities and improve the quality of life for Region Economic Development Strategy (CEDS) supports and 7W citizens. serves the counties of Benton, Sherburne, Stearns, and Wright. All economic development programs of STAKEHOLDER INVOLVEMENT AND PUBLIC CMJTS strive to create and retain jobs, grow the local ENGAGEMENT tax base, and create wealth in our four-county region. WHAT IS THE CEDS? and community development leaders throughout the region to participate in meetings focused on The Comprehensive Economic Development Strategy developing goals and strategies around the four (CEDS) contributes to effective economic development cornerstones of community and economic health in America’s communities and regions through a locally-based, regionally-driven economic development CEDS planning process at economic and community planning process. Economic development planning— development meetings in the region. as implemented through the CEDS—is not only a cornerstone of the U.S. Economic Development ECONOMIC RESILIENCE Administration’s (EDA) programs, but successfully Economic resilience is a key element to bolster the serves as a means to engage community leaders, long-term economic durability of the region. While it leverage the involvement of the private sector, and establish a strategic blueprint for regional its own cornerstone, the approach recommended is collaboration. that economic resilience strategies be a consideration The CEDS will ultimately enhance and support current and future economic development efforts in the cornerstones. While not called out further in the region and engage local, regional, state, and federal document, it is implied that economic resilience is a partners. The CEDS follows EDA guidelines to focus component of all activities associated with economic on the region’s unique conditions, advantages, and development in Central Minnesota. challenges. The CEDS document is the result of the work of a CEDS Steering Committee comprised of community professionals, workforce development leaders, educators, labor unions, and private individuals 3 REGIONAL OVERVIEW Comprehensive Economic Development Strategy in Central Minnesota DEMOGRAPHICS DEMOGRAPHICS POPULATION CHANGE, POPULATION CHANGE, 1950–2016 2000–2016 After enjoying rapid growth over the last half century, Economic Development Region 7W–Central includes Region 7W’s population growth has slowed so far this a total of four counties, located in the larger 13-county decade. After gaining about 197,000 new residents Central Minnesota planning region. Region 7W was from 1950 to 2010, the region added just 19,000 home to 421,722 people in 2016, comprising 7.6 residents from 2010 to 2016. However, it was still the percent of the state’s total population. The region saw fastest growing region of the state since 2010 (see a 31 percent population increase since 2000, making Figure 1). it the fastest growing of the 13 economic development All four counties in Region 7W were among the fastest regions (EDRs) in the state, and now the third largest growing counties in the state long term as well, led by in total population after gaining almost 100,000 new Sherburne County, which was the second fastest after residents. In comparison, the state of Minnesota saw growing 777 percent from 1950 to 2016, followed by a 12.2 percent gain from 2000 to 2016, meaning th Wright in 7 place after expanding 378 percent, and Region 7W accounted for 16.6 percent of total state thth Benton County and Stearns County in 11 and 12, growth (see Table 1). respectively, after both growing over 120 percent. Wright County added over 104,000 new residents over the past 66 years, Stearns County welcomed almost 85,000 people, Sherburne County gained 82,000 residents, and Benton County’s population increased by just over 24,000 additional people during that timeframe. Region 7W accounted for 11.7 percent of the state’s total population gain from 1950 to 2016. All four counties in the region saw population gains since 2000, led by Wright County, which was the second fastest growing county in the state and is now the 10th largest with 132,550 people. Sherburne County was the third fastest growing and is now the 12th largest in the state, with 93,528 people. Stearns County is the seventh largest with 155,652 people, and was the 12th fastest growing after welcoming over 22,486 new residents. Benton County is the smallest in the region with 39,992 people, but is the 24th largest in the state and was the 13th fastest growing from 2000 to 2016. 5 REGIONAL OVERVIEW POPULATION BY AGE GROUP, 2000–2016 Region 7W’s population is younger than the state’s, with 36.3 percent of the population age 25 years and under in 2016, compared to 33.2 percent statewide. Another 39 percent of people in Region 7W were between 25 and 54 years of age, which is typically considered the “prime working years,” compared to 39.1 percent statewide. In contrast, Region 7W had a smaller percentage of people from 55 to 64 years of age, and a much smaller percentage of the population age 65 years and over than the state, with just 12.8 percent of people age 65 years and over, compared to 15.2 percent of residents statewide (see Figure 2). While the number of younger residents was rising rapidly as young, married couple families moved into the region, the number of residents age 45 years and over was also expanding quickly because of the size of the baby boom generation—people born between 1946 and 1964 (see Figure 3). 6 REGIONAL OVERVIEW POPULATION PROJECTIONS BY AGE GROUP, Figure 4. Region 7W Population Projections 2020–2040 by Age Group, 2015-2035 Region 7W is projected to enjoy continued 500,000 population growth in the future as well. According to population projections from the State Demographic Center, Region 7W is expected to 450,000 13,122 11,010 gain about 30,000 net new residents from 2020 8,207 31,947 43,904 to 2040, a 6.9 percent increase (see Figure 4). In 18,812 400,000 comparison, the state of Minnesota is projected 38,604 53,524 to grow 8.8 percent from 2020 to 2040. 