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Serving the Iron Range and northeastern Minnesota
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Cut Business Costs in northeastern Minnesota
Economic downturns have a unique way of focussing businesses on cutting costs and increasing productivity. As today’s economy continues to “go south”, maybe it’s time for you to look north to enhance your bottom line. Northeastern Minnesota can provide your business with highly skilled work force for far less cost than their metropolitan counterparts, and commercial real estate, although stable in our region, is a fraction of the cost.
Some key facts to consider:
The median wage in northeastern Minnesota is nearly 20% less than in Minnesota’s metro area according to the Minnesota Department of Economic Development.
| Location | Median Wage |
|---|---|
| Seven County Mpls-St Paul | $19.00/hr |
| Minnesota | $17.25/hr |
| Northeastern MN | $15.36/hr |
In all industry sectors besides natural resources and mining, labor is significantly less than that in the metro area and as compared to the state averages according to the Minnesota Department of Economic Development.
| Median Wage | ||
|---|---|---|
| Industry | Northeastern MN | Mpls/St. Paul |
| Education and Health Services | $16.58/hr | $18.71/hr |
| Trade, Transportation and Utilities | $12.13/hr | $15.80/hr |
| Public Administration | $20.85/hr | $24.28/hr |
| Leisure and Hospitality | $8.53/hr | $9.85/hr |
| Manufacturing | $17.82/hr | $20.82/hr |
| Professional and Business Services | $15.17/hr | $21.94/hr |
| Financial Activities | $14.69/hr | $21.74/hr |
| Construction | $22.04/hr | $25.84/hr |
| Natural Resources and Mining | $24.23/hr | $19.98/hr |
| Information | $15.42/hr | $24.23/hr |
| Other Services | $11.43/hr | $14.57/hr |
Northeastern Minnesota workers are willing to work for less in order to stay in the region. According to the Northeast Minnesota Labor Force Assessment 2001 conducted by the Center for Economic Development at the University of Minnesota, 70% of workers choosing northeastern Minnesota would take a suitable job in the area "even if meant a lower wage than they could command elsewhere."
The average office lease rate is 27% less in northeastern Minnesota compared to the west metro area according to Northland Connection, NorthMarq, Real Capital Analytics, Inc.
Average office lease rates (net, all classes): NE MN: $10.78; West Metro: $14.76.
The average cost per square foot for office buildings is 58% less in northeastern Minnesota compared to the Metro Area and 78% less than the national average according to Northland Connection, NorthMarq, Real Capital Analytics, Inc. based on averages calculated for NE Minnesota from a sampling of available properties in Aitkin, Cohasset, Eveleth, Gilbert, Grand Rapids, Hibbing and Virginia.
Average cost per square foot for office buildings (all classes): NE MN: $56.57; Metro: $134; USA $261.
The average cost per acre for commercial/industrial land in northeastern Minnesota is less than 2% that of the Metro Area and the national Average according to Northland Connection, NorthMarq, Real Capitl Analytices, Inc. based on averages calculated for NE Minnesota from a sampling of available properties Two Harbors, Grand Rapids, Ely and Hibbing.
Average cost per acre (zoned commercial/industrial): NE MN: $52,132; Metro: $2,962,080; USA: $3,179,880.
Contact our Business Development Division for more information at 1-800-765-5043, 218-735-3000 or E-mail: developmentstrategies@ironrangeresources.org