Business Climate
The Minneapolis/St.Paul metropolitan area has an enviably strong and diversified business base.
An impressive array of companies involved in such widely varied sectors as the manufacture of super computers, household electronics, medical instruments, milling, machine manufacturing, food processing and graphic arts are located in the immediate area. These businesses and 60,000 smaller continue to make Minneapolis/St. Paul one of the largest and most vibrant commercial centers between the East and West Coasts.
Primary factors in the competitive resilience and success of these businesses include a highly educated work force; ready access to high technology; excellent transportation services; low cost energy; and available capital.
Leading Economic Indicators:
Nineteen of the FORTUNE 500 "Largest U.S. Corporations" are headquartered in the metro area. The area is also home to a total of 30 FORTUNE 1000 companies as well as several of the world's largest private companies.
In 2004, Minneapolis/St.Paul ranked 1st in adults active in the labor market with 76.9% of its population in the labor force.
In 2005, the unemployment rate Minneapolis/St.Paul was 3.7%, a drop from an already low 4.4% in 2004.
Income per resident was $38,601 in 2003, 7th among Metropolitan Statistical Areas.
The Gross Metro Product, (GMP), ranked 14th among MSAs in 2004 with $162 billion totaled.
In 2000, 40% of all people 25-34 years old held a bachelors degree.
For this month’s Labor Market Information for the State of Minnesota please go to:http://www.deed.state.mn.us/lmi/Home.htm
Friendly Government:
State and municipal governments appreciative to ever-changing business issues are vital to maintaining a business climate competitive in both national and world markets. Minnesota has achieved a uniquely successful balance between complementing the entrepreneurial initiatives of its business community while providing high standards of education and other services vital to sustaining and enhancing a skilled workforce and quality of life.
In recent years the Minnesota State Legislature has also taken drastic steps toward reducing property taxes for businesses throughout the state. Reforms passed in 1995 reduced commercial-industrial property taxes payable in 2003 by 34%. Minnesota also does not tax a company’s personal property, which is beneficial to equipment-intensive businesses.
In 2002, Minnesota was named one of the nation’s best-managed states, ranking fourth by State Policy Reports in its, “Index of State Budget Process Quality”.
In 2003 the Minnesota Legislature, created up to 10 tax-free zones to encourage business and economic development in the locations that need it most. The program, called Job Opportunity Building Zones, (JOBZ), are designed to stimulate and grow economically depressed areas. By providing tax exemptions, JOBZ will encourage entrepreneurial activity.
Businesses also have benefited from tort reform, passed by the 2003 Legislature that limits the liability of civil defendants in certain circumstances.
A Strong and Educated Work Force:
As every businessman and woman knows, a strong and healthy economy depends heavily on well-educated, well-trained work force.
The state of Minnesota and the Minneapolis/St.Paul metro area are consistently ranked among national leaders in terms of levels and quality of education attained. Just one small example, Minnesota’s K-12 public schools averaged 3.2 students per computer in 2001, compared to the 4.2 U.S. average.
Encarta online ranked the city of Minneapolis the 6th most-educated city, based on percentage of population with a bachelor’s degree. In 2001, 28% of people 25 and older, in the state held a bachelors degree.
As fans of Garrison Keillor’s, “A Prairie Home Companion” are well aware, all Minnesotans regard themselves as, “above average”. The state is proud of its Midwestern work ethic. The percentage of all workers in Minnesota working more than 40 hours per week is the 11th highest in the nation.
Likewise, fully 89% of Minnesotans have earned a high-school diploma, the third highest in the nation.