6. 2016 Economic Development Plan Update January 27 2017 1/11/2017
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2017 – 2019
Washington County CDA
Economic Development Plan Update
“Draft”
Table of Contents
Vision Statement……………………………………………………………………………….
Mission Statement………………………………………………………………………………
Goals……………………………………………………………………………………………
Planning Process…………………………………………………………………………………
Values…………………………………………………………………………………………..
Policy and Guiding Principles…………………………………………………………………..
Opportunities and Challenges……………………………………………………………………
Action Steps/Deliverables……………………………………………………………………
Acknowledgments…………………………………………………………………………………
Appendices……………………………………………………………………………....
Definitions……………………………………………………………………………………….
Economic Profile………………………………………………………………………………..
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Vision
To ensure that programs and services support and complement economic development programs
initiated by cities, townships and the county.
Mission
To provide financial and technical assistance to businesses and communities as requested to
enhance economic development, expand the tax base and promote job creation opportunities in
Washington County.
Goals
1. Promote and market the quality of life, rich diversity and assets of the county.
2. Provide resources to help entrepreneurs get started and existing businesses grow.
3. Be a value-added partner to other public and private entities.
4. Find ways to help our businesses attract and retain talent and find ways to keep our
working residents here in the county.
5. Promote strong infrastructure, multi-modal transportation and highspeed broadband.
Planning Process
On May 6, 2014, the Washington County Board of Commissioners approved the Washington
County Economic Development Strategic Plan. Within the Economic Development Strategic
Plan, a number of goals were identified. Many of these goals have since been completed,
including:
- Analyzed various organizational structures to implement economic development
initiatives on behalf of the county. In June of 2016, the Washington County Board of
Commissioners approved the creation of the Washington County Community
Development Agency (CDA) as recently authorized by the Minnesota State Legislature.
- Designated a county staff member to be the point of contact for economic development
and implementation of the strategic plan. In June of 2016, the Washington County CDA
hired a full time Economic Development Director to serve as the point of contact and
coordinate the economic development efforts within the county including updating and
implementing the 2014 Strategic Plan.
- Updated existing financial incentive policies including tax increment financing and tax
abatement.
The purpose of this document is to serve as an update to the 2014 Economic Development
Strategic Plan with a planning horizon through 2019. A working group of township officials,
city administrators, school district representatives, and economic development professionals was
convened by the CDA in August 2016 and has been meeting monthly to assist in preparing the
elements of this update, with a goal of producing a draft for public review, which will ultimately
be adopted by the Washington County CDA Board and the County Board.
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Values
The foundation of the Washington County Economic Development Plan is the policy and
guiding principles that drive the economic development goals, strategies and actions of the
County. The following policy statement and guiding principles define the County’s economic
development efforts. These guiding principles are relevant for the present economic
environment and are subject to review and change on a periodic basis.
Economic Development Policy Statement
It is the policy of the Washington County Board of Commissioners to increase the County’s role
and support of economic development within the County. The County will invest staff time and
financial resources in a planned, coordinated and strategic manner and will engage in a
collaborative and holistic approach to economic development. The County’s policies and actions
will be guided by the following principles.
Economic Development Guiding Principles
The following principles are not in rank order of importance.
The private sector is the lead that drives the economy
o The County will work in partnership with the private sector
The County will not duplicate or replace the work of cities and other public agencies
o The County will work in collaboration with cities and public agencies and will
provide leadership where the County can make the most difference when asked
The County supports a strong collaborative approach to economic development
o No matter the location, economic development is a benefit to the entire county
o Support efforts to ensure a highly skilled workforce and adequate workforce housing
Business attraction and business retention are essential policy objectives
o A balanced approach to pursue each of the two policy areas is required
The diversity of the County requires an adaptable and open-minded approach
o The distinctive qualities of the County require flexibility
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Opportunities and Challenges
In order to achieve the goals previously identified, several opportunities and challenges were
identified in order to inform future action steps.
