St. Cloud’s Leading Industries Drive a Resilient and Growing Region

Any community invested in economic development wants to attract businesses that create jobs and support the local tax base. However, each industry isn’t necessarily a good fit for each municipality. The region’s environment, workforce, location, and business climate will determine whether a company thrives in a new environment or struggles to grow.  

In 2019, the City of St. Cloud Economic Development Authority (EDA) conducted a target industry analysis to identify the types of businesses that would likely succeed in the region. Through strategic planning, the economic development team focuses on specific sectors that benefit the community while creating positive experiences in the current business ecosystem.  

“Instead of trying to be everything to everyone, we evaluated our economic strengths to appeal to specific industries in our sweet spot,” says Cathy Mehelich, Economic Development Director for the St. Cloud EDA. “This allows us to effectively assist existing companies with the greatest potential to expand, as well as new companies that express interest in the area.”

Identifying and supporting four key industries has been a journey for the St. Cloud EDA, but its hard work has paid off. Learn how the City of St. Cloud has developed a healthy business community through strategic planning efforts.   

The Pandemic Disrupted Even the Best-Laid Plans

The St. Cloud EDA hired ROI Research on Investment for its target industry analysis. The firm interviewed local stakeholders, held focus groups, and reviewed different sectors to better understand the economy. The company discovered eight industries poised for growth nationally and in the region.

Then the COVID-19 pandemic hit. The entire world shut down overnight, disrupting countless industries and supply chains.

“When the pandemic hit, we realized the world had changed,” says Mehelich. “We needed to find the most resilient industries and greatest opportunities for growth in a post-COVID economy.”

The St. Cloud EDA asked ROI Research on Investment to review the list and identify the most resilient industries – both locally and in the greater American economy. 

Since 2020, The EDA Has Focused on Its Key Industries

For the past five years (and for the foreseeable future), the St. Cloud EDA has built its plans and programs around the four key industries identified in ROI Research on Investment's analysis. These are:  

• Automation
• Food Manufacturing
• Information Technology
• Precision Manufacturing

While any business is welcome in St. Cloud and the local economy extends beyond these four fields, the analysis allowed the EDA to focus its efforts and allocate its time strategically.

“We finished this process with a clear understanding of why these industries make sense for St. Cloud,” says Mehelich. “We also have information cards to discuss the pain points of each industry while highlighting the solutions St. Cloud provides.”

These target industries are not necessarily new to St. Cloud. They already had a presence in the area, but the target analysis highlighted their value and unseen potential investment impact on the community. The report was like receiving a clear economic map of the region and how to strategically navigate it. 

The Business Community is Thriving With These Strategic Efforts

Hiring ROI Research on Investment to conduct the analysis was only the first step for the EDA. The City of St. Cloud then implemented several steps over the past few years to foster better business relationships within its key industries.

• Networking events: The St. Cloud EDA invited leaders from the target industries to connect through virtual and in-person events. People formed professional relationships within their industries and across different sectors.  
• Marketing campaigns: The EDA developed brochures tied to the key messaging highlighted in the report. This created talking points that spoke to St. Cloud's location advantages for each of the target industries. 
• Value-add resources: The EDA curated resources relevant to specific industries, particularly when it came to securing financing. This saves companies time and makes the research process less confusing. 
• Business retention and expansion (BR&E) meetings: The EDA continued to build relationships with the companies already in St. Cloud to better understand their needs. This allowed the city to support existing firms while attracting new businesses.

The key industries report also made the EDA more effective when meeting with higher education partners. One of the outcomes from the target industry recommendations was creating a pipeline workforce development program catered to these industries of the future.  St. Cloud Technical & Community College (SCTCC) opened its Advanced Manufacturing Center in 2023 and is the only college with a 3D metal printer in the state, along with other state-of-the-art equipment. With the EDA’s help, the college works directly with industry partners to better understand their needs and provide training and coursework to support employee development.

The analysis further supported the entrepreneurial community. A clear understanding of the local economy helps founders identify needs and create companies that meet them, further building support and resilience for St. Cloud's key industries. 

The City of St. Cloud is Stronger Because of Its Struggles

The entire process of identifying key industries and fostering a resilient economy was the direct result of the 2020 closure of Electrolux’s freezer manufacturing plant. When Electrolux shut its doors, 750 people were laid off. The EDA jumped into action to mitigate the negative impacts and redirect strategic initiatives toward resilient and growing industries.

The key industry analysis was made possible in part by a two-year grant from the U.S. Economic Development Administration to support economic recovery efforts. The city’s response to the Electrolux closure and programs developed by the EDA in its wake are immeasurable. Businesses and residents are more resilient and better off because of the changes made in the community over the past five years.   

Learn More About St. Cloud’s Key Industries

In the coming months, the St. Cloud EDA will examine the four key industries identified in the report. Follow along on social media or check back often to read about each industry and its impact on the region. Get to know local industry leaders and why they chose St. Cloud for their future growth plans.

The City of St. Cloud EDA represents the community and strives to be a good steward of the funds allocated to it. This means working smarter and allocating its resources strategically. The past five years highlight how the trust earned by EDA is sound, and residents can expect the city to grow in a scalable, resilient manner, supporting the next generation of Minnesotans who call this region home.