Economy of Minnesota
This article needs to be updated.(September 2021) |
State quarter | |
Statistics | |
---|---|
GDP | $374 billion (2020)[1] |
Population below poverty line | 11.5% (2013)[2] |
0.4436 (2011)[3] | |
Labor force | 2,995,400 (December 2014)[4] |
Unemployment | 3.0% (August 2023)[5] |
Public finances | |
Revenues | $20,181.8 million (2013)[6] |
Expenses | $18,739.5 million (2013)[7] |
The economy of Minnesota produced US$312 billion of gross domestic product in 2014.[8] Minnesota headquartered 31 publicly traded companies in the top 1,000 U.S. companies by revenue in 2011.[9] This includes such large companies as Target and UnitedHealth Group. The per capita personal income in 2016 was $51,990, ranking sixteenth in the nation.[10] The median household income in 2013 ranked eleventh in the nation at $60,900.[11]
Industry and commerce
Minnesota's economy has transformed in the past 200 years from one based on
The earliest industries were
In The Blufflands, cheese, wine, honey, milk, apples, and maple syrup are produced.
Minnesota is the U.S.'s largest producer of
Minnesota was famous for its soft-ore iron mines which produced a significant portion of the world's iron ore for over a century. Although the pure ore is now depleted, taconite mining remains strong using processes developed locally to save the industry. In 2004 the state produced 75 percent of the usable iron ore in the country.[13] 3M (formerly Minnesota Mining and Manufacturing Co.) today is a diversified manufacturer of industrial and consumer products. The port of Duluth was created by the mining boom and today continues to be an important shipping port for the Midwest's agricultural and ore products.
Manufacturing was not left out, either. The
Retail is represented by Target Corporation, Best Buy, and Supervalu, all headquartered in the Twin Cities. Southdale Center, the first fully enclosed and completely climate-controlled shopping mall in the United States opened on October 8, 1956, in the suburban city of Edina. The largest shopping mall in the United States, the Mall of America, is located in Bloomington.
St. Jude Medical represents a growing biomedical industry spawned by university research, and Rochester is the headquarters of the world-famous Mayo Clinic. UnitedHealth Group is the second largest health insurance company in the U.S.
Financial institutions include
As might be expected in state with a love of the outdoors, boats and other recreational products are manufactured by a number of Minnesota companies, including
Today, the most salient characteristic of the economy is its diversity; the relative outputs of its business sectors closely match the United States as a whole.[16]
The digital state
More than any other Midwestern state, Minnesota attracted entrepreneurs and engineers, especially in the computer industry, and became a leading center of computer manufacturing after the war.
Minnesota's largest companies
Nonprofits
The following table lists the Minnesota-based non-profit organizations among the largest 400 in the U.S. by 2006 private donations.[22]
State rank by revenue |
Name | National rank |
Donations ($millions) 2006 estimate |
Headquarters city |
---|---|---|---|---|
1 | Mayo Clinic | 45 | 265.9 | Rochester |
2 | University of Minnesota | 46 | 265.4 | Minneapolis |
3 | Scholarship America | 114 | 136.2 | St. Peter |
4 | Minnesota Public Radio | 378 | 40.3 | St. Paul |
5 | Hope for the City | 379 | 40.3 | Edina |
Private companies
The following table lists the privately held companies headquartered in Minnesota with 2007 revenues over $1 billion.[23]
State rank by revenue |
Name | National rank |
Revenue ($billions) 2007 estimate |
Employees | Headquarters city | Known for |
---|---|---|---|---|---|---|
1 | Cargill | 1 | 107.90 | 131,000 | Minnetonka | Farm Products |
2 | Carlson |
87 | 38.00 | 170,000 | Minnetonka | Travel and Lodging |
3 | Schwan Food Company |
124 | 3.30 | 17,000 | Marshall | Dairy Products and Frozen Foods |
4 | Andersen Corporation | 136 | 3.00 | 10,600 | Bayport | Windows and Building Materials |
5 | Rosen's Diversified | 184 | 2.40 | 4,200 | Fairmont | Meat Products |
6 | M A Mortenson | 218 | 2.14 | 2,700 | Robbinsdale | Heavy Construction |
7 | Fagen | 227 | 2.08 | 3,600 | Granite Falls | Heavy Construction |
8 | Holiday Cos. | 238 | 2.00 | 4,600 | Bloomington | Retailing |
9 | Taylor Corp. | 286 | 1.70 | 12,500 | North Mankato | Publishing – Periodicals |
