Enterprise Minnesota® Magazine Spring 2026

Peer councils allow manufacturers to share ideas, solve problems, and expand networks.

Building AI’s Home

Why data centers need components, power, and more — and fast.

BUILDING AI’S

Calling On Your Peers

Enterprise Minnesota’s peer councils give manufacturing leaders an outlet for sharing ideas, solving problems, and growing their network.

Manufacturers who help employees reach the Productivity Zone and fill the leadership pipeline rise above the competition.

Final Words

Much deserved thanks for two great decades at Enterprise Minnesota.

Glancing Back, Looking Ahead

Enterprise Minnesota President Bob Kill reflects on nearly two decades of leading the organization that helps manufacturers improve operations and works to connect and elevate the manufacturing community.

Proper planning helps owners sell their companies, enter fulfilling next chapters, and ensure their businesses and employees continue to thrive.

Return for Regrowth

Twin Cities couple moves home as third-generation owners, energizing Amax Manufacturing for its next chapter.

When Innovation Meets Reality

Infinity Mattz developed a standout product to change the industrial market. Now they have to sell it.

Coping Mechanisms

With new paid leave law, a mix of best practices and creative ideas may be the way forward.

Progress Check

Enterprise Minnesota is barely recognizable from its early roots, and we like what we’ve become.

Bob Kill

Final Words

Much deserved thanks for two great decades at Enterprise Minnesota.

For the last 18 years as president and CEO at Enterprise Minnesota I’ve had the best job I could imagine. The people I’ve worked with and the clients we’ve served made it a passion. It just didn’t feel like work.

Over the years, our clients, staff, and partners have helped highlight what manufacturing is: an economic anchor for our communities, a source of genuinely promising career opportunities for our younger people, and a fount of pride for the companies that drive it all. I am thankful for everyone behind the renaissance.

Our clients are our reason for being, and the demographics of manufacturing in Minnesota make this job exciting. Small family businesses hum along, and we get to play a minor role in their success. It is gratifying to witness a one- or two-person shop grow to 10 employees, and then 20, as they improve operations and reach new markets.

Our clients consistently recognize our talented and dedicated staff for their extraordinary effort and results.

Our partners have provided more support for manufacturing than many will ever know. Minnesota’s technical colleges have helped manufacturers launch a true revival

in preparing the next generation of qualified employees, a movement that now extends into middle and high schools across the state, and a shift I never would have anticipated.

The Minnesota Initiative Foundations have supported us from the beginning, providing financial resources and connecting us with manufacturers in their areas as we worked together to elevate the profile of manufacturing in their regions. Our financial supporters — the companies that have consistently sponsored the State of Manufacturing® survey, advertised in this magazine, and helped underwrite our events — are a key reason we’ve built the reputation of

Our clients consistently recognize our talented and dedicated staff for their extraordinary effort and results.

manufacturing across the state.

Over the years, our boards of directors have been exceptional. They serve because of their passion for manufacturing and are always available, from serving on panels to hosting facility tours to testifying before the legislature.

Elected officials at every level of government have come to support both manufacturing and Enterprise Minnesota. I am thankful that so many have taken the time to tour their local manufacturers and learn firsthand about the impact of manufacturing in their communities.

I’m delighted to hand over the reins on March 2 to Mark O’Leary, an experienced leader with the style and people skills this organization needs and deserves. We had originally talked about a 90-day overlap for a leadership transition. With Mark, 30 days will be plenty. It’s going to be fun to watch from the outside as he finds new ways to grow, diversify, and build on the phenomenal people and reputation of this organization.

Publisher Lynn K. Shelton

Editorial Director

Kate Peterson

Creative Director

Scott Buchschacher

Copy Editor

Catrin Wigfall

Writers

Suzy Frisch

Abbey Hellickson

Tom Mason

Elizabeth Millard

Mary Lahr Schier

Photographers

Alex Carroll

Teri Larsen

Jason Prodinsky

Contacts

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New President

Mark R. O’Leary

will join Enterprise Minnesota as president and CEO on March 2.

his was a rigorous process, with a lot of steps involved as we reviewed a crowded field of very qualified applicants,” says Joe Plunger, board chair at Enterprise Minnesota and CEO of Midwest Metal Products in Winona. “The interview committee narrowed it down, then a wider group met with the final candidates.” The interview process included input from the board, current President Bob Kill, as well as four staff members representing Enterprise Minnesota employees.

