Minnesota Economic Overview
INTRODUCTION World Famous Mayo Clinic in Rochester With 68 state parks and 55 state forests, Minnesota is a leading destination for outdoor tourism. The state has a robust economy, with a gross state product (GSP) of some $262 billion a year, the 17th largest among the states. Thirty-three of the top thousand publicly traded companies call Minnesota home, representing the full diversity of the state’s economy. It is also home to key private companies, including Cargill, the largest privately owned company in the United States. ECONOMIC HISTORY Originally a fur trading outpost, Minnesota did not really start to grow economically until the middle of the 19th century. The Minnesota Territory had barely 6,000 inhabitants in 1850, but as the lumber industry developed and treaties with Native American tribes opened up more land for settlement, more pioneers came to settle. Minnesota’s abundant natural resources, including furs, wheat, lumber, and high-grade iron ore, were the basis of its early economy. In 1862, Minnesota's first railroad linked the cities of St. Anthony and St. Paul. Five years later, the Twin Cities were connected with Chicago by rail, and tracks soon crossed the prairie. The railroads brought settlers from the East and transported Minnesota produce, spurring the growth of large-scale commercial agriculture. Wheat was the biggest crop, with exports growing from two million bushels in 1860 to 95 million bushels in 1890. St. Anthony became the leading flour-milling center of the nation, with 27 mills producing more than two million barrels of flour annually by 1880. Minneapolis Grain Exchange Most immigrants of the 1860s and 1870s settled on the rich farmland of the north and west. After 1880 the cities and industries grew more rapidly following the discovery of iron ore. The railroad and waterways also helped support the growth of commercial iron ore production. By 1900, Duluth had become a major Great Lakes port, and by the eve of World War I, Minnesota had become a national iron-mining center. Eventually, these natural resources began to diminish and new opportunities had to be found. Most of the high-quality timber had been cut by the start of the 20th century, so Minnesotans turned to lower-quality wood products, such as wood pulp, as a commercial alternative. Similarly, production of high-grade iron ore began to decline as that resource dwindled, so new technologies were developed to mine the lower-grade version, taconite. Livestock and dairy production increased in the early 20th century, and the meatpacking and packaged foods industries developed. Prior to World War II, Minnesota suffered from a drought that struck much of the nation and spurred the continued growth of this state's manufacturing sector through the postwar period. In 1948, for the first time, the dollar value of the state’s manufactured goods surpassed farm revenue. Minnesota’s evolution to a chiefly urban state occurred in 1950, when the state's city population exceeded its rural population for the first time. The state's postwar prosperity continued with increased demand for its produce as well as the manufactured products of defense and other industries. After the state’s supply of high-grade iron ore ran out in the 1970s, more than $1 billion was invested in plants to process taconite. In the 1990s, Minnesota’s economic diversification continued with the growth of service industries, such as finance, insurance, and real estate. Today Minnesota is a leader in wind turbine farms and health technology development, while continuing to support its more traditional industries, such as agriculture and food manufacturing. AGRICULTURE Harvesting Wheat With a little over half its land used as farmland, Minnesota ranks fifth among the states in agricultural production, at an annual worth of some $10 billion. Agribusiness is the state’s single largest employer, supporting roughly one fourth of the workforce. Total agricultural revenue is split evenly between livestock and crop production. Minnesota is the nation’s highest producer of sugar beets (producing some 35 percent of the country's yield, worth about $500 million), as well as oats, sweet corn, and green peas. Other key crops include flaxseed, spring wheat, soybeans, sunflowers, hay, and barley. BANKING AND FINANCIAL SERVICES Minnesota has almost 500 insured banks with total assets exceeding $100 billion. Most of the banks are state-chartered and rely heavily on commercial real estate loans. Banking employs about 2.5 percent of the Minnesota workforce, which mirrors the national average. Securities and investment firms in Minnesota employ a slightly higher percentage than the national average and account for 0.9 percent of the Minnesota workforce. Wages in the banking and financial services are about 80 percent higher than the statewide average wage. COMMUNICATIONS Local Radio Station KROC Minnesota is ranked the 15th largest media market in the United States. The Twin Cities remains one of the few metropolitan