Dread: Manufacturers express unprecedented anxiety about the economy

The State of Manufacturing® is the annual survey of Minnesota manufacturing executives that reveals the latest trends in key business areas including growth, workforce, supply chain, economic confidence, and more. Each year, over 535 manufacturing executives are surveyed, representing a broad mix of manufacturers by region, employee count and annual revenue.

This year, our survey shows a growing percentage of manufacturers who believe that the Minnesota business climate is worse than before. In 2024, a record-high 56% of respondents note that it’s worse, up from 50% last year and 15% five years ago. This year, 30% believe the business climate has held steady and 12% think it’s better — a decline from 2021 when 20% thought it was better.

Manufacturers express unprecedented anxiety about the economy amid the burden of new legislative mandates.

View complete PDF slide deck of 2024 State of Manufacturing® data here. 

Pollster’s Analysis

Read the complete pollster’s analysis of this year’s findings.

Each year, Enterprise Minnesota reveals the findings of our results in Minneapolis, then holds regional events around the state to take the conversation on the road to local communities.

Click here to visit our SOM events page to see all upcoming events.

 

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View the complete PDF of 2024 focus group feedback here. 

Heard in our focus groups

For me, it’s what our legislature, specifically state, is going to dream up next — new regulations or requirements that we have to do. Right now, it’s obviously paid family and medical leave. I’m just very concerned about the impact that’s going to have on the workforce. We already have people figuring out how to get out of working, and now they’re going to be able to get out of working and be paid at least some percentage of their normal salary to do it.

Our biggest issue now is what should we be paying in people. We’ve been finding good employees, but the way inflation has been, it’s hard. We had operators who are lower paid. Well, now they can go to Walmart and get that. It’s trying to juggle that and still keep your good operators. So, that’s probably our biggest challenge right now.

Planning long-term is more difficult. That’s probably our biggest heartburn. I think part of it for us is industry change and employee changes. And regulatory issues have been a big, big heartburn for us with our business in plastics. So yeah, it’s planning. That’s going to be the most difficult. We can get numbers from customers, we can do a budget for an entire year, and we were dangerously close in the past. That’s not so true the last couple of years.

With the skilled worker shortage, and the fact that it’s really difficult to onboard a lot of those positions, we have really been focusing on retention more than anything these days.

Requests for interview

Bob Kill, president & CEO of Enterprise Minnesota is available for comment and interview regarding the State of Manufacturing® survey. If you would like to schedule an interview, please contact Robert Lodge ([email protected]).

The State of Manufacturing survey is made possible through the support of our generous partners. If you are interested in being a part of the State of Manufacturing survey, please contact us.

The State of Manufacturing survey is conducted by Meeting Street Insights and is underwritten by Enterprise Minnesota.

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Research & Data

Since 2008, the State of Manufacturing® survey has been providing industry-leading insight and analysis to business leaders, public policy makers, educators, and the media.

Find complete survey data, including focus transcripts, cross tabulated data, and legacy resources on our Research page. 

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