POLL: Manufacturers' Deep Concerns About Growing Regulatory and Tax Burdens Put Drag on Long-Term Confidence
The 2025 State of Manufacturing® survey reveals that "paid leave" legislation weighs heavily on their planning.
MINNEAPOLIS, Nov. 5, 2025 /PRNewswire/ -- Enterprise Minnesota's annual State of Manufacturing® survey this year reveals that Minnesota manufacturers have deep concern about the state's business climate, paid family medical leave, and uncertainty about federal tariffs. While manufacturers sense that the economy is rebounding and contributing to a more positive trajectory for their companies, concerns about government overreach dull their optimism.
"The common denominator we're seeing this year is a very negative view on the Minnesota business climate, brought on by tariffs, family leave regulations, payroll taxes, and administrative burdens," says Bob Kill, president and CEO of Enterprise Minnesota.
Pollster Rob Autry, founder of Meeting Street Insights, conducted the survey for the 17th year in a row. The results will be formally released at an event from 3-7:00 p.m. on Wednesday, November 5th at the Minneapolis Marriott Northwest.
Manufacturers have been generally sour about the state's business climate in each of the surveys conducted over the last five years. Their attitude improved slightly over last year with 53% stating that Minnesota is a worse place to do business compared to 56% in 2024. Yet the overall trend is not positive. Since 2021, when 46% saw a worse business climate, there has been a rising consensus among manufacturing leaders that the overall business climate is not favorable.
Six of the state's seven regions, including the Twin Cities, six listed government regulations as their top concerns. Only Northwestern Minnesota cited taxes (66%) over government policies (50%). Taxes and tariffs were the most common second-place worries. Concerns about government policies peaked in Northeastern Minnesota at 60%, closely followed by 59% in Southwestern Minnesota.
Although fluctuating tariffs are a current concern, they aren't the top-ranked challenge manufacturers say might impact their future growth. Increasing costs of materials ranked highest (29%), followed by attracting and retaining a qualified workforce (28%), and then tariffs (26%). Inflation, the top challenge in 2024 at 33%, fell to the seventh biggest challenge at 12% in 2025.
Manufacturers and supporters of the industry may attend the November 5 event free of charge. Register at www.enterpriseminnesota.org/state-of-manufacturing/.
Enterprise Minnesota President & CEO Bob Kill is available for interviews. Please contact Robert Lodge to schedule an interview: rlodge@enterpriseminnesota.org, 612-455-4213.
Enterprise Minnesota is a business consulting organization that works with manufacturers and other businesses in Minnesota to help them compete and grow profitably. Enterprise Minnesota's annual SOM survey has taken the pulse of manufacturers since 2008. Polling firm Meeting Street conducts telephone surveys with 400 randomly selected manufacturing executives, including owners, CEOs, CFOs, COOs, presidents, vice presidents, and managing officers. Respondents represent a broad mix of manufacturers by region, employee count, and annual revenue. In addition, the survey is paired with an oversampling of 50 executives in each of the six McKnight Initiative Foundation regions.
Media Contact:
Robert Lodge
612-455-4213
404444@email4pr.com
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SOURCE Enterprise Minnesota