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Minnesota Profile Coastal Zone Information Center HA 451 M56 7,: 7, a"RV, 7 A yo,= cqz of 4- 7,anf. Sr-@ (F, S "7 F, 24- TO'--a-- expendit-ures should xsEie58 11. 45 --972 Conti-ns::c-2-a*'- _-Fo--c-st C-C-S UO 71 evelc-@:Man-'- can "3:'lov-,Cs U@? :P)S:fcsn-': 0:':'a t7he --cm-muni-ty aoeratc-- Minnesota Profile Prepared by State of Minnesota Department of Economic Development 480 Cedar Street St. Paul, Minnesota 55101 11/74 Your Link to State Government Three of the major functions of the Minnesota Department of Economic Development (DED) are: 1) attracting new industry to the state and helping existing industry to expand, 2) counseling communities on economic development and, 3) serving as liaison between the business community and state government. industry Attraction and Expansion 0 Consult with industry regarding expansion needs, and prepare information relating to sites, taxes, labor availability, transportation, utilities, enviromental require- ments and financial assistance. *Compile and publish economic data for industry planning--such as new and expanding, industry reports, manpower data, resource analyses, community and park profiles, available industrial buildings list, industrial revenue bond information, export guides and Minnesota manufacturers directory. OMaintain liaison between industry and industrial realtors, railroads, utilities, developers, chambers of commerce, development corporations and other commercial and civic organizations. OMaintain contact with and disseminate information to major companies throughout the world to acquaint them with economic facts about Minnesota, its advantages to industry and the services of the Department of Economic Developnent. OAdvertise nationally the advantages of Minnesota and its business and industrial opportunities. OAssist Minnesota manufacturers in developing international markets. 0 Conduct joint business trips with business leaders and members of economic devel- opment organizations to call on business and industry in other areas to encourage expansion of their facilities to Minnesota. ing Communit Economic Development Counseli OAssist in developing comprehensive community economic and industrial promotion and expansion programs and guide communities in preparing, publishing and presenting economic data for promotional purposes. OHelp form community industrial development corporations and industrial sales teams to properly promote marketable community assets. OAid communities in selecting, developing and promoting industrial sites and parks, and assist in attracting and screening industrial prospects. OConduct economic and industrial development seminars for specific communities, development groups or other interested agencies and individuals. OHelp induvidual communities,maintain a stable economic base through local industry promotion. Business Conmunity/State Goverment Liaison 0 Serve as industry's prime contact with state goverment. OAssist in channeling state, federal and local governmental programs, projects and policies to aid the business community. Contents GENERAL FACTS Quality of Life ................................ 1 Vital Statistics ...................................... .. .. .. .. . ...... 3 Land Use in Minnesota ........................................................ 4 Kineral and Building Stone Resources ......................................... 4 Topography ............................ I ....................................... 5 HUMAN RESOURCES Population ............ ........................................................ 6 1970 Minnesota Population 6 Population by Development iegions, 1960 and 1970 ............................. 7 Population by Residence and Race ......... .................................... 8 Population Projections ....................................................... 8 Personal Income, Work Force and Employment ..................................... 9 Personal Income in Minnesota by Major Source, 1972 ........................... 9 Civilian Work Force in Minnesota ............................................. 10 Minnesota Work Force by Sex and Age Croup ..................................... 10 Work Force and Employment in Minnesota, 1967-1973 ............................ 11 Employment, Hours and Earnings in Minnesota's Nonagricultural Industries ..... 12 Population, Employment, Personal Income and Earnings by Industry, 1969-1990 .. 13 Job Opening Rates in Manufacturing ........................................... 14 Seasonally Adjusted Durable Goods Manufacturing Employment ................... 14 Education ..... ........ 15 **;:e s Public Colleges Univer i ............................................. 15 Community Colleges and Private Junior Colleges ............................... 16 School Enrollment ............................................................ 16 Area Vocational Technical Institutes ......................................... 17 Manpower Needs and Occupational Forecasts .................................... 17 Growth of Minnesota's Public Schools, 1963-1972 .............................. 18 ECONOMIC RESOURCES Business and Industry .......................................................... 19 Land of the Giants ............................................................ 20 Headquarter Companies ........................................................ 21 Ranking of Minnesota Industrial Groups by Standard Industrial Classifications. 22 Minnesota Travel Expenditures ................................................. 24 Minnesota's 1973 New and Expanding Industry .................................. 25 New and Expanding Industry Tables ............................................. 26 Minnesota's Role in International Trade ...................................... 31 Manufactured Exports and Agricultural Exports ................................ 32 Agribusiness ................................................................... 33 Farmland Acreage in Minnesota ................................................. 33 Minnesota's 1973 Rank Among States in Agricultural Production ................. 34 1973 Production of Selected Crops ............................................ 35 1973 Small Grain Production .................................................. 35 Livestock and Poultry Numbers ................................................ 36 Agricultural and Forestry Production by Commodity Groups ...................... 37 Value of Agricultural Production by Commodity Groups ......................... 38 Cultivated Land and Soil Fertility ........................................... 39 continued ECONOMIC RESOURCES (continued) Mining ................................................. ........................ 40 Minnesota's Iron Mining Employment ........................................... 40 Minnesota's Mining Industry as a Personal Income Generator ................... 41 Minnesota's Iron Ore Shipments as a Percent of U.S. and World ................ 41 Minnesota's Taconite Industry ................................................ 42 Mineral Production in Minnesota .............................................. 44 Forestry ........................................................................ 45 1972 Commercial Forest Acreage by Ownership .................................. 45 Minnesota Pulpwood Production by Species 46 Minnesota Pulpwood Production and Destination ................................ 47 Active Woodpulp Mills in Minnesota ........................................... 48 Forested Areas ............................................................... 48 Minnesota Total Timbercut .................................................... 49 Energy, Transportation and Communications ....................................... 49 Total Minnesota Energy Consumption, 1971 ..................................... 49 Pipelines ............... 50 Minnesota,Annual Fuel Consumption ............................................. 50 Generating Plants, Existing and Committed .................................... 51 Private and Commercial Trucks in Minnesota ................................... 52 Motor Freight Service frcm Minneapolis-St. Paul .............................. 52 Minnesota's Highway System ................................................... 53 Railroad Transportation in Minnesota ......................................... 54, Basic Rail Network in Minnesota .... ......................................... 55 Rail Service from Minneapolis-St. Paul .... 55 Minnesota's Airports and Scheduled Air Service ............................... 56 National Air Service from 'Minneapolis-St. Paul ............................... 56 International Air Service from Minneapolis-St. Paul .......................... 57 Port of Duluth ............................................................... 57 Ports of Minneapolis-St. Paul ................................................ 57 Waterway Service from Minnesota .............................................. 58 Principal Newspaper Publication Centers ...................................... 59 Television Broadcasting Centers .............................................. 59 Financial Aids and Taxation .................................................... 60 ,Municipal Industrial Development Bonds ....................................... 60 Economic Development Administration .......................................... 60 Tax Increment Financing ...................................................... 61 Small Business Administration ................................................ 61 U.S. Department of Agriculture ............................................... 62 U.S. Department of the Interior .............................................. 62 U.S. Department of Veterans Benefits ......................................... 63 Major Taxes Affecting Business ................................................ 63 Major Taxes Affecting Individuals ............................................ 64 Quality of Life Minnesota,.Land of Sky Blue Waters ' lush forests, fertile soils and fresh air in abundance, has assumed a strong position in the nation's industrial economy. Though lumbering, iron ore mining, wheat farming and flour milling are not as dominant as in the past, these industries still are major components of Minnesota's economy. Agriculture is no longer paramount, but it still remains a vital force in the state's economy. INDUSTRIAL DIVERSIFICATION A continuing process of industrial diversification, beginning about three decades ago, has moved Minnesota into a position of industrial leadership in the United States. Honeywell, The 3M Company, and Control Data, three of the world's science giants were created in Minnesota. So, too, are aerospace products, graphic arts, automobiles, glass, paper, paints and machinery of all kinds included in the diversification. Familiar household names are Betty Crocker, Scotch Tape, Chun-King, the Jolly Green Giant, Cream of Wheat, Hormel meats, and Arctic Cat and Polaris sno-vmbiles. A-11 are products of Minnesota minds and labor. Industrialization has not been confined solely to the state's metropolitan areas. Expenditures and jobs from new plants and expansions in outstate Minnesota have outpaced those for the Minneapolis-St. Paul metropolitan area in recent years. While the increase in population and nonagricultural employment was higher for the Twin Cities during the past decade as compared to the non-metropolitan area, the percentage increase in manufacturing employment was higher in the non-metropolitan area of the state. NATIONAL PROMINENCE Minnesota achieved national prominence recently when it was featured in a cover story by Time magazine. The 12-page editorial and pictorial commentary, called "Minnesota: A State That Works," said that Minnesota is a 11 . .. . state where a residual American secret still seem to operate. Some of the nation's more agreeable qualities are evident there: courtesy and fairness, honesty, a capacity for inno- vation, hard work, intellectual adventure and responsibility." The article was complimentary toward the integrity of Minnesota's governmental operations saying that "Politics is almost unnaturally clean -- no patronage, virtu- ally no corruption." There were several other features that the publication commented on as contributing to the special kind of life that can be found in Minnesota. Time said, "The citizens are well educated; the high school dropout rate, 7.6 percent@,is the nation's low-est. Minnesotans are remarkably civil; their crime rate is the third lowest in the nation. By a combination of political and cultural tradition, geography and sheer luck, Minnesota nurtures an extraordinarily successful society." The article also pointed to Minnesota's business community as being ready to met its social responsibilities. "Part of Minnesota's secret lies in people's extra- ordinary civic interest ... The Mayo Foundation has offered to invest $1,000,000 in face-lifting the downtown district of Rochester. The IBM plant there has given employees leaves of absence, with pay, to work on public interest projects. At the Mayo medical complex itself, now in the midst of its largest expansion in history, Honeywell, 3M Company and other big state-based corporations have been major contrib- utors to a $100 million fund drive. The companies' concerns are reflected in their annual reports; most of them carry a section called 'Social Concerns,' or some such." If there are major problems for business in Minnesota, one of the key ones may be getting employees to leave the state. Time pointed out that "Indeed, one personnel problem in the large corporations is that executives transferred to Minne- sota are so reluctant to leave that they would often rather quit and find other work there than accept a transfer." As one young executive, who followed that course of action said, "Many places are nice, but none is better than Minnesota." GROWING LABOR FORCE The motive force behind Minnesota's diversifying industrial strength has been a highly productive and readily trainable labor force. The stock of Minnesota is largely northern European, and its people are still close enough to the concepts of the artisans that they have the ability to absorb the new technological skills required by the broadened base of industries. To match the growing science industry demands, Minnesota has built up a substan- tial force of scientific manpower. The National Register gives the state eighth place in the United States in terms of scientists in the labor force. Historically, Minnesota's unemployment rate has been significantly below the national average, indicating economic stability. However, with substantial employment in defense related industries and with sharp federal cutbacks therein, the state's unemployment rate has equalled the national average for the past two years. In the past decade and a half, Minnesotans have chalked up one of the nation's best on-the-job safety and attendance records. Though union membership is heavy in many parts of the state, Minnesota has maintained a comparatively clean strike record. For example, in 1971 Minnesotans lost only .21 percent of total work time due to strikes, while the United States average was .26 percent. Minnesota's work force has traditionally been characterized by good labor relations. EDUCATIONAL EXCELLENCE Minnesota's force is the product of educational excellence. Whether it trains a disciplined scientific mind, a skilled factory-line worker or an ambitious entrepreneur, the state's educational system is capable of turning out Workers of the highest quality. Proof of that educational strength is the fact that Minnesota consistently places among the lowest states in percent of draftees rejected for failure to pass mental tests. Rejection rates for Minnesotans are only one-fifth the national average. For the past five years, the state has ranked.lowest three times. Heavy per-pupil investment of more than $1,039 per year (13th highest in the nation) may be one reason that Minnesota consistently ranks near the top in percentage of students completing high school. Over 91.5 percent of ninth graders entering high school complete their education. Approximately 70 percent of high school graduates elect further education. Minnesota's 33 area vocational-technical schools annually turn out several thousand additions to the stc@itels skilled labor force. Many @ave been trained in,programs designed to the specific requirements of industry. Largest of Minnesota's universities is the University of Minnesota which spreads across four state campuses and 12 more research, experimental and branch stations. The Minneapolis-St. Paul campus, which spans both banks of the Mississippi, claims the largest single-campus enrollment of any educational institution in the country, with some 40,000 students. Its graduate school ranks among the top 10 in the number of PhD's conferred annually. 