POLL: A Record Number of Manufacturers Are Down on Minnesota's Business Climate

The 2024 State of Manufacturing^® survey reveals a low level of confidence fueled by continuing fear of inflation and the burden of recent legislative actions.

MINNEAPOLIS, Nov. 14, 2024 /PRNewswire/ -- Enterprise Minnesota's annual State of Manufacturing® survey this year reveals that manufacturing executives believe that Minnesota's business climate is worse than any time in the 16-year history of the survey. They continue to fear the economy and a majority are concerned about recent state legislation's negative impact on their businesses.

"The last time we saw numbers like this, the economy was falling off a cliff. This is the highest percentage of people who feel that the business climate of Minnesota is worse since the Great Recession in 2008," says Bob Kill, president and CEO of Enterprise Minnesota.

View complete survey results: https://www.enterpriseminnesota.org/state-of-manufacturing/.

Pollster Rob Autry, founder of Meeting Street Insights, conducted the survey for the 16^th year in a row. The results will be formally released at an event from 3-6:30 p.m. on Thursday, November 14^th at the Minneapolis Marriott Northwest. When asked whether 2024 will be a year of economic expansion, a flat economy, or a recession, 41% of manufacturers believe there will be a recession — an eight-point increase from last year.

Also weighing on manufacturers' minds are recent legislative changes that started hitting their bottom lines this year, including earned sick and safe time policies. In January 2026, Minnesota's new paid family and medical leave law will go into effect. Manufacturers are anticipating negative financial impacts from these new programs, with 68% expecting a major or minor effect from the payroll tax required to fund the paid family and medical leave program.

In addition, 67% anticipate major or minor effects from the earned sick and safe time requirements. Another big sticking point: 65% see major or minor impacts on small businesses needing to contribute to employees' paid leave at the same rate as larger corporations. Overall, these legislative changes make Minnesota a less attractive place to do business, according to 65% of respondents. Of that group, 45% believe it is much less attractive.

Inflation and rising health care costs have put immense pressure on manufacturers. When asked about their biggest concerns, overall inflation came in first at 53%, up from 38% last year. The increasing cost of health care ranked second, jumping eight points from 2023 to land at 51%. Attracting and retaining a qualified workforce was third at 41%, a one-year decline from 44% last year.

Manufacturers and supporters of the industry are invited to attend the November 14 event free of charge. Register at www.enterpriseminnesota.org/state-of-manufacturing/.

Enterprise Minnesota President & CEO Bob Kill is available for interviews. Please contact Robert Lodge to schedule an interview: [email protected], 612-455-4213.

Enterprise Minnesota is a business consulting organization that works exclusively with manufacturers in Minnesota to help them compete and grow profitably. It is the official Manufacturing Extension Partnership (MEP) center for the state of Minnesota. www.enterpriseminnesota.org

Contact:
Robert Lodge, Director of Digital Marketing & Media Relations,
[email protected]
612-455-4213

SOURCE Enterprise Minnesota