October 25, 2001

Businesses In North Dakota Continue to Get Larger

Businesses are continuing to get larger in North Dakota, according to the recent Population Bulletin released from the North Dakota State Data Center at North Dakota State University.

For the past 10 years, the number of business establishments in the state has risen 0.8 percent per year on average - the number of employees for these businesses has risen nearly 3.0 percent per year on average. Put another way: in 1990 there were 10.4 employees per business compared with 12.3 in 1999. The number of very large establishments, those that employ more than 1,000 employees, doubled since 1990 jumping from four to eight. Similarly, the number of establishments that employ between 250 and 1,000 employees increased from 54 in 1990 to 70 in 1999.

"The growth in larger businesses in North Dakota reflects the success in the state’s largest cities in attracting firms. A key area of economic development that needs more attention is the rural areas of our state. Hopefully partnerships between urban and rural areas can spawn continued expansion of businesses into rural North Dakota," said Richard Rathge, director of the North Dakota State Data Center.

The number of business establishments in North Dakota increased slightly between 1998 and 1999, from 20,288 establishments in 1998 to 20,380 in 1999. Employees in North Dakota businesses increased from 249,476 in 1998 to 250,292 in 1999, an increase of 816 employees or 0.3 percent. Annual payroll for businesses in North Dakota rose from $5.5 billion in 1998 to $5.8 billion in 1999 an increase of $255 million or 4.6 percent.

In 1999, service and retail trade establishments comprised more than half of all businesses in North Dakota and nearly two-thirds of all employees.

Nevada, Utah, and Massachusetts reported the largest percentage gains in businesses between 1998 and 1999 (5.1 percent, 3.4 percent, and 3.2 percent). Two states, West Virginia and Hawaii, and the District of Columbia reported losses in businesses between 1998 and 1999.

###

Source: Richard Rathge, (701) 231-8621, richard.rathge@ndsu.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu

Click here for a GIF version of this graphic. (36KB b&w text, map and graph)

Click here for a GIF version of this graphic. (54KB b&w text, map and graph)

Click here for a pdf version of both pages of this graphic. 
(422KB b&w text, map and table)