Happy Annual Meeting week! Looking forward to seeing you all there.

Last week at the annual MN Chamber of Commerce Executives Conference I had the opportunity to hear from Dr. J. Myles Shaver, University of Minnesota professor and author of Headquarters Economy: Managers, Mobility, and Migration. He shared a 2026 update—approximately ten years after his original research explained why Minnesota is one of only 19 metro areas in the world with such a high concentration of corporate headquarters.

The reasons for our unique position have little to do with the typical explanations. It’s not about industry clustering—we’re one of the most diverse economies in the nation. It’s not about geography—most of our companies could locate anywhere. We’re not “riding a wave,” either; while the Midwest and Northeast lost headquarters over the last decade, Minnesota held steady. Nor is it about tax incentives. We don’t lure companies here—we grow them.

According to Dr. Shaver’s latest findings, the real explanation lies in two forces:
1. Human capital. Minnesota continues to offer an exceptionally well‑educated workforce, especially in professional and managerial roles. We remain a top destination for dual‑career couples/professionals, a major competitive advantage in a knowledge economy.
2. Cross‑sector mobility. Because our economy is so diverse, leaders move between industries, creating powerful cross‑pollination that strengthens both people and companies.
This dynamic is rare. As Shaver put it, “It’s hard to recruit people to Minnesota—and almost impossible to recruit them away once they’re here.” Still, we are losing more young BIPOC professionals, entrepreneurs, and those commercializing emerging technologies—an area demanding attention.

So, what’s changed in 10 years? Remote work, generational shifts, and new expectations—but the core pattern remains: people come for opportunity and stay for quality of life. In fact, fewer people want to live elsewhere, and more of our leaders are transplants who choose to remain.

Shaver’s final takeaway was unmistakable:
Minnesota is the best region in the country for dual‑career professionals.
Our challenge now is addressing headwinds—economic concerns, cost of living, and slower attraction—while leaning into our enduring strengths.

Because our headquarters economy isn’t an accident. It’s a triumph of people, talent, and place.

See you in the trenches,
B

First off, last call for our Annual Meeting on Thursday, February 26! Register by Feb. 18 to ensure you have a spot!
 
Reviewing 2025’s performance and early indicators for 2026 reveal a mixed but meaningful set of signals—some concerning, some encouraging, all important for Minnesota’s business community to track.
 
First, the big headline: Canadian tariffs are hitting Minnesota hard. Congressional support for them is waning.

• Minnesota counts Canada as the state’s largest trading partner. In 2024, Minnesota exported $7.5 billion to Canada and imported about $14.7 billion. DEED data from January shows that in the third quarter Minnesota’s exports for farm, mining and manufactured goods were down nearly $1 billion, or 14%, compared with the same time frame in 2024.

• As of Feb 12: exports to Canada from MN continue to fall, now by double digits. And the U.S. House (as of Feb 12) voted to end the tariffs (though not clear if this will make a difference).
• Research from the nonpartisan Tax Foundation released this month showed the effects of the tariffs on the average U.S. household was $1,000 last year.

 
At the same time, the Minneapolis Fed 2025 Economic Conference pointed to mixed growth.

• Modest GDP growth continued while labor market cooled.
• Manufacturing, as measured by the Purchasing Managers Index (PMI), is currently at 52.6%, marking the first expansion in 12 months. This increase reflects a significant rebound in economic activity, up from 47.95% in December.
• Manufacturing, mining, and professional services drove growth. Agriculture continues to face real challenges, compounding the export slowdown noted above.

 
What did Operation Metro Surge ”accomplish”?
By the numbers:

• Over 4,000 people were arrested during the surge.
• Minneapolis estimates businesses lost $203 million through the end of January, and one in five residents need food assistance.
• A survey of 90 Latino-owned businesses estimates a third have shut down.
• Home sales in the Twin Cities dropped nearly 20% last month.
• 14 federal prosecutors resigned from the US Attorney’s office
• 2 journalists were arrested.
• Worst of all, 2 people — Renee Nicole Good and Alex Pretti — were killed by ICE agents.

 
Business Support

• www.WeLoveTC.com
• Salt Cure Fund (national day of support – February 18)
• Minneapolis Foundation fund
• Saint Paul & Minnesota Foundation fund
• MN launched  $10M loan program

​We are hopeful that recent announcements of Operation Metro Surge drawing down will come to fruition quickly. We all have a role to play in helping to build back the strength of our local economy, specifically for small businesses that will need to catch up from their losses to remain strong. Thank you to all of you who are examining your own spheres of influence and how you can offer support.
 
See you in the trenches,
B

The past few weeks have been heavy for so many of us. We feel it with you.
 
Here’s the tension I’m holding: we don’t always know what to do next in a moment like this - but we are very grounded in the how. For us, the how looks like showing up with integrity, consistency, and commitment. It’s keeping our promises, even when the environment is uncertain. It’s telling the truth about what we know and what we don’t. It’s staying connected to those most impacted and elevating the work of trusted community partners.
 
