< Previous16 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EBecause of that, it’s no wonder that Minnesota’s unemployment rate dropped to 2.9 percent in August, falling below 3 percent for the first time in 19 years. “The annual job growth figures point to a state labor market that is growing strong,” said Minnesota Department of Employment and Economic Development Commissioner Shawntera Hardy. “Among other positive signs, the number of unemployed Minnesotans last month fell below 90,000 for the first time in over 18 years.”Tarkenton, who led the Vikings to four NFC Championships and appearances in four Super Bowls, would like that kind of winning because it relies on teamwork.“It all goes back to the people of Minnesota,” says Kevin McKinnon, Deputy Commissioner of Economic Development for DEED. “The productivity and loyalty and commitment of the Minnesota workforce is our No. 1 location attribute. We are successful because of the people who already live and work here.” Minnesota’s GDP has increased by 18 percent in the last decade $351.1BMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 17Minnesota by the NumbersS T A T I S T I C A L P R O F I L ETop 25 Projects in 2017-2018 (YTD) by Capital Investment Top 25 Projects by SectorCompanies City Sector Category Type Investment (US M) JobsChippewa Capital Partners Nashwauk Metals New MF $1,300 450Digi-Key Corporation Thief River Falls Electronics New DW, HQ 300 1,000U.S. Bancorp Minneapolis IT & Comm. New DC 250 Hormel Foods Corporation Melrose Food & Beverage New MF 137 Graco Inc. Rogers Machinery, Equip. & Const. Exp. MF, DW, R&D 73.7 84Ralco Nutrition, Inc. Marshall Food & Beverage New MF 54 330Trushrimp Co. Luverne Food & Beverage New MF 50 124Riverview, LLP Morris Food & Beverage New MF 50 General Mills, Inc. Golden Valley Food & Beverage Exp. HQ, R&D 45 Daikin Applied Americas Inc. Faribault Machinery, Equip. & Const. New MF 40 200Andersen Corporation Bayport Wood Products Exp. MF 40 40Thor Companies Fridley Machinery, Equip. & Const. New HQ 36 Premium Iowa Pork, LLC Luverne Food & Beverage Exp. MF 31.7 325Colder Products Company -- Chemicals & Plastics New MF, HQ 26 UTC Aerospace Systems Burnsville Aerospace Exp. MF 22 100Cargill, Inc. Big Lake Food & Beverage Exp. MF 20 L & M Radiator, Inc. Hibbing Automotive Exp. OF, MF 17.6 22Uponor OYJ Apple Valley Chemicals & Plastics Exp. MF 17.4 66Emerson PMVA, Inc. Chanhassen Machinery, Equip. & Const. Exp. MF 14 80Crown Iron Works Company Roseville Metals New OF, MF 14 23Proto Labs, Inc. Brooklyn Park Chemicals & Plastics Exp. MF 13.5 139Wellpet LLC Minneapolis Food & Beverage Exp. MF, HQ 13 27Delta Dental of Minnesota Bemidji Business & Financial Services New OF 13 150Urban Organics -- Food & Beverage Exp. MF 12 Illume Holding Company, LLC Maple Grove Consumer Products New MF 10.6 85Machinery, Equip. & Const. 21%Food & Beverage 18%Chemicals & Plastics 11%Business & Financial Services 8%Automotive 7%IT & Communications 5%Life Sciences 5%Metals 5%Consumer Products 4%Electronics 3%Other 9%Minnesota consistently ranks highly among the best states for business.Source: Conway AnalyticsSource: Conway AnalyticsSource: CNBC18 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D ETop 25 Projects by TypeMinnesota Labor MarketManufacturing 60%Headquarters 34%Distribution Warehouse 14%Office13%Research and Development 6%Data Center 1%Minnesota ranked No. 1 in the country for the Five-Year Survival Rate of new businesses (2012-2017).Source: Conway AnalyticsSource: Bureau of Economic AnalysisMinnesota has added 330,000 jobs in the past eight years.330,000 jobs250,000200,000150,000100,00050,00002005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Unemployment Job VacanciesSource: Bureau of Labor StatisticsNotes: Unemployment is seasonally adjusted. Job vacancies are for the last quarter of each year. Source: Labor Market Information, DEED MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 19Cities with Lowest % of Applicants Looking for Jobs out of StateTalent Migration Map — Twin Cities Leads in Least Out-MigrationJob Growth from 2006-20170% 20 40 60 Minneapolis-St. Paul, MNAtlanta, GALas Vegas, NVSeattle, WANew York, NYMankato-North MankatoMinneapolis-St. PaulSt. CloudDuluthRochesterMSA8.9%6.8%6.7%1.0%5.8%Percent GrowthSource: Analysis of 668,000 Glassdoor job applications during a typical week in 2018Source: Conway AnalyticsSource: Prof. Myles Shaver, University of Minnesota Carlson School of Management, from his November 2018 book “Headquarters Economy: Managers, Mobility, and Migration”1.000.800.600.400.200.00-0.20-0.40-0.60.70 .90 1.10 1.30 1.50 1.70 1.90 2.10 2.30 2.50SeattleChicagoSacramentoAtlantaNew YorkDallasBostonHoustonTampaPhiladelphiaDetroitBaltimoreSan DiegoPhoenixLos AngelesPortlandWashingtonSan FranciscoNet Migration %Out-Migration %St. LouisRiverside7th in the nation for wind energy as a share of total electricity generationSource: U.S. Energy Information Administration.Source: Labor and Market Information, DEEDMINNEAPOLIS-ST. PAULNotes: Unemployment is seasonally adjusted. Job vacancies are for the last quarter of each year. Source: Labor Market Information, DEED 20 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D ETwin Cities Metro