2 Vital Statistics GENERAL Total Area ................................... 84,068 Square Miles Rank in Size among States ..................................... 12 Land Area .................................... 80,009 Square Miles Inland Waters .................................. 4,059 Square Miles Number of Lakes (10 acres and over) ....................... 155291 Length ................................................. 406 Miles Width ..................................... e............ 358 Miles Latitude .................................... 430-301 to 490-231-411 Circumference ........................................ 1,880 Miles Organized as Territory ............................. March 3, 1849 Entered Union 02nd State) .......................... May 11, 1858 Constitution Adopted ........................................ 1858 Motto: "LlEtoile du Nord" (Star of the North) POPULATION (1973) State of Minnesota .......... 3,896,479 St. Paul (Capital) ........... 306,962 Rank among States .................. 19 Duluth ........................ 99,720 Percent Urban .................... 66 Bloomington ................... 86,161 Percent Rural .................... 34 Rochester ..................... . 57,600 Minneapolis-St. Paul SMSA St. Louis Park ................ 50,393 (10 County Area) .......... 1,995,800 Edina ......................... 47,930 Minneapolis ................... 427,860 Richfield ...................... 47,583 CLIMATE Average last spring freeze ... April 20 Annual precipitation .... 24.71 inches Average first fall freeze .. October 13 Annual snowfall ......... 42.3 inches AGRICULTURE (1974). Land in Farms ........ 30,600,000 Average size of farms ...... 259 acres Number of Farms ......... 118,000 Cash farm income(1973)..$4,100,000,000 INDUSTRY (1972) Number of Manufacturing Firms ............................................... 5,800 Value Added by Manufacturing ....................................... $5,551,000,000 NATURAL RESOURCES (1973) Value of Mineral Production .......................................... *853,000,000 Iron Ore Production .......... *782,000,000 Taconite comprised 71% of all iron ore shipped in 1973 Value of Forest Production ........................................... $483,000,000 TOPOGRAPHY Average mean altitude ...... : ........................... 1,200 feet above sea level Highest point: Eagle Mountain ......................... 2,301 feet above sea level Lowest point: Lake Superior shore ....................... 602 feet above sea level Total Forested Lands ............................................. 19,000,000 acres State Parks ..................................................................... 55 State Park Area ................................................... 2,984,000 acres Navigable River Systems: Mississippi, Red River of the North, Minnesota, Rainy, St. Louis and St. Croix 3 Land Use in Minnesota Acres Percentage Forested 18,384,800 33.7 Cultivated 23,743,360 43.5 Pasture and open 6,013,280 11.1 Water 3,293,960 6.1 Marsh 1,867,200 3.5 Urban and residential 644,040 1.2 Urban ndxed 550,080 1.0 Extractive 87,280 0.2 Transportation 27,840 0.1 Total 54,611,720 100.0 Source: Center for Urban and Regional Affairs (Unpublished) Mineral and Building Stone Resources vmMain Precambrian iron- bearing f rmations 0 Younger i ron forroati ons =Major magnetic belts w Copper-nickel deposi ts @Igneous'andtmetaniorphi c rocks n ar he surface Sedimentar rocks @near the SyUrface Quarries producing demension stone products A Granite 0 Limestone 4 Topography More than two-thirds of Minnesota is nearly flat or gently rolling ground that lies between 1,000 and 1,500 feet above sea level. Both the lowest and highest points in Minnesota are in the northeastern part, often called Arrowhead Country because of its shape. The highest point is the top of Eagle Mountain in Cook County, 2,301 feet above sea level; the lowest is the surface of Lake Superior, 602 feet above sea level. The rugged Sawtooth Range lies between, marked by bedrock ridges which rise precipitously. In the western part of Arrowhead Country are the Misquah Hills and Giant's Range, a granite ridge rising 50 to 500 feet above the general level of the region. South of Giant's Range is a belt of famous iron-bearing rocks--the Mesabi Range. The northwest and west are lands of flat prairies that merge gradually with the hills of the northeastern forested areas. In the southeast, the gently rolling lands are marked by incised streams and cross-cutting valleys. Drainage Basins Mississippi-Minnesota Basin and Major Management Zones mean IF Voyageurs National Park Flow to Red River Boundary Waters Canoe Area D Flow to Lake Superior C LF Major basin divides M ionally desipated recreation :d conservation use Major agricultural water need :ellrealli nal lilketlev I below 1200 feet elevation d ty quail main an:nce major wate surplus above Mining and processing wastes 1200 feet elevation Eiritting heavy industrial water use T Flow to ississip River Zones are highly generalized 5 Population 1970 Minnesota Population Total 3,804,971 Males 1,863,810 Urban 2,527,308 Females 1,941,161 Urban fringe 973,423 Whites 3,736,038 (Suburban) Blacks 34,868 Rural 1,277,663 Spanish language 23,198 Farm 454,516 How Many? Minnesota's population in the 1970 census totaled 3,804,971, ranking it 19th among the States and the District of Columbia. Its population density was 48 persons per square mile. The 1970 population was 66 percent urban and 34 percent rural. The 1970 total was 12 percent greater than the 1960 population. All of the growth resulted from a net gain due to natural increase of 417,000 (births minus deaths). Minnesota had a net loss of about 25,000 persons during the decade because of people migrating from the State. Minneapolis, the State's largest city, had a 1970 population of 434,400, a decrease of 10 percent from 1960. The 1970 population in the Minneapolis- St. Paul Standard Metropolitan Statistical Area was 1,813,647, a 22 percent increase over 1960. Other cities of 25,000 or more with their 1960-70 percentage changes were: St. Paul 309,980 - 1% Rochester 53,766 +32% Duluth 100,578 - 6% St. Louis Park 48,883 +13% Bloomington 81,'970 +62% Richfield 47,231 +11% St. Cloud .39,691 +17% Sex of the Population. There were 96.0 males per 100 females in Minnesota during 1970. In 1960, there were 98.4 males per 100 females. POPULATION BY AGE 1960 1970 Percent Age,of the Population. U ET-thousands) Change The median age of the Minnesota 0-4 416 332 20.3 population was 26.8 years, compared 5-9 381 403 5.8 with 28.1 years for the U.S. Of 10-14 325 115 27.8 Minnesota's 1970 population, 15-19 251 373 48.6 408,919 were 65 and older and 20-24 195 202 49.4 331,771 were under 5 years old. 25-29 193 250 29.2 The total of school age, 5 to 30-34 206 207 0.1 17, was 1,049,716 and the college 35-39 211 193 8.7 age group, 18 to 21, numbered 40-44 205 203 1.1 262,592. The remainder, 22 to Q) 45-49 194 203 4.5 64, totaled 1,751,973. 50-54 176 194 10.1 55-59 160 177 10.7 60-64 146 155 6.4 65-69 131 130 0.9 Source: 1970 U.S. Census of Population 70-74 102 110 8.0 U.S. Department of Commerce 75+ 121 169 39.3 6 Population by Development Regions KITSON ROSEAU A HALL OF 1H POLK LAKE COOK KOOCHICHIN A 1111A 2 MAN MEN AITKIN T L Is A LT WILKIN 5 ODD Planning and Development RANT DOUGLAS MORRIS 7E Regions represent a grouping of counties based on natural, V NS IIA" I social and economic factors TONE 7 and were established to WRICHT facilitate statewide program @6 ME RE planning, aggregation of LA QU111I NEPIN PAR if ILL CARVE statistical data and local E DAKOT 0 10 25 50 ODD GOODHU intergovernmental cooperation. LY N WN Sa UR WA ASH URRAY a:- ED WINONA OCR NOBLES I M RE HO STON Region 1960 % of Total 1970 % of Total % Change 1960-70 1 100,492 3.0 94,579 2.5 - 5.9 2 52,896 1.6 54,594 1.5 3.2 3 344,957 10.1 329,873 8.7 - 4.4 4 183,511 5.4 185,376 4.9 1.0 5 110,813 3.3 113,624 m 2.5 6E 96,524 2.8 98,159 2.6 1.7 6W 69,063 2.0 61,809 1.7 10.5 7E 67,520 2.0 76,351 2.0 13.1 7W 140,428 4.1 173,518 4.6 23.6 8 149,268 4.4 141,532 3.8 5.2 9 212,563 6.2 218,077 5.8 2.6 10 360,332 10.6 383,369 10.1 6.4 11 1,525,488 44.7 1,874,110 49.3 22.9 Total 3,413,864 3,804,971 11.5 Source: U.S. Bureau of theCensus 7 Population by Residence and Race (Real and.Projected) 1973 1974 1978 Total state population 3,903,585 3,936,413 4,080,734 Rural 1,268,665 1,263,589 1,252,285 Urban 2,634,920 2,672,824 2,827,949 White 3,836,053 3,868,313 4,010,137 Negro 35,523 35,821 37,135 Indian 23,031 23,225 24,076 Other Minority 8,978 9,054 9,38 .6 Source: Minnesota Department of Education Division of Vocational Technical Education Population Projection 1 (in thousands) Age 1960 1970 1980 1990 Under 20 1,373 ( 40.2%) 1,523 ( 40 '0%) 1,460 ( 35.1%) 1,485 ( 32.8%), Metro 604 ( 39.6%) 751 ( 40.0%) 797 ( 35.2%) 896 ( 33.1%) Non-Metro 769 ( 40.7%) 772 ( 40.0%) .663 ( 35.0%) 589 ( 32.3%) 20-34 595 ( 17.4%) 748 ( 19.7%) 1,049 ( 25.2%) 1,105 ( 24.4%) Metro 300 ( 19.7%) 426 ( 22.8%) 637 ( 28.2%Y 703 ( 26.0%) Non-Metro 295 ( 15.6%) 322 ( 16.7%) 412 ( 21.7%) 402 ( 22.0%) 35-64 1,092 ( 32.0%) 1,125 29.6%) 1,207 ( 29.1%) 1,483 ( 32.7%) Metro 481 ( 31.5%) 534 28.5%) 648 ( 28.7%) 903 ( 33.4%) Non-Metro 611 ( 32.4%) 591 30.6%) 559 ( 29.50- 580 31.8%) over 65 354 ( 10.4%) 409 10.7%) 439 ( 10.6%) 458 10.1%) .Metro 140 ( 9.2%) 164 8.7%) 178 ( 7.9%) 204 7.5%) Non-Metro ' 214 ( 11.3%) 245.( 12.7%) 261 ( 13.8%) 254 13.9%) Total 3,414 (100.0%) 3,805 (100.0%) 4,155 (100.0%) 4,5 31 '(100.0%) Metro 1,525 (100.0%) 1,874 (100.0%) 2,261 (100.0%) 2,705 (100.0%) Non-Metro 1,889 (100.0%) 1,931 (100.0%) 1,894 (100.0%) 1,826 (100.0%) Source: "Minnesota Population Data Book - 197211 Minnesota Department of Health 8 Population. Projection 2 (in thousands) U.S. (1) Minnesota % of U.S.- 1950 151,326 2,982 (1) 1.97 1960 179,975 3,425 (1) 1.90 1970 203,810 @,805 (1) 1.87 1980 236,725 4,180 (2) 1.77 1990 269,759 4,619 (2) 1.71 Sources: (1) U.S. Bureau of the Census (2) "Minnesota Population," Middle Projection, Minnesota Department of Health Personal. Income, Work Force and Employment Personal Income in Minnesota by Major Source, 1972 Personal income 1972 (Dollars in millions) 16,746 Wage and salary disbursements 10,890 Farms 64 Mining 143 Contract construction 724 Manufacturing 2,911 Wholesale and retail trade -2,062 Finance,insurance and real estate 559 Transportation, communication, public utilities 893 Service 1,472 Goverment 2,043 Other 19 Other labor income 667 Proprietors' income 1,691 Property income 2,357 Transfer payments 1,775 Less contributions to social insurance 634 Source: U.S. Department of Commerce, Office of Business Economics 9 Civilian Work Force in Minnesota (annual average in thousands) Civilian Percent Year Work Force Employed Unemployed Unemploymen@ 1960 1387.7 1320.6 67.1 4.8 1961 1401.9 1317.9 84.1 6.0 1962 1411.1 1342.7 68.4 4.9 1963 1419.4 1349.7 71.6 5.0 1964 1429.7 1362.1 68.7 4.8 1965 1451.9 1397.6 56.7 3.9 1966 1488.7 1442.5 46.2 3.1 1967 1521.1 1475.0 46.1 3.0 1968 1554.9 1507.4 47.5 3.1 1969 1604.3 1557.6 46.7 1970 1639.3 1566.8 72.5 4.4 1971 1655.0 1557.7 97.3 5.9 1972 1593.1 94.5 5.6 1973 1766.9 1683.3 82.5 4.7 Source: Minnesota Departnent of Dnployment Services Minnesota Work Force by Sex and Age Group 1970 Total Work Force (in thous@lids) Percent change 1960-1970 Age Male Female Age Male Female 65+ 45 25 65+ 'Z @7-. -+20% 45-64 320 200 45-64 + 2% +22% 35-44 190 100 35-44 - 5% +21% 25-34 220 100 25-34 +16% +65% 20-24 110 100 20-24 +37% +92% 18-19 45 50 18-19 +55% +57% 16-17 40 35 16-17 +45% +65% 14-15 10 8 14-15 +21% +35% Source: U.S. Departnent of Cormnerce, Bureau of the Census 10 Work Force and, Employment in Minnesota (Annual average in thousands) 1967 1969 1971 1972 1973 Civilian work force 1521.1 1604.3 1655.0 1690.5 1766.9 Unemployment 46.1 46.7 97.3 94.5 82.5 Unemployment rate M 3.0 2.9 5.9 5.6 4.7 Employment (1) 1475.0 1557.6 1557.7 1593.1 1683,.3 Agriculture 145.2 134.2 125.9 121.6 126.1 Non-agriculture (2) 1327.7 1422.7 1430.2 1470.0 1557.2 Wage and salary 1201.1 1302.7 1311.6 1351.4 1436.6 Manufacturing 302.8 332.0 299.4 307.5 331.0 Durable goods 169.3 192.7 165.8 170.9 190.7 Luz-rber-wood products 6.7 7.4 7.4 8.2 9.0 Furniture and fixtures 3.5 3.6 4.1 4.4 4.9 Stone, clay and glass products 7.3 7.8 7.6 6.9 8.7 Primary metal products 7.0 7.5 6.4 5.6 6.6 Fabricated metal products 19.0 21.1 19.0 20.6 23.0 Nonelectrical machinery 58.3 66.6 57.7 60.4 66.6 Electrical machinery 26.4 30.9 23.1 23.6 28.9 Transportationequipment 6.7 10.4 11.3 11.2 11.6 Other durable goods 34.4 37.4 29.3 30.0 31.4 Nondurable goods 133.5 139.4 133.6 136.7 140.3 Food and kindred products 57.4 57.2 53.8 53.3 51.2 Textile mill products 2.6 2.9 2.8 2.9 3.3 Apparel and other fabric products 8.2 7.5 7.6 8.4 9.5 Paper and allied products 28.2 31.2 30.3 30.8 32.8 Printing and publishing 22.5 24.2 23.6 24.8 25.7 Chemicals, products of petroleum 7.7 8.4 8.2 8.4 8.1 Rubber and leather products 7.0 8.1 7.4 8.2 9.6 Non-manufacturing 898.3 970.7 1012.2 1043.9 1105.6 Mining and quarrying 14.4 14.5 13.9 13.0 14.1 Metal mining 12.8 13.1 12.7 11.8 12.8 Construction 61.1 67.6 63.2 60.0 67.4 Transportation 56.7 59.2 56.0 56.7 60.0 Communication and public utilities 27.7 28.3 29.6 29.9 30.7 Retail trade 208.9 228.3 237.4 249.1 265.3 Wholesale trade 74.2 78.6 81.7 83.2 86.9 Finance, insurance and real estate 56.8 62.1 65.0 67.2 71.4 Services 184.5 207.9 225.7 238.9 254.8 Government 214.1 224.1 239.7 246.0 255.2 (1) Includes workers involved in labor-management disputes. (2) Includes domestics and non-agricultural self-employed and unpaid family workers not shown separately. Source: Minnesota Department of Employment Services 11 Hours and Earnings in Minnesot a's Nonagricultural Industries (Annual Average 1973) Production Workers' Hours 9 Earnings Average Average I Average We@ Earnings Weekly Hours Hour@y Earnings MANUFACTURING $172.87 41.1 $4.21 Durable Goods 176.99 41.6 4.25 Lumber & Wood Products 161.67 41.3 3.91 Furniture & Fixtures 163.36 40.4 4.05 Stone, Clay & Glass 177.28 41.1 4.31 Primary Metals 200.71 43.0 4.67 Fabricated Metals 178.09 41.0 4.34 Nonelectrical'Machinery 182.19 42.1 Electrical Machinery 172.34 41.4 4.17 Transportation Equipment 175.14 40.0 4.38 Other Durable Goods (1) 173.86 42.4 4.10 Nondurable Goods 166.95 40.3 4.14 Food & Kindred Products 163.33 39.8 4.10 Textile Mill Products 129.35 41.3 3.13 Apparel 97.10 38.5 2.52 Paper 9 Allied Products 206.81 46.6 4.44 Printing 9 Publishing 180.42 37.0 4.88 Chemical Products 157.89 38.3 4.12 Petroleum Products 204.23 45.6 4.51 Rubber & Leather Goods 147.11 38.4 3.83 MINING 202.24 41.0 4..93 Metal Mining 200.91 41.1 CONSTRUCTION 281.34 37.4 7.51 Building Construction 275.04 37.2 7.39 Highway & Heavy Const. 