“Mark comes to Enterprise Minnesota with broad leadership experience in building businesses and delivering profitable growth in manufacturing, financial services, supply chain, health care, and technology. This expertise will be invaluable,” says Plunger.

Prior to joining Enterprise Minnesota,

O’Leary served as the chief marketing officer of SPS Commerce, a global supply chain network. As executive lead for SPS Europe — with 2,000 customers in 14 countries — he worked to improve operations and performance while driving innovation.

O’Leary also served as president of Taylor Healthcare, a $250 million technology and solutions company that was acquired out of Chapter 11. After a rapid and successful turnaround, he was promoted to president of Taylor Communications, where he led restructuring of the $1.2 billion, 4,000-employee company.

At the National Center for Interprofessional Practice and Education at the University of Minnesota, a U.S.based public-private partnership and hub for resources designed to transform health care through team-based care, O’Leary led

the restructuring of the business to build revenue sustainability beyond its initial grant-based operations.

He earned a Bachelor of Arts in economics from the University of St. Thomas in St. Paul and a Master of Business Administration from Creighton University in Omaha.

“I’ve always been fascinated by the people who start their own companies and operate their own businesses,” O’Leary says. “That’s the heart of what Enterprise Minnesota is — helping those companies grow profitably.”

He expects to continue leading the organization on its current course. “Bob and the Enterprise Minnesota team have done a brilliant job. This is a very well-run organization that has been making a positive impact for decades,” he says.

O’Leary also places strong emphasis on flexibility, which will be essential as client companies face shifting global dynamics and advances in technology.

“In manufacturing, there are always changes. The approach that Enterprise Minnesota consultants take, coming in and immersing themselves with clients and providing support and guidance, will help companies deal with whatever they face,” he says.

The proof of this approach, O’Leary says, can be seen in the data about Enterprise Minnesota’s impact over the last five years, with more than 500 manufacturing clients supported, and a positive impact reported by clients of nearly $700 million in sales and more than $130 million in reduced costs.

O’Leary, who lives in St. Paul with his family, looks forward to the first 100 days of his tenure, when he plans to visit manufacturers, listen to their concerns, and learn about their challenges. He’ll also connect with supporters of manufacturing, including economic development organizations, educational institutions, and policymakers, who play a pivotal role in advancing the industry across the state.

Plunger expects O’Leary to make a positive early impression. “I see him very easily making connections throughout the state,” he says, adding, “I think he’ll be a great steward of Enterprise Minnesota and bring great value to the organization, much as Bob has done during his tenure.”

Return for Regrowth

A Twin Cities couple moves home to become third-generation owners of an injection-molding company, energizing Amax Manufacturing for its next chapter.

max Manufacturing has central Minnesota roots that date back nearly 80 years, starting as a blacksmith shop after World War II and evolving into a plastic injection-molding company. Adam and Candice Kantor purchased the business aiming to maximize its potential by investing in advanced technology and energizing its marketing.

Tapping into their experience in engineering and business operations, the husband-and-wife team became third-

generation owners of Foley-based Amax in 2023. They bought the company from Adam’s uncle, who wanted to retire. The Kantors uprooted their family from the Twin Cities and moved to Adam’s hometown in Benton County, aiming to bring new life to Amax.

The company already had a small but steady roster of customers, giving the couple a foundation for expanding its capabilities and growing the business. “My uncle had been semi-retired for the last 10

years,” Adam says. “Our goal is to bring Amax back to its heyday and fill out the capacity that we have.”

Even though Amax has been operating for decades, it mostly flew under the radar. It didn’t have a website or do much marketing when the Kantors took over. Candice, company president, and Adam, head of operations, teamed with Enterprise Minnesota to find new ways to promote Amax’s work and its new owners.

The Kantors have a great story to tell, including their engineering backgrounds and rich professional experience. A mechanical engineer, Adam spent a decade in the motorcycle and electric vehicle divisions at Polaris, including managing its Powertrain program. Candice, a civil engineer, worked in water resources consulting at Barr Engineering for nearly 10 years. Summer jobs as a youth also gave her injection molding know-how.

Streamlining processes, adding services with new equipment

Some of the Kantors’ first moves included purchasing a robot and a new electric injection molding press to streamline operations and become more energy efficient. Amax also added 3D printing capabilities, giving the company new ways to serve customers. As Amax works to design and complete their molds, it can create 3D parts as placeholders. Then customers are able to keep their processes running and do fit testing, cutting weeks out of the production schedule, Adam says.

