DOUGLAS COUNTY

Economic
April 2010

IN S I G H T
TRAINING TOMORROW’S WORKFORCE
There is a certain difficulty in preparing for the next generation of workers at this time,
as our economy begins to move out of the recession and businesses begin the recovery
process. While the need to focus on increasing both sales and efficiencies is of crucial
importance, the potential workforce challenges that are facing companies throughout
the nation and the world continue to loom in the not to distant future. The effects of
Baby Boomer retirements over the coming years will be felt by all industry sectors, and
thought must be given as to how to address and overcome these challenges.
The Challenge:
Starting in 2008, the Baby Boomer generation began to reach age 62 (the average
retirement age for U.S. workers). 2008 saw a 30% increase in the number of Minnesota
workers turning 62, with an estimated 52,000 individuals reaching retirement age (up
from 40,000 in 2007). During 2011, it is estimated that 60,000 Baby Boomers will turn
62 across Minnesota. This growing wave of potential retirees will put significant strain
on local and state businesses and organizations as they work to replace retirees and
INSIDE develop innovations to decrease total workforce needs.
To look at impacts locally, based upon estimates of the State Demographer’s Office,
LETTER FROM THE Douglas County is currently home to an estimated 6,640 individuals age 65 and older
DIRECTOR (2010 estimate). This age group makes up roughly 18% of our local population. By
...2 2035, Douglas County is projected to be home to 13,420 individuals age 65 and over
which will equal almost 29% of the total estimated population.
AAEDC ACTIVITIES Potential Impacts:
...2 The impacts of the aging population will not only be felt by businesses, but by
communities and regions across the nation and around the world. As stated by MN State
Demographer Tom Gillaspy, “The keys to survival and growth for businesses and the
AAEDC BOARD OF state will be directly tied to education and workforce - training, drive, and innovations.”
DIRECTORS & STAFF Without a strong workforce, communities and regions will be sorely pressed to retain and
...2 grow their existing businesses, not to mention be extremely challenged to be attractive to
organizations from outside of the area.
REGIONAL BUSINESS Based upon data gathered through an informal survey process in 2008, large employers
UPDATES. . . 3 across Douglas County shared that they are projecting significant employee turnover due
to retirement in the coming 5-10 years, with one large manufacturer projecting as much
SPRING BUSINESS as 30% turnover. According to Gillaspy, businesses shouldn’t rely on retirement-age
workers significantly extending their employment to fill this employment gap even for
BREAKFAST 2010. . . 4 the short term: “Future retirement ages may increase slightly, but people will likely be
working just 1 to 2 addition years prior to retiring.”
WWW.ALEXMN.ORG Continues on Page 3
 LETTER FROM THE DIRECTOR
The Economic Developer’s Serenity Prayer
“God, grant me the Serenity to accept the things I cannot change, Courage to change the
things I can, And Tax Incentives to cover the difference.” - Author Unknown
I’m generally not a big fan of opening my newsletters with famous quotes or sayings, but
I thought the serenity prayer fit well for this letter due to the background and challenges
presented by Mr. Gallispy and Mr. Stinson.
As highlighted in the cover story about Spring Business Breakfast, Tom Stinson and Tom
Gillaspy provided much detail about the direction and future of our economy and challenges/
opportunities going forward for Minnesota companies and its leaders. There is one piece of
AAEDC BOARD OF DIRECTORS
AND REPRESENTATION
information from their presentation that I think greatly affects economic development and
highlights its challenges. Mr. Stinson uses the term the “New Normal” to define an era of
globalization, technology, energy prices, and demography, further defining it as: David Kjos
• Slower economic growth – about 85% as fast Alexandria Township
