An Overview of the Twin Cities Economy
If you are looking for an economically robust metropolitan region with a wealth of amenities to boot, look no further than Minneapolis-Saint Paul. The Twin Cities region is a major commercial center with a convenient, central location in the US. With its strong, diversified business foundation and beautiful natural surroundings, Minneapolis-Saint Paul continues to enjoy steady increases in population, economic stability, and housing growth. In fact, the annual job growth rate of 2% exceeded the national rate of 1.4% in 2006.
Sixteen of Fortune 500's Largest US Corporations are located in the Twin Cities region, in addition to over thirty Fortune 1000 companies and many large private companies. The region is also considered to have one of the largest concentrations of technology-based businesses in the nation with over 1,300 firms headquartered or operating in the area. Technology growth in the area is enhanced by the available work force - the University of Minnesota and other colleges and technical schools provide excellent training in the fields of applied research, science, and engineering.
The Ninth Federal Reserve District is headquartered in Minneapolis. Seven of the nation's largest banks and financial institutions are based in the Twin Cities market in addition to many local banks, venture capital companies, savings and loans, and insurance companies. These factors make the Twin Cities area the financial center of the Upper Midwest and have played a major role in the economic development of the region.
The primary manufacturing markets in the Twin Cities region are electronics, milling, machinery, medical products, food processing, and graphic arts. Moreover, with the Mall of America and other major retail venues, the Twin Cities area is considered a top retail sales center among other major metropolitan areas in the US.
Among the largest cities in the US, the Minneapolis-Saint Paul metro area has one of the lowest costs of living. Food and housing costs remain below the national average which makes the Twin Cities area an affordable and highly-desirable place to live - especially given the natural beauty, diverse culture, and ample amenities in the area.
A plentiful and highly-educated workforce combined with the availability of private and government funds have played a major role in fueling the local Twin Cities economy. Billions of dollars were invested in recent years in construction and re-development such as the expansion of the Nicollet Mall, the innovative skyway system in Minneapolis, the Hiawatha light rail, and many other infrastructure improvements. Naturally, such projects bring more businesses and jobs to the area.
More people have discovered the Minneapolis-Saint Paul area as a great place to start a new business or run their small businesses. There are several local and federal government programs to assist Twin Cities businesses with financing needs as well as tax credits, foreign income deductions, and sales tax exemptions or reductions. Local job training and placement programs assist both job-seekers looking for work and employers seeking out new talent.
As a result of the region's business and development dynamics, the Twin Cities area continues to enjoy a low unemployment rate which furthers the strength of the local economy. Several of the world's most recognizable consumer product companies can trace their roots to the Twin Cities area including Tonka Toys, General Mills, Target, Best Buy, Land O'Lakes, Hormel, Pillsbury, 3M, and Schwan's Foods. And with more than 90% of all major industries represented, Minnesota's economy is touted as one of the most diverse economies in the nation.
Minnesota's 10 Largest Publicly Held Companies
(2007 Fortune 500, Ranked by Revenue)
- Target Corporation, Minneapolis
- UnitedHealth Group, Minnetonka
- Best Buy Company, Eden Prairie
- St Paul Travelers, Saint Paul
- Supervalu, Eden Prairie
- 3M, Maplewood
- US Bancorp, Minneapolis
- Northwest Airlines, Eagan
- CHS, Inver Grove Heights
- General Mills, Golden Valley