fbpx
Monday, October 14, 2024
HomeBusinessDEED Survey Shows Minnesota Businesses Optimistic this Year

DEED Survey Shows Minnesota Businesses Optimistic this Year

According to an an­nual survey released this month by the Min­nesota Department of Employment and Eco­nomic Development (DEED) and the Fed­eral Reserve Bank of Minneapolis, Minne­sota business services firms expect improved profits, productivity, and job growth over the next 12 months.

The surveyed firms expect minor improve­ments in revenue, profits, productivity, and employment in the coming year. Labor availability is expect­ed to increase slightly, but the supply of work­ers will continue to ex­ert upward pressure on wages. Inflation is pre­dicted to increase as well and nearly 65% of respondents antici­pate raising wages by at least 3% to attract workers in the state’s tight labor market.

On inflation, 56% of respondents expect it to rise over the next year, down from 65% in last year’s survey. This figure reflects cautious optimism about slowing price increases.

The Business Ser­vices Industry Condi­tions Survey gauges the sentiments of Min­nesota business ser­vices firms concerning their own operations and the state economy as a whole.

Accounting firms, computer consultants, advertising and public relations agencies, and other types of service companies support the activities of other businesses. Their per­formance is an indica­tor of overall business conditions and trends across industries and throughout the state. This year’s survey in­cluded responses from 141 businesses.

“Businesses are opti­mistic about Minneso­ta’s economic outlook. Our employers have added jobs eight of the last 12 months and dozens of businesses have announced ex­pansions in our state,” said DEED Commis­sioner Matt Varilek.

CNBC recently ranked Minnesota the sixth best state for business in the coun­try. The study ranked all 50 states on 128 metrics in 10 broad categories of compet­itiveness, including infrastructure, work­force, and quality of life. The study ranks each state based on the attributes it uses to sell itself.

Virginia, North Car­olina, Texas, Georgia, and Florida came in ahead of Minnesota in the annual CNBC rankings.

DEED and the Fed­eral Reserve Bank of Minneapolis have conducted a Survey of Minnesota Busi­ness Services Firms annually since 2006. A detailed report of the 2024 survey, along with each survey done since 2017, is avail­able on the DEED website.

“This survey part­nership with DEED provides us with on-the-ground intelli­gence about the busi­ness conditions and expectations for in­flation and hiring that is key to our under­standing of the nation­al economy,” said Joe Mahon, Regional Out­reach Director for the Federal Reserve Bank of Minneapolis.

The results this year were not all rosy. Busi­ness services firms are pessimistic about the outlook for the overall economy in the com­ing year. Declines in consumer spending indicate further con­traction. Similarly, the survey reflects dimin­ishing profitability. Respondents expect inflation to rise, re­flecting cautious op­timism about slowing price increases.

A question about credit conditions re­vealed that businesses experienced a slight deterioration com­pared to last year. Roughly 40% report higher interest rates, up from 35% the year before.

DEED is Minneso­ta’s principal econom­ic development agen­cy. It is charged with promoting business re­cruitment, expansion, retention, workforce development, interna­tional trade, and com­munity development. Find out more about DEED by visiting the DEED website, https://mn.gov/deed/.

Steve Fernlund
Steve Fernlund
Typically these “about me” pages include a list of academic achievements (I have none) and positions held (I have had many, but who really cares about those?) So, in the words of the late Admiral James Stockwell, “Who am I? Why am I here?” I’m well into my seventh decade on this blue planet we call home. I’m a pretty successful husband, father, and grandfather, at least in my humble opinion. My progeny may disagree. We have four children and five grandchildren. I spent most of my professional life in the freight business. At the tender age of 40, early retirement beckoned and we moved to Grand Marais. A year after we got here, we bought and operated the Cook County News Herald, a weekly newspaper in Grand Marais. A sharp learning curve for a dumb freight broker to become a newspaper editor and publisher. By 1999 the News Herald was an acquisition target for a rapidly consolidating media market. We sold our businesses and “retired” again, buying a winter retreat in Nevada. In the fall of 2016, we returned to Grand Marais and bought a house from old friends of ours on the ridge overlooking Lake Superior. They were able to move closer to family and their Mexico winter home. And we came home to what we say is our last house. I’m a strong believer in the value of local newspapers--both online and those you can wrap a fish in. I write a weekly column and a couple of feature stories for the Northshore Journal. I’m most interested in writing about the everyday lives of local people and reporting on issues of importance to them.
RELATED ARTICLES
- Advertisment -

Most Popular