Leaders Magazine - North Dakota: Beautiful for Business
Printed in the October, November, December 2001 Issue
October 23, 2001
Key: GH: Governor Hoeven, PG: Patrick Gillis
PG: What do you tell CEOs looking at your state insofar as why they should consider it as a place to locate part of their company?
GH: That we have the best workforce anywhere in the world - a high-quality labor force. Everybody that does business in North Dakota is amazed at the caliber of our folks. They are highly educated, highly motivated, and they have the best work ethic in the nation. Nowadays, business is all about productivity - and our folks produce.
We also have a very business-friendly environment and that's true in a number of ways. North Dakota is a low-cost place to do business. We have low-cost, dependable energy. For high-tech companies, that's critically important. We have a good mix of energy sources - oil, natural gas, and clean-coal technology. We have the cleanest air standard in the country. We're number one in land reclamation. Exporting 60 percent of our energy, we more than cover our own energy needs, and we're able to help the rest of the country. We also have hydropower, and we're developing renewable sources, too - wind energy, ethanol, bio-diesel.
Another big draw for North Dakota is that we have a simple, streamlined regulatory environment. If someone wants to do business in North Dakota, they have access to the people that they need to talk to at the decision-making level. We expect to put a common sense solution on the table in front of them today. Not tomorrow, not a month from now, not a year from now - today.
PG: President Bush was here recently, and you and he talked about how to incorporate North Dakota into his national energy policy.
GH: His energy policy ties in very much with North Dakota. And as a country it ties in with what we need to do as a nation and that's to develop a long-term policy, with real solutions. It involves not only prudent stewardship of the environment, but also using new technology to continue to improve our standard of living.
North Dakota is a leader in the country in clean-coal technology. In addition, we have the only coal-gasification plant in the country. It takes our lignite coal, a North Dakota resource, and converts it into natural gas. And there's a real demand right now for natural gas.
PG: You've said the number one challenge facing North Dakota is to create better-paying jobs. How do you incorporate that into your economic development initiatives?
GH: There are five areas that we're growing - advanced manufacturing, technology based business services, ag processing, tourism and energy. We are diversifying our economy in these industries and others. We have very low unemployment, and as we create more jobs, that pushes wage rates up. It's a combination of targeting higher paying jobs in these growth areas and fostering closer cooperation with higher education; a rising tide that lifts all boats. As folks have more disposable income, that generates more economic activity.
PG: Your state is increasing its tourism. It's now rivaling agriculture as your number one GDP earner.
GH: In this last legislative session, we completely changed our economic development structure. We took what were four separate entities - our Economic Development and Finance, Department of Tourism, Workforce Training, and Community Services - and combined them into a one-stop shop, the Department of Commerce. We can take care of the customer in one place and capitalize on the synergies in marketing, financing and other disciplines.
We need to market our state more and emphasize all the qualities we have to offer. North Dakota is a great place to do business with great people. It's a great place to live, work and recreate.
PG: There seems to be a feeling that many North Dakotans are a little defensive about being from the state - they almost apologize for it. At the same time, many believe that your campaign on economic development has put you are on the offense in turning that feeling to one of pride in being from North Dakota.
GH: Maybe we don't brag about ourselves or about our state, maybe it's our Scandinavian, German heritage, but I think we're starting to realize just what we have here.
When a North Dakotan leaves our state and goes to California, or to the East Coast, or even to Minneapolis or Denver, as soon as an employer finds out they are a North Dakotan, finds out that they have this great education, and a great work ethic, they hire them right on the spot. What they haven't realized before is that if they come and do business in our state, everybody they hire is like that. Now finally, we're out talking about our state.
PG: There are lots of North Dakotans who have built successful businesses in other states. What are your thoughts on trying to lure them back to open a subsidiary here?
GH: Business is about relationships, and that's what we're working on doing. We're working on getting out there and building relationships. As we establish those relationships, more folks are going to do business here. Obviously, with somebody that's got a North Dakota tie, it's easier to get in the door and recreate that relationship. We're focused on connecting with as many folks as we can and with the decision makers from around the country.
