Oh What a Night

The latest State of Manufacturing® survey told us that members of Minnesota’s manufacturing community were feeling a bit down. The usual optimism expressed by our respondents – even during tough times – was notably absent from the most recent survey results. Manufacturers were feeling a bit roughed up by the legislature given the costly paid family and medical leave provisions enacted the year before.

So, we threw a party! Our goals for the “Celebration of Manufacturing” were to lift spirits and shed light on the value of manufacturing to Minnesota’s economy. We were two for two.

The more than 45 manufacturers who attended the event enjoyed excellent food and drink and such robust networking we barely got them to stop visiting to hear CEO Bob Kill’s remarks. When Bob did start talking, the audience was glued to the screen (recovering from COVID, he joined us by video). He shared his insights on why manufacturing matters to Minnesota, and how companies can bounce back from this latest legislative hit.

Bob shared that everyone at Enterprise Minnesota wakes up in the morning energized by our mission to help manufacturing enterprises grow profitably. A second part of our mission, he added, is to bring visibility and a strong public voice for manufacturers.

• There are more than 8,600 manufacturers in Minnesota, about 50% in the metro area and 50% in the non-metro area.
• 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 are earning more than $72,000 per year.
• Employees of manufacturing companies earned $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.

Bob also pointed out that wages are likely to grow further as companies embrace advanced manufacturing, which demands the higher-level skills our technical colleges are helping students master. The enhanced productivity that comes from employee development will continue to boost wages, making not just jobs in manufacturing, but careers in manufacturing, more appealing to the brightest young workers.

It’s noteworthy that of the 8,600+ manufacturers Bob mentioned, more than 5,000 have fewer than 10 employees. Some might discount those very small manufacturers, but Enterprise Minnesota doesn’t – for two reasons. We have clients with just eight or nine employees that make critical components for another product, often items the rest of us use every day. In the complex supply chain, these companies are essential.

Another reason these companies are critical is their potential for growth. Many work with our business growth consultants to improve operations, develop their employees and expand into new markets. Many small companies took the same approach during the Great Recession of 2008-09 and the pandemic years, seizing opportunities for improvement and expansion. They now employ dozens of workers and operate in markets across the country and even the globe.

While we share manufacturers’ concerns about  recent legislative actions and a potential economic slowdown, we remain confident in manufacturing’s future. One reason is the support manufacturing enjoys in Minnesota. At our event, elected representatives and staff, community and technical college administrators, and local economic development officials joined us to show their support. These groups are eager to work together, with manufacturers, and with us to continue strengthening Minnesota manufacturing.

We will keep working with our clients to help them grow profitably as we continue to advocate for Minnesota manufacturing. The enthusiasm on display at the Celebration of Manufacturing gives all of us hope.

Industry News

Manufacturers express ‘fear of recession’ in statewide survey
January 17, Duluth News Tribune

Winona-based Fastenal’s year-end results couldn’t overcome slow manufacturing, industrial activity
January 17, Minnesota Star Tribune

South Central College awarded grant to expand mechatronics curriculum
January 16, Mankato Free Press

Manufacturers have concerns about business climate, inflation heading into 2025
January 15, WDIO.com

Former Herberger’s space at Willmar mall purchased by cabinet manufacturer
January 15, WillmarRadio.com

St. Cloud Window announces $3M expansion, 19 new jobs in Sauk Rapids facility
January 12, St. Cloud Times