areas that still has more than one major daily newspaper. It also has The Minnesota Daily, the largest student-run newspaper in the nation. In addition, there is a broad range of weekly papers and Web sites providing Minnesota-centric news content. There are more than 50 television channels and two of the largest public radio networks in the nation; one of these, Minnesota Public Radio (MPR), has the largest audience of any regional public radio network in the U.S. CONSTRUCTION Due to the recent worldwide economic crisis, Minnesota lost some 18,000 commercial and residential construction jobs from June 2008 to June 2009, representing 16.2 percent of the employment in that $2.6 billion industry. Minnesota is expected to receive about $4 billion from the American Recovery and Reinvestment Act by 2012, which is to be used to create or preserve thousands of construction jobs in the state, particularly those involving public infrastructure. New construction will include replacing bridges, repaving roads, and rehabilitating regional airport runways. Perhaps the greatest potential for new construction in Minnesota is in the wind energy sector. Already a nationwide leader in wind energy production, expectations are that the demand for construction of wind turbines will continue to grow. EDUCATION University of St. Thomas in St. Paul Minnesota has one of the most literate populations of all the U.S. states, with 92 percent of its inhabitants graduating from high school and nearly 30 percent earning bachelor's degrees. The state spends more than $7,300 per pupil in the public school system, with total state expenditures of $8.4 billion and revenue of nearly $8.3 billion. Some 270,000 Minnesotans are enrolled in college or graduate school at 113 degree-granting institutions. The state university system has campuses in six cities; there are 18 two-year colleges and a network of 33 vocational-technical institutes. Founded in 1851, the University of Minnesota has campuses in four cities. There are more than 20 private colleges, six of which rank among the top 100 liberal arts colleges in the nation. ENERGY Minnesota has no coal, oil, or natural gas but operates oil refineries that process crude oil imported from Canada. It is a major producer of ethanol, which the state has mandated to be increasingly mixed with gasoline. Corn-based fuel is also used in production plants. In addition to bioenergy, Minnesota has two nuclear power plants and ranks fifth nationally in wind power generation. By 2020 the state expects to generate 25 percent of its energy needs from wind turbines. In the meantime, about two-thirds of the state's electricity is still produced by coal-fired power plants. Minnesota Energy Resources gives rebates to customers who install high-efficiency natural gas appliances and turn down their thermostats. The state also has a potential energy source in seven million acres of peat lands, its only known fossil fuel resource. ENTERTAINMENT Minnesota’s varied geography, abundance of well-preserved period buildings, and film industry professionals make it attractive for film production. The state actively encourages the production of feature films, commercials, network television and Internet programs, documentaries, and music videos through its Snowbate incentive program, which offers rebates of 15 percent to 20 percent on Minnesota expenditures. Minnesota's production infrastructure includes location services and crew and equipment referrals. Film production generates about $10 million in annual revenue for the state. INSURANCE Minnesotans hold a total of $378.2 billion in life insurance policies and pay annual premiums totaling $6.5 billion. Minnesotans in the insurance industry rank fifth nationwide in terms of their salaries and slightly more of them work in the insurance industry than the national average. There are 54 property and casualty insurance companies in the state and 18 life and health insurance companies. The largest are Blue Cross, Blue Shield, Medica, and HealthPartners. Overall, the insurance industry contributes $7.3 billion annually to Minnesota’s economy. MANUFACTURING Located mostly in the Twin Cities area, Minnesota’s manufacturers produce goods worth more than $80 billion a year. General Mills, headquartered in Minneapolis, is one of the world’s largest producers of packaged consumer foods. Another of Minnesota’s 13 Fortune 500 enterprises is the 3M Company, formerly known for its mining origins as Minnesota Mining and Manufacturing. 