2022 Business Benchmarks Report - Minnesota Chamber
2022 Business Benchmarks Report - Minnesota Chamber
2022 Business Benchmarks Report - Minnesota Chamber
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BUSINESS
BENCHMARKS
RESILIENCY AND RECOVERY
The Minnesota Chamber of
Commerce was selected as 2021’s
State Chamber of the Year by
the national Council of State
Chambers of Commerce. This
award recognizes the Minnesota
Chamber for its innovative
initiatives and best practices that
advance the state’s economy and
provide exceptional services
and results for members.
2022
BUSINESS
BENCHMARKS
Executive Summary
Minnesota’s economy – much like its people – is resilient. For more than a year and a half,
businesses across the state have weathered the unpredictability of a worldwide pandemic, and
the subsequent changes in demand, supply chains and government imposed shutdowns. Yet
here we are: a recovering economy offering more jobs than people to fill them, with businesses
continuing to pivot and innovate, ushering in a new phase of prosperity for the future.
Each year, the Minnesota Chamber produces the Business Benchmarks report to make sense
of the success of our economy relative to other states. This also benchmarks our progress
toward recovery and our competitiveness. Is Minnesota a good place to do business? Do we have
the tools in place to attract and retain business growth and skilled talent to all areas of our state, and
continue to contribute to the quality of life that our citizens enjoy? Let’s dig into the details and find out.
The Business Benchmarks is a great snapshot in time of the state of Minnesota’s economy. At the Minnesota Chamber,
we are dedicated to bringing our members, the broader business community and the public at large, up-to-date data on
the economy.
The Chamber Foundation continues to build on its reputation as a leader on Minnesota’s economy, following the
release of the Minnesota: 2030 report. This critical report and its ongoing applications outline the strengths of
Minnesota’s business legacy, as well as challenges in growing the economy to one that makes Minnesota attractive to
lucrative industries, keeps strong employers in the state and leverages workforce opportunities to build a workforce
pipeline for the future.
We hope the data contained in this report and the work of the Chamber Foundation and Grow Minnesota! program
helps you make business decisions. We reaffirm our commitment to working with you – being an advocacy champion
for Minnesota’s statewide business community, providing thought-leadership on the economy and promoting
economic opportunity for all Minnesotans.
Doug Loon
President and CEO, Minnesota Chamber of Commerce
MINNESOTA 2022 BUSINESS BENCHMARKS 1
S E V E N T H A N N U A L
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BUSINESS
BENCHMARKS RESILIENCY AND RECOVERY
Economy: Resilient
but underperforming
T here is no one way to define economic recovery from the COVID-19 pandemic. But it’s clear that Minnesota has come
a long way since the beginning days of shutdowns and widespread layoffs. The state’s GDP didn’t plummet as far as
other states’, but it’s not exceeding them either, keeping Minnesota in the middle of the pack. Minnesota is seeing a turnaround
in exports after experiencing a 10% decline in 2020. This is still better than the national export decline of 13%. Minnesota’s
unemployment rate continues to drop with job vacancies now greatly exceeding the number of unemployed workers.
