St. Cloud is the dominant regional center of
Central Minnesota. The City of St. Cloud is one of the largest in Minnesota
and its influence creates population growth in nearby cities and townships.
The St. Cloud Area is also a center for economic and business activity. A
wide mix and variety of businesses and industries are located in the St. Cloud
Area. Further, the area serves an employment hub, drawing workers from most
of its neighboring counties. In order to function as a regional center, good
transportation routes must exist and the St. Cloud Area has developed all
major types of transportation. As the population and the number of employees
grows in the region, so must the housing and health care industries. Further,
the critical mass of people in the city and surrounding area has led to St.
Cloud developing as a retail-shopping destination.
All of the above factors combine to fortify
the St. Cloud Areas role as a regional center. For businesses and industries
interested in locating in the St. Cloud Area, further knowledge about the
demographic, economic, and business climate of the St. Cloud Area is
essential. The following Profile explores the St. Cloud Areas position as
an economic hub. Each section of the Profile will detail one aspect of the
St. Cloud Area. The data and figures associated with each section will help
illuminate the business climate of the St. Cloud Area. There are eight major
sections of the Profile: geography and demographics; current industry
composition; labor force composition; transportation; housing; health care;
retail sales; and infrastructure. This profile is an update to a previous
profile which was published in 2004. While the main structure of the report
is the same, the newest available data and commentary were inserted where
appropriate.
Defining the St. Cloud Area
presents several challenges. The City of St. Cloud is located partially in
three counties: Benton County, Sherburne County, and Stearns County.
However, the St. Cloud Metropolitan Statistical Area (MSA) has been defined to
include only Benton and Stearns counties. Sherburne County, despite
containing a portion of St. Cloud, has been defined to be part of the
Minneapolis-St. Paul MSA due to its location. Sherburne County is unique in
that it has St. Cloud to its north and Minneapolis suburban cities in its
southern reaches. Therefore, for purposes of this Profile the definition of
the St. Cloud Area will include only Stearns County and Benton County.
However, there will be instances when including Sherburne County will be
necessary. This will be clearly noted. Further, many sources refer to
Central Minnesota which includes Benton, Sherburne, Stearns and Wright
counties. This definition will also be used where prudent. Again, when this
definition is used, it will be well documented.
Geographically speaking, St.
Clouds location is a major advantage. The city is located along the banks of
the Mississippi River, which was an early source of trade and commerce. St.
Cloud is also situated on Interstate 94, which provides easy and quick access
to Minneapolis-St. Paul and to the Fargo-Moorhead area. The city is
approximately 70 miles from the Twin Cities, allowing individuals and
businesses to take advantage of opportunities and services in the Twin Cities
area. Meanwhile, St. Cloud is the largest city in the area and as such, it
attracts workers and consumers.
St. Cloud is the third largest
city in non-Metropolitan Minnesota. Total population in the St. Cloud MSA in
2000 was 167,392. Chart 1 illustrates the changes in population from 1930 to
2000 and projected changes through 2030. Population has grown steadily in the
St. Cloud MSA, particularly since 1970. This growth is anticipated to
continue.
Source: Census 2000 and Minnesota State Demographic Center
Map 2 illustrates the
distribution of population by minor civil division. The map clearly shows the
population density around the City of St. Cloud. Further, population density
is higher in southern Sherburne County. Western Stearns County and eastern
Benton County are relatively sparsely populated.
Source: Census Bureau
While the population has grown
in the St. Cloud Area, the rate of growth has varied as shown in chart 2.
Population in the St. Cloud MSA increased at a rising pace through 1970.
Growth then began to slow; however, it still exceeded or matched the growth
rate of the state. Including Sherburne and Wright counties in the analysis
drives the growth rate even higher. Both Sherburne and Wright counties are
experiencing growth in their northern areas associated with St. Cloud and
growth in their southern fringes from the Twin Cities metropolitan area.
Source: Census 2000
Source: Minnesota State Demographic Center
Different factors are driving
population growth in the counties. The types of population growth help
define and classify the area. Stearns and Benton counties have population
growth more typically associated with an older, established county that is
growing at modest rates as shown in chart 2. Wright County and Sherburne
County, on the other hand, demonstrate growth more typical of fast-growing
suburban counties. All four counties had significant amounts of in-migration
during the period of 2000-2005. Natural increase (births exceeding deaths)
was only a minor component of population growth.
The age distribution of the
population in the St. Cloud MSA differs from the state average, depicted in
chart 4. The MSA has a large population of individuals aged 18-24 years. The
St. Cloud Area is home to several higher education institutions, which results
in a large mass of young adults. This higher proportion of young adults
drives down the percentage of other age groups as compared to the state.
