< Previous36 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E“Businesses choose Red Wing and they continue to grow here because of its location midway between the Twin Cities and Rochester [45 minutes to each],” says Rogness. “The local labor pool is drawn from these surrounding communities, as well as from nearby Wisconsin. Red Wing is unique with a large number of workers being considered craftsman in local industries that make shoes, boots, skates, safety harnesses, graphic products and metal fabrication.”Red Wing is also one of nine active port communities in Minnesota, including Duluth, St. Paul and Winona — with Winona being another example of how businesses can grow in smaller communities. Located on the river about 64 miles south of Red Wing, Winona’s diverse economy is fueled by more than 60 manufacturers and several advanced technology companies. Fastenal is one such company. Founded in Winona in 1967, the manufacturer of fasteners, tools and supplies for manufacturing companies has since become a Fortune 1000 company (ranked No. 566 in 2018). Fastenal recently announced it would build its new office building on Winona’s riverfront. Fastenal’s headquarters is a short distance from the new development on Theurer Boulevard, and the new offices will be used to house 400 to 600 people. The company has revenues of $4.4 billion and 21,000 employees worldwide.Approximately 70 miles south of the Canadian border, in northwest Minnesota, Thief River Falls is a regional center for agriculture, manufacturing and distribution. The city is home to Digi-Key Electronics, a global economic components distributor founded in 1972. Digi-Key employs almost 3,400 people in the city of nearly 9,000. Digi-Key is doing a $300-million expansion. Digi-Key Electronics recently broke ground on a new 1-million-square-foot expansion next door to its current facility in Thief River Falls. The expansion will create 1,000 jobs over the next 10 years, and construction is expected to be completed by 2021. Good to GrowBetween its agricultural legacy and entrepreneurial spirit, the North Star State is a likely place for food giants to grow. Austin is located about 35 miles from Rochester and 95 miles south of Minneapolis-St. Paul. Austin is continuing to grow and draws on a population of hundreds of thousands of people from surrounding cities and counties within commuting distance. The city prides itself as having the charm of a small town with many of the qualities of larger cities. “Hormel Foods has been headquartered in Austin since it was founded in 1891,” says a company representative. “As one of the drivers of the modern food supply chain, George A. Hormel, saw the great potential that Austin had to offer. For more than 127 years, our company has called Austin home, and we are committed to supporting growth and employment opportunities in the communities where our employees live and work.”Hormel is an employer of choice in the area and has helped support the community through various efforts. The Hormel Foundation, MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 37established in 1941, supports charitable, educational and scientific organizations in Austin, giving more than $244 million to the community, most of it since 2000. In addition, The Hormel Institute, established in 1942, conducts world-class cancer research in partnership with University of Minnesota, Mayo Clinic and others. It has a staff of 130 cancer research scientists. “Being in Austin allows our global company to stay connected to our 127-year-old legacy and maintain our entrepreneurial spirit for innovation while continuing to grow our brands and our company across the globe,” the representative said. Since 1952, the southwest Minnesota town of Marshall has watched as its homegrown frozen-food delivery company, Schwan’s Company, became a household name across the U.S. The company started when 23-year-old Marvin Schwan set out to deliver 14 gallons of ice cream to customers in rural Minnesota and has since grown into a $3 billion company ranked No. 154 on Forbes list of largest private companies, while still remaining headquartered in Marshall. “I believe that Marvin Schwan would be proud that his entrepreneurial spirit still drives us today,” said CEO Dimitrios Smyrnios. “We are committed to continue building on our legacy of making high-quality, indulgent-to-wholesome food and driving innovation that will enable our company to grow in new and exciting ways. I’m proud of what our company and people have accomplished and excited about where Schwan’s is heading with our employees and customers.”Marshall itself now has a population of 13,664 which expands every day as workers are drawn to the area from neighboring cities and counties. “The city of Marshall has a history of successfully partnering with businesses to promote retention and expansion,” says Tara Onken, economic development director of the Marshall Area Chamber of Commerce. “We offer financial incentives including reduced land costs, waived assessments and Community Reinvestment Fund loans.”Onken notes Marshall’s culture of leadership development and community partnerships helps businesses and the community grow and provides a top-notch quality of life. “The city of Marshall has a small-town feel with low crime rates but includes large career opportunities and amenities,” says Onken. “As a result, the city is able to recruit highly skilled professionals throughout the nation.”Meanwhile, in