Manufacturing 2.0: A More Prosperous California

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Minnesota


Minnesota's manufacturing real GDP totaled $33.9 billion, or 15.8 percent of the state’s real GDP in 2007. The state’s manufacturing real GDP rose 18.1 percent from 2000 to 2007, most of it from non-high-tech manufacturing industries. The manufacturers’ capital expenditures in the state contracted less than the national average.

Manufacturing employment in Minnesota totaled 341,200 jobs, or 2.5 percent of the nation’s total in 2007, about the same as in 1990. Although the level of employment was the same in both years, Minnesota had a bigger share of U.S. manufacturing jobs in 2007: 2.5 percent compared with 1.9 percent in 1990. Though employment declined, the rates of decline in both high-tech and non-high-tech manufacturing were not as severe as the national average during the seven-year period. In fact, employment in high-tech manufacturing rebounded modestly after manufacturing employment bottomed out in 2003. The growth of the high-tech industries increased Minnesota’s share of the nation’s high-tech manufacturing from 2.9 percent in 2000 to 3.1 percent in 2007.

The average manufacturing wage in Minnesota was $52,800, slightly less than the U.S. average, but still a 25.8 percent increase since 2000. The value added per production worker was $222,051 in 2007, less than the U.S. average.

Manufacturing employment index (2000-2007)
State 2000 2001 2002 2003 2004 2005 2006 2007
California 100.00 96.01 88.08 83.25 82.11 81.10 80.31 78.98
Minnesota 100.00 95.46 89.72 86.56 86.47 87.54 87.14 86.03
United States 100.00 95.22 88.37 84.03 82.91 82.40 82.00 80.41

Sources: U.S. Bureau of Labor Statistics, Moody's Economy.com, Milken Institute.

Top five indicators
Indicator United States
Value
MN
Value
%
Change
Peer State
Rank
Real gross state product (US$ billions) $11,523.9 $214.9 16.1% 7
Per capita personal income (US$) $38,615 $41,105 28.4% 4
Total exports of goods (US$ billions) $1,162.5 $18.1 75.3% 3
Manufacturing's share of real GDP (%) 13.6% 15.8% 1.7% 3
Real manufacturing output per worker (US$ thousands) $113.6 $99.2 37.1% 5

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Economic climate indicators
Indicator United States
Value
MN
Value
%
Change
Peer State
Rank
Real gross domestic product (US$ billions) $11,523.9 $214.9 16.1% 7
Total nonfarm employment (thousands, SA) $13,7604.3 $2,771.4 3.2% 6
Total exports of goods (US$ billions) $1,162.5 $18.1 75.3% 3
Per capita personal income (US$) $38,615 $41,105 28.4% 4
Median household income (US$) $50,740 $55,664 18.2% 6

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Business climate indicators
Indicator United States
Value
MN
Value
%
Change
Peer State
Rank
Corporate income tax rate 15.0% -35.0% 9.8% 0.0% 8
Individual income tax rate 10.0% -35.0% 5.35%-7.85% -2.7% - -1.9% 6
Property tax rate 13.8% 1.27% -- 6
Sales tax rate 0% 6.5% 0.0% 7
Employer unemployment insurance tax rate 0.66% 0.77% 67.4% 2
Total state-local tax burden rate 9.9% 10.4% 2.0% 5
Per capita total state-local taxes paid (US$) $4,223 $4,599 29.1% 2
Government debt as % of GDP 65.5% 3.5% 16.7% 2
Per capita government spending (US$) $14,327 $6,134 29.3% 7
Nonfarm establishments (latest 2006) 7,601,160 $151,150 8.7% 5

Sources: Bureau of Economic Analysis, The Tax Foundation, U.S. Census Bureau, U.S. Office of Management and Budget, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Manufacturing indicators
Indicator United States
Value
MN
Value
%
Change
Peer State
Rank
Manufacturing share of real GDP 13.6% 15.8% 1.7% 3
High-tech manufacturing share of real GDP 4.8% 5.6% 87.3% 2
Manufacturing employment (thousands) 13,882.6 341.2 -14.0% 6
High-tech manufacturing employment (thousands) 2,468.7 77.1 -12.6% 4
Share of U.S. high-tech manufacturing employment 2.0% (U.S. avg.) 3.12% 8.3% 4
Manufacturing wage per employee (US$) $53,804 $52,765 25.8% 3
Manufacturers' capital expenditures (US$ billions) $135.8 $2.8 -4.3% 3
Industrial R&D expenditures (US$ billions, 2005) $226.2 $6.3 70.3% 4
Real manufacturing output (US$ billions) $1,571.7 $33.9 18.1% 4
Real manufacturing output per worker (US$ thousands) 113.6 99.2 37.1% 5
Value added per production worker (US$) $249,139 $222,051 35.5% 6
Exports of manufactured goods (US$ billions) $1,022.1 $16.3 71.5% 3

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, The National Science Foundation, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.
Leading business and economic indices
Indicator Peer State
Rank
National
Rank
State Business Tax Climate Index (Tax Foundation) 7 42
Best & Worst States [to do business] Survey (Chief Executive Magazine) 6 32
Competitiveness Index (Beacon Hill Institute) 1 6
Economic Competitiveness Index (American Legislative Exchange Council) 6 34
2007 State and Local Tax Burden (Public Policy Institute of New York) 2 13
Economic Freedom Index (Pacific Research Institute) 7 44
Small Business Survival Index (Small Business & Entrepreneurship Council) 7 46
2007 Cost-of-Doing-Business Index (Milken Institute) 2 13
State New Economy Index (Kauffman Foundation) 3 14
State Technology & Science Index (Milken Institute) 3 11

Note: Indices cited were published in 2008, unless otherwise stated. Some index rankings results were reversed from published rank in order to make them consistent across the different indices as presented here. The rankings are among the eight peer states, 1 = best and 8 = worst.
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