Aiming to provide a one-stop-shop, Amax also provides services like stamping parts, assembly, and packaging. Amax’s other selling points are its flexibility and willingness to run small orders, Candice says. For example, when bidding on projects, the company offers two approaches: a traditional injection molded part or a 3D printed one, each with different price points.

“Since we’re small, we can be more flexible and responsive. We can do smaller jobs at cost-effective prices, and we have the capacity to do bigger projects as well,” Candice says. “Some of the injection molders are looking for big orders and regular shipments. We’re willing to run small orders, run orders once a year, and meet customers’ needs for order size and frequency. We also can work as additional engineering staff for customers and head off issues. Not all companies can do that.”

To find its new path, the Amax team worked with Amy Hubler, an Enterprise Minnesota business growth consultant, on a strategic business development project. They focused on sales and marketing initiatives to jumpstart growth, including analyzing Amax’s points of differentiation. They also identified its customer segments and determined how to best connect with each group. “It’s fairly sophisticated work when you dive into it,” Hubler says. “Not all customers are the same. We have to understand customers’ motivations so that we know how and where to reach them, what to say to them, and what we’re hoping to do together.”

Amax also expanded its online presence with its first website, while the Kantors worked to get the company’s name out. Becoming involved in local and regional business groups has been key. To build its network, Amax joined chambers of commerce, other community organizations, and the Central Minnesota Manufacturers Association. Candice serves on some of the association’s committees and joined

the City of Foley Planning Commission. Amax also got certified as a woman-owned business, helping customers with supplier diversity.

The company has customers across the country — and the world — with the bulk of its work in the mobility, office products, and outdoor recreation industries. Cur-

Building more business nearby helps Amax reduce or eliminate customers’ shipping costs and deliver their orders faster.

rently, though, the Kantors are focusing Amax’s growth in a 100-mile radius of Foley. Building more business nearby helps Amax reduce or eliminate customers’ shipping costs and deliver their orders faster, Candice says.

“It impresses me that Adam and Candice

are so willing to dig in and figure things out. They have great drive and ambition to grow the company,” Hubler says. “They are pounding the pavement to grow awareness of the work they do.”

Mightier marketing for the win

Amax’s marketing and networking efforts are already paying off. On top of retaining all of its original customers, the company has secured new work by being more visible. So far, Amax has grown sales by 11% and its customer roster by 33%. “Once someone starts talking to us, we’ve had good success landing projects,” Candice says. “The biggest challenge is hitting people at the right time so that they are familiar with us as they develop new products or parts.”

The Kantors certainly took a risk when they left stable careers and their Twin Cities home to take over a small business. But the couple was ready for a change and a new challenge, and to be closer to family. So far, the move has paid off.

Suzy Frisch

Family Business

Enterprise Minnesota’s outgoing editor introduces Kate Peterson, his replacement.

ith this issue, Kate Peterson begins her new role as editor of Enterprise Minnesota. After three abandoned “retirements,” I am finally leaving.

Kate brings to her new role decades of experience writing about business and policy as well as a lifelong familiarity with

the rhythms of enterprise — how it’s built, sustained, improved, and passed along.

Kate is hardly new to these pages. Over the years, she’s become one of our most recognizable contributors, greatly admired for work that combines an overall understanding of business with how public policy decisions coming from St. Paul or

this issue.

Washington, D.C. can roil factory floors or shop offices across Minnesota.

“Kate’s work distinguishes itself because of the way she blends a deep understanding of business policy and how it affects individual manufacturers’ ability to do business,” says Lynn Shelton, the vice president of marketing and organizational development at Enterprise Minnesota. “It’s a gift.”

That gift was evident early.

My professional relationship with her goes back more than three decades, to the summer of 1990, when I was managing the re-election campaign of U.S. Sen. Rudy Boschwitz. Kate, then a rising senior at the University of Notre Dame majoring in economics, joined the campaign as an intern at the recommendation of her father, a management professor at the

“I love reading about these businesses,” she says. “These men and women in small towns who build something from almost nothing, stay humble their whole lives, and try to figure out how to pass it on to their kids — that’s the fabric of our country.”

University of Minnesota Carlson School of Management.