2020 BETTER
ANNUAL EXPORTS Ranked 20th
(9.5%)
National Average: (12.9%)
6
SPOTS
FROM 2019
2020 WORSE
PERSONAL
INCOME PER CAPITA
Ranked 16th
$61,540
National Average: $59,729
2
SPOTS
FROM 2019
2020
OUTPUT PER Ranked 13th SAME
WORKING ADULT $92,389 RANKING
AS 2019
National Average: $88,013
WORSE
1
2021
STATE AND LOCAL Ranked 17th
SALES TAX RATES 7.46% SPOT
FROM 2020
WORSE
1
2021
CORPORATE Ranked 3rd
INCOME TAX RATE 9.8% SPOT
FROM 2020
2018 BETTER
OVERALL STATE
AND LOCAL TAXES
PER CAPITA
Ranked 10th
$6,418
National Average: $5,392
1
SPOT
FROM 2017
2021 WORSE
STATE GAS TAX Ranked 26th
30.6¢/gallon 4
SPOTS
National Average: 36.35¢/gallon FROM 2020
Innovation:
A perennial bright spot
M innesota’s legacy of business innovation was on display throughout the COVID-19 pandemic. Businesses pivoted to
meet shifting demand, changing supply chains and government-imposed shut downs. Minnesota ranks first for the five-
year business survival rate, and even though entrepreneurship activity is slightly better than previous years, startup challenges
remain. This is especially true for immigrants and entrepreneurs of color. According to the Minnesota Chamber’s report, “The
Economic Contributions of Immigrants to Minnesota,” there are 18,000 entrepreneurial immigrants in the state, and they play an
increasingly important role in the economy through job creation, innovation and GDP growth. Challenges can be both needs-
based and opportunity-based and include access to capital and time to acquire business knowledge to start a company.
2020
VENTURE CAPITAL Ranked 9th SAME
RANKING
PER CAPITA $230 per capita AS 2019
National Average: $394
2015-2020 BETTER
BUSINESS
5-YEAR SURVIVAL
Ranked 1st
55.3%
National Average: 50%
3
SPOTS
FROM 2014-2019
2020
Infrastructure:
Ongoing improvements
E ven when some business were ordered to shutter early in the pandemic citing health and safety, Minnesota’s infrastructure
was moving the economy along. Now, as the state – and nation – recover from COVID-related impacts, each element of
the state’s infrastructure; air, water, roads and digital connectivity, plays a critical role. Improved highway performance has made
those who rely on Minnesota roads to do business more resilient. But widespread reliance on broadband has called attention to
the inadequacies in Minnesota’s network. States with less landmass have an easier time reaching rural businesses and citizens,
and have seen their rankings improve faster than Minnesota, even though Minnesota private and public sectors have dedicated
significant resources to improving access in the state.
TOTAL
2021 BETTER
SCHEDULED
FLIGHTS
Ranked 11th
of 786 airports
108,414 flights
1
SPOT
FROM 2020
2020
TOTAL FREIGHT Ranked 8th SAME
RAIL MILES 4,233 freight RANKING
AS 2017
rail miles
2019
COMMUTE Ranked 18th SAME
TIMES 23.7 minutes RANKING
AS 2018
National Average: 26.9 minutes
BETTER
OVERALL HIGHWAY
PERFORMANCE
2018
Ranked 15th 7
SPOTS
FROM 2016
2021 WORSE
BROADBAND
COVERAGE
Ranked 28th
93.1%
National Average: 92.2%
14SPOTS
FROM 2020
now offering MR Elastography, Resoundant’s flagship Like most other businesses, Resoundant worries
innovation is now the standard of care in hospitals and clinics about their workforce. “We don’t talk about the human side of
throughout the world. this enough,” says Anderson. “Rather than think you’re going
At the onset of COVID-19, it was clear to Kathy Anderson, to entice someone to come back with a signing bonus, many
Resoundant’s Chief Operating Officer, they would have to pivot companies have found that they need to think differently.”
their employee-based practices to continue to operate effectively. Acknowledging cost of living challenges and offering enhanced
She knew they “couldn’t navigate these unprecedented times benefits, including behavioral and mental health coverage,
without locking arms with others.” Like many, Anderson turned can often help companies support and retain employees.
to to the Minnesota Chamber, where she could leverage the Additionally, notes Anderson, companies can work with higher
Chamber’s COVID-19 employer resources. She also joined ed in their region to help build the talent pipeline for the future.
a policy committee to work with other Chamber member What’s next for Resoundant? They plan to grow out of the
organizations on health care policies. COVID-19 pandemic into a new era of radiology products and
And despite COVID-19, Resoundant persevered, diversified clinical trials that help their clients and the health of those who
and grew. Challenges from the pandemic-related economy benefit from the medical insight that their products provide.
