Still challenged, Minnesota manufacturers anticipate recovery in 2022
Compared to 2020, most manufacturers showed progress in 2021.
Manufacturers in Minnesota are optimistic about business in 2022 despite continuing challenges caused by the coronavirus pandemic.
Respondents to an annual Manufacturing Business Conditions Survey conducted by the Minnesota Department of Employment and Economic Development and the Federal Reserve Bank of Minneapolis say they expect to see a recovery this year.
DEED, in a news release on Wednesday, Feb. 2, said compared to 2020, most manufacturers showed recovery in 2021. Sixty-three percent of respondents indicated an increase in the number of orders, and 53% experienced production level growth. Additionally, 38% reported increased productivity.
For 2022, more than 50% of respondents expect wages to increase between 3-5%, and 34% expect benefits to increase between 3-5%. These increases could be related to attracting and retaining talent due to the ongoing worker shortages.
“It’s encouraging to hear Minnesota manufacturers see a light at the end of the tunnel in 2022. Despite setbacks from COVID-19, inflation, and worker shortages, manufacturers are finding ways to keep momentum going at their job sites,” said DEED Commissioner Steve Grove. “Manufacturing is critically important to Minnesota’s economic success, and many of these companies are hiring right now and offering good-paying, family-sustaining jobs.”
More than 309,000 people work in manufacturing in the state, which makes it the second largest industry sector by employment in Minnesota. When considering direct and indirect jobs – such as sales, shipping and professional services – manufacturing supports more than 886,000 jobs, according to DEED, or roughly 33% of all the state’s jobs.
Among the key findings of the survey:
- 92% expect employment levels to remain the same or go up in 2022
- 91% expect production levels to remain the same or go up in 2022
- 90% expect their number of orders to remain the same or go up in 2022
- 80% expect their profits to remain the same or go up in 2022.
Statewide, manufacturing accounts for 13% of all private-sector jobs. But in some counties across the state, it accounts for a much greater share of the jobs.