Individuals aged 25-44 constitute the largest single age group. This group is
a major component of the workforce. The median age in Stearns County is 31.6
years and 31.9 years in Benton County.
Source:
Census 2000
Population statistics focus on individuals.
Another method for considering demographics is examining household data. In
2000, there were 60,694 households in the St. Cloud MSA. The median household
income in Stearns County is $42,426; meanwhile in Benton County the median
household income is $41,968. This compares to a statewide median household
income of $47,111. Overall, households in the St. Cloud Area have incomes
lower than the state. The distribution of household income is shown in chart
5. The largest category in the area is households with less than $35,000 in
income.
Source:
Census 2000
Household income measures the wealth of a
group of individuals functioning together as a unit. Per capita income, on
the other hand, is a measure of individual income. For the St. Cloud Area,
both household income and per capita income reflect a lower than state average
level. Per capita income in Benton County in 2004 was $28,371 and in Stearns
County was $28,877. Given that Minnesotas per capita income was $36,184,
the St. Cloud Areas per capita income is only about three-fourths of the
state average and is shown in chart 6.
Source: Bureau of
Economic Analysis
While chart 6
illustrates per capita income as a whole in the region, the per capita growth
rate is more startling. From 1994-2004, both Benton Countys per capita
income growth rate (61%) and Stearns Countys per income growth rate (59%)
exceeded Minnesotas rate (57%), indicating that Benton and Stearns County are
closing the gap. Benton County grew at a rate significantly faster than
Stearns County across the 1990s. In 1990, Stearns Countys per capita income
exceeded that of Benton County. By 2001, Benton County had reversed that and
exceeded Stearns Countys per capita income. Stearns County saw a surge in per
capita income in the early 2000s, pushing it above per capita income in
Benton County.
It is probable that several
factors contribute to the disparity in income between the St. Cloud Area and
the state average. First, demographic data shows that the population in the
St. Cloud Area is younger than the state. Younger individuals tend to have
lower incomes due to educational commitments, part-time jobs and entry-level
positions. This can hold per capita incomes down. The industrial employment
mix and the wage structure also factor into the lower incomes. The next
section of this report will focus on the current industries present in the St.
Cloud Area, the employment mix and the wage structure.
The status of the current industrial mix
provides insight into the local economy. By studying employment,
establishment and wage data, it is possible to decipher major employers, wage
rates and business sizes. The St. Cloud Area is home to several major
companies and is an employment hub for the region. Total public and private
employment in the St. Cloud MSA during 2005 was estimated at 93,862 (Bureau of
Labor Statistics).
Overall, employment in the St.
Cloud Area is a relatively strong economic component. Steady employment
growth has been a hallmark of the St. Cloud Area. Employment growth rates
averaged between 3 and 4 percent per year during the 1990s. Employment
growth slowed during the first three years of the 2000s but increased again
in 2004 and 2005. Further, employment projections indicate that Central
Minnesota (including Benton, Stearns, Sherburne and Wright counties) will be
the fastest growing region in the state in terms of employment through 2010
(Minnesota Department of Employment and Economic Development).
The current mix of
establishments, employment and wages is depicted in chart 7. The biggest
sector of employment is Trade, Transportation and Utilities (approximately
21,000 employees). This industry classification includes many typical
businesses engaged in trade activities such as grocery stores, department
stores and gas stations. However, there are two sectors with higher
employment numbers that are worth noting, as they are somewhat unique to the
St. Cloud Area. These are merchant wholesalers (3,912 employees) and trucking
(1,367 employees).
Source: Covered Employment and Wages, Bureau of Labor Statistics
The industry classification
with the second largest level of employment is Education and Health Services,
with just under 21,000 private and public employees.
Health care and social assistance
comprises more than half the employment or about 13,000 jobs. Educational
services provide the approximately 8,000 remaining jobs. The location of
three colleges and universities and a technical college in the area increases
the level of employment in the educational field.
Manufacturing is the third
largest industry classification employing roughly 17,000 individuals in the
St. Cloud MSA. Major types of manufacturing include: printing and related
support activities, food manufacturing, fabricated metal product manufacturing
and nonmetallic mineral product manufacturing.
Beyond illustrating industries with high
levels of employment, chart 7 provides insight into the St. Cloud Area
economy. While Trade, Transportation and Utilities is the major source of
employment in the St. Cloud MSA, it is not the largest source of wages.