262.75 38.5 .6.83 Special Trades Contracting 289.90 36.5 7.93 TRANSPORTATION 211.73 39.7 5.40 PUBLIC UTILITIES 195.11 39.6 4.93 TRADE 119.37 33.0 3.62 Retail Trade 102.62 31.0 3.31 General Merchandise 87.32 29.7 2.94 Food Stores NA NA ILA Eating & Drinking Places 56.68 25.2 2.25 Wholesale Trade 177.32 39.8 4.45 (1) Includes Ordnance, Scientific Instruments 9 Misc. Ind. NA not available Source: Minnesota Department of Employment Services 12 Population, Employment, Personal Income and Earnings by Industry (Real and Projected) 1969 1971 1980 1990. Population, midyear 3,758,000 3,860,000 4,119,400 4,553,100 Per capita income (19670 3,320 3,426 4,790 6,211 Per capita income relative (U.S.=100) 97 97 100 101 Total employment 1,494,408 NA 1,824,300 2,031,500 Employment/population ratio .39 NA .44 .45 (In thousands of 1967 dollars) Total personal incane 12,477,823 13,225,759 19,731,000 28,279,,000 Total earnings 10,084,003 10,539,507 15,672,500 22,214,800 Agriculture, forestry and fisheries 657,262 691,105 750,800 826,000 Mining 130,187 131,754 148,200 161,000 Metal 118,195 119,264 132,300 142,700 Crude petroleum and natural gas 615 530 NA NA Nonmetallic, except fuels 11,376 11,927 15,300 17,600 Contract construction 709,599 733,870 1,082,000 1,484,100 Manufacturing 2,656,541 2,511,247 3,840,900 5,270,700 Food and kindred products 437,520 433,872 531,800 597,600 Textile millproducts 16,186 15,734 20,700 26,000 Apparel,and other fabric products 33,792. 34,573 46,700 53,600 Lumber products and furniture 75,971 77,957 108,400 143,300 Paper and allied products 279,945 280,112 426,300 584,500 Printing and publishing 180,247 183,914 272,100 381,800 Chemicals and allied products 51,323 54,510 86,000 118,900 Petroleum refining 23,684 26,597 356,600 47,600 Primary metals 62,696 57,545 69,800 80,200 Fabricated metals and ordnance 271,095 225,140 339,500 451,900 Machinery, excluding electrical 577,718 527,758 881,900 1,284,500 Electrical machinery and supplies 248,,918 190,634 378,300 586,000 Motor vehicles and equipment 50,034 54,797 78,700 107,600 Trans. equip., excl. mtr. vehs. 36,820 46,952 77,600 109,600 Other manufacturing 310,590 301,150 486,800 696,900 Trans., comm. and public utilities 735,950 782,957 1,092,400 1,501,800 Wholesale and retail trade 1,844,757 1,963,651 2,735,800 3,737,500 Finance, insurance and real estate 501@255 540,567 854,600 1,285,500 Services 1,443,446 1,565,415 2,743,500 4,jl3,900 Goverment 1,405,016 1,618,949 2,423,800 3,633,900 Federal civilian goverment 244,995 271,650 393,400 578,500 State and local goverment 1,088,635 1,275,013 1,957,400 2,964,300 Federal military 71,388 72,273 72,900 Source: Survey of Current Business, April, 1974 13 Job Op ening Rates in Manufacturing 2.5 LO 2.0 CD C) 1.5 Minnesota 1.0 United States 0.5 0 1967 1968 1969 1970 1971 1972 1973 1974 Seasonally Adjusted Durable Goods Manufacturing Employment 210 12.6 U) 200 12-.0 0 L)hited State C/3 190 11.4 180 10. 8 U) Minnesota 170 10.2 0 1967 1968 1969 1970 1971 1972 1973 1974 0 Source: Minnesota'Department of Employment Services 14 Education Minnesotans place a high priority on educational facilities and excellence in education. The following national rankings illustrate educational attainment: 1. Minnesota has consistently led or been in the top six states in the nation for the past years in percentage of persons passing the mental aptitude section of the Armed Forces Qualification Test. 2. Among metropolitan areas, Minneapolis/St. Paul ranks fourth in the percentage of "some.college training" among heads of households. 3. Minnesota ranks among the top ten states in the number of Ph.Dls per million population, and the University of Minnesota ranks among the top ten universities in the nurrber of Ph.Dls conferred annually. 4. Minnesota high schools, according to a National Education Association (NEA) report released in 1971, had the highest percentage of ninth graders completing high school. Minnesota had 92.4% compared to the national average of 79.1%. According to the NEA's most recent statistics in 1969-70, Minnesota led the nation in percent of ninth graders, graduating four years later with 92.4%. Listed below are the top five states and U.S. average. State: Minnesota Iowa California Hawaii Maine U.S. Place: 1 2 3 4 5 % Graduated: 92.4 90.4 90.0 89.0 88.1 79.1 Public Colleges and Universities Intermtional Falls Thief River Falls =,-n ly Beraidji 0 Hibbing GGreend Rap- s 0 0 0 Virginia Coon Rapids Osseo White Bear Lake Moorhead - Duluth Fergus Fa s Brainerd Minneapolis St. Paul Morris Bloomington S Cloud Inver Grove Heights 1mar Metro Area KIIS./ST. PAUL METROPOLITAN AREA L Roch..tr, Winona 0 Four-year College or University rly Worthington Austin T@qo-year Camnunity College is Private Colleges ConcoTdia St. scholostica Full-time equivalent enrollment, 1972 2748 1030 95 St. John's Bethel St. Benedict St Hamline i. ornos Concordia North Central B le St. Paul eiblel ) Mpls. Coll. Maco las ter r-1 St. Olaf L Art P Design St. Catherine qustavus Adolphus A gsburg Dr Martin Luther Carleton St. Mary's Pillsbu 0 0 St. Theresa Minn. Bible College 0 Lea Source: Minnesota Higher Education Coordinating Ccrnmission School Enrollment (Real and Projected) 1973 1974 1978 Grades K-12, public total- 908,751 900,943 839,25 0 Grades K-12, private total 106,392 NA NA Negro K-12 10,194 10,106 9,414 Indian K-12 9,433 9,352 8,712 Other minority K-12 5,723 5,674 5,285 Secondary enrollment 439,442 444,102 403,280 Male high school graduates 31,812 33,463 38,107 Female high school graduates 31,323 32,958 37,532 Vocational enrollment 110,086' 127,559 144,144 Public vocational-technical post-secondary enrollment 22,239 25,100 33,600 Male 14,011 15,813 21,168 Fernale 8,228 9,287 12,432 Minority 436 654 872 Adult 101,436 113,821 150,189 Public and private college and university enrollment 139,793 138,814 145,835 Source: Minnesota Department of Education Division of Vocational-Technical Education 16 cn (1) W @j 4-q 0 a) C--l .5 ro r-I -P IQ U) ra 8 U 9-1 1 cn rd Q) 4-) 'r-i 4-1 @A ul Ic: 41 0 ri) Cl) Q) F-: T ,l 0 ri) +-) (1) - rl -H r-I 0 1 4-1 ro 4-1 14-1 41 @4 +-) >@ F- ('0 4-J -P rd a) 0 0 @4 ca 4-4 0 (1) bjD0 ri) U)> rlJ b3 41 r-i 0 Q) 0 to F-4 >5 C) LO P4 0 (d (n r-A C:) 0 rd (L) S @4 @b (1) @4 fU 4-) CO r-q > ri) 0 0 41 a) 'o a) @ P-. r-I w a) hfi Q) tz 8 co xl R p in co ro 0 @Q p 4-j (d 2 G - CO ;4 0 r-q 4, , , > a) 0 -P 0 a) 10 0 0 w r4 0 ro a) co a) *- r-j W 4-4 bO 0 p m rl p ul P -P a) > rd 0>0 9 ow w> 8 4-4 r-i 4- 4 b. @4 -H '0 4-1 w 10 0 to LH @J r-i U) 0 Ic; ul - 4--l 04 Q) CO bD 4-4 0 U) (d 4-J ul o co 0 41 c >4-J -P r. 0 p Tul IS -9- rd (3) `4 4-) 0 d rd 00 CO -li ro Q) Q) p (t - C) rOU 6 4 @S 4' 'P4 0 .rq 4-) @,-:l 0 41 g :3: -@ r- @ @ H H ftw f7i P@ --.t C.) 10 0j 9 'o 8 ` C/3 CO H DO () " 4-4 - @4 1:5 0 C14 hl) Q) a ,0 U) ao 8 41 _H (1) r-j bJD 0) 0 Q 4-J C 4 Co @:: 41 r-i 0-) 4-J -P a) (0 tLO U) 0 0 0 4-q P4 @-D 44 -P a Q) 0 0 41 UO (1) 4-) 0 10 @4 > CZ rd Q -I q) ri .H 41 @ 10 0 9:1 11 4-4 rd 0 U) H a) r-i C/I r" 10 r-=: 4-J +J N L) cz m C@ tD c) Lo r-p(1) (Y) (1) a @ 18 M -r-I L) -I LO f.- co -d, rd U) El) U) 0;3:. cr) c- @04, L) 1" 00 cr) a) -r-I a) -ri r-i 0 (1) 4-1 0 0 41 0 C%j U 41 r-4 r@ 4rO 4-, > r@ 4J 4-1 Q) > ro Ul 0 ro (1) Cl) N) -bLD H P@ ID 41 P@ r9 CO cz 15 ul cz (Da > _0 cc P 4' 4' -r-4 r-q rd r-q 4-q 0 @4 10 r-q @J @ 94 0 0 P4 Ln f@ 4-) rO Q, rO 0 -1 (1) Q) C:) r=: rd 04 L13 C) @4 r L) X .2: D 'Y) 8 b) Q) 4-@ T r'-)l aM) 0 4(n a) wo c a) 4-J bO 4 'R * 5 0 @4 X 0 ra 7e 0 P, CL 4-J -P -P 4' -H a) 24 C: ro , (V a IC4 W 'rA 4 >) a) '0 U)m C) a -ri Eo c u)2 r-q a) Id 4-1 4 LE a ca 8 0.0 0 H 0 C@) -1 P4 " - M I rI (1) X; 4-) 8 100 81 "1, 0", CCIFI) q) 4 4-) (1) 4-J Hr-i >) r-i a) 4 t c coH 104 > x 0 @cl 4>) 1@ rQ _Q Q (0 r-i 4-1 "-r-,i U) Q) a) (L) 0 bJD @4 (D M r_q -E @4 P, "J In 10 0 -j @ a) o 0 P4 rQ @4 @4 0 Growth of Minnesota's Publi-c Schools 160 140 Growth in total current Inflation (1) expenditures 120 100 so al current expenditin-es cted for inflation) . . ....... . . . :.... . . . . .. 60 40 20 Growth in enrollment 0. Growth of population of Minnesota 1964 1966 1968 1970 1972 Fiscal year 1963 Fiscal year 1972 $456,731,890 Total current expenditures(l) $1,205,246,653 $456,731,890 Total current expenditures(2) $1,040,960,092 (corrected for inflation) 752,382 Total net enrollment 949,600 3,531,000 Total state population 3,896,000 (1) Does not include refunds issued (2) Correction based on the Minneapolis/St. Paul consumer price index using 1963 as the base year Source: Minnesota Department of Education 18 Business and Industry Furs, northern pine, wheat and iron ore once were the dominant forces that shaped Minnesota's economy. Today, Minnesota's expanding and diversified business and industry are as much dependent upon the utilization of technical equipment and skilled people as on natural resources. Manufacturing displaced farming as the major source of income in 1952. However, agricultural products of a wide variety remain as a vital element ofthe economy. Much of the state's business and industry is located in the Twin Cities metro- polital area, one of the fastest-growing metro areas in the country. Nevertheless, growth of hundreds of other Minnesota communities has been and is being accelerated by concerted efforts of business and civic leaders to secure new industry. There are many reasons for Minnesota's economic growth: MANPOWER: More than 3.8 million people live in Minnesota. Skilled of hand, stead-yo-F -nund, and intensely ambitious, they make up the nation's most desirable labor force. Their high productivity has been praised often by both state and national manufacturers. MARKET: Minnesota is the marketing and distribution center of the Upper Midwest. The area, consisting of North Dakota, South Dakota, Montana, Iowa, Wisconsin, and Upper Michigan, is related financially through the Ninth Federal Reserve District and physically by an integrated system of highways, railroads, and air routes. WATER AND POWER: With nearly 15,000 lakes and some 400 rivers and stream - the Mississippi, Minnesota, Red, Rainy, and St. Croix among the largest - Minnesota is richly endowed with surface water. In addition, an almost unlimited supply of water is available from huge natural reservoirs located primarily in the underground Jordan, St. Peter, and Franconia sandstone formations. Minnesota's electrical power suppliers have a total generating capacity of more than 5-2L million kilowatts and are building facilities to generate 2 million additional kilowatts. Pipelines converging on the Twin Cities bring natural gas to Minnesota from southwestern United States and Canada. Spurs from these main lines serve both residential and industrial users throughout the state. Oil pipelines carry crude. oil from Canada and North Dakota. to Duluth and the Twin Cities. INDUSTRIAL SITES: Well-planned and strategically-located industrial parks in Minnesota are a major feature of the state's industrial development program. These numerous parks offer a wide selection to any industry looking for expansion locations. BUSINESS CLIMATE: There is much evidence to support the claim that Minnesota's busin-es's-r"cli-ma-te"71-s good and continually improving. Minnesotans' attitude toward business is reflected, in part, in three bills passed by the 1967 State Legislature: tax reform that eliminated personal property taxes on business inventory or machinery and equipment; revenue bond financing for industrial development; reorganization of the Minnesota Department of Economic Development and a substantial increase in the departnent's operating budget. 19 While the swiftly-growing "brain" industries (non-electrical machinery, including computers and business machines) and their supporting technical businesses have focused national attention on Minnesota, many additional widely-known and highly- diversified business firms prosper in the state. The growth of Minnesota's man'ufacturing industry is the result of a great many factors: natural resources, transportation, an intelligent and productive work force. These factors plus diversification of products and*geographic location of facilities, will help assure continued, orderly expansion. While the-Twin Cities metropolitan area, with a population of nearly 2 million, is the state's major commercial-industrial center, hundreds of ccmmunities@throughout the state are engaged in effective economic self-help programs. Once known primarily for flour milling and logging, Minnesota today produces an amazing array of products: automobiles to toy trucks; electronic computers to hearing aids; calendars, cake mixes, and Chinese-cookies, to name a few. During the past decade, Minnesota has become one of the nation's leading "brain" industry centers. Employment for approximately 70,000 persons is provided by more than 170 electronics and related technical businesses - many with outstanding research and development facilities. The'non-electrical machinery industry has expanded rapidly and now heads Minnesota's manufacturing industry rankings of einployment, payroll and value added. Food and kindred products is the state's second largest in terms of employment, payroll and value added. Minnesota's vast forestlands make possible a number of manufacturing industries involving the processing of wood products. There is enough tiTrber standing in the commercial forests of Minnesota to cover 355,000 acres with an inch-thick roof of lumber, or enough cord wood to construct a two-foot by four-foot tower of timber that would,reach approximately 126,000 miles past the moon. Printing and publishing ranks third for employment and payroll. The Twin Cities metropolitan area alone is among the top 10 (some place it as high as fourth) graphic arts centers in the nation. Other notable manufacturing industries in Minnesota include electrical machinery; fabricated metal products; stone, clay, and glass products; instruments and related products; apparel and related products. Land of the Giants Although Minnesota ranks 19th among the 50 states on a population basis, it is 10th in a list of states having the greatest number of the biggest corporations in the nation. Of the top 1,300 publicly held companies in the United States (as ranked by "Fortune" magazine), 38 are headquartered in Minnesota. In addition to that, Cargill, Inc., one of the world's largest private companies, is headquartered here. @20 Headquarter Companies Major firms headquartered in the Twin Cities and surrounding area as compiled from the May, June and July, 1974 issues of "Fortune" magazine, which list the,"ist 5001? and 112nd 50011 U.S. industrial companies and the 50 largest U.S. non-industrial companies. INDUSTRIAL COMPANIES .Rank Company Headquarters Sales so Minnesota Mining 9 Manufacturing St. Paul $2,545,620,000 54 Honeywell Minneapolis 2,390,592,000 102 General Mills Minneapolis 1,593,167,000 181 Control Data Minneapolis 936,032,000 182 Land O'Lakes Minneapolis 935,284,000 199 Geo. A. Hormel Austin 825,671,000 203 Pillsbury Minneapolis 816,264,000 284 International Multifoods Minneapolis 527,677,000 292 Bemis Minneapolis 514,584,000 372 Hoerner-Waldorf St. Paul 375,754,000 398 Peavey Minneapolis 354,403,000 412 Green Giant LeSueur 341,808,000 443 Farmers Union Central Exchange South St. Paul 300,218,000 476 American Hoist & Derrick St. Paul 263,957,000 540 Fingerhut,Corporation Minnetonka 217,415,000 586 Economics Laboratory St. Paul 192,528,000 667 Apache Minneapolis 160,742,000 .681 Deluxe Check Printers St. Paul 149,260,000 777 Arctic Enterprises Thief River Falls 120,101,000 798 McQuay-Perfex Minneapolis 116,235,000 817 Jostens Minneapolis 110,907,000 848 Toro Bloomington 106,026,000 886 Munsingwear Minneapolis 98,234,000 927 H. B. Fuller Company St. Paul 91,572,000. 