49,053 85 years & over 350,000 Despite the region’s younger population, much 55,460 75-84 years 50,832 48,628 of this demographic growth is expected to be in 65-74 years 300,000 the older age groups. Region 7W is projected to 55-64 years 53,157 add 45,000 people age 65 years and over, a 69 45,352 50,895 percent increase. The region is also expected to 45-54 years 250,000 gain about 14,000 people in the 25- to 44-year- 35-44 years 53,365 47,627 58,735 old age group, as well as a corresponding 25-34 years 200,000 increase of about 4,400 children under 5. In 15-24 years contrast, Region 7W is expected to lose over 50,857 61,958 59,394 14,600 people from 45 to 64 years of age and 5-14 years 150,000 over 19,000 youth from 5 to 24 years of age. Under 5 years 70,420 56,146 67,632 100,000 POPULATION BY RACE, 2015 Region 7W’s population is less diverse than the 51,334 50,00056,376 44,853 state’s, but is becoming more diverse over time. In 2015, 93.1 percent of the region’s residents 26,860 25,073 22,489 - reported White alone as their race, compared to 202020302040 84.8 percent of residents statewide. Region 7W had a smaller percentage of all other race groups than the state, with the largest minority populations being Hispanic or Latino and Black or African American (see Table 2). The region saw a 23 percent gain in the number of White residents, but saw much faster increases in every other race group. The number of Black or African American residents rose 350 percent, while people of Some Other Race, Two or More Races, and Hispanic or Latino origin all increased more than 150 percent from 2000 to 2015 (see Table 2). 7 REGIONAL OVERVIEW LABOR FORCE LABOR FORCE CHANGE, 2000–2016 According to data from DEED’s Local Area Unemployment Statistics program, Region 7W has experienced rapid growth in the size of the available labor force over the last 16 years. With just over 231,500 workers in 2016, the region had over 42,000 more available workers than it had in 2000, a 22 percent increase. In comparison, Minnesota’s labor force grew 7.3 percent during that timeframe. As the region’s population grew, so did the labor force, adding about 36,000 workers from 2000 to 2010, a 19.2 percent increase. Labor force growth has slowed since then, with the region gaining just 5,688 workers from 2010 to 2016 (see Figure 5). As the economy has recovered, the labor market in the region has been getting tighter, with about 8,400 unemployed workers in 2016. LABOR FORCE PROJECTIONS, 2020–2040 Despite the region’s projected population growth as shown in Figure 4 above, applying current labor force participation rates to future population projections by age group would lead to much slower growth in workforce numbers in Region 7W over the next decade. Region 7W may gain just 3,400 net new workers from than experienced in the past two decades. In addition to the slowing growth, the data show that the age composition of the workforce will gain in the number of workers age 20 to 44 years and part of the labor force, accounting for 59 percent of big gains in workers age 65 years and over, against the total (see Table 3). These changes will likely lead a huge decline in the number of workers age 45 to to a tight labor market in the future, with employers 64 years. The region may lose about 5,400 workers needing to respond to changing workforce availability. in the 45- to 64-year-old age group as the baby boom generation moves through the population pyramid. The 25- to 54-year-old age group will still be the largest 8 REGIONAL OVERVIEW EMPLOYMENT CHARACTERISTICS, 2015 With 73.4 percent of people age 16 years and over in the labor force, Region 7W had higher labor force participation rates than the state’s 70 percent. The region had higher labor force participation rates than the state in almost every age group, and the overall rate was even higher because a higher percentage of Region 7W’s labor force was in younger age groups (see Table 4). In contrast, the region had lower participation rates than the state in several race groups, and also had large unemployment rate disparities for every minority group. Region 7W also had 11,126 veterans and 10,454 workers with disabilities in the labor force, and they too had higher participation rates in the region than the state. In sum, unemployment rates in the region were highest for young people, minorities, workers with disabilities, and people with lower educational attainment. UNEMPLOYMENT RATE, 2000–2016 Though slightly higher, Region 7W’s unemployment rate has closely tracked the state rate over time, typically hovering within a half a percent of Minnesota’s rate. According to DEED’s Local Area Unemployment Statistics, the region’s unemployment rate rose as high as 8.5 percent in 2009, while the state rate climbed to 7.8 percent. Since then, the state and region’s economies have recovered and unemployment rates are dropping back below prerecession levels, with Region 7W reporting 4 percent in 2016, which was just 0.1 percent above the state rate (see Figure 6). 9 REGIONAL OVERVIEW JOBSEEKERS PER VACANCY, 2016 As the number of available workers has declined, the region’s labor market has tightened. One clear demonstration of this is the ratio of unemployed jobseekers per vacancy, which dipped to 1.2-to-1 last year, and stayed at that level in the second quarter of 2016. According to recent job vacancy survey results, there were 7,242 openings reported by employers compared to 8,384 unemployed jobseekers in the region. The ratio climbed as high as 11.8-to-1 during the recession (see Figure 7). EDUCATIONAL ATTAINMENT BY AGE GROUP, 2015 With 35.6 percent of adults age 18 years and over having a college degree, Region 7W has lower educational attainment than the state, where 41.3 percent of adults have an associate, bachelor’s, or advanced degree. However, 12.2 percent of adults in Region 7W have an associate degree, which outpaces the state (10.2%). Another 28.5 percent have some college experience, but no degree, compared to 24.5 percent statewide. Region 7W has a younger population that is focused on advancing their education, which is leading to changing educational attainment overall. In 2015, 51.1 percent of people age 18 to 24 years had attended some college, but hadn’t earned a degree yet, and 15.6 percent already had a college degree. Region 7W also had a much higher percentage of people in the 25- to 44- and 45- to 64-year-old age groups who had earned associate degrees, but lower percentages of people with bachelor’s degrees or higher. Region 7W has a lower percentage of the population in the oldest age groups, and those residents have much lower educational attainment than the rest of the state and those in the younger age groups (see Table 5). 10 REGIONAL OVERVIEW COMMUTE SHED AND LABOR SHED, 2014 According to commuting data from the Census Bureau, Region 7W is a net labor exporter, having more workers than available jobs. In fact, nearly as many residents commute out of the region than stay in the region for work. In sum, 120,106 workers both lived and worked in Region 7W in 2014, while 46,561 workers drove into the region from surrounding counties for work, compared to 89,054 workers who lived in the region but drove to surrounding counties for work (see Table 6 and Figure 8). Anchored by St. Cloud, Stearns is the largest county and the largest employment center in the region and was the biggest draw for workers, actually seeing a net import of workers. In contrast, Benton, Sherburne, and Twin Cities metro area as well as St. Cloud (see Table 7 and Figure 8). 