• Slower growth in wages, portfolio incomes, and profits
• Less consumption; more savings Marc Illies
• Retirements will create many of the job openings City of Alexandria
• Skills mismatch will present a problem in replacing retiring workers
• Creative destruction/disruptive innovation are creating a new set of opportunities Corliss Stark
• More uncertainty about the future City of Alexandria
The first three bullets cause the most immediate concern. Economic development success
Deena Steffl
is traditionally measured on jobs, wages, wealth, tax base, and enticing and incentivizing
investment from the private sector. Many of state’s funding resources and even the LaGrand Township
traditional municipal tax incentive programs continue to use job creation and wage
thresholds as key factors in securing support for the business or project. If Mr. Stinson’s Kevin Gorghuber
definition of the new economic era is correct, it will certainly challenge these traditional Carlos Township
measures of economic development success, which may force communities to redefine
their municipal and business subsidy policies from job and wage base to more productivity Mary New
and efficiency measurements to garner support for projects. Hudson Township
In this era of globalization, communities no longer compete for companies and investment
with their neighboring communities. They complete with towns, states, and provinces Mark Grandgenett
that you may not be able to find on a globe. The race to recruit and retain manufacturing Lake Mary Township
companies has changed greatly in the past few years. Communities will need to be creative
and look for different ways to be more competitive on a local level, driving down costs Dr. Kevin Kopischke
while still maintaining a strong infrastructure that allows businesses to thrive. In being City of Alexandria
creative, communities will not be able to exclusively rely on the traditional tax incentive
programs to secure and attract private sector investment. They will have to find new ways AAEDC STAFF
of making an investment in economic development, something that is difficult in this time
of dwindling financial resources and anti-tax climate. Jason Murray
Executive Director
We will need courage in our leadership, both state and local, to support this changing
environment in economic development and to continue to be successful in this state, region, (320) 763-4545
and our communities. Opportunities for communities will still be abundant in this new
Patrick Kalina
economy, we just may have to change our traditional policies and programs, along with
changing the way we’ve always done business in order to secure them. Marketing & Communication
Coordinator
AAEDC Activities (320) 763-4545
Sarah Willhite, the AAEDC’s Administrative Assistant, accepted a position with US
Bank in Marshall and relocated with her family in December, 2009. Her contributions WWW.ALEXMN.ORG
to the efforts of the AAEDC are greatly appreciated.
ECONOMIC INSIGHT is edited and
Upcoming Entrpreneur/Small Business Training Event: published by Patrick Kalina at
May 5 (9-11am) - “Pricing Your Product or Service for Profit” - ATC 209 the Alexandria Area Economic
Development Commission, 610
OUR MISSION Fillmore St., Suite 1, Alexandria MN
The mission of the Alexandria Area Economic Development Commission is to 56308.
drive the economic wealth and stability of our communities.
2 ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION
 REGIONAL BUSINESS UPDATES
THE LEGACY OF ALEXANDRIA
Construction of Phase II of The Legacy of Alexandria multi-unit housing
complex is nearing completion with a projected completion time line of July
2010. Phase II of this project will result in the construction of 54 luxury
housing units including 1, 2, and 3 bedroom units. Upon completion, the
entire Legacy of Alexandria facility will consist of 116 housing units. The
Legacy is located on 34th Ave E in Alexandria, has an estimated total
construction cost of $10 million and will result in the construction of 165,845
sq. ft. of new facility space.

