Agenda Packets - 1995/12/04 - Laserfiche WebLink

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established to help firms enter and conduct such trade in recognition of the benefits it provides. These sales raise the economic base of the region...the dollars in the local economy capable of being re-spent and circulated within the region. Manufacturers, wholesale/distribution companies and TCPU firms were the most numerous exporters. Wholesalers were the most likely to have 25 percent or more of their sales internationally. To the extent that locally produced products made up at least some of the product they sold, it may indicate even more local manufacturers were represented in international trade, albeit indirectly. It also suggests that the role of wholesale/distribution while service oriented and perhaps not as high wage based may offer significant additional benefits to the local economy than can be measured just in terms of its relative job density or wage levels. The make-up of the sectors which are most actively engaged in international trade can be broken down even further. Within manufacturing, the industrial machinery subset is the dominant exporter. While industrial supplies and electrical apparatus make up the majority of primary products of those wholesale distributors with significant exports. National Twenty-one percent of all firms (three times as many as sell internationally) sell to national markets beyond the five state area. Manufacturers are again the most likely to engage in national sales followed by wholesalers and TCPU firms. The concentration of firms selling nationally mimics those selling internationally, being concentrated in SIC Code categories 35 and 50, but with wider participation within and without those categories. Five-State Area The sector patterns again continues as we look at who plays a role in the five state market, although the role of wholesale/distribution appears to gain in stature reflecting the Twin City metro's role as a regional hub. Twenty-seven percent of all area firms did at least some sales to the surrounding four states. Out-state Minnesota Wholesale/distribution and manufacturing again show a strong presence in out-state trade, the FIRE sector also makes a dramatic move in this market arena. Slightly more than half of all firms engaged in at least some sales in out-state Minnesota. The relatively high participation in out-state markets suggests that the North Metro may play a particularly strong role in servicing out-state communities. However, there is no comparable data from elsewhere in the metro area with which to confirm or refute this suspicion. Nonetheless, there is a strong economic link connecting the North Metro with out-state communities. This link should be communicated to legislative leaders serving the area, and as possible be used to build mutually supportive economic alliances with out-state communities. No Base Building While three percent of all firms (88)report no sales within the Twin Cities area, over 80 percent of all firms with sales less than$1 million depend upon the Twin Cities area for 75 percent or more of their sales. 17