Education and Health Services is, indicating that wages are higher per
individual in those occupations. Manufacturing also appears to have higher
wages relatively. Industrial classifications with a larger portion of the
wage bar than the employment bar can be interpreted to be higher wage paying
industries. Those with smaller portions conversely, are paying slightly
less. This is true of the Leisure and Hospitality industry. Chart 8
below further illustrates this point. Education and Health Services
provide 22 percent of employment and 28 percent of wages. The Trade,
Transportation and Utilities sector, on the other hand, comprises 23 percent
of employment and only 19 percent of wages.
Source:
Covered Employment and Wages, Bureau of Labor Statistics
Viewing chart 7 can also
provide a glimpse at the average employment size per company in the industrial
classifications. Manufacturing, for instance, has a very small portion of
the establishments bar, indicating few companies. However, manufacturing
employment is a major portion of the employment bar. These two facts
together demonstrate that the few manufacturing companies in the St. Cloud
Area employ large numbers of individuals per company. Likewise, there are
many construction firms, but relatively few employees. This signifies that
most construction firms in the area are smaller businesses with fewer
employees.
An examination of earnings by
industry reveals similar insights about the St. Cloud Area economy. As shown
in Chart 9, earnings in Manufacturing;
Trade, Transportation and Utilities; and Public Administration provide the
greatest input to the St. Cloud Area economy. Further, earnings in the St.
Cloud Area are still relatively manufacturing-based. Manufacturing
contributes a significantly higher percentage of total earnings in the St.
Cloud Area than in Minnesota as a whole. This is also true of Education and
Health Services and Public Administration. Earnings by industry data further
reflect the relative lack of Financial Activities and Professional and
Business Services in the St. Cloud Area. Overall, those activities contribute
much more to the Minnesota economy than the St. Cloud Area.
Source: Bureau of Economic Analysis
Total wages and earnings by
industry data reflect the general contribution of each industry to the overall
level of income in the region. However, data discussed this far does not
demonstrate the relative wage paid to the individual worker. Average weekly
wages can be used to further examine the wage structure in the St. Cloud
Area. In addition, comparisons to both Minnesota and the Minneapolis-St. Paul
MSA will give deeper meaning to the data.
Comparatively speaking, average weekly wages
in the St. Cloud Area are low. Chart 10
compares weekly wages in the St. Cloud MSA over time with weekly wages in the
seven-county Minneapolis-St. Paul metropolitan area. Meanwhile, chart 11
compares wages by industry in the St. Cloud Area to those in Minnesota as a
whole. Both charts tell a similar story. Wages in the Twin Cities are
consistently higher than in the St. Cloud Area. More notable, however, is
that the gap between Twin Cities and St. Cloud wages is actually growing. In
1995, the average weekly wage for all industries in the St. Cloud Area was 71
percent of the equivalent Twin Cities wage. By 2005, weekly wages in the St.
Cloud Area were only 68 percent of the Minneapolis-St. Paul Area.
Source:
Covered Employment and Wages, Bureau of Labor Statistics
Average weekly wages by
industry are shown in chart 11. The average weekly wage in the Education and
Health Services industry is slightly higher in the St. Cloud MSA than at the
state level. However, every other industry in the St. Cloud MSA trails the
state average. The wage gap is highest in high-tech, high-education
industries, such as Information, Financial Activities and Professional and
Business Services. The wage gap is lowest in Public Administration, Other
Services and Construction.
Chart 11 also illustrates the
distribution of wages across industries in St. Cloud. The highest paying
industries are: Construction ($770 a week); Education and Health Services
($756); and Financial Activities ($748). The lowest paying industries are
Leisure and Hospitality and Other Services.
Source: Covered Employment and Wages, Bureau of Labor Statistics
The reasons for the wage
differential are not entirely clear. However, one possible explanation is the
difference in the employment mix between the areas. First, the St. Cloud Area
has a significantly lower percent of employment in high wage industries, such
as Information; Financial Activities; and Professional and Business Services.
In the Twin Cities MSA, 30 percent of private employment and 40 percent of
wages are in those industries.
Meanwhile, in 2005, private employment in the St. Cloud MSA in those
industries was only 16 percent of total private employment and wages were only
17 percent of total private wages. Second, wages in industries that are major
employers in the St. Cloud Area are not necessarily growing at a pace equal to
that of the Twin Cities. For example, private wages in the Trade,
Transportation and Utilities sector grew by 8 percent in the Twin Cities from
2000 to 2005. At the same time, private wages in the same sector declined by
2 percent in the same time period in the St. Cloud MSA.
While these factors may
contribute to the overall low wages, the fact remains that St. Cloud wages are
lower than the state in almost every industry. One thing, however, is clear.
Lower wages are not a reflection of productivity. The next section of this
report will detail the St. Cloud Area labor force. A thorough examination of
the labor force will reveal a well-trained and willing work force. Lower
wages do, however, present some opportunity for businesses interested in
locating to the St. Cloud Area.