980 Tonka Hopkins 83,414,000 NON-INDUSTRIAL COMPANIES Rank Headquarters Commercial Banks pfp2sits -19 Northwest Bancorporation Minneapolis .$5,19,2,605 20 First Bank Systems Minneapolis 4,H9,651 .21 NON-INDUSTRIAL COMPANIES (continued) Rank Company Headquarters Life Insurance Insurance in Force 41 Minnesota Mutual Life Insurance St. Paul $16,145,099 42 Northwestern Life Insurance Company St. Paul 9,210,913 Retail Sales 21 Dayton Hudson Minneapolis $ 1,407,256 22 Gamble Skogmo, Inc. Minneapolis 1,394,883 Transportation Revenues 7 Burlington Northern, Inc. St. Paul $ 1,331,524 18 Northwest Airlines, Inc. St. Paul 584,348 37 Soo Line Railroad Company Minneapolis 168,324 47 North Central Airlines, Inc. Minneapolis 127,392 Utilities Revenues 27 Northern States Power Company Minneapolis 4-67,961 Finance Assets 20 Investors Diversified Services, Inc. Minneapolis 23 St. Paul Companies St. Paul 1,79li663 Ranking of Minnesota Industrial Groups by Standard Industrial Classifications The concept of the classification definition is often ill understood. Hoping to clarify this, below is a set of tabulations ranking the state's industries by employment, income and gross product. Major industrial classifications were used as defined by the U.S. Department of Commerce for employment and income. The State Gross Product subdivisions for 1970 were compiled within the state; the inter-state comparisons are for 1972, but were not subdivided within classifications. 1972 (1) 1972 (2) 1970 (3) Classification Rank Emplp Rank Income Rank Gross Product Offl-lions - Trade, Wholesale (000) (Millions) & Retail 1 332.3 2 $ 2,062 2 $ 3,416 Manufacturing 2, 307.5 1 2,911 1 4,205 Government 3 246.0 3 2,043 5 1,911 Services 4 238.9 4 1,472 4 2,025 Agriculture 5 121.6 6 884 7 1,133 Trans., Communications & Public Utilities 6 86.6 5 893 6 1,559 22 RANKING OF MINNESOTA INDUSTRIAL GROUPS (continued) 1972 (11 1972 (2) 1970 (3) Classification Rank Empl2@Eent Rank Income Rank Gross Product (000) (Millions) (Millions) Finance, Insurance & Real Estate 7 67.2 8 $ 559 3 2'413 Construction 8 60.0 7 724 8 950 Mining & Quarrying 9 24.8 9 143 9 398 Total $11,691 $18,000 Sources: (1) Minnesota Department of 1hployment Services (2) "Survey of Current Business", U.S. Department of Commerce (3) Minnesota State Planning Agency The manufacturing group is further subdivided into classifications. Following is the ranking by @Lm2loyment in 1972; (Income and gross products are not available at this level.) Rank (000) 1 Non-electrical Machinery, incl. Computers & Business Machines 60.4 2 Food and Kindred Products 53.3 3 Paper & Allied Products 30.8 4 Printing and Publishing 24.8 5 Electrical Machinery 23.6 6 Fabricated Metal Products 20.6 7 Transportation Equipment 11.2 8.5 Chemicals & Petroleum Products 8.4 8.5 Apparel and Related Products 8.4 10.5 Rubber and Leather Products 8.2 10.5 Lumber & Wood Products, excl. Furniture 8.2 12 Stone, Clay & Glass Products 6.9 13 Primary Metals 5.6 14 Furniture & Fixtures 4.4 15 Textile Mill Products 2.9 16 Miscellaneous 30.0 Total 307.7 The tourist and travel industry is not a defined standard industrial classi- fication, but it mainly comprises portions of the services, trades and trans- portation classifications. Because the national tourist figures are measured in terms of expenditures they cannot be compared to employrnent,.gross,product or income. However, to demonstrate the importance of the Tourist-Travel Industry to the Minnesota economy, the following data are most significant. A Study by U.S. Travel Service Data Center made in 1972 shows Minnesota's Tourist-Travel Industry expendi- tures reached $975.5 million. Following is a breakdown of these estimated receipts by the major segments of our Tourist-Travel Industry: 23 Minnesota Travel Expenditures Segment Expenditures % of Total Transportation $345,500,000 35.4 Food 250,000,000 25.7 Retail Purchases 166,300,000 17.0 Lodging 156,700,000 16.1 Entertainment 56,600,000 5.8 Totals T975,500,000 100.0 The above analysis of the industry is based on the following definition: 1. The Tourist-Travel Industry consists of all year-round pleasure, business and necessity travel. 2. Tourist-Travelers are persons traveling over 100 miles away from home on a single trip. Below to the left are listed the top 15 states ranked by Tourist-Travel Expenditures, Minnesota placing ninth. To the right is a ranking of the 15 states in Tourist-Travel Expenditures as a percent of State Gross Products in 1972. Note that Minnesota ranks third in this group. Ranking of 15 Top Travel States by Ranking of 15 Top Travel Expenditures a % of Gross States by Travel State Products 1972 Expenditures Rank State GSP** As % of GSP Rank State (Millions)* (Billions) 1 California 1 Florida $ 37.03 9.14 2 Florida 3,382.7 2 Colorado 12.93 6.05 3 New York 2,249.8 3 Minnesota 20.35 4.79 4 Texas 1,989.9 4 71-s-c-onsin 22.67 4.00 5 Pennsylvania 1,423.3 5 Texas 57.76 3.45 6 Illinois 1,384.5 6 Missouri 24.17 3.35 7 Michigan 1,378.4 7 California 127.18 3.22 8 Ohio 1,118.5 8 North Carolina 24.34 2.95 9 Minnesota 975.5 9 Massachusetts 32.78 2.92 10 Massachusetts 956.9 10 Michigan 50.96 2.71 Wisconsin 907.-0 11 Pennsylvania 62.83 2.27 12 Missouri 810.6 12 Illinois 67.37 2.06 13 Colorado 781.8 13 New York 115.72 1.94 14 New Jersey 778.8 14 Ohio 57.86 1.93 15 North Carolina 718.8 is New Jersey 46.44 1.68 Source: U.S. Travel Data Center Bank of California, San Francisco 24 Minnesota's 1973 New and Expanding Industry In 1973, 483 industrial construction projects represented an investment of nearly $490 million in Minnesota's new and expanded industries. The 1973 investment figure was up 27 per-cent from 1972, and the 10,200 new jobs created resulted in a 23 percent increase over 1972. The largest construction project for the state in 1973 was the Pickands Mather/Bethlehem Steel Corporation taconite plant near Hibbing. Though only $50 million of the $150 million investment and only 333 of the 1,000 new jobs created appear in 1973's new and expanded industry report, the rest of the total investment and new jobs will be included in 1974's report. The second largest investment for Minnesota in 1973 was the $55 million sugar, molasses and beet pulp plant being built by the Southern Minnesota Beet Sugar Cooperative near Renville. The plant's completion will mean 125 new jobs. A $32 million expansion at Blandin Paper Company at Grand Rapids was the third largest construction project in 1973. The 130,000 square foot addition will also mean about 125 new employees - I The rural areas of Minnesota, outside the seven-county Twin City metropolitan area, accounted for more than *383 million, or about 78 percent of the total investment in new and expanded facilities. The outstate areas also accounted for 7,133 new jobs, or almost 70 percent of the total number of jobs created in the state in 1973. New industry is defined as constituting two types of construction: those companies initiating operations on a new site, and construction on remote sites of already existing companies. Expanded industry constitutes construction on or adjacent to the site of an existing company.. Warehouses constructed in support of manufacturing operations are given as a separate classification. Figures are based on construction starts reported by news clippings, F. W. Dodge reports, Construction Bulletin and reports from utilities, Chambers of Commerce, Department of Economic Development (DED) field representatives and firms involved with the projects. A follow-up survey by the Depart-, ment of Economic Development's Research Division attempts to verify these figures with chief executives of the new and expanding industries.. 25 1973 New and Expanding Industry, Table 1 NEW NUMBER INVESTMENT SQ. FT. JOBS NEW INDUSTRY Manufacturing 165 $147,246,700 4,512,185 4,910 Warehouses 76 30,542,200 2,385,680 699 Research and Development 4 11,717,000 683,000 100 Power Plants 2 120,200,000 NA 0 Total 247 $309,705,900 7,580,865 5,709 EXPANDED INDUSTRY Manufacturing 156 $113,128,093 4,149,761 3,873 Warehouses 66 8,364,300 1,035,650 282 Research and Development 5 2,089,000 79,200 3 Power Plants 8 6,464,000 28,550 0 Total 235 '$130,045,393 5,293,161 4,158 TOTAL NEW AND EXPANDED INDUSTRIES Manufacturing 321 $260,374,793 8,661,946 8,783 Warehouses 142 38,906,500 3,421,330 981 Research and Development 9 13,806,000 762,200 103 Power Plants 10 126,664,000 28,550 0 Taconite* 1 50,000,000 NA 333 Total 483 $489,751,293 12,874,026 10,200 NA Square foot figure not applicable. One-third of the total investment and employment is used in this report, and the remainder will be reported in 1974's report. The practice in future reports will be to report the entire total in the year of the actual construction start. 26 1973 Industrial Growth by Area, Table 2 NEW NUMBER INVESTHM SQ. FT. JOBS NEW INDUSTRY Metropolitan Areal 105 $ 66,023,024 4,512,315 1,968 Rural Area 142 243,682,940 3,068,550 3,741 EXPANDED INDUSTRY Metropolitan Areal 79 40,345,426 2,311,335 1,099 Rural Area 1@6 89,700,043 2,981,826 3,059 TOTAL NEW AND EXPANDED INDUSTRY Metropolitan Areal Manufacturing 113 70,545,950 3,843,250 2,506 Warehousing 64 22,729,500 2,279,500 458 Research and Development 6 11,943,000 696,900 103 Power Plants 1 1,150,000 4,000 0 Total Metropolitan 184 $106,368,450 6,823,650 3,067 Rural Area Manufacturing 208, 189,828,843 4,818,696 6,277 Ware-housing 78 16,177,000 1,141,830 523 Research and Development 3 1,863,000 65,300 0 Power Plants 9 125,514,000 24,550 0 Taconite2 1 50,000,000 NA 333 Total Rural 299 $383,382,843 6,050,376 7,133 TOTAL 483 $489,751,293 12,874,026 10,200 'Metropolitan area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties 20ne-third of the total investment and employment is used in this report, and the remainder will be reported in 1974's report. The practice in future reports will be to report the entire total in the year of the actual construction start. NA Square foot figure not applicable. 27 1973 New and Expanding Industry by Standard Industrial Classification, Table 3 NEW sic INDUSTRY NUMBER INVESTMENT SQ. FT. JOBS 2000 Food and Kindred Products 38 $100,055,300 853,376 15141 2200 Textile Mill Products 2 Leased, 40,000 100 2300 Apparel and Other Textiles 6 530,000 57,400 345 2400 Lumber and Wood Products 28 5,969,800 437,550 667 2500 Furniture and Fixtures 8 1,382,000 135,950 121 2600 Pulp, Paper and Paperboard 8 44,355,000 950,000 212 2700 Printing and Publishing 11 9,805,000 629,700 350 2800 Chemical and, Allied Products 16 6,712,400 230,400 112 2900 Petroleum Refining and Related Industries 3 2,970,000 10,000 3 3000, Rubber and Plastic Products 18 7,794,000 451,800 579 3100 Leather and Leather Products 1 1,030,000 NA 50 3200 Stone, Clay, Glass and Concrete Products 16 3,470,000 208,150 147 3300 Primary Metal Industries 10 9,476,400 3235940 450 3400 Fabricated Metal Products 34 -6,450,950 737,000 416 3500 Machinery (except electrical) 75 32,076,200 2,274,330 2,391 3600 Electrical Machinery and Supplies 24 11,762,000 645,600 928 3700 Transportation Equipment 11 7,689,743 409,100 580 3800 Professional, Scientific and Controlling Instruments 4 5,276,000 53,000 67 3900 Miscellaneous Manufacturing 8 3,570,000 214,200 124 Total Manufacturing 321 260,374,793 8,661,946 8,783 Total Warehousing 142 38,906,500 3,421,330 981 Total Research and Development 9 13,806,000 762,200 103 Total Power Plants 10 126,664,000 28,550 0 Taconite* 1 50,000,000 NA 333 TOTAL INDUSTRY 483 $489,751,293 125874,026 10,200 One-third of the total investment and employment is used in this report, and the remainder will be reported in 1974"s report. The practice in future reports will be to report the entire total in the year of the actual construction start. NA Square foot figure not applicable. 28 Minnesota's Industrial Growth by Area, Table 4 NEW NUMBER INVEST@ENT SQ. FT. JOBS NEW RURAL INDUSTRY 1970 ......................... 140 94,228,080 2,071,082 2,411 1971 ......................... 142 151,572,600 1,862,444 3,390 1972 ......................... 145 158,082,900 1,776,176 3,283 1973 ......................... 142 243,682,940 3,068,550 3,741 EXPANDED RURAL INDUSTRY 1970 ......................... 132 161,687,000 1,676,030 2,234 1971 ......................... 130 70,278,588 1,534,415 2,382 1972 ......................... 123 77,569,000 1,639,600 1,776 1973 ......................... 156 89,700,043 2,981026 3,059 TOTAL NEW AND EXPANDED RURAL INDUSTRY 1970 .......................... 272 255,915,080 3,747,112 4,645 1971 ......................... 272 221,851,188 3,396,859 5,772 1972 .........o ................ 268 235,651,900 3,415,776 5,059 *1973 ......................... 299 383,382,843 6,050,376 7,133 NEW METROPOLITAN INDUSTRY 1970 ......................... 111 78,702,900 4,595,534 1,749 1971 ......................... 115 68,451,224 4,397,903 2,902 1972 ......................... 118 64,254,300 3,539,545 1,831 1973 ......................... 105 66,023,024 4,512,315 1,968 EXPANDED METROPOLITAN INDUSTRY 1970 ......................... 87 37,590,500 1,752,284 1,018 1971 ......................... 