Minnesota lost 3,000 production jobs in 12 months, making some wonder whether the sector is forever down and out.
Hooey, says Bob Kill, CEO and president of Minnesota Technology Inc., a quasi-state agency that works with outstate fabricators. "I can't say that it's a bad time for Minnesota's manufacturing. Nowhere among [producers] do I observe hand-wringing or hear gloom-and-doom worries about the ravages of a potential recession. Not once. Not ever."
Despite news that the U.S. manufacturing sector declined for a fourth consecutive month, hundreds of small manufacturers across the state report rich growth in the wake of dying foundries, shrunken supply bases, the sinking dollar, war and new environmental rules. Others cite the soaring agriculture sector and a drive toward greener products for thriving exports, innovations and millions in fresh revenues.
Small companies that stay nimble, innovative and technologically creative will grow even in this market, Kill said.
"Minnesota has an incredible manufacturing environment that will clearly compete in the world economy quite well," said Denny Dotson, owner and president of Dotson Iron Castings in Mankato.
When Dotson got into the business 35 years ago, there were 2,000 foundries. Just 400 operate now, he said. Still, he said he expects 15 percent growth this year. "We are very good at picking up business from foundries as they close," Dotson said.
His $30 million foundry is growing on orders from the military and from farm-equipment-makers John Deere, Kinze and Case New Holland. With commodity prices up, farmers are investing again in new equipment.
"Agricultural growth is huge. If there is one thing that is driving [manufacturing growth] in Minnesota, it would be ag," Dotson said.
