Enterprise Minnesota has worked with state lawmakers for more than 15 years to fund an effort to help small- and medium-sized manufacturers expand and improve their operations. Previously called the “Growth Acceleration Program” (GAP), the legislation will be re-introduced in 2025 as “Made in Minnesota,” a name that reflects the manufacturing-focus of the program.
“Made in Minnesota” will help manufacturers with 250 or fewer full-time employees access funds that cover up to 50% of the cost of services provided through Enterprise Minnesota. Companies have used the funding to implement quality initiatives, ISO certification, automation, expanded marketing and improved cybersecurity programs.
Eligible manufacturers must be located in Minnesota, operate as independent profit centers, have a business plan for improvements, and demonstrate an economic need for funding. Resources go toward business improvement services that increase job creation, job retention, and business growth, and all companies awarded funding match at least $1 for every $1 spent through the program.
Independent auditors have shown that the program has generated an average $30-to-$1 return on investment. Manufacturers have created 12,556 jobs, generated $1.4 billion in additional sales, saved $206 million in costs, and invested $583 million in plant, equipment, technology, and skills development.
One in seven jobs in our state is directly manufacturing related, and each of these jobs creates two additional jobs. That means fully one-third of Minnesota jobs are dependent on the manufacturing sector.
The funding provided through “Made in Minnesota” couldn’t come at a better time. Manufacturers who participated in this year’s State of Manufacturing® survey expressed uncertainty about the future at a level not seen in the history of the poll. Concerns about a potential economic slowdown, costly regulation, and the inability to attract quality employees loom over Minnesota manufacturers as they enter 2025. As manufacturers prepare to face these challenges, ensuring access to cost-effective services that spur growth and improved efficiency is vital.
One encouraging sign amid this landscape is a growing understanding among legislators about the importance of manufacturing to the vitality of communities across Minnesota. We’ve made great strides in sharing the value of manufacturing with policymakers over the years. Since its beginning, many of our clients have testified at the legislature in support of this program. Manufacturing leaders have shared specific examples of the value of funding for their companies and the positive impact on their communities when they thrive.
We have also benefited from more than 500 manufacturer-hosted tours of their facilities for state lawmakers, members of Congress and their staff, local mayors, and economic development leaders. Tim Penny, former state legislator and member of Congress and current president of the Southern Minnesota Initiative Foundation, says, “It’s hugely important just visiting these plants and seeing what’s being produced. You drive by, but you don’t realize what’s going on inside and how many local people are working there. I don’t think there’s anything better than bringing legislators right down on the plant floor.”
These legislative outreach efforts have led to a growing understanding of the critical nature of manufacturing across the state. They are also a key reason this program has enjoyed strong bipartisan support over the years.
We will continue to build on the relationships we have forged with legislators as we return to the Capitol in January to seek funding for “Made in Minnesota.” Through support for this program, legislators can signal their understanding of how essential manufacturing is to the economy as they boost growth in their own communities.
Return to the Winter 2024 issue of Enterprise Minnesota® magazine.
