The Power of Minnesota Manufacturing

Anyone who looks at the data knows that manufacturing is the engine of Minnesota’s economy. Recognizing its importance—and nurturing its growth—is critical to the state’s future prosperity.

For 17 years, Enterprise Minnesota has conducted the State of Manufacturing® (SOM) survey, a comprehensive assessment of manufacturers across the state. This research offers an unfiltered view into what manufacturing leaders are thinking: how they’re navigating the economy, managing workforce challenges, responding to supply chain and tariff pressures, and adapting to changes in public policy.

We’ll release complete results from the 2025 survey at our kickoff event on November 5. Until then, it’s enough to say that trends from recent years show a growing unease among manufacturers. Many are concerned about Minnesota’s challenging business climate, particularly as new mandates take effect.

As we await the release of this year’s results, it’s worth pausing to recognize the critical role manufacturing plays in our economy. Minnesota is home to 7,268 manufacturers, nearly 60% of which employ 10 or fewer workers and 6,161 companies employ 50 or fewer. The burden of increased government regulations hit these small companies particularly hard.

The industry is almost evenly split between metro (49%) and non-metro (51%) locations, ensuring that manufacturing remains a cornerstone of both urban and rural economies. As Fred Zimmerman, a professor emeritus at St. Thomas University, pointed out in the last issue of Enterprise Minnesota magazine, having a strong manufacturing presence is the key to economic vibrancy for communities across Greater Minnesota.

Manufacturers account for 11% of Minnesota jobs and 14% of wages—with the average worker earning $77,000 annually. In 2023, manufacturers exported $22.5 billion in goods and contributed $57.2 billion to the state’s economy. Every dollar spent in manufacturing adds $2.69 to the broader economy. Those numbers speak for themselves: Minnesota’s economic health depends on manufacturing success.

Looking ahead, the demand for skilled talent will only grow. As manufacturers embrace automation and advanced technology, they are partnering more closely than ever with the state’s community and technical colleges to develop a pipeline of workers trained for modern production environments.

At Enterprise Minnesota, we see firsthand how small manufacturers thrive when they invest in people, process improvement, and new markets. Many of these firms grow from just a handful of employees to 50 or more, creating opportunities, prosperity, and innovation in every corner of the state.

Manufacturing doesn’t just power our economy; it defines it. As we prepare to release the 2025 State of Manufacturing® survey results, we’ll continue to highlight the strength, resilience, and ingenuity of Minnesota’s manufacturers who make that power possible.

Register to attend a 2025 State of Manufacturing® survey release event.

Industry News

Fire causes major damage to manufacturing business in Lowry, MN over the weekend
October 20, Voice of Alexandria

Manufacturing Month: From shop class to skilled trade: Zimmerman grad finds his fit in manufacturing
October 19, Elk River Star News

Worthington-based Cambridge Technologies breaks ground on manufacturing facility addition
October 16, Worthington Globe

One year after acquisition, GDB details revival strategy for Minnesota film recycling plant
October 17, Packaging Dive