Copyright Star Tribune
Annual manufacturing survey finds companies are worried about increased costs from new state family leave policy, health care and tariffs. By Dee DePass The Minnesota Star Tribune November 6, 2025 at 11:45AM Minneapolis-based Graco's third-quarter profits were up 13%, but tariffs added $9 million to costs in the first nine months of the year. The company reorganized the way it sells its products the past few years to become more efficent. (Elizabeth Flores/The Minnesota Star Tribune) For Minnesota factories, total sales, new orders, inventories, employment and delivery times all fell in October, said Ernie Goss, Creighton’s economic forecasting director. “The regional manufacturing economy continues to move essentially sideways with elevated wholesale inflation,” Goss said. “Supply managers reported weakness in both imports and exports along with higher prices for imported goods.” Enterprise Minnesota’s findings showed similar challenges in most of the seven regions of the state where factory heads were surveyed and interviewed in focus groups. Producers here warned that escalating material costs and the difficulty of finding and keeping workers were among top obstacles hampering future growth. Others included wild-card tariffs, new government regulations, taxes and the rising cost of health care. While large corporations like Target and Hormel have reported layoffs in recent weeks, finding workers remains a big challenge, especially in rural areas, said Danhert, who runs the furniture maker in Kenyon and employs 110 workers. Nearly 7 in 10 larger manufacturers who took the Enterprise Minnesota survey said they are still hiring and, like in Kenyon, continue to struggle to find enough workers, especially in rural areas. Dee DePass Reporter Dee DePass is an award-winning business reporter covering Minnesota small businesses for the Minnesota Star Tribune. She previously covered commercial real estate, manufacturing, the economy, workplace issues and banking. See More
