Minnesota Manufacturers Buoyed by New State Investment for Growth Acceleration Program

Enterprise Minnesota will administer the grant to sustain jobs and spur growth in the state's small to medium size manufacturers

Enterprise Minnesota's highly popular Growth Acceleration Program (GAP) received a significant shot in the arm this week when Governor Tim Pawlenty signed into law the legislature's appropriation of $1 million for the program.
 
GAP is a matching grant that enables small manufacturers to access business improvement services.  First funded in 2007 with one-time funding of $750,000, GAP has since helped more than 80 Minnesota manufacturers realize a $15 return for every $1 spent by GAP. Some companies realized as much as a $40 to $1 return on GAP.

"Clearly this is a program that works," said Bob Kill, president & CEO of Enterprise Minnesota. "The outcome of this action will be job security at a time when Minnesotans need it. GAP is a tremendous resource for the Minnesota communities and employees that depend on the economic security that these manufacturers provide."
 
"At a time when the state has limited resources, we try to focus on programs that can demonstrate effects that create jobs," said Minnesota State Senator Kathy Saltzman (Woodbury). "GAP is an excellent example of what seems like a small investment producing huge results."

The newly funded GAP program includes a three-to-one match for 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 but fewer than 250 employees.

"The only way we're going to get out of this slide is through job growth. Manufacturing is sometimes a forgotten sector, but we know that the small businesses are the ones that can grow jobs," Saltzman said.
 
The bill was authored by State Senator David Tomassoni (Chisholm) and State Representative Tim Mahoney (St. Paul), and allocates one-time funding for GAP, to be administered by Enterprise Minnesota.
 
"Minnesota companies need every advantage to compete and succeed in a global market and in this recession," Mahoney said. "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."

"The idea behind the Growth Acceleration Program is to aid small businesses' needs," Tomassoni said. "Oftentimes, they either don't have the resources, knowledge, or time - or the combination of all three - to get up to speed on the latest techniques that might help their business grow and prosper and maybe even create new jobs."
 
In the fall of 2008 and into winter 2009, Enterprise Minnesota hosted legislators on tours of nearly 20 manufacturing companies that used GAP funding. From East Grand Forks to Albert Lea, on the Iron Range or in Minneapolis, legislators saw the value of GAP to companies in their district.
 
"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 program works as follows:

1.    GAP helps qualified companies including manufacturing, and related industries that employ 250 full-time employees or fewer. Qualified companies include:

• A company with fewer than 50 employees must match $1 for every three dollars of GAP investment.
• A company with 50 to 100 employees must match $1 for every $1 of GAP investment.
• A company with 101 to 250 employees must match three dollars for every one dollar of GAP investment.

2.    Award funds are not to exceed 75 percent of the total cost of a planned project, and may not exceed $25,000 during any one year period. Any individual company may not receive more than $50,000 from the GAP funds a one year period.

3.    Companies can use these funds to implement their business improvement needs, leading to job retention, job creation and job growth potential.

4.    Enterprise Minnesota and/or its authorized agents will execute all service work on behalf of GAP funded companies.

Enterprise Minnesota, the state's Manufacturing Extension Partnership (MEP) affiliate, works with small and medium size manufacturing companies to help them compete and thrive. Its services help clients improve their efficiencies, contain their costs, and achieve real growth in sales revenue and earnings.

"I want to thank Enterprise Minnesota. They helped a company greatly in my district, and we're hoping that it's going to result in bringing jobs back plus some more," said Minnesota State Senator Amy Koch (Buffalo).

Boost Work Performance Through New Safety Solutions

When: June 24, 2009, 8:00am - 11:00am
Where: RJF Agencies (map)
Cost: Early Bird Rate $79 (before June 10), Group Rate 4 for $237, or Regular $110
Continental breakfast provided.



Who should attend:
CEOs, General Managers, CFOs, CIOs, VPs, Mid Level Managers, & Supervisors

What to expect:
Discover how best practices for safety affect your bottom line and deliver Return on Investment (ROI). Accidents cause injuries, damages to equipment, scrap, lost time, and decreased morale. Hear from industry experts about how to engage employees in identifying and eliminating potential hazards, and analyzing the chain of events that lead to accidents and hazardous situations.

Presenters:

Register online today!

For questions or more information email events@enterpriseminnesota.org or call our events line at 612.455.4239.