Graco, an industrial manufacturing company, announced in June that its headquarters would relocate from Minneapolis to company sites in the northwest metro over the next two years. It will result in 400 manufacturing jobs leaving the city proper.
Minneapolis leaders have long coveted Graco’s land along the Northeast riverfront for housing, parks, and retail, and there was little hand-wringing over Graco. Modern cities like Minneapolis have long had a love/hate relationship with manufacturing and industry. The sectors provide high-paying jobs that require no educational background beyond a high school diploma and training. But the urban political elite is focused on green/tech jobs and sees industry as harmful to residents.
Kevin Reich represented the city’s 1st Ward for 12 years, through 2021. The ward, which encompasses Northeast Minneapolis, once had the highest concentration of industrial jobs in the state. He believes blue-collar jobs offer living wages to parts of the workforce who have seen their standards of living decline as manufacturing has mostly moved overseas. When those jobs leave the city, so does the opportunity for a living wage.
The city’s 2040 Plan, which guides growth and development, has little to say about manufacturing. It mostly references a 2006 industrial land use and employment policy, which seeks to preserve existing jobs. Reich says housing and density issues took “all the oxygen in the 2040 conversation.”
The facility’s 400 jobs will relocate to the NW metro.
Graco has been operating along the Mississippi since 1940 but has been expanding in the northwest exurbs and wants to consolidate remaining company functions in Dayton, Rogers, and Anoka. It is one of the largest manufacturers in Minnesota, producing equipment that sprays, mixes, and dispenses.
A Graco spokesperson said the relocation is part of a long-term plan, as 75%, or 1,300, of its employees already work in Dayton, Anoka, or Rogers. That leaves 25% at the Minneapolis location.
But Reich notes that not all city residents have reliable vehicles that can support commutes to Dayton and Rogers, which have limited public transportation, and that the best way to support residents without white-collar skills is to have living-wage jobs in the city. Reich chaired the council’s transportation public works committee and co-chaired the zoning and planning committee, which focused on how people use spaces in the city. He fears that losses like Graco are “creating a car dependency and maybe even a lack of access for some.”
General trends show manufacturing moving out of the city, while other fields like hospitality and transportation are growing, says city council member Michael Rainville, who represents Minneapolis’ 3rd Ward where Graco resides. The state Department of Employment and Economic Development (DEED) shows manufacturing jobs in the metro area bouncing between 198,000 and 205,000 since 2023.
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Minneapolis director of community planning and economic development Erik Hansen believes Graco’s departure won’t have a lot of impact on the city because those jobs aren’t being eliminated but relocated. He suggests Minneapolis will see growth in fields like health care and banking.
General trends show manufacturing moving out of the city, while other fields like hospitality and transportation are growing, says city council member Michael Rainville, who represents Minneapolis’ 3rd Ward where Graco resides.
“Minneapolis is committed to retaining and growing middle-income jobs, even as longtime employers like Graco leave,” Hansen says. “We have a strong, diverse economy and a robust public workforce system.”
Myles Shaver, associate dean of faculty and research at the University of Minnesota’s Carlson School of Management, agrees that if the Twin Cities is seen as a regional economy, the impact of Graco moving jobs 25 miles is limited. What does change, he says, is the loss of economic activity created by those 400 workers who buy gas, lunch, and other services near work.
Reich does not find the benign interpretations entirely convincing, noting the importance of entry-level manufacturing and distribution jobs in the urban core, where many residents don’t have a college degree. He notes that the area of Minneapolis with the highest unemployment in the state lies between Plymouth and Lowry avenues, within walking distance of Graco.
Not all manufacturing has left. Reich cites companies such as Electro-Matic, Bell Manufacturing, Precision Associates, and Polar Semiconductor still operating within the city limits. Post-Graco, Reich says he “hopes we maintain what we’ve got and even dig a little deeper to get more.”