The topic is the characteristics of North Dakota’s manufacturing sector work force. The need for diversification in the North Dakota economy has become evident especially in light of turndowns in agriculture and energy

Coon, R.C.

Leistritz, F.L.

Wanzek, Janet

The topic is the characteristics of North Dakota?s manufacturing sector work force. The need for diversification in the North Dakota economy has become evident especially in light of turndowns in agriculture and energy

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Chara1cteristics of North Dakota' s Manufacturing Secto,r Work Force Randal C. Coon, Janet Wanzek, and F. larry Leistritz North Dakota is not viewed as a highly industrialized state but rather one rich in natural resources. Agriculture and energy have dominated the state's economy and emphasiz­ed the need for diversification in the state's economic base and have comprised over 60 percent of the total for the 1981 to 1985 period (Coon 1987). Recent downturns in the agriculture and energy sectors have resulted in correspon­ding declines in the state's economic base . The manufactur­ing sector provides one of the few opportunites for a more diversified economy; most other sectors of the state's economy essentially arise to serve and support the basic economic sectors and their associated population . The manufacturing sector comprised 8 percent of the state's economic base for the 1981 to 1985 period and is one of the few sectors that increased its share of the state's economic base during the 1958 to 1985 period (Coon, 1987). Growth in the manufacturing sector has been a result of an increased number of firms engaged in that type of ac­tivity. A 28.7 percent increase in the n umber of establishments occurred between 1967 and 1982, and the number of larger firms (those with 20 or more employees) increased by over 54 percent during that same period (U.S. Department of Commerce, 1980; U.S Department of Com­merce, 1985). Total payrolls in manufacturing increased by 490 percent and the value of products shipped increased by 575 percent during that period. Total North Dakota employment in the manufacturing sector was 14,800 in 1982, and the total value added by manufacturers was over $650 million. Earnings by the manufacturing industry in the state amounted to $333 million in 1985, a significant increase from the $89 million earned in 1972 (Bureau of Economic Analysis, 1972-1985). These figures provide an indication of the growth that has occurred in the manufacturing sector of the state's economy, ahhough much of this sector's expansion has been overshadowed by the agriculture and energy sec­tors. In response to a lack of adequate information about the characteristics of the manufacturing sector's labor force, a worker profile questionnaire was developed and ad­ministered in early 1986 to all workers at a sample of manufacturing firms. A total of 740 usable questionnaires was returned. Worker profiles provide insight into the characteristics of employees attracted to specific industries and provide an indication of whether existing labor supplies would be adequate to staff new developments in North . Coon is research specialist, Wanzek is research assistant, and Leistritz is professor, Department of A gricultural Economics. 18 Dakota . In addition, the study results will help to identify the types of training programs that could be most helpful in preparing North Dakota workers for industrial jobs. Results of the survey will be presented for numerous socioeconomic variables. Demographic and employment characteristics are presented to provide an overview of the industry's work force. Also, selected characteristics pertain­ing to the worker's previous employment will be presented. Demographic Characteristics Selected demographic characteristics of the manufactur­ing work force are presented in Table 1. Survey results in-Table 1. Selected Demographic Characteristics for North Dakota Manufacturing Sector Work Force. Item Units Value N Sex: Male Female percent percent 71.3 28.7 740 Marital status: Married Unmarried percent percent 71.2 28.8 729 Number of dependents: (including spouse) Average number Distribution 1 or less 2 3 4 or more number percent percent percent percent 1.9 41.8 20.8 23.4 14.0 727 Does spouse work: Yes No percent percent 68.4 31.6 513 Residence: Own Rent percent percent 64.2 35.8 712 Years lived at current residence: A verage years Distribution 1 year or less 2·5 years 6·10 years 11·25 years 26 or more years years percent percent percent percent percent 11.2 10.5 31.6 21.9 23.6 12.4 732 Note: N denotes the number of respondents to each question. 13-14 yrs. (31.2%) dicated that males dominated the manufacturing sector work force with over 71 percent of the total, which com­pares very closely to the 74 percent from Census data (U.S . Department of Commerce , 1983) . These workers were relatively young; the mean age was 35.1 years, and over 62 percent of the labor force was 35 years of age or less (Figure 1) . A large portion of the workers (71.2 percent) were mar­ried, and the mean number of dependents (including the worker's spouse) was 1.9 persons (Table 1). A large portion of the children were less than 4 years old (35 percent) and between 5 and 12 years old (37 percent) ; only 28 percent were 13 years of age or older. This large percentage of children in the preteen age groups corresponds closely with the large number of workers that were in their mid-30s or younger. Over two-thirds (68.4 percent) of the manufactur­ing workers were from two-income families. 