3M produces a broad range of health care products, graphic display technologies, electronic communications and data transmission products, and office products. The manufacturing industry accounts for roughly 12 percent of Minnesota’s total payroll. MINING AND EXTRACTION Mining has been a key Minnesota industry since the late 19th century. Once producing one-fourth of the world’s iron ore, Minnesota’s reserves of high-grade ore eventually ran dry in the 1970s. Technological advancements in the middle of the 20th century enabled the mining and processing of abundant resources of taconite, a lower-grade iron ore. Today Minnesota leads the nation in taconite production and accounts for 70 percent of all domestic shipments to steel manufacturers, with an annual value of $1.5 billion. The total value of all nonfuel mineral production in Minnesota is some $1.9 billion. In addition to iron ore, other minerals extracted include granite, limestone, sand, and gravel. Minnesota ranks 7th among the states in terms of the value of nonfuel mineral production. The mining industry generates some $5.1 billion for the Minnesota economy. NONPROFIT Some 10 percent of the Minnesota workforce is employed by a nonprofit, which is higher than the national average of seven percent. Total industry payroll is $10.8 billion annually. While the number of organizations has declined in recent years, the number of employees and services has grown, due to mergers attributed to a decline in governmental funding. Despite this shrinkage of public money, better-run nonprofits have been able to expand their range of services, including those for the elderly, for child and adult education, for crime victim assistance, for environmental groups, and for arts organizations. Total revenues for nonprofits exceed $30 billion, with expenditures of almost $29 billion. The nonprofit sector is expected to grow in the state—the University of Minnesota has even recently added a nonprofit management major to its School of Management to meet the needs of this sector. RETAIL Mall of America Minnesota is home to the world’s second largest mall, the Mall of America. The mall receives over 40 million annual visitors—almost eight times the entire population of the state—and employs more than 12,000 workers. Retail workers account for 10.8 percent of Minnesota’s total workforce, earning on average $24,000 a year. Sales by the state’s 30,000 retail establishments total more than $49 billion. Eating and drinking establishments constitute 28 percent of retail establishments, followed by auto dealers at 14 percent and food stores at 9 percent. TECHNOLOGY Technology is not one of Minnesota’s leading industries and is expanding beyond computer and electronics manufacturing into computer systems design and related services. At $75,200 per year, the average wage for a high-tech position is 68 percent higher than Minnesota’s average overall private-sector wage. Minnesota ranks 17th nationwide in total high-tech payroll ($9.7 billion), number of high-tech companies (7,400), and number of high-tech workers (129,000). The state is looking to grow its technology industry, focusing on education and workforce development, as well as expanding its broadband architecture to reach its large rural population. TRANSPORTATION The Great Lakes Harbor of Duluth Minnesota’s transportation hub is the Twin Cities area, from where its more than 130,000 miles of highways and roads radiate. The state also has a sophisticated rail and shipping network, 380 airports and airfields, 74 seaplane bases, and 52 heliports. The state's largest airport is Minneapolis-St. Paul International (MSP), which handles more than 32 million passengers a year, ranking it 16th in the United States and 30th in the world. MSP provides more than 150,000 jobs and pays some $6 billion in salaries. It generates $10.7 billion in business revenue, $1.3 billion in retail purchases, and pays $626 million in state and local taxes. The Great Lakes harbor of Duluth is one of the busiest ports in the country, covering more than 40 miles of waterfront. TRAVEL AND TOURISM Enjoying the Great Outdoors Minnesota’s primary tourist attractions are found in the outdoors, with its parks, lakes, ski trails, wildlife refuges, and boating. Minnesota is also home to a number of western frontier theme parks and the U.S. Hockey Hall of Fame. A little over half of the tourist activity comes from Minnesotans touring their own state, although international tourism to Minnesota is growing, with some 39 million visitors annually. In addition to outdoor activities, shopping is also a major draw of Minnesota, particularly due to the Mall of America (see the Retail section above), which generates nearly 15 percent of the state’s sales tax. Travel and tourism account for $11 billion annually in state revenue and 10 percent of the state’s total employment, with a payroll of almost $4 billion. SPECIAL INDUSTRIES Ice Fishing in Minnesota Minnesota’s sports fishing industry generates some $1.6 billion in state revenue each year. Sport fishermen catch more than 102 million pounds of fish annually, compared to 4.5 million pounds harvested by their commercial counterparts. One reason for this difference is that Minnesota fishermen pursue their quarry all year round: ice fishing is one of the top winter sports in the state. The World's Original Ice Fishing Contest, begun in 1947, is one of a dozen Minnesota ice-fishing competitions that take place in January and February. These popular winter events award prizes of up to $150,000.

