Industry outlook highlight of meeting

0 Comments | La Crosse Tribune, Dec 02, 2004 | by Cahalan, Steve

There are opportunities to grow manufacturing, health care, tourism, higher education and other industries through collaboration, addressing training and education needs, and a proposed nanotechnology center, speakers said Wednesday at the 7 Rivers Region Economic Summit at the La Crosse Center.

About 120 people attended the fourth annual economic summit, organized by the 7 Rivers Region Alliance, whose focus is western Wisconsin, southeastern Minnesota and northeastern Iowa. This year's topic was new directions for manufacturing.

"Some people say we're going to lose all our manufacturing. Well, we're not," said state Sen. Robert Kierlin, R-Winona, who is chairman of Winona-based Fastenal Inc. "There's always going to be a significant amount of manufacturing" in the United States.

Kierlin said he can think of at least five types of manufacturing that will remain in the United States. "The first one is the manufacturer whose raw materials are nearby," he said. "I think we'll always produce Spam over in Austin."

A second type will be manufacturers that specialize in fast production, particularly of parts that customers need in emergencies, when equipment breaks down. A third type is manufacturers of very large and heavy products that are difficult to move, Kierlin said.

The fourth and fifth types are manufacturers of products that require lots of engineering and customization, such as military hardware; and products based on a new idea or invention, Kierlin said.

Tourism, health care and higher education are other candidates "for really positive economic growth" in the region, Kierlin said.

Harlan Jacobs, president of Genesis Business Centers Ltd. in suburban Minneapolis, spoke about the proposed Rushford (Minn.) Institute for NanoTechnology facility. The institute is a nonprofit organization that was created to bring high-tech jobs and businesses to rural areas in and around southeastern Minnesota.

The institute would be an incubator of companies based on products related to nanotechnology. The concept of nanotechnology - building devices at the molecular level - means that products will be smaller.

Jacobs said the institute hopes to obtain a $600,000 state appropriation from the Minnesota Legislature in early 2005. It needs a total of $2 million in start-up funding, hopes to obtain the rest from the federal government and private foundations, and hopes to open its facilities in 2006. After that, proposed second and third phases would require another $4 million.

Jacobs also spoke about the need for venture capital for start-up companies, and said most of it is on the East and West coasts. The Origin Investment Group of so-called "angel investors" has formed in the La Crosse area, and has made its first venturecapital investments.

The work force will get older, said Beth Sullivan, director of planning and marketing for Workforce Connections Inc. She discussed highlights of the 2004 State of the Workforce Report published by the Western Wisconsin Workforce Development Board.

"We have to do things to engage those older workers" so they will want to continue working, Sullivan said. And employers will need to recruit people from different ethnic backgrounds, and adapt their retention strategies to the increasing generational diversity in the workplace, she said.

It's important to address the "skills gap" between potential employees and what employers need, through education and training, Sullivan said.

Rusty Cunningham, publisher of the La Crosse Tribune and the Winona Daily News, said this was the fourth annual economic summit and much had been accomplished in the region since the first one. But much remains to be done, he said.

Cunningham stressed the importance of regionalism and collaboration. He cited the Health Science Center in La Crosse as a "dynamic partnership" of five organizations. "It makes you wonder as you listen to our speakers today, do we have the potential for more partnerships?" he asked.

"There are many examples of cooperation among governments, businesses and communities that indicate that we can work and succeed together as a region," said Christina Trombley, president of the 7 Rivers Region Alliance board, She said examples include tourism organizations working together to promote tourism in the region and collaboration in solid waste management.