Enbridge Line 3 Replacement Project to Support 8,600 Jobs in Northeast Minnesota: New Economic Impact Study from UMD's BBER
Monday, June 12, 2017
Duluth, MN: The Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth’s Labovitz School of Business and Economics recently released the results of the Enbridge Line 3 Pipeline Replacement Construction Economic Impact Study (EIS). The Area Partnership for Economic Expansion (APEX) requested this study be conducted to help stakeholders better understand the significant contribution this project will provide. The BBER concluded that the project will create approximately 8,600 jobs and will represent an investment of over $2.0 billion in the 15-county study area in the northern portion of the State of Minnesota.
“APEX supports the Enbridge Line 3 Replacement Project as it represents a significant investment in infrastructure for the safe transportation of a vital energy product,” said Brian Hanson, APEX President and CEO. “The study results confirm that the total economic impact of this project will strengthen our region with additional direct and indirect jobs for our local workforce.”
The study leveraged IMPLAN economic modeling data and software, driven by project budget information provided by Enbridge, to determine the Company’s two-year (2019-2020) Line 3 Replacement Project will:
Result in a total economic impact of over $2.0 billion in Minnesota - $1.5 billion will be contributed by Enbridge
Directly and indirectly support 8,600 jobs
4,200 construction jobs
2,800 retail/hospitality sector jobs
1,600 local supplier/manufacturer jobs
Contribute approximately $334 million in total employee wages and benefits
$162 million (~50% of total wages) will go to local workers
Have a value added impact of $745 million on the region
Add $162 million in total economic impact from non-local worker spending on meals, lodging, and incidentals while working in the study area.
The Line 3 Replacement Project impacts primarily rural, northern Minnesota counties in the study area including: Kittson, Marshall, Pennington, Red Lake, Polk, Clearwater, Beltrami, Hubbard, Wadena, Cass, Crow Wing, Itasca, Aitkin, Carlton and Saint Louis counties.
The majority of the project’s economic impacts will come from the construction expenditures, including site preparation, procurement, engineering and environmental costs. Study results also indicated that the retail and hospitality sector should expect an increase in economic activity as a direct result of new spending from non-local workers during the two-year duration of the project. Other accommodations including hotels/motels, resorts, campgrounds and RV parks and full-service restaurants should also experience increased employment needs.
“Jobs for Minnesotans embraces Enbridge’s private investment in Minnesota and also acknowledges the benefits to the environment by moving this project forward. Thousands of local positions will be created by this critical investment project,” stated Nancy Norr, Chair for Jobs for Minnesotans and Director of Regional Development for Minnesota Power, an ALLETE Company.
Enbridge’s Line 3 Replacement Project represents a significant investment in the state of Minnesota, with a project output of more than $2 billion, giving our state a much-needed economic boost and supporting thousands of good jobs for hard-working Minnesotans.
An open comment period began May 15, 2017 and will conclude on July 10. In addition, public hearings are being held in Cloquet and St. Paul on June 13, 2017. More information is available at the Minnesota Department of Commerce website.
Click here for more information and full results of the study.
To learn more about APEX, visit www.APEXgetsbusiness.com.
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APEX is the private-sector led business development engine for northeast Minnesota and northwest Wisconsin. APEX investor-members represent some of the most influential companies in the region, with a collaborative approach to promoting sustainable economic growth. APEX attraction, expansion and retention efforts focus in areas including aviation, manufacturing, professional services and next generation forest products. APEX has impacted over 4,200 jobs in the region, resulting in an annual regional payroll of over $170 million and contributing to over $23 million in state and local taxes annually. For more information on APEX, please visit www.APEXgetsbusiness.com.
Enbridge Inc. is North America's premier energy infrastructure company with strategic business platforms that include an extensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. The Company safely delivers an average of 2.8 million barrels of crude oil each day through its Mainline and Express Pipeline, and accounts for nearly 64% of U.S.-bound Canadian crude oil production, and moves approximately 20% of all natural gas consumed in the U.S. serving key supply basins and demand markets. The Company's regulated utilities serve approximately 3.5 million retail customers in Ontario, Quebec, New Brunswick and New York State. Enbridge also has a growing involvement in electricity infrastructure with interests in more than 2,500 MW of net renewable generating capacity, and an expanding offshore wind portfolio in Europe. The Company has ranked on the Global 100 Most Sustainable Corporations index for the past eight years; its common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
About The Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth Labovitz School of Business and Economics
The Bureau of Business and Economic Research (BBER) works for students, alumni, and the region as a whole. The BBER collects, analyzes, and disseminates information regarding the economy of Duluth, Northeast Minnesota, the State of Minnesota, Northwest Wisconsin and beyond for public and private regional, state, and federal constituencies, providing specific research to identify economic problems and opportunities. The BBER acts as a catalyst to generate research from faculty, staff and students within LSBE and provides students with hands-on, real-world skills of conducting economic and business research and working directly with businesses. The BBER provides unbiased data and analysis concerning the economic viability of building, expanding, relocating, downsizing, and/or eliminating businesses, especially industry-specific businesses, such as forestry, mining, and energy and contributes to strategic thinking about research data (forecasting, communicating, responding, developing). Funded by a special appropriation of the Minnesota Legislature, private contracts, and research grants, the BBER is actively involved in a number of current projects. Learn more about the BBER at https://lsbe.d.umn.edu/centers-outreach/centers/bber.