Minnesota Economic Overview

INTRODUCTION

World Famous Mayo Clinic in Rochester

With 68 state parks and 55 state forests, Minnesota is a leading destination for outdoor tourism. The state has a robust economy, with a gross state product (GSP) of some $262 billion a year, the 17th largest among the states. Thirty-three of the top thousand publicly traded companies call Minnesota home, representing the full diversity of the state’s economy. It is also home to key private companies, including Cargill, the largest privately owned company in the United States.

ECONOMIC HISTORY

Originally a fur trading outpost, Minnesota did not really start to grow economically until the middle of the 19th century. The Minnesota Territory had barely 6,000 inhabitants in 1850, but as the lumber industry developed and treaties with Native American tribes opened up more land for settlement, more pioneers came to settle.

Minnesota’s abundant natural resources, including furs, wheat, lumber, and high-grade iron ore, were the basis of its early economy. In 1862, Minnesota's first railroad linked the cities of St. Anthony and St. Paul. Five years later, the Twin Cities were connected with Chicago by rail, and tracks soon crossed the prairie. The railroads brought settlers from the East and transported Minnesota produce, spurring the growth of large-scale commercial agriculture.

Wheat was the biggest crop, with exports growing from two million bushels in 1860 to 95 million bushels in 1890. St. Anthony became the leading flour-milling center of the nation, with 27 mills producing more than two million barrels of flour annually by 1880.

Minneapolis Grain Exchange

Most immigrants of the 1860s and 1870s settled on the rich farmland of the north and west. After 1880 the cities and industries grew more rapidly following the discovery of iron ore. The railroad and waterways also helped support the growth of commercial iron ore production. By 1900, Duluth had become a major Great Lakes port, and by the eve of World War I, Minnesota had become a national iron-mining center.

Eventually, these natural resources began to diminish and new opportunities had to be found. Most of the high-quality timber had been cut by the start of the 20th century, so Minnesotans turned to lower-quality wood products, such as wood pulp, as a commercial alternative. Similarly, production of high-grade iron ore began to decline as that resource dwindled, so new technologies were developed to mine the lower-grade version, taconite.

Livestock and dairy production increased in the early 20th century, and the meatpacking and packaged foods industries developed. Prior to World War II, Minnesota suffered from a drought that struck much of the nation and spurred the continued growth of this state's manufacturing sector through the postwar period. In 1948, for the first time, the dollar value of the state’s manufactured goods surpassed farm revenue.

Minnesota’s evolution to a chiefly urban state occurred in 1950, when the state's city population exceeded its rural population for the first time. The state's postwar prosperity continued with increased demand for its produce as well as the manufactured products of defense and other industries. After the state’s supply of high-grade iron ore ran out in the 1970s, more than $1 billion was invested in plants to process taconite.

In the 1990s, Minnesota’s economic diversification continued with the growth of service industries, such as finance, insurance, and real estate. Today Minnesota is a leader in wind turbine farms and health technology development, while continuing to support its more traditional industries, such as agriculture and food manufacturing.

AGRICULTURE

Harvesting Wheat

With a little over half its land used as farmland, Minnesota ranks fifth among the states in agricultural production, at an annual worth of some $10 billion. Agribusiness is the state’s single largest employer, supporting roughly one fourth of the workforce. Total agricultural revenue is split evenly between livestock and crop production. Minnesota is the nation’s highest producer of sugar beets (producing some 35 percent of the country's yield, worth about $500 million), as well as oats, sweet corn, and green peas. Other key crops include flaxseed, spring wheat, soybeans, sunflowers, hay, and barley.

BANKING AND FINANCIAL SERVICES

Minnesota has almost 500 insured banks with total assets exceeding $100 billion. Most of the banks are state-chartered and rely heavily on commercial real estate loans. Banking employs about 2.5 percent of the Minnesota workforce, which mirrors the national average. Securities and investment firms in Minnesota employ a slightly higher percentage than the national average and account for 0.9 percent of the Minnesota workforce. Wages in the banking and financial services are about 80 percent higher than the statewide average wage.

