Just in Time

The Weekly Report – January 27, 2025
“Made in Minnesota,” an updated version of Minnesota’s wildly successful Growth Acceleration Program (GAP), will help manufacturers continue to drive the state’s economy, especially in challenging times.

Small manufacturers who want to stay competitive amid the increasing sophistication of competitive markets have turned to Enterprise Minnesota over the years for counsel on everything from ISO certification and continuous improvement to marketing strategy and talent development. Many have been able to afford these consulting services because the Growth Acceleration Program (GAP) has offered matching grants for manufacturers to improve their business practices.

The results have been impressive. Since 2008, the state investment in GAP has helped nearly 500 Minnesota manufacturers create and retain more than 12,000 jobs and increase or retain company sales of over $1.46 billion. We’re asking the Minnesota Legislature to consider a similar program, called Made in Minnesota, during the 2025 session. In the upcoming issue of Enterprise Minnesota® magazine, writer Mary Lahr Schier profiles the program and the many manufacturers it has helped.

For companies like the Tongue and Groove Store, GAP funding was crucial. Kyle Anderson and his wife Ann started the Duluth-based manufacturer and retailer of kiln dried wood floors, walls, ceilings, and trim in 2009, just as the great recession hit. The company now has 20 employees working in 37,000 feet of manufacturing space, specializing in custom products that need to be manufactured efficiently. “We have to have a process that’s one-size fits all, even though the products are so variable,” Kyle Anderson says.

The Andersons improved their processes by turning to Enterprise Minnesota for help with strategic planning and value-stream mapping, a lean manufacturing system for analyzing material and information flows. Our expert assistance helped guide decisions on whether to expand the footprint of the manufacturing operation, ways to improve workflow, as well as how materials, defects and reworked items were handled to reduce waste.

With funding help from GAP, our Greg Hunsaker, discovered that the Tongue and Groove Store’s processes were not being done the same way by all workers, which was increasing waste.

Hunsaker recommended standards for every part of its processes, showing how to do each step, who should be doing it and how long it should take. They also developed programs to train and cross-train employees in key areas, such as running the rip saw or staining wood.

The improvements have paid off as the company has faced inflationary pressures and a downturn in the construction business over the past few years. Unlike most suppliers to builders and contractors, the Tongue and Groove Store has been able to maintain its revenue and profitability without huge price increases. “A lot of people we know have seen down numbers,” he says. “We’re up—not in every stream but in enough.”

Enterprise Minnesota’s work with manufacturers to improve business operations drives State Rep. Jon Koznick’s (R-Lakeville) strong support for the Made in Minnesota program. Koznick’s district is home to the Air-Lakes Industrial Park, one of the largest industrial parks in the state. “I’ve toured a lot of different businesses and recognize the number of jobs that small and mid-sized manufacturers bring to Minnesota,” Koznick says, “and these are good jobs that help people provide for their families and drive local economies across the state.”

Koznick’s belief in the power of manufacturing led him to sign on as chief author of a legislative proposal to fund the Made in Minnesota program during the 2026-27 biennium. As proposed, the bill would provide $4 million over two years to manufacturers with 250 employees or fewer to reduce the cost of vital business-building services provided by Enterprise Minnesota.

Despite its positive impact on the state’s economy, the manufacturing sector is struggling due to inflation, excessive regulation, new mandates, and downturns in some sectors of the economy. In the past year, the state has lost nearly 4,198 manufacturing jobs.

Made in Minnesota would revive a proven approach to helping strengthen a key driver of the state’s economy. Because it is jointly funded by the state and the manufacturers who use Enterprise Minnesota’s services and administered by an organization with a long record of success, it is able to offer a return on investment in terms of economic growth, job creation and retention, and investing in communities in all regions of Minnesota.

To read more about the program and the companies it has helped, check out the upcoming feature in Enterprise Minnesota® magazine, scheduled for publication in mid-February.

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