Opportunities
The top three growth industries in Washington County between 2013 and 2015 are: 1) Health
Care Services, 2) Wood Products Manufacturing and 3) Professional and Technical Services. An
opportunity exists to research and seek to attract complementary businesses like suppliers,
vendors or large customers of the existing growing industry sectors in Washington County.
Small businesses are vital to Washington County’s economy. 86% of the Washington County
businesses have less than 20 employees. Washington County is home to 17,847 self-employed
businesses or “non-employers” in 2014 (defined as businesses without employees that are subject
to federal income tax). An opportunity exists to support and grow the existing businesses and
business owners.
Washington County has a significant number of major transportation corridors including: I-35, I-
94, I-694, I-494, US Highway 8, 10 & 61, MN Highway 5, 36, 95, 96, 97, 120 and 244.
Additionally, Washington County has transit corridors including the Rush Line Corridor, the
Gateway Corridor and the Red Rock Corridor. An opportunity exists to participate in transit and
transportation corridor planning efforts and to advocate for state and federal transportation and
transit investments in Washington County.
Washington County has a highly-valued quality of life, rich diverse communities and many
assets and amenities. An opportunity exists to market and promote these amenities to site
selectors and businesses looking to expand or relocate.
Washington County has a growing population and a growing labor force. An opportunity exists
to leverage the quality of this growing labor force to attract new business development.
Challenges
Over 100,000 working residents commute outside of the county to work every day (76.9%).
Focus should be on finding opportunities to retain working residents who are commuting out of
the county to work.
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Actions
Marketing and Promotion
Action Step: Market and promote Washington County, enhancing the efforts currently being
implemented by our public and private partners.
Deliverables: With the aid of our city and township partners, the Washington County CDA will
create a business brand for Washington County that lists and emphasizes the county’s many
assets. The business brand must be crafted to appeal to businesses that are looking for locational
or expansion opportunities. This will be completed by the second qtr. of 2017.
Washington County CDA will attend, advertise, co-sponsor and market at a minimum of three
events in 2017; Minnesota Commercial Real Estate Association (MNCAR) Expo, MN Real
Estate Journal Land Development Conference and MN Real Estate Journal Industrial
Development Summit. This will begin in the first qtr. of 2017 and be ongoing.
Washington County CDA will build partnerships with and become members of local area
chambers of commerce including: Forest lake Area Chamber, White Bear Lake Area Chamber,
Stillwater Area Chamber, Oakdale Area Chamber, Woodbury Area Chamber, Cottage Grove
Area Chamber of Commerce. Washington County CDA will work with our local chambers to
identify business creation and expansion opportunities and promote tourism. This will begin in
the first qtr. of 2017 and be ongoing.
Washington County CDA will build partnerships with talent attraction, retention and training
organizations, local area commercial realtors, developers and site selectors through partnerships
with Minnesota Department of Employment and Economic Development (DEED), Excel
Energy, MNCAR, Xceligent and Greater MSP. The CDA will receive and distribute new
business inquiries to our local community partners and pass new listings on to the community
where the listing is located. The CDA will work with communities when requested to respond to
business inquiries. This will begin in the first qtr. of 2017 and be ongoing.
Action Step: Promote the quality of life and assets of the county, including the rich diversity of
communities with unique micro-markets.
Deliverables: Each city/township will be asked by the Washington County CDA to tell us what
types of specific business developments are a “good fit” for their community (understanding this
is subject to change). The Washington County Economic Development Plan should not be “one
size fits all”. Each city and township will be asked to prepare a listing of their preferred business
types. This information will be used in various situations including individual business
meetings, marketing events and other settings to highlight the opportunities that exist within each
community in Washington County. Each city/township can have their own paragraph, page or
section of the Economic Development Plan and all marketing materials. Washington County
CDA staff will assist with drafting/creation of this information and marketing materials upon
request of the individual cities and townships. This will be an ongoing activity beginning in the
first quarter of 2017 and may be revised and/or updated at any time at the discretion of the cities
and townships.