15-16 yrs. (8.1%) A large share of the workers owned their own home (64.2 percent) compared to 35.8 percent who rented their living quarters (Table 1). Average length of time respondents have lived at their current residence was 11.2 years. Almost 58 percent of this group had resided in their current home more than six years compared to only 10.5 percent who had oc­cupied their home for less than one year. This would imply that the manufacturing industry in North Dakota has at­tracted workers who were longtime residents of the local area and had remained employed in that area for a rather long period . Over 50 percent of the respondents had completed 9-12 years of education (Figure 2), and 44 .3 percent had some post-high school training. Only 3.4 percent of the workers had completed only eight years or less of formal schooling . This high proportion of personnel with post-high school education provides a good indication that many of the workers would be employed (or qualified to be employed) in skilled, technical, or managerial positions. These data in ­dicate the need for post-high school training by persons competing in the job market for employment in North Dakota's manufacturing sector. 26-35 yrs. old (44.8%) 36-45 yrs. old (18.9%) Average: 35.1 yrs. <26 yrs. old (17.7%) >45 yrs. old (18.6%) Figure 1. Age Distribution for North Dakota Manufacturing Sector Work Force_ 19 Figure 2. Years of Formal Education for North Dakota Manufacturing Sector Work Force. Because of recent downturns in the agricultural sectors of the economy, manufacturing workers were questioned as to their involvement in farming during the past five years . Only 13 .7 percent of the respondents had been involved in farm­ing during the past few years, and 7.9 percent of the group were currently active in farming. Employment Characteristics Selected employment characteristics for the manufactur­ing work force are presented in Table 2 . The largest portion of the respondents (over 46 percent) categorized their oc­cupation as laborer, and only 5.6 percent of the workers in­dicated they were in a management position . Average length of time on the job for manufacturing workers was 6.4 years (Figure 3). The amount of time these workers have re­mained at their present job would tend to indicate a stable work force with a high degree of job loyalty. A high proportion (80.8 percent) of the workers were paid on an hourly basis, and the remaining 19.2 percent were paid an annual salary (Table 2) . A large share of the salaried workers (73 .2 percent) were earning over $20,000 per year; the high percentage of salaried workers earning larger incomes would tend to indicate that salaried employees are primarily technical and management workers. Workers earning an hourly wage rate earned an average of $7.71 per hour with an almost equal portion of the workers receiving wages between $5 .01 and $7.00 per hour and between $7 .01 and $10.00 per hour (Figure 4). Type of employment for the manufacturing worker's spouse was primarily in the laborer, clerical, services, and sales categories. Distance traveled (one way) to work was crosstabulated by length of time at the present job. Most employees who traveled more than 25 miles to work had been on the job one year or less (Table 3). New workers also had the highest percentage (29.3 percent) that commuted a distance of one mile or less ; this could indicate that many newer employees are driving to their work rather than relocating immediately upon changing jobs , but those who do move are living very close to their work. This appears to be a temporary situation because the percentage of workers living one mile or less Table 2. Selected Employment Characteristics for North Dakota Manufacturing Sector Work Force. Item Units Value N occupation : Laborer Clerical worker Technical worker Management Skilled worker Other Payment method: Annual salary Hourly wage rate Annual salary: $15,000 or less $15,001·$20,000 $20,001·$30,000 $30,001 or more Distance traveled to work (one way): Average distance Distribution Up to 1 mile 1.1·5.9 miles 6.0·15.9 miles 16.0·25.9 miles 26.0 or more miles Type of employment for spouse: Clerical Services Labor Sales Teaching Manager Engineer Other percent 46.3 percent 11.3 percent 9.8 percent 5.6 percent 12.2 percent 14.8 percent 19.2 percent 80.8 percent 13.4 percent 13.4 percent 40.1 percent 33.1 miles 11.0 percent 14.2 percent 42.8 percent 18.9 percent 11.7 percent 12.4 percent 18.6 percent 17.7 percent 19.7 percent 12.9 percent 6.3 percent 5.1 percent 3.7 percent 16.0 736 740 142 734 Average: 6.4 years 1 yr. or less 2·5 yrs. 6·10 yrs. 10 yrs. Figure 3. Time in Current Job for North Dakota Manufactur· . ing Sector Work Force. Average: $7.71 $5.00·$7.00 <$5.00 (1 4.6%) (32.9%)350 Note: N denotes the number of respondents to each question. >$10.00 (16.5%) $7.01·$10.00 (36.0%) Figure 4. Hourly Wage Rates for North Dakota Manufactur­ing Sector Work Force. Table 3. Distance Traveled One Way to Work by Length of Time at Present Job for Manufacturing Sector Workers. Length of Time at Present Job Row Total Miles (one way) To Work 1 mile or less 2 to 5 miles 6 to 15 miles 16 to 25 miles 