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The success of Minnesota’s economy is inherently linked to the vitality and growth of its manufacturing sector. Manufacturing is Minnesota’s second largest sector, making up 12% of the state’s total economy. Many of Minnesota’s most recognizable companies and nationally competitive industry clusters have emerged from the state’s highly diverse manufacturing sector. It is a leading employer in nearly every region of Minnesota and provides above-average wages to workers with a wide range of skills and education levels, sustaining economic vitality in local communities around the state.

Yet the sector faces distinct headwinds that impact its performance. Manufacturers operate with disproportionately high fixed and operating costs and are subject to complex layers of local, state, and federal regulation. At the same time, they compete in national and global markets, creating significant competitive pressures. In recent years, Minnesota manufacturers have also experienced growing workforce challenges, limiting their ability to fill open roles and expand operations.

This report highlights key facts about manufacturing’s role, performance and challenges in Minnesota’s economy. We invite stakeholders across the state to engage in a shared effort to support Minnesota’s manufacturing businesses and help ensure they can continue to thrive and grow in Minnesota.