Our focus remains:

• Integrity. We’ll keep listening, name what we’re hearing, and share practical resources when they truly help.
• Consistency. You can expect us to be reachable, responsive, and steady. Office hours don’t disappear because the news cycle is hard; if anything, this is when reliability matters most.
• Commitment. We’re committed to the long game - supporting employers, workers, and the future we’re building together as a region. That means continuing our day-to-day work even as we navigate what’s in front of us.

 
We’ll keep collaborating with trusted partners who are closest to the needs on the ground, rather than duplicating effort. We’ll continue convening leaders to problem-solve - and to remind one another that resilience is a team sport. And we’ll keep the Chamber fully operational, because stability is not a luxury right now; it’s part of our job.
 
You’ll also see this posture reflected at our upcoming 158th Annual Meeting. We chose “Unshakable Leadership” not because anyone has all the answers, but because leadership, at its best, is a practice: show up, tell the truth, do the work, and keep doing it—together. Consider this week’s note a preview of that spirit.
 
If you’re feeling stretched or unsure, you’re not alone. In moments like this, the what can change by the day. The how is where we plant our feet: with integrity in our words, consistency in our actions, and commitment to one another. That’s how we’ll keep moving forward—steady, present, and in service to this community we share.
 
Ways We’re Creating Space to Come Together

• Our 158th Annual Meeting (Feb 26) – Unshakable Leadership
  Later this month, more than 700 business and civic leaders will gather. Not because anyone has all the answers, but because leadership is strengthened in community. Consider this week’s note a preview of that spirit. 
• Lunch With Leaders: March Mavericks (Mar 11)
  A conversation with innovators, disruptors, and glass ceiling breakers – a thoughtful dialogue about the limits we've placed on ourselves...and how we've shattered them. 
• Chamber Connect (Mar 19)
  This one is our “Morning Edition!” Our Chamber Connect events and smaller convenings are intentionally low-key and relational. They create space for business owners and leaders to check in with one another, share what they’re navigating, and remember they’re not carrying this alone. These aren’t about polished talking points—they’re about connection and consistency. 
• Young Professionals (Feb 20) & Leadership Development Events
  Join emerging leaders and young professionals at the Science Museum for an evening of connection, learning, fun, and science! We'll have our own space to connect with young professionals across the metro, and the opportunity to take part in the Museum Night trivia and shows. 
• Workforce & Skills-Based Hiring Workshops (Feb 24, Mar 10)
  Practical collaboration matters. These workshops bring employers together to focus on solutions – supporting talent, adapting practices, and keeping opportunity moving forward even when external conditions are uncertain. This is leadership through action.

 
See you in the trenches,
B

As a Chamber, our commitment is to walk alongside you - creating space for connection, learning, and steady leadership during moments that test all of us. This is not about having perfect answers. It is about showing up with purpose, values, and a shared sense of responsibility.
 
Our upcoming 158th Annual Meeting is more timely than we’d anticipated. Designed to bring leaders together, this year’s program will center on Unshakable Leadership, on what it takes to lead with clarity, empathy, and resolve when the path forward is not always clear.  We are honored to welcome three trusted leaders as our panelists: Steve Grove, publisher of the Minnesota Star Tribune; Matt Majka, CEO of the Minnesota Wild; and Chanda Smith-Baker, President and CEO of the Saint Paul & Minnesota Foundation.
 
More tools, conversations, and resources:

• Minnesota Companies Mobilize $3.5 Million For Immediate Small Business Support
  Minneapolis Foundation’s Economic Resource Fund
  The 28 Minnesota companies that have seeded the fund include: Allianz, Allina Health, Andersen Corporation, APi Group, Best Buy, Blue Cross and Blue Shield of MN, C.H. Robinson, CHS, Delta Dental, Donaldson, Ecolab, General Mills, HealthPartners, Kraus-Anderson, Land O’ Lakes, Inc., Medica, Medtronic, Mortenson, Prime Therapeutics, Securian Financial, Sleep Number, SPS Commerce, Target, Tennant Company, Thrivent, The Toro Company, U.S. Bank, and Xcel Energy. Companies and individuals interested in contributing can do so here: mplsfdn.org/erf   Stay tuned for updates on grant availability.​

• I appreciate Tom Horner’s opinion in last week’s Minnesota Star Tribune. I thought he spoke well to the challenges faced by industry leaders. And my position continues to be that we must stand together, and remember that each of us is facing challenges the rest of us don’t understand. Assuming good intent is important so that WE don’t become divided. Horner reminded us, “it is reinforcement of the adage, ‘Better to light a candle than curse the dark.’”

• MPR hosted a State of Minnesota Town Hall, “exploring life in Minnesota during an unprecedented immigration enforcement operation,” hosted by Jeremy Hobson and Catharine Richert.  You can watch it here on Youtube.

 
See you in the trenches,
B