The Development Landscape

What determines the course of economic development—or the lack thereof—in Minnesota?

Minnesota’s economy is a force to be reckoned with, especially from the point of view of neighboring upper Midwestern states that tend to lose their best and brightest to Minnesota companies, says Mark Lofthus, business development director at the Minnesota Department of Employment and Economic Development in St. Paul. But the state’s economy is not invulnerable. Its success depends on a web of factors.

We asked experts from around Minnesota to name some of the issues most crucial to the state’s economic development. Some pointed out that the state’s relatively high taxes represent a challenge to businesses. So, also, do issues as diverse as venture capital and direct air transportation.

Certain themes repeated themselves. Almost universally, economic development experts were concerned about skyrocketing health care costs. And all recognized that as the baby boomers retire, the worker shortage will become acute, even in areas that are currently experiencing massive net population growth.

“I could almost be glib and say the top three [issues] are workforce, workforce, workforce,” Lofthus says.

But of course, our sources had a lot more to say than that.