GROW MINNESOTA! 2015
2015 Manufacturing Sector
Report
WHAT IS GROW MINNESOTA!?
• Business retention
• Business assistance
• Statewide: 76 local chamber partners
• 13 years old
GROW MN! 2003-2015
• 9,673 one-on-one business retention visits
– 3,076 in Metro, 6,597 in Greater MN
• 1,675 businesses assisted
• 18,163 jobs protected*
• We know Minnesota’s economy!
* Jobs since 2009
GROW MN! 2014-2015*
• 925 one-on-one business retention visits
• 305 businesses assisted
• 516 jobs protected
• We know Minnesota’s economy!
*10/15/14 – 10/31/15
INDUSTRIES VISITED 2014-2015*
Manufacturing
Other
22%
Manufacturing
29%
Retail Trade
Finance/Insurance
Health Care/Social Assistance
4%
Professional/Scientific/Technical Services
6%
Accommodation/Food Services
Construction
6%
Retail Trade
13%
6%
7%
7%
Arts/Entertainment/Recreation
Other
GROW MN! MANUFACTURING SECTOR 2014-2015
• 274 one-on-one business retention visits
– 93 in Metro, 181 in Greater MN
• 100 manufacturing businesses assisted
*10/15/14 – 10/31/15
2015 MANUFACTURING SECTOR: KEY FINDINGS
Fueling growth…
•
•
•
High rate of innovation
Export at higher rate than other sectors
Adding jobs at higher rate than other sectors
Slowing growth…
• 82% report difficulty hiring; 22% in 2010
• Reliance on international markets has had short-term, negative
impact
MANUFACTURERS VISITED BY EMPLOYEE SIZE
140
129
120
100
80
60
49
54
37
40
20
0
0-49
50-99
Number of FTE
100-249
250+
Property Characteristics
% OF MANUFACTURERS THAT OWN vs LEASE
18%
Owned
Leased
82%
(N = 229)
Innovation: Up
BUSINESSES CREATING NEW PRODUCTS, LAST YEAR
100%
90%
80%
71%
70%
65%
60%
52%
50%
46%
44%
40%
30%
20%
10%
0%
2011
2012
2013
2014
2015
(N = 269)
Innovation: Linked with Increased Sales
MANUFACTURERS THAT INNOVATE OUTPERFORM THOSE THAT DON’T
90%
83%
80%
70%
58%
60%
50%
% of businesses with
increased sales last year
40%
30%
20%
10%
0%
2011
2012
Firms that added new products
2013
2014
Firms that did not add new products
2015
Exports: Manufacturing
% OF MANUFACTURING BUSINESSES THAT EXPORT
39%
Yes
61%
No
*29 % of manufacturers report international as their fastest growing market
(N =213)
Exports: All Industries
% OF ALL MN BUSINESSES THAT EXPORT
25%
Yes
No
75%
* 11% of all MN businesses visited report international as their fastest growing market
(N = 843)
Exports: Manufacturers Rely on International Markets
FASTEST GROWING MARKETS
9%
Local
7%
Minnesota
36%
United States
19%
Midwest
29%
International
0%
5%
10%
15%
20%
25%
30%
35%
40%
(N = 209)
New Investment Plans: Up
% OF MANUFACTURERS WITH PLANS: 2013 - 2015
70%
66%
58%
60%
50%
40%
38%
30%
20%
10%
0%
2013
2014
2015
(N = 291)
(N = 210)
(N = 261)
New Investments
WHAT TYPES OF NEW INVESMENTS?
Expansion/renovation of exisiting facility
70
New facilities
58
Major equipment purchase
75
0
10
20
30
40
50
60
70
80
New Investments
WHERE WILL NEW INVESTMENT BE LOCATED?
20
4
At this location
11
In this community (at another
location)
In another community in MN
17
In another state
101
In another country
24
Don't Know
(N = 140)
* Business may select more than one category
Workforce: Manufacturers
% OF MANUFACTURERS ADDING JOBS: 2011 - 2015
70%
58%
60%
53%
50%
50%
52%
42%
40%
30%
20%
10%
0%
2011
2012
2013
2014
2015
(N = 221)
Workforce: All Industries
% OF MN BUSINESSES ADDING JOBS: 2011 - 2015
50%
46%
45%
45%
40%
41%
37%
36%
35%
30%
25%
20%
15%
10%
5%
0%
2011
2012
2013
2014
2015
(N = 831)
Trouble Filling Jobs: Growing
% OF MANUFACTURERS REPORTING TROUBLE: 2010 - 2015
90%
82%
80%
78%
70%
60%
50%
Yes
40%
No
30%
20%
22%
18%
10%
0%
2010
2011
2012
2013
2014
2015
(N = 163)
Trouble Filling Jobs: Statewide Trend
% OF ALL BUSINESSES REPORTING TROUBLE: 2010 - 2015
90%
80%
80%
72%
70%
60%
50%
Yes
40%
No
30%
28%
20%
18%
10%
0%
2010
2011
2012
2013
2014
2015
(N = 611)
* Recruitment difficulty appears to be even more severe in manufacturing than other industries
Trouble Filling Jobs: Manufacturing
REASONS FOR DIFFICULTY FILLING JOBS
lack of basic education
6
poor work ethic
36
lack of technical skills
86
lack of candidates
108
0
20
40
60
80
100
120
(N = 132)
* Business may select more than one category
ACT IN 2016 TO BUILD OUR FUTURE
Build Our Foundation for Future Growth
What actions (private & public) will deliver:
1.
2.
3.
4.
More innovators
More exporters
More investment; and
More workers ready for a “new economy.”