11 REGIONAL OVERVIEW INCOMES, WAGES, AND OCCUPATIONS HOUSEHOLD INCOMES At $64,806 in 2015, household incomes were slightly higher in Region 7W than the state, where the median household income was $61,492. Median household incomes were $52,178 in Benton County and $56,336 in Stearns County, which thrd were the 30 and 23 highest in the state, respectively. Incomes were even higher in Sherburne and Wright highest in the state, respectively, at $74,170 and $73,557. Just 37.5 percent of the households in the region had incomes below $50,000 in 2015, compared to 40.6 percent statewide. Another 36.6 percent of households earned between $50,000 and $100,000 in the region, compared to 33.1 percent of households statewide, and in both the state and the region, about 26 percent of households earned over $100,000 (see Figure 9). PER CAPITA INCOMES However, per capita incomes were slightly lower in Region 7W than the state, ranging from $25,341 in Benton County to $30,238 in Wright County, compared to $32,157 in Minnesota. At $28,553, Region 7W had the third highest per capita income of the 13 EDRs in the state, behind the Twin Cities metro and Southeast Minnesota (see Figure 10). 12 REGIONAL OVERVIEW Region 6E at $16.07, but lower wages than the Twin COST OF LIVING Cities at $20.79, Region 7E at $17.78, and Southeast According to DEED’s Cost of Living tool, the basic Minnesota at $18.53 (see Table 9). needs budget for an average Minnesota family (which consists of two adults and one child, with one full-time About 12.1 percent of the jobs in Region 7W were and one part-time worker) was $55,200 in 2017. The production occupations, which was much more cost of living for a similar family in Region 7W was concentrated than in the state as a whole. Region $52,656—which was also the third highest of the 13 7W also had a higher share of workers in education, EDRs in the state, behind only the Twin Cities metro training, and library; construction and extraction; area and Region 7E–East Central. The highest monthly installation, maintenance, and repair; and sales and costs were for transportation, food, and housing; the related occupations (see Table 10 on the following cost of the region’s housing, transportation, and taxes page). were very similar to the state, while lower childcare costs were the main difference (see Table 8). To meet the basic cost of living for the region, the workers in the family scenario listed above would Not surprisingly, the lowest-paying jobs are in food need to earn $16.88 per hour. For a single person preparation and serving, personal care and service, living alone and working full-time, the estimated yearly sales and related, building and grounds cleaning, and cost in Region 7W would be $30,264, which would healthcare support jobs, which tend to have lower require an hourly wage of $14.55 to meet the basic educational and training requirements. For the most needs standard of living. part, the gap in pay between Region 7W and the state is also lower in these jobs. In contrast, the highest paying jobs are found in management, healthcare WAGES AND OCCUPATIONS practitioners, legal, According to DEED’s Occupational computer, architecture Employment Statistics program, and engineering, the median hourly wage for all life, physical, and occupations in Region 7W was social science, and operations, which level of the 13 EDRs in the state. tend to need higher However, Region 7W’s median levels of education wage was $2.14 below the state’s and experience. The median hourly wage, equaling 89 pay gaps between percent of the statewide wage rate, the region and state and about $4.07 below the median are much bigger in hourly wage in the seven-county these occupations, Twin Cities metro area, which would with the exception of amount to nearly $8,500 per year healthcare. for a full-time worker. Region 7W had higher wages than surrounding regions like Region 5 at $15.70, 13 REGIONAL OVERVIEW 14 REGIONAL OVERVIEW JOB VACANCY SURVEY Employers in Region 7W reported 6,358 job vacancies in the fourth quarter of 2016, the fourth highest number ever recorded. Job vacancies in the region have increased almost 400 percent from the recession low point in 2009. Overall, half of the openings were part-time, just one-quarter required post-secondary education, and 29 percent required one or more years of experience. The median hourly wage offer for all occupations increased $0.29 from the previous year, to $12.33 (see Table 11). 15 REGIONAL OVERVIEW OCCUPATIONS IN DEMAND According to DEED’s Occupations in Demand tool, there are over 200 occupations showing relatively high demand in the region, with training and education requirements ranging from short-term on-the-job training to post-secondary education to advanced degrees. Many of the occupations in demand in the region require a high school diploma or less. These occupations are spread across different sectors but are also concentrated in the region’s major industries. For example, food prep workers, personal care aides and home health aides, retail sales workers, truck drivers, information technology, welders, and healthcare practitioners are all occupations in demand based on the consistent need for these workers (see Table 12). 16 REGIONAL OVERVIEW EMPLOYMENT PROJECTIONS The Central Minnesota planning area is projected to grow 7.7 percent from 2014 to 2024, a gain of over 23,300 new jobs. In addition, the region is openings left vacant by retirements and other career changes. The number of replacement openings is Figure 11. Central Minnesota Regional Employment expected to dwarf the number of Projections, 2014-2024 new jobs in most occupational -2000020004000600080001000012000 groups, though the region will see rapid growth for personal Sales & Related 19629030 care, healthcare, construction, Food Preparation & Serving Related 20208880 food prep, and sales jobs in Office & Administrative Support 13617830 the next decade. In contrast, Production 4486720 seven occupational groups are Personal Care & Service 34573450 expected to see a decline in Healthcare Practitioners & Techincal 24363720 jobs through 2024, but will still Transportation & Material Moving 5203 527 have replacement openings (see Education, Training, & Library 9104330 Figure 11). Management 1744630 Healthcare Support 23222310 Construction & Extraction 20882390 Installation, Maintenance, & Repair 12152750 Business & Financial Operations 9082030 Business, Grounds Cleaning, & Maint. 