10 | Ceridian |
295 | 1.65 | 9,500 | Bloomington | Information Technology Services |
11 | Buffets, Inc. |
334 | 1.46 | 38,000 | Eagan | Restaurants |
12 | API Group | 351 | 1.35 | 6,000 | New Brighton | Conglomerates |
13 | Lifetouch | 424 | 1.05 | 20,000 | Eden Prairie | Photography |
14 | Ryan Companies | 427 | 1.04 | 600 | Minneapolis | Heavy Construction |
Public companies
The following table lists the public companies headquartered in Minnesota with 2010 revenues placing them in the 1000 largest U.S. companies.[9]
State Rank by Revenue |
Company Name | National Rank |
Revenue ($millions) 2010 estimate |
Headquarters City | Known for |
---|---|---|---|---|---|
1 | UnitedHealth Group | 6 | 184,840 | Minnetonka | Managed Health Care |
2 | Target | 33 | 67,390 | Minneapolis | Retailing |
3 | Best Buy | 47 | 49,694 | Richfield | Retailing |
4 | Supervalu |
61 | 40,597 | Eden Prairie | Food Distribution and Retailing |
5 | 3M | 97 | 26,692 | Maplewood | Diversified Manufacturing |
6 | CHS, Inc. |
103 | 25,268 | Inver Grove Heights | Fuel Distribution |
7 | US Bancorp |
126 | 20,518 | Headquarters in Minneapolis, domiciled in Delaware | Banking and Finance |
8 | General Mills | 166 | 14,796 | Golden Valley | Food Processing |
9 | Land O' Lakes |
218 | 11,146 | Arden Hills | Dairy Products |
10 | Xcel Energy | 237 | 10,311 | Minneapolis | Electricity Production and Distribution |
11 | Ameriprise |
246 | 10,046 | Minneapolis | Financial Planning |
12 | C.H. Robinson Worldwide |
265 | 9,274 | Eden Prairie | Logistic Services |
13 | Thrivent Financial for Lutherans |
318 | 7,471 | Minneapolis | Financial Products |
14 | Hormel Foods | 325 | 7,221 | Austin | Meat Processing |
15 | Mosaic | 346 | 6,759 | Plymouth | Fertilizer Manufacturing |
16 | Ecolab | 378 | 6,090 | St. Paul | Sanitation Supplier |
17 | St. Jude Medical | 436 | 5,165 | Little Canada | Medical Devices |
18 | Nash Finch |
449 | 4,992 | Edina | Food Distribution |
19 | Alliant Techsystems | 472 | 4,808 | Eden Prairie | Defense Contractor |
20 | Valspar | 618 | 3,482 | Minneapolis | Paint and Coatings |
21 | Pentair | 627 | 3,395 | Golden Valley | Water Treatment |
22 | Patterson | 687 | 2,999 | Eagan | Dental and Veterinarian Supplies |
23 | Securian/Minnesota Life |
729 | 2,746 | St. Paul | Life Insurance |
24 | Regis | 730 | 2,739 | Edina | Hair Salons |
25 | Fastenal | 813 | 2,340 | Winona | Fastener Manufacturer |
26 | Donaldson | 836 | 2,233 | Bloomington | Filtration Products |
27 | Imation |
860 | 2,155 | Oakdale | Data Storage Products |
28 | Polaris Industries |
911 | 1,948 | Medina | Snowmobiles and ATVs |
29 | Toro |
936 | 1,878 | Bloomington | Lawn and Irrigation Equipment |
30 | Michael Foods | 961 | 1,804 | Minnetonka | Packaged Foods |
Energy use and production
The state does not produce any petroleum of its own but boasts the largest
Like other Midwestern states that experience cold winters, Minnesota is heavily dependent on natural gas for home heating. Just over two-thirds of homes use the fuel.
State taxes
Minnesota's income tax is slightly progressive with four rates, 5.35%, 7.05%, 7.85%, and 9.85%.[27] The sales tax in Minnesota for most items is 6.875% effective July 1, 2009.[28] The state does not charge sales tax on clothing, some services, or food items for home consumption.[29] The state legislature may allow municipalities to institute local sales taxes and special local taxes, such as the 0.5% supplemental sales tax in Minneapolis.[30] The cities of St. Paul, Rochester, Duluth and St. Cloud have similar taxes. Excise taxes are levied on alcohol, tobacco, and motor fuel. The state imposes a use tax on items purchased elsewhere but used within Minnesota. Owners of real property in Minnesota pay property tax to their county, municipality, school district, and special taxing districts. The overall state and local tax burden is calculated to average 11.9% in 2006, ranking 4th highest in the country.[31]
References
- ^ "Gross Domestic Product: All Industry Total in Minnesota". January 1997.
- ^ "Minnesota QuickFacts from the US Census Bureau". Archived from the original on December 2, 2006. Retrieved November 21, 2012.
- ^ "American FactFinder - Results". Archived from the original on August 31, 2015. Retrieved 2015-09-01.
- ^ "Minnesota Economy at a Glance".
- ^ "Unemployment Rate in Minnesota". fred.stlouisfed.org. August 21, 2023. Archived from the original on September 4, 2023. Retrieved September 4, 2023.
