Ginny Morris: Jobs -- green, blue, white, whatever ... it's business climate that matters

St. Paul Pioneer Press
By Ginny Morris

Ask a politician about economic recovery, and 'green jobs' are likely to surface. Witness the recent study recommending that the Ford plant reposition itself as a green manufacturing site.

After all, who doesn't advocate jobs that promote environmental sustainability? Everyone does, and that's part of the challenge. Competition is intense. The St. Paul study identified 180 highly visible industrial parks being marketed as green sites, and that's just in the Upper Midwest. Nationwide, the number soars to 3,600.

The underlying point should not be lost on policy-makers as they approach the 2010 legislative session. Minnesota will lag in economic development unless the state has an overall competitive environment to attract a broad spectrum of jobs - no matter their "color."

Elements critical to retaining and creating jobs are at the heart of the Minnesota Chamber of Commerce agenda. Employers need a world-class workforce. Businesses need a streamlined environmental permitting system that adds certainty, compresses the timeline so it's comparable to neighboring states and is less expensive. Employers and employees alike need quality and affordable health care. Companies of all types and sizes statewide need a reliable supply of electricity at competitive rates. Minnesota will trail its peers in the economic recovery without meaningful spending and tax reforms.

Renewable energy and, specifically, the wind industry are at the foundation of many green initiatives. That's the case in St. Paul where the study evaluated the site for a possible wind turbine manufacturer. Equally noteworthy, however, the study noted that St. Paul cannot accomplish the redevelopment alone. Success will require a strong partnership with the state if good-paying jobs are to be attracted anywhere in the region.

A similar conclusion came in a report earlier this summer by Minnesota 2020, the think tank founded by now gubernatorial candidate Matt Entenza. The report encouraged development of wind energy, but also cautioned that any success depends on whether government and industry embrace the large green-growth opportunity. Pardon the cynicism, but even a full-court press for green jobs - any jobs for that matter - will fall limp without the accompanying public policy that spurs rather than spurns business growth and retention.

Witness the renewable energy standard passed by the Legislature in 2007, championed by many as the springboard for a new green industry in Minnesota. We're hard pressed to identify any measureable creation of jobs that can be attributed to the mandate.

Moventas, a Finnish maker of wind turbine gear boxes, plans to build a plant in Faribault. Why Minnesota? The location relative to the North American turbine manufacturers that the company will supply; available skilled workers; the state's JOBZ program; and, some existing business relationships all played a more significant role than the state's energy mandates.

On the flip side, we can identify lost opportunities.

The Minnesota Chamber participated in an effort to market Minnesota to a Danish manufacturer that anyone would consider green. Though state government representatives focused heavily on Minnesota's dedication to green policies, the manufacturer focused on distance to suppliers and energy costs. The plant ultimately located in Blair, Neb., where average electricity rates are about half those in the southern Minnesota communities it was considering.

Vestas, a Denmark turbine manufacturer, located its North American manufacturing and more recently, research and development, activities in Colorado - a more cost-effective location.

Another green company is considering adding a facility in Minnesota. Economic developers are working hard to convince this company to choose Minnesota over a location in the Northeast where it can run the facility for about $14 million less on an annual basis. No tax incentive, training grant, development grant or low-interest loan has been left out of this deal in an effort to close the gap.

Policy-makers must understand the realties of economic development as Minnesota prepares to emerge from the recession. No. 1, the state's underlying business environment matters just as much to green companies as it does to every other Minnesota business. Companies need to locate where they can produce their goods at a competitive price. No. 2, it's time to measure the net economic and job impact of energy mandates. We should put just as much "energy" into that effort as the environmental interest groups put into making the case for these requirements.

Minnesota is wise to continue to work hard to attract green jobs. The Minnesota Chamber promises to be a partner in advocating for all "color" of jobs. But the debate will be shortsighted - and the results shortchanged - if policy-makers do not give full attention to the broad scope of public policy necessary to make Minnesota an attractive place to do business.

Ginny Morris is president of Hubbard Radio, Minneapolis, and immediate past chair of the Minnesota Chamber Board of Directors.