Spotlight shines on Watertown workforce demand at Terex, Lake Area events: Brad Johnson
Ice skating rinks, electric utility boom trucks and more college classrooms are not something you normally associate together but they are part of a grand picture unfolding in Watertown.
All commanded attention beginning Monday with a Watertown City Council decision to issue another $10 million in bonds, bringing the city’s commitment up to $35 million for a new ice arena.
On Tuesday, Lake Area Technical College closed a street and drew a big crowd for groundbreaking ceremonies on new business and advanced manufacturing buildings.
Then, Wednesday, Gov. Kristi Noem came to town to participate in a celebration and tours of Terex Utilities, Watertown’s largest manufacturer. The event was part of a Terex Corporation’s Board of Directors meeting, the first time its national board has met here.
More: Terex introduces first all-electric utility vehicle; CEO, board of directors visit this week
None of the three events likely would have occurred if not for a team effort some six to eight years ago when Terex was looking to build a new plant.
Watertown was on the verge of losing Terex, which was spread across about 11 buildings. Its processes were inefficient and unable to keep up with demand.
Terex Corporation began a national search for a new location and competition was intense from many states seeking to lure the company. But Watertown and South Dakota offered competitive economic incentives. That, combined with its trained existing workforce, convinced Terex to build a new 450,000-square-foot manufacturing facility on 55 acres near the Redlin Art Center.
Terex “bet big on South Dakota,” Terex Corporation CEO John Garrison said before a crowd of about 600 employees and guests Wednesday. “We chose to stay, and it's absolutely the right place.”
He implored the crowd to help the business find more employees.
“There is tremendous opportunity for this business to grow,” he said.
The new manufacturing plant, which opened in 2020, is Terex’s largest investment in one facility. It is designed for two shifts, but only one full shift is operating because of a lack of employees.
Noem acknowledged the workforce problem facing the state.
“South Dakota has the No. 1 economy in the county right now,” she said. “Our population is growing at 10 times the national average. In fact, right here in this state, the manufacturing sector is growing faster than anywhere else in the Midwest.”
But she also highlighted the problem facing employers.
“We have less than 700 people in the entire state of South Dakota right now that are on unemployment,” she said.
More: Lake Area Tech Archway complex named Dana J. Dykhouse Business Center of Learning
“I know we have challenges with training workforce and getting more people to fill the jobs that are open here," Noem said. "We have started heavily in investing in this state.”
Part of the workforce answer is being answered at Lake Area Technical College. Tuesday’s groundbreaking will create space for about 250 new business and advance manufacturing students. Construction also is under way on an expansion to the diesel technology building, creating room for another 75 students.
The approximately 50,000-square-foot building with an archway over Arrow Avenue is being funded with an $8 million gift from First PREMIER Bank and PREMIER Bankcard and $7.5 million in one-time funding from the state.
The new buildings will enable the recently finished Prairie Lakes Healthcare building to enroll up to 310 new students to support the medical system.
Future buildings for paint fabrication and aviation will break ground in the next couple of years.
More: Watertown City Council approves additional $10M sales tax revenue bond for new ice arena
Part of the economic picture to attract workforce is the ice arena. The project is expected to begin construction this fall and is the last major task identified in the H20-20 Visioning process.
Other projects identified were renovating the Goss Opera House, building the Prairie Lakes wellness center, improving Lake Kampeska and creating more housing. All projects identified are now done or in progress.
The investments are part of creating a community that allows its employers to compete for the skilled labor they need.
Darryl Niven, vice president and general manager of Terex Utilities in Watertown, summed up why everyone needs to work together.
“We need more people in this state in order to be successful,” he said. “We could be doing twice as much as we are today.”
Brad Johnson is a Watertown businessman and journalist who is active in state and local affairs.
This article originally appeared on Watertown Public Opinion: Projects at Lake Area, Terex reveal workforce demand in Watertown
