GAP legislation introduced at State Legislature

Bill aims to spur manufacturing job retention and job growth throughout the state

While the U.S. economy continues to struggle, Minnesota manufacturers are eager to remain employers of good manufacturing jobs in Minnesota. A proposal is making its way through the 2009 Minnesota Legislative session that will help them do just that. The Growth Acceleration Program (GAP) provides resources to spur growth of small manufacturing businesses across the state.

The legislation, authored by State Senator David Tomassoni (Chisolm) and State Representative Tim Mahoney (St. Paul) would provide a direct State investment of $3 million to assist eligible manufacturing companies with business growth initiatives. Currently, manufacturing or manufacturing related service companies with fewer than 100 employees are eligible for a matching grant; the new plan proposes a three-to-one match for those companies with fewer than 50 employees, a one-to-one match for those with 50 to 100 employees, and a one-to-three match for companies with more than 100 employees.

Since passage in 2007 of one-time GAP funding, more than 65 manufacturing enterprises throughout the state have participated in GAP and results have generally shown a $15 to $1 return on the investment.

Rite Way Mechanical Installations, Inc., a Lester Prairie manufacturer of conveyor systems for the package handling industry, recently received GAP funds to help train supervisors, implement a new software system, and synchronous flow, or business systems that improve results by increasing net profit and return on investment. Without GAP, all of these projects would have been difficult to tackle says Vice President Denise Johnson.

"Number one, GAP is an awesome program for the state's manufacturing industry," Johnson said. "We might have fumbled through these projects ourselves but, because of GAP, we were able to get the help we needed and the future benefits are going to be tremendous."  

In a recent opinion piece, Rep Tim Mahoney praised GAP.

"Minnesota companies need every advantage to compete and succeed in a global market and in this recession," Mahoney said. "The companies that will succeed in this recession are the ones that are efficient and can adapt. [GAP] can be the difference between a company being able to stay viable in the 21st century or shuttering the doors and laying off more workers."

A recent study by the Minnesota Department of Employment and Economic Development found that more than one in ten Minnesota jobs are in manufacturing. Each one of these jobs supports another 1.3 related jobs - meaning that nearly 800,000 jobs in Minnesota are associated with the manufacturing industry. That equals 29 percent of the state's workforce. These manufacturing jobs pay higher than average salaries. In 2007, a manufacturing employee in Minnesota received an average $1005 weekly wage, compared with $853 for all industries combined.

"The fastest way to get Minnesota's economy back on track is to put more Minnesotans to work," Mahoney said. "We need more programs like GAP if we are going to grow our way out of this recession and get Minnesota back on sound financial footing."

The Minnesota Council for Quality, a Minnesota non-profit that advances improvement and performance excellence within organizations, individuals, and communities, also expressed their support for the program in a recent letter to state legislators.

"GAP further advances the goals that we share with Enterprise Minnesota: providing the state's manufacturers with an economic boost to move towards operational excellence," said MN Council for Quality president Brian Lassiter. "This outstanding program has helped companies that otherwise may not have had means to make these improvements."

Johnson says that GAP is instrumental to helping small manufactures all over the state thrive, compete, and grow.

"We wouldn't be where we are today without GAP," she said. "Between GAP and Enterprise Minnesota, I feel blessed to have them on my side working with me to be a better manufacturer in greater Minnesota."

The Business Case for Going Green

When: March 18, 2009, 8:00 - 11:30 a.m.
Where: Comcast (9705 Data Park, Minnetonka, MN)
Cost: $79 or Group Rate 4 for $237



Who Should Attend?
CEOs, General Managers, CFOs, CIOs, VPs, Mid Level Managers, & Supervisors

What to Expect?
Can going green help save costs, increase profitability, and grow your organization? There is a business case for green. Learn from those on the leading edge of green about

• What it means for an organization to "go green"
• Cost savings to an organization that applies green principles techniques
• Embracing green to grow markets, products, and business

Presenters:

Eric Jackson, Chief Executive Officer, Carbonlesspromise
Jackson is the founder and CEO of Stillwater-based Carbonlesspromise. His company helps take steps to reduce a carbon footprint, making companies a very attractive member of the supply chain to large companies looking to do business with green suppliers.

Louis Jambois, President, St. Paul Port Authority
Jambois heads the St. Paul Port Authority, an organization that focuses on contributing to the East Metro's growth and prosperity by providing businesses with cleaner land on which to expand, space on the Mississippi River to receive and ship commodities efficiently, loans for real estate and equipment purchases, and job training and career development for workers.

Ron Lyrek, President, Interscapes, Inc.
Lyrek is the president of Interscapes, an architectural woodworking firm in Minneapolis. His company was recently featured in Enterprise Minnesota magazine for taking steps to go green and save costs on things like energy, fuel, and trash pickup. In everything it makes, Interscapes Inc. offers the option of Leadership in Energy and Environmental Design (LEED) - certified green products or products made out of materials that are environmentally sustainable and nonpolluting.

Register online at www.enterpriseminnesota.org or call our events line at 612.455.4239.

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