8671930 Community & Social Service 6491280 Arts, Design, Entertainment, & Media 1371040 Computer & Mathematics 309430 Architecture & Engineering 46780 Protective Service 59571 Farming, Fishing, & Forest -222730 Life, Physical, & Social Science 106360 Legal 210 59 17 REGIONAL OVERVIEW ECONOMY INDUSTRY EMPLOYMENT Region 7W has seen job gains and losses over the past decade, but ended 2016 with about 13,000 more jobs than it had in 2006, an 8.2 percent increase. In comparison, the state grew 5.1 percent from 2006 to 2016. Like the state, the region suffered severe job declines in 2009 and 2010. Since then, Region 7W has seen a faster recovery than the rest of the state, which gained jobs at an 8.1 percent clip from 2011 to 2016, compared to a 10.6 percent increase in the region. Also like the state, Region 7W regained all of the jobs lost during the recession by 2013 (see Figure 12). According to DEED’s Quarterly Census of Employment & Wages (QCEW) program, Region 7W was home to 9,891 The city of St. Cloud is located in Stearns, Benton, business establishments providing 170,160 covered th and Sherburne County, and is the 10 largest city jobs through 2016, with a total payroll of just over in the state. As shown above, the region recovered $7.2 billion. That was about 6.0 percent of total employment in the state of Minnesota, making it the with Sherburne and Wright seeing the fastest rise in third largest of the 13 EDRs in the state. Average annual wages were $42,516 in the region, which was jobs, combining to add about 9,000 jobs; and Stearns County gaining the most new jobs. Combined, Stearns almost $11,800 lower than the state’s average annual and Benton also added about 8,000 jobs from 2011 wage, and the third highest of the 13 EDRs. to 2016 (see Table 13). Stearns County is the largest employment center in the region and the seventh largest in the state, with assistance is the largest employing industry in Region 7W, accounting for 16.8 percent of total jobs in the half of the region’s jobs. Wright County was the next region. Due to the region’s population growth, the 18 REGIONAL OVERVIEW largest sectors were ambulatory healthcare services at 197 institutions—primarily at elementary and and hospitals, which had just over and just under secondary schools, but also at junior colleges, universities, and other schools and instruction. growth since 2011. The region also had 6,000 jobs in The next largest industry was also the fastest growing nursing and residential care facilities and 4,100 jobs in the region from 2011 to 2016: the construction in social assistance. industry built up payrolls by 31.1 percent, and now After regaining about 3,400 jobs since 2011, manufacturing is still the second largest industry in support and waste management services industry, in manufacturing were over $7,700 higher than in 563 jobs, an 8.6 percent increase since 2011. Other the total of all industries. In contrast, wages were important industries in Region 7W include wholesale relatively low in retail trade, the region’s third largest trade, transportation and warehousing, public industry, with 23,397 jobs at 1,296 stores. The related accommodation and food services industry had and professional and technical services. Seventeen of 14,265 jobs at 723 establishments, and also had low the 20 main industries in the region added jobs since wages. Combined those two industries added almost 2011, however six of 20 industries lost jobs in the past 3,000 jobs since 2011.year (see Table 14). With one of the largest student populations outside the Twin Cities, Region 7W also has a high concentration of jobs in educational services, with 15,611 jobs 19 REGIONAL OVERVIEW DISTINGUISHING INDUSTRIES Region 7W stands out in the state for its higher share of employment in manufacturing, with specialties, including furniture and related product manufacturing and nonmetallic mineral product manufacturing, as well as transportation equipment manufacturing, fabricated metal product manufacturing, and textile product mills. Located in the center of the state, the region also has strengths in heavy and civil engineering construction, truck transportation, and motor vehicle and parts dealers (see Table 15). INDUSTRY PROJECTIONS As noted above, the Central Minnesota planning area is projected to grow 7.7 percent from 2014 to 2024, a gain of 23,338 new jobs, making it the fastest growing region of the state. The largest and fastest growing industry is expected to be healthcare and social assistance, which may account for nearly 45 percent of total projected growth in the region. Central Minnesota is also expected to see retail trade, accommodation and food services, and administrative support, with growth spread across 17 of the 21 sectors. In contrast, the region is expected to see declines in agriculture, manufacturing, and educational services (see Table 16). 20 REGIONAL OVERVIEW EMPLOYERS BY SIZE CLASS The vast majority of businesses in Region 7W are small businesses, with 54.8 percent of businesses reporting one to four employees in 2015, according to County Business Patterns from the U.S. Census and 19 employees, and 12 percent had between 20 and 99 employees. Only 2.3 percent had 100 to 499 employees, compared to 2.7 percent of businesses in the state. Just 25 businesses in the region had more than 500 employees, which is the “small business.” Obviously, then, small businesses are vital to the region’s economy (see Table 17). NONEMPLOYER ESTABLISHMENTS Before growing, the basic building block of most small businesses is a self-employed business. Region 7E was home to 29,179 self-employed businesses or “nonemployers” in 2015, which are without paid employees that are subject to federal income tax, originating from tax return information of the Internal Revenue Service (IRS).” Like covered employment, Region 7W enjoyed a huge increase in nonemployers over the past decade, responding to economic changes. In sum, the region gained 1,485 new nonemployers from 2005 to 2015, a 5.4 percent increase. The largest amount of nonemployers was in Stearns County, while Wright County saw a faster increase in self-employment than the state. These nonemployers generated sales receipts of $1.3 billion in 2015 (see Table 18). 