MASSMAN AUTOMATION DESIGN PURCHASES TALON MANUFACTURING

Massman Automation Designs, LLC of Villard recently acquired Talon
Manufacturing, which has served the microwave popcorn industry with automated
packaging machinery, along with other sectors of the packaged food industry. Talon
Manufacturing has been renamed Talon Massman, LLC, and will combine with
Massman Automation Designs’ cartoning, case packing, and end line solutions to
provide complete production line solutions to the microwave popcorn industry and
other pouch packaging customers.

WORKFORCE (Continued from Page 1)

From the regional perspective, our communities need to continue to attract and retain young individuals and families to
meet our business’s workforce needs. Research has shown that there is no silver bullet when it comes to the recruitment
of either individuals or businesses, but efforts must be made if our communities and our region is going to continue to
prosper into the future.
What is being done:
In a growing effort to increase awareness of regional career opportunities and to address future workforce concerns on
the local level, a number of partnerships between schools and businesses are gaining traction to develop new business-
based curriculum within our K-12 school systems. In one example, Alexandria District 206 is working to utilize Project
Lead the Way curriculum with support from a number of manufacturing businesses and support organizations to provide
innovative, integrated coursework for students interested in math, science, engineering related careers. Other districts
throughout the region are forming similar partnerships to both create a broader awareness of career opportunities and to
provide hands-on learning opportunities to develop our future workforce.
At the postsecondary level, Alexandria Technical College continues to respond to companies from throughout the
region to develop traditional and Customized Training programs to meet the educational needs of the current and future
workforce. According to ATC President, Dr. Kevin Kopischke, “Alexandria Technical College continues to focus on
its two main customer sectors: Those who are in need of career entry or career-changing learning opportunities and
incumbent workers who are in need of up-skilling or retooling of their skill sets. A major factor that will continue to be
on the horizon for all of this state and country is our ability to capture the awareness and interest of high school student
to engage them in manufacturing and other science and math related careers. We simply must build more connections
between K-12 and our regional two-year colleges that provide students with access to college-level work as they prepare
for their careers. This learning and teaching design which was once viewed as a ‘future opportunity’ is in front of us
today, and we need to be very diligent about implementing it immediately.”
Moving forward:
As so aptly stated by Tom Gillaspy (State Demographer) and Tom Stinson (State Economist), “The ‘normal’ of yesterday
is gone. We need to accept this and move forward. While the changes may be frightening, times of great change are
the times when great organizations get started and great opportunities are created.” We need to embrace the change
and move forward to take advantage of the opportunities that have been created for our businesses, communities, and
future workforce.
WWW.ALEXMN.ORG
ECONOMIC INSIGHT 3
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Alexandria, MN
Permit No. 161
610 Fillmore St, Suite 1
Alexandria, MN 56308
Ph.: 320.763.4545
Fax: 320.763.4457
Email: aaedc@rea-alp.com
Web: www.alexmn.org

Contact Patrick Kalina to make address

corrections by phone at 320.763.4545 or
by email at pkalina@rea-alp.com.

The Alexandria Area Economic Development Commission is a local collaborative effort with funding provided by the City of
Alexandria, City of Garfield, Douglas County, and the Townships of Alexandria, Brandon, Carlos, Hudson, LaGrand, and Lake Mary.

Spring Business Breakfast 2010

State Economist Tom Stinson and State Demographer Tom Gillaspy provided
a keynote presentation on the future of the Minnesota at a Spring Business
Breakfast on Wednesday, March 17th at the Alexandria Technical College.
The Breakfast was organized and sponsored by the Alexandria Technical
College Customized Training Center and AAEDC, and was presented to over
70 business leaders and representatives from throughout the region.
Entitled “The New Normal - The Challenge for Minnesota,” Stinson and Tom Stinson Tom Gillaspy
Gillaspy’s presentation focused on the financial, demographic, and State Economist State Demographer
business changes and challenges that have recently taken place throughout the state and nation and will be affecting
businesses and communities across Minnesota into the future. Key topics of their presentation included:
- Impacts of the recession on businesses, workforce, and communities throughout the state and country
- Impacts of unemployment, underemployment, and skills gaps on workers and businesses
- Future employment and workforce concerns directly tied to Baby Boomer retirements
- Impacts of an aging population on housing, employment, purchasing, and consumer demands
- Future talent needs of businesses and the impacts of talent shortages on communities and regions
- The critical need for high quality eduction to develop tomorrow’s workforce
- Industry sectors that are primed for recovery or already moving into the recovery process
For a copy of the Spring Business Breakfast presentation materials, please contact the AAEDC.
WWW.ALEXMN.ORG
4 AAEDC/ECONOMIC INSIGHT