2012 Business Barometer2012 Business Barometer:    Is Growth on the Horizon?
2012 Business Barometer                        Methodology Co-sponsored by MN Chamber & Himle Rapp since 2004 Conducted ...
2012 Business Barometer General Economic Indicators
2012 Business BarometerProfitability Reports Remain Weak
2012 Business BarometerProfitability Reports: Trendline          All Employers
2012 Business BarometerSome Optimism About the Economy Has Returned
2012 Business Barometer    Optimism About Economy: Trendline                                 All EmployersNOTE: Chamber me...
2012 Business BarometerJob Picture May Be Turning the Corner
2012 Business Barometer                Confidence in Minnesota’s Economic                     Future (10 Yrs) is Still Hig...
2012 Business Barometer     Compared to Other States, Minnesotais Seen as Having a Favorable Business Climate
2012 Business BarometerFavorable Business Climate: Trendline                       All Employers53% of Chamber members agr...
2012 Business BarometerEncouraging a Pro-Growth Economy
2012 Business BarometerEmployers’ Memo for St. Paul: We Need a Better EffortRole for Governor and Legislature             ...
2012 Business Barometer                              Taxes Remain the Primary                               Barrier to Job...
2012 Business Barometer           Modest Differences in Opinions on               Barriers to Job Creation                ...
2012 Business Barometer               Impact of Stability/Predictability                 of Government Regulations      Im...
2012 Business Barometer          Tax Burden
2012 Business BarometerTax Burden Continues to Grow Compared to Five Years Ago                                    53% say ...
Actual Increase in Statewide Business Property Tax        2012 Business Barometer
Rate2012 Business Barometerfor Employees     of Tax Increase vs. Cost                 2007 - 2011     State & Local       ...
2012 Business Barometer                Goals of Tax ReformHighly Rated        Modestly Rated         Poorly Rated  Simplif...
2012 Business BarometerImpacting Future Investment Decisions: Tax Reform                                         Make Very...
2012 Business Barometer         Health Care
2012 Business Barometer       Use of Health Insurance as a Benefit                      All Employers2005    2006   2007  ...
2012 Business Barometer    Differences in Willingness to Cover Employees Continues
2012 Business BarometerFor Those Who Offer Coverage, Costs Are Increasing                                         Only 3% ...
2012 Business BarometerAs Costs Increase, What is the Reaction?
2012 Business BarometerEmployers Believe Responsibility for Coverage Falls  With Individuals, Not Business or Government  ...
2012 Business Barometer          Workforce
The Minnesota Jobs OutlookBetween 2008 and 2018:Jobs requiring postsecondary education will growby 152,000 jobs902,000 j...
The Minnesota Jobs OutlookSource: Georgetown Center on Education and Workforce “Help Wanted: Protecting Jobs and Education...
2012 Business Barometer           Workforce Availability and Training    Plenty ofSkilled Workers                         ...
Minnesota job vacancies and unemployment claims by occupation                                                             ...
2012 Business BarometerAre Schools Preparing Workers In Life Skill Sets?      Four point scale with percent saying “Excell...
2012 Business Barometer           More Believe MNK-12 Schools Better than Rest of Country               All Employers     ...
2012 Business BarometerStrong Support for Tenure Reform
2012 Business Barometer        Energy Policy
2012 Business Barometer Concerns About Affordability   and Reliability Continue          All Employers
2012 Business Barometer            Support Lacking for Full Transition From             Cross-Subsidization of Electric Ra...
2012 Business Barometer         States with Lower Electric Rates         Than Minnesota by Sector, 2010Commercial         ...
2012 Business Barometer     Role for Government
2012 Business Barometer      Most Important Issue For Legislature           and Governor to Address               All Empl...
2012 Business Barometer           Most Important Issue For Legislature                and Governor to Address             ...
2012 Business Barometer     Role of Business Community in Political Affairs
2012 Business Barometer      Does Business Community Play a        Large Role in State Elections                          ...
2012 Business Barometer                        Summary Strong loyalty to Minnesota Recession hangover remains   – Profit...
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Minnesota Business Barometer Results

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Are you certain you know how Minnesota employers feel about the most important issues facing the state? For the 9th consecutive
year, the Minnesota Chamber of Commerce has partnered with Himle Rapp & Company to conduct the Business Barometer, a comprehensive look into the opinions and concerns of Minnesota business owners and managers. Join us to learn what business is saying and don't be shy about asking for the stories behind the survey results.