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Economic Development Partnerships & Financial Incentives
Action Step: Help small businesses grow.
Deliverables: Washington County can support existing small businesses and encourage new
entrepreneurism by joining the Metropolitan Consortium of Community Developers’ (MCCD’s)
Open to Business program.
The purpose of the Open to Business program is twofold:
1) to provide small businesses within Washington County direct access to subordinated
financing (business loans), and
2) to provide one-on-one professional business consulting services to small businesses
within the county at no cost to the business.
The professional business consulting services include business plan development and financial
proforma development including cash flow management analysis for entrepreneurs. The direct
business loans offered through the Open to Business program are intended to spur commercial
and industrial business development opportunities in Washington County. Business loans are
available to both start-up and existing businesses and are available for a variety of uses
including; building improvements, acquisition of property, equipment, inventory and working
capital.
The Washington County CDA will coordinate the Open to Business program on behalf of the
communities and will seek the necessary funding required to join. This program will begin as
soon as possible in 2017 and will be ongoing.
Action Step: Utilize Community Development Block Grant funds for business loans.
Deliverables: The Washington County CDA will use federal Community Development Block
Grant monies for up to 3 small business loans for a total amount not to exceed $25,000 in CDBG
funds over a three-year period. This activity will begin in the third qtr. of 2017 and be ongoing.
Action Step: Capitalize a county-wide commercial building revolving loan program.
Deliverables: The Washington County CDA will explore options to fund commercial building
and improvements. The county-wide commercial building revolving loan program will begin in
2018 or sooner if funding becomes available.
Community Assistance
Action Step: Provide predevelopment matching grants to cities, townships and local government
economic development authorities located in Washington County.
Deliverables: The Washington County CDA will explore options to fund a program that will
provide up to ten grants for an amount up to $10,000 per grant (total of $100,000) to cities and
townships in Washington County for predevelopment costs to spur economic development and
redevelopment. These grant funds are intended to spur new commercial and industrial business
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development and redevelopment activities by providing funding up to $10,000 per grant award
on a 1:1 matching basis. This will begin in the first quarter of 2018 and be ongoing contingent
upon the availability of funding.
Action Step: Assist communities and local area chambers of commerce with Business Retention
& Enhancement (BR&E) visits, as requested.
Deliverables: The Washington County CDA will stand ready to assist communities organize and
implement BR&E programs and will participate in select business visits upon the request of the
individual community. This will begin in the first quarter of 2017 and will be ongoing.
Workforce Development & Talent Recruitment
Action Step: Partner with businesses, the Workforce Development Board and others to identify
and address workforce training and housing needs.
Deliverables: The Washington County CDA will be an active member/partner with the
Washington County Workforce Development Board. The Washington County CDA will work
with businesses, our education system, communities and Greater MSP to attract and retain talent
whenever possible. This will begin in the first qtr. of 2017 and be ongoing.
Action Step: Assist partners to attract, train and retain talent.
Deliverables: Whenever possible, work with businesses, communities, Greater MSP, Century
College and other community partners to recruit the types of businesses that will entice some of
our residents to work closer to home. This could benefit both the highly trained and less trained
working residents. The Washington County CDA will also work to provide our community
partners with demographic data and labor and housing studies on an ongoing basis. This will
begin the first qtr. of 2017 and be ongoing.
Strong Infrastructure Foundation
Action Step: Promote multi-modal transportation and transit opportunities that will stimulate
economic growth in the county.
Deliverables: Washington County CDA staff will be an active participant of the Washington
County Comprehensive Plan Committee. This will begin in the first qtr. of 2017 and be ongoing.
Action Step: Conduct a broadband survey to determine the need for faster broadband
connectivity and the location of any service gaps.
Deliverables: The Washington County CDA will work with communities, when requested, to
develop and implement an online survey to determine the need for better broadband connectivity
within the county. This activity will begin in the first qtr. of 2018 and be ongoing.
