KOSSUTH & PALO ALTO COUNTY1
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1 KOSSUTH & PALO ALTO COUNTY EXISTING INDUSTRY REPORT Kossuth/Palo Alto County Economic Development Corporation 106 S Dodge St, Ste 210 Algona, IA PH FAX kcedc@kossuthia.com
2 About the Counties 2 Located in north Iowa, near the border of Minnesota, Kossuth and Palo Alto Counties are ideal business locations--close to Minneapolis and Des Moines. The counties boast businesses from all major sectors including healthcare, services, agriculture, manufacturing, retail and more. Kossuth and Palo Alto Counties hold two of the lowest unemployment rates in the state, and many businesses are expanding. The counties diverse business environments, along with strong workforces and community support, make Kossuth and Palo Alto Counties strong business centers with the potential to grow. Business Surveys 10 Statistics on the following pages are taken from the 2012 Kossuth and Palo Alto County Economic Development Corporation Business Surveys. A total of 110 businesses in Kossuth County and 80 businesses in Palo Alto County participated in the surveys. Major industries were represented including agriculture, education, healthcare, manufacturing, retail and services Overall Opinion of the Counties Businesses answered questions about general business trends, expansion, workforce, future business and more. A selection of the survey results are shown in the following pages. The results represent a sample of Kossuth and Palo Alto County businesses and do not represent every business in the counties
3 Expansion 19% of businesses surveyed in Kossuth County plan to add employees. 19% 54% 54% of businesses surveyed in Kossuth County experienced growth in Plans to Expand - Kossuth County 18% of businesses surveyed in Palo Alto County plan to add employees. 18% 49% 49% of businesses surveyed in Palo Alto County experienced growth in Plans to Expand - Palo Alto County 3 No Unsure Yes 42% of businesses surveyed in Kossuth County and 37% in Palo Alto County plan to upgrade their business in the next 5 years. No Unsure Yes 62% of businesses surveyed in Kossuth County own/lease sufficient property to expand. 62% 55% of businesses surveyed in Palo Alto County own/lease sufficient property to expand. 55% 88% of businesses surveyed in Kossuth County and 84% of businesses in Palo Alto County rated their respective counties as excellent or good.
4 Workforce Availability & Quality 4 Professionals Managers Office Skilled Semi-Skilled Unskilled Kossuth County Workforce Availability Workforce Quality 76% of businesses surveyed in Kossuth County rated the office workforce quality as good or excellent. 10% 20% 30% 40% 50% 60% 70% 80% A better quality of working life, together with the promotion of employment and entrepreneurship, are evident in Kossuth and Palo Alto Counties. With employment at 95.7% in Kossuth County and 95.7% in Palo Alto County, informed choices are made by knowledgeable business owners to allow for the continuation of strong employment standards. Businesses are focusing on quality of work and employment, ensuring career and employment security along with developing skills and competencies for their employees. Kossuth and Palo Alto Counties are proud of their welltrained and educated labor force. Professionals Managers Office Skilled Semi-Skilled Unskilled Palo Alto County Workforce Availability Workforce quality 78% of businesses surveyed in Palo Alto County rated the office workforce quality as good or excellent. 10% 20% 30% 40% 50% 60% 70% 80%
5 Economic Impact: Wild Rose Casino 5 The Wild Rose Casino in Emmetsburg is one of the premier gaming facilities in the Midwest. The 16,800-square-foot casino opened in June, 2006, and boasts 525 state-ofthe-art slot machines. Wild Rose Casino and Resort includes a 70- room hotel. Economic impact on Iowa Payroll & Benefits $1,652, Taxes & Admission Fees $2,150, Total $6,144, Equipment & Supplies $1,850, Charitable Contributions $491, Source: Wild Rose Casino Statement of Economic Impact on State of Iowa, for period July 1 to September 30, 2011.
6 Economic impact analysis 6 Economic impact analyses were conducted on several businesses in the Kossuth-Palo Alto region utilizing the IMPLAN software model. The analyses were completed by the Institute for Decision Making at the University of Northern Iowa and provide insight into the impacts a particular industry has on the regional economy. In addition to the direct impact each company has on an area s economy, the multiplier effect can also be expressed as indirect impacts and induced impacts. Those impacts are defined as follows: Indirect effects are the results of local industries purchasing from each other. This includes business growth/decline resulting from changes in sales for suppliers to the directly affected businesses. Induced effects reflect changes in spending from households as income/population increases or decreases due to the changes in production. This includes shifts in spending on food, clothing, shelter, and other consumer goods and services, as a result of the change in workers and payroll of directly and indirectly affected businesses. Aluma Ltd. Energy Panel Structures montag ReTech A Division of Universal Mfg Snap-On Tools
7 Economic Impact Analysis: Results 7 Operations Output Total output in the Kossuth-Palo Alto region generated directly from the combined sales of the firms and the multiplier effect. The multiplier effect of the presence of these five businesses results in an additional $55,371,528 in economic activity throughout the region beyond their specific direct impacts. Direct $220,600,006 InDirect $33,660,562 Total $275,971,528 induced $21,710,966 pharmacists mutual Operates in 49 states plus D.C. Has over 86,000 policies in force Has over 200 employees in Kossuth County Has policyholder surplus of over $75 million Has revenues of $108 million Operations Employment Total employment in the region generated by the combined sales of the firms. The multiplier effect results in an additional 487 jobs beyond the companies actual employment in the region due to the economic activity of the businesses and their employees. Direct 726 InDirect induced Total 1,213.3 Note: These numbers are not directly comparable to previous reports due to different companies being included. Due to the large impact of food processing manufacturers and agriculture-related companies on the area, these companies were analyzed as a separate group. See page 8. Source: Sales and employment numbers provided by each company.
