A Regional Comparison Minneapolis Saint Paul Regional Economic Development Partnership

Greater MSP Baltimore A Regional Comparison Minneapolis Saint Paul Regional Economic Development Partnership

TOP EMPLOYERS IN AND MSA GREATER MSP EMPLOYER EMPLOYEES EMPLOYER EMPLOYEES Target Corp. 26,694 John Hopkins Medical Institutions 22,000 Allina Health System 26,000 MedStar Health 22,000 University of Minnesota 25,960 Black & Decker Corp. 22,000 HealthPartners Inc. 22,500 John Hopkins University 15,759 Fairview Health System 22,000 Verizon Inc. 14,000 Wells Fargo Bank Minnesota 20,000 Northrop Grumman Corp. 11,000 MSA Minnesota State Colleges and Universities United Health Group Inc. 3M Co. U.S. Bancorp Medtronic PLC. 16,494 15,750 15,000 12,010 9,000 Constellation Energy Group McCormick & Co. CareFirst BlueCross BlueShield W.R. Grace & Co. University of Maryland Medical System 8,700 8,000 6,500 6,300 6,162 Executive summary ECONOMIC DATA POPULATION (2015) GREATER MSP 3.52M MSA 2.80M SuperValu Inc. Delta Air Lines Inc. Best Buy Co. Inc Hennepin County TOTAL 9,000 8,500 8,000 7,822 244,730 LifeBridge Health Legg Mason Inc. Megellan Health Services Inc. Bank of America Corp. TOTAL 5,691 5,300 4,800 4,000 162,212 Greater MSP and Baltimore are both midsized major metro areas with major research and educational institutions, world-renowned healthcare facilities, and a diverse mix of (2016) AVERAGE WAGES (2016) 1.85M $53.1K 1.30M $53.7K Greater MSP s top-15 largest employers employ more total people than the largest employers in Baltimore, and Greater MSP has a higher share of its largest employers in the private sector. Both metros are home to major universities and healthcare systems, finance, food products, and advanced manufacturing employers. industries driving economic output. The two regions also differ in a number of UNEMPLOYMENT RATE (JUNE 2016) 3.7% 4.7% Sources: Minneapolis-St. Paul Business Journal Book of Lists, Largest Employers, 2016; Baltimore Sun, Top Maryland Employers ways: the Greater MSP region s workforce is significantly larger, with the average worker earning about the same per year as those DEGREE COMPLETIONS (2014) (ASSOCIATES OR HIGHER) 40K* 35K FORTUNE 500 COMPANIES, 2016 (AND RANK) in Baltimore. As a whole, Greater MSP s economy was roughly 36% larger than Baltimore s in 2014, as measured by Gross Regional Product (GRP), and the Greater MSP region exported $14.8 billion more goods and services than Baltimore in 2014. Additionally, the two regions differ greatly in demographic composition, educational attainment, racial wage gaps, commuting characteristics, and innovation. GRP (2014) EXPORTS (2014) LABOR FORCE PARTICIPATION RATE (WHITE) LABOR FORCE PARTICIPATION RATE (POC) $235.7B $21.2B 79% 66% $173.5B $6.4B 74% 65% COMPANY UnitedHealth Group, Inc. Target Corp. Best Buy Co. Inc. CHS 3M Co. U.S. Bancorp SuperValu, Inc. General Mills, Inc. Source: Fortune Magazine, 2016 RANK 6 38 71 84 93 131 160 161 COMPANY Ecolab, Inc. C.H. Robinson Worldwide, Inc. Land O Lakes Ameriprise Financial, Inc. Xcel Energy The Mosaic Company Thrivent Financial for Lutherans St.. Jude Medical, Inc. RANK 206 208 215 232 257 316 318 465 COMPANY None RANK N/A *Does not include Capella University or Walden University degrees