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Acknowledgements
The Economic Development Director along with CDA staff, has coordinated monthly meetings
with the Economic Development Work Group who bring a wealth of knowledge and experience
to the process and provide important local perspectives to the economic development plan
update.
Special thanks go out to the following Economic Development Work Group Members for their
participation and assistance in this 2016-2017 Economic Development Plan update:
Aaron Parrish – City Administrator, Forest Lake; Neil Soltis – City Administrator, Scandia;
Bryan Bear – City Administrator, Hugo; Rachel Juba – Planner, Hugo; Scott Neilson – City
Administrator, Mahtomedi; Mark Larson – Superintendent, Mahtomedi School District; Kevin
Corbid – Washington County Deputy Administrator; Tom McCarty – City Administrator,
Stillwater; Bill Turnblad – Community Development Director, Stillwater; Eric Johnson – City
Administrator, Oak Park Heights; Logan Martin – City Administrator, Nancy Healy – Clerk,
Baytown Township; Bayport; Kristina Handt – City Administrator, Lake Elmo; Ed Shukle – City
Administrator, Landfall; Bart Fischer – City Administrator, Oakdale; Bob Streetar – Community
Development Director, Oakdale; Janelle Schmitz – Assistant Community Development Director,
Woodbury; Karl Batalden – Economic Development & Housing Coordinator, Woodbury; Deb
Hill – City Administrator, Newport; Kevin Walsh – City Administrator, St. Paul Park; Charlene
Stevens – City Administrator, Cottage Grove; Christine Costello – Economic Development
Director, Cottage Grove; Melanie Mesko Lee – City Administrator, Hastings; John Hinzman –
Community Development Director, Hastings; Charlie Vander Aarde – Government Relations
Specialist, Metro Cities; Barbara Dacy – Executive Director, Washington County CDA; Melissa
Taphorn – Deputy Executive Director, Washington County CDA; Chris Eng – Economic
Development Director, Washington County CDA
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Appendix A
Definitions
What is Economic Development?
No single definition incorporates all of the different strands of economic development.
Typically, economic development can be described in terms of objectives. These are most
commonly described as the creation of jobs and wealth, and the improvement of the quality of
life. Economic development can also be described as a process that influences growth and
restructuring of an economy to enhance the economic well-being of a community.
The main goal of economic development is to improve the economic well-being of a community
through efforts that entail quality job creation, job retention, tax base enhancements and quality
of life. It is therefore worthwhile to define economic base, a good job, and quality of life as it
will relate to the recommendations of this document. As there is no single definition for
economic development, there is no single strategy, policy or program for achieving successful
economic development in Washington County. Thus, the plan laid out in this document is
developed from a comprehensive and broad-based perspective.
What is an Economic Base?
The basic component of an economic base, is the production of goods and/or services that are
exported, bringing outside wealth into the area. The economic base theory argues that economic
development occurs when there is an expansion of the economic base, producing direct, indirect
and induced benefits.
Economic development organizations (including the Washington County CDA) strive to expand
the economic base, producing direct economic benefits. As the export base grows, bringing
more wealth into a community, a portion of these receipts is spent on local consumption creating
a multiplying effect. The rounds of spending create indirect and induced economic benefits,
thereby creating an expansion of jobs, income, value-added – in short, economic development.
What is a Good Job?
A good job is one that is stable and safe, with sufficient work hours, a predictable schedule and
has wages and benefits that can support households, families and communities.
What is Quality of Life?
Location and general quality of life are the most frequently selected categories that residents
liked most about living in Washington County. On a regular basis, Washington County conducts
its Residential Survey to provide residents the opportunity to rate the quality of life in the county,
as well as service delivery, and community characteristics. Survey results are benchmarked
against over 500 counties across the country. In 2016, residents were given a list of potential
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attributes of Washington County and were asked to identify one thing that they liked most about
living in Washington County. The most frequently selected categories were location and quality
of life in general; at least one-quarter of residents selected each of these items. In addition,
outdoor recreational opportunities, ease of travel by car, the overall feeling of safety in
Washington County and the overall image or reputation of Washington County received the
highest average ratings from residents, and when benchmarked against other counties, these
ratings were much higher than other counties in the country. According to Greater MSP and site
selectors, a high quality of life helps create economic development opportunities.
