Grow Minnesota!

…Support in a “shaky” economy

Detroit Lakes Chamber Economic Summit

March 2012

What Is Grow MN!?

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

• MN Chamber sponsored

• 57 local chamber partners…including Detroit Lakes

• 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?”

Why Is Grow MN! Important?• No one else says, “Thank you.”

• Businesses have more choices than ever– Talk directly to the decision maker– Learn firsthand re issues & plans

• Businesses expect Chambers to help– 25% would turn to chamber of commerce for

assistance

Grow MN! 2010-2011 Results

• 990 one-on-one business retention visits– 136 in Central Minnesota

• 23% are revisits– 36 in Central Minnesota

• 122 firms assisted, affecting 4,900 jobs– Including 18 in Central Minnesota

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

Sales -- Last 2 Years

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Increased Relatively Stable Decreased Fluctuated Widely

Responses

Per

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e

State (N=582) Central Region (N=97)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Increased Relatively Stable Decreased Fluctuated Widely

Responses

Per

cen

tag

e

State (N=541) Central Region (N=95)

Profitability -- Last 2 Years

Businesses Creating New Products in the Last Two Years

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Fiscal Year

Perc

en

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State Central MN

Fastest Growing MarketsWhat is your company's fastest growing market?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Market

Per

cen

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e

Minnesota (N=592) Central MN (N=93)

Export Sales: Opportunities

• What: high value and/or made-to-order

• Where: look for growing middle class

Expected Job Growth, Next Year (2010-2011 Results)

Expectation for Employment Changes

  Minnesota Central MN

Increase 40.8% 48.4%

Stable 51.6% 46.8%

Unsure 5.5% 3.2%

Decrease 2.0% 1.6%N=488

4%

66%

27%

3%

6%

52%

41%

2%

0%

10%

20%

30%

40%

50%

60%

70%

Unsure Stable Increase Decrease

Per

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2009-2010

2010-2011

Responses 2009-10 N = 600

2010-11 N = 488

Expected Job Growth, Next Year

Rating Central MN Business Climate

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

• What’s not:– Air service– State taxes– Health care cost– Energy cost

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%)– 28 in Central MN

• Where: 2011

Why Not Central MN?

• Markets

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

• Workforce

Workforce: A “New Normal”

• Jobs are being created…

• But, they are different……Mismatch of current skills & current openings

Recent Issues Recruiting Employees?(2010-2011 Results)

N=667

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

Difficulty Recruiting Employees

0%10%

20%30%

40%50%

60%70%

80%

Job Type

Per

cen

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e

% Yes - State % Yes - Central MN

Job Creation Agenda: What Grow MN! Visits Suggest?

• Talk to the “customers”– They expect it!– You can help! E.g. Exporting

• Improve economic infrastructure– More workers – right skills – Air service: make it an advantage– Energy: restore your advantage

Questions?