AGE CHARACTERISTICS 30 25 20 15 10 5 0 UNDER 20 YEARS YEARS 20-39 40-59 YEARS 60-79 YEARS 80 YEARS AND OVER Age distribution Greater MSP has a younger population than Baltimore, and is expected to grow at an overall faster rate over the next five years. Diversity Baltimore is more diverse, and the Greater MSP region faces a larger gap between white and POC employment. RACE CHARACTERISTICS WHITE Poverty Overall poverty rates are the same in the two metros at 11%. Poverty in the Greater MSP region is mostly concentrated in pockets within the core cities of Minneapolis and Saint Paul. Neighborhoods adjacent to downtown Minneapolis, along with areas along University Avenue in Saint Paul have the highest concentration of the population falling below the poverty line. Conversely, nearly all poverty in the Baltimore metro is concentrated within the city limits of Baltimore, where nearly every census tract has significant levels of households in poverty. The Greater MSP region and Baltimore have drastically different demographic characteristics only 24% of all residents in the Greater MSP region identify as a person of color (POC), compared to 41% in Baltimore. While the Greater MSP region has a lower overall employment and poverty rate than the Baltimore MSA, Greater MSP s POC population has a significantly higher unemployment and poverty rate than POC in Baltimore. Approximately 25% of all POC in the Greater MSP region are living in poverty. BLACK OR AFRICAN AMERICAN ASIAN HISPANIC TWO OR MORE RACES AMERICAN INDIAN AND ALASKAN NATIVE SOME OTHER RACE WHITE PEOPLE OF COLOR WHITE PEOPLE OF COLOR 0.0% 20.0% 40.0% 60.0% 80.0% MSA PERCENT OF POPULATION MSA PERCENT OF POPULATION POPULATION BREAKDOWN (2014 ACS 5-year estimate) UNEMPLOYMENT RATE (2014 ACS 5-year estimate) 75.6% 5.5% 24.4% 11.7% 59.0% 5.9% 41.0% 11.6% The Greater MSP region has a significantly higher proportion of white residents than Baltimore, while the proportion of black or African American residents in Baltimore is four times higher than it is in Greater MSP. POVERTY RATE (2014 ACS 5-year estimate) 6.5% 25.0% 6.3% 17.7% The Greater MSP region has a higher proportion of Asian, Hispanic, and American Indian residents than the Baltimore MSA.

Educational attainment Greater MSP has a higher proportion of working-age adults with at least an associate s degree, but Baltimore awards significantly more engineering and IT degrees. Educational Attainment by Degree (Associate degree or higher) 2014 Among the most in-demand degrees, Greater MSP holds the advantage in annual completions of healthcare and business degrees. Baltimore graduated more engineering and IT students in 2014. Greater MSP has a higher proportion of the population holding at least an Associate s or Bachelor s degree, along with a higher proportion of the population holding at least a high school diploma. 4% 3% 5% 4% LESS THAN 9TH GRADE 9TH GRADE TO 12TH GRADE 21% 23% HIGH SCHOOL DIPLOMA Information Technology 1,805 2,193 A higher percentage of Baltimore adults have an advanced degree. While Baltimore has a higher overall number of working-age adults who did not graduate from high school, the percentage point gap between white and POC adults who did not graduate from high school in Greater MSP is twice as high as this percentage point 9% 10% 23% SOME COLLEGE 21% ASSOCIATE S DEGREE 24% BACHELOR S DEGREE 26% 14% GRADUATE DEGREE AND HIGHER 13% Business 9,714 4,257 gap in Baltimore. 0 5 10 15 20 25 30 Healthcare GRADUATION RATES AT POST-SECONDARY INSTITUTIONS 3-YEAR GRADUATION RATE A 2-YEAR INSTITUTION 6-YEAR GRADUATION RATE A 4-YEAR INSTITUTION 3-YEAR GRADUATION RATE A 2-YEAR INSTITUTION WHITE/POC GAP MINNESOTA 29.0% 62.6% 9.6 PERCENTAGE POINTS MARYLAND 20.1% 65.2% 19.4 PERCENTAGE POINTS Maryland s on-time graduation from 4-year institutions was higher than Greater MSP s, but the gap between POC and white students was significantly higher in Maryland. 11,122 6,267 Engineering 1,512 Source: National Center for Educational Statistics, Integrated Postsecondary Education Data System (IPEDS) 2,004 Source: EMSI Dataset 2016.2

