The American Business Journal: North Dakota

North Dakota
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admin on 01 March, 2010 05:16:00
 
This month, The American Business Journal is focusing on the state of North
Dakota. Known as the Flickertail State in reference to the abundance of
Richardson ground squirrels, North Dakota has a unique economic landscape.
Agriculture: Fields a plenty
North Dakota relies heavily on its agricultural output.  Despite the fact that
less than 10 percent of the population is employed in the agricultural industry,
it is a major part of the state’s economy. Thanks to its extremely fertile
soil, North Dakota produces more barley, sunflower seed, spring and durum wheat
(commonly used for pasta) than any other state in the country. In terms of
revenue, North Dakota’s top five agricultural products are wheat, cattle and
calves, soybeans, corn and sugar beets. Beef cattle are the most important
livestock product, followed closely by milk.
After agriculture, petroleum and food processing are major industries which
contribute to the state’s $24 billion GDP.
Manufacturing hub
Recently, manufacturing industries have grown, especially food processing and
farm equipment. The state’s coal and oil reserves are plentiful, and it also
produces natural gas, lignite, clay, sand, and gravel.
Manufacturers add value to raw products by creating manufactured items. For
example, cotton cloth becomes more valuable than a boll of cotton (a rounded
seed pod of the cotton plant) through manufacturing processes.
In conjunction with North Dakota’s solid agricultural base, food processing is
North Dakota’s most important manufacturing industry. Major food products
include: bread and pasta, frozen potato products and seed oils (flaxseed,
sunflower seed). Dairy products include milk and cheddar cheese. Meat products
are steaks and sausages. Sugar refineries process North Dakota’s sugar beet
crop.
Machinery ranks second in the manufacturing arena, construction machinery, farm
machinery, for example. North Dakota is also a major manufacturer of computer,
electronic, fabricated metals and petroleum products, aircraft and motor vehicle
parts.
Energy powerhouse
North Dakota’s Great Plains area, which is partially in the state, is known as
the “Saudi Arabia of wind energy” and gives the state the capability of
producing well over a billion kilowatt hours of energy. To put that into
perspective, North Dakota produces enough wind energy to power 25 percent of the
country. The wind energy sector is viable for the state, particularly because of
the its large rural expanses and high wind speeds.
The state’s oil reserves of the state may be in excess of 400 billion barrels
of oil—that’s 25 times more than the Arctic reserves. However, a larger
portion of the oil is locked in the Bakken formation, and today’s technology
can only unearth a small portion in relation to the massive reserve.
Banking
The finance sector in North Dakota is very healthy. The state-owned bank made
$58.1 million in profits in 2009. Despite falling short of its predicted
profits, the results still set an earnings record for a sixth straight year.
The Bismarck-based bank missed hitting its own $60 million profit target by
cutting interest rates for one of its student loan programs and raising its
allowance for soured loans from $8.4 to $10.3 million.
North Dakota
While in North Dakota, visitors are at no loss for activities to do, including
hunting, fishing, winetasting, as well as enjoying the outdoors in its national
and state parks.
We are pleased to focus on North Dakota, putting the spotlight on companies and
entrepreneurs who are working hard to keep the industrial state thriving.