Grow Minnesota!

…”Eyes & Ears” on the Development & Growth of Minnesota’s Economy

2011 Statewide Results

January 2012

What Is Grow MN!?

• Private sector economic development……strategic links to public sector

• MN Chamber sponsored

• 59 local chamber partners

• 3 parts to the program: – Business retention– Business assistance– Business expansion

Grow Minnesota! Visit – 3 Parts

• Say, “Thank you!”

• Ask, “How can we help your business?”

• Ask, “How to make business environment better?”

Grow MN! 2010-2011 Results

• 990 one-on-one business retention visits

• 23% are revisits

• 122 firms assisted, affecting 4,900 jobs……15 expansions

• BusinessConnection:– 940 on line searches completed– 50 email questions answered

Sales & Profitability -- Last 2 Years

Sales (2010 – 2011)

 Minnesota

(%)

Increased 48.5%

Been Relatively Stable 26.3%

Decreased 20.4%

Fluctuated Widely 4.8%

Profitability (2010 – 2011)

 Minnesota

(%)

Increased 35.9%

Been Relatively Stable 34.9%

Decreased 24.6%

Fluctuated Widely 4.6%

N=582 N=541

Businesses Creating New Products in the Last Two Years

Fastest Growing Markets

N=592

What is your company's fastest growing market?

  Minnesota

Local 40%

U.S. (general) 18%

Minnesota 16%

Midwest 14%

International 10%

None are growing 2%

Expected Job Growth, Next Year

2009-10 N = 600

2010-11 N = 488

Rating MN’s Business Climate – ALL Grow MN! Visits

• What’s working:– Recreation– K12 education– Energy reliability

• What’s not:– Environmental regulations– State taxes– Health care

Businesses with Expansion Plans…

…See Things Differently!

Expansions – Next Two Years

Current Community 66%

In MN 15%

Another State 9%

Another Country 2%

Don’t Know 8%

• 2010: 147 (25%)

• 2011: 198 (29%)

• Where: 2011

Why Not MN?

• Markets

• Uncertainty, e.g. permitting, energy $s

• Workforce

Recent Issues Recruiting Employees?(2010-2011 Results)

N=667

Key Workers – Still in Short Supply(2010-2011 Results)

2012 Job Creation Agenda: What Do Grow MN! Visits

Suggest?

Policy Recommendations

Grow MN! MN Chamber

Permitting – More reform needed Reform Step 3: more certainty!

Health care – Can’t control cost Exchange Up & Running!

Budget – More service, not $s Adopt “Outcome Based Budgeting”

Workforce – More wkrs, right skillsEffective teacher/principal evaluations

Eliminate “last in, first out” re hiring

Energy – Future $$s unpredictable Cost-based electric rates

Questions?