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Appendix B
Economic Profile
Demographic Characteristics
The following data describes the key characteristics of the county’s demography and economic
base, which helps to illuminate its strengths and weaknesses. The information below will
compare the county to itself, the region, the state, and St. Croix County, Wisconsin. Trends in
demographics, income and wages, poverty, labor force, and business establishments are
examined.
Washington County is the fifth largest County and eighth fastest-growing County in
Minnesota. The graph below depicts the history of robust population growth in the county. As
of July 1, 2015, Washington County was home to an estimated population of over a quarter-
million people and is Minnesota’s fifth most-populated county. While the strongest growth
occurred between 1990 and 2000, Washington County gained nearly 13,500 people between
2010 and 2015 totaling 251,597 people (a 5.7% increase).
County population is projected to increase about 15.5% by 2035. According to population
projections from the Minnesota State Demographic Center, Washington County is expected to
gain nearly 40,000 net new residents from 2015 to 2035, a 15.5% increase. Recent Metropolitan
Council projections for 2030 estimate about 8,000 more people five years earlier.
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34,544
52,432
82,948
113,571
145,896
201,130
238,136
251,597
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3,000,000
4,000,000
5,000,000
6,000,000
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50,000
100,000
150,000
200,000
250,000
300,000
1950 1960 1970 1980 1990 2000 2010 2015
Source: U.S. Census Bureau
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Population Change, 1950-2015
Minnesota Washington Co.
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Overall, Washington County has a younger population than the state of Minnesota, with just 11.7
percent of its population aged 65 years and over, compared to 13.6 percent statewide.
Consequently, Washington County has a higher percentage of people in the 25- to 54-year-old
age group, typically considered the prime working years, and a higher percentage of school-aged
children. The county did have a slightly smaller percentage of 15-24-year-olds.
6.2%
14.8%
12.3%
12.1%
13.5%
16.4%
12.9%
6.9%
3.4%
1.4%
6.5%
13.3%
13.4%
13.7%
12.5%
14.6%
12.6%
7.3%
4.3%
2.0%
Under 5 years
5-14 years
15-24 years
25-34 years
35-44 years
45-54 years
55-64 years
65-74 years
75-84 years
85 years & over
Source: 2010-2014 American Community Survey
Percentage of Population by Age Group,
2014 Washington Co.Minnesota
Population Projections, 2015-2035 2015-2035 Change
Washington Co.
2015
Projection
2025
Projection
2035
Projection Numeric Percent
Under 5 years 15,400 16,582 17,066 1,666 10.8%
5-14 years 33,831 31,113 33,647 -184 -0.5%
15-24 years 34,561 32,704 30,060 -4,501 -13.0%
25-34 years 29,933 34,367 32,596 2,663 8.9%
35-44 years 30,904 32,072 36,628 5,724 18.5%
45-54 years 41,273 30,710 31,971 -9,302 -22.5%
55-64 years 35,336 40,931 30,486 -4,850 -13.7%
65-74 years 21,557 34,887 40,527 18,970 88.0%
75-84 years 10,081 21,059 34,069 23,988 238.0%
85 years & over 3,260 4,416 8,875 5,615 172.2%
Total 256,136 278,841 295,925 39,789 15.5%
Source: Minnesota State Demographic Center
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Resident income is one of the highest in the state. The graph below depicts Washington
County’s per capita income as the third highest in the state of Minnesota. This high level of
personal incomes means that there is a strong purchasing power, which is an opportunity to
support new development. This is further substantiated by data on household median income
and net worth statistics.
According to 2015 estimates, Washington County’s median income is $87,995, 39% higher than
statewide, and an increase 5.3% over the year. Washington County had an average net worth of
$793,314 in 2013 and a median net worth of $216,586. Median net worth is generally a more
accurate depiction of wealth than the average figure. A few households with very large net worth
can significantly skew the average. As a comparison, the metropolitan area had an average net
worth of $586,479 and median net worth of $111,991.