COMMUNICATIONS

Local Radio Station KROC

Minnesota is ranked the 15th largest media market in the United States. The Twin Cities remains one of the few metropolitan areas that still has more than one major daily newspaper. It also has The Minnesota Daily, the largest student-run newspaper in the nation. In addition, there is a broad range of weekly papers and Web sites providing Minnesota-centric news content. There are more than 50 television channels and two of the largest public radio networks in the nation; one of these, Minnesota Public Radio (MPR), has the largest audience of any regional public radio network in the U.S.

CONSTRUCTION

Due to the recent worldwide economic crisis, Minnesota lost some 18,000 commercial and residential construction jobs from June 2008 to June 2009, representing 16.2 percent of the employment in that $2.6 billion industry. Minnesota is expected to receive about $4 billion from the American Recovery and Reinvestment Act by 2012, which is to be used to create or preserve thousands of construction jobs in the state, particularly those involving public infrastructure.

New construction will include replacing bridges, repaving roads, and rehabilitating regional airport runways. Perhaps the greatest potential for new construction in Minnesota is in the wind energy sector. Already a nationwide leader in wind energy production, expectations are that the demand for construction of wind turbines will continue to grow.

EDUCATION

University of St. Thomas in St. Paul

Minnesota has one of the most literate populations of all the U.S. states, with 92 percent of its inhabitants graduating from high school and nearly 30 percent earning bachelor's degrees. The state spends more than $7,300 per pupil in the public school system, with total state expenditures of $8.4 billion and revenue of nearly $8.3 billion.

Some 270,000 Minnesotans are enrolled in college or graduate school at 113 degree-granting institutions. The state university system has campuses in six cities; there are 18 two-year colleges and a network of 33 vocational-technical institutes. Founded in 1851, the University of Minnesota has campuses in four cities. There are more than 20 private colleges, six of which rank among the top 100 liberal arts colleges in the nation.

ENERGY

Minnesota has no coal, oil, or natural gas but operates oil refineries that process crude oil imported from Canada. It is a major producer of ethanol, which the state has mandated to be increasingly mixed with gasoline. Corn-based fuel is also used in production plants. In addition to bioenergy, Minnesota has two nuclear power plants and ranks fifth nationally in wind power generation. By 2020 the state expects to generate 25 percent of its energy needs from wind turbines.

In the meantime, about two-thirds of the state's electricity is still produced by coal-fired power plants. Minnesota Energy Resources gives rebates to customers who install high-efficiency natural gas appliances and turn down their thermostats. The state also has a potential energy source in seven million acres of peat lands, its only known fossil fuel resource.

ENTERTAINMENT

Minnesota’s varied geography, abundance of well-preserved period buildings, and film industry professionals make it attractive for film production. The state actively encourages the production of feature films, commercials, network television and Internet programs, documentaries, and music videos through its Snowbate incentive program, which offers rebates of 15 percent to 20 percent on Minnesota expenditures. Minnesota's production infrastructure includes location services and crew and equipment referrals. Film production generates about $10 million in annual revenue for the state.

INSURANCE

Minnesotans hold a total of $378.2 billion in life insurance policies and pay annual premiums totaling $6.5 billion. Minnesotans in the insurance industry rank fifth nationwide in terms of their salaries and slightly more of them work in the insurance industry than the national average. There are 54 property and casualty insurance companies in the state and 18 life and health insurance companies. The largest are Blue Cross, Blue Shield, Medica, and HealthPartners. Overall, the insurance industry contributes $7.3 billion annually to Minnesota’s economy.

MANUFACTURING

Located mostly in the Twin Cities area, Minnesota’s manufacturers produce goods worth more than $80 billion a year. General Mills, headquartered in Minneapolis, is one of the world’s largest producers of packaged consumer foods. Another of Minnesota’s 13 Fortune 500 enterprises is the 3M Company, formerly known for its mining origins as Minnesota Mining and Manufacturing. 3M produces a broad range of health care products, graphic display technologies, electronic communications and data transmission products, and office products. The manufacturing industry accounts for roughly 12 percent of Minnesota’s total payroll.

MINING AND EXTRACTION

Mining has been a key Minnesota industry since the late 19th century. Once producing one-fourth of the world’s iron ore, Minnesota’s reserves of high-grade ore eventually ran dry in the 1970s. Technological advancements in the middle of the 20th century enabled the mining and processing of abundant resources of taconite, a lower-grade iron ore. Today Minnesota leads the nation in taconite production and accounts for 70 percent of all domestic shipments to steel manufacturers, with an annual value of $1.5 billion.