I quickly recognized that Kate was no ordinary intern.

Within weeks, Kate was making a significant contribution to policy research and white papers, work usually reserved for seasoned staff, not college students (whose typical role at the time would be making Xerox copies of said work).

By summer’s end, I persuaded her to take a semester off from school to assume the full responsibility of becoming the

campaign’s research director. Drawing on remarkable academic rigor and a natural grasp of how policy affects real people, she helped shape information that fed into the campaign’s messaging.

That sensibility, Kate says, was honed long before her first byline.

Growing up, business was a family affair. Her parents ran a lumber business, and dinner-table conversations often analyzed inventory, customers, inflation, or the latest ripple effects of government policies.

“We always had dinner together,” she says. “It very much revolved around business and the economy. Everybody listened quietly and learned from each other.”

When her father returned to graduate school, the conversation remained the same: Business wasn’t abstract. It was personal and consequential.

That perspective explains Peterson’s particular affection for the manufacturers served by Enterprise Minnesota.

“I love reading about these businesses,” she says. “These men and women in small towns who build something from almost nothing, stay humble their whole lives, and try to figure out how to pass it on to their kids — that’s the fabric of our country. A lot of things are going away, but they hang in there. I love that the magazine celebrates that.”

Along the way, Kate assembled an impressive résumé that seems almost tailored to her new role. She started in the economics department at the IRS, spent several years on the legislative staff of Congressman Jim Ramstad, and later joined Twin Cities Business Monthly, where I was editor and publisher.

Her editorial instincts are matched by a deep commitment to family life. Peterson and her husband Waylon, a financial advisor, raised five children — now grown — all homeschooled, a path they never expected to take.

The decision came after the principal of their small Catholic school suggested that their frequent family travel was disruptive. Kate and Waylon shrugged and brought it all home.

“What’s more instructive than travel?” she says.

They never looked back.

They developed their own curriculum, continued to travel together, and discovered unexpected benefits. Younger children absorbed lessons alongside older

siblings. The family spent an unusual amount of time together — and it shows.

“One of the best things about our adult kids now is how close they are to each other,” Kate says. “They know everything about each other. If I haven’t heard from one for a while, another one always has.”

Their children’s paths have been varied but purposeful. Caroline, a Purdue University graduate, works in national security in Washington, D.C. Margaret, a Notre Dame ROTC graduate, serves as a transportation officer with the U.S. Army and was recently posted in Poland. Louisa, who also graduated from Purdue, teaches third grade in Elkhart, Ind. Rose studies

Her parents ran a lumber business, and dinner-table conversations often analyzed inventory, customers, inflation, or the latest ripple effects of government policies.

construction management at Purdue while participating in Navy ROTC. Adam, the youngest, is a freshman cadet at the U.S. Air Force Academy.

With children now scattered across the country — and across branches of the military — Kate and Waylon find themselves empty nesters in their large home in rural Culver, Ind.

Their flagpole reflects the transition.

“We don’t have enough spots for Army, Navy, and Air Force,” Kate says. “So right now, it’s just the American flag.”

As she takes the editorial helm at Enterprise Minnesota, close readers will see how she adapts her sensibility that has shaped every chapter of her life: an appreciation for work done well, families who build together, and businesses that endure not because they are flashy, but because they matter.

It’s a continuation of a lifelong conversation — one that began around a dinner table and now continues on the pages of the magazine she will lead. Tom Mason

STATE-OF-THE-ART STRUCTURE

Team Building

A manufacturer, an architect, and a contractor worked together to create a modern manufacturing facility that can grow with the company.

Three years ago, Stewartville-based GEOTEK decided to launch a new product — a 55-foot composite utility pole — and it needed a massive new space to accommodate production. So, the company assembled a team including architectural firm Widseth and McGough Construction to tackle the project.

Together the three developed plans for an expandable 105,000-square-foot facility that’s long on natural light, gives engineers a view of the manufacturing floor from their offices, and allows visiting customers to witness both production and testing from a conference room that overlooks the factory. GEOTEK broke ground on the

structure in 2023, and the first poles rolled off the line in July 2025.

Same market, new product

For decades, GEOTEK has produced composite products, including fiberglass crossarms for the electric utility industry. In 2022, the company acquired Alliance Composites, a long-time player in the composite light pole market.

