In November 2023, the Minnesota Department of Employment and Economic Development (DEED) announced nearly $7.5 million in business expansion funding, that was expected to create 430 jobs and leverage more than $270 million in outside investment at six businesses. The funding announced last November comes from DEED’s Job Creation Fund (JCF) and Minnesota Investment Fund (MIF).
DEED Commissioner Matt Varilek said at the time, “DEED is dedicated to the growth and success of businesses statewide, helping them invest in their communities and create new jobs for Minnesotans. These awards will help ensure Minnesota’s business ecosystem remains healthy and thriving.”
Healthcare is the largest industry in Rochester, MN. The city contains a medical school associated with Mayo Clinic and the Mayo Institutes. (Photo: Adobe Stock/Sean Pavone Photo)
The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Eligible companies may receive up to $2 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements.
The Minnesota Investment Fund provides financing to help add new workers and retain high-quality jobs, with a focus on industrial, manufacturing and technology-related industries. Funds are awarded to local units of government, which provide loans to assist expanding businesses. Some of the loans may be forgiven if specific goals are met.
Here are the most recent recipients of the Minnesota DEED funding:
Boston Scientific Corporation, Maple Grove, MN (JCF $1,750,000, MIF $4,250,000): Boston Scientific Corporation pursues medical solutions that improve the health of patients around the world. The company plans to build a new site that will include 400,000 square feet of new research and development labs, office/support space and customer facing training spaces. The anticipated total project cost is $170 million and is expected to create approximately 300 jobs within the first three years.
Kannegiesser ETECH, Minneapolis, MN (JCF $175,000): Kannegiesser ETECH is a manufacturer of laundry processing equipment and brings completely integrated automated equipment solutions to the market for laundry operators. The proposed project will expand the current facility in Minneapolis and allow for additional manufacturing, production and office space. The total project cost is $5 million and is expected to create 36 new jobs within the first three years at an average cash wage of $25.69 per hour.
Natural American Foods Inc., Lakeville, MN (MIF $140,000): Natural American Foods LLC, doing business as Sweet Harvest Foods, is a natural sweetener processing company. The proposed project will occupy a new, 360,000-square-feet facility consisting of office, product storage and processing space, with an expected total project cost of $6.5 million. The project is expected to create 20 jobs within the first two years at an average wage of $43.72 per hour and benefits of $17.50 per hour.
Solugen will build a biomanufacturing facility in Marshall, MN to produce its low-carbon organic acids. (Photo: MN DEED)
Solugen Inc., Marshall, MN (JCF $760,000): Solugen has pioneered manufacturing platform that converts plant-derived substances into essential materials that have traditionally been produced from fossil fuels. This project involves the construction of a 500,000-square-foot biomanufacturing facility to scale production of Solugen’s low-carbon organic acids. The estimated project cost is $90 million and is expected to create approximately 40 permanent jobs with an average cash wage of $34.35 per hour.
Sunrise Fiberglass LLC, Wyoming, MN (MIF $160,000): Sunrise Fiberglass LLC, a National Composites company, builds parts for cranes, skid-steers, paving equipment, mining equipment, trains, underground infrastructure and more. The proposed project will add 20,000 square feet to the existing facility in Wyoming, with a total project cost of $3.6 million. The project is expected to create 23 new jobs within the first two years at an average cash wage of $25.95 per hour.
Upper Lakes Foods, Inc., Cloquet, MN (JCF $220,000): Upper Lakes Foods, Inc. is a full-line, full-service broadline food distributor serving customers in the Upper Midwest. The proposed project will expand the current Cloquet facility by adding 7,000 square feet of freezer space in the form of a building addition. The anticipated total project cost is $2.7 million and is expected to create 11 jobs within the first three years at an average cash wage of $24.18 per hour.
2024, Q1 Exports Rise, Boosting Pace From 2023
During the first quarter of 2024, Minnesota exports of goods were valued at $6.7 billion, a 2% increase since the first quarter of 2023, according to data released by DEED earlier this year. Minnesota outpaced the nation as a whole, with U.S. exports of goods unchanged over the year, noted DEED.
Over half of Minnesota’s Top 10 exported products had moderate-to-strong performances in the first quarter. Optic and medical (up 12%), plastics (up 18%), aircraft and spacecraft (up 33%), as well as vehicles (up 26%) led in gains. Vehicle and vehicle parts sales rose in core markets like Mexico (up 38%), as well as in emerging markets such as Australia (up 202%), South Africa (up 317%), and Poland (up 318%).
“The growth we’ve seen in the first quarter compared to 2023 is a promising start to the year,” said DEED Commissioner Varilek. “We’re excited to see strong growth with some of our most important trading partners and from our biggest industries. Increasing global trade can help us create good jobs, help businesses expand and keep our economy growing.”
“We’re excited to see strong growth with some of our most important trading partners and from our biggest industries. Increasing global trade can help us create good jobs, help businesses expand and keep our economy growing.”
— DEED Commissioner Matt Varilek
Sales of Minnesota goods to North America increased by 1%, where rising exports to Mexico (up 20%) were offset by declines to Canada. DEED noted that export losses to Canada that were driven by mineral fuel and oil (down 16%) were partially mitigated by growth in aircraft (up 112%) and vehicle (up 17%) products. Other notable growth segments were cereal grains ($70 million, up 11%) and food by-products ($62 million, up 15%).
