50 in 50: Minnesota

50 in 50: Minnesota

50 states in 50 weeks: U.S. states economic and infrastructure highlights.

GDP: $345.2 billion

GDP 5-year compounded annual growth rate (CAGR) (2017-2021): 1.2% (U.S.: 1.6%)

GDP per capita: $61,544 (U.S.: $58,154)

Population: 5.7 million

Population 5-year CAGR (2017-2021): 0.6% (U.S.: 0.5%)

Unemployment: 1.9% (U.S.: 3.9%)

Economic outlook ranking: #46 out of 50

Fiscal health ranking: #11 out of 50

Overall tax climate ranking: #45 out of 50

Key Sectors and Metro Areas

Top five industry sectors by 2021 GDP:

Top three industry sectors by GDP 5-year CAGR (2017-2021):

Top three metro areas by GDP:

• Minneapolis-St. Paul-Bloomington
• Rochester
• Duluth

Top three metro areas by population percentage increase in 2021 vs. 2020:

• St. Cloud
• Rochester
• Mankato

Infrastructure Highlights

Infrastructure: ASCE Infrastructure Grade (2022): C

In Minnesota, with the exception of roads, all infrastructure categories assessed by the ASCE in 2022 have a ‘C-‘ grade or better. About a month ago, Minnesota was awarded two grants totaling $35 million toward bridge rehabilitation and highway expansions intended to increase safety, decrease congestion, and improve freight movement along Interstate 90 and Highway 212. In August, $99 million was awarded to the state for six other transportation projects.

It is worth noting that Minnesota’s aviation system is solid. Several safety and operational improvements were completed over the last ten years, which expanded capacity in terminals and runways. As it relates to water and wastewater, priorities revolve around system components reaching the end of their useful life as well as the risk of legacy and emerging contaminants in service lines. In addition to the $116 million made available in 2022 from the Bipartisan Infrastructure Law (BIL), Minnesota has recently increased user fees to help address clean and safe water issues. 

Over the next five years, Minnesota’s BIL funds will address the following categories of projects (additional funds may be deployed as federal grants get awarded to states):

Construction spending (Value of Construction Put in Place – CPiP):

• Private Nonresidential 2021 CPiP: $4.2 billion; -1.7% 5-year CAGR (2017-2021), below overall U.S. CAGR of 1.4%
• State & Local 2021 CPiP: $8.4 billion; 5.7% 5-year CAGR (2017-2021), above overall U.S. CAGR of 4.0%

AE Industry

ENR 500 firm headquarters (2022): 19

M&A activity since 2018:

• 56 deals with buyers from Minnesota
• 28 deals with sellers from Minnesota

For customized market research, contact Rafael Barbosa at [email protected] or 972.266.4955. Connect with him on LinkedIn.