The document provides results from the 2013 Grow Minnesota! program, which conducts business retention and expansion visits across the state. Some key results include: - 902 business visits were conducted, with 234 in the metro area and 668 in Greater Minnesota. - 195 firms were assisted, affecting over 3,865 jobs. - The majority of visited businesses reported increasing sales and profitability over the last year. - Common business expansion plans included investing in new facilities and equipment. - Manufacturing was the most common business sector visited.

1. GROW MINNESOTA! 2013 RESULTS
Annual Report

2. GROW MINNESOTA! 2013 RESULTS
• 902 one‐on‐one business retention visits
– 234 in Metro Area, 668 in Greater MN
• 27% are revisits
– 19% in Metro Area, 29% in Greater MN
• 195 firms assisted, affecting 3,865 jobs
– 51 in Metro Area, 144 in Greater MN

3. TOP BUSINESS SECTORS VISITED
•
•
•
•
•
Manufacturing – 31%
Retail Trade – 11%
Professional/Scientific/Technical Services – 8%
Finance/Insurance – 6%
Construction – 6%
Other visited sectors: Accommodation/Food Services, Health Care,
Wholesale Trade, Agriculture/Forestry, Arts/Entertainment/Recreation,
Real Estate/Rental and Leasing.

4. SALES & PROFITABILITY IN THE LAST YEAR
Sales
80%
70%
60%
50%
40%
30%
20%
10%
0%
Profitability
80%
70%
60%
50%
40%
30%
20%
10%
0%
Metro Area (N=187)
Metro Area (N=157)
Greater MN (N=538)
Greater MN (N=403)

5. BUSINESSES REPORTING INCREASING SALES
80%
70%
60%
50%
40%
30%
20%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Area
Greater MN

6. BUSINESSES REPORTING INCREASING PROFITABILITY
80%
70%
60%
50%
40%
30%
20%
2004
2005
2006
2007
2008
Metro Area
2009
2010
Greater MN
2011
2012
2013

7. CREATING NEW PRODUCTS/SERVICES IN THE LAST 2 YEARS
85%
80%
75%
70%
65%
60%
55%
50%
2005
2006
2007
2008
Metro Area
2009
2010
Greater MN
2011
2012
2013

8. PRIMARY MARKETS
40%
35%
30%
25%
20%
15%
10%
5%
0%
Local
United States
Minnesota
Metro Area (N=222)
Midwest
Greater MN (N=470)
International

9. FASTEST GROWING MARKETS
40%
35%
30%
25%
20%
15%
10%
5%
0%
Local
United States
Minnesota
Metro Area (N=163)
Midwest
International
Greater MN (N=470)
None are
growing

10. EXPORTING
27% of businesses said they are exporting.
– An additional 10% are interested in exporting.
25%
20%
15%
10%
5%
0%
Canada
Europe &
Russia
Latin America Japan, Korea,
& Caribbean Southeast Asia
Mexico
Africa &
Middle East
Greater China India, Pakistan, Australia, New
Central/South
Zealand,
Asia
Oceania

11. WHAT ARE YOUR NEW INVESTMENT PLANS?
60%
50%
40%
30%
20%
10%
0%
Invest in new facilities
Make major equipment Renovate/Expand current
purchases
facilities
Metro Area (N=97)
Greater MN (N=277)
Data from businesses that told Grow Minnesota! their investment plans. Percentages are greater
than 100% since some businesses have plans for more than one of these investments.

12. BUSINESSES REPORTING EXPANSION PLANS
45%
40%
35%
30%
25%
20%
15%
2005
2006
2007
2008
Metro Area
2009
2010
Greater MN
2011
2012
2013

13. EXPANSION PLANS: % GROWING IN MINNESOTA
95%
90%
85%
80%
75%
70%
65%
60%
2005
2006
2007
2008
Metro Area
2009
2010
2011
Greater MN
2012
2013

14. WHY ARE BUSINESSES INVESTING OUTSIDE MN?
•
•
•
•
•
Access to markets (39)
No room at current location (22)
High state and/or local taxes (16)
Access to labor (15)
Transportation/Infrastructure (10)

15. JOBS IN THE NEXT YEAR
60%
50%
40%
30%
20%
10%
0%
Increase
Stable
Metro Area (N=199)
Decrease
Unsure
Greater MN (N=537)