far north Minnesota, Marvin Windows & Doors employs more people than the population of the town of Warroad where it’s based. Founded in 1904, the privately held, family-owned company is a premier maker of wood and clad-wood windows and doors. The company has more than 4,000 employees overall, including about 2,400 in Warroad — despite the town having a population of about 1,700. A family canoes on the Thief River in Thief River FallsPhoto courtesy of Explore Minnesotarom K-12 to college and career training, Minnesotans are a well-educated lot. Minnesota’s education system is among the best in the nation and a major key in the state’s overall economic success. In 2017, Minnesota ranked fi rst in the country (tied with New Hampshire) in the percentage of people with a high school degree or higher, according to the U.S. Census Bureau’s American Community Survey. The survey found that 93.1 percent of Minnesotans had earned a high school diploma, while 36.1 percent had at least a bachelor’s degree. Compare that to the respective averages of 88 percent and 32 percent nationally, and it’s easy to see why businesses fi nd the workforce in the state so attractive. Each fall, more than 400,000 students enroll in the state’s post-secondary institutions. In 2015-2016, the state produced more than 103,000 graduates. The top degrees awarded in the state are business, health care, education, computer and information science, biological and 38 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E H I G H ER ED U C A T I O Nby S AVAN NAH K I N GFMinnesotans earn high marks for education. Minnesot-Minnesot-Minnesot-Minnesot-Minnesot-Minnesot-Minnesot-Minnesot-A++Photo courtesy of University of Minnesotabiomedical sciences, engineering, and engineering technology. In addition to educating native Minnesotans and students from around the country, the state’s universities and colleges also welcomed over 15,000 students from outside the U.S. in 2017. Almost 7,200 of these international students attended classes at the University of Minnesota. Meanwhile, more than 8,500 students attending Minnesota colleges or universities participated in study-abroad programs, earning a valuable set of real-world work skills and a global perspective. The University of Minnesota is a vital and growing component of the state’s talent pipeline. On the Twin Cities campus, the first-year retention rate has continued to grow over the last three years, reaching 93.2 percent, which has contributed to an overall increase in four-year graduation rates (65.2 percent.) U of M campuses across the state are awarding more degrees. Compared to the previous decade, the U of M’s Crookston campus awarded 92 percent more degrees; its Duluth campus awarded 15 percent more and the Twin Cities campus graduated 22 percent more. Those graduates tend to stay put, with some two-thirds of the university’s students staying to live and work in the state. The University of Minnesota’s capacities extend beyond the classroom. The university ranks No. 8 among U.S. public universities for research spending and has launched more than 120 startups since 2006, with about 80 percent of those startups remaining in business today. In addition to the University of Minnesota, with its five campuses around the state, students also flock to Minnesota State, the fourth largest system of state colleges and universities in the country. With 30 colleges, seven universities and 54 campuses statewide, this system enrolls more than 375,000 students and awards 39,000 degrees annually. The system offers the lowest tuition in the state, with 28 to 53 percent of students graduating with no debt (depending on the degree and level of program). Even with its robust public higher education system, Minnesota’s private universities and colleges are extensive. In fact, the 17 private colleges that belong to the Minnesota Private College Council alone account for more than 57,000 undergraduate and graduate students annually. MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 39Minnesota State is the fourth largest system of state colleges and universities in the country.93.1% 93.1% Minnesotans who have a high school diploma.36.1%36.1%Minnesotans who have a bachelor’s degree or higher.s the labor market tightens across the country, Minnesota has put several successful programs in place to ensure businesses can access and train the employees they need to be successful. According to “The Skills Gap in US Manufacturing: 2015 and Beyond,” a study by Deloitte Consulting LLP and the Manufacturing Institute, there will be a national shortage of 2 million manufacturing employees over the next decade, impacting the bottom line for most manufacturers. Minnesota is working to address this challenge. The Minnesota Apprenticeship Initiative was created in 2015 with the goal of helping employers develop programs to recruit, train and retrain 1,000 new apprentices by June 2020 in 30 high-growth occupations and industries including advanced manufacturing, agriculture, health care services, information technology and transportation. Employers can receive up to $5,000 for each apprentice to help cover the costs associated with apprenticeships including supplies, materials, instruction and infrastructure. The initiative is funded through a $5-million federal grant from the U.S. Department of Labor and administered jointly by two state agencies, the Minnesota Department of Labor and Industry (DLI) and the Minnesota Department of Employment and Economic Development (DEED). More than two dozen Minnesota employers have already created apprenticeship programs and more than 11,400 apprentices are working in the state. Some of the companies create registered apprenticeship programs to build their future workforce include Fairview Health Services, Owens Corning, Potlatch and Viracon. “In all skilled occupations across Minnesota, employers are seeking solutions to train new and existing workers for today’s more technical jobs,” said DLI Commissioner Ken Peterson. 