The Mankato region benefits every year from hundreds of millions of dollars and thousands of jobs that emanate from Minnesota State University. These assets should not be taken for granted.
A report released last week by Wilder Research showed MSU’s total economic impact on Mankato to be $377 million, an amount equivalent to about 10 percent of the retail sales in Blue Earth County. MSU students working in the community make up the equivalent of 7,100 full-time jobs.
With these kind of assets, the region should be bursting with growth and prosperity. While the growth of the region has been reasonable and appears to be on the upswing, keeping the brainpower in Mankato remains challenging.
Private sector wages continue to lag the rest of the state and even some other regional centers. The average weekly wage in Blue Earth County at $631 per week, or about $15.77 per hour, remains 28 percent below the statewide average. The good news: The average wage rose 6 percent from 2005 to 2006, while statewide the rate was just 3.3 percent. Other good news: Mankato’s average wage is competitive with St. Cloud’s, which is $639 per week.
Government sector wages are stronger in the Mankato region at $812 per week, 2 percent higher than the statewide average. But that sector has been in decline and will likely continue to do so with present state leadership that is not interested in upping funding for critical investments.
The growth of private sector wages doesn’t happen by government mandate. Wages are driven up by competition. A new Wal-Mart Distribution plant, projected to have entry level wages at $13 per hour, will pull up the wages of the medium-skilled workforce. Construction projects, including Wal-Mart and other projects like those planned for MSU, should bolster that sector of wage earners.
Groups like the Greater Mankato Growth Inc., the new moniker for the merged chamber and economic development group, will have an important role in marketing the area to larger employers.
Small, entrepreneurial businesses need nurturing as well. The best thing government and private sector partnerships can do is collect information resources for these entrepreneurs and accelerate their learning curve. One-stop shops for venture capital would help too.
There are other opportunities for local businesses to tap into the MSU market. Up to 80 percent of full-time students have jobs. Employers need to see these students as not fill-in part-time temporary workers, but potential for the future brains behind their businesses.
While some 50 percent of MSU graduates say they’d like to stay in Mankato, economic development officials estimate only about one third of them can be accommodated.
Without concerted efforts of private and public sector, the Mankato region will be hurt by a brain drain that can be prevented.
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