16. ADDED JOBS IN THE LAST YEAR
70%
60%
50%
40%
30%
20%
10%
0%
2005
2006
2007
2008
Metro Area ‐ Added Jobs
2009
2010
2011
2012
Greater MN ‐ Added Jobs
2013

17. DIFFICULTY RECRUITING EMPLOYEES?
Metro Area (N=158)
Greater MN (N=381)
1%
46%
53%
Yes
No
Unsure
45%
54%

18. TROUBLE RECRUITING IN THE LAST YEAR
60%
50%
40%
30%
20%
10%
0%
2008
2009
2010
Metro Area ‐ Trouble Recruiting
2011
2012
2013
Greater MN ‐ Trouble Recruiting

19. TROUBLE RECRUITING
Production and Assembly
Construction, Trades Workers
Sales Agents, Real Estate Agents
Architects,Engineers, Cartographers
Executives, Managers
IT and Web, Actuaries, Statisticians
0%
Metro Area
3%
6%
Greater MN
9%
12%
15%
18%

20. HIGHEST RATED ATTRIBUTES
Metro Area
Greater MN
1. Recreational
opportunities
2. Social organizations/
networks
3. Cultural opportunities
4. Overall workforce
quality
5. Higher education
1. Recreational
opportunities
2. Electric reliability
3. K‐12 education
4. Social organizations/
networks
5. Lending by local
financial institutions

21. LOWEST RATED ATTRIBUTES
Metro Area
1. State taxes
2. Health care costs
3. Workers’
compensation
rates
4. Unemployment
insurance
5. Laws affecting
civil litigation
Greater MN
1. State taxes
2. Health insurance
requirements
3. Health care costs
4. Worker’s
compensation
rates
5. Unemployment
insurance

22. IMPROVING MN’S BUSINESS CLIMATE – PROGRESS?
ATTRIBUTE
ON MN
RECOMMENDATION
CHAMBER
AGENDA?
PROGRESS?
Health care costs
Pay for outcomes, not
procedures
2008 legislation has
reduced ‘s
State taxes
Repeal the B2B sales taxes; #1 priority for 2014
federal conformity
Health insurance
requirements
Eliminate mandates; more
defined contribution plans
Losing ground.
Mandate added in 2013
Workers’ comp
rates
Reduce health care
expenses (over 1/3)
DOLI report to
legislature, 2014
Unemployment
insurance
Retain current benefits and Rate reduction adopted
in 2013
financing.

23. GROW MINNESOTA! PARTNERS
Albert Lea-Freeborn County
w/ Albert Lea Economic Development Agency
Alexandria Lakes Area
Area Partnership for Economic Expansion (APEX) w/ Duluth Area
Apple Valley
Austin Area
Bemidji Area
Bloomington
Blooming Prairie Chamber
Brainerd Lakes Chamber w/ Brainerd Lakes Area Econ. Development Corp
Burnsville
Cambridge Area
Dakota County Regional
Detroit Lakes Regional
Eden Prairie
Edina
Elk River Area
Fairmont Area w/ Fairmont Economic Development,
IGNITE - Martin County
Faribault Area & Tourism
Fergus Falls Area
Forest Lake Area
Greater Mankato Growth Inc.
Hastings Area & Tourism Bureau
Hibbing Area
Hutchinson Area
I94 West
International Falls Area
Isanti Area
Itasca Economic Development Corp. (IEDC) w/ Grand Rapids Area Chamber
Lake City w/ Lake City Economic Development
Litchfield
Long Prairie Area
Marshall Area
MetroNorth
Minneapolis Regional
New Ulm Area
North Hennepin Area
Owatonna Area and Tourism
Park Rapids Area
Princeton Area w/ City of Princeton Econ. Development
Redwood Area Chamber & Tourism w/ Redwood Area Development Corp.
Richfield
River Heights w/ Progress Plus
Rochester Area w/ Rochester Area Economic Development Inc.
Saint Cloud Area
Saint Paul Area
Shakopee Area
SouthWest Metro
Thief River Falls Area
Twin Cities North
TwinWest
Two Harbors Area
Waconia
Waseca Area
White Bear Area Chamber w/ White Bear Lake Economic Development Corp.
Willmar Lakes Area
Winona Area
Worthington Area