The acquisition helped GEOTEK expand its reach in the utility market and “got us into the manufacturing of poles,” says Ken McDonald, GEOTEK’s chief financial officer. That experience led the company to develop and launch the new line of

composite utility poles.

Though composites constitute a small portion of the utility pole market now, it’s an area poised for tremendous future growth. Industry analysts expect significant growth — five to eight percent, compounded annually — in the coming years because of durability, lighter weight, and resilience in severe weather.

The type of pole GEOTEK launched typically lines country roads and city streets to deliver power across the last few miles of the electric grid. The company hopes its poles will be used for all power distribution but initially they are likely to be used in high-strength applications or where grid hardening is required — in coastal areas, along major thoroughfares, or through wet regions where wood doesn’t play as well as composites.

New product, new building

GEOTEK had never manufactured such a long pole, which presented challenges as it planned for the new building. “We wanted the largest spacing that was economically possible because we weren’t sure what the flow of the factory was going to look like to make a 55-foot pole,” McDonald says. “The open spans of 150’ x 300’ are unseen in most manufacturing spaces around here.”

But company officials wanted to go beyond just making a big building. They also wanted to ensure maximum natural light for employees, allow engineers to overlook the factory floor, give potential customers a view of production and testing, and incorporate as much composite construction material as possible.

The ideas for the building’s features came from all three players in the project: GEOTEK, Widseth, and McGough. Together they determined how the building would be positioned on the slightly sloping property, ultimately placing the production floor about 10 feet below the office level, which reduced the amount of dirt, fill, and leveling needed.

The offices, primarily used by GEOTEK’s production management team, overlook the factory floor. “It feels open when you’re in those offices because you’re looking out into this large factory,” McDonald says. “The management team enjoys seeing and studying the flow of product and materials throughout the factory.”

The new structure prioritizes natural light in both the factory and the offices. “You normally see offices along the outside walls, but our offices are on the inside,” McDonald

says. “There’s glass in the doors and big windows, so the offices get light as well.”

The other benefit of having the production floor on the lower level is that GEOTEK’s test lab is there. “This is where we take our utility poles to failure. We test them using hydraulic power, and we’ll actually break our own poles. This ensures our products meet or exceed mechanical strength properties,” McDonald says.

The test area is visible from the main conference room on the office level, an ideal space for meeting with potential customers. “We can talk about the product, attributes, and all the positive aspects of our poles, and then customers can actually see us test a product live in our lab,” McDonald says.

Visits in GEOTEK’s two other manufacturing buildings require customers to put on steel-toed shoes, safety glasses, and personal protective equipment and walk three minutes to the test lab. “This new facility expedites our factory tour process. It’s a clean and bright environment with windows and an open feel. You can just watch your products being tested

directly in front of you which gives our customers a lot of confidence about quality and performance,” McDonald says.

GEOTEK also challenged Widseth to utilize the company’s other products in the building. GEOTEK light poles are used in the parking lot, entryway, and foyer.

Lessons learned

GEOTEK’s original plan included flexibility for future expansion. The new building is 105,000 square feet, but the master plan allows for approximately 400,000 square feet to grow with customer demand for manufacturing the fiberglass utility pole product.

“We built the first half of the first building with a single sloping roof that goes to the middle,” McDonald says. “We basically built half the building. We wanted to see the demand in the market — and it’s exceeded all expectations.”

The building also uses composites in its stairs and railings and in the trenching in containment areas. “It’s a little nod to our industry, and as the world keeps moving toward more composites and more engineered products, it’s a good showcase,” McDonald says.

Empowering Minnesota’s Workforce

As the company prepares to launch the second phase of the project, it’s working with its partners to improve the process. “The next 100,000 square feet that we’re going to build will definitely have improvements now that we’ve seen the production work-cell and actually experienced making truckloads of poles,” he says.

“I think the second phase is going to be incredibly smooth and faster than our first phase just because we’ve been working together,” he adds.

Kate Peterson

WORKFORCE STRATEGIES

Coping Mechanisms

As companies grasp the effects of Minnesota’s new paid leave law, a mix of best practices and creative ideas may be the way forward.

Two years after the approval of the Minnesota Paid Family and Medical Leave law, applications for the program are pouring into the state and employers are figuring out how to cope with the program’s cost and the likely workplace disruptions when workers are off the job for up to 20 weeks.