21 CENSUS OF AGRICULTURE Finally, one other important industry in Region 7W is agriculture, with 6,377 farms producing nearly $1.3 billion in the market value of products sold in 2012, according to the U.S. Department of Agriculture. Region 7W had 8.6 percent of the state’s farms, and 6.1 percent of the state’s total market value, 87 counties in the state for the market value of products sold. On a much smaller scale, Wright, ththnd Benton, and Sherburne ranked 49, 54, and 62, respectively. Despite seeing a decline in the number of farms, the region saw a 54.3 percent increase in the market value of products sold from 2007 to 2012 as many farms got bigger and commodity prices went up (see Table 19). 22 SIGNIFICANT INDUSTRY TRANSITIONS Comprehensive Economic Development Strategy in Central Minnesota For the current CEDS planning period (2017-2021), percent of the tax base in Becker, and 15 percent for impacts for the 7W region will occur in the coming the entire county. Local leaders are eager to use the decade. The Sherburne County Generating Station, transition period to diversify the tax base and create or retain jobs in new or related sectors. plant in Becker, Minnesota (Sherburne County). Substantial investments by local government and Its three units have a combined capacity of 2,400 philanthropic partners have already been made megawatts, making it the largest power plant in the to assess feasibility of transportation and related Midwest, and 16th largest in the nation. infrastructure investments to support the attraction or expansion of businesses in the Becker Industrial the Minnesota Public Utilities Commission to shut Park (located adjacent to Sherco) as a mitigation for down the plant's Unit 2 in 2023 and Unit 1 in 2026. the job and tax losses associated with the transitions Generating capacity will be partly replaced with a at the power plant. Leaders of these projects are eager to partner with the Economic Development renewable energy investments. Regulators approved Administration to quickly mature these efforts to the the plan in October 2016.implementation stage. The Sherco facility employs over 300 workers in “high convert to natural gas will result in a reduction of nearly 200 positions. Additionally, a recent analysis by that for every 100 electric power generation jobs, an additional 227 indirect and induced jobs are created. 23 SWOT ANALYSIS Comprehensive Economic Development Strategy in Central Minnesota SWOT ANALYSIS The CEDS process requires a SWOT Analysis to be SWOT stands for Strengths: Internal factors that give our region, year plan. Community meetings started with a SWOT communities, and businesses an advantage over Analysis to provide a baseline for local governments to others. work from when addressing these regional concerns. Weaknesses: Internal factors that place our region, The purpose of the SWOT Analysis is not just to communities, and businesses at a disadvantage recognize areas of strength and where opportunities relative to others. may lie, but also to rigorously examine and increase awareness of weaknesses and potential threats so Opportunities: External factors that our region, proper preparation can take place. communities, and businesses could capitalize on to our advantage. Threats: External factors that could create challenges for our region, communities, and businesses. Region 7W SWOT Analysis STRENGTHS WEAKNESSESOPPORTUNITIES Transportation infrastructure/ Broadband – underserved in Retaining population of youth strong highway system rural areas Post-secondary education Housing – lack of affordable Agriculture Work-based learning housing Natural resources opportunities Wage competition with the Great recreational Increase collaboration metro (higher near metro) opportunities between public-private Location – a lot of people partnerships (education) Educational (higher ed) commute for work out of facilities On-the-job training region Strong school system Develop partnership with local Lack of entertainment/ business and education amenities Access to strong, local medical facility Rapidly growing immigrant Retention of post-secondary communities students Location between St. Cloud Aging population for and metro Matching up of labor force workforce and business Safe place to live Diverse communities Growth in small business development THREATS Small businesses getting run Labor shortage Aging infrastructure out by larger corporations Labor exportation Brain drain Higher wages near metro Perception of the region Lack of diversity Aging population/workforce Federal government uncertainty 25 STRATEGIC DIRECTION / ACTION PLAN Comprehensive Economic Development Strategy in Central Minnesota MADO and DevelopMN The DevelopMN Plan is the result of a collaborative Community Resources effort of the ten Economic Development Districts that Central Minnesota communities seek to maintain rural make up the Minnesota Association of Development values, their heritage, and the assets that support Organizations (MADO). DevelopMN was completed in them. Community resources include topics that 2016. It was developed to align strategic economic balance the preservation and improvement of local development efforts throughout Greater Minnesota, social, cultural, and natural assets that are critical for and leverage resources at all levels for a greater the future. Fundational Assets cornerstones for strong regions and communities that are a template for the organization of the Minnesota Central Minnesota communities require proactive CEDS: human capital, economic competitiveness, and collaborative approaches/strategies to community resources, and foundational assets. address infrastructure needs in a cost-effective manner. Managing the access to and maintenance, Human Capital replacement, and growth of these assets are key to Developing, retaining, and attracting talent are preserving and maintaining communities and provide critical for Central Minnesota to sustain and grow for growth opportunities. Foundational assets include rural businesses and communities. Tracking the above-ground and below-ground infrastructure such as characteristics of the labor force and the needs of transportation, utilities, and water. employers, and creating strategies for alignment between the two, are the foundation for this cornerstone. Economic Competitiveness Making Central Minnesota an attractive environment for growth is critical to creating jobs, improving living Economic competiveness requires communities to develop and link all available assets to support innovation and encourage business growth. 