40 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EW OR K F OR C E D E V E L OP M E N TMinnesota’s companies and institutions are working together to sharpen worker skills across industries. by S AVAN NAH K I N GACLOSING THE GAP CLOSING THE GAP 42 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E“Apprenticeships can be proactive and productive solutions to address this need.” Uponor North America in Apple Valley developed a three-year apprenticeship program that will help the company staff its maintenance department — an area where it is particularly challenging to find qualified workers. The program will involve more than 6,000 hours of on-the-job training and related instruction. The manufacturer of plumbing and piping systems has said it may create additional apprenticeships for other departments in the future. “Talent shortages and skill gaps are slowing manufacturers’ efforts to expand, innovate and thrive,” said Bill Gray, president of Uponor North America. “By developing an apprenticeship program in combination with internships, educational opportunities and other recruitment initiatives, we hope to mitigate this widespread trend.”In addition to the state’s apprenticeship program, DEED has awarded $55.8 million in workforce development grants since 2011 under the Minnesota Job Skills Partnership (MJSP) to train more than 66,800 workers. The partnership involves educational institutions and businesses working together to develop a plan to train workers and applying to secure funding for specific training. Each grant requires a one-to-one cash match or in-kind contribution from the participating businesses. Among the community colleges and companies to receive funding, Rochester Community and Technical College was awarded a MJSP grant of $371,922 for the training of cybersecurity professionals at the Mayo Clinic in Rochester. The funds will be used to provide a venue for students to practice applying the technical skills required for a Certified Information Systems Security Professionals certification. MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 43“RCTC is excited about this opportunity to serve one of Rochester’s largest employers,” said RCTC Director of Business and Workforce Education Jennifer Wilson. “In the state of Minnesota, business and education partnerships are crucial for enhancing a strong training program. It is these partnerships that allow us, as educators, to develop curriculum that meet the standards of industry.”Other recent partnerships include: • Normandale Community College and Medtronic to develop a workforce strategy for more than 1,000 employees to receive information and data literacy training. • Anoka-Ramsey Community College and Kraus-Anderson Construction for four training curriculums involving technology, compliance, and management skills. • South Central College and Daikin applied to restructure the company’s current new hire orientation to a more specialized orientation process. • Minnesota State University, Mankato and Gentle Touch Health to develop a training program for more than 600 employees that includes emotional intelligence, cultural competency, dementia stimulation and leadership training. “The Minnesota Job Skills Partnership works to ensure that critical training for high-skill jobs is available to Minnesota workers,” said DEED Commissioner Shawntera Hardy. “This is a win-win for Minnesota businesses remaining competitive and educational institutions offering advanced training.” 44 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EEN T R EP R EN E U R SH I P AN D I N N O V A T I O Nby G AR Y D A U G H T ER SAccess to funding propels Minnesota’s entrepreneurs.ing Yeh is bullish on Minnesota.Yeh, a 43-year-old entrepreneur, is founder and CEO of w, a med-tech startup launched in suburban Minneapolis in 2014. “I’m quite pleased with the energy that the Minnesota ecosystem is producing as compared with other parts of the country and the world,” he says. “From a connectedness standpoint, we rate very high, and from an investment standpoint, we do extremely well. That’s because of the high number of angels within the community.”Those plentiful avenues of funding are helping StemoniX save lives. StemoniX develops 3D human spheroids to support early drug discovery. The idea came to Yeh after a harrowing brush with Hodgkin’s lymphoma, which required him to absorb a maximum chemotherapy dose. With no way to test his body’s potential reaction, his doctors couldn’t guarantee that the treatment, itself wouldn’t kill him. Having survived chemo and his cancer, Yeh set about finding a way to help drugmakers better predict potentially adverse reactions to medicines, which are a frequent cause of death.“We make human ‘microOrgan’ and ‘microTissues’ from skin,” he says. “We then use engineering techniques to further shape and structure them to PMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 45Next >