St. Paul, MN – Most Minnesota manufacturers expect improving or similar business conditions for 2025 compared to last year, according to an annual survey conducted by the Minnesota Department of Employment and Economic Development (DEED) and the Federal Reserve Bank of Minneapolis.  

More than 85% of the survey's 232 respondents expect improvements or similar conditions within all the survey's key business and labor force metrics. Companies were especially optimistic about their order volume, production levels, investments in plants and equipment, profitability and productivity.

Most businesses see no change in labor availability in 2025, with 77% expecting the industry's tight labor market to continue. About 70% of respondents anticipate wage increases of at least 3% to attract and retain workers.

"Manufacturers power Minnesota's economy, creating billions of dollars of economic activity and employing hundreds of thousands of people," said DEED Commissioner Matt Varilek. "These survey results underline the bright future for manufacturing in our state. DEED is proud to help these businesses expand and succeed, and to invest in workers looking for a career in manufacturing."

The full survey and methodology can be found on DEED's Manufacturing Business Conditions Survey page.

In 2023, manufacturing contributed $58.1 billion, or 12%, to the state's economy. The industry has 11% of all available jobs in the state, with an average annual wage in Minnesota at $79,000 — 10% above the average for all jobs. DEED projects more than 93,000 job openings for manufacturing production positions in Minnesota through 2032.

DEED has several programs to help manufacturers expand in Minnesota, including the Minnesota Investment Fund and Job Creation Fund to provide financing to new or expanding businesses, and the Automation Loan Participation program to fill gaps in financing needs for businesses purchasing machinery, equipment or software to increase productivity and automation.

Programs to help the manufacturing workforce include:

• Drive for Five, preparing Minnesotans for high-demand jobs in manufacturing, as well as four other occupational categories, by prioritizing training for populations that face obstacles to employment.
• Minnesota Job Skills Partnership, working with businesses, educational institutions and nonprofits to train or retrain workers, expand work opportunities and keep high-quality jobs in the state.
• Automation Training Incentive Program, awarding grants to small businesses in the manufacturing or skilled production industry to train incumbent workers efficiently on new automation technology.
• Job Training Incentive Program, helping new or expanding businesses in Greater Minnesota train workers quickly and efficiently.