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Business and Industry

Minnesota is a global leader in many industries — including medical devices, technology, manufacturing, insurance, healthcare and service industries. Minnesota’s abundance of capital, local work ethic and great quality of life are often cited as reasons why it is a great place to start or grow a business. In fact, in 2003 Minnesota was ranked “Top Spot for Business” by Entrepreneur magazine.

Similarly, an article from the June 20, 2005 issue of The Scientist ranked the University of Minnesota’s “intellectual pipeline” fourth, based on a variety of criteria. And patents for University- developed intellectual property rose from 25 in FY 1996 to 49 in FY 2005, while the number of licenses increased from 47 to 79. Many of these inventions spawn their own companies. A recent University of Minnesota Institute of Technology survey found its graduates have created 2,600 active companies in Minnesota with annual revenue of $46 billion and employing about 175,000 people. Twenty of Fortune magazine’s 2007 list of the 500 largest publicly traded U.S. companies are headquartered in Minnesota, including Ecolab, Inc., 3M, CHS, Land O’Lakes, Northwest Airlines and Travelers in the Saint Paul/East Metro area.

Many small and diverse businesses also call the Saint Paul/East Metro area home. University Avenue in Saint Paul is a hotbed of Hmong business ventures, coupled with long-term businesses that have been a part of the community for generations. District Del Sol, on Saint Paul’s West Side, is home to the Twin Cities’ best Mexican food and the Cinco de Mayo celebration — Minnesota’s largest Hispanic/Latino event. Woodbury and Oakdale are both

East Metro communities that are attracting small business at a great rate. Major new office complexes are in the works in both communities, supported by major investments in transportation infrastructure, retail development and a continued housing boom. More established suburban communities like North Saint Paul and Roseville are home to hundreds of small businesses as well.

With a legacy of healthcare excellence and a thriving medical device industry built around Medtronic, Boston Scientific and Saint Jude Medical, Minnesota has launched an initiative intended to stimulate growth of the biosciences. One of Minnesota’s bioscience corridors can be found on the Saint Paul/Minneapolis border. This corridor is focused on bioscience applications in agricultural, industrial and drug/device combinations and leverages the unique assets of the University of Minnesota, Mayo Clinic and the Saint Paul/East Metro area’s unbeatable location and leadership. For the second consecutive year, a University of Florida report ranked the University of Minnesota as one of the top three public research universities in the country. That leadership is at the heart of the Saint Paul/ East Metro area’s efforts to develop new industry clusters in the bioscience and healthcare sectors.

EMPLOYMENT
The economic outlook for the Twin Cities is very strong, largely due to the remarkable diversity and balance of its business base and the high quality and productivity of its workforce. Employment has been projected to grow 13 percent by 2014, adding more than 220,000 jobs to the Twin Cities. Significant increases in employment (25 percent) are forecast for service industries — particularly in the areas of computer and data processing, healthcare, engineering and social services.

FINANCIAL SERVICES
Minnesota is a national leading financial service sector, and is home to some of the country’s leading insurance institutions. The area’s financial strength is enhanced by an active community banking industry.

Founded in 1853, Travelers (formerly St. Paul Travelers) is the oldest business corporation in Minnesota, and one of the largest commercial property-liability insurers in the world. The combined company is uniquely positioned as the commercial insurer of choice for independent agents and brokers across the United States. The company also offers homeowners, auto and other insurance products for individuals and families under the highly regarded Travelers brand.

Securian, one of America’s 15 most highly rated insurance institutions, provides financial security for millions of individuals and businesses with insurance, pensions and investments. Founded in 1880, Securian serves more than seven million clients through 5,000 home office associates and field representatives located at its Saint Paul headquarters and throughout the country. It provides more than $575 billion of life insurance protection and manages over $28 billion in assets.

Wells Fargo has $482 billion in assets and 158,000 team members. It is one of the United States’ top-40 largest employers, ranking fifth in assets and fourth in market value as of December 31, 2006. The company acquired Norwest and has expanded employment to more than 15,000 in the Twin Cities. To support its continued growth, Wells Fargo acquired space in Shoreview for its new operations center.

