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Once primarily a producer of raw materials, the state’s’s economy has transformed in the last 200 years to emphasize services and finished products. The most significant characteristic of the economy is its diversity; the relative outputs of its business sectors closely match the nation as a whole. The economy of the state had a gross domestic product of $234 billion in 2005. Thirty-six of the nation’s top 1,000 publicly traded companies are headquartered in Minnesota, including Target, General Mills, U.S. Bancorp, UnitedHealth Group, 3M, Medtronic and Best Buy. The second-largest privately owned U.S. company, Cargill, is headquartered in Wayzata Minnesota.
Minnesota’s earliest industries were fur trading and agriculture. Minneapolis Minnesota grew around the flour mills powered by St. Anthony Falls. Although less than one percent of the population is employed in the agricultural sector, it remains a major part of the state’s economy, ranking 6th in the United States in the value of products sold. Minnesota is the nation’s largest producer of sugar beets, sweet corn, green peas for processing and farm-raised turkeys. Forestry remains strong, including pulpwood processing, logging, paper production and forest products manufacturing. The state was famous for its soft-ore mines which produced a significant portion of the world’s iron ore for over a century. Although the high-grade ore is now depleted, taconite mining continues, using processes developed locally to save the industry. In 2004, the state produced seventy five percent of the nation’s usable iron ore. The mining boom created the port of Duluth Minnesota which continues to be important for shipping ore, coal, and agricultural products. The manufacturing sector now includes technology and biomedical firms in addition to the older food processors and heavy industry. The country’s first indoor shopping mall was Edina’s Southdale Center and its largest is Bloomington’s Mall of America.
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