2020 BETTER
INDIVIDUAL HEALTH
INSURANCE PREMIUM
(EMPLOYER SPONSORED)
Ranked 38th
$6,910 15
SPOTS
National Average: $7,149 FROM 2019
2020 WORSE
WORKERS’
COMPENSATION
PREMIUMS
Ranked 17th
112%
National Average 100%
11
SPOTS
FROM 2018
BETTER
UNEMPLOYMENT
TAX RANKING
2020
Ranked 19th 2
SPOTS
FROM 2019
2019 WORSE
COST OF LIVING Ranked 20th
98
National Average: 100
3
SPOTS
FROM 2018
Workforce:
Historic challenges continue
A s businesses work to rebound from a COVID-19 economy, the workforce challenges they faced in prior years
seem dwarfed by the historic challenges that they face today. The worker shortage has reached more than 300,000
in Minnesota. And while the state still boasts a highly educated workforce, labor participation has eroded, with nearly
111,000 citizens currently unemployed. Migration continues to challenge the pipeline, with Minnesota losing talent to
other states. And Minnesota’s achievement gap remains the worst in the nation, widening the gap of opportunities between
white students and students of color.
2019 WORSE
ON-TIME
HIGH SCHOOL
GRADUATION RATE
Ranked 36th
84% 2
SPOTS
National Average: 86% FROM 2018
WORSE
1
2010-2020
NET DOMESTIC Ranked 29th
MIGRATION (37,326) net loss SPOT
FROM 2010-2019
NET 2010-2020
Ranked 18th SAME
INTERNATIONAL RANKING
IMMIGRATION 125,999 gain AS 2010-2019
Empowering Minnesota’s
Minnesota Chamber advocacy is further bolstered by
the 40-plus partners who are unified as the Minnesota
economic future
Chamber Federation – local chambers of commerce that
adopt and advocate for your top legislative priorities.
Minnesota: 2030
Fargo Moorhead West Fargo Chamber of Commerce
Faribault Area Chamber of Commerce and Tourism
Fergus Falls Area Chamber of Commerce
Glenwood Lakes Area Chamber of Commerce A forward-thinking report providing
Grand Forks/East Grand Forks Chamber of Commerce a framework for economic growth
Grand Rapids Area Chamber of Commerce in Minnesota.
Greater Mankato Growth
Greater Stillwater Chamber of Commerce
Hastings Area Chamber of Commerce & Tourism Bureau
Hibbing Area Chamber of Commerce
Contributions
Hutchinson Area Chamber of Commerce and Tourism
International Falls Area Chamber of Commerce
Lakeville Area Chamber of Commerce
Laurentian Chamber of Commerce of immigrants
Litchfield Area Chamber of Commerce
Marshall Area Chamber of Commerce
in Minnesota
MetroNorth Chamber of Commerce A study on how immigrant
New Ulm Area Chamber of Commerce
entrepreneurs, workers drive
Northfield Area Chamber of Commerce & Tourism
Owatonna Area Chamber of Commerce & Tourism Minnesota’s economy.
Pipestone Area Chamber of Commerce and Visitor’s Bureau
Redwood Area Chamber of Commerce & Tourism
River Heights Chamber of Commerce
Rochester Area Chamber of Commerce
St. Cloud Area Chamber of Commerce
Shakopee Chamber of Commerce
Grow
Southwest Metro Chamber of Commerce Minnesota!
data
Twin Cities North Chamber of Commerce
Waconia Chamber of Commerce
Waseca Area Chamber of Commerce
White Bear Area Chamber of Commerce Real-time private-sector
Willmar Lakes Area Chamber of Commerce data from the state’s premier
Winona Area Chamber of Commerce business assistance program.
Woodbury Area Chamber of Commerce
Worthington Area Chamber of Commerce