The total value of all nonfuel mineral production in Minnesota is some $1.9 billion. In addition to iron ore, other minerals extracted include granite, limestone, sand, and gravel. Minnesota ranks 7th among the states in terms of the value of nonfuel mineral production. The mining industry generates some $5.1 billion for the Minnesota economy.

NONPROFIT

Some 10 percent of the Minnesota workforce is employed by a nonprofit, which is higher than the national average of seven percent. Total industry payroll is $10.8 billion annually. While the number of organizations has declined in recent years, the number of employees and services has grown, due to mergers attributed to a decline in governmental funding. Despite this shrinkage of public money, better-run nonprofits have been able to expand their range of services, including those for the elderly, for child and adult education, for crime victim assistance, for environmental groups, and for arts organizations.

Total revenues for nonprofits exceed $30 billion, with expenditures of almost $29 billion. The nonprofit sector is expected to grow in the state—the University of Minnesota has even recently added a nonprofit management major to its School of Management to meet the needs of this sector.

RETAIL

Mall of America

Minnesota is home to the world’s second largest mall, the Mall of America. The mall receives over 40 million annual visitors—almost eight times the entire population of the state—and employs more than 12,000 workers. Retail workers account for 10.8 percent of Minnesota’s total workforce, earning on average $24,000 a year. Sales by the state’s 30,000 retail establishments total more than $49 billion. Eating and drinking establishments constitute 28 percent of retail establishments, followed by auto dealers at 14 percent and food stores at 9 percent.

TECHNOLOGY

Technology is not one of Minnesota’s leading industries and is expanding beyond computer and electronics manufacturing into computer systems design and related services. At $75,200 per year, the average wage for a high-tech position is 68 percent higher than Minnesota’s average overall private-sector wage. Minnesota ranks 17th nationwide in total high-tech payroll ($9.7 billion), number of high-tech companies (7,400), and number of high-tech workers (129,000). The state is looking to grow its technology industry, focusing on education and workforce development, as well as expanding its broadband architecture to reach its large rural population.

TRANSPORTATION

The Great Lakes Harbor of Duluth

Minnesota’s transportation hub is the Twin Cities area, from where its more than 130,000 miles of highways and roads radiate. The state also has a sophisticated rail and shipping network, 380 airports and airfields, 74 seaplane bases, and 52 heliports.

The state's largest airport is Minneapolis-St. Paul International (MSP), which handles more than 32 million passengers a year, ranking it 16th in the United States and 30th in the world. MSP provides more than 150,000 jobs and pays some $6 billion in salaries. It generates $10.7 billion in business revenue, $1.3 billion in retail purchases, and pays $626 million in state and local taxes. The Great Lakes harbor of Duluth is one of the busiest ports in the country, covering more than 40 miles of waterfront.

TRAVEL AND TOURISM

Enjoying the Great Outdoors

Minnesota’s primary tourist attractions are found in the outdoors, with its parks, lakes, ski trails, wildlife refuges, and boating. Minnesota is also home to a number of western frontier theme parks and the U.S. Hockey Hall of Fame. A little over half of the tourist activity comes from Minnesotans touring their own state, although international tourism to Minnesota is growing, with some 39 million visitors annually. In addition to outdoor activities, shopping is also a major draw of Minnesota, particularly due to the Mall of America (see the Retail section above), which generates nearly 15 percent of the state’s sales tax. Travel and tourism account for $11 billion annually in state revenue and 10 percent of the state’s total employment, with a payroll of almost $4 billion.

SPECIAL INDUSTRIES

Ice Fishing in Minnesota

Minnesota’s sports fishing industry generates some $1.6 billion in state revenue each year. Sport fishermen catch more than 102 million pounds of fish annually, compared to 4.5 million pounds harvested by their commercial counterparts. One reason for this difference is that Minnesota fishermen pursue their quarry all year round: ice fishing is one of the top winter sports in the state. The World's Original Ice Fishing Contest, begun in 1947, is one of a dozen Minnesota ice-fishing competitions that take place in January and February. These popular winter events award prizes of up to $150,000.

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12 Şubat 2013 Salı