2040 Comprehensive Plan: Envision Shakopee

EMPLOYEES: INDUSTRIES SHAKOPEE’S ECONOMY IS CONCENTRATED IN MANUFACTURING THAT REFLECTS AN INDUSTRIAL LEGACY. THE REGIONAL ECONOMY INCLUDES MORE ECONOMIC DIVERSITY. FIGURE 2.7 - EMPLOYMENT IND STRYMAKEUP COMPARISON

SHAKOPEE INDUSTRIES Shakopee’s economy is concentrated in manufacturing, reflecting both an industrial legacy dating back to the 1980s, as well as recent success attracting high-tech manufacturers to modern industrial spaces. The city added 800 new manufacturing jobs from 2012–2015, the largest increase among all industries over this period. A few industries dominate Shakopee’s employment base. Just five sectors account for 63% of all jobs in Shakopee, compared to 51% in the regional economy. The high concentration of employment in few industries leaves Shakopee at risk for greater negative impacts during industry-specific downturns. Manufacturing in Shakopee has seen rapid growth, while other industries have grown at similar rates as the Twin Cities region. This trend reflects increased reliance on a few industries for economic success. The 2008 Recession severely impacted smaller industries employing fewer than 1,000 people in Shakopee such as construction and entertainment. These industries have started to recover but have yet to reach their peak levels of employment seen in 2005. Accommodation and food service—generally low-wage jobs—have seen tremendous growth since 2000 and have better recovered from the downturn. Entertainment is a large regional draw for Shakopee’s economy; Valleyfair and Canterbury Park drive much of the city’s regional brand. While these are large regional destinations that bring visitors to the city from across the state, they are not the largest year-round employment centers as many of these jobs are part-time or seasonal. However, their brand is closely tied to Shakopee’s name-recognition throughout the state and should be leveraged as the city considers ways to support businesses in Downtown Shakopee.

Running Header Place Holder

Twin Cities Region Industry Makeup (2015)

Shakopee Industry Makeup (2015)

54 Running Header Place Holder 2 1 3 4 6 7 8 5 Running Header Place Holder Economic Competitiveness Running Header Place Holder Running Header Place Holder Running Header Place Holder Running Header Place Holder

Manufacturing Health Care Retail Wholesale Public Admin Ed. Services Food Service Other

15%

22%

39%

9% 10%

49%

13%

11%

9%

9% 8%

8%

EMPLOYMENT MANUFACTURING IN SHAKOPEE HAS SEEN RAPID GROWTH, WHILE OTHER INDUSTRIES HAVE GROWN AT SIMILAR RATE AS THE TWIN CITIES REGION, REFLECTING INCREASED RELIANCE ON A FEW INDUSTRIES FOR ECONOMIC SUCCESS. FIGURE 2.8 - LARGE INDUSTRIES CHANGE IN EMPLOYMENT

Change in Shakopee Employment Largest Industries (2002-2014)

3,370

1,324 1,960 1,757 1,160

Manufacturing

Wholesale Health Care Retail Education

Industry sector

number of jobs

ENVISION SHAKOPEE |SECTION II: ECONOMIC ENVIRONMENT