I'm a bit of a data nerd. At Greater Bemidji, we keep an eye on all sorts of data and demographics about our region. We track things like population, income, unemployment, job growth and private investment.
Why? Because by watching these numbers and trends, we can spot changes 鈥� both good and bad.
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One trend that has always stood out for our region is the lack of manufacturing.
We use something called 鈥淟ocation Quotients鈥� to track industries. A Location Quotient measures how concentrated a specific industry (like manufacturing) is in a region compared to the national average. It's calculated by comparing the percentage of local employment in that industry to the national percentage. If the Location Quotient is greater than 鈥�1,鈥� it means the industry is more concentrated here than nationally. If it's less than 鈥�1,鈥� it's less concentrated.
For manufacturing in our region, the Location Quotient is 0.4 鈥� one of the lowest in Minnesota. This has been a concern for me throughout my 37-year career here in Bemidji.
Manufacturing is a cornerstone of economic development. It's not just about making stuff; it creates good-paying jobs, fosters innovation and boosts other industries. Understanding its impact helps you see all the benefits it brings to a community.
The most direct impact of manufacturing is job creation. Manufacturing plants need a diverse workforce, from skilled engineers and technicians to operators and support staff. These jobs usually pay better than service sector jobs, giving families economic stability and a better quality of life.
Manufacturing also has a big ripple effect on other local businesses. Suppliers of raw materials, logistics companies, and service providers all benefit from manufacturing operations. For example, a car assembly plant can create opportunities for steel manufacturers, parts suppliers, and transportation companies. This interconnectedness stimulates economic activity and helps create a thriving business ecosystem.
Manufacturing is often a hub for innovation. Companies invest in research and development to improve their products and processes, leading to technological advancements. This innovation can spill over into the local economy, encouraging other businesses to adopt new technologies and practices. The concentration of manufacturing expertise also attracts academic institutions and training centers, contributing to a skilled workforce and further driving innovation.
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A strong manufacturing sector makes a region more competitive. It allows local businesses to produce goods efficiently and cost-effectively, competing on a global scale. This competitiveness attracts investment, both domestic and foreign, bringing capital into the local economy and promoting further growth. Additionally, having a reputation for manufacturing excellence can draw skilled workers to the area, ensuring a steady stream of talent.
Manufacturing companies often engage in community development initiatives, contributing to the social fabric of the region. Historically, they invest in local schools, health care facilities and recreational areas, improving the quality of life for residents. Moreover, manufacturing jobs can foster a sense of pride and identity within the community 鈥� think about how many communities you know that are known by their largest manufacturer.
Simply put, having a strong manufacturing base has significant benefits felt community-wide.
Why am I sharing this? While data and trends can highlight an issue or challenge, they don鈥檛 typically instruct you on solving the issue. Truth be told, I don鈥檛 know how to solve this issue. What I do know is that just because we have lived with this gap for decades doesn鈥檛 mean we have to live with it forever.
As a community, we need to identify what is in our control. What can we do to grow our manufacturing base?
Entrepreneurship, capital, infrastructure, education and training, and a strong business environment all will likely play a key role in any strategy we identify. As a region, we will need to be committed to this fight over the long term in a sustained fashion.
This is an area where Greater Bemidji should and will lead. We are reaching out the the region鈥檚 manufacturers to get their advice and counsel. If you have any thoughts or ideas, I鈥檇 love to hear them.
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Dave Hengel is the executive director of Greater Bemidji Economic Development. He can be reached at (218) 444-5757 or dhengel@greaterbemidji.com.
The Trust Project
