It seems so far removed from our local housing market, but the Europe Economic Crisis could have a big impact on Minnesota and the Twin Cities.
Minneapolis St Paul Business Journal has an article about the jobs being cut in Minnesota by European owned companies.
Of the 10 European companies with more than 550 employees in Minnesota, only two added jobs here between 2010 and 2012. Another reported no change. The remaining seven cut about 1,400 positions as the European economy floundered in that period.
This is just a fraction of the impact Europe has on our marketplace. Their article only addresses European Companies, it does not address our locally owned companies reliance on exports to Europe.
Exports of manufactured goods, services and agricultural commodities to foreign countries are an extremely important part of Minnesota’s economy, accounting for nearly $31 billion in revenues and tens of thousands of jobs statewide.
Minnesota’s GDP is approx 281,712,000,000 annually. So Exports account for approx 11% of the State’s Economy.
Below is a graph from Minnesota Department of Employment and Economic Development’s 1st Quarter 2012 Export Trade Report.
This shows that approx 20% of the exports are going to the E.U. This is not the largest export market, but 20% is a big piece of the pie. Currently Minnesota Exports have been growing, which is great for Minnesota. The concern I have is what the outcome of the European Economic Crisis may have on Minnesota’s exports. Minneapolis Business Journals article may have been an early warning sign. I will try to keep an eye on the exports going forward.