5. EDSR 09-11-2006 - Laserfiche WebLink

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thing of the past A heartening sign, in Stinson's view, can be found in initial unemployment claims. As of March, new jobless claims were down 12 percent from a year earlier. That means the ranks of the unemployed aren't growing as fast and, along with a drop in continuing claims, suggests that the job market is maybe poised for apickup -maybe. But don't blame the usual suspect for the slowdown in jobs creation -manufacturing. Minnesota manufacturers have outperformed their counterparts elsewhere. "We're actually showing a little growth in manufacturing," Stinson said of Minnesota. The state lost 11 percent of its manufacturing jobs since early 2001, a recession year, but the nation lost 16 percent of jobs at goods-making firms. Many Minnesota manufacturers have reason to complain about rising costs, but that hasn't kept some from adding to their payrolls. Consider Donnelly Custom Manufacturing in Alexandria. In 2004, the company had so many orders that its factory spent more hours than ever before making injection-molded plastic parts for all manner of products. "In 2005, we're outpacing 2004," said Ron Kirscht, Donnelly's president. Factory hours at Donnelly so far this year are 8 percent ahead of last year, he said. Providing custom engineering on parts for new products, from plastic storage units to parts for automatic teller machines, Donnelly has avoided the trap of making commodities -the kind of mass-produced products dominated by importers. "Our customers tend to be leading OEM [original equipment manufacturers]," Kirscht said. "They're much more vibrant in terms of launching new product lines and expanding current offerings. We ship product to China, India, Mexico, France and South America." Some Minnesota industries actually are facing a worker shortage. Health care providers, from hospitals to nursing homes, were short of help even when the state's labor market was at its slackest, three or four years ago. Precision metal workers, making parts for medical devices, remain elusive quarry for companies such as Cretex Companies, an Elk River holding company for an array of businesses, from concrete products to tiny parts used in implantable pacemakers and defibrillators. "Some companies are starving for employees in the machining industry," said Thomas Bender, Cretex president and CEO. "Machinists are hard to find." Business also has been good at Davisco Foods International, a Le Sueur cheese maker that employs 600. Orders and prices have been strong, allowing the company to do modest hiring in recent months, said Mark Davis, Davisco president. Indeed, Davis is struggling with a problem he hasn't had for years -one that suggests that in parts of Minnesota, job prospects might be picking up in ways not captured in official employment statistics. Davis' problem: retaining newly hired workers. "We're getting more turnover in beginning workers," he said. "Employees have options. They're testing