67 997,355 568 1972 ......................... 113 59,115,400 1,409,080 970 1973 .......................... 79 40,345,426 2,311,335 1,099 TOTAL NEW AND EXPANDED METROPOLITAN INDUSTRY 1970 ......................... 198 116,293,400 6,347,818 2,767 1971 ...................... 1.... 182 124,123,899 5,395,258 3,470 1972 ......................... 231 123,369,700 4,948,625 2,801 1973 ......................... 184 106,368,450 6,823,650 3,067 Totals include figures for new taconite facility in Hibbing. 29 Minnesota's Industrial Growth, Table 5 NEW NLMER INVEST= SQ. FT. JOBS NEW MANUFACTURING 1970 ......................... 134 $ 36,990.860 2,628,091 3,532 1971 ......................... 122 49,548,180 2,217,742 4,856 1972 ......................... 121 61,923,300 2,738,355 4,042 1973 ......................... 165 147,246,700 4,512,185 4,910 EXPANDED MANUFACTURING 1970 ......................... 127 128,809,100 1,958,964 2,768 1971 ......................... 122 66,138,921 1,476,534 2,526 1972 ......................... 130 77,981,400 1,904,596 2,400 1973 ......................... 156 113,128,093 4,149,761. 3,873 TOTAL NEW AND EXPANDED MANUFACTURING 1970 ......................... 261 165,799,960 4,338,513 6,300 1971 .......................... 244 115,687,101 3,694,276 7,382 1972 ......................... 251 139,904,700 4,642,951 6,442 1973 ......................... 321 260,374,793 8,661,946 8,783 NEW WAREHOUSING 1970 ......................... 115 37,292,120 4,087,525 606 1971 ......................... 129 43,835,644 3,699,105 1,391 1972 ......................... 133 32,366,900 2,359,966 817 1973 ......................... 76 30,542,200 2,385,680 699 EXPANDED WAREHOUSING - 1970 .......................... 84 28,481,400 1,577,492 408 1971 ......................... 65 11,924,942 1,013,676 396 1972 ........................ 93 11,228,000 1,083,684 316 1973 ......................... 66 8,364,300 1,035,650 282 TOTAL NEW AND EXPANDED WAREHOUSING 1970 ......................... 199 65,773,520 5,665,017 1,014 1971 ......................... 194 55,760,586 4,712,781 1,787 1972 ......................... 226 43,594,900 3,443,650 1,133 1973 ........................... 142 38,906,500 3,421,330 981 TOTAL NEW INDUSTRY 1970 ......................... 252 173,362,980 6,720,616 4,160 1971 ......................... 257 220,023,824 6,260,347 6,292 1972 ......................... 263 222,337,200 5,315,721 5,114 1973 ........................... 241 177,789,000 6,897,865 5,609 TOTAL EXPANDED INDUSTRY 1970 ......................... 219 119,277,500 3,428,314 3,252 1971 ......................... 197 125,951,263 2,531,770 2,950 1972 ......................... 236 136,684,400 3,048,680 2,746 1973 ......................... 222 121,492,393 5,185,411 4,155 TOTAL NEW AND EXPANDED INDUSTRY 1970 ......................... 471 372,640,480 10,148,930 7,412 1971 ......................... 454 345,975,087 8,792,117 9,242 1972 ......................... 499- 359,021,600 8,364,401 7,860 *1973 ......................... 483 489,751,293 12,874,026 10,200 Totals include figures for new taconite facility in Hibbing. 30 Minnesota's Role in International Trade Nearly $1.5 billion in total export sales left Minnesota in 1973 according to estimates of the Minnesota Department of Economic Development. Approximately 800 Minnesota companies are involved in exporting to more than 134 foreign nations. A breakdown of the Minnesota export sales total shows an estimated $900 million for manufactured products in 1973. Minnesota continues to hover near the 19th position among the states in manufactured exports. The most important manufactured exports are computers and computer software, food processing and packaging machinery, transport and handling equipment, construc- tion equipment, industrial generators, industrial controls and scientific apparatus. The 10 most popular markets for Minnesota manufactured exports (ranked according to number of firms doing business there) are: Manufacturers Currently Exporting Country Number Percent 1. Canada 551 77.3 2. United Kingdom 9 Northern Ireland 183 25.7 3. Australia 176 24.7 4. Japan 174 24.4 .5. Mexico 170 23.8 6. Germany, Federal Republic 164 23.0 7. France 155 21.7 8. Italy 131 18.4 9. Netherlands 122 17.1 10. Sweden 118 16.-5 Source: Minnesota Export Survey Summary, June, 1973 This ranking of the state's leading markets corresponds very closely to the leading markets of the United States as a whole, although Minnesota's per-centage of sales in the United Kingdom, Australia and Sweden are considerably higher than the United States average. The Minnesota Department of Agriculture released fiscal 1973 agricultural export data estimating sales at $597.2 million. This is a 72 percent increase over 1972 figures. Minnesota's national rank in agricultural exporting rose from ninth in 1972 to seventh in 1973. Major markets for agricultural products have traditionally been the European Economic Community and Japan; however, the fastest growing markets today seem to be Fast Africa, the Caribbean, Central Asia, East Asia and Mexico. The most important export commodities have been soybeans and soybean products, feed grains and derivatives, wheat and wheat products, dairy products, hides and skins, lard and tallow, meat and poultry and vegetables. The common misconception that only large firms can export is disproven in Minnesota, since a 1973 survey shows that one-third of the state exporters employ less than 30 persons and that 59 percent employ less than 100 persons. This survey also showed that approximately 11 percent of Minnesota manufacturers have annual export sales of more than $1 million, with 11 companies having foreign sales of ovex $9 million. About 40 percent of the companies have export sales of more than $90,000. All forms of export marketing are employed by the Minnesota companies. A sales representative, agent or distributor is the most common sales method. In Canada direct sales predominate. Licensing, joint ventures and subsidiary facilities are also a part of the state's international sales picture. Japan has the largest number of Minnesota licenses and joint ventures, while Europe is the major location for overseas'facilities by Minnesota multinationals. 31 1 Billion - Manufactured Exports 900, 000 - LO 800,000 - -8 700,000- - 4-1 0 U) 600,000 - ul 500,000 - 400,000 - 300,000 - 200,000 - C/) 100,000 - 1960 1963 1966 1969 1972 1975 Calendar Year Sour\--e: U.S. Department of Commerce 800,000 Agricultural Exports .700,000 4-j 600,000 0 500,000 400,000 0 .300,000 EQ 200,000 100,000 C/3 1960 1963 1966 1969 1972 1975 Fiscal Year Source: U.S. Department of Agriculture, Foreign Agricultural Service 32 Agribusiness As a steadily expanding agribusiness-center, Minnesota not only consistently ranks high in the production of many farm products, but also shows increasing investment activity in new and expanding food processing industries. Seven of Minnesota's food processing giants are listed among "Fortune" magazine's top 500 publicly held industrial companies, and, in addition, one of the world's largest private companies, Cargill, Inc., is headquartered here. Capital investment of more than $97 million in food processing facilities created more than 1,000 new jobs in Minnesota in 1973. This year promises to be even-better: First quarter construction starts in food processing facilities totaled almost $12 million, and when added to the value of projects begun since the end of the first quarter, 1974 projects already add up.to more than 80 percent of the value of 1973's total reported investments in the food processing field. Cash receipts from farm marketings in Minnesota totaled almost $3.7 billion in 1973, not including government payments. This was a dramatic 55 percent increase over 1972's cash receipts. In 1972, receipts showed only a three percent increase over the previous year. Sales of livestock and livestock products pro,- vided 55.5 percent of 1973's agricultural wealth, while sales of crops provided the rest. I Minnesota last year maintained its seventh place position among all states on the basis of total cash receipts from farm marketings in 1973, while at the same time, state farmers increased their earnings by about 80 percent. In 1973, too, for the first time in 25 years, Minnesota did not lose farm population. Food processing in Minnesota genex-ates-$1.5 billion through processing of agricultural products and inputs. In 1973, an annual average of 51,220 workers were employed by the more than 800 food processing fim's in the state. This was 16.5 percent of all manufacturing employment in Minnesota last year. Minnesota's food processing industry is one of the state's key industries not only on the basis of its significant growth in the past, but also because it shows excellent growth potential for the future. The industry promises to con- tribute even more substanitally than it already has to Minnesota's growing economy. Farmland Acreage in Minnesota Year Number of Farms Total Acreaae Average Size fthou@ands -T-thousands) (acres) 1940 198 32,700 165 1945 189 32,200 176 1950 184 33,300 181 1955 168 33,300 198 1960 156 32,400 208 1965 141 32,100 228 1966 136 31,800 234 1967 131 31,500 240 1968 127 31,300 246 1969 123 31,100 253 1970 121 30,900, 255 1971 120 30,700 256 1972 118 30,600 259 1973 117 30,600 261 Source: Minnesota Department of Agriculture 33 Minnesota's 1973 Rank Among States in Agricultural Production CASH FARM INCONE - 1973 Total . . . . . . . . . . . . . . . . . . . . 7 Crops . . . . . . . . . . . . . . . 6 Livestock and Livestock Products . . . . . . . 6 Government Payments . . . . . . . . . . . . . 8 CROP PRODUCTION - 1973 Oats . . . . . . . . . . . . . . Sweet Corn for Processing . . . . . . . . . . 1 Timothy Seed . . . . . . . . . . . . . . . . . 1 Hay (All) . . . . . . . . . . . . . . . . . . 2 Red Clover Seed . . . . . . . . . . . . . . . 2 Flaxseed . . . . . . . . . . . . . . . . . . . 3 Green Peas for Processing . . . . . . . . . . 3 Rye . . . . . . . . . . . . . . . . . . . . . 3 Soybeans for Beans . . . . . . . . . . . . . . 4 Sugar Beets . . . . . . . . ... . . . . . . . 4 Barley . . . . . . . . . . . . . . . . . . . . 5 Corn for Crain . . . . . . . . . . . . . . . .. 5 Potatoes (All) . . . . . . . . . . . . . . . . 7 Wheat (All) . . . . . . . . . . . . . . . . . 8 LIVESTOCK AND LIVESTOCK PRODUCTS Creamery Butter Manufactured During 1973 . . . 1 Nonfat Dry Milk Manufactured During 1972 . . . 1 Turkeys Raised During 1973 . . . . . . . . . . 1 American Cheese Manufactured During 1973 . . . 2 Milk Cows on Farms, Jan.* 1, 1974 . . . . . . . 2 Sunflowers . . . . . . . . . . . . . . . . . . 2 Honey Produced, 1973 . . . . . . . . . . . . . 3 Milk Produced on-Farms During 1973 . . . . . . 4 Hog Marketings, 1973 . . . . . . . . . . . . . 5 Hogs on Farms, Dec. 1, 1973 . . . . . . . . . 5 Pig Crop, 1973 . . . . . . . . . . . . . . . . 5 Cattle and Calves on Feed, Jan. 1, 1974 . . . 9 Cattle and Calves Marketed, 1973 . . . . . . . 10 Cattle and Calves on Farms, Jan. 1, 1974 . . . 10 Chickens on Farms, Dec. 1, 1973 . . . . . . . 10 Eggs Produced, Dec. 1972 - Nov. 1973 . . . . . 10, Lamb Crop, 1973 . . . . . . . . . . . . . . . 13 Stock Sheep and Lambs on Farms, Jan. 1, 1972 . 14 Source: Minnesota Department of Agriculture Crop and Livestock Reporting Service 34 1973 Production of Selected Crops The 1973 crop year was one of the most favorable years in Minnesota's farm history, despite dryness during parts of the growing season.. Record large production levels were established for corn and soybean crops as a r-esult of favorable yields and large acreages, according to the Crop and Livestock Reporting Service of the Minnesota and U.S. Departments of Agriculture. . Corn -- Corn for grain in 1973 totaled 513.4 million bushels. This was 13 per- cent more than last year's production,and 8 percent higher than the previous record in 1971. The average yield for the State at 93.0 bushels equaled the record high in 1972 and compares with the 83.0 bushels in 1971 and 85.0 bushels in 1970. The 5.5 million acres harvested were 4 percent less than the record 5.7 million acres in 1971. Soybeans -- The 1973 soybean crop totaled 127.3 million bushels, a record high output in Minnesota. This production was 41 percent more than the previous high output in 1972. The record yield of 29.0 bushels compares with the previous high of 28.0 in,1972. Harvested acreage at 4.4 million acres was an all-time high - more than one-third above the previous record of 3.2 million in 1972. Flax -- Minnesota's 1973 flax crop totaled 3.1 million bushels, up 74 percent from 1972 but 10 percent less than 1971. The 1973 yield per acre of 13.5 bushels compares with 11.5 in 1972 and 14.5 bushels in 1971. Acreage at 231,000 was the lowest on record except for 1972 when it was only 156,000. . Sugarbeets'-- The 131,400 acres of sugarbeets harvested averaged a record high 16.9 tons per acre. The crop totaled 2.2 milliontons, up 42 percent from a year earlier but 6 percent below the record 1969 output. Hay -- All hay production totaled 8 million tons, down 2 percent from. 1972. The 3.2 million acres harvested was 4 percent above a year earlier., However, this. increased acreage was more than offset by a lower average yield of 2.54 tons per acre. Sunflowers -- Production totaled 288 million pounds, or 9 percent above 1972. The 1,130 pounds per acre was up from the 929 pounds in 1972 and more than offset the 11 percent smaller acreage that totaled 255,000 acres. 1973 Small Grain Production Minnesota 1973 small grain production was 25 percent greater than last year, but, 7 percent below the 1971 output. Production of all wheat in 1973 was the largest since 1899 due mostly to a record-high yield per acre. Semi-dwarf varieties which were used to plant four-fifths of this year's other spriiLg wheat acreage played an important factor in boosting the State's wheat yield this year. Oats, barley and dry edible beans registered higher yields than last year and the rye yield was a record-high. Wheat -- Minnesota's 1973 all wheat production of 78.2 million bushels was nearly three-fifths more than the 49.3 million bushels produced a year earlier and the largest crop since 1899. This year's acreage was up one-third from last year and average yield was record-high. The All Wheat acreage of 2.0 million acres in 1973 was the largest acreage since 1938. The all wheat yield of 38.9 bushels per acre is an all- time high, 1 bushel more than the previous record of 37.9 bushels in 1971. Production of winter-wheat total'ed 1.2 million bushels up 51 percent from 1972. The durum wheat crop at 2.1 million bushels, was twice as large as the relatively low 1972 production. 