STATE FOCUS | MINNESOTA
Rochester, Minnesota, just 90 minutes south of the Twin Cities, is home to the Mayo Clinic, the world’s leading hospital.
mainframe computers, and we also have many semi-conductor fabrication companies here that are growing.”
“Manufacturing is the second big industry,
and there are lots of Fortune 500 manufacturing companies here,” he adds. “In fact, the state is a national hub for manufacturing, and a distinctive feature of this industry is that it is very diverse. We rank first or second in terms of the concentration of jobs in 17 key sub-sectors of the manufacturing industry compared to national average. Some industries like manufacturing, agriculture and iron mining go back a long way, and the state is home to many natural resource-based industries.” The cleantech and its growing supply chain is also making its presence felt in the state. Although Minnesota has not yet become home to a large amount of electric vehicle (EV) manufacturing, it has attracted investment in innovative projects for EV battery storage. The state’s strong mining sector means it is a natural source of metals and minerals that go into cleantech innovations, and the more projects are expected to take root in the years ahead.
The Minnesota nice
Minnesota, also known as the Land of 10,000 Lakes, comes with a stereotype about the
42 Winter 2025 |
ochmagazine.com
character of its people. Like many stereotypes, it has some basis in truth. The ‘Minnesota nice’ is a cultural trait that implies that state’s residents are unusually courteous, mild-mannered and sometimes reserved.
“People still hold doors open and wave at you,” says Napieralski. “The Minnesota nice is a real thing. It is a great location, and I love living here. There are many places where industry is not polluting the air, and if you like the outdoors then this is the perfect state – a beautiful place to live.” Nevertheless, the state faces a number of significant challenges in terms of economic development. While 17 Fortune 500 companies are headquartered there – most of which were founded in Minnesota – it faces many challenges if it is to remain a place where entrepreneurs can take risks and find the support and the resources to thrive. “We need a more competitive business
environment that will stimulate a homegrown economy with businesses starting here,” observes O’Neil. “We want to build on our existing strengths but also identify potential industries into which we could expand. There are some real competitive advantages here compared to other states.” “Manufacturing is absolutely an opportunity that we are thinking about,” he adds. “To the
extent that we are in an era where there is more focus on reshoring or onshoring manufacturing, we are looking to compete for those investments.” One advantage that the state is able to leverage in order to compete effectively is its highly educated workforce. For example, the state is in the top ten in terms of the proportion of adults with a college degree. However, some real barriers remain, particularly in regard to the state’s tax regime and the reg climate, which O’Niel admits is more challenging for business than in some other states. “We are one of the higher taxation states in terms of both individual and corporate taxation, and we have had some increasing regulatory challenges around labour mandates and permitting processes, which can take a long time for companies, but the Chamber of Commerce is an advocacy organisation and we are communicating with policymakers to see how we can be more competitive as manufacturing is reshored,” he says. Reshoring is a key target of the current Republican administration, which has used tariffs as a key tool in global trade. The idea is to make importing more expensive and, therefore, encourage domestic manufacturing. Whether that strategy is successful remains to be seen, but there is certainly some short-term pain involved.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87