Workforce Both Greater MSP and Baltimore are projected to grow their labor force by at least 3.0% over the next five years, with a diverse mix of occupations driving growth in both metros. TOP 10 OCCUPATIONS 2016 2026 2016-26 CHANGE 2016 % OF MEDIAN HRLY. EARNINGS The two metros share four of five top occupations, with office & administrative support, sales, food preparation & OFFICE AND ADMINISTRATIVE SUPPORT SALES AND RELATED 277,685 181,604 286,886 191,733 3.0% 15.0% 9.8% $18.35 $18.28 serving, and business & financial operations ranking highly. The Greater MSP region s production workforce is nearly triple the size of Baltimore s production workforce, and is FOOD PREPARATION AND SERVING RELATED PRODUCTION 154,358 131,161 163,329 132,778 1.0% 8.3% 7.1% $10.21 $17.36 projected to keep growing over the next ten years. BUSINESS AND FINANCIAL OPERATIONS 127,841 136,212 6.9% $31.78 Led by projected growth in all top-10 occupations, Greater MSP will widen the employment gap between the two regions by 2026. MANAGEMENT TRANSPORTATION AND MATERIAL MOVING HEALTHCARE PRACTITIONERS AND TECHNICAL 123,284 104,215 98,203 130,924 109,001 114,993 5.0% 1 6.7% 5.6% 5.3% $51.20 $17.86 $39.09 EDUCATION, TRAINING, AND LIBRARY 97,106 104,285 5.2% $25.21 PERSONAL CARE AND SERVICE 95,806 112,365 1 5.2% $11.61 MSA TOP 10 OCCUPATIONS 2016 2026 2016-26 CHANGE 2016 % OF MEDIAN HRLY. EARNINGS OFFICE AND ADMINISTRATIVE SUPPORT 206,479 209,938 2.0% 15.8% $17.76 SALES AND RELATED 129,190 133,745 4.0% 9.9% $15.99 FOOD PREPARATION AND SERVING RELATED 109,041 117,790 8.0% 8.4% $10.30 HEALTHCARE PRACTITIONERS AND TECHNICAL 87.180 96,432 11.0% 6.7% $36.69 BUSINESS AND FINANCIAL OPERATIONS 83,160 88,625 6.4% $33.67 TRANSPORTATION AND MATERIAL MOVING 83,156 87,926 6.4% $16.14 EDUCATION, TRAINING, AND LIBRARY 78,193 83,932 $27.18 MANAGEMENT 68,684 73,731 5.3% $53.04 COMPUTER AND MATHEMATICAL 56,319 63,405 13.0% 4.3% $44.44 PRODUCTION 42,939 41,943-2.0% 3.3% $17.65 Source: QCEW Employees - EMSI 2016.2 Class of Worker

