Minneapolis-Saint Paul, Minnesota | Metro Export Plan
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Minneapolis-Saint Paul, Minnesota | Metro Export Plan Minneapolis-Saint Paul Exports Value Metro Rank Exports (2012) $22.2 billion 14 Exports Share of Metro Output (2003) 7.8% 51 Exports Share of Metro Output (2012) 11.6% 54 Annualized Export Growth Rate (2003-2008) 6.5% 66 Annualized Export Growth Rate (2009-2012) 8.9% 25 Annualized Real Output Growth Rate (2009-2012) 1.6% 57 Overview The Minneapolis-Saint Paul region is the nation’s 14th largest metropolitan economy and accounts for two-thirds of the state’s economy. In 2010, the Minneapolis-Saint Paul region was also the 14th largest export market among U.S. metropolitan areas. The region is rich with assets, including the headquarters of some of the most recognized brands in the world—3M, Cargill, Medtronic, and General Mills, among others—and yet, the region is not widely known as a global economic force. Through the development of its metro export plan as part of the Brookings-Rockefeller Project on State and Metropolitan Innovation, Minneapolis-Saint Paul is committing to act more strategically, drawing on its distinctive strengths to expand exports and position the region as a global city poised for the next era of trade. Market Assessment Minneapolis-Saint Paul conducted an in-depth market assessment at the start of the planning process to serve as a foundation for the development of the export plan. The market assessment included analysis of detailed export data from the Brookings Institution, data benchmarking against peer cities, a survey of 200 firms about their export activity, and more than 40 one-on-one interviews with local companies and export service providers. Key findings of the 2011 market assessment: The Minneapolis-Saint Paul metro area shed 112,860 jobs during the Great Recession. Between its peak in the first quarter of 2007 and its low point in the first quarter of 2010, regional employment declined 6.2 percent. Despite a housing market hit hard by the foreclosure crisis, the Minneapolis-Saint Paul region weathered the recession better than most metropolitan economies. Local unemployment peaked in June of 2009 to 8.2 percent and had fallen 2.6 percent to just 5.7 percent by December of 2011. The Minneapolis-Saint Paul region’s myriad assets have made it resilient and should enable it to thrive in the next economy. The region is home to 19 Fortune 500 companies and a number of privately-held corporations, including the largest private company in the United States. The region’s strong export assets have not translated into a related level of export growth. Though the Minneapolis-Saint Paul region is a large metropolitan export market, less than 10 percent of its economy comes from exports, compared to 10.7 percent nationally. While the region has significant assets and advantages to support export growth, it is not leveraging them. The expertise of the region’s globally savvy businesses and workers, for example, are not being leveraged to help smaller firms pursue international markets. Companies in the Minneapolis-Saint Paul region—particularly small and mid-sized ones—are looking for individualized assistance to identify global opportunities. Export services in the Minneapolis-Saint Paul region are considered to be very good but could create greater impact by developing a seamless system. Though these service providers cooperate regionally, they do not operate under a system that is clear to either the providers themselves or their prospective local clients. Many companies in the Minneapolis-Saint Paul region that currently export lack a strategic approach to identifying new international market opportunities. Goal, Objectives, and Strategies Goal: In coordination with the metro business plan, the metro export plan aims to diversify, strengthen, and secure Minneapolis-Saint Paul’s regional economy. The objectives of the metro export plan are to increase and sustain regional jobs by doubling metro exports from 2012 to 2017, to expand export reach among small businesses, and to increase global orientation in the Minneapolis-Saint Paul region. To achieve these objectives, the Minneapolis-Saint Paul region will employ the following four strategies: 1. Connect companies to global opportunities through a unified export team: Coordinate and deploy the export consulting services available in the metro area. Enlist “global assets” to join the export team, including foreign-born residents and residents with significant global ties developed while studying or working abroad. 2. Target the intersection between local products and global demand: Proactively define, target, and organize regional export efforts based on high-opportunity sectors and markets. 3. Promote global advantages starting with health and wellness: Claim and reinforce the region’s earned reputation as a global leader in health and wellness, and other key local clusters. 4. Sell MSP to the world: Market the region internally and externally and generate awareness of the importance of global trade to the long-term vitality of the region. Implementation The Minnesota Trade Office serves as the convener of the Minneapolis-Saint Paul Export Initiative Steering Committee, which gathers on a quarterly basis to provide strategic guidance, engagement in specific actions, and reporting. The Trade Office leads on most aspects of the plan, with Greater MSP leading internal and external marketing initiatives. Updates and Progress The Minneapolis-Saint Paul Export Plan has helped the region expand its export focus in concrete ways outlined in the plan and through the development of a more export-focused local business culture. 2013: Year 1 of Implementation • Built Energy and Media Attention: Built a network of metro leaders passionate about supporting Minneapolis-St. Paul job growth through increasing exports and global engagement. GreaterMSP created an elevator speech articulating its core strengths in the global economy and urged all to act as ambassadors using this message. The MSP Export Initiative was honored by the International Economic Development Council as a “blueprint for increasing exports to other metropolitan regions.” Overall, the export initiative significantly increased public and media attention to export data as a core measure of the health of the metro economy. • Helped Firms Write Export Plans: Established the Export by Design initiative, led by the Minnesota Trade Office and the U.S. Commercial Service, to help firms write trade-oriented business plans. • Mainstreamed Exports: Added export questions to the annual business retention visits to several thousand businesses conducted in person by chambers of commerce and local government representatives throughout the state. Rolled out high-touch Chamber of Commerce-sponsored export workshops targeted to chamber members who are new to export. Together, these resulted in a bigger pipeline of export-ready prospects. • Clarified Export Resources for Businesses: Developed a Minnesota Export Resource Map to define the roles of the region’s export service providers, making it easier for companies to navigate the system. Created a core curriculum of regularly-scheduled courses targeted toward new to export companies. • Built Support for Trade Resources: The Export Initiative helped to align support behind the Minnesota Trade Office, which was nearly eliminated several years ago, resulting in $1.5 million in additional funding in the most recent state appropriations bill. The region also successfully advocated for a local Export-Import Bank representative in Minneapolis-Saint Paul. .