An article about manufacturing jobs caught my attention.
The Washington Post’s Wonkblog article, What Republicans and Democrats get wrong about American manufacturing, challenges the notion that American manufacturers are moving domestic jobs overseas to take advantage of less expensive labor and, as a result, manufacturing production in the U.S. is down. In fact, the article points out (drawing on an op-ed for the Los Angeles Times written by Daniel Griswold of the Mercantus Center at George Mason University) that American manufacturing is actually producing at one of its highest points ever, rather than lowest. The explanation for job loss lies within both the types of products being manufactured and the technology (due to educational requirements to operate the technology) being used to produce them. This is explained in the op-ed:
“Access to expanding global markets allows U.S. manufacturers to enjoy economies of scale, reducing their per-unit production costs and enhancing their competitiveness. The additional revenue can be reinvested in research and development, leading to new products and expanding market share. This is why U.S. jobs in trade-oriented industries typically pay 18 percent more than non-trade-connected jobs.”
The rightful conclusion here is not that America is manufacturing less, and as a result has fewer domestic manufacturing jobs, but rather that the game has changed and despite a massive expansion in manufacturing output, we have witnessed a 37% decline in manufacturing jobs at home.
But does this trend hold true for our local economy in Grand Forks County?
First, it’s worth pointing out the importance of the manufacturing industry to Grand Forks County. Two of our top 10 employers are manufacturers: LM WindPower is our 8th largest (Manufacturing) and J R Simplot is 10th (Food Manufacturing). They account for 5.1% of the county’s workforce.
But let’s look at the trends being discussed. On the national scale, the above article suggests that although the number of jobs decreased, wages increased and the net of the equation is positive.
Are we witnessing the same trend in Grand Forks County?
Jobs? Down Slightly.
We have seen slightly fewer jobs in the manufacturing industry, although not significant. From Q4 2014 to Q4 2015 Grand Forks County lost 0.2% of manufacturing jobs.
Wages? Big Increase.
From Q4 2014 to Q4 2015 Grand Forks County’s manufacturing industry increased wages by 14% (7.1% above average; average weekly wages by industry). A side note worth mentioning is that worker separation has decreased dramatically, down 26.9% from Q2 2014 to Q2 2015. This speaks to the strength of our manufacturing sector economy and points to our Midwestern values – our employees are dedicated and hard working.
So, in short, yes we do see similar trends in Grand Forks County, but with varying degree of impact.
Given the minimal jobs impact and the tremendous growth in wages and low employee turnover it is clear to see that Grand Forks County’s manufacturing is strong and important piece of our economy.
Contributor: Brandon Baumbach, Business Development Projects Coordinator