The 2025 Minnesota Legislature authorized $1 million to help small manufacturing companies remain viable amid the roiling economy. The grant, split evenly over two years, will primarily fund the “Made in Minnesota” program, an initiative that will help manufacturers take advantage of cutting-edge strategies from Enterprise Minnesota. These include enhancing productivity, deploying technology, improving management, growing talent, and developing effective business strategies.
“Made in Minnesota” received bipartisan support. Lawmakers from both rural and urban districts recognized the critical importance local manufacturers contribute to their communities, according to Bob Kill, president and CEO of Enterprise Minnesota. “We had strong advocates in both the House and the Senate who helped push this through, even in a tight budget year,” Kill says.
“Made in Minnesota is a hand up, not a handout,” Kill adds. “These resources help companies invest in themselves — whether that’s getting certified, providing skills development for workers, or implementing new technology.” All grant recipients will have “skin” in the game. For every $1 of state investment, manufacturers must also invest $1.
The funding comes at a time when many Minnesota manufacturers are still navigating pressures of a post-pandemic economy, ongoing workforce shortages, and other uncertainties around world trade. Despite those challenges, manufacturing remains a crucial part of the state’s economy, responsible for 11% of Minnesota jobs and 14% of wages.
Kill says that 84% of Minnesota’s 8,600 manufacturers employ fewer than 50 people, and a significant portion have fewer than 10. These small shops, often located in rural communities, face steep hurdles when trying to modernize or expand. That’s where Enterprise Minnesota’s services come in. Since 2008, Enterprise Minnesota has applied state funding to help Minnesota manufacturers create or retain more than 12,000 jobs and increase or retain company sales of $1.46 billion.
Enterprise Minnesota has historically deployed such funds to help manufacturers reduce the financial burden of key services. For example, a nine-person machine shop seeking ISO 13485 certification — a requirement for entering the medical device market — might pay $50,000 out-of-pocket. With this grant, that cost could be reduced by 20%.
“For a small company trying to break into a new market — like medical devices — ISO certification might be the barrier between growth and stagnation. Made in Minnesota resources can make breaking into new markets possible.”
“These kinds of investments can lead to expanded markets, new jobs, and stronger communities,” Kill adds. “And once a company earns that certification, we know companies will use it to grow.”
Kill also points out the ripple effect manufacturing has on other industries. For every dollar spent in manufacturing, about $2.70 is generated in economic activity across related sectors, such as trucking, accounting, and logistics.
“It’s not just about the factory floor,” Kill says. “Manufacturing creates good-paying jobs and supports an entire ecosystem of businesses.”
Kill says the momentum in the manufacturing sector has also been buoyed by increased enrollment at technical colleges, as more people begin to recognize manufacturing as a viable and rewarding career path.
“The perception of manufacturing is changing,” Kill says. “It’s high-tech. It’s innovative. And it’s essential.”
For now, the focus is on using the $1 million wisely, ensuring that the funding reaches as many small businesses as possible.
Return to the Summer 2025 issue of Enterprise Minnesota® magazine.
