By William Smith
What Defines Our Economic Landscape
Inver Grove Heights combines residential neighborhoods, commercial districts, and industrial zones in a city of just over 36,000 people. It’s known for housing major employers like CHS, Inc. and Gertens Greenhouses, alongside many small, local businesses. The city offers affordability, land availability, and a location roughly ten minutes from downtown St. Paul, all of which make it attractive for businesses large and small.
Industry Sectors That Drive Jobs
Retail trade, manufacturing, health care/social assistance, educational services, and wholesale trade make up the largest shares of localized employment. These sectors provide stability—for instance, retail made up nearly one in five jobs in the local employment base in recent study reports. Manufacturing and health care are also major contributors to the city’s labor force. Entrepreneurs targeting these sectors may find good historical footing.
Employment and Workforce Trends
About 83% of working-age adults are employed, and typical one-way commutes average just over 22 minutes—making IGH more convenient than many Twin Cities suburbs. Nearly a quarter of working residents work from home, which is higher than county and state averages. Around 95% of adults over 25 have at least a high school diploma, and more than 40% hold bachelor’s degrees or higher—indicating a well-educated workforce capable of supporting more technical or knowledge-based ventures.
Opportunities and Challenges for Local Businesses
Small Business Growth</
The vast majority of IGH businesses employ fewer than 20 people. In fact, nearly 87% are small-scale operations. These businesses are the backbone of IGH’s economy—serving local customers, creating frequent touchpoints across neighborhoods, and driving economic diversity. Small business owners have access to city resources like the Economic Development Department and Economic Development Authority that help with researching development sites, permits, demographics, and commercial district planning.
Recent Investments and Expansions
The city continues to draw investment. For example, SOMIC Packaging, Inc. is expanding, adding a new facility and dozens of jobs. The Minnesota Department of Employment and Economic Development has supported projects like this to help bring growth and opportunity. Also, recent real estate developments—especially in light industrial and warehouse space—highlight steady demand for commercial property.
What Entrepreneurs Should Keep in Mind
Assessing Location Needs
Available land and commercial districts are key advantages here. But prospective business owners should also examine traffic patterns, zoning rules, and proximity to workforce hubs. Some areas are better suited to commercial or industrial uses than others. Access to highways and infrastructure are additional considerations.
Leveraging Local Resources
The City’s Economic Development Department offers updated maps, statistics, and opportunity sites. Attending the Economic Development Authority’s public meetings—held bi-monthly—allows businesses to stay informed and engaged. Grants, state funds, and development incentives may be available for projects that expand job opportunities or improve community amenities.
Looking Ahead: Trends to Watch
- Telecommuting and home-based businesses may continue to grow, as data suggests a substantial portion of the workforce already works from home.
- Demand for mixed-use developments and housing in proximity to jobs could become more prominent, especially as retail and industrial growth proceed.
- Workforce development initiatives—training, continuing education, partnerships—will likely matter more as businesses require skilled labor, especially in health care, manufacturing, and tech-adjacent fields.
For those looking to start, grow, or invest in business in Inver Grove Heights, understanding these patterns is key. The city’s economic health doesn’t rely on one sector—it rests on a diverse base of small businesses, institutions, and expanding firms. By tapping into local data, location advantages, and community support, entrepreneurs and workers alike can help shape IGH’s economic future.