The 2026 State of Manufacturing® survey finds 55% say Minnesota’s business climate has worsened, while 88% are confident in their companies’ future.
MINNEAPOLIS, Nov. 11, 2026 /PRNewswire/ — Enterprise Minnesota’s 18th annual State of Manufacturing® survey reveals that Minnesota manufacturers remain confident in their own companies despite rising costs, government regulations, and uncertainty about the economy. More than half say the state’s business climate has gotten worse, yet manufacturers expect gains in revenue, profitability, and capital investment.
“In addition to the consistent, historic headwinds they’ve had in the past — access to labor, the tax situation in Minnesota, some of the legislative mandates around family and medical leave — now you also have market-level uncertainty coming out of the Gulf that is affecting material prices. It makes it challenging for them to plan,” says Mark O’Leary, president and CEO of Enterprise Minnesota.
This year, 55% of manufacturers believe Minnesota’s business climate has gotten worse, up from 53% in 2025. Just 12% say it has improved, while 32% say it has stayed the same.
Even with those concerns, 88% are confident in the future of their companies. Thirty-nine percent expect revenue growth. Expectations for increased profitability rose to 31%, up from 21% two years ago, while 33% anticipate increased capital spending, compared to 29% in 2024.
“These issues aren’t new to them,” says pollster Rob Autry, founder of Meeting Street Insights. “Despite the choppy waters, manufacturers seem to feel like they have a pretty good handle on it.”
Manufacturers also express confidence in managing trade pressures: 82% are confident about handling the current tariff and trade environment. Sixty percent are passing tariff-related costs on to customers, and 52% are increasing sourcing from domestic suppliers.
New benefits requirements are also affecting manufacturers. Eighty-five percent report an impact from the costs of funding paid family and medical leave through a payroll tax shared by employers and employees, and 79% report an impact from paid sick and safe time requirements.
The increasing cost of materials and attracting and retaining a qualified workforce remain the top two challenges to growth. The unfavorable business climate and health care costs rank third and fourth. Forty-nine percent of manufacturers are actively hiring, up from 47% last year, although most have only a small share of positions open.
The survey results will be formally released Wednesday, November 11, from 3–7 p.m. at the Minneapolis Marriott Northwest, 7025 Northland Drive North in Brooklyn Park. The program begins at 4 p.m. and includes a presentation by Autry and a panel discussion moderated by Dee DePass, business reporter with the Minnesota Star Tribune.
The event is open to manufacturers and supporters of manufacturing. Register at www.enterpriseminnesota.org/event/2026-state-of-manufacturing-minneapolis/.
For media inquiries and interview requests, contact Robert Lodge at 426746@email4pr.com or 612-455-4213.
The State of Manufacturing® survey includes telephone interviews with 400 randomly selected Minnesota manufacturing executives representing a mix of regions, company sizes, and annual revenues. The survey has a margin of error of ±4.9% and is paired with an oversampling of 50 executives in each of the six McKnight Initiative Foundation regions. This year’s research also included eight focus groups around the state.
Enterprise Minnesota is a business consulting organization that helps manufacturers across Minnesota compete and grow profitably. Enterprise Minnesota is affiliated with the National Institute of Standards and Technology (NIST) and the Manufacturing Extension Partnership (MEP) network, a program linking all 50 states and Puerto Rico to strengthen the global competitiveness of U.S.-based manufacturers. The State of Manufacturing® survey has been conducted since 2008.
Contact: Robert Lodge, Director of Digital Marketing & Media Relations
426746@email4pr.com | 612-455-4213
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SOURCE Enterprise Minnesota
Distributed by PR Newswire / Cision.
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