The Importance of Industries in Minnesota

Topic: Industry
Words: 1180 Pages: 4
Table of Contents


In America, there are many industries that coordinate to strengthen the nation’s economy. Each state has a unique value since different industries and services are produced from specific regions. Most industries in the US are however located within the Midwest region of the country. Some of the States within this specified area include, Minnesota, Michigan, and Ohio, among others, and are all associated with their contribution to the nation’s economic well-being. With the initiative to understand the industries and services that strengthen these regions, the research will focus on Minnesota State. Industries are usually categorized into primary, secondary, and tertiary in the economy to facilitate the effective division of production processes in the region.


In terms of the American economy, Minnesota is ranked 17th with a gross domestic product fairly shy of the 500 million dollar mark. However, over the past decades, the development of industries has stagnated in the community. The state’s productivity remains redundant despite notions to improve its efficiency. Minnesota’s economy continues to lag behind the national average in terms of worker gross domestic product, worker productivity, hourly efficiency, and personal income (Kiprop). Although the production sector introduced longer working schedules than other states, minimal changes have yet to be achieved. Minnesota can attain above-average productivity and personal income per capita because of the high labor participation rates. Timber, iron ores, and other natural resources are the main raw products in the manufacturing, agriculture, and infrastructure sectors.

Agriculture has been the core Industry for Minnesota and does not have any likely ending in the short term. The sector is responsible for supporting the American economy with its primary resources, agricultural education, and the now thriving agribusiness opportunities (Kiprop). The state covers approximately 26 million acres of rich fertile soils supporting agricultural farms and more than a thousand food processing facilities. Produce from these farms has supported the nation’s economy as food and as resources in secondary industries. Therefore, the agriculture sector can be identified as a primary sector.

Minnesota’s manufacturing sector covers many firms that participate in production and manufacturing. Manufacturing is among the stable economic sectors that have helped raise employment by 11 percent since the year 2010. Accounting for roughly 15 percent of Minnesota’s gross domestic product, it employs 320,000 American citizens (Kiprop). 40 percent of these industries are leading manufacturers, a fair percentage are leading headquarters while the rest are developing. The manufacturing sector can be categorized as a secondary industry since they manufacture the natural resources within the region.

Mining, the service industry, and energy production sectors are the rest of the industries in Minnesota. Mining began in the 1800s when prospectors searching to mine gold came across iron ore. The discovery would become very prominent in the 1920s when the ore was mined and shipped across the nation (Kiprop). The sector is however contributing to minimal percentages of the state’s economy since it is at a decline. Mining like agriculture is a primary industry. Energy production in Minnesota is gradually advancing as more of the power it generates continues to increase in demand.

Although Minnesota is a non-oil-producing state, gasoline, and natural energy production continues to advance. The environmental friendliness, affordability, and reliability of these energy systems contribute to their demand. This sector can be categorized as a quaternary industry because of its qualification requirements (Kiprop). The service industry has employed three-quarters of all employees in the state. These employees are distributed in the hospitality, education, financial, and healthcare sectors. Since Minnesota has the biggest mall, and diverse tourism sites, many employees are required. The service industry is quinary because of its responsibilities in society.

As mentioned earlier, Minnesota’s economy highly relies on the state’s large labor participation. All the industries in the states employ a fairly large number of employees to increase productivity and efficiency. Although skilled labor is a huge factor for these industries, employment levels have made it possible for Minnesota to maintain average personal income per capita. However, not all employees have permanent positions, a fair share takes part-time employment. The employment levels are now beginning to stabilize after the Covid-19 outbreak that had destabilized worker reliability. Recent research to determine the biggest employers in Minnesota ranks Rochester’s Mayo healthcare clinic as first. The clinic has the highest number of employees compared to other employment organizations (John). The Alina Health system occupies the second slot. Therefore, the healthcare sector of Minnesota is leading in creating employment opportunities. Aside from healthcare, mining, real estate, and social assistance sectors the states and national government management register high employment.

Currently, the state of Minnesota hosts a population is almost six million American citizens and continues to grow at a rate of 0.6 percent annually ranking it as the 50th state in the US. Its current gross domestic product compared to the past half a decade, has expanded by half a percent. In 2022, the employment rate is at -0.2% with the total employed population close to four million. The healthcare sector, manufacturing, real estate, rental, and renting sectors have registered the highest employment rates (Tuck) The economic trend indicates healthcare to be advancing hence likely to expand the economy in the future.

As mentioned earlier, the state’s economy has stagnated in recent years. Many changes are being implemented to ensure the state regains its fallen glory. Over the years, Minnesota has evolved from natural resource development and agricultural production to broad-based systems founded on natural resources, capital, and human ingenuity. The agricultural sector has developed and involved technological and scientific research to help improve productivity and efficiency (Johnston). The introduction of agribusinesses and agricultural education has helped revolutionize farming skills and in the future, hopes to develop reliable crops. Research for more resistant crops, reliable and less environmentally harmful fertilizers is being carried out in agriculture research facilities.

Changing environmental and climatic conditions have necessitated the urgency to develop agricultural resources that can withstand and generate enough produce to support the world. Technology has revolutionized the education sector, and school districts and universities in Minnesota are very reliable following these changes. In efforts to counter the issue of unskilled labor, better education and training programs have been developed. Energy processing and production as mentioned earlier has gained demand and more investments are being directed towards advancing the sector. Since better skills are required within these facilities, the education sector should improve its effectiveness and training of employees.


Minnesota is far from attaining the economic levels it should currently have. Aside from the skilled workforce and other reliable sectors, more changes should be introduced. For instance, the leading corporate headquarters firms can strategically grow while maintaining the validity of their economy if they extend their efforts to become the next ‘Fortune 500’ corporations in the state. Proper guided and oriented strategies can help these firms with their underlying conditions to reach the next level. Technological improvement in the mining sector will help the economy to gradually expand. More focus on mining with help from science and technology can attribute to more exploits and better production of these natural resources.

Works Cited

John, Curts. “Who Are the Largest Employers Here in Minnesota?” Quick Country, vol. 96, no. 5, Web.

Johnston, Louis. “Exchange, Industry, and Adaptation: Economics in Minnesota.” MNopedia, Web.

Kiprop, Victor. “What Are the Biggest Industries in Minnesota?” WorldAtlas, WorldAtlas, Web.

Tuck, Brigid. “Getting to Know Greater Minnesota’s Economy: 2019 Update.” Getting to Know Greater Minnesota’s Economy: 2019 Update | UMN Extension, 2019, Web.

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