A report by the Minnesota Department of Employment and Economic Development finds Minnesota manufacturing businesses are "cautiously optimistic" about 2024.
The report surveyed a random sample of 1,000 manufacturing establishments and received around 250 responses. DEED Economic analysis director Neal Young says there are some good indicators for optimism, but it's not across the board.
“Respondents indicated that they see modest expansion in profits, number of orders, productivity and production levels. There are of course, some areas of concern, labor availability remains a concern,” Young said. “Although the outlook does show a little bit of improvement compared to their performance in 2023.”
Young says the report finds exports and employment levels are also expected to be slightly higher than last year.
He also says manufacturers have adjusted to deal with supply chain issues.
“Seventy-seven percent expect profits to be the same or higher in 2024. Seventy-one percent, expect number of orders to be higher in 2024,” he said. “Eighty-three percent expect production levels to be the same or higher in 2024. And 86 percent expect productivity to be the same or higher in 2024."
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