This is also reflected in the data about employed residents over the age of 16; median earnings
are $59,262. Washington County had an estimated 134,000 employed residents who were at
least 16 years of age, in 2015. The largest percentage of jobs were found within Management,
Business, and Financial Operations; followed by Office and Administrative Support; and
Education, Legal, Community Services, Arts, and Media occupations.
Washington County Occupational Statistics, 2010-2014 American Community Survey
Occupational Group Employment % Male % Female Median
Earnings
Civilian employed population 16 years & over 133,637 51.5% 48.5% $59,262
Management, business, and financial 25,917 57.4% 42.6% $85,220
Office and administrative support 16,912 29.1% 70.9% $41,369
$37,841
$35,690
$30,076
$38,125
$35,755
$38,638
$31,474
$31,642
$20,000 $25,000 $30,000 $35,000 $40,000
Washington Co.
Scott Co.
Ramsey Co.
Hennepin Co.
Dakota Co.
Carver Co.
Anoka Co.
Minnesota
Source: American Community Survey
2014 Per Capita Incomes
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Education, legal, community service, arts, and
media 15,167 30.8% 69.2% $54,369
Sales 13,748 50.8% 49.2% $59,588
Healthcare practitioner 10,159 29.0% 71.0% $82,993
Computer, engineering, and science 9,702 74.3% 25.7% $88,244
Food preparation and serving related 6,283 39.4% 60.6% $23,086
Personal care and service 5,246 32.6% 67.4% $31,857
Production 5,069 70.0% 30.0% $50,204
Construction and extraction 4,950 93.1% 6.9% $56,169
Transportation 3,788 95.9% 4.1% $55,609
Building and grounds cleaning and
maintenance 3,555 66.8% 33.2% $36,003
Protective service 3,413 72.1% 27.9% $52,489
Installation, maintenance, and repair 3,337 95.4% 4.6% $44,289
Healthcare support 3,100 12.1% 87.9% $30,941
Material moving 2,980 83.9% 16.1% $36,379
Farming, fishing, and forestry 311 100.0% 0.0% $21,379
Source: American Community Survey
Three-fourths of employed residents commute to work outside of the county. The table
below shows that about 77% of those who are employed residents in Washington County
commute outside of the county to work, while about 58% of those employed within the county
commute into the county.
The average annual wage by industry sector is lower than employed resident household
income.
Retail trade is the largest-employing industry sector (over 13,000 jobs) in Washington County,
accounting for about one-in-six total jobs in the county. Average annual wages within retail
trade, $25,168, are over 40 percent lower than the average annual wage for the total of all
industries. The second largest industry in Washington County is health care and social
assistance, with over 11,400 jobs at 546 establishments. The average wage for health care and
social assistance jobs is $48,205, which is about 10% higher than the average wage for the total
of all industries. Accommodation and food services is the third largest-employing industry, with
8,949 jobs at 383 establishments. The average annual wage is only $16,328. Manufacturing is
Washington Co. Inflow/Outflow Job Counts (All Jobs), 2014 2014
Count Share
Employed in Washington Co. 72,124 100.0%
Employed in Wash. Co. but Living Outside 41,679 57.8%
Employed and Living in Washington Co. 30,445 42.2%
Living in Washington Co. 131,826 100.0%
Living in Wash. Co. but Employed Outside 101,381 76.9%
Living and Employed in Washington Co. 30,445 23.1%
Source: U.S. Census Bureau, OnTheMap
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the fourth largest-employing industry with nearly 8,000 jobs and an average annual wage of
$63,908. Education services is the fifth largest-employing industry with 7,330 jobs and an
average annual wage of $42,796. It should be noted that over 87% of Washington County’s
labor force has a Bachelor’s degree or higher.