U.S. Bancorp — with assets in excess of $221 billion — is the sixth largest financial services holding company in the United States. It expanded in Saint Paul in 2002 with the opening of a new operations center on the West Side that employs 200 workers.

Community banks also thrive in the area, and after years of consolidation in the banking industry, new banks are growing. Drake Bank opened in 2002 and was the first bank chartered in Saint Paul in 40 years. It joins other successful community banks such as Alliance, American, Anchor, Associated, Bank Cherokee, Bremer, Brickwell, Citizen’s Independent, Gateway, Highland, InterBank, M&I, Peoples Bank of Commerce, Pinehurst, Premier, Park Midway and Washington County. A growing customer base enjoys the convenience of credit unions with Affinity Plus Federal Credit Union, City and County, Capital Trust Federal Credit Union, Hiway Federal and Unity One.

Overall, the state’s financial institutions play a key role in financing the area’s growth. The state also offers funding for growing businesses through equity raised by its investment banking and vibrant venture capital communities. The state regularly ranks as one of the nation’s leading Small Business Administration lenders. The finance, insurance and real estate sectors employed 136,988 people in the Twin Cities area in 2005. The industry has grown by nearly 10 percent in recent years, and is projected to grow another 12.3 percent by 2014.

MANUFACTURING
3M is one of the area’s largest manufacturing employers with nearly 12,000 workers locally and more than 69,000 worldwide. A technology company with leading positions in transportation and safety, healthcare, industrial, consumer and office, electronic and communications, industrial and specialty materials markets, 3M has operations in more than 60 countries and serves customers in nearly 200 countries, with annual sales over $22 billion.

Andersen Corporation, best known as a leading manufacturer of windows, opened a 227,000 square foot manufacturing and headquarters facility in Bayport in 1999. With approximately 3,000 employees in the Saint Paul/East Metro area and 6,000 employees nationwide, Andersen has been a growing part of the local business community.

The Saint Paul/East Metro area also is part of Minnesota’s “Medical Alley,” named for the large number of medical device manufacturing companies located here. 3M’s healthcare division is part of this segment of the manufacturing community. Boston Scientific’s Cardiac Rhythm division employs 2,600 local professionals at its 93-acre Arden Hills campus. The Cardiac Rhythm unit develops and manufactures medical devices to help and heal ailing hearts. Approximately half of its employees have earned engineering, nursing, master’s or PhD degrees. Guidant, Medtronic and St. Jude Medical are also among the key participants in Medical Alley, providing more than 90 percent of the world’s implantable cardiac devices.

RETAIL
Thriving retail areas are plentiful in Saint Paul and the surrounding communities. In Saint Paul, retailers along the renowned Grand Avenue, Selby and University Avenues offer shoppers a wide array of unique boutiques. Other dynamic neighborhood shopping areas in Saint Paul include Highland Park, District del Sol and the West Seventh street corridor. Suburban communities often have their own “downtowns,” that feature individual retailers, as well as convenient access to large regional malls and shopping centers. North Saint Paul, for example, has a quaint downtown of small retailers while Roseville boasts Rosedale Center, the most shopped indoor mall by Twin Cities residents.

Activity generated by events held at Saint Paul’s RiverCentre and Xcel Energy Center, along with the area’s many other attractions, bring people together to dine and shop throughout the Saint Paul/East Metro area.

Retailers, including restaurants, are major employers in the area, providing more than 169,000 jobs in 2003. Growth in retail employment in the Twin Cities is forecast to grow 10.2 percent between 2004 and 2014.

SERVICES
All across America, the service sector continues to be a fast-growing area for employment and accounts for more than 60 percent of forecasted job growth for the Twin Cities by 2010. The service industry has grown nearly 11 percent since 2000, and is projected to grow another 15.7 percent by 2014.

Leading service industries (such as advertising, public relations, printing, marketing and personnel services) supply essential business services to the business community. The Saint Paul/East Metro area is widely recognized for its prominent role in these fields.