27 STRATEGIC DIRECTION / ACTION PLAN HUMAN CAPITAL Developing, retaining, and attracting talent is critical Pursue funding opportunities with workforce partners to expand the availability of training for Region 7W to sustain and grow businesses and programs for targeted industries and occupations. communities. Tracking the characteristics of the labor force and the needs of employers and creating Make labor market information more accessible to strategies for alignment between the two, are the school districts and higher education institutions so foundation for this cornerstone. students can make informed career choices. Develop a program for experienced workers to Labor Force Context mentor the emerging workforce. As Region 7W looks to grow its economy, it is Encourage seasoned workers to remain in the confronted with the challenge of meeting the hiring workforce. and skill needs of employers. Region 7W has a higher labor force participation rate in almost every age group Educational Attainment Context at 73.5 percent compared to the state’s 70.1 percent With 35 percent of adults aged 18 years and over labor participation rate. Region 7W’s labor force will having a college degree, Region 7W has lower educational attainment than the state, where 40.5 in the number of workers aged 20 to 44 years and percent of adults have an associate, bachelor’s, or big gains in workers aged 55 years and over, against advanced degree. In Region 7W, 11.8 percent of a huge decline in the number of workers aged 45 adults have an associate degree, which out-paces the to 54 years. The Central Minnesota planning area is state (10.0 percent); 29.1 percent have some college projected to grow 7.7 percent from 2014 to 2024, a experience but no degree, compared to 24.8 percent gain of over 23,300 new jobs. The region may lose statewide. about 6,000 workers in the 45- to 54-year-old age group as baby boomers retire and leave the workforce. Educational Attainment Goal Increase the number of residents (ages 18-64) who Labor Force Goal have completed post-secondary education or training Uphold a high labor force participation rate and maintain a low unemployment rate. degrees, and apprenticeships relevant to employment in skilled, living-wage occupations. Labor Force Objectives Embrace diverse populations (e.g., aging, youth, Educational Attainment Objectives people of color, previously incarcerated, people Develop K-12 and post-secondary apprenticeships, with disabilities, etc.) through targeted workforce internships, entrepreneurship opportunities, and programs. mentorship programs. Increase employment access and retention by Support “brain gain” programs to recruit and retain connecting potential employees to the existing workers ages 25-54. employment and workforce support networks. Increase the awareness among students, parents, and educators about the requirements for future credit-based apprenticeships, internships, and on- the-job training to train existing and future workers Market career opportunities in the region and share for a more competitive economic environment. information about in-demand careers with students, Conduct collaborative planning activities with parents, and educators. regional partners to promote alignment of economic Align education and workforce data to meet current and workforce development goals, including and future skill needs of employers. encouraging post-secondary education and skills training to support high-growth and high-wage jobs. 28 STRATEGIC DIRECTION / ACTION PLAN ECONOMIC COMPETITIVENESS Educate employers on the potential of the Making Region 7W an attractive environment for untapped workforce (e.g., underserved and diverse growth is critical to creating jobs, improving living populations). Economic competiveness requires communities Work to eliminate disparities in educational to develop and link all available assets to support attainment. innovation and encourage business growth. Expand access to higher education in the region by establishing secondary education satellite facilities Business Growth Context available for use by area universities and community The vast majority of businesses in Region 7W are colleges. small businesses, with 54.2 percent of businesses reporting one to four employees in 2014, according to County Business Patterns from the U.S. Census Bureau. Just 24 businesses in the region had more than 500 employees, which is the Small Business This is an indication that small businesses are vital to the region’s economy. Business Growth Goal Foster job creation and support the growth of new and existing businesses by providing capacity-building information, tools, and resources. Business Growth Objectives Assist business startups and existing businesses create and maintain jobs. Coordinate public-private partnerships to facilitate small- and medium-sized business lending. Educate businesses on grant and funding opportunities available. Advocate to fully fund regional Small Business Development Centers at the state level. Develop and promote a regional marketing strategy with a clear and concise message to attract new businesses. Support startup and small businesses with training, planning, and other assistance. Implement business succession planning processes and seminars throughout the region. Campaign for competitively-priced, high-speed broadband infrastructure throughout the region to attract and retain businesses. 29 STRATEGIC DIRECTION / ACTION PLAN COMMUNITY RESOURCES Region 7W seeks to maintain rural values, heritage, Encourage communities to complete a business retention and expansion (BRE) program.and the assets that support them. Community resources include topics that balance the preservation Create networks of incubator, coworking, proof-of- and improvement of social, cultural, and natural concept, and maker spaces. assets that are critical for the future. Encourage and support immigrant businesses, startups, and expansions. Arts and Culture Context Improve the region’s competitiveness by assessing Minnesota’s artists and creative workers have a and leveraging industry clusters. large and growing impact on our state’s economy. Through direct spending and their operations, creative Entrepreneurship Context businesses are a core part of the economic vitality Region 7W must embrace and encourage innovation of our state. The 2015 Creative Minnesota report and calculated risk-taking to foster entrepreneurship illustrates that artistic spending by Minnesota’s to compete effectively in the global economy. Self- 104,148 full- and part-time artists and creative starters, creative thinkers, and service-oriented workers have a far reaching impact. Artists buy entrepreneurs are a necessary part of the region’s supplies, contract for services, and more. These workforce. actions support jobs, create income, and generate government revenue. Entrepreneurship Goal Increase cross-sector initiatives to support Arts and Culture Goal entrepreneurship and innovation. Promote cultural amenities for the purpose of attracting economic investment and skilled