Washington County Industry Employment Statistics, 2015
NAICS Industry Title Number of
Firms
Number of
Jobs
Percent
of Jobs Total Payroll
Avg.
Annual
Wage
Total, All Industries 5,231 79,112 100.0% $3,478,314,461 $43,992
Retail Trade 684 13,051 16.5% $328,820,246 $25,168
Health Care & Social Assistance 546 11,408 14.4% $550,298,480 $48,204
Accommodation & Food
Services 383 8,949 11.3% $146,562,210 $16,328
Manufacturing 203 7,990 10.1% $510,327,272 $63,908
Educational Services 139 7,330 9.3% $315,013,496 $42,796
Public Administration 54 3,617 4.6% $187,901,224 $51,896
Construction 516 3,338 4.2% $194,695,496 $58,292
Finance & Insurance 337 3,306 4.2% $250,901,273 $75,868
Professional, Scientific, &
Technical Services 643 3,177 4.0% $207,917,173 $65,312
Administrative & Support
Services 268 3,135 4.0% $142,493,483 $45,552
Other Services 578 3,074 3.9% $79,404,718 $25,792
Transportation & Warehousing 138 2,584 3.3% $109,423,567 $42,276
Arts, Entertainment, &
Recreation 123 2,121 2.7% $34,322,013 $16,172
Wholesale Trade 203 1,957 2.5% $142,004,378 $72,540
Management of Companies 43 1,503 1.9% $160,012,587 $107,016
Real Estate, Rental & Leasing 258 790 1.0% $29,425,257 $37,180
Agriculture 44 712 0.9% $24,859,143 $35,048
Information 60 699 0.9% $25,318,426 $36,244
Utilities 7 298 0.4% $33,628,441 $112,788
Source: DEED Quarterly Census of Employment and Wages (QCEW)
County job growth has exceeded prerecession levels. According to DEED’s Quarterly
Census of Employment and Wages program as shown in the graph below, Washington County
was home to 5,231 business establishments providing nearly 80,000 covered jobs through 2015,
with a total annual payroll of nearly $3.5 billion. Washington County continues to see new jobs
being added within the county each year since 2009 and has exceeded its pre-recession levels.
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The County is expected to see a continued gradual increase in the labor force over the next
decade. Over the last ten years, the county’s labor force has grown by 12,077 people, as depicted
in the table below. Washington County’s labor force grew more than double the state rate with a
9.6 percent increase. Comparatively, the state’s total labor force grew by 4.7 percent.
Washington County has experienced overall growth in the size of available labor force over the
last 15 years. Washington County has a higher percentage than the state of people in the 25- to
54-year old age group, typically considered the prime working years and a higher percentage of
school-aged children. The County is expected to see a continued gradual increase in the labor
force over the next decade, gaining approximately 3,700 net new workers between 2015 and
2025.
Labor Force Projections, 2015-2025
Washington Co.
2015 2025 2015-2025 Change
Labor Force
Projection
Labor
Force
Projection
Numeric Percent
16 to 19 years 8,382 6,891 -1,492 -17.8%
20 to 24 years 11,479 13,081 1,602 14.0%
25 to 44 years 54,206 59,197 4,991 9.2%
45 to 54 years 36,816 27,393 -9,422 -25.6%
55 to 64 years 24,877 28,815 3,939 15.8%
65 to 74 years 5,303 8,582 3,279 61.8%
75 years & over 881 1,681 801 91.0%
Total Labor Force 141,943 145,642 3,699 2.6%
Source: Minnesota State Demographic Center,
2010-2014 American Community Survey 5-Year Estimates
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118,092
132,046
136,504
137,668
2,700,000
2,750,000
2,800,000
2,850,000
2,900,000
2,950,000
3,000,000
3,050,000
105,000
110,000
115,000
120,000
125,000
130,000
135,000
140,000
20
0
0
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Source: DEED Local Area Unemployment Statistics (LAUS) program
Annual Labor Force Estimates
Minnesota Washington Co.
1/11/2017
17
Washington County’s unemployment rate of 3.2% is lower than the state average
unemployment rate.
