1/11/2016 10:14:43 AM
Monte Hanson, 651-259-7149
ST. PAUL -Most Minnesota manufacturers expect business conditions to remain stable or improve in 2016, according to a joint survey released today by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis.
The Minnesota Manufacturing Business Conditions Survey found that 87 percent of the respondents expect production levels to stay the same or increase in 2016. When asked about employment levels, 86 percent of manufacturers said they expect hiring to remain the same or increase in the coming year.
The random survey of 229 Minnesota manufacturing businesses was conducted in November.
"The survey indicates Minnesota manufacturers are confident about the coming year and expect steady growth in production and hiring," said DEED Commissioner Katie Clark Sieben. "This points to continued expansion of our manufacturing sector and ongoing demand for a skilled, trained workforce."
The full report is available /deed/data/research/biz-conditions-survey/index.jsphere on the DEED website.
1. 91 percent expect exports to increase or stay the same.
2. 95 percent expect productivity to increase or stay the same.
3. 80 percent expect profits to increase or stay the same.
4. 79 percent expect investments in plants or equipment to increase or stay the same.
5. 84 percent expect orders to increase or stay the same.
In a new question this year, manufacturers were asked whether recent changes in the exchange rate were affecting sales and other business indicators. The large majority said a stronger dollar had no impact in the past year on employment (90 percent), capital expenditures (84 percent) and profitability (81 percent). Nearly a quarter of the respondents, however, said the exchange rate had contributed to a decline in sales.
The survey also indicated that while manufacturers were optimistic about their own companies in 2016, they were slightly less optimistic about the overall state economy. Thirty percent expect corporate profits and 28 percent expect consumer spending to decline in the coming year.
DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at the DEED website (http://mn.gov/deed) or go to our Twitter account (http://twitter.com/mndeed).
Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.