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Empowering Tomorrow: The Importance of Investing in Development, a State’s Perspective

Catalina Valencia I Executive Director of Business Development

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Introduction

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We are Minnesota's primary economic development and workforce development agency

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DEED’s Business Development Office is comprised of four distinct, yet closely interrelated teams

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Business Development Managers

Bus. recruitment, expansion and retention

Workforce Strategy Consultants

Innovative workforce solutions

Minnesota Jobs Skills Partnership

Workforce development and training grants

Energy Transition Office

Support to communities and workers impacted by power plant closures

Business Development Office

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Economic Development Past and Present

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Our tendency to focus on winning huge, ‘transformative’ projects has not shifted. What’s changed is the dimension of those projects.

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Unprecedented industry transformations and economic and sociopolitical dynamics are reshaping location decisions.

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Reshoring, onshoring, friendshoring = Influx in FDI

Megaprojects

Capital intensive = larger incentive packages

Labor intensive = greater workforce/ talent needs

Speed to market = faster timeframes = readiness

Large, ready-to-go sites. Large footprints

Larger utility demands

Complex infrastructure needs

Renewables

Resource intensive

Cost and quality balanced more equally

Incentives – headcount filled differently

Automation, AI…

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However, by chasing the ‘bright, shiny objects (projects), we can forget what matters most.

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Project opportunities DEED’s Business Development Team has worked on over the past two years

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Business Development Strategies and Energy Transition

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Focus on three pillars to support business growth through the imminent energy transition

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Business recruitment, expansion and retention focus on top 5 industry sectors: clean tech, health tech & life sciences, advanced manufacturing, food manufacturing, and digital technologies.

Revamp of our Foreign Direct Investment (FDI) promotion efforts in the climate tech space.

Support to our small businesses and innovation ecosystem in advancing green economy efforts.

Incentives to start and grow businesses that support a clean economy.

Economic Development

Energy Transition Office (ETO) and Community Energy Transition Grants Program

Cleanup and redevelopment programs

Community Development

Minnesota Jobs Skills Partnership

Workforce Strategy Consultants

Drive for 5

Workforce Development

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>80% of project opportunities from sectors categorized under our top 5 target industries

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Project opportunities DEED’s Business Development Team has worked on over the past two years (2023-present)

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Specific industry examples

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Food Manufacturing

    • Packaged meals
    • Fermentation for nutrition and care
    • Food for camping and backpacking
    • Frozen foods
    • Natural sweeteners
    • Powdered milk
    • Raw frozen and dehydrated food for pets
    • Specialty foods (e.g., Sauces)
    • Ethnic foods
    • Edible seeds for snacks
    • Tomato and dairy-based sauces for restaurants, frozen food manufacturers, and retail applications

Health Tech & Life Sciences

    • Antibiotics
    • API drug substance manufacturing
    • Medical biologic therapeutics for tissue regeneration
    • Nuclear medicine
    • Intact Kerecis fish-skin to treat wounds, burns and other complex acute and chronic wounds.
    • Optical products
    • Orthodontal equipment
    • Catheters
    • Image guided therapy devices
    • Implants and medical instruments
    • Renal care devices, pumps
    • Cochlear implants
    • Diagnostic products
    • Medical testing devices
    • Live biologics and vaccines for animal health
    • Liver disease biotech solutions
    • Amino acids for food, feed and pharmaceutical applications

Clean Tech

    • Renewable fuels
    • Energy storage
    • Electric buses, fire trucks
    • Smart charging stations
    • PV cells and panels
    • Heat pumps
    • Bio-based chemicals
    • Biocomposites
    • Green ammonia
    • High-performance, rare-earth free, permanent magnets

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Advanced Manufacturing

    • High precision aerospace and defense components
    • Machinery manufacturing
    • Transportation equipment manufacturing
    • Plastics and rubber products manufacturing
    • Automation equipment

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Digital Technologies

    • Semiconductors
    • High performance mono-crystalline silicon ingots and wafers
    • Integrated circuits, radiation hardened products, and electronic systems solutions for military & defense, space, and industrial markets
    • Magnetic sensors for medical devices
    • Microelectronic and surface mounted technologies
    • Nano tube tech
    • IT and cybersecurity
    • AI for medtech
    • Design, program, and implement PLC/HMI/SCADA systems for OEMs and industry

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Investment Priorities

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Some potential areas that can drive economic growth in the Iron Range

  • Green (H2)-based ironmaking, DRI
  • Advanced biofuels (if the RFS is amended to allow for more qualifying feedstocks)
  • Renewable heating fuel
  • Biocrude – low carbon feedstock for use in petroleum refineries to produce renewable gasoline and diesel
  • Wood-derived food additives – e.g., cellulose, lignin, and hemicellulose that serve as stabilizers, thickeners, and emulsifiers in numerous food applications
  • Other products made from forestry resources

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