HOEVEN, INDUSTRY LEADERS HIGHLIGHT NORTH DAKOTA, SOUTH DAKOTA MANUFACTURING CONFERENCE

FARGO, N.D. - Gov. John Hoeven and officials from the state’s manufacturing industry today kicked-off the first ever regional manufacturing conference, Where Manufacturing Matters. The conference, which runs Monday and Tuesday at the Fargo Ramada Plaza Suites, is designed to present North Dakota and South Dakota manufacturers with real world tools, networking opportunities, and access to world-class experts in manufacturing.

Hoeven highlighted the fact that North Dakota was one of only three states in the nation to show growth in manufacturing jobs in 2005. Last year North Dakota gained more than 7,000 jobs and more than 640 new businesses, manufacturing was an important segment of that growth. Since 2001, North Dakota manufacturers have added over 1,900 new jobs according to the Bureau of Economic Analysis (BEA), while manufacturing employment nationwide has declined.

“North Dakota has innovative and committed manufacturers and we are working hard to help them remain competitive and successful in our state,” Hoeven said. “The fact that we were one of only three states in the nation to grow manufacturing employment last year and in the last five years is a real testament to our manufacturers, their employees and to North Dakota’s outstanding business climate.”

Hoeven said manufacturing is vital to the state’s economy and is playing a key role in improving wages and providing attractive job opportunities. The Bureau of Labor Statistics reports that average annual pay for manufacturing jobs in North Dakota was $36,377 in 2005, up from $31,619 in 2001.

North Dakota Commerce Commissioner Shane Goettle said manufacturing is the fourth largest industry in the North Dakota, making up 10 percent of the state’s total economy in 2005 and contributing $2.2 billion to the state’s gross domestic product according to the BEA.

“Manufacturing plays a major role in generating new wealth for North Dakota, and has been a top contributor of economic growth and diversity to North Dakota’s economy in recent years,” Goettle said. “Every dollar in sales of a manufactured product supports $1.37 in other sectors of the economy.”

A number of key indicators for manufacturing have been increasing in the last five years including:

2001 2005
# of Manufacturing Establishments 793 824
Total Wages $760.2 mm $942.3 mm
Average Weekly Wage $608 $700

Sally Bosh, CFO of Phoenix International, a John Deere subsidiary based in Fargo, said North Dakota’s strength in the manufacturing sector is a result of several factors including an extremely productive workforce, low business costs and business owners who are committed to being here.

“Continuing the growth of manufacturing in the Dakotas is important in stimulating job opportunities, retaining young people in the state and even attracting them from out of state,” said Bosh, who is chairperson for the Dakota Manufacturing Extension Partnership (Dakota MEP). “It is important to help our manufacturers become more competitive and productive through commitments to becoming lean enterprises.”

Manufacturers nationwide, and in North Dakota, are under immense pressure to reduce costs. The Dakota MEP works to help improve productivity which helps wage gains while still being competitive in a world market. The state Commerce Department provides support to North Dakota manufacturers through the Dakota MEP. Randy Schwartz, director of the Dakota MEP, said the prices of manufactured goods in the U.S. have decreased 9 percent since 1995 while overall prices have increased 22 percent.

“Because of rapid advances in technology and stiff international competition, domestic manufacturers don’t have the latitude to raise prices that nearly every other industry in the country has,” Schwartz said. “In order to remain competitive our manufacturers must constantly be seeking ways to become more productive and efficient.”

The Dakota MEP provides technical assistance in a variety of areas, specializing in Lean Enterprise services. Between July 2004 and June 2006, the Dakota MEP working with the North Dakota Small Business Development Center has served 2,705 North Dakota clients. These companies have realized new and retained sales of $69.1 million, have saved $4.5 million in costs, have added or retained 916 jobs, and invested $48.4 million in modernization.

More than 200 people are registered to participate in the two-day conference which features presentations by nationally-acclaimed and industry-leading authors, consultants and business executives.
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