07-22-2020 Workshop Packet - Laserfiche WebLink

Home Browse Search

Economic Analysis 24 Commercial Land Site - SWC of Middle Street and Market Place Drive Exposure Minneapolis's strong fundamentals and diverse industrial mix will help limit the economic impact from the coronavirus. An above-average share of Minneapolis jobs are in office-using industries such as finance and professional/business services. Office workers who are able to work remotely are better positioned than those whose jobs rely on personal interactions and will endure a smaller hit to incomes. Banks and insurers will let some positions go unfilled in response to the turmoil in financial markets, but large-scale layoffs are not in the baseline forecast. Still, The Twin Cities Are Not Immune Supply chain disruptions and a decrease in aggregate demand will cause headaches for producers. Minneapolis is hardly a factory hub, but it is more reliant on manufacturing than the U.S. and almost any other top 25 metro area. Though Minneapolis is home to Medtronic and Boston Scientific, large manufacturers of medical devices, neither relies heavily on equipment that will be needed by hospitals for the coronavirus surge. Minnesota's ISM manufacturing index has held up well so far, but it will not be long before it dips into contraction territory. Healthcare The outsize healthcare sector will partially blunt the disruption in other industries caused by the coronavirus pandemic. Demand is climbing thanks to positive population trends and the above- average share of insured residents, and hospitals and other healthcare facilities are investing to handle greater patient loads. Providers are partnering with local schools to recruit, though worker shortages will remain the industry's biggest problem. Conclusion Minneapolis-StPaul-Bloomington's struggle with labor shortages will ease as COVID-19 causes disruptions to demand. Healthcare and office-using industries will help shelter the economy. Longer term, favorable population trends, high industrial diversity, and a skilled workforce will keep Minneapolis a top Midwest performer and in line with the U.S. Positive Attributes Negative Attributes Major research institutions and corporate headquarters foster innovation. Highly educated and expanding labor force attracts firms. Healthy consumer balance sheets. Strong positive net migration. Relatively high tax burden for businesses. Unduly tight labor market; worker shortages in high-skill fields.