January 5, 2017
Rated as one of the top cities for doing business in the country by Inc. Magazine, Rochester is favored among both home-grown and national brands. In fact, according to Rochester Area Economic Development, Inc., the city and its surrounding communities have been recognized for their collaborative and innovative spirit —ranking number three in patent filings per capita and supporting entrepreneurial communities and start up ventures.
So what’s to love? Rochester is home to a strong labor pool, a highly educated workforce, and boasts access to over 45 two- and four-year higher education institutions. Big names like Mayo Clinic, Hormel, IBM, Red Wing Shoes, Federated Insurance, Fastenal and Seneca Foods are just a few of those who choose to do business here.
Here are 6 more reasons why businesses are flocking to Rochester:
#1. Utility Savings
Minnesota is one of the few states to exempt energy used in the manufacturing process from sales tax. This exemption includes natural gas, electricity and other utilities. This provides great bottom-line savings to heavy energy users.
#2. Quality of Life
Rochester is frequently recognized by Money magazine (dating back to the 1980s) as one of the best places to live in the United States —ranging from best in the Midwest to best overall. In fact, it’s been said to “radiate a cosmopolitan style without big city ills.”
#3. Solid Infrastructure
From Interstate and U.S. highways to rail freight, and international air, passenger and cargo facilities, Rochester’s transportation infrastructure makes the business of doing business easier for today’s fast-paced companies.
#4. Strong Workforce
The Rochester area draws qualified workers from 30 to 50 miles away, and it’s estimated that the true labor force willing to commute to the area is around 150,000 people.
#5. Finance Programs
Businesses looking to move or expand into Rochester can draw on a range of private and public funding options. Federal, state and local government financing and incentive programs are available, as is venture capital.
#6. Tax Incentives
Minnesota’s corporate tax rate of 9.8% is applicable to the taxable portion of corporate income. In 2014, Minnesota adopted the single sales apportionment, making it a competitive location for headquarters and businesses that routinely make capital investments. Additional tax credits are also available.
Starting a Business in Rochester
From life sciences to tourism, manufacturing to technology, Rochester is home to a diverse mix of companies —each with their own unique offerings.