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The State of Manufacturing in Minnesota – Confidence Soars
For the past 9 years, Enterprise Minnesota has conducted surveys to gauge the state of manufacturing in Minnesota. This year’s State of Manufacturing survey revealed record optimism among small to midsize manufacturers, with 94% confident about the futures of their companies. This represents a steady gain over the years, and 57% of companies assert that they are very confident, which is 14 percentage points higher than last year.
Part of this optimism may come from the rising trend of reshoring and nearshoring, in which companies look for more local suppliers to work with. 34% of companies said this was a main driver for some of their new customers. It seems that expediting lead times and providing more value through total costs led to this shift.
Manufacturers’ views have also changed on how they see the economy. Since 2010, respondents have projected another year of a “flat economy.” This year, 58% believe an expansion is on the way. A similar number of manufacturers expect to see revenue growth and increased profitability this year.
But there are still challenges to be addressed. 59% of manufacturing survey participants consider the cost of healthcare coverage to be their top concern. This was followed by concerns surrounding government policies and regulations, and attracting skilled workers.
As for the skilled workers in highest demand in Minnesota, machine operators top the list at 38%, followed by assemblers at 20%, and welders at 9%. And for those considering entering this workforce, 46% of manufacturers in Minnesota expect wages to rise this year.
As a Minnesota manufacturer of driven tooling products, and a bronze sponsor of the State of Manufacturing survey, Von Ruden Manufacturing is always interested in seeing how other manufacturers view our economy and industry. We were thrilled to see such positive responses this year, and look forward to continued outreach.
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Tags: Challenges for Minnesota Manufacturing, Manufacturing Forecast in Minnesota, Manufacturing Optimism in MN, Minnesota Manufacturer of Driven Tooling, Minnesota State of Manufacturing Survey, MN Manufacturing Challenges, MN State of Manufacturing Survey, Reshoring in Minnesota Manufacturing, Skilled Worker Shortage in MN, State of Manufacturing MN 2017