BEMIDJI 鈥� Despite national concerns over inflation and a potential recession, Minnesota manufacturers remain confident in their ability to withstand hard times, according to a statewide survey conducted by Enterprise Minnesota.
Even among smaller manufacturers in northwest Minnesota and the Bemidji area, most feel that they will be able to weather any hardships the future might bring.
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鈥淒espite the challenges, despite the concerns about recession and inflation, 85% (of manufacturers) are confident,鈥� said Bob Kill, president and CEO of Enterprise Minnesota.
Kill presented the results of his organization鈥檚 survey at the Hampton Inn in Bemidji on Tuesday, Jan. 10, to a room full of local leaders, manufacturers and business owners as a part of the 14th annual State of Manufacturing Tour, a series of events that takes him across Minnesota.
Using the results of the survey and the feedback received during the tour, Enterprise Minnesota works to advocate for and support the manufacturing industry at the state level, something Kill considers incredibly important.
鈥淲e feel (manufacturers) really need a voice at the state level,鈥� Kill said, 鈥渕anufacturers want to be heard.鈥�
This year鈥檚 survey showed a surprising amount of confidence from Minnesota manufacturers about the future, even as they face considerable challenges related to inflation and supply chains.
Even though their confidence is high, however, it still hasn鈥檛 returned to the levels it had been prior to the economic downturn caused by the COVID-19 pandemic.
鈥�(Manufacturers) are confident, but it鈥檚 not returned to what it was in 2016, 2017 or 2018,鈥� Kill explained. 鈥淪till, it鈥檚 pretty strong, despite not being back to where it totally was.鈥�
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Smaller manufacturers, which Kill defined as making less than $1 million annually and noted make up most of Minnesota鈥檚 over 7,200 manufacturers, also have a slightly lower confidence in their ability to withstand a recession than their larger counterparts.
When including manufacturers of all sizes, the total confidence level was 85%, but this number decreased to 75% when looking at just smaller manufacturers.
鈥淭he confidence level is much higher in larger companies than it is in the smaller companies,鈥� Kill shared, 鈥淭hat鈥檚 why we try to break the data down.鈥�
Specific challenges
As for the specific challenges that manufacturers are concerned about, the survey found that the most pressing was overall inflation, which 55% of manufacturers marked as a concern, and difficulty in attracting qualified workers, 53%.
鈥淚t鈥檚 no surprise that overall inflation and attracting workers are on the top,鈥� Kill said. 鈥淔inding new workers is absolutely still the most important factor for growth and 84% are finding (hiring) very difficult.鈥�
Regionally, however, manufacturers in northwest Minnesota were more concerned with a recession than they were about finding employees.
While overall inflation was still the top concern, with 72% of regional manufacturers citing it as a worry, fears of a recession and its effects took the second highest spot at 63%.
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Kill noted that these different concerns also impact manufacturers in Greater Minnesota differently than those in the metropolitan area.
鈥淚nflation affects Greater Minnesota more, because of things like housing, child care and things that (metropolitan manufacturers) almost don鈥檛 think about because they have resources available,鈥� Kill said.
Because of these different challenges, however, Kill also believes that manufacturing outside of the Twin Cities area is more energized and advanced.
鈥淭he further I get away from the metro area, the more energized communities are,鈥� Kill shared. 鈥淵ou鈥檝e had to do things that if you鈥檙e sitting close to the metropolitan area you don鈥檛 have to do. You have to embrace different strategies.鈥�
According to Kill, even the number of attendees at Tuesday鈥檚 event in Bemidji demonstrated the energy backing manufacturing in the region.
鈥淭he energy here behind (manufacturing) is more than other communities,鈥� Kill said. 鈥淭hat says there鈥檚 a really strong interest in manufacturing here.鈥�
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