THE REGION TOP 10 INDUSTRIES HEALTH CARE AND SOCIAL ASSISTANCE 2016 274,516 2026 336,066 2016-2026 CHANGE 22% Transportation and Commuting MANUFACTURING RETAIL TRADE ACCOMMODATION AND FOOD SERVICES 194,959 184,724 148,778 192,841 193,277 156.645-1% 5% 5% Baltimore s commuters are more spread out, face longer commutes to work, and have less access to public transit. Industries PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES FINANCE AND INSURANCE ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES 119,570 109,052 97,628 134,853 116,263 106,171 13% 7% 9% 2014 COMMUTING CHARACTERISTICS PERCENTAGE OF COMMUTERS TRAVELING LESS THAN 10 MILES FOR WORK AVERAGE COMMUTE PERCENTAGE OF PEOPLE WHO COMMUTE TO WORK ON PUBLIC TRANSIT AVERAGE NUMBER OF REACHABLE WITHIN 30 MINUTES BY PUBLIC TRANSIT OR WALKING Hospitals, retail, finance, and construction rank among the largest industry groups in both metros. Greater MSP s projected fastest growing sector health care & social assistance is expected to add over 50,000 jobs over the next ten years. Additionally, professional, scientific, & technical services, along with construction, are projected to see double digit growth WHOLESALE TRADE CONSTRUCTION MANAGEMENT OF COMPANIES AND ENTERPRISES MSA TOP 10 INDUSTRIES HEALTH CARE AND SOCIAL ASSISTANCE RETAIL TRADE PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES ACCOMMODATION AND FOOD SERVICES 84,601 75,106 69,256 2016 202,071 137,289 111,633 110,680 87,956 89,242 71,439 2026 225,390 139,054 130,358 117,744 4% 19% 3% 2016-2026 CHANGE 12% 1% 17% 6% MSA 49.3% 46.3% 25 MINUTES 30 MINUTES 4.6% 6.4% 17,651 14,633 Despite the metros larger size, Greater MSP commuters generally travel shorter distances to work, and the average commuter in the Greater MSP region saves about 5 minutes per journey to or from work over the average commuter in Baltimore. This is likely due to the fact that the Baltimore metro is part of a larger super region, and a higher percentage of commuters use public transit. Access to public transit, measured by the average number of jobs reachable within 30 minutes by transit or walking, is better in the Greater MSP region. Roughly 13% of POC in employment by 2026. Professional, scientific, ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES 86,644 97,341 12% commute to work on public transit in Baltimore, compared to about 9% of POC in the Greater MSP metro. and technical services and administrative & support will drive Baltimore s industry growth over CONSTRUCTION MANUFACTURING 75,451 55,391 82,084 49,325 9% -11% the next ten years, but the region is projected to lose roughly 6,000 net manufacturing jobs by 2026. FINANCE AND INSURANCE WHOLESALE TRADE 49,775 47,294 49,254 48,319-1% 2% TRANSPORTATION AND WAREHOUSING 44,518 48,441 9%

Innovation Advanced industries are characterized by technology R&D and high-skilled STEM Real estate and urban investment workers. They play a critical role in the While there is significantly more office development and future of any region due to their association construction underway in the Baltimore metro, only one-third of with innovative, inclusive and sustainable regional growth. According to the Brookings Institution, advanced industries make up 9 percent of total national employment, but 17 it is located within the core city of Baltimore. The two metros share similar office inventory and industrial rates, but Baltimore has lower office rental and vacancy rates. percent of U.S. GDP. Demand, measured by year-to-date (YTD) net absorption, is Greater MSP s employment in advanced industries was roughly 171,000 in 2015, less than 10 percent of all total jobs. Baltimore ranks behind Greater MSP in total high in the Greater MSP region, but neutral for Baltimore. Interestingly, even though demand is higher in Greater MSP, the region lags behind Baltimore in the square footage of office space currently under construction, according to Jones Lang LaSalle. jobs and share of employees in advanced industries, and this difference accounts for an estimated $10 billion in additional GRP added to Greater MSP s economy over Baltimore. COMMERCIAL REAL ESTATE Q2 2016 Q2 2016 Maryland, led by major investments in early stage biotechnology and IT companies, leads Minnesota in overall venture capital raised. The Greater MSP region ranks as one of the nation s most innovative regions, with nearly 17,000 unique utility patents granted over the past five years. Maryland has the edge in supporting early-stage company investment, but Minnesota-based employees are more likely to innovate. OFFICE VACANCY RATE OFFICE RENTAL RATE (PRICE PER SQ. FT.) OFFICE INVENTORY (SQ. FT.) YTD TOTAL NET ABSORPTION (% OF STOCK) 14.7% $25.76 68,980,029 0.7% 12.8% $23.13 71,143,469 0.0% OFFICE SPACE UNDER CONSTRUCTION (PER SQ. FT.) 474,239 1,805,552 PERCENTAGE OF POPULATION EMPLOYED IN ADVANCED INDUSTRIES INDUSTRIAL VACANCY RATE 8.2% 8.8%, 2015 RANK* SHARE OF ALL VENTURE CAPITAL INVESTMENT, 2015** UTILITY PATENTS, 2011-2015 INDUSTRIAL LOW-HIGH QUOTED RATES (PRICE PER SQ. FT.) $6.71 $6.31 170,782 14 9.4% $395,188,400 16,722 Source: Jones Lang LaSalle, Local Markets Research, Q2 2016 113,125 17 8.8% $886,384,600 *Ranked in the U.S. *Statewide data for each region. Sources: Brookings Institute, America s Advanced Industries, 2015; MoneyTree/PricewaterhouseCooper; Patenting in U.S. Metropolitan and Micropolitan Areas Breakout By Technology Class, Count of 2011-2015 Utility Patent Grants, U.S. Department of Commerce, U.S. Patent and Trademark Office 3,852 Roughly 90% of Greater MSP s current office space construction is occurring within the CBD downtown of the region s core cities, but only 37% of Baltimore s new office construction is within the core city of Baltimore.