workers Entrepreneurship Objectives to the region. Lead and serve individuals and Create and promote programs, activities, and organizations to help build environments in which the policies to foster innovation and community-wide arts and arts-education thrive and contribute to more support for entrepreneurship. vibrant and creative communities. Identify and grow angel and venture capital Arts and Culture Objectives investments. Communicate economic development impacts of Experiment with the concept of a startup package arts with local leaders. for new businesses. Develop local business mentorship programs. opportunities. Work with immigrant entrepreneurs to connect them Connect artists with resources they need to make a to existing resources. living and improve the quality of life. Educate entrepreneurs on grant and funding Integrate the arts in public infrastructure and space. opportunities available. Improve art education in school systems, including Expand K-12 business startup courses to support career opportunities in the arts. entrepreneurship (e.g., DECA, Junior Achievement, Creating Entrepreneurial Opportunities (CEO) Engage artists in community planning and get them program). involved at the ground level. Create and enhance university/college and business Create economic or job clusters based on creative cooperation in the areas of research and practical businesses. product and service application throughout the Link creative businesses with non-artistic region. businesses. 30 STRATEGIC DIRECTION / ACTION PLAN Use celebrations or festivals to highlight are under increasing pressure from population growth, communities’ cultural amenities. development, and climate change. Implement arts-based placemaking to improve Natural Resources Goal public spaces and enhance the vibrancy of our To protect and preserve the environment, enhance communities. the quality of life for current and future generations, and practice responsible management of natural Tourism Context resources. Tourism is a source of economic vitality to the state of Minnesota and can provide an economic development Natural Resources Objectives alternative for communities. Increasing the economic Encourage community and regional planning that address all aspects of natural resource protection, community’s economic development strategy. preservation, and restoration. Tourism Goal Develop and manage funding programs that provide Strengthen the local economy by attracting people from outside the region to increase visitor spending best management practices. and increase consumer awareness of Region 7W. Protect the region’s natural resources through public outreach and education. Tourism Objectives Preserve and protect natural areas and open spaces Promote and market local community events, to maintain and attract desired wildlife species and amenities, and assets to people outside of the provide “non-developed green space” for community geographic region. residents. Develop and ensure consistent regional branding Conserve natural amenities by incorporating these efforts that promote local businesses and locally features into the local and regional development made products. plan as open spaces, buffer areas, or other common Strategically invest in tourism infrastructure areas. and projects which also support economic Support policies and procedures to mitigate invasive competitiveness and quality of life in the region’s species threats and focus efforts on their reduction communities. or elimination. Collaborate with municipal and economic Maintain existing park facilities while seeking development partners to grow tourism. opportunities to expand and enhance future Develop career pathways in the tourism industry to facilities. attract and retain employees. Protect lakes, rivers, and wetlands from direct and Increase the number of overnight and same-day indirect impacts of new and existing development visitors. and infrastructure. Seek sources of public and private funding Natural Resources Context Region 7W has an abundance of natural resources, redevelopment. which provide critical habitat for wildlife, protect water Support educational programs on energy quality, offer recreational opportunities, and serve conservation and use of renewable energy as the foundation for the region’s environmental resources through cooperation with other agencies well-being, economic prosperity, and quality of life. and energy suppliers. Protecting these important resources is a priority for the region. However, the region’s natural resources 31 STRATEGIC DIRECTION / ACTION PLAN FOUNDATIONAL ASSETS Region 7W communities require proactive and Support the development of diverse, reliable, and cost-effective energy sources and systems collaborative approaches/strategies to address to meet the region’s economic and infrastructure needs in a cost-effective manner. environmental goals.Managing the access to, maintenance, replacement, and growth of these assets are key to preserving and Increase the use of solar energy and other maintaining communities and providing for growth renewable energy resources in existing and new opportunities. developments in the region. Work with stakeholders to protect and improve Broadband Context air quality. Affordable high-speed internet is necessary to remain Continue to encourage composting, recycling, competitive in today’s global economy. reduction, and reuse of solid waste as an alternative Many businesses and residents experience lack of access to reliable broadband at acceptable speeds and costs. stormwater management systems. Broadband Goal Conserve water and promote bio-diversity and Connect local units of government, communities, support pollinators through installation of native and interested parties with technical assistance and landscapes on public lands. resource providers to expand broadband internet within the region. Broadband Objectives Advocate for broadband funding at both state and federal levels. Leverage state resources to increase broadband access. Promote an understanding of the importance of broadband to a community’s infrastructure. Develop “Dig Once” programs and policies in communities. Expand broadband to unserved and underserved parts of the region. Partner with broadband providers to explore ways to assist with broadband infrastructure. Identify industries in need of high-speed internet infrastructure development. Ensure equitable broadband access for all students outside of school. Work with the private sector to promote the availability of high-speed broadband. 