Minnesota has long been a leader in the healthcare industry, offering innovative insurance approaches, cutting-edge medical devices and outstanding patient care. Leading employers in the area include HealthEast Care System, Regions Hospital, United Hospital and prominent insurance providers like Blue Cross/Blue Shield and HealthPartners.

The Saint Paul/East Metro area has forged strong and unique partnerships between its business and nonprofit communities. Social service agencies help settle new immigrant populations, support educational initiatives and facilitate the transition from welfare to work. Together with the ongoing support and involvement of local businesses, the nonprofit community has made the region one of the most effective providers of social services in the nation.

HIGHER EDUCATION
A recognized leader in the “knowledge economy,” the Twin Cities’ reputation is based on its growing pool of knowledge specialists — engineers, technology workers and educators. Minnesota devotes significant resources to education and workforce development — a commitment that is reflected in the area’s employment figures, which show public school systems and the University of Minnesota to be among the Twin Cities major employers.

Higher education is a leading industry in Saint Paul, which boasts more institutions of higher education than any other community in the nation, except Boston. These institutions range from Metropolitan State University to nationally recognized small liberal arts colleges such as Macalester College and the University of St. Thomas.

Across the area and across the board, the breadth, depth and diversity of the Saint Paul/East Metro area economy makes for a dynamic business community, attracting businesses and workers who strive to do their best work and contribute to the area’s success and prosperity.

TECHNOLOGY
More than 3,400 technology-oriented companies are based in the Twin Cities. Lawson Software, one of the industry leaders, is the area’s leading software company, and is among the fastest growing companies in Minnesota. With offices in downtown Saint Paul, Lawson employs more than 500 people. The company went public in 2001 to finance its continued growth.

TRANSPORTATION
From its earliest days, the Saint Paul/East Metro area (strategically positioned on the banks of the Mississippi, St. Croix and Minnesota Rivers) has been a center for transportation in the state. Before railroads, the rivers served as the major transportation system in the state. Today, all forms of transportation contribute to the area’s economy and the region is well connected for transit of people and goods by highway, rail, water and air.

AIR
Minneapolis-Saint Paul International Airport (MSP) is less than 20 minutes from downtown Saint Paul. The hub for Northwest Airlines and its 18,000 employees, MSP is ranked among the busiest airports in the world, serving more than 37.7 million passengers. From its central location, business travelers and tourists can easily reach 131 major U.S. and international cities on non-stop flights. Sun Country also services the Twin Cities. With headquarters in Mendota Heights, Sun Country brings additional employment and flights to the Twin Cities marketplace.

RAIL
The Burlington Northern and Santa Fe Railway Company (BNSF) is a premier transportation service provider. The railway originated in Saint Paul 150 years ago with a single locomotive and two cars, and traveled a 10-mile stretch of track between Saint Paul and Minneapolis. It eventually became part of James J. Hill’s Great Northern Railroad, and is now one of the largest railroad networks in North America with 5,000 locomotives and 90,000 freight cars that travel across 33,500 route miles, covering 28 states and two Canadian provinces. BNSF hauls enough coal to generate nearly 10 percent of the nation’s electricity, and is the largest rail transporter of grain, aluminum, aircraft parts and beer in the United States

WATERWAYS
The Mississippi River, the third largest in the world, runs thousands of miles through the nation’s heartlands. A priceless natural resource, the river continues to be an active part of the Saint Paul/East Metro area’s transportation system, serving as an important artery for hauling coal, grain and other products.

More than 24,000 people are currently employed in transportation, communications and public utilities in the Saint Paul/East Metro area. Wholesalers utilize the region’s rail, truck and barge systems to distribute durable and nondurable goods from manufacturers to retailers. Growth in employment for the area’s transportation sector is forecast at 17 percent from 1998 to 2008.

WHOLESALE
Leveraging its transportation network and strategic location, the area is home to a number of wholesale operations. The wholesale trade sector provided 30,000 jobs in 2000, with Twin Cities wholesale employment forecast to grow by 12 percent in the period from 1998 to 2008.