Minnesota Improves Its National Manufacturing, Logistics Rank
Minnesota scored higher or remained stagnant in eight out of nine categories listed in a Manufacturing and Logistics Report, produced by Ball State University’s Center for Business and Economic Research (CBER). All 50 states were graded in topics ranging from human capital to global reach.
The report, prepared for manufacturing policy group Conexus Indiana, measures the health of the manufacturing and logistics industries, the state of human capital, the cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, the state tax climate and global reach.
The 2015 grades Minnesota received are:
- Manufacturing: B-
- Logistics: B+
- Human Capital: A
- Worker Benefit Costs: B
- Tax Climate: F
- Expected Liability Gap: C+
- Global Reach: C
- Sector Diversification: C
- Productivity and Innovation: B
Productivity and innovation stuck out as the sole detractor in Minnesota’s scorecard, dropping from an A in 2014 to a B. The state’s manufacturing industry grew from a C+ to B-, as did the logistics industry, rising from a B to a B+.
No category experienced change beyond a half-letter grade (aside from production and innovation), which reiterates the ongoing economic stability of Minnesota.
The study also noted U.S. manufacturers posting record levels of production, meaning the worst effects of the recession have ended.
“Overall, only 13 percent of lost jobs over the past decade, which are less than 4 percent of all manufacturing jobs, can be linked to international trade and most of trade related job losses are in low productivity sectors,” said Michael Hicks, director of CBER.
In tune with this report’s findings, the state’s unemployment rate saw its first change last month (an uptick of 0.1 percent), while the Minnesota Department of Employment and Economic Development received nearly $6 million in grant money to fund job training programs in high-growing fields like manufacturing.