Regional Analysis

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Minnesotas Renewable Energy Industry and
Workforce

• Kyle Uphoff
• Regional Analysis Outreach Manager
• Minnesota Department of Employment and Economic
  Development (DEED)

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About DEEDs Regional Analysts

• Collaborate with regional stakeholders on new
  research
• Extend access to DEED reports and statistics
• Conduct presentations and training onregional
  economy and labor market
• Original research and analysis intended to
  answer the tough questions
• Five regional analystsstationed across the state

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Renewable Energy Research Components
Education Government Chambers of
Commerce Industry Organizations Others
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Wind

• 40-140 construction jobs are created per 100 MW
  power generated in addition to 6-20 permanent
  maintenance jobs.
• A typical 100 MW wind farm creates 500K to
  1Million in revenue
• As of 2008, MN had 1,299 MW of wind power
  translating into a theoretical value of 130
  long-term employees and 520-1,820 construction
  jobs and 13 million in revenue.
• A nationwide boost from 6,000 to 50,000 MW would
  create 150,000 mfg. jobs- about 3,000 for MN

Sources National Renewable Energy Laboratory
and Renewable Energy Policy Project
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Wind (continued)

• MN ranks 3rd in wind energy production with 68
  wind farms- 56 are within the WIRED region.
  Seven are adjacent to the region.
• Manufacturing and servicing plays an important
  role with employers like Suzlon, SMI Hydraulics
  and Trico TC Wind

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Biodiesel

• At the 60 million gallon soy diesel production
  level, total impact of soy production is
  estimated at 410 million of revenue.
• Total output value taking all industry sectors
  into account is 928 million.
• Total employment impact is estimated at 5,668
  jobs
• 13 of soy is projected to be consumed in
  biodiesel
• 3 plants in MN- all are in WIRED region and
  employ 30-40 people.

Source MN Dept. of Agriculture
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Ethanol

• At 550 million gallons (2006), Minnesota
  generated 2.77 billion in total economic impact
  or 10,321 jobs.
• Projections indicate 4.95 billion in economic
  impact and 18,461 jobs for 2008.
• Note that projections to not take current
  conditions into account.
• 17 out of 21 operating or planned ethanol
  operations are in WIRED and employ between 30-50
  people.
• 15 (2006)of the total corn crop is converted to
  ethanol and is projected to reach 25 by 2008.

Source MN Dept. of Agriculture
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Total Renewable

• Based on these analyses, renewable energy
  accounts for about 17,289 jobs in MN- primarily
  in the WIRED region.
• 214.6 million in tax revenue was generated in
  from industries in the WIRED region and
  approximately related to renewable energy- most
  of this came from energy power generation,
  transmission and distribution.

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Employment Change in Renewable-Related
Industries MN, 2000-07
Power/Communication Construction
Ethanol Mfg.
Turbine Power Equipment Mfg.
Soy Processing
Other Electrical Power Generation
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Employment and Innovation
Employment
Commoditization
Maturation or the Golden Age
Microchips?
Computer Mfg?
IT Services?
Expansion/ Speculation?
Correction
Inception
Biotech?
Nanotech?
Renewable Energy?
Time
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Innovation MN Clean Energy Patents by Year,
2002-07
The Cleantech Group
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Innovation MN of Clean Energy Patents by
Year, 2002-08
The Cleantech Group
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The Cleantech Group
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Innovation MN of Clean Energy Patents, 2002-07
The Cleantech Group
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Research Development

• As of 2007, there was 68 million in business
  expansion activity around R D. Of ten state
  projects- two were listed within the WIRED region
• As of 2004, MN spent 5.2 billion on industrial
  RD and 560 on academic RD. About 2 million
  was spent on basic chemical RD of which ethanol
  would be a part.
• There are 3,200 jobs in engineering and RD in a
  region roughly encompassing the WIRED region.
• These jobs are expected to grow 17 statewide
  between 2006 and 2016.

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Projected Regional Employment in Occupations
related to Biodiesel/Ethanol Production
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Projected Regional Employment in Occupations
related to Renewable Equipment Manufacturing
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Projected Regional Employment in Occupations
related to Electricity Generation
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Skills and Knowledge Areas in Renewable-Energy
Related Occupations
Skills
Knowledge

• Active Listening
• Reading Comprehension
• Quality Control
• Equipment Maintenance
• Troubleshooting
• Repair Equipment Selection
• Monitoring
• Math

• Mechanical
• Production and Processing
• Math
• Building and Construction
• Administration and Management
• Customer Service

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Population Change 1990 to 2000
Source 1990 2000 Census
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Lessons from the Biofuels Industry

• An AURI study found that 87 of biodiesel and
  ethanol plant managers have challenges finding
  qualified workers
• Eighty percent reported challenges in improving
  employee efficiency.
• Sixty-one percent had trouble retaining workers.
• Thirty-two percent see increased training
  opportunities for staff as being beneficial to
  industry improvement growth.
• Eighteen percent see accelerated training as
  being helpful.

AURI-Talent Development Issues and
Opportunities in the Biofuels Industry
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Lessons from the Biofuels Industry

• Plant managers cited the following as being most
  important in hiring a new employee
• Skills in multiple disciplines (94)
• Leadership/team building (93)
• Equipment Operation (88)
• Manufacturing process and technology (81)
• Previous hands-on experience with training (79)
• Previous biofuel plant experience (65)

AURI-Talent Development Issues and
Opportunities in the Biofuels Industry
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Next Steps

• Benchmark Data
• Employer interviews
• Occupations in Demand
• Skills in Demand
• Training resources barriers to skill
  development
• Asset Mapping
• Human Capital
• Research Development
• Financial Capital
• Industry Base
• Connective Organizations
• Infrastructure
• Quality of Life

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Where can I get this information?

• Kyle Uphoff (RAO Manager) (651)-259-7185
• Central/SW Cameron Macht (320)-231-5174
• Northwest Nate Dorr (218)-333-8220
• Southeast Jennifer Ridgeway (507)-285-7327
• WWW.DEED.State.mn.us/LMI