Most expect business conditions to improve or stay the same in coming year
1/9/2017 10:10:54 AM
Shane Delaney, 651-259-7236
ST. PAUL – Minnesota manufacturers are upbeat about the economy, with 90 percent expecting production levels to increase or stay the same in 2017, according to an annual joint survey by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis.
The 2016 Minnesota Manufacturing Business Conditions Survey also found that 86 percent of respondents expect orders to increase or stay the same in 2017 and 89 percent expect exports to increase or stay the same.
The random survey of 262 Minnesota manufacturing operations was conducted in November.
“With manufacturing accounting for more than 315,000 jobs in Minnesota, the industry’s positive outlook is good news,” said DEED Commissioner Shawntera Hardy. “These results indicate that manufacturing in Minnesota is headed in the right direction, with the vast majority of employers expected to retain or increase the number of jobs in this critical industry.”
Among other findings of the survey:
91 percent expect employment levels to increase or stay the same.
80 percent expect profits to increase or stay the same.
93 percent expect productivity to improve or stay the same.
82 percent expect investments in facilities and equipment to increase or stay the same.
92 percent expect prices to increase or stay the same.
In a special question this year, manufacturers were asked about the effect of the Affordable Care Act. Seventy-one percent of those surveyed said operating costs increased because of the measure, and 66 percent said profits decreased.
Many said, however, that the law did not affect their operations in such areas as prices charged to consumers (62 percent), hiring (63 percent), wages (67 percent), outsourcing (72 percent) and automation (61 percent).
The survey also found that manufacturers have a positive outlook for the state of Minnesota economy, with 86 percent expecting it to grow or stay the same in the coming year and 87 percent expecting statewide employment to increase or stay the same.
The full report is available here.
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 its services, visit theDEED website or follow DEED on Twitter.
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.