Survey: Minnesota Manufacturers Offer Worst Outlook Since Great Recession
Minnesota manufacturers say their growth outlook is “radically different” than what they’ve seen in many years, according to the 2024 State of Manufacturing survey released Thursday at an event in Brooklyn Park.
The survey showed the least amount of optimism from manufacturers since the Great Recession from late 2007 to mid-2009.
Manufacturers pointed to inflation and rising health care costs as major concerns, the survey revealed. They also blamed the state’s new Paid Leave law for causing a slowdown in hiring and stunting growth.
“Historically, we would have exempted the very small companies. And we didn’t exempt those,” said Bob Kill, president and CEO of Enterprise Minnesota, an organization that advocates on behalf of manufacturers. “People that our legislature was hoping to help the most, they hurt the most.”
Kill said 60 percent of manufacturers in the state have 10 or fewer employees. The legislation, however, treats those companies the same as large multinational corporations, he said.
The Paid Leave law takes effect in 2026. It requires employers to provide paid medical and family leave for up to 20 weeks. The program will be funded through a new payroll tax split between the employer and workers.
The results of the manufacturing survey can be found here.
