Why Minnesota

Proven Performance

Construction Minnesota has a vibrant business climate. Minnesota joins six other states on the Corporation for Enterprise Development's 2007 Development Report Card for the States Honor Roll. Minnesota received all As and Bs in performance, business vitality and development capacity.

Business expansions

According to Expansion Management (July-August 2006), Minneapolis-St. Paul is the second best metropolitan area for business locations. Rankings compare 362 metropolitan areas in public education, health care cost and availability, transportation and logistics infrastructure, quality of life, pool of knowledge workers, government influences on the business climate and metro areas' reputation among site location consultants.
Based on indicators such as business cost, regulatory environment and quality of life, Forbes (September 2006), ranks Minnesota as the 14th best state for businesses in 2006. The state ranks particularly high in quality of life (3rd) and labor (14th).
Business Facilities (July 2006) ranks Minnesota among the top places nationwide to locate a business. The state ranks:

among the top 10 in transportation equipment manufacturing (based on job growth, growth of value added, growth in companies’ capital expenditure and the ratio of production hours to wages);
15th in biotechnology (based on the number of bioscience establishments, state-supported bioscience research and development (R&D) and financing programs and the number of biotechnology parks and incubators); and
16th in manufacturing (based on the number of manufacturing establishments, growth of manufacturing value added and manufacturers’ capital growth).

Dynamic job growth fuels Minnesota's main industries

Employment in Minnesota’s private industries was approximately 2.3 million jobs in 2006, an increase of 234,900 jobs, or an increase of more than 11 percent since 1997.
Employment in Minnesota's services-producing industries increased 13.4 percent between 1997 and 2006, adding nearly 271,000 jobs.
Employment in Minnesota finance and insurance industries grew nearly 21 percent, to 142,100, adding about 24,300 jobs between 1997 and 2006. Employment in the U.S. in these industries was 17 percent. Examples of these industries include commercial banking and savings industries.
Employment in Minnesota's health care services industries increased nearly 37 percent, to 353,500 and adding 96,300 jobs between 1997 and 2006. Employment in the U.S. for these industries grew 22 percent.
Employment in Minnesota's construction industries increased 38 percent, adding almost 36,000 jobs between 1997 and 2006. Employment in the U.S. for these industries grew 32 percent. Examples of these industries include residential building construction and heavy and civil engineering.
Despite weaknesses in the nation's manufacturing sector, selected Minnesota manufacturing industries continue to grow. Minnesota employment in machine shop industries grew 7 percent between 1997 and 2006, compared to the national increase of 5 percent during the same period. Employment in Minnesota's medical equipment and supplies industries grew 25 percent between 1997 and 2006, compared to national growth of 2 percent.

Minnesota’s economy continues to grow strongly

The private sector contributed to $210.6 billion of Minnesota’s gross domestic product (GDP) in 2005 (most recent data), an increase of 27 percent since 2000, adjusted for inflation, matching the U.S. rate.
Services-providing industries contributed 77 percent to the state’s private GDP in 2005. These industries include utilities, wholesale and retail trade, transportation and warehousing, information and insurance, real estate, professional and technical services, management of companies and enterprises, administrative and waste services, educational services, health care and social assistance, arts and entertainment, accommodations and food services and other services.
Goods-producing industries, which consist of mining, construction, agriculture and manufacturing, represented 23 percent of the state’s private GDP.