Despite all the change and uncertainty they’ve faced — COVID, workforce shortages, tariffs and supply chain disruptions, and now the rollout of Minnesota’s new paid family and medical leave law — Minnesota manufacturers keep showing up, solving problems, and finding ways to succeed.
Still, it’s easy to get distracted by the issues outside our control. Headlines about tariffs, taxes, regulations, and government policies create a climate of profound uncertainty. The frustration is understandable. But the manufacturers who thrive are the ones who focus on what they can control.
You can’t adjust tariff rates, lower the cost of inputs, or predict which employees will take extended leave. But you can invest in process improvement, develop stronger relationships with customers and suppliers, cross train your people, and build a culture that helps employees enjoy their work and stay engaged. These are the levers that make a business more efficient and more resilient.
When it comes to tariff-driven supply chain challenges, look at what you can do within your organization to minimize effects. Could you improve relationships with suppliers through better communication? Could you negotiate with customers to share the burden of cost increases? Could you reduce overall costs by cutting out manufacturing steps that are non-value add?
Even though the labor market has cooled since the pandemic, many companies still struggle to fill positions, particularly those that demand specialized training. Skilled employees continue to age, and their knowledge walks out the door on retirement day unless there’s a plan in place. Smart manufacturers keep recruiting, even when they don’t have immediate openings, to ensure a smooth transition as parts of their workforce retire. They also think creatively about solutions, like fractional roles to fill gaps in areas such as finance, quality, or human resources.
Minnesota’s new paid leave policies take effect on Jan. 1, 2026, and some companies still don’t have a solid plan to manage extended absences. By cross-training employees, companies can minimize operational disruptions. A deeper bench also helps ensure a smooth succession as workers retire.
Finally, don’t underestimate the power of culture. When employees take pride in their work and find the workplace enjoyable and flexible, manufacturers build loyalty, enjoy the benefits of long-term and engaged employees, and attract new talent more easily.
The landscape will keep shifting. Tariffs will vary, supply chain challenges will ebb and flow, and government policies will change. But external factors have always been there, and they’ll always be there. What matters is how you respond.
Manufacturers I talk with stay positive because they focus their energy inside their walls, where it matters most. When you cultivate relationships with suppliers and customers, improve processes and invest in people, you’ll find that you control more than you think.
Return to the Winter 2025 issue of Enterprise Minnesota® magazine.