35 Other spring wheat production of 74.9 million bushels in 1973 was up 58 percent fmm a year earlier. This was the largest output since records for other spring wheat were started in 1919. Oats -- Oat production in 1973 totaled 143 million bushels, 15 percent more than the relatively low 1972 crop of 124 million but 19 percent less than 1971. This yearts yield of 56 bushels per acre campares with 51 bushels in 1972 and 59 bushels in 1971. Minnesota farmers harvested 2,550,000 acres in 1973 compared with 2,440,000 acres a year earlier. Leading varieties and percent of total acres planted to each are as follows: 19 percent Froker, 19 percent Lodi, 14 percent Rodney and 49 percent of other varieties. Barley -- The 1973 barley crop of 40.2 million bushels was 18 percent greater than last year's output of 34.0 million bushels but 1 percent below the 1971 crop. Farmers harvested 894,000 acres this year compared with the 790,000 acres a year earlier. The 1973 yield'of 45.0 bushels was up 2 bushels from 1972 but 3!j bushels below the record high 48.5 bushels in 1971. Other Crops -- The 1973 rye crop.of 3.2 million bushels was 5 percent greater than 1972, due to a record-high yield per acre that more than offset a smaller acreage. This year's dry edible bean crop totaled 592,000 cwt., up 42 percent from 1972. The crop was harvested from 37,000 acres, with an average yield of 1,600 pounds per acre. Pinto and Navy varieties accounted for 84 percent and Pinks were 12 percent of total production. The 1973 all potatoes (summer and fall crops) totaled 14,970,000 hundredweight down one percent from 1972 and 10 percent less than 1971. Livestock and Poultry Numbers Cattle numbers on Minnesotafarms on Januar 'y 1, 1974 were 5 percent above a year @li@er, according to the Crop and Livestock Reporting Service of the Minnesota and U.S. Departments of Agriculture. January 1, 1974 sheep and lamb numbers were down 7 percent from a year earlier. The inventory of all hogs on DeceTrber.1, 1973 -Eh was up 12 percent from a year ago. December 1, 1973, all =ckens on farms totaled 4 percent more than in 1972. There were 4,240,000 cattle and calves on farms January 1, 1974. Beef stock continued their upward trend while HaEir_ystock declined. Milk cows tot d 900,000 head, down 3 percent from the previ ous year. Beef cows at 708,000 head increased 18 percent and replacement beef heifers over 500 pounds were up 15 percent. All sheep and lamb numbers took another sharp decline. The 415,000 head on January 1 was 7 percent less than a year earlier. Sheep and lambs on feed for the slaughter market declined 17 percent while stock sheep were down 3 percent. The December 1, 1973 inventory of 3,976,000 hog and pigs on farms was 12 percent above the 3,550,000 head on hand a year earlier. All chickens, excluding commercial broilers, totaled 14,240,000, 4 percent more than on December 1, 1972. Hens and pullets of laying age on farms December 1, 1973 totaled 10,500,000 birds, down 2 percent from the previous year. Turkey breeder hens at 520,000 were down 4 percent from the number on hand December 1, 1972. The combined value of all livestock and poultry (excluding turkey breeder hens) on Minnesota farms was $1,14-3 -million'. 34 percent more than the $1,296 million a year earlier. All cattle and calves were valued-at $1,463 million, 32 percent more than a year earlil"er. The value of hogs on hand December 1, 1973 accounted for *244.5 million, up 55 percent; chickens, $22.8 million, up 38 percent; and all sheep and lambs $12.7 million, up. 16 percent. 36 Agricultural Production by Commodity Groups Units 1954 1964 1972* 1973* (Thousands) crops (1) Wheat Bushels 10,399.0 22,380.9 49,292.0 78,152.0 Rye. Bushels 1,435.9 1,627.9 2,990.0 3,150.0 Corn for Grain Bushels 245,654.1 -262,333.9 455,607.0 513,360.0 Silage Tons 6,183.0 10,491.9 NA NA Oats Bushels 179,086.3 142,367.1 1@4,440.0 142,800.0 Barley Bushels 28,814.2 19,651.7 33,970.0 40,230.0 Vegetables Cwt. 9,642.9 8,903.9 14,133.0 13,979.0 Hay Tons 6,808.0 6,850.9 8,163.0 8,007;0 Soybeans Bushels 42,117.5 57,039.4 90,300.0 127,310.0 Flaxseed Bushels 8,927.9 4,620.0 1,794.0 3,119.0 Sugarbeets Tons 818.9 1,325.0 1,568.0 2,221.0 Irish & Sweet Potatoes Cwt. 10,951.8 11,336.0 15,060.0 14,970.0 Dry Beans & Dry Peas Cwt. 39.0 117.9 496.0 Livestock (1) Beef & Veal Pounds 1,178,204.8 1,604,838.8 1,918,131.0 1,914,425.0 Pork Pounds 1,402,711.6 1,367,929.1 1,260,215.0 1,326,930.0 Lamb & Mutton Pounds 67,393.3 52,401.1 23,389.0 25,110.0 Poultry Pounds 245,324.41 329,275.5 425,300.0 464,858.0 Eggs Dozens 346,750.0 236,491.8 215,200.0 205,500.0 Milk Pounds 8,615,200.0 11,154,900.0 9,580,000.0 9,369,000.0 Source: Minnesota Department of Agriculture Crop and Livestock Reporting Service (1) Identifies only commodities where projected production exceeds 1.0 percent of U.S. Production in 1980. NA Not available 37 Value of Agricultural Production by Commodity Groups (in thousands of dollars) 1954 1964 1972* 1973*- Crops (1) Wheat 15,806.4 34,019.0 113,646.0 343,631.0 Rye 1,450.2 1,644.1 2,661.0 5,828.0 Corn for Grain. 240,741.0 2,57,087.2 823,040.0 1,235,355.0 Oats 109,242.4 86,843.9 87,108.0 157,080.0 Barley 28,526.0 19,455.3 46,178iO 92,600.0 Vegetables 18,321.6 16,917.4 25,154.0 27,782.0 Soybeans 104,872.7 142,028.2 413,574.0 693,840.0 Flaxseed 26,872.9 '13,906.2 5,561.0 24,016.0 Sugarbeets 11,874.1 19,212.5 24,774.0 NA Irish & Sweet Potatoes 16,646.8 17,230.8 42,888.0 47,315.0 Dry Beans & Dry Peas 146.3 620.6 3,634.0 11,666.0 Other Crops (2) 701.3 1,289.8 NA NA Total Crops 575,201.7 610,255.0 1,588,218.0 p 2,639,113.0 p Livestock (1) Beef 6 Veal 256,966.5 350,015.2 608,011.0 756,676.0 Pork 260,904.3 254,434.8 319,645.0 505,727.0 Lamb & Mutton 14,509.8 11,377.0 11,446.0 Poultry 29,595.4 54,092.4 82,179.0 174,861.0 Eggs 78,018.9 53,210.6 43,545.0 90,538.0 Milk 352,361.7 456,235.4 494,026.0 585,203.0 Total Livestock 992,356.6 1,179,270.3 1,562,761.0 r 2,130,441.0 r Source: Minnesota Deparltment of Agriculture Crop and Livestock Reporting Service (1) Identifies only connodities where projected production exceeds 1.0 percent of U.S. total in 1980. 1 (2) Aggregate value of conmodities projected at less than 1.0 percent of U.S. total production. NA Not available p Preliminary r Revised 38 ........... Cultivated Land Percent E Less than 20 l 20 54 ..... ......... ................ ..... ......... ........................... ....... ..... ......... ....................... ....... ..... .......... ....................... .... .......... 55 83 ..... ..... ... ......... ...... More than 8 3 Source: MINNESOTA LAND ...... MANAGEMENT INFORMATION SYSTEM ---- - ----- - - .............. . ..... ........ .......... Soil Fertility . ........ .... LOW EJ 7i Fair LA Good High '7 -agricultural .......... L- J Stony, non Source: MINNESOTA STATE PLANNING AGENCY 39 Minihg Minnesota's mineral economy is dominated by iron ore production. It accounted for about 90 percent of the annual value of mineral products during the past decade and for a larger share in prior years when iron ore production was at higher levels. Since the turn of the century, the nation's iron and steel needs have been met largely from the natural iron ore mines in northeastern Minnesota '. Peak production was reached in 1953 when 81,500 tons were shipped. The high-grade, natural ores were soon to be depleted, however, and the bulk of current production comes from the upgrading of,low-grade and intermediate ores. Total natural iron ore shipped from Minnesota's iron range since 1884 amounts to some 2.75 billion tons. The output for 1973 was placed at 16,70O.tons. A new iron 'ore resource called taconite accounts for the largest share of iron ore production in Minnesota today. Taconite is a flint hard rock containing 20 to 30 percent iron. After blasting, the rock is crushed in a series of steps and then ground to the fineness of face-powder. The iron is removed from the silica,by mag- netic separators, and the concentrated powder is formed into balls. These are baked into hard iron ore pellets which contain more than 60 percent iron. Shipments of taconite pellets in 1973 were 41,600 tons. It accounted for 69 percent of the total iron ore shipped. . Minnesota's mineral production in 1972 was valued at $815 million by the U.S. Bureau of Mines. The figure represents a 58 percent increase over the 1960 level. Minnesota's Iron Mining Employment (Thousands) Non- % of Non- % Of Year Total Taconite Taconite Taconite Taconite 1962 12.9 8.0 4.9 62.0 38.0 1963@ 11.5 6.6 4.9 57.4 42.6 1964 11.3 6.0 5.3 53.1 46.9 1965 13.0 7.4 5.6 56.9 43.1 1966 13.3 6.8 6.4 51.1 48.1 1967 12.8 5.4 7.3 42.2 57.0 1968 13.3 4.1 9.3 30.8 69.9 1969 13.1 3.7 9@4 28.2 71-.8 1070 13.3 3.4 9.9 25.6 74.4 1971 12.6 3.0 9.6 23.8 76.2 1972 11.8 2.7 9.1 22.9 77.1 1973 12.5 1.9 10.6 15.2 -84.8 Source: Minnesota Department of Employment Services This employment produces a strong economic impact on thestate. 'Of.every one hundred dollars of personal income generated in the state, appr .o.ximately one dollar is from mining. 40 Minnesota's Mining Industry as a Personal Income Generator Year Personal Income Generated by Mina*-ng* 1965 @-9,462,000,000 --T1-04,000,000 1966 10,291,000,000 112,000,000 1967 11,057,000,000 110,000,000 1968 12,118,000,000 122,000,000 1969 13,427,000,000 125,000,000 1970 14,673,000,000 132,000,000 1971 15,511,000,000 148,000,000 1972 16,837,000,000 156,000,000 1973 20,019,000,000 177,000,000 Source: U.S. Department of Commerce, "Survey of Current Business" Share of Market At one time Minnesota produced nearly one quarter of the total world pro- duction of iron ore. Presently its share is about 6.5%. Much of this reduction in Minnesota's share of world market is due to new developments of ore deposits in Australia, Canada, South America and Africa. These developments have been @3ccel- erated by advanced methods of loading and shipping. Below is an annual comparison of the state's share of both the domestic and world market from 1961 through 1971. Minnesota Iron Ore Shipments as a Percent of U.S. and World (Thousands of Cross Tons) Total U.S. Total Mn. Mn. as % Total Mn. as % Year Shipments Shipments of U.S. World Pr. of World 1961 44,883 61.5 494,689 9.1 1962 70,410 44,556 63.3 499,110 8.9 1963 74,387 45,745 61.5 513,661 8.9 1964 85,184 49,794 58.5 566,716 8.8 1965 85,332 51,126. 59.9 607,269 8.4 1966 55,315 60.9 627,974 8.8 1967 83,016 49,720 59.9 618,820 8.0 1968 82,531 51,436 62.3 668,142 7.7 1969 90,570 57,292 63.3 707,183 8.1 1970 87,891 55,157 62.8 754,299 7.3 1971 78,196 49,136 62.8 758,131 6.5 1972 78,281 50,595 64.6 758,826 6.7 1973 90,839 62,614 68.9 794,321 (p) 7.9 (p) preliminary Source: U.S. Department of Interior, "Minerals Yearbook" Minnesota's Taconite Industry Minnesotats taconite pellet production has more than doubled in the last decade, making taconite the most important mineral in the state. Original plants have been expanded, new plants have been built and additional plant expansions have been announced. One steel company president even predicts a new taconite boom for northeastern Minnesota. Nineteen seventy three was the best year since 1957 for the state's iron ore mining industry: Production totaled 57.3 million tons. Taconite pellets made up almost 71 percent of that total, with 40.6 million tons, an increase of more than 13 percent over 1972's taconite production. Within the last year, two new taconite plants and three taconite plant expansions have been announced. When completed, the five projects will increase Minnesota's taconite production by more than 21 million tons. The Taconite Amendment, a 1964 state referendum, was a turning point for Minne- sota's mining industry, which had been declining with the depletion of natural ore sources. The Amendment guaranteed mining companies a 25-year period free from tax increases. Estimates are that during those 25 years the taconite industry will provide direct employment for 17,000 and general employment for 50,000 others in businesses supplying the industry. The 1971 Legislature provided further incentive to the industry by allowing any major taconite facility begun by mid-1974 to be exempted from the state's four percent sales tax on construction materials. The exemption was recently extended through January, 1975. Helping to make up for jobs lost in natural ore mining, the taconite industry employed 85 percent of the total employed in iron ore mining in 1973, compared with 77 percent in 1972. Total iron ore mining employment last year was 12,529, with about 10,600 in the taconite production phase, and employees received $167.5 million in wages and benefits during the year. The five taconite projects now in the offing will add more than 3,000 additional employees to the payroll. 60 50 Minnesota Iron Ore 40 - Total Shipments Shipments Millions of tons 30 - Taconite Shipments 20 10 1964 65 66 67 68 69 70 71 72 73 42 Minnesota's Taconite Plants Taconite Facilities -Estimated Presently in Operation Annual Capacity Investment Employment Reserve Mining Company 10,800,000 tons $ 350,000,000 3,200 Erie Mining Company 10,500,000 tons 350,000,000 Minntac 12,500,000 tons 275,000,000 3,300 Eveleth Taconite Company 2,400,000 tons 53,000,000 475 Butler Taconite 2,400,000 tons 56,000,000 600 National Steel Pellet 2,800,000 tons 90,000,000 600 TOTAL - 6 Commercial Plants 41,400,000 tons $1,174,000,000 11,075 Taconite Facilities in Operation Prior to the Passage of the Taconite Amendment in 1964 Reserve Mining Company 6,500,000 tons $ 210,000,000 2,500 Erie Mining Company 7,500,000 tons 300,000,000 :2,400 Pilotad (U.S. Steel) 750,000 tons 50,000,000 325 TOTAL - 2 Cwmercial Plants and 1 Pilot Plant 14,750,000 tons 560,000,000 5),225 GROWIH SINCE 1964 26,650,000 tons $ 614@000,000 5,850 Taconite Facilities under New Construction or Committed Employment Inland Steel (Minorca) 2,600,0.00 tons $ 70,000,000 450 Minntac expansion 6,000,000 tons 200,000,000 750 Eveleth expansion 3,600,000 tons 150,000,000 450 Hibbing Taconite 5,400,000 tons 150,000,000 800 National expansion 4,100,000 tons 150,000,000 400 43 Mineral Production in Minnesota (Production as measured by mine shipments, sales or marketable production) 1960 1970 1973 Quantity Value Quantity Value Quantity Value Mineral (000) TO--O-OT (000) TO-O-OT (000) TO -00 Clays*, short tons .2 $163,000 .2 $335,000 .2 $233,000 Iron Ore long tons, GWT 54.7 470,874 54.7 571,488 62.6 782,197 Manganifer,ous Ore short tons 441.0 W 321.4 W 170.9 W Sand & Gravel short tons 30.3 24,611 46.9 38,802 37.9 39,438 Stone short tons 4.2 10,034 4.5 12,311 7.6 20,411 Abrasives, stone, cement, gem stones, lime, peat and values indicated by symbol W NA 9,839 NA 10,070 NA 10,506 (Items whose value cannot be disclosed) Excludes kaolin; included with "Value of items that cannot be disclosed" NA Not applicable or not available W Withheld to avoid disclosing individual company confidential data Source: Bureau of Mines, "Minerals Yearbook 197311 Forestry Minnesota's forest lands total over 19 million acres. Nearly 17 mill-ion acres are producing or are capable of producing timber of commercial value. Of -this forest land, over 42 percent is in the aspen, grass and brush category; more than 21 percent is in various species of hardwoods, and over 25 percent is composed of coniferous trees. 