GROW MINNESOTA! Manufacturing Sector Report

WHAT IS GROW MINNESOTA!? Business retention Business assistance Statewide: 76 local chamber partners 13 years old

GROW MN! ,673 one-on-one business retention visits – 3,076 in Metro, 6,597 in Greater MN 1,675 businesses assisted 18,163 jobs protected* We know Minnesota’s economy! * Jobs since 2009

GROW MN! * 925 one-on-one business retention visits 305 businesses assisted 516 jobs protected We know Minnesota’s economy! *10/15/14 – 10/31/15

INDUSTRIES VISITED *

GROW MN! MANUFACTURING SECTOR one-on-one business retention visits – 93 in Metro, 181 in Greater MN 100 manufacturing businesses assisted *10/15/14 – 10/31/15

UNDERSTANDING OUR DATA About Grow Minnesota Data… Not random sample More Gr MN businesses than Twin Cities Some industries over represented, e.g. mfg More small & mid-sized than large businesses No weighting for business size, location, industry, etc.

2015 MANUFACTURING SECTOR: KEY FINDINGS Fueling growth… High rate of innovation Export at higher rate than other sectors Adding jobs at higher rate than other sectors Slowing growth… 82% report difficulty hiring; 22% in 2010 Reliance on international markets has had short-term, negative impact

MANUFACTURERS VISITED BY EMPLOYEE SIZE

% OF MANUFACTURERS THAT OWN vs LEASE Property Characteristics (N = 229)

BUSINESSES CREATING NEW PRODUCTS, LAST YEAR Innovation: Up (N = 269)

MANUFACTURERS THAT INNOVATE OUTPERFORM THOSE THAT DON’T Innovation: Linked with Increased Sales % of businesses with increased sales last year

% OF MANUFACTURING BUSINESSES THAT EXPORT *29 % of manufacturers report international as their fastest growing market Exports: Manufacturing (N =213)

% OF ALL MN BUSINESSES THAT EXPORT Exports: All Industries * 11% of all MN businesses visited report international as their fastest growing market (N = 843)

FASTEST GROWING MARKETS Exports: Manufacturers Rely on International Markets (N = 209)

% OF MANUFACTURERS WITH PLANS: New Investment Plans: Up (N = 291)(N = 210)(N = 261)

WHAT TYPES OF NEW INVESMENTS? New Investments

WHERE WILL NEW INVESTMENT BE LOCATED? New Investments (N = 140) * Business may select more than one category

% OF MANUFACTURERS ADDING JOBS: Workforce: Manufacturers (N = 221)

% OF MN BUSINESSES ADDING JOBS: Workforce: All Industries (N = 831)

% OF MANUFACTURERS REPORTING TROUBLE: Trouble Filling Jobs: Growing (N = 163)

% OF ALL BUSINESSES REPORTING TROUBLE: Trouble Filling Jobs: Statewide Trend * Recruitment difficulty appears to be even more severe in manufacturing than other industries

REASONS FOR DIFFICULTY FILLING JOBS Trouble Filling Jobs: Manufacturing (N = 132) * Business may select more than one category

ACT IN 2016 TO BUILD OUR FUTURE Build Our Foundation for Future Growth What actions (private & public) will deliver: 1.More innovators 2.More exporters 3.More investment; and 4.More workers ready for a “new economy.”