26 or more miles 1 Year or Less N 0/0 52 29.3 36 20.4 28 15.8 24 13.6 37 20.9 2 to 5 Years N % 32 16.4 79 40.5 39 20.0 28 14.4 17 8.7 6 to 10 Years N % 10 5.1 104 53.1 39 19.9 21 10.7 22 11.2 11 or More Years N % 8 5.0 94 58.8 32 20.0 13 8.1 13 8.1 and Percent N % 102 14.0 313 43.0 138 19.0 86 11.8 89 12.2 Total 177 100.0 195 100.0 196 100.0 160 100.0 728 100.0 Column percent of total (N = 728) 24.3 26.8 26.9 22.0 20 - -----from their jobs declines as length of time at their job in­creases. Most persons who have worked two or more years at their job lived two to five miles from work. Interestingly, the portion of the total workers in the two-to-five-mile category increased with length of time on the job . This in­dicates that the longer workers are at the same job, the more likely they are to move closer to their employment location. This could also be aided by the fact that many manufactur­ing plants are located in or near urban areas where com­muting distance can be quite small . A higher share of the males (1 5 .6 percent) than females (6. 9 percent) had completed college or post-graduate levels of education (Table 4). The largest share of the workers had completed only high school; nearly equal percentages of males and females fell into this category (51.0 and 55.1 per­cent, respectively) . Table 4. Education by Sex for North Dakota Manufacturing Sector Workers. Row Total Male Female and Percent Education N % N % N 0/0 8 years or less 19 3.7 6 2.9 25 3.4 9 to 12 years 264 51.0 113 55.1 377 52.1 13 to 14 years 154 29.7 72 35. 1 226 31 .3 15 to 16 years 47 9.1 12 5.9 59 8.2 More than 16 years 34 6.5 2 1.0 36 5.0 - - - - - -- ­Total 518 100.0 205 100.0 723 100.0 Column percent of total (N = 723) 71 .6 28.4 Previous Employment Selected characteristics pertaining to the worker's prior job are presented in Table 5 . The largest portion of the workers (20 .3 percent) listed their previous occupation as laborer closely followed by skilled worker (19 percent). The third largest group (11.2 percent) was unemployed prior to their present job . Manufacturing firms had employed the largest portion (20.4 percent) of workers prior to their cur­rent job. Service sector jobs, retail , farm, and construction firms also had employed a relatively large share of workers. A total of 13.2 percent of the workers responding to this question indicated they had no former employer (i.e., they were unemployed or self-employed). The previous residence most often listed by the manufacturing workers was a small North Dakota town (36. 6 percent) followed by larger North Dakota towns (26. 6 percent) and a Minnesota location (23 .3 percent). Summary The need for diversification in the North Dakota economy has become evident in recent years with the impact that downturns in the agriculture and energy sectors have had on the state's economy. Manufacturing is one potential source for diversification and economic growth in the state. The manufacturing in dustry provides jobs for many North Dakota residents who are predominently male, young, and fairly well educated . These workers tend to commute short distances to work and stay at their job for a rather long period of time. Characteristics of the North Dakota Table 5. Selected Characteristics Relating to Previous Employment for North Dakota Manufacturing Sector Workers. Item 	 Units Value N Previous Occupation: Laborer percent 20.3 735 Farmer/farm laborer percent 10.0 Mil itary service percent 3.2 Construction worker percent 5.9 Clerical worker percent 8.7 Salesperson percent 5.7 Truck driver Skilled worker percent percent 5.7 19.0 Other percent 10.3 Unemployed percent 11.2 Type of firm previously employed by: Manufacturing percent 20.4 740 Construction percent 8.5 Retail percent 10.3 Farm percent 10.0 Military percent 4.1 Service percent 13.0 Engineering percent 3.9 Other percent 16.6 No former employer percent 13.2 Previous residence: Small North Dakota towns percent 36.6 692 Larger North Dakota towns percent 26.6 Minnesota percent 23.3 South Dakota percent 1.7 Iowa percent 1.3 Montana percent 1.3 California percent 1.2 Other states percent 8.0 Note: N denotes the number of responden ts to each question. manufacturing sector work force provide an indication of the type of worker hired by that industry and the type of person attracted to employment in that sector. References Bureau of Economic Analysis. 1972-1985. "Personal Income by Major Sources and Earnings by Major Industry." Table 5.00, Regional Economics Information System. Washington, D.C. : U.S. Government Printing Office . Coon, Randal C. 1987. "An Overview of Trends in the North Dakota Economy." Fargo : North Dakota State University, Department of Agricultural Economics. U.S . Department of Commerce. 1980. 1977 Census of Manufacturers-North Dakota. MC77-A-35. Bureau of the Census, Washington, D.C. : U.S. Government Printing Office. U.S. 	Department of Commerce. 1983. 1980 Census of Population - Detailed Population Characteristics - North Dakota. PC80-1-D36. Bureau of the Census, Washington, D.C. : U.S. Government Printing Office. U.S . Department of Commerce. 1985. 1982 Census of Manufacturers - North Dakota. MC82-A-35. Bureau of the Census , Washington, D.C.: U.S. Government Printing Office. 21 ~-----

Characteristics of North Dakota's Manufacturing Sector Work Force

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