Growth performance in many other global regions was robust. The state’s exports grew to Asia (up 7%), the Caribbean, Central and South America (up 12%), Australia-Pacific (up 27%), and the Middle East (up 9%). Exports fell 6% to the EU—despite notable growth markets such as Ireland (up 22%) and France (up 25%)—as well as 13% to Africa.
“The export rebound is great news after declines in the past year,” said Minnesota Trade Office Executive Director Gabrielle Gerbaud. “We continue to focus on international growth opportunities and work with Minnesota companies to expand their reach and make new connections in foreign markets.”
Minnesota exports of goods to nearly 200 countries totaled $25 billion in 2023, down 8% from 2022—a drop that was largely driven by decreased demand for mineral oil and fuel, according to DEED. Removing those products’ impact, Minnesota’s annual exports would have been flat over the year. U.S. exports were also down, by 2%, between 2022 and 2023.
“While we always hope to see an overall increase in exports, the growth we saw in certain industries is impressive,” said Commissioner Varilek when the 2023 data was released. “Nearly 118,000 Minnesotans work in goods and services industries that contribute to exports, we applaud their massive contribution to our economy.”
“Despite continuing global economic concerns and geopolitical disruptions, it is encouraging to see positive inroads made last year in key markets such as Mexico, Ireland and Australia,” said Gerbaud. “We are eager to help companies overcome their export challenges. Our foreign office network provides extensive support to the state’s exporters with timely market insights and assistance with sales expansion around the world.”
For 2023, Minnesota exports of vehicles (up $634 million), optic and medical goods (up $291 million), and aircraft and spacecraft (up $92 million) saw the largest gains. Vehicles exports grew 45% to over $2 billion, largely fueled by Canada (up 45%) and Mexico (up 30%). Exports of optical and medical goods increased 7%, led by Ireland, Belgium, Canada, Costa Rica and South Korea, while those of aircraft and spacecraft were lifted by Germany, Japan, and Canada. The 65% decline in mineral fuel and oil exports that was the underlying source of the state’s annual decrease was driven by a decline in demand from buyers in Canada, a key Minnesota trade partner.
Although Minnesota exports fell to North America (down 12%), Asia (down 13%) and the European Union (down 7%), multiple regions showed promising growth in 2023. Exports increased to Africa (up 41%), the Caribbean, Central America and South America (up 14%) and the Australia-Pacific region (up 26%).
With an eye on expanding trade opportunities Governor Tim Walz led the state’s first trade mission to Australia in November 2023. This included a 35-member delegation from four key Minnesota sectors—medical technology, clean technology, higher education, and agriculture.
Tech Industries Expanding
Growth in the medical technology (medtech) industry will expand with the Minnesota MedTech 3.0 collaboration chosen as one of the 31 inaugural federal Tech Hubs. In October 2023, led by the Minneapolis Saint Paul Economic Development Partnership (Greater MSP), the hub will bring together research institutions, including the University of Minnesota, Minnesota hospitals, medical device manufacturers, and other experts and contributors to integrate artificial intelligence, data science, and device manufacturing.
“Minnesota has been the historic home for medical technology in the United States. As we evolve to include more information and data into our products and processes, this designation cements Minnesota’s future as the go to place for medical technology.”
— Andrew Alleyne, Dean of the College of Science and Engineering, University of Minnesota
“Minnesota has been the historic home for medical technology in the United States. As we evolve to include more information and data into our products and processes, this designation cements Minnesota’s future as the go to place for medical technology,” said Andrew Alleyne, Dean of the College of Science and Engineering. “The U of M College of Science and Engineering is proud to have partnered in the formulation and execution of the MedTech 3.0 concept. Now, we are excited to play a role in delivering on the promise, building new businesses and impacting health outcomes for all.”
In clean tech, the Solugen expansion in Marshall, MN is one example of the growth in that industry. The facility—Bioforge Marshall LLC, a 500,000-square-foot biomanufacturing facility, and owned by Solugen, will utilize Minnesota grown corn to manufacture chemicals usually made from oil, for lower carbon emissions.
The facility will manufacture various organic acids for use in concrete, cleaning, agriculture, and energy industries. Current operations at Bioforge Houston have demonstrated an over 80% reduction in greenhouse gas emissions compared with conventional petroleum-based methods. This project is expected to create up to 100 jobs during construction and 56 highly skilled, full-time manufacturing jobs once fully operational. Construction is expected to be completed by 2025.
In March, the tech sector gained a significant investment with Meta choosing Rosemount, MN to build an $800 million, 715,000-square-foot data center.
Like all of Meta’s data centers, the Rosemount Data Center will be supported by 100% renewable energy.
Said Ryan Long, President of Xcel Energy–Minnesota, North Dakota, and South Dakota. “We are excited to work with Meta to bring energy upgrades to UMore Park, including new transmission lines, that will provide the reliable energy supply needed to power this data center.”
“We are extremely happy to make Minnesota and Rosemount our new home. We are committed to playing a positive role here and investing in the community’s long-term vitality,” said Brad Davis, Director of Data Center Community and Economic Development at Meta. “Rosemount stood out as an outstanding location for our newest data center thanks to its great access to infrastructure, deep pool of talent, and amazing community partners.”
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