The law, which was passed in 2023 and went into effect Jan. 1, allows employees to take up to 12 weeks of paid medical leave and 12 weeks of paid family leave to care for a newborn, a seriously ill loved one, or support a deployed military family member

— up to 20 weeks combined. Workers who earn total wages of more than $3,700 this year qualify for the leave program, which replaces between 55 and 90% of the worker’s pay. Workers have the right to return to their former jobs when the leave is over. The state-run plan is funded by a 0.88% payroll tax, with half provided by employees and half by employers.

The law may be modified when the Minnesota Legislature meets this year, but for now employers can manage the situation by relying on traditional best practices for training and team building

as well as creative approaches to filling vacant jobs.

Start with the basics

“This is going to hit every company differently,” says Michele Neale, an Enterprise Minnesota business growth consultant, who works with manufacturers to develop and implement talent and leadership strategies. Having an employee be absent for weeks at a time is not a new experience for most manufacturers. Creating contingency plans to replace employees in critical roles has always been a good idea, she says. “You never know if an employee is going to win the lottery and leave,” she says.

Start by making sure you have adequate documentation on how to do critical jobs — where to find materials or equipment, what are the steps in a process, who is the task handed off to next, what specialized skills are required. This can be written down, though taking video of employees doing their work and talking about what they are doing and why is often a more effective training process, she says.

Artificial intelligence could also be used to capture a process. Documentation has an

on-going benefit. It can reduce onboarding time for new employees as well as training replacements during leaves.

In addition to documenting how people do their jobs, cross-training workers so they can operate in more than one area increases an organization’s flexibility in all types of situations, Neale says. Enterprise Minnesota’s Training Within Industry program, for example, includes a module on job instruction, which teaches front line supervisors a four-step process to break down tasks and explain them clearly so that new or replacement employees can begin working quickly. The same type of instruction works well when cross-training employees.

As always, clear and consistent communication is key, Neale says. When an employee takes leave, be sure to know what absolutely must be done in the time they are gone and what can wait. It may be possible to divide tasks among several co-workers. Explore other resources that might be helpful, such as vendors that offer training.

A history of communicating regularly through daily or weekly team huddles builds cohesiveness among employees, understanding of each person’s skills and tasks, and a problem-solving mindset. “If you’ve created a highly engaged team, they’re more likely to think, ‘Hey, I can help out now,’” Neale says.

Creating a substitute workforce

Rep. Duane Quam, R-Byron, remembers when IBM downsized by almost half in the 1990s. The company experienced a critical skills gap, which led it to hire some workers back part-time or as consultants. Something similar might help Minnesota employers as they navigate the new paid leave environment, Quam says.

The law’s current restrictions on how much employees can earn before they reach full employment status would limit such a plan’s usefulness for now, but Quam is hoping to include a new worker category in modifications to the law.

“If we are going to have people off the

job for 12 weeks, possibly 20,” Quam says, “it would make sense to create a special classification for people to sub in for those on leave.”

This would be a designated substitute workforce. “They work only when an employee is on leave, and when that employee comes back, it’s fully understood by all parties that the position they are in is temporary,” Quam says. Recent retirees, who have the skills and may miss the camaraderie and pay of the work environment, might be the most likely people to take advantage of the new classification.

“It could be a win-win,” he says.

The new classification is one of several changes to the law that will likely be proposed in the 2026 legislative session, Quam says. He encourages manufacturers that have particular circumstances or problems related to the law to contact their industry organizations and request that those situations be incorporated in any new legislation.

Mary Lahr Schier

Four Questions INNOVATIONS

Tom Dippel

Manufacturing meets elected office.

Tom Dippel is a Minnesota business owner and legislator who brings manufacturing experience to public service. He’s the founder and owner of Minnesota Dental Lab, an advanced manufacturing company in Newport that specializes in guided surgery and implant restoration. He currently represents District 41B in the Minnesota House of Representatives and is running to represent Senate District 41 in 2026.

How did you get your start in manufacturing?

My parents have a business that’s similar to mine, and they were integral when I took a big risk and invested in a lot of new technology, including providing space at their office so I could purchase CAD/CAM equipment and start building accounts. God blessed that effort, and it continued to grow. Now I have my own commercial space and 20 employees. Our manufacturing process is very fast and very efficient. Instead of taking an industry average of two to three weeks to produce a surgical guide, we aim for delivery in three days. A large part of our sales comes from the five-state region, but we also have large accounts in other parts of the country, including Arizona and Texas. Our growth has been entirely referral based.

