The Minnesota Legislature reconvened in January after a disastrous 2023-2024 session during which members enacted legislation that profoundly and negatively impacted Minnesota companies. These new laws imposed onerous family and medical leave requirements on every employer, imposing financial and administrative burdens that many will struggle to meet, especially the small ones.
Not coincidentally, Enterprise Minnesota’s latest State of Manufacturing® (SOM) survey reveals a level of concern and pessimism among manufacturers that we haven’t seen in past polls, including the ones taken during the 2008-09 recession and the global pandemic. The usual optimism expressed by our respondents was notably absent from the latest survey.
As the next session of the legislature begins, and with the SOM survey results in mind, now is a great time to remind Minnesotans of the critical role manufacturers play in the success of our economy.
• There are more than 8,600 manufacturers in Minnesota, with about 50% in the metro area and 50% in Greater Minnesota.
• Manufacturers exported $22.5 billion in goods and contributed $57.2 billion to the state’s economy in 2023.
• For every dollar spent in manufacturing, $2.69 is added to the economy.
• Manufacturers account for 11% of the state’s jobs but drive 14% of the wages. At an average weekly wage of $1,387, manufacturing employees earn more than $72,000 per year, totaling $32.4 billion in 2023.
Manufacturing accounts for 325,000 direct jobs and nearly two times that in indirect jobs, for a total of 1,045,814 jobs attributable to manufacturing. The ripple effect is significant because manufacturers rely on other well-paid employees for support in other areas, including packaging and distribution, at a level service industries do not.
Wages are certain to accelerate as companies need higher-skilled employees to operate more complex machinery with the embrace of advanced manufacturing.
Minnesota’s manufacturers and our network of community and technical colleges enjoy an increasingly symbiotic relationship.
When smaller companies invest in employee development, improved operations, and outreach to new markets, they often grow into thriving firms with 50-75 employees. Those investments are tough to make if they are struggling with the legislature’s unfunded mandates concerning leave requirements.
I hope lawmakers keep in mind we need manufacturers to thrive to employ Minnesotans and drive economic growth in the coming years. The costs and administrative burdens they face because of new leave laws put them at risk for cutting jobs, or worse, leaving the state.
Return to the Spring 2025 issue of Enterprise Minnesota® magazine.