- ^ "Archived copy" (PDF). Archived from the original (PDF) on April 3, 2015. Retrieved March 2, 2015.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ "Archived copy" (PDF). Archived from the original (PDF) on March 17, 2015. Retrieved March 2, 2015.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ "Economic Recovery Widespread Across States in 2010" (PDF). U.S. Department of Commerce. 2010. Archived from the original (PDF) on July 19, 2011. Retrieved March 9, 2018.
- ^ a b "Fortune 500 2007". Our annual ranking of America's largest corporations. CNNMoney.com; Cable News Network LP, LLLP. A Time Warner Company. 2007. Retrieved May 11, 2007.
- ^ "Real Personal Income for States and Metropolitan Areas, 2016" (PDF). U.S. Department of Commerce. Archived (PDF) from the original on November 6, 2018. Retrieved November 5, 2018.
- ^ see Census Bureau, "State Median Income" Archived February 21, 2016, at the Wayback Machine
- ^ "DP-3. Profile of Selected Economic Characteristics: 2000". U.S. Census Bureau. Archived from the original on February 12, 2020. Retrieved 2006-12-12.
- ^ a b "Wealth of Resources". Positively Minnesota. Minnesota Department of Employment and Economic Development. 2006. Retrieved December 13, 2006.
- ^ "Minnesota's Forest Resources 2004" (PDF). U.S. Dept. of Agriculture. Archived from the original (PDF) on November 28, 2007. Retrieved December 12, 2006.
- ^ Named for the horse. Clymer, Floyd. Treasury of Early American Automobiles, 1877–1925 (New York: Bonanza Books, 1950), p.158.
- ^ "Environmental Information Report, App. D Socioeconomic Information" (PDF). May 30, 2003. Archived from the original (PDF) on April 6, 2008. Retrieved 2006-11-19.
- ^ "Solid State: Minnesota's High-Tech History" https://www.tpt.org/solid-state/ (Twin Cities PBS 2019).
- ^ Arthur Norberg, Computers and Commerce: A Study of Technology and Management at Eckert-Mauchly Computer Company, Engineering Research Associates, and Remington Rand, 1946-1957 (MIT Press 2005).
- Charles Babbage Institute, University of Minnesota.
- ^ Kevin Dragseth, "How MN Became the Land of 10,000 Top-Secret Computer Projects" https://www.tptoriginals.org/how-mn-became-the-land-of-10000-top-secret-computer-projects/ pointing to TPT's 2019 documentary Solid State: Minnesota’s High-Tech History
- ^ Thomas J. Misa, Digital State: The Story of Minnesota's Computing Industry (2013) JSTOR
- ^ "Philanthropy 400: Minnesota". The Chronicle of Philanthropy. 2006. Retrieved May 20, 2007.[dead link]
- ^ Reifman, Shlomo and Murphy, Andrea D (eds.) (November 3, 2008). "America's Largest Private Companies". Forbes. Retrieved October 27, 2009.
{{cite news}}
:|author=
has generic name (help)CS1 maint: multiple names: authors list (link) - ^ "2005 Senate Bill 4 (Ethanol Mandate Increase)". Minnesota Votes. Archived from the original on June 29, 2006. Retrieved November 26, 2006.
- ^ "Consumer Info and Services". Minnesota Department of Commerce. Archived from Minnesota Commerce : E85 Fuel Station List the original on October 12, 2006. Retrieved October 19, 2006.
{{cite web}}
: Check|url=
value (help) - ^ "Wind Energy Projects Throughout the United States of America". The American Wind Energy Association. Archived from the original on April 6, 2007. Retrieved November 26, 2006.
- ^ "Minnesota income tax rates and brakets". Minnesota Department of Revenue. Archived from the original on September 21, 2017. Retrieved September 8, 2017.
- ^ "General sales and use tax rate increases to 6.875% beginning July 1, 2009". Minnesota Department of Revenue. Archived from the original on September 3, 2009. Retrieved September 9, 2009.
- ^ "Sales tax fact sheets". Minnesota Department of Revenue. Archived from the original on July 3, 2007. Retrieved November 26, 2006.
- ^ "Local Sales Tax and Use" (PDF). Archived from the original (PDF) on October 9, 2006. Retrieved November 26, 2006.
- ^ "Minnesota State-Local Tax Burden Compared to U.S. Average (1970–2006)" (PDF). Tax Foundation. 2006. Archived from the original (PDF) on December 1, 2006.
External links
Business
- Start a Business in Minnesota
- Small Business Community of Minnesota
- Small business Administration of Minnesota
- Minnesota Office of the Secretary of State forms and documents Archived June 6, 2011, at the Wayback Machine
- Thomas J. Misa, Digital State: The Story of Minnesota's Computing Industry (University of Minnesota Press 2013 and JSTOR)