The Free Press, Mankato, MN

Local News

February 23, 2011

Manufacturers sounding upbeat tone

By Tim Krohn The Free Press

NORTH MANKATO — The state’s manufacturers are decidedly more upbeat about the economy than they have been the past three years, but there remain big concerns about health care costs and the overall business climate.

“They feel the market has turned and we’re on more solid footing,” said Bob Kill, president of Enterprise Minnesota.

Results from a new survey show 40 percent of executives foresee economic expansion this year, a sizable jump since the group did its first survey in 2008.

The number of manufacturing executives who expect increased profits, revenues and capital expenditures nearly doubled in this year’s report compared to the past two years.

Kill, who spoke Wednesday at South Central College, said the fact companies are spending more on capital improvements is a strong indicator of a more upbeat mood.

The survey, which included separate information for southwest Minnesota, showed the optimism is lower there than the statewide results.

For example, just 24 percent of southwest manufacturing executives believe the state’s business climate is headed in the right direction, while 41 percent believed that statewide.

And while overall optimism may be up, worries about health care costs are high.

“Health care remains the No. 1 challenge and the No. 1 concern,” Kill said.

Executives are worried about rising costs, added regulations and uncertainty about the federal health care reform.

At the same time, more and more potential employees are now viewing good health benefits as their top priority, Kill said, over wages and other issues.

Of the manufacturers surveyed, 25 percent offered no health benefits.

The executives continued to say salaries and wages will continue to be stagnant, although half said they expect wages to increase over the next two years.

The full report can be seen at www.stateofmanufacturing.com.

Enterprise Minnesota was created by the Legislature to assist manufacturers. They are affiliated with the Department of Commerce and other manufacturing associations.



On March 10, from 8-10 a.m., Abdo, Eick & Meyer will discuss local manufacturing trends at an event at the Centennial Student Union, Room 201, at Minnesota State University. RSVP to Tiffany by March 5 at 507-304-6849.  

 

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