Todd Rapp, president, Himle Rapp & Company

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Minnesota Business Barometer Results

  1. 1. 2012 Business Barometer2012 Business Barometer: Is Growth on the Horizon?
  2. 2. 2012 Business Barometer Methodology Co-sponsored by MN Chamber & Himle Rapp since 2004 Conducted July 16 - August 8, 2012 350 randomly selected owners & managers – Balloon 50+ employees to 100 – Balloon Chamber members to 100 Sample reflects Minnesota’s business community – Size – Location – Business category — retail, service, manufacturing Margin of error + 5.3 percent
  3. 3. 2012 Business Barometer General Economic Indicators
  4. 4. 2012 Business BarometerProfitability Reports Remain Weak
  5. 5. 2012 Business BarometerProfitability Reports: Trendline All Employers
  6. 6. 2012 Business BarometerSome Optimism About the Economy Has Returned
  7. 7. 2012 Business Barometer Optimism About Economy: Trendline All EmployersNOTE: Chamber members are somewhat more optimistic than the general business population
  8. 8. 2012 Business BarometerJob Picture May Be Turning the Corner
  9. 9. 2012 Business Barometer Confidence in Minnesota’s Economic Future (10 Yrs) is Still HighAll Employers 2009 All Employers 2010 All Employers 2011 All Employers 2012
  10. 10. 2012 Business Barometer Compared to Other States, Minnesotais Seen as Having a Favorable Business Climate
  11. 11. 2012 Business BarometerFavorable Business Climate: Trendline All Employers53% of Chamber members agree Minnesota has a good business climate
  12. 12. 2012 Business BarometerEncouraging a Pro-Growth Economy
  13. 13. 2012 Business BarometerEmployers’ Memo for St. Paul: We Need a Better EffortRole for Governor and Legislature Success in That Rolein Determining Business Climate 35% 20% Somewhat Important Positive 33% Negative 19% Not Very/ No Role 45% 1% 47%Very Important Other Mixed (Vol) MN Chamber members are more likely to feel negative about government’s performance
  14. 14. 2012 Business Barometer Taxes Remain the Primary Barrier to Job Creation All Employers — Top Two Choices 2008 2009 2010 2011 2012 Taxes 63% Taxes 72% Taxes 64% Taxes 74% Taxes 69%Lower Costs Lower Costs Cost of Gov’t Cost of in Other 45% in Other 31% Health Care 29% Regulations 38% Health Care 34% Countries Countries Lower Costs Trained Cost of Trained Trained Workers 18% Health Care 22% Workers 25% in Other 23% Workers 33% Countries Lower Costs Cost of Trained Lack Gov’tHealth Care 18% Workers 18% in Other 18% Capital 19% Regulations 24% Countries
  15. 15. 2012 Business Barometer Modest Differences in Opinions on Barriers to Job Creation Top Two Choices All Large Chamber Employers Employers Members High Taxes 69% 71% 80%Cost of Health Care 34% 43% 23% Trained Workers 33% 34% 24% Gov’t Regulations 24% 15% 23% Lack Capital 14% 11% 23%Foreign Competition 4% 4% 16%
  16. 16. 2012 Business Barometer Impact of Stability/Predictability of Government Regulations Important Factor Most Important in Decisions on Investment Change We Can Make 18% 69% Strong Yes 2% The Right 29% DK/R 2% Decisions Quicker Strong No Decisions 11% No67%Yes 2% DK/R
  17. 17. 2012 Business Barometer Tax Burden
  18. 18. 2012 Business BarometerTax Burden Continues to Grow Compared to Five Years Ago 53% say locals want new revenue 61% report business 27% say we are property replacing LGA taxes increasing 15% say change in value
  19. 19. Actual Increase in Statewide Business Property Tax 2012 Business Barometer
  20. 20. Rate2012 Business Barometerfor Employees of Tax Increase vs. Cost 2007 - 2011 State & Local Employee Business Taxes Costs
  21. 21. 2012 Business Barometer Goals of Tax ReformHighly Rated Modestly Rated Poorly Rated Simplify Reduce Dependency Reduce Business on Property Taxes Taxes By Increasing Income TaxesTax Voluntary Behavior Progressive Predictable RevenuesTax Activity,Not Income
  22. 22. 2012 Business BarometerImpacting Future Investment Decisions: Tax Reform Make Very No Significant Impact Impact Immediate Sales Tax Exemption on Capital Equipment 46% 14% Eliminate Statewide Business Property Tax 43% 13% Eliminate Sales Tax on Tech, Computers and Software 43% 21% Reduce State’s Income Taxes 35% 17% Reduce Tax on Business Income Flowing Through Personal Returns 32% 15% Repeal the Corporate Income Tax 29% 26%
  23. 23. 2012 Business Barometer Health Care
  24. 24. 2012 Business Barometer Use of Health Insurance as a Benefit All Employers2005 2006 2007 2008 2009 2010 2011 2012
  25. 25. 2012 Business Barometer Differences in Willingness to Cover Employees Continues
  26. 26. 2012 Business BarometerFor Those Who Offer Coverage, Costs Are Increasing Only 3% would 47% believe stop providing costs will coverage inincrease due five years if to federal costs keep reform increasing at current rate
  27. 27. 2012 Business BarometerAs Costs Increase, What is the Reaction?
  28. 28. 2012 Business BarometerEmployers Believe Responsibility for Coverage Falls With Individuals, Not Business or Government 38% or more likely to offer a lump sum benefit because of insurance exchange Chamber members are even more certain this is an individual responsibility
  29. 29. 2012 Business Barometer Workforce
