Listen to the SMEs
The small manufacturing establishments (SMEs) in Minnesota, as well as in other states, are what make our economy go! It is the old 80:20 rule (80 percent of the benefit can often be obtained with 20 percent of the work) that applies here as well. Of course, SMEs are the 80 percent.
Having worked at 3M for most of my career, I must quickly add that large manufacturing companies are important too. That is particularly true in Minnesota, where we are fortunate to have a large number of Fortune 100 and 500 companies. What is also true is that there is an ongoing symbiotic relationship between and among SMEs and large manufacturing companies. We all have a part—business, education, government, and economic development organizations—in making this economy grow and providing even greater opportunities for everybody.
Still, it seems that SMEs go unrecognized far too often. In their 2002 book, Manufacturing Works, Fred Zimmerman and Dave Beal noted that “manufacturing just doesn’t get any respect!” Well, that sentiment is particularly true of SMEs. How can we correct that? One way is by starting to really listen to their concerns and needs.
I’m happy to report that there appears to be some listening going on these days. The Minnesota Department of Employment and Economic Development now has a manufacturing advocate on staff. The Minnesota Manufacturing Coalition has been addressing manufacturing and workforce issues. And the Minnesota State Colleges and Universities System recently announced two new Manufacturing Centers of Excellence. All of this is an excellent, innovative start, but we need to do more.
Case in point: This issue has a feature article on concerns that keep CEOs up at night (“Up All Night,” page 16). In it, business leaders from around the state mention everything from higher raw materials costs and downward pricing expectations to excessive lawsuits and litigation to the “China Price” and much more. What are we doing about any of these?
We in Minnesota have the best economic climate in the United States. If we listen and innovate together we can make considerable headway in noticing, appreciating and helping our SMEs grow and be successful. Companies, individuals, communities, and the state will all benefit!
I want to continue to explore this topic in further editorials. The importance of SMEs to the state will require us to delve into statistics; look at the past, present and future; hear from business leaders; and arrive at some conclusions on how best to support and take advantage of some of Minnesota’s greatest assets!