3.2 3.8 4.5 4.9 4.7 4.1 4 4.6 5.4 7.8 7.4 6.5 5.6 4.9 4.2 3.7
2.5
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20
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5
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Source: DEED Local Area Unemployment Statistics (LAUS) program
Unemployment Rates, 2000-2015
Minnesota Washington Co.
1/11/2017
18
Distinguishing Industries
Washington County stands out from the state and the Twin Cities Metro Area for its extremely
high concentration of employment in wood product manufacturing. Concentration is measured
with location quotients, which compare the share of employment in a particular industry locally,
to the share of employment that same industry constitutes nationally.
Washington County Distinguishing Industries, 2015
NAICS Industry Title Number
of Firms
Number
of Jobs Total Payroll Avg. Annual
Wages
Location
Quotient
Total, All Industries 5,231 79,112 $3,478,314,461 $43,992 -
Wood Product Manufacturing 11 2,771 $177,493,275 $64,324 12.67
Amusement, Gambling, &
Recreation Industries 93 2,002 $31,666,888 $15,808 2.20
Sporting Goods, Hobby, Book,
& Music Stores 38 788 $14,001,093 $17,784 2.17
General Merchandise Stores 39 3,587 $72,358,293 $20,176 1.96
Building Material, Garden
Equip. & Supplies Dealers 45 1,363 $39,409,371 $29,016 1.92
Miscellaneous Manufacturing 41 634 $37,997,635 $59,904 1.88
Personal & Laundry Services 206 1,508 $30,856,025 $20,436 1.87
Ambulatory Health Care
Services 346 5,670 $360,439,736 $63,492 1.44
Nursing & Residential Care
Facilities 83 2,602 $64,784,818 $24,908 1.38
Food Services & Drinking
Places 350 8,243 $132,567,421 $16,068 1.30
Source: DEED Quarterly Census of Employment and Wages (QCEW)
1/11/2017
19
Private sector employment data between 2010 and 2015 suggests that Washington County is
strong in retail trade, health care and social assistance, accommodation and food services,
manufacturing, construction, finance and insurance and professional & technical services.
Largest Growing Industries 2013-2015 (Industry Title) Avg.
Wage
Job Growth Percent
Total, All Industries $43,472
Ambulatory Health Care Services $63,492 705 14.2%
Wood Product Manufacturing $64,324 369 15.4%
Professional, SCI & Technical Services $65,572 328 11.6%
Food & Beverage Stores $22,464 327 17.0%
Food Services & Drinking Places $16,068 278 3.5%
Sporting Goods, Book & Music Stores $17,784 275 53.6%
Management of Companies $107,016 153 11.3%
Food Manufacturing $32,500 145 35.1%
Heavy & Civil Engineering Construction $78,624 131 41.5%
Miscellaneous Manufacturing $59,904 129 25.5%
Small businesses are vital to Washington County’s economy. 57% of Washington county
businesses have 1-4 employees (totaling 3,184 firms) and another 29% had between 5-19
employees, adding up to 86% of the Washington County businesses have less than 20
employees. Washington County is therefore home to 17,847 self-employed businesses or “non-
employers” in 2014 (defined as businesses without employees that are subject to federal income
tax). Washington County witnessed a 15.2% increase in non-employers over the past decade,
higher than such growth at the state level. Total receipts from non-employers in Washington
County equaled about $810 million in 2014.
Employers by Size Class, 2014
Washington Co. Minnesota
Number of Employees Number
of Firms
Percent
of Firms Percent of Firms
1-4 3,184 57.0% 53.9%
5-9 942 16.9% 17.7%
10-19 679 12.2% 13.4%
20-49 506 9.1% 9.1%
50-99 163 2.9% 3.2%
100-249 84 1.5% 1.9%
250-499 20 0.4% 0.5%
500 or more 9 0.2% 0.3%
Total Firms 5,587 100.0% 100.0%
Source: U.S. Census, County Business Patterns