32 STRATEGIC DIRECTION / ACTION PLAN Extend the Northstar Commuter Rail Corridor Transportation Context operations by identifying the region’s needs. Transit services in rural areas, small towns, and regional centers will be increasingly important for Work with state and local partners to coordinate access to medical care, community services, and efforts to develop and enhance regional bicycle and employment. pedestrian systems. Transportation Goal U.S. Highway 10 through state and regional efforts. Develop and maintain a regional transportation system Work with local highway coalitions on transportation initiatives. competitiveness throughout the region. Housing Context Transportation Objectives Support regional transportation infrastructure to community. Identifying where and how to prioritize promote multi-model systems, improvements to limited resources to address housing is important to outdated components, and enhanced connectivity meet the needs of all residents. among the growth centers in the region. Encourage state and local units of government Housing Goal to support and pursue options that increase the Create housing options that give people in all life availability of transportation funding. stages and of all economic means viable choices for Work to ensure that long-range public transit policy safe, stable, and affordable homes. decisions in Central Minnesota address future Housing Objectives demographic shifts and needs. Advocate for funding the demolition of vacant, Prioritize transportation projects that connect unsafe, and dilapidated housing units. regional economic hubs. Rehabilitate and preserve the existing housing Design streets and highways that are safe and stock. transit, pedestrians, and bicyclists with minimal government, and neighborhood entities to access environmental impacts. public funding and attract private capital for Promote a public transit system where all providers affordable housing development. work together to maximize resources. Maintain and reconstruct existing roadways and planning for home ownership. bridges in a manner that promotes safety, increases Advocate for dollars to fund local housing studies. transportation corridors. Encourage development of housing for seniors and persons with disabilities. Develop and expand transportation facilities to accommodate freight movement and meet the Integrate economic development and job creation changing needs of the regional economy. with workforce housing development, including housing within walking distance of job growth Improve and expand facilities for air travel and locations. transport. Preserve rail corridors and provide safe and convenient rail facilities and service to meet rail passenger and freight transportation needs for the region. 33 STRATEGIC DIRECTION / ACTION PLAN Promote stormwater management techniques that Water Quality/Wastewater Infrastructure Context minimize surface water runoff in public and private developments. infrastructure is overwhelming cities and residents. Local units of government will need to be innovative Advocate for the cleanup of contaminated sites with in paying for and addressing on-going infrastructure maintenance. resources. Support efforts to obtain federal, state, and Water Quality/Wastewater Infrastructure Goal regional funding to upgrade and maintain aging Improve water quality by ensuring the region’s infrastructure (e.g., water, sewer, drainage facilities) groundwater and surface water supplies are while supporting the expansion of infrastructure to protected from depletion and degradation by reducing underserved areas. the number of impaired waters and endangered Support inter-governmental studies and/or ecosystems. demonstration projects to identify areas for Water Quality/Wastewater Infrastructure and performance. Objectives Work with partners to implement water quality restoration and protection projects to improve impaired water resources. drinking water, meeting all regulatory requirements, Provide technical assistance and education to residents, municipalities, watershed management groups, and other entities to protect and restore water resources. Encourage cities to obtain technical assistance in the early stages of infrastructure development. Encourage regionalization to reduce operation and maintenance costs. Work with communities to apply for grants that support water quality. Assist communities to review rate structures for water and sewer services. Encourage cities to develop capital improvement plans that are aligned with comprehensive plans and land-use ordinances. Support designing and building sustainable infrastructure to collect and manage stormwater runoff from streets, sidewalks, parking lots, and rooftops to prevent runoff from entering the communities’ sanitary sewer systems. 34 IMPLEMENTATION AND EVALUATION Comprehensive Economic Development Strategy in Central Minnesota To evaluate the progress of the CEDS, CMJTS CMJTS’ performance measures are intended to staff will meet frequently with stakeholders in the evaluate the organization’s independent and region to assess the goals and objectives that have collaborative contributions on the regional economy been developed. As the Economic Development through the implementation of the CEDS. The two Administration CEDS guidelines indicate, performance questions that should be asked regularly include: measures are an important tool that will allow the How are we doing? What could we be doing better? region to measure progress in implementing the CEDS As annual performance reports are prepared, each and the impact on the regional economy over time. cornerstone will be evaluated. The analysis and review The primary purpose of our CEDS is to align public will take into account traditional EDA performance and private entities around a common vision for measures, such as jobs and tax base, as well as Region 7W. assets leveraged. PUBLIC COMMENT ON 7W CEDS PLAN The required public comment period occurred announcing the public comment period to regional from September 1, 2017, to September 30, 2017. newspapers. Paper copies and electronic copies of the EDR 7W CEDS plan were also available at the CMJTS adoption is located in the Appendix. CMJTS provided a link to the Region 7W Comprehensive Economic Development Strategy (CEDS) plan on its website at: www.cmjts.org, for the 30-day comment period and a press release 35 CONTACTS Comprehensive Economic Development Strategy in Central Minnesota Jenn Russell Economic Development Supervisor and Grant Project Manager Email: jrussell@cmjts.org Phone: 320.250.8157 Tricia Bigaouette Finance Director and Economic Development Division Director Email: tbigaouette@cmjts.org Phone: 763.237.4491 Barbara Chaffee Email: bchaffee@cmjts.org Phone: 763.271.3711 37