8 Economic Impact Analysis: Results Food processing and selected ag-related companies 8 Operations Output Total output in the Kossuth-Palo Alto region generated directly from the combined sales of the firms and the multiplier effect. The multiplier effect of the presence of these four businesses results in an additional $70,320,980 in economic activity throughout the region beyond their specific direct impacts. Direct $416,000,000 InDirect $58,928,930 induced $11,392,050 Total $486,320,980 Operations Employment Total employment in the region generated by the combined sales of the firms. The multiplier effect results in an additional 1,888 jobs beyond the companies actual employment in the region due to the economic activity of the businesses and their employees. In addition, wholesale companies such as MaxYield, Pioneer Hi-Bred and StateLine Cooperative report sales in excess of $495 million and employ more than 380 people. Direct 491 InDirect 1,386.8 induced Total 2,378.7 Source: Sales and employment numbers provided by each company.
9 Economic Impact crops and agriculture 9 Kossuth County Agriculture crops acreage, yield and production Planted Harvested Yield Rank in Acres Acres per Acre Production State (acres) (acres) (bu/acre) (1,000 bu) Corn for Grain 326, , ,830 1 Soybeans 220, , ,464 1 Oats (D) (D) (D) (D) (D) (acres) (acres) (tons/acre) (tons) Alfalfa Hay (NA) (D) (D) (D) (D) Other Hay (NA) , impact of crops ( average) Corn $256,109,600 Soybeans $115,758,400 kossuth county livestock - JANUARY 1, 2012 Number of Head Rank in State All Cattle 36,500 34T & Calves Beef Cows 4, Milk Cows 1, Hogs (2008) 770,000 T=Tie in rankings D=Not published to avoid disclosure of individual operations Corn $138,741,000 palo alto county Soybeans $58,633,260 palo alto County Agriculture crops acreage, yield and production Planted Harvested Yield Rank in Acres Acres per Acre Production State (acres) (acres) (bu/acre) (1,000 bu) Corn for Grain 185, , , Soybeans 116, , , Oats 1,200 1, (acres) (acres) (tons/acre) (tons) Alfalfa Hay (NA) 3, , Other Hay (NA) (D) (D) (D) (D) livestock - JANUARY 1, 2012 Number of Head Rank in State All Cattle 18, & Calves Beef Cows 3, Milk Cows T Hogs (2008) 545,000 T=Tie in rankings D=Not published to avoid disclosure of individual operations Sources: USDA January final Crop Report and Iowa Agriculture Statistics Bulleton, USDA.
10 Economic Impact: Hospitals 10 Kossuth Regional Health Center Kossuth Regional Health Center operates a 25-bed critical access hospital, two physician clinics, home care, hospice and public health nursing agencies. KRHC employs approximately 200 individuals and maintains Master Affiliation and Professional Services Agreements with Mercy Medical Center-North Iowa. Economic impact of Regional Health Center on Kossuth County Direct Jobs Total Jobs Payroll & Proprietor Income Total Payroll & Proprietor Income (including multiplier effect) $11,351,128 $13,640,143 (including multiplier effect) Economic impact of healthcare sector on Kossuth County Direct Jobs Total Jobs Payroll & Proprietor Income Total Payroll & Proprietor Income (including multiplier effect) $32,856,958 $38,784,260 (including multiplier effect) Palo Alto County Health System Palo Alto County Health System (PACHS) provides a continuum of primary health care from health promotion to end of life care. The main entities of PACHS include Palo Alto County Hospital, three medical clinics, long term care services, independent senior living apartments, home care, county ambulance and emergency services. Palo Alto County Hospital includes a wide range of diagnostic, rehabilitation, and medical care that includes inpatient and outpatient surgery, acute and intermediate care (swing bed), therapy services, obstetrics, and emergency services. Family Practice Clinics are located in Emmetsburg, Graettinger and West Bend. PACHS is a partner of the Mercy Health Network - North Iowa Economic impact of Palo Alto County Health System on palo alto County Direct Jobs Total Jobs Payroll & Proprietor Income Total Payroll & Proprietor Income (including multiplier effect) $9,782,575 $11,670,576 (including multiplier effect) Economic impact of healthcare sector on palo alto County Direct Jobs Total Jobs Payroll & Proprietor Income Total Payroll & Proprietor Income (including multiplier effect) $23,617,514 $27,863,758 (including multiplier effect) Source: Iowa Hospital Association, January 2012.
11 Economic Impact: Education 11 Iowa Lakes Community College Iowa Lakes Community College is a public, comprehensive educational institution approved by the Iowa Department of Education and accredited as an institution by the Higher Learning Commission of the North Central Association of Colleges and Schools. Iowa Lakes offers several locations throughout a five-county service area: Algona, Emmetsburg, Estherville, Spencer and Spirit Lake. At Iowa Lakes, faculty and staff recognize learning is lifelong. Continuing education continues to be an emphasis of the college. Customized training is specifically designed for area businesses and industry. Enrollment Kossuth/Palo Alto Employment Payroll 3, $5,480,843 up 5.1% in the past decade Kossuth & Palo Alto County k-12 Schools Public and private K-12 education is available in Kossuth and Palo Alto Counties in school districts with enrollments ranging from 45-1,155 students. Students in these counties typically rank above average in student achievement in comparison to other Iowa students. Enrollment Employment Payroll 4, Full-time Part-time $31,319,740 ACT Scores Kossuth County palo alto County U.S. Average K-12 figures are sums of public and private schools in Kossuth and Palo Alto Counties.
12 Kossuth/Palo Alto County Economic Development Corporation 106 S Dodge St, Ste 210 Algona, IA PH FAX kcedc@kossuthia.com
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