  30. 30. The Minnesota Jobs OutlookBetween 2008 and 2018:Jobs requiring postsecondary education will growby 152,000 jobs902,000 job vacancies from new jobs and jobopenings due to retirement620,000 job vacancies will require postsecondarytraining227,000 job vacancies for high school graduates55,000 job vacancies for high school drop outs Source: Georgetown Center on Education and Workforce “Help Wanted: Protecting Jobs and Education Requirements through 2018” (2010) http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf
  31. 31. The Minnesota Jobs OutlookSource: Georgetown Center on Education and Workforce “Help Wanted: Protecting Jobs and Education Requirements through2018” (2010) http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf
  32. 32. 2012 Business Barometer Workforce Availability and Training Plenty ofSkilled Workers Enough in My Industry Workers, Need the Right Skills Good Training, Not Enough Workers Number of Workers and Training DK/R are Problem
  33. 33. Minnesota job vacancies and unemployment claims by occupation Occupational Group (in order of least unemployment) Vacancies1 1 - Life, Physical, and Social Science Occupations Excess 10,000 2 - Protective Service Occupations demand Skills mismatch 9,000 3 - Legal Occupations 4 - Community and Social Service Occupations 8,000 5 - Architecture and Engineering Occupations 20 6 - Arts, Design, Entertainment, Sports, and Media Occ 7,000 7 - Computer and Mathematical Occupations 19 6,000 8 - Personal Care and Service Occupations 9 - Healthcare Practitioners and Technical Occupations 5,000 10 - Farming, Fishing, and Forestry Occupations 18 4,000 11 - Education, Training, and Library Occupations 9 15 12 - Installation, Maintenance, and Repair Occupations 3,000 21 8 17 13 - Building and Grounds Cleaning and Maintenance Occu 7 14 2,000 11 16 14 - Business and Financial Operations Occupations 4 5 12 15 - Healthcare Support Occupations 1,000 1 6 13 22 16 - Management Occupations 23 10 17 - Transportation and Material Moving Occupations 0 18 - Food Preparation and Serving Related Occupations 0 2,000 4,000 6,000 8,000 10,000 28,000 19 - Office and Administrative Support Occupations Unemployment claims2 20 - Sales and Related Occupations Supply Excess meets 21 - Production Occupations supply demand 22 - Construction and Extraction Occupations1 Vacancies by occupational group (Standard Occupational Classification) as of fourth quarter 20112 Unemployment claims by occupational group (Standard Occupational Classification) as of December 2011SOURCE: Minnesota Department of Employment and Economic Development 33
  34. 34. 2012 Business BarometerAre Schools Preparing Workers In Life Skill Sets? Four point scale with percent saying “Excellent” highlighted 3.18 3.02 2.94 2.85 2.85 2.78
  35. 35. 2012 Business Barometer More Believe MNK-12 Schools Better than Rest of Country All Employers 2011 2012
  36. 36. 2012 Business BarometerStrong Support for Tenure Reform
  37. 37. 2012 Business Barometer Energy Policy
  38. 38. 2012 Business Barometer Concerns About Affordability and Reliability Continue All Employers
  39. 39. 2012 Business Barometer Support Lacking for Full Transition From Cross-Subsidization of Electric Rates All Large Chamber Employers Employers Members Businesses should not subsidize residential customers 15% 11% 15% Subsidization is okay to helpthose who have trouble paying electric bills 35% 45% 29% Current system works if electric rates are kept competitive 45% 40% 51% Don’t know/ Refused 6% 4% 5%
  40. 40. 2012 Business Barometer States with Lower Electric Rates Than Minnesota by Sector, 2010Commercial Industrial AL IA ND SD NE WA OR IN NC WY KY UT ID OK AR KS MO VW VA LA MT NM SC GA TN MS Residential
  41. 41. 2012 Business Barometer Role for Government
  42. 42. 2012 Business Barometer Most Important Issue For Legislature and Governor to Address All Employers — Top Two Choices 2011 2012 Taxes/ Most Second Issue Total Spending 73% Important Important Spending 29% 21% 50%Health Care 41% Health Care 25% 16% 41% Redesign Tax Reform 13% 25% 38%Government 28% Services Workforce 11% 13% 24%Workforce 22% Redesign 3% 12% 15%
  43. 43. 2012 Business Barometer Most Important Issue For Legislature and Governor to Address Top Two Choices All Employers Large Employers Chamber MembersSpending 50% Health Care 53% Spending 56%Health Care 41% Spending 48% Health Care 41%Tax Reform 38% Workforce 36% Tax Reform 37%Workforce 24% Tax Reform 23% Workforce 24%
  44. 44. 2012 Business Barometer Role of Business Community in Political Affairs
  45. 45. 2012 Business Barometer Does Business Community Play a Large Role in State Elections Yes No All Employers – 2011 53% 42% All Employers – 2012 69% 26%Chamber Members – 2011 72% 27%Chamber Members – 2012 83% 16%
  46. 46. 2012 Business Barometer Summary Strong loyalty to Minnesota Recession hangover remains – Profitability – Hiring plans Four key factors: – Tax burden (what does reform mean?) – Health care (can we stabilize raising costs?) – Workforce (are we preparing workers for tomorrow?) – Energy (can we keep a competitive advantage?) Business to St. Paul for answers

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