Sneak Peek!

We’ll announce the results of the latest State of Manufacturing® survey at our survey release event on November 5. I can, however, share some of the key concerns aired by manufacturing executives at our regional focus groups. They provided deep insight into the issues raised in the quantitative survey.

While manufacturers remain generally upbeat about the future, they do have concerns, particularly about tariffs, Minnesota’s business climate–driven largely by the new paid leave requirements, and the persistent struggle to find and retain qualified employees.

Here’s a small sample of some of the comments we heard in September:

TARIFFS:

• It definitely makes us hesitate to make any big CapEx decisions. We’re looking more internally at cutting costs wherever we can because we have seen tariffs affecting a lot of things.
• We’re in an administration where there are a whole lot of shocks that are happening on a pretty regular basis. I think that some of the tariffs go, and then he gets them drawn back, and he puts them on and then he pulls them back. It’s disruptive, and of course business doesn’t like disruptive.

MINNESOTA’S BUSINESS CLIMATE:

• The cost of doing business in the state of Minnesota is just layer upon layer upon layer, and we’re becoming less and less competitive at attracting companies like ours through the state.
• I think that all the societal ills are being put on the back of the employer. We’re just getting tired.
• What’s the next thing that’s going to beat us down? We’ll get over [paid leave] and then there’s going to be something else we’re going to talk about next year

ATTRACTING AND RETAINING QUALIFIED EMPLOYEES:

• The biggest issue for me is finding good quality employees. People who will show up every day and do their job and won’t get injured half an hour after they start their work, which happens. In most of most of my plants, I’ll tell you, it’s so hard to find good employees that will show up every day that aren’t crazy, that aren’t alcoholics, that aren’t on some kind of prescription drug or worse.
• I’m losing a lot of people to retirement. We have so many long-tenured employees; they’ve been there for 20 or 30 years. I just counted yesterday–of 165, I have 32 employees over 64.
• People don’t show up every day that want to grow, that want to learn, that want to be contributing employees rather than somebody that just shows up for a paycheck every day. And part of that’s on us to create that environment, which I think we do, but it’s still very hard.

You will find this year’s survey to be quite compelling.

Please plan to join us for the November 5 Statewide State of Manufacturing® event at the Minneapolis Marriott Northwest from 3–6:30 p.m. We’ll release this year’s data, celebrate Minnesota manufacturing, and hear from Willy Shih, a Professor of Management Practice in Business Administration at Harvard Business School and leading expert on supply chain management and tariffs.

Use this link to register for the Nov 5 event.

Industry News

Shifting beyond silos: Hanson Companies stands the test of time
October 10, The Land Online

Minnesota contract manufacturer Protolabs’ new CEO sees opportunity in reshoring from tariffs
October 9, Minnesota Start Tribune

Two Minnesota device manufacturers combine to make Forj Medical
October 9, Minnesota Star Tribune

Military vehicle picked as this year’s ‘coolest thing made in Minnesota’
October 8, Bring Me The News

Manufacturer Pinnacle Climate Technologies celebrates decade in business
October 8, St. Cloud Times

3M may sell off billions in assets from industrials business
October 6, MSP Business Journal

Nilfisk To Close Brooklyn Park Plant, Cut 105 Jobs
September 29, CCX Media