1972 Commercial Forest Acreage by Ownership Percent Ownership Acres of Total State 3,065,000 22.4% Miscellaneous Private 2,930,800 21.4 County & Municipal 2,682,000 19.6 National Forests 2,007,300 14.7 Farmer 1,583,400 11.6 Industry 808,500 5.9 Indian 501,900 3.7 Other Federal 90,000 .7 - Total 13,676,700 100.0 The timber industry is the third largest industry in Minnesota. In 1973, Minnesota forests provided 1,376,920 cords of pulpwood, 195 million board feet of lumber and -logs, 4,200,000 Christmas trees, 70,000 cords of matchwood, veneer logs and cooperage, 4,455,000 fence posts, 192,510 poles, 155,550 piling, 151,200 rail- road ties and 296,000 cords of fuelwood. 1973 estimates of the primary process values of Minnesota's forest products were: Pulpwood $424,924,240 Lumber, Ties, Logs & Bolts 25,952,400 Christmas Trees 8,OB5,000 Matchwood, Veneer Logs 8,498,000 Posts, Poles & Piling 5,115,500 Fuelwood 5,032,000 Shavings, Sawdust, Novelties Slats, etc. 2,900,000 By-Products & Mill Residue 2,490,710 Total $482,997,850 In addition, secondary processing of those forest products resulted in a total value exceeding one half billion dollars. Other forest products, such as berries, nuts,. fruits, maple syrup, pine cones, etc. have an estimated value which totals $1,500,000. The value derived from recre- ational activities and wildlife production can only be estimated. The timber indust.,@y has been expanding in Minnesota with the major emphasis on the increase in the production of pulpwood. There have been surpluses of forest products with the largest surplus in the Aspen species. Aspen is best uti. .Lized for various types of wood fiber production and is the most abundant kind of forest in Minnesota. 45 The 5 million acres which are administered by the Department of Natural Resources produced $1,017,000 of revenue from sales of standing timber in 1972. Minnesota's pulp and papdr- manufacturing industry, the state's largest producer of forest products, spent nearly $166 million in basic capital investment during the decade 1963 - 1973. The state's pulp and paper mills also spent approximately $75 million in plant maintenance during this period. These mills in 1973 employed more than 9,000 men and women whose paychecks (including benefits) totalled $123.1 million. These companies paid a Minnesota freight bill of $38.9 million and purchased materials and supplies (excluding pulpwood) of nearly $113 million. (Pulpwood purchases exceeded $29.3 million and provided full and part-time employment for an additional 9,000 people.) More than 2,000 people found employment in other phases of woods work. By converting Minnesota's annual forest crop into saleable products, Minnesota's pulp and paper mills and allied industries bring hundreds of millions of dollars into the state, employ some 30,000 people and contribute --immeasurably, through taxes and business investments, to the economic well-being of every Minnesota citizen. Minnesota Pulpwood Production by Species (annual production in thousand standard cords, roughwood basis) Regions JACK PINE SPRUCE 1968 1969 1970 1971 1972 1968 1969 1970 1971 1972 -T- ' 123 -66 - 66 64 64 76 Northeastern 121 33 119 121 Central Pine 62 74 68 57 66 31 27 31 29 35 Rainy River 12 18 19 26 19 60 60 85 74 80 Southeastern 0 1 1 0 0 0 Western Prairie 8 12 10 12 9 0 1 1 1 1 Total 203 237 221 214 216 157 154 181 168 192 ASPEN BALSAM FTR Northeastern 203 204 208 205 241 12 10 9 9 9 Central Pine 218 289 249 246 260 18 18 22 20 26 Rainy River 131 148 127 135 160 13 12 14 11 31 Southeastern 3 5 11 20 25 0 0 0 Western Prairie 28 14 5 2 3 0 0 0 0 0 Total 583 660 600 608 689 43 40 45 40 66 BIRCH TAMARACK Northeastern 3 17 8 15 4 4 5 4 4 Central Pine 1 * 12 26 26 16 14 23 22 19 Rainy River 0 0 2 1 1 @4 2 7 5 8 Southeastern 0 0 0 0 0 0 0 Western Prairie 0 0 0 0 1 1 1 1 Total 1 3 31 35 42 25 21 36 32 Ti Less than 500 cords 46 Regions MISCELLANEOUS HARDWOODS RESIDUE 1968 1969 1970 1971 1972 1968 1969 1970 1971 1972 Northeastern 7 11 14 12 11- 8 6 12 12 15 Central Pine 5 11 3 1 12 4 28 26 33 Rainy River 9 8 9 9 18 11 5 5 8 8 Southeastern 1 1 1 9 0 21 30 38 23 32 Western Prairie 1 1 0 0 0 0 0 0 0 0 Total 23 32 27 30 30 52 45 83 69 88 Forest Survey Regions PATM RIVER NDRTHEAKERN CEKFML PINE ALL SPECIES' 1968 1969 1970 2.971 1972 Northeastern 421 437 452 433 492 Central Pine 363 437 436 426 466 Rainy River 240 253 268 269 325 Southeastern 25 36 51 52 58 SOLUMASIERN Western Prairie 38 29 17 16 13 f,087 1,192 1,224 1. Total ,196 1,354 kES7ETN PRAIRIE Minnesota Pulpwood Production and Destination (in thousand standard cords) Destination of Pulpwood Year Total Cut Minnesota Wisconsin' Michigan Other 196-8 1,087 900 166 ff .21 1969 1,192 977 188 0 27 1970 1,224 981 219 24 1971 1,196 992 188 16 1972 1,354 1,168 166 0 20 5-year average 1,211 1,004 185 22 *Less than 500 cords 47 Active.Woodpulp Mills in Minnesota Mill Capacity in Tons per 24 Hours Groundwood and other Semi- Company Location Total Sulfite Sulfate Mechanical Chemical Blandin Paper Co. Grand Rapids 'f-05 -0 0 205 0 Hennepin Paper Co. Little Falls 75 0 0 75 0 Boise Cascade Corp. Int'l. Falls 770 0 320 450 0 Northwest Paper Co. Cloquet 445 120 325 0 0 Superwood Corp. Bemidji 'go 0 0 -90 0 St. Regis Paper Co. Sartell 125 0 0 125 0' Superwood Corp. Duluth 240 0 0 240 0 Hoerner Waldorf Corp. St. Paul 300 0 0 0 300 Conwed Corp. Cloquet 350 0 0 350 0 Total 9 Plants 2,600 120 645 1,535 300 Source: U.S. Department of Agriculture North Central Forest.Experiment Station ..... ... Forested Areas .............. TYL-ough forest management, more tr--es are planted or regen- erated naturally in Minnesota . .......... each year than are being harvested ............ Percent ............ ............ or destroyed by fire, insects or Less than 5 disease. More than 20 million trees are planted each year by the 5 19 wood fiber industry, other private KK interests, and county, state and 20 - 55 federal forest services. Trees are supplied by the more than More than 55 1,400 tree farms located throughout the state. Thus, future production of forest products in Minnesota is assured. Source: Minnesota Land Management Information System 48 Minnesota Total Timbercut 1250 1200 1150 1100 1050 1000 950 900 0 1960 1961 1962 1963 1964 1965 1966 1967 968, 1969 1970 Source: Minnesota Departnent of Natural Resources Energy, Transportation and Communications To tal Minnesota Energy Consumption, 1971 (in trillion BTU's) Bituminous & Petroleum Natural Hydropower Total GrosS Total Consumer Lignite Products Gas and Nuclear Input % Household 13.4 167.9 158.5 0 339.8 31.4 Industrial 37.7 32.9 134.8 0 205.2 19.0 Transportation 0 292.2 8.1 0 300.3 27.8 Electric power 144.7 7.7 60.9 21.2 234.5 21.7 Miscellaneous 0 1.7 21.0 0 2.0 .2 Total '195.8 502.2 362.3 21.2 1,081.8 100.0 Percent 18.1 46.4 33.5 2.0 100.0 100.0 Source: U.S. Departirient of Interior 49 Pipelines ID-12 16-24 36.- Minnesota Annual Fuel Consumption 100 Natural gas Coal (bituminous & lignite) ......... Gasoline' 80 Fuel oil 60- 40- 3 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f U . . . . ...... . . . . . . . 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1 Coal consumption in 1962 was 2.1% below the 1961 total 2 Gasoline consumption total not available for 1970 3 Fuel oil and gasoline figures are not available for 1971 Source: Minnesota Energy Project so Annual Fuel Consumption and Percent Change Nat. Gas % Coal % Gasoline % Fuel Oil- % Year (MM cu.ft.) change (M tons) change (MM gals.) change (M bbis.) change 1961 192,584 5,891 1,373 21,491 1962 214,130 11.2 5,768 -2.1 1,400 2.0 23,083 7.4 1963 219,047 2.3 6,143 6.5 1,443 3.0 22,731 -1.5 1964 236,976 8.2 7,077 15.2 1,479 2.5 22,410 -1.4 1965 248,741 5.0 7,406 4.6 1,522 2.9 24,054 7.3 1966 264,488 6.3 7,680 3.7 1,600 5.2 25,935 7.8 1967 280,432 6.0 7,142 -7.0 1,634 2.1 23,730 -8.5 1968 309,139 10.2 7,332 2.7 1,726 5.6 26,185 10.3 1969 332,694 7.6 8,100 10.5 1,839 6.5 27,286 4.2 1970 334,872 .7 8,769 8.3 NA NA 27,540 .9 1971 351,442 4.9 8,313 -5.2 KA NA MA NA M=1,000 MM=1,000,000 Source: Minnesota Energy Project Generating Plants, Existing and Committed Twin City Area .0 Diesel and gasoline Gas o Gas turbine and jet Hydro 91 Nuclear Steam Combined cycle 51 Private and Commercial Trucks in Minnesota, 1971 Percent Number Major Use of Total of Trucks Personal transportation 21.4 96,082 Agriculture 39.1 175,550 Construction 9.9 44,449 Manufacturing 2.21 9,878 Wholesale and retail 10.6 47,592 Utilities and services 7.5 33,673 For-hire 4.2 18,857 All other 5.1 22,898 Total 100.0 448,979 Source: Minnesota Motor Transport Association Motor Freight Service from Minneapolis-St. Paul (time in days) '03 pr 3 Source: -"Transportation Data Guide' Northem Natuxel Gas Canpany 52 Minnesota's Highway System R B TRF E RLF N GM C B H v A GR W T K PR D D L A W B FF B E A LP LF M PC Interstate freeway W G F M -Open to traffic 0 B I! ER C . . . . . .Not open to traffic e freeway W A Expressway and stat other trunk highway M 0 RW M RF LC NU F 0 Si R N L W .... .. 1972 Mileage of Minnesota's Highway System Interstate highways '656 Trunk highways 11,485 County state-aid highways 29,735 County roads 15,408 Municipal state-aid highways 1,384 Municipal streets 10,867 Township roads 55,363 State and/or national forest, park, refuge and institutional roads 31,660 Total mileage 128,064 Source: Minnesota Department of Highways Office of Program Planning 53 RaHroad Transportation in Minnesota MILEAGE OF TRACK PROPERTY VALUE (dollars in millions) Year Main Road,,@y Other Total Road Equipment Total 1963 8,138 4,192 12,330 M1.3 $360.3 $ 951.6 1964 8,107 4,117 12,224 586.2 365.5 951.7 1965 8,071 4,059 12,130 589.3 367.1 956.4 1966 8,058 4,047 12,105 593.0 384.4 977.4 1967 8,046 4,075 12,121 606.6 400.2 1,006.8 1968 8,025 4,Q41 12,066 606.5 400.4 1,006.9 1969 8,001 4,044 12,045 607.6 414.9 1,022.5 1970 7,900 4,054 11,954 608.2 417.0 1,025.2 1971 7,856 4,011 11,867 610.2 408..4 1,018.6 Railroad Freight Service Carloads originating in Minnesota 1300 Carloads terminating in Minnesota 1200 U) 1100 0 IU00 900 800 680 0 1964 1965 1966 1967 1968 1969 1970 1971 Source: Minnesota Department of Public ServiLe 54 Basic Rail Network in. Minnesota I N.. el 0 t,.hs per dy _b Less Man I 34 5.6 7.8 9. 10 I= ore trai MosIly seasonal Rail Service from Minneapolis-St. Paul (time in days) J2 5 Source: "Transportatico)n Guide" Nbrthern-Naturm@al Company 55 Minnesota's Airports and Scheduled Air Service T", 9 Key system o Intermediate system Landing strip system Cities with scheduled air service Development region boundary National Air Service from Minneapolis-St. Paul (time in hours:minutes) Seattle 4:0o MPLSIST. PAUL _j York Detroit 2:50 3:10 Cmaha 1:10 Baltimore Lake City :40 2:20. San Francisco 3:10 4:10 Kansas City 1:05 s es Atlanta 3:15- Pho 2:10 4:40 Dallas 2:00 Miami Source: "Official Airline Guide'? 4:20 56 International Air Service from Minneapolis-St. Paul I (time in hours:minutes) Tokyo, Japan 11:30 Bombay, India 24:00 Toronto, Canada 3:20 Moscow, USSR 22:00 Rio de Janiero, Brazil 16:00 Warsaw, Poland 18:00 London, England 11:00 Peking, PRC 22:00 Paris, France 11:45 Hong Kong 19:24 Capetown, South Africa 22:00 Melbourne, Australia 22:00 Port of Duluth Depending on one's geographic viewpoint, the Port of Duluth is at the beginning-- or the end--of the Great Lakes- St. Lawrence Seaway System. At the westerly tip of Lake Superior, it's 1,340 miles (or about 41-2 days by ship) from Montreal at the base of the Seaway. It's also at the mouth of the St. Louis River, which makes it a source of the Great Lakes-Seaway system. Either way, it remains the closest world port for exporters and importers throughout the Upper Midwest region. Many shippers, in fact, refer to Duluth as "Minnesota's World Port". Because of the proximity to rich agricultural and mining areas, the Port of Duluth and that of neighboring Superior, Wisconsin, have held a camianding position in movements of Great Lakes bulk cargoes for nearly 100 years. One-of the 10 busiest ports in the United States, Duluth-Superior ships an average of more'than 40 million tons of dcmestic and international cargoes each navigation season. Bulk grain is the port's principal export commodity--more than three million tons are shipped over- seas every year--but the port also has made steady growth in import-export movements of general cargo and exports of bulk liquids, scrap iron and refrigerated commodities. The port's principal general cargo facility is the Clure Public Marine Terminal, built by public funds at a cost of $10 million. During 1973 and early 1974, c6nunit- ments totaling over $100 million have been made for port development. Now in various stages of construction are new and improved facilities for handling taconite, coal, grain, oil, newsprint and containerized general cargo. Six railroad systems and more than 20 over-the-road common carriers link the port with a trade area extending nearly to the Rocky Mountains to the west and to Iowa and Nebraska to the south and southwest.. The Minneapolis-St. Paul metropolitan area is within three hours by motor carrier. Ports of Minneapolis-St. Paul The Minneapolis-St. Paul metropolitan area is a major factor in the economy of the Upper Midwest. Energetic, prosperous and growing, the area offers a healthy environment for industry. Located on the Mississippi River, the ports of Minneapolis-St. Paul handle about 10 million tons of freight per year. Important downstream comiodities include agricultural products, grains and scrap iron. If the trend in using low sulfur coals 57 from the Dakotas, Montana and Wyoming as boiler fuel continues, coal may become an important downstream coirmodity. Important upstream comrodities include petroleum products, chemicals and ceinent. The Port Authority of the City of St. Paul owns over 2,400 acres of land within the port district and is developing four separate industrial areas. There are presently more than 70 industries in its various industrial parks and districts, the vast majority having located within the last eight years. Riverview Industrial Park is designed for light industry. Red Rock Industrial District is a heavy industr-y area with barge sites available. Both these Port Authority industrial areas are controlled by protective covenants and industrial zoning to insure orderly development. All Port Authority industrial areas, Riverview, Red Rock, Southport and Barge Terminal #1, are within minutes of the St. Paul central business district. Red Rock, the most distant, is only three minutes downstream, while Riverview is iTrmediately across the-river. Waterway Service from Minnesota Duluth/Superior Mpis./St.Paul J SoLa-ce: "Transportation Data Guide" Northern Natural Gas Co. 58 0 0 Total circulation (thousands) Principal 0 Newspaper 5099 24 49 Publication 0 15-24 Centers 0 10 - 14 0 5-9 0 under 5 at,., ty d of trade :rea penetration 0 to 0 Average 0 Stro g n 0 Very strong 0 *0 Weekly or twice weekly o 0 Daily newspapers except where otherwise designated. Source: Ayer Directory of Newspapers, Management, and Trade Publications Television Broadcasting Centers Highest powered station (Kw) 0 195 - 316 100 - 125 55.8 Number of circles shows number of stations Source: Broadcast@LE 1974 Yearbook 59 Financial Aids and Taxation Municipal Industrial Development Bonds A significantfinancing tool offered to industrial and commercial ventures in the State of Minnesota is the