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Minnesota's rural manufacturing landscape could take a hit heading into 2026.

The U.S. Department of Commerce's both overseen by the Trump Administration, announced that it would not renew 10 expiring contracts on April 1.

Manufacturers nationwide criticized the decision.

Following this, the NIST announced on April 15 that it would reinstate the 10 contracts and extend each by six months, creating a pseudo-evaluation period of the MEP program.

The two abrupt decisions were seen as surprising and confusing.

"Administration at the federal level is talking about, 'We need to bring manufacturing back,' but they're defunding an organization nationally that's the heart and soul of helping small manufacturers (that) do this reshoring," said Bob Kill, Enterprise Minnesota's President and CEO. "It's kind of an ironic twist."

is a state and federally affiliated consulting agency and Minnesota's sole MEP representative, operating from the Twin Cities area for 30 years.

Each state and Puerto Rico has a sole consulting agency to utilize an MEP reimbursement of 50% to support small and medium manufacturing operations statewide.

Annalise Braught / Bemidji Pioneer

Services provided support job creation and employee retention by offering aid surrounding leadership training, expansion, hiring practices, networking, certifications and more.

Enterprise Minnesota was not affected by the two decisions; however, the future of the MEP program is now up in the air.

Minnesota houses a diverse field of roughly 8,600 manufacturers. Manufacturing employees earned an average of $76,950, 10% higher than the average for private sector jobs, according to statistics from 2022. Overall, manufacturers contributed $58.7 billion to Minnesota's economy in 2022.

The NIST estimates suggest the MEP program is a positive force, aiding the manufacturing field with $15 billion worth of new and retained sales, $2.6 billion saved by manufacturers and more than 108,000 jobs created in 2024, nationwide.

If the NIST decides to terminate the MEP program, the manufacturing field would lose a reliable partner.

And this could occur quickly.

All 51 MEP contracts are set to expire by April 2026 — 37 in 2025, including North Dakota, Michigan and Iowa, and 14 in 2026, including Wisconsin and South Dakota. Enterprise Minnesota's contract would cease on Jan. 1, 2026.

Consulting agencies would still be able to offer services, however, agencies would struggle to efficiently offer the same amount of services.

"We work in every corner of the state," Kill said. "(This decision makes it) very challenging to serve as a statewide organization again. We'd reinvent ourselves, but it would be a different organization."

The agencies would likely need to downsize and raise prices to compensate for lost funding.

"I can say that rural Minnesota manufacturers will be the most heavily penalized," Kill explained. "Bemidji would be an example. The further we drive, the more expenses we incur. Without this federal help, all of a sudden, our costs would go up significantly. If the client couldn't pay their significantly higher fees, we just wouldn't be able to serve them."

According to Kill, 85% of Minnesota manufacturers operate with 50 employees or fewer and a large number operate with 10 employees or fewer. Manufacturers with smaller operations are more likely to be based in Greater Minnesota.

These are the manufacturers that Kill and others are worried about.

is a Bemidji-based, regional manufacturer of overhead garage doors. NCDC designs and assembles garage door sections at its Bemidji facility before shipping its product within a dealership network of midwestern and western states.

NCDC President and CEO Steve Palmer experienced the benefits of the MEP program firsthand while working in Brainerd.

He moved to Bemidji, opened NCDC and immediately formed a connection with Enterprise Minnesota. Palmer even spent time on the Enterprise Minnesota Board of Directors.

a Bagley-based engineering and manufacturing company that focuses on the power sports vehicle market, has also benefited from Enterprise Minnesota services.

Annalise Braught / Bemidji Pioneer

TEAM has faced numerous challenges since it was established in 1967, including expansion throughout northern Minnesota, North Carolina and Mexico.

Now, TEAM is facing a new challenge.

TEAM Industries President and CEO Micah Ricke explained that the power sports market has slowed down since the COVID-19 pandemic. He believes TEAM must diversify to stay competitive. Thus, TEAM has reached out to Enterprise Minnesota to receive consulting help.

Both companies are actively seeking help from Enterprise Minnesota. If the MEP program is cut, both would be negatively impacted, which in turn could indirectly affect their communities.

This goes against what rural manufacturers strive to accomplish.

Generally, rural manufacturers contribute to the state and local economy, offer ample employment opportunities and are sometimes the best-paying local jobs.

"Manufacturing can really spread out and positively impact a community," said Palmer, "as far as job growth, the relationship between different businesses in town, the community and vice versa. It (shows) just how vital manufacturing is for a thriving community."

Rural manufacturers give folks a chance to earn more while still having a small-town experience.

"My grandfather (who started TEAM), he was a Bagley boy," Ricke explained. "Nobody was hiring mechanical engineers in Clearwater County back then, so starting his own company was sort of a means to the end, which was to live where he wanted to live.

"We choose to be in rural areas because of that. It was one of the founding missions to provide good-paying careers for people who wanted to live in rural areas, because my grandfather just hated living in big cities. We've held to that and it's been, typically, pretty good."

Palmer believes that location can make the difference.

"I know where communities are successful with manufacturing," Palmer began, "there's (typically) a strong relationship between local tech schools, trade schools, community colleges, universities that support the manufacturers."

These positives do have limits.

Ricke explained that rural areas eventually run out of hires, and drawing folks from one small community to another can be a challenge. Thus, rural manufacturers must plan accordingly.

"We're not expecting to build a plant in Bagley and employ 1,000 people," Ricke said. "The drawback is you hit a certain point in a certain community, and a lot of times, you saturate it. You can only get so many people from an area."

Kill, Ricke and Palmer each individually expressed that all of these tidbits suggest that the MEP program is worth saving.

"I'm just speculating, but my gut would tell me (the MEP program) was definitely worth the investment, and I know I find value in it," Ricke said. "I'd hate to see those (smaller companies) get priced out of (receiving services), if that's what it comes to."

Kill noted that the MEP program has historically operated as bipartisan and should remain as such. However, with the recent Trump Administration decisions, he feels that conservative members of Congress are lagging behind those on the Democratic-Farmer-Labor side of the aisle.

"Right now, obviously, the Republicans (have) to speak a little quieter," Kill said. "Sen. Amy Klobuchar has been a huge fan over the years and has helped us a number of times. She's rallied all the Democratic side."

Annalise Braught / Bemidji Pioneer

Kill shared that folks should reach out to local representatives to express concern about and support for the MEP program to preserve it. Anyone interested or involved in the manufacturing field could do this.

"We're asking our clients to reach out and express concerns," Kill stated. "That's our No. 1 focus, along with continuing to work with our clients. Right now, the need that we're seeing from our smaller clients is more than it's ever been with the tariff agony and things like that going on."

The market is ever-changing, something the MEP program strives to assist with. Without MEP funding, the Minnesota manufacturing landscape could fundamentally change, with rural manufacturers left in the dust.

The next batch of MEP contracts is set to expire on July 1. The Trump Administration's next decision could likely determine the fate of the MEP program.