Grow Minnesota presentation on economic development in the state. Focusing on bettering the business environment, and results of the 2010-2011 year's impact.

1. Grow Minnesota!
…”Eyes & Ears” on the Development &
Growth of Minnesota’s Economy
2011 Statewide Results
January 2012

2. 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

4. Grow Minnesota! Visit – 3 Parts
• Say, “Thank you!”
• Ask, “How can we help your business?”
• Ask, “How to make business environment
better?”

5. 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

7. Sales & Profitability -- Last 2 Years
Sales (2010 – 2011) Profitability (2010 – 2011)
Minnesota Minnesota
(%) (%)
Increased 48.5% Increased 35.9%
Been Relatively
Been Relatively Stable 26.3% Stable 34.9%
Decreased 20.4% Decreased 24.6%
Fluctuated Widely 4.8% Fluctuated Widely 4.6%
N=582 N=541

8. Businesses Creating New
Products in the Last Two Years

9. Fastest Growing Markets
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%
N=592

11. Expected Job Growth, Next Year
2009-10 N = 600
2010-11 N = 488

12. 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

13. Businesses with Expansion
Plans…
…See Things Differently!

14. Expansions – Next Two Years
• 2010: 147 (25%) Current Community 66%
In MN 15%
• 2011: 198 (29%)
Another State 9%
Another Country 2%
• Where: 2011
Don’t Know 8%

15. Why Not MN?
• Markets
• Uncertainty, e.g. permitting, energy $s
• Workforce

16. Recent Issues Recruiting Employees?
(2010-2011 Results)
N=667

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

18. 2012 Job Creation Agenda:
What Do Grow MN! Visits
Suggest?

19. 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”
Effective teacher/principal evaluations
Workforce – More wkrs, right skills
Eliminate “last in, first out” re hiring
Energy – Future $$s unpredictable Cost-based electric rates

20. Questions?