Municipal Industrial Development Bond program. These revenue bonds'are issued by local goven-ffnental units, without public referendum, to fund projects which will aid in the economic growth of the community. The bond program, created with the passage of the Minnesota Municipal Industrial Act of 1967, applies to projects used in connection with revenue producing enterprises of either an industrial or a commercial nature. Projects related to the promotion of tourism in the state also are eligible if located outside the seven-county Twin Cities metropolitan area. Pollution abatement in industrial facilities is another area included in the bond program. Properties used in the abatement of air, water, noise or solid waste pollu- tion may be financed by bond revenue, and such projects are not limited to the $5 million federal ceiling placed on bond issues for industrial and commercial projects. Municipal Industrial Development Bonds differ from the general obligation bonds issued by communities in that the full faith and credit of the community is not pledged. This means that taxes cannot be levied against property owners to pay the principal and interest of the bond issue. Projects financed by these bonds appear in the community financial statement as an asset with no corr\e-sponding liabilities. The municipality holds title to the project until complete fulfillment of the terms of the contract but has no financial responsibility. The bonds are amortized solely by rentals received from the lessee of the facility. Bonds may be issued in an amount sufficient to finance the cost of any or all of these items: land, construction and equipment costs; engineering, architectural, legal and fiscal fees; and interest during construction and for six months thereafter. Well over $250 million in bond issue applications have been approved by the Department of Economic D@velopment since the.Municipal Industrial Development Act was declared constitutional in 1970. Industrial bonds have been attractive to many firms because of the major financing they can supply on a longer term basis than most other finance sources normally provide. The bonds have proven attractive to investors as well, due to the tax-exempt status of interest payable on industrial bonds. For more infornkation contact Director of Finance and International Trade, Department of Economic Development, 480 Cedar Street, St. Paul, Minnesota 55101. The telephone number is (612) 296-5023. Economic Development Administration The Economic Development Administration (EDA), under the United States Department of Commerce, provides grants and loans for public works and development facilities as well as loans for businesses and development corporations. Though EDA will not lend working capital, it will make loans for acquisition of land, buildings and equipment. EDA public works loans to states or their subdivisions are made to help build facilities that will attract private industry. -These include industrial parks, water and sewer systems, access roads and vocational-technical schools. Business development loans are made directly to individuals, partnerships and corporations as well as to public or nonprofit organizations to hel build or expand industrial or commercial facilities and to create jobs. Minnesota is in the midwestern area with a regional office located at the United States Department of Commerce, Economic Development Administration, Midwestern Regional Office, Civic Tower Building, 32 W. Randolph St., Chicago, IL 60601. Ttm economic development representatives located in Minnesota are: Jack Arnold,EDR, 601 Sellwood 60 1 Building, 200 W. Superior St., Duluth, MN 55802, and Stanley J. Pechaver, EDR, 409 Federal Building, Bemidji, MN 56601. Arnold's telephone.number is (218) 727-6692 and Pechaver's is (218) 751-4415. Minnesota's Area Redevelopment Association (ARA) works with the federal EDA to provide funds for industrial loans, representing a grass mots level approach designed to aid areas of high unemployment. Under law, EDA can provide up to 65 percent of a loan, the State ARA 20 percent, the community 10 percent and the operator 5 percent. The Minnesota Department of Economic Development has the responsibility of administering the state ARA program. ARA's state director is William P. 0,'Reilly, Area Redevelopment Association, 400 Providence Building, 332 W. Superior St., Duluth., MN 55802. The telephone nuffber is (218) 722-4212. Tax Increment Financing As an alternative to federally financed urban renewal, a locally financed approach to redevelopment known as tax increment financing has been incorporated in the Minne- sota Housing and Redevelopment Act. Tax increment financing is a unique approach to redevelopment whereby the municipal government can provide the financial support for a Housing and Redevelopment Authority project with local funds. Tax increment financing is suitable for small scale redevelopment projects on a single parcel of land as well as' projects involving multiple properties. .To implement a tax increment financing program, the housing authority must first prepare a redevelopment plan based on a survey and analysis of community needs, problems and redevelopment opportunities. The redevelopment plan is.reviewed by the planning commission and submitted to the municipal council for review and approval. Following a public hearing held by the council, permanent financing is provided through the sale of general obligation bonds that will subsequently be repaid with tax increments from the redeveloped properties. Those properties identified for redevelopment are acquired and cleared by the housing authority and resold to private owners for redevelopment. The difference between the amount of,the property taxes before and after redevelopment are referred to as tax increments and are pledged by the housing authority to redeem the,.general obligation bonds that were initially sold to finance the project. The result of a redevelopment program is animproved tax base that will benefit the entire community. Technical assistance and information regarding tax increment financing and other community development program are available on request from James J. Solem, Director, Office of Local and Urban Affairs, State Planning Agency, 200 Capitol Square Building, 550 Cedar St., St. Paul, MN 55101. The telephone number is (612) 296-2102. Small Business Administration A major source of financing for the small businessman is the Small Business Administration (SBA). SBA can provide financial assistance directly or in partici- pation with banks and other financial institutions. Upper limits on employmen-E and financial size are set by SBA in defining what is considered a small business. SBA lends money to businesses for construction, expansion, purchase of equipment and supplies, and for increased working capital. Some of the types of loans offered by SBA include: displaced business loans, economic injury disaster loans, economic opportunity loans, lease guarantees, physical disaster and product disaster loans, management and technical assistance for disadvantaged businessmen, and occupational safety and-health loans. SBA also is authorized to lend state and local development corporations funds needed.to buy land and build factories or expand and convert existing plants, provided 61 the project aids a mall business concern. To qualify, the development corporation must be incorporated under the laws of Minnesota. Many communities in the state already have taken advantage of this program. A private source of working capital that receives government support under SBA is the Small Business Investment Corporation (SBIC). Funds are supplied in the form of debentures or outright stock purchases with an accompanying long-term loan. There is a regional SEA office for Minnesota at 12 S. Sixth St., Minneapolis, MN 55415. Paul Jansen,- Regional Director, and members of his staff will be glad to answer questions. The telephone number is (612) 725-2362. The address of the regional SEA office for the seven-state midwestern area including Minnesota is: Small Business Administration, Regional Office #5, Federal Building, 219 S. Dearborn St., Room 437, Chicago, IL 60604. U.S.'Department of Agriculture The United States Department of Agriculture (USDA) provides economic assistance to rural business enterprises, primarily through the efforts of the Farmers Home Administration (FHA) and the Agricultural Stabilization and Conservation Service (ASCS). FHA provides loans to both family farm operations and rural cooperatives. Specific programs provide funds for such projects as farm improvement and equipment and livestock purchases as well as various emergency loans and rural housing loans. FHA helps finance recreational enterprises to supplement farm income and also makes loans to groups of farmers and rural residents for development of wildlife and recreational facilities. Additional information can be obtained from: Gordon Klenk, State Director, Farmers Home Administration, State of Minnesota Office, U.S. Courthouse, 252 Federal Office Building, St. Paul, HN 55101. The telephone number is (612) 725-7695. ASCA administers special cost-sharing programs of land, water, wildlife and forest conservation and development of both individual and community projects. Infor- mation can be obtained from County Agricultural Stabilization and Conservation offices, usually located in the county seats. The national contact is Kenneth E. Frick, Administrator, Agricultural Stabilization and Conservation Service, Administration Building, Jefferson Drive between 12th and 14th Streets, S.W., Washington, DC 20250. The telephone number is (202) 447-3467. U.S. Department of the Interior The Bureau of Indian Affairs (BIA), under the United States Department of the Interior, provides loans for Indian economic and social development, Indian industrial and tourism development and for-on-the-job training. In addition, the BIA provides funds for irrigation, construction and power systems. New legislation to foster Indian economic development was signed into law earlier this year. The Indian Financing Act of 1974 consolidates three existing revolving loan funds now administered by the Secretary of the Interior and authorizes an addi- tional appropriation of $50 million for the fund. The Act also establishes a federal loan guarantee program for private loans made to Indian organizations and individuals. In addition, the Act establishes an Indian Business Development Program in the Department of the Interior. Designed to aid small Indian businesses, the program authorizes federal grants of up to $50,000 per business. To support the business development program, the Act authorizes the Secretary of the Interior to cooperate with the Small Business Administration and other federal agencies and private organi- 62 zations in providing management and technical assistance to Indian enterprises which qualify for loan or grant assistance. The BTIA contact in Minnesota is Raymond P. Lightfoot, Area Director, Bureau of Indian Affairs, Minneapolis Area Office, 831 Second Ave. S., Minneapolis, MN 55402. The telephone number is (612) 725-2904. U.S. Department of Veterans Benefits The United States Department of Veterans Benefits offers both business loans and farm loans. Guaranteed or insured business loans may be used for working capital as well as to acquire land, buildings and equipment. They may also be used for construction, renovation, repair or improvement of realty. Farm loans may be guaranteed or insured for such purposes as acquiring or refi- nancing indebtedness on lands, buildings, livestock and equipment or for repairing, constructing or improving farm realty or equipment. Farm loans also may be used to purchase stock in a cooperative association. For more information, contact Leo Bodde, Director, Department of Veterans Bene- fits, Veterans Administration, VA Center, Federal Building, Fort Snelling, St. Paul, MN 55111. The telephone number is (612) 725-4100. Major Taxes Affecting Business E@2pe'@ty Tax - an ad valorem tax utilized by local units of government and school districts and based on the value of all real property and tangible personal property unless specifically exempted by law. Corporation Income Tax - a tax levied on corporations whose gross income exceeds @5,000 or whose taxable net income exceeds $500. Corporation gross income less business expenses paid during the taxable year is the method by which the taxable base is computed. -Multistate corporations, or corporations with sales outside the state, use a three-factor formula to determine their apportionment ratio as follows: Property in Minn. + Payroll in Minn. + Sales in Minn. Total Property Total Payroll Total Sales or A weighted ratio equal to the same components times the weights .15 (property ratio) + .15 (payroll ratio) + .70 (sales ratio) A corporation may opt for the formula which yields the lowest amount of taxes. The maximum statutory tax rate is 12 percent and the effective marginal rate is 6.24 percent. Sales and Use Tax - a four percent tax on the privilege of selling, using, storing or consuming tangible personal property, tickets or admissions, meals or drinks or the furnishing of lodgL-ig or utilities for consideration. Tax is collected by retailers and remitted to the state. 63 Worlqnen's Compensation - a tax paid by employers from which compensation for loss of wages and medical payments is paid employees who sustain job-connected injuries. Major Taxes Affecting Individuals Individual Income Tax - a tax on gross income as evidenced by returns filed by individuals, executors or administrators of estates and trusts, guardians and part- nerships. Rates range from 1.6 percent to 15 percent. Property Tax - a tax on real property valued at market value and adjusted by a uniform ratio within individual property classes. When property value is assessed it must be classified according to the legal classification system. The various statutory classification rates are then applied to the market value to determine the taxable value of the property. The total mill rate is then applied to obtain the tax due. Although counties retain the option to tax household goods as personal property, none has since 1967. There are no longer assessments on ponderous equipment, attached to or installed on real property. Sales and Use Tax - a tax upon all retail transactions unless specifically exempted by law or regulation. Some exempt items and transactions are: clothing, groceries, medicine, gasoline, sales to charitable, governmental, educational and religious institutions.. Inheritance and Gift Taxes - taxes imposed on the transfer of property by gift or reason of death and measured by the value of the beneficiaries' share of the estate or the fair market value of the gift to the donee. Exemptions and rates vary according to the relationship between decedent and beneficiary or donor and donee. More specific tax information can be obtained from the Department of Revenue, Centen- nial Office Building, 658 Cedar St., St. Paul, MN 55145. 64 141 @01 @315 6668 - -