by David Hill
Editor
Minnesota Gov. Tim Walz visited Thief River Falls Tuesday to highlight investments in child care and workforce development. While in Thief River Falls, the governor toured DigiKey and the Thief River Falls Regional Airport.
This past Legislative session, said Walz, was all about putting money back into the workforce and back into childcare.
Monday, Walz announced a new $316 million program that will bolster wages and benefits for Minnesota child care providers and early educators, addressing a longstanding workforce crisis that makes it challenging for families to get child care. Beginning on Monday, Oct. 16, over 8,000 child care providers can begin applying for Great Start Compensation Support Payments. Minnesota is one of the first states to provide direct funding to support the child care workforce.
Walz also said the State of Minnesota has to continue to be good partners and address issues of workforce development and workforce housing.
Walz praised local leaders for their advocacy of their community and pushing the administration to support child care initiatives, and in Thief River Falls, improvements at the Thief River Falls Regional Airport.
While at DigiKey, the governor said he was convinced that “if we show what’s happening here, it would increase the optimism across the state.”
DigiKey is a global leader in distribution of electronic components. It employs over 5,000 people, over 3,600 in Thief River Falls alone. It ships parts to 180 countries, has more than 17.2 million products, and reported $5.1 billion in sales last year.
The biggest challenges for this company is affordable workplace housing for its employees and day care for their children.
President Dave Doherty also talked in a video presentation about the impact the China tariffs are having on North American business, which have to compete against companies that do not have tariffs.
Though not involved in establishing tariffs, of course, Walz said he would share their concerns with the President Biden’s Administration.
Thief River Falls Mayor Brian Holmer reiterated the need for workforce housing, but noted that with such growth come demands on infrastructure. If infrastructure changes are supported only with property taxes, he said it puts an extraordinary burden on residents and businesses.
This spring, Walz signed the state’s largest-ever infrastructure bill into law, which would create good-paying jobs, investment in the state’s roads and bridges, and bring long-term benefits to communities across the state.
Walz praised DigiKey for its major investments of its own in the quality of life of its employees. He acknowledged the workforce development difficulties associated with living in northern climates, and also that a major portion of the population is aging.
Matt Varilek, commissioner of the Minnesota Department of Employment and Economic Development (DEED), said he counted himself among those people whose jaws dropped when they saw the DigiKey facility. He said Minnesota is proud to be a partner.
The product distribution center was completed with assistance from the state of Minnesota. With the 2.2 million square foot product distribution center expansion, it now occupies over 3 million square feet. It also serves nearly 1 million customers.
Varilek noted that following the last Legislative session DEED now has more resources to address issues that companies like DigiKey are facing. He specifically talked about advertising career opportunities in neighboring states, The Drive for 5 Workforce Fund, which will increase a pipeline of workers who are skilled and prepared to enter high-growth and high wage employment, and support for childcare providers.
Chris Lauer, vice president of order fulfillment at DigiKey, talked about their employees, their value to the success of the company and culture of DigiKey. He said they are optimistic about continued growth.