Area Average WagesLabor Force Trend (Millions)Fortune 500 Companies (2018)182 business expansion projects announced in 2017, expected to result in 7,668 new jobs & 176 retained jobs.Source: FortuneUnitedHealth GroupTargetBest BuyCHS3MU.S. BancorpSupervaluGeneral MillsC.H. Robinson WorldwideEcolabLand O’LakesAmeriprise FinancialXcel EnergyHormel FoodsThrivent Financial MosaicMosaicSecurian Financial GroupPattersonPolaris IndustriesSource: DEED’s 2017 Business Expansions Report$65,000$60,000$55,000$50,000$45,000$40,0003.503.253.002.752.502.252.001.751.502001 2003 2005 2007 2009 2011 2013 2015 20172009 2010 2011 2012 2013 2014 2015 2016 20172.942.942.952.952.962.963.043.042.942.942.952.953.003.002.972.973.063.06Source: Local Area Unemployment Statistics, Labor Market Information Office, DEED Source: Quarterly Census of Employment and Wages, Labor Market Information Office, DEEDMinnesota Minneapolis-St. Paul Metro AreaFishingTwin Cities Metro Area Average WagesLabor Force Trend (Millions)Super Bowl LII — Feb. 4, 2018Visitor Spending Impact:Who Was There:Source: Cushman & Wakefield, Rockport Analysis LLCSource: twincities.com, dnr.state.mn.usMinnesota Fishing Waters: 3,800,000 AcresArea of Conneticut:3,547,520 AcresFishable Lakes:5,493Fishing Species:158Pounds of Fish Caught in 1 Year:Panfish:Walleye:Northern Pike9.7M1M+$400M12,000$6255,000$284MTotal Non-Resident Visitor Spending4.6M 4.6M$64M$63M$28M $27M$17M $15M$71MRetail Hotel Food/Bev Rental Entertainment Other Other Car(Ground Transpor-tation)(Travel/PersonalServices)$80$70$60$50$40$30$20$10GuestsTotal Impact to Minnesota BusinessesVolunteers(10% of the downtown day time workforce)Spent a Day by EachNon-Resident VisitorJournalist & MediaSource: Quarterly Census of Employment and Wages, Labor Market Information Office, DEEDI N T ER VI E W W I T H L E AD ER SH I PThriving in the North22 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EDEED removes barriers to business growth in Minnesota.by R O N S TAR N ERThriving in the Northby Thriving in the Northby R O N S TAR N ERThriving in the NorthR O N S TAR N ERf you’re looking for a place to start a new business, Minnesota is ready to welcome you with open arms and more, says Kevin McKinnon, Deputy Commissioner of Economic Development for the Minnesota Department of Employment and Economic Development (DEED).But don’t just take his word for it, says McKinnon. Check the scorecard: “We’ve been fi rst in fi ve-year business survival rate in the United States from 2012 to 2017,” he says. “Surviving fi ve years in business is huge. Almost half of all new ventures go out of business before that.”The reason so many startups succeed in Minnesota is because the state goes out of its way to remove barriers to business growth, McKinnon notes. Whether it’s cutting business costs or streamlining approvals for fi nancial assistance, DEED is prepared to do what it takes to make sure your venture has every opportunity to thrive, he adds.In a recent interview, McKinnon discussed this and other factors that combine to create an ecosystem that fosters long-term business growth.What are the location attributes that make Minnesota such a compelling destination for business?IMountain biking is a popular pastime in Duluth, Minnesota.Photo courtesy of Explore MinnesotaMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 2324 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EMCKINNON: First thing is the workforce — the people who are here. We have long been known for an excellent education system. We continue to focus on providing the skills and knowledge for our citizens who then become very beneficial for the business community. The productivity and loyalty and commitment of the Minnesota workforce cannot be matched. Secondly, our state has always focused on infrastructure and connectivity. How does this assist the movement of goods and people? We have continued to invest in our ports, rail, airports and highways over the years. Thirdly, there is a concentration of knowledge here — particularly in medical technology and health care — in both large and small companies. The training and higher ed resources are here, as is the R&D. That combination makes Minnesota stand out. What have been the three or four biggest project wins in Minnesota of the past 12 months?MCKINNON: Digi-Key Electronics expanded in Thief River Falls with a $300-million distribution center for their electronics business, adding 1,000 jobs over several years. That stands out as a fantastic project in a rural part of our state. They understand the value of investing here and serve a global market. It was a great year last year from a Greater Minnesota rural economy perspective. We also landed 140 jobs in Hutchinson from Uponor, which does the in-floor HVAC systems. Daikin, meanwhile, is building a new factory in Faribault, investing over $40 million and creating 130 new jobs. In the Twin Cities, Graco is doing a $70-million, 434,000-sq.-ft. expansion with 80 jobs in Rogers. Smaller projects are happening across “You can’t get people to leave once they get here.” — Kevin McKinnon, Deputy Commissioner of Economic Development, DEEDPadelford Riverboat and St. Paul skyline at sunset Photo courtesy of Visit Saint PaulNext >