Immigrants are part of America s innovation and entrepreneur economy; immigrants are 30 percent more likely to start a new business; and among the individuals with advanced degrees, immigrants are three times as likely as their U.S.-born counterparts to file patents Katz, Bruce, and Jennifer Bradley. The Metropolitan Revolution: How Cities and Metros Are Fixing Our Broken Politics and Fragile Economy. Immigration While Greater MSP is home to a higher proportion of foreign-born residents, Baltimore s foreign-born population fares better in terms of employment and wages. FOREIGN-BORN POPULATION BY METRO (2010-2014) FOREIGN-BORN POPULATION 2014 FOREIGN-BORN POPULATION 2010 CHANGE (2010-2014) PERCENT CHANGE (2010-2014) PERCENT FOREIGN-BORN 2014 PERCENT FOREIGN-BORN 2010 GREATER MSP 331,886 301,441 30,445 10.1% 9.7% 9.3% MSA 259,051 232,288 26,763 11.5% 9.4% 8.7% Exports and foreign direct investment Despite Baltimore s location and ease of access to global markets, Greater MSP s export value tripled that of Baltimore in 2014, and the region is more visible and attractive to foreign-owned enterprises looking to invest in the United States. While Greater MSP s total export value of 20.3B is significant, the region ranks 17th in the U.S. Foreign-owned enterprises looking to invest in the U.S. have found the Greater MSP region more attractive than Baltimore, and the number of people employed by foreign-owned enterprises increased by 48.3% between 1991 and 2011. Source: U.S. Census Bureau, 2010-2014 5-year American Community Survey Greater MSP has a higher foreign-born population than Baltimore, with nearly 10 percent of MSP s population born outside of the U.S. Both Greater MSP and Baltimore have added over 25,000 foreign-born residents between 2010 and 2014. EXPORTS AND FOREIGN DIRECT INVESTMENT EXPORTS 2015 (BILLIONS) RANK* IN FOES 2011 RANK* IN FOES 1991 20-YEAR PERCENT CHANGE IN FOES While roughly two-thirds of all foreign-born working age adults are employed in $21.2B 15 75,590 13 50,960 48.3% Greater MSP and Baltimore, median household income for foreign-born populations is significantly higher in Baltimore; median household income for foreign-born adults in $6.4B 46 48,050 18 38,750 24.0% Baltimore is nearly $67,500 per year, compared to $50,500 per year in Greater MSP. *Ranked in the U.S. Sources: Office of Trade and Economic Analysis (OTEA), Industry and Analysis, International Trade Administration, U.S. Department of Commerce; Brooking Institute, Global Cities Initiative, 2014

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