1. GROW MINNESOTA! 2015 2015 Manufacturing Sector Report

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

3. GROW MN! 2003-2015 9,673 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

4. GROW MN! 2014-2015* 925 one-on-one business retention visits 305 businesses assisted 516 jobs protected We know Minnesota’s economy! *10/15/14 – 10/31/15

5. INDUSTRIES VISITED 2014-2015*

6. GROW MN! MANUFACTURING SECTOR 2014-2015 274 one-on-one business retention visits – 93 in Metro, 181 in Greater MN 100 manufacturing businesses assisted *10/15/14 – 10/31/15

7. 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.

8. 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

9. MANUFACTURERS VISITED BY EMPLOYEE SIZE

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

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

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

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

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

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

16. % OF MANUFACTURERS WITH PLANS: 2013 - 2015 New Investment Plans: Up (N = 291)(N = 210)(N = 261)

17. WHAT TYPES OF NEW INVESMENTS? New Investments

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

19. % OF MANUFACTURERS ADDING JOBS: 2011 - 2015 Workforce: Manufacturers (N = 221)

20. % OF MN BUSINESSES ADDING JOBS: 2011 - 2015 Workforce: All Industries (N = 831)

21. % OF MANUFACTURERS REPORTING TROUBLE: 2010 - 2015 Trouble Filling Jobs: Growing (N = 163)

22. % OF ALL BUSINESSES REPORTING TROUBLE: 2010 - 2015 Trouble Filling Jobs: Statewide Trend * Recruitment difficulty appears to be even more severe in manufacturing than other industries

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

24. 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.”