The labor force is a distinctive component of
a local economy. A unique combination of education level, skills, willingness
to work, wages and commuting patterns fuse together to form the labor base in
a region. In the St. Cloud Area these factors have combined to create a
strong work force. Individuals in the St. Cloud Area are willing to work, as
indicated by strong labor force participation rates. Further, the St. Cloud
MSA is an employment center, drawing workers from a large area. Overall,
education levels are slightly below the state average, however, the presence
of several major higher-education institutions provides a substantial
counterweight.
Individuals in the St. Cloud MSA are eager to
work. Labor force participation rates are high in the St. Cloud Area as
depicted in chart 12. Overall labor force participation is 73 percent for the
MSA, while the state average is only 71 percent. Males are more likely to
work, with almost 78 percent of all men working. Female labor force
participation in the St. Cloud MSA is significantly higher than the state
average.
Source: Census 2000
Individuals eager to work and
actively seeking work have traditionally been rewarded. The St. Cloud Area
also has relatively low unemployment rates (chart 13). Benton Countys
unemployment rate is consistently higher than in Stearns County. The
unemployment rates in the two counties are very close to the state
unemployment rate and track the changes in the state rate. Unemployment
climbed from 2000 through 2003 and then fell during 2004 and 2005. In 2005,
Benton Countys unemployment was 4.5 percent, Stearns County unemployment was
4.2 percent and Minnesota unemployment was 4 percent.
Source: Local Area Unemployment Statistics, Bureau of Labor Statistics
In addition to having a ready
and able employment base in the St. Cloud MSA, the area serves as a regional
employment center. The two counties of the St. Cloud MSA draw more workers
every day than leave the area for employment. According to the 2000 Census,
there are 79,379 residents of Stearns and Benton counties that live and work
in the two-county area. Meanwhile, 10,375 residents work outside the
counties. However, 14,907 workers come into the area for employment. Thus,
the St. Cloud MSA nets an additional 4,532 workers. Counties providing the
highest number of workers into Benton/Stearns are neighboring counties
including Sherburne, Morrison and Todd counties. Map 3 illustrates the
commuting patterns of the area in reference to Stearns and Benton counties.
The darkly colored counties send workers to the St. Cloud MSA. The lightly
colored counties draw workers from the area. The net number of commuters
between counties is shown on the map. Commuting times in the region are
reasonable. The average travel time to work for a resident of Benton County
is 21 minutes and for a resident of Stearns County is 19 minutes.
Source:
Census 2000
The commuting map above shows
Stearns and Benton counties as a regional employment center. The St. Cloud
Area is also an education and training center. Education is important to the
region as reflected by the presence of several institutions of higher
learning.
Education, skills and training
are an important component of any workforce. Chart 14 depicts the educational
attainment of individuals aged 18 to 64 in the St. Cloud MSA as opposed to
Minnesota. The chart reveals that the population in the St. Cloud Area is
slightly less educated than the state. The area is home to more individuals
with just a high school diploma and no further education than the state as a
whole. There are a substantial number of individuals with some college
education. This may reflect the high college student population in the area.
This lower overall education level may partially explain the lower wages.
Source: Census 2000
The St. Cloud MSA is home to a
handful of colleges, universities, technical schools and business schools.
There are three liberal arts colleges and universities in the area: St. Cloud
State University, the College of St. Benedicts and St. Johns University.
St. Cloud is also home to St. Cloud Technical College. Further, Rasmussen
Business College has a campus in St. Cloud. Data on the major higher
education institutions can be found in table 1.
St. Cloud State University (SCSU)
is located on the banks of the Mississippi River in St. Cloud. St. Cloud
State is the largest member of the Minnesota State Colleges and Universities
system with enrollment around 16,000. SCSU is public, four-year liberal arts
institution. Degrees offered include associate degrees, bachelors degrees,
masters degrees and specialist degrees. Popular majors (based on degrees
conferred) include: business, management, marketing and related support
services and education. The largest programs are elementary education,
communications, psychology, business computer information systems and
biology. St. Cloud State is unique in its offering of meteorology, aviation,
nuclear medical technology, land surveying and mapping science.
The College of St. Benedicts
and St. Johns University (CSB/SJU) also provide four-year, liberal art
degrees in a private school setting in nearby St. Joseph and Collegeville.
Combined enrollment at CSB/SJU is roughly 4,000. Popular programs at St.
Johns include: business, management, marketing and related support services;
social sciences; and English language and literature/letters. At the College
of St. Benedicts popular programs are: English language and
literature/letters and business, management, marketing and related support
services.