How does your experience in manufacturing influence your work as a legislator?

Manufacturing is the foundation of much of the state’s economy and produces great jobs, but many legislators don’t understand that. Almost none of the representatives and senators on the other side of the aisle are business owners. They were taught theoretical economics from a certain perspective in college but never had to see if those theories worked in real life. This came out in many committee hearings when they tried to paper over something that wasn’t working with more of the same thing, just a different twist.

More regulatory burdens on a manufacturer makes it more difficult for a business to start. Bringing a product to market involves a whole bunch of steps a business must take before

making a single sale. Understanding these processes helps me serve my manufacturing constituents, and nonconstituents, better.

Why does the legislature need to take steps to improve the business climate for manufacturers?

Requirements like paid leave and sick and safe time may sound good, but for small businesses and startups they can be devastating. A business might only have the owner and one or two other employees. If they lose a critical employee when they have a big order come in and they can’t fulfill that order, their business could just go under.

On top of that, Minnesota has the second highest business tax rate in the country — only New Jersey taxes companies more. When government takes more off the top, businesses can’t

reinvest as much or increase hiring. And if a business isn’t reinvesting, they aren’t contributing elsewhere to the economy. Cutting into profits through overtaxation is where the economics start to break down.

Surrounding states have far more attractive business climates. If a business owner is looking to start or move into Minnesota, they’re likely going to see the state has the second highest business tax rate. It also has two of the highestcost social mandate programs for businesses: sick and safe time and paid leave requirements.

Business owners can look at surrounding states and see how they have made their business environments much more appealing. And they’re going to say, “We could do half the business in those states and potentially have an even higher profit margin.”

There are states that have very strong economies, and states that have weak economies, and voters need to know that different parties and ideologies are driving those differences. Then they can make the connections between good

policies and who they vote for. These regulations that hinder business could be moderated if more legislators have a better understanding of economics, business operations, and employment.

But for that change to happen, you have to be able to communicate the message in one or two sentences. For example, when talking about moderating paid leave laws, if you can’t explain the positive impact in a sentence or two, it’s hard to win the issue politically.

What can manufacturers do to encourage more balanced state policies?

Manufacturers need to do everything they can to influence their elected officials. They should call, email, and show up to the legislature to talk to their representatives and senators.

They should also make sure they support candidates who understand the issues and who clearly communicate to them that they are going to try to re-level the playing field for businesses and manufacturing in Minnesota. And if those elected representatives don’t support

those changes, manufacturers shouldn’t support them, and they should try to tell at least 10 people that they don’t support business in Minnesota.

Manufacturers thinking about running for office should do it. We need more business owners in the legislature. We need people who have had to make

Manufacturing is the foundation of much of the state’s economy and produces great jobs, but many legislators don’t understand that.

payroll and felt the heat, whether they have one employee or 50 employees. They care about their employees and want them to succeed. They should bring that to the Capitol and sound the message that manufacturing is the backbone of our economy.

LEADERS IN manufacturing manufacturing LENDING

MANUFACTURING OPPORTUNITY

BUILDING AI’S HOME

Why data centers need components, power, and more — and fast.

BY MARY LAHR SCHIER

If you ask Microsoft Copilot, ChatGPT, or any of the other artificial intelligence-driven chatbots, “What are the opportunities and challenges for Minnesota manufacturers in the data center build out?” you’ll get a decent answer. The bot will mention the growing need for components and infrastructure, especially for electrical equipment, cooling systems, enclosures, fabricated metals, sensors, and automation hardware. It will note the growth to the local construction economy and the possibility of innovation in collaborations with tech giants such as Google, Microsoft, Amazon, and Meta. On the challenge side, it will mention concerns about the potential overload of the electrical grid and the shortage of electricians and HVAC technicians.

What it doesn’t mention is the urgency with which data centers are being built and the demands vendor companies may face when working with the hyperscalers, the cloud services providers behind large data center projects. They include companies such as Azure, Google Cloud, and Amazon Web Services. It also won’t mention how much money a manufacturer could make if it found a niche in the world of data centers. The truth is the companies that invested about $300 billion in AI in 2025 alone need components, and they need them yesterday.

“If they need something, it becomes the very first thing that you get done, and you get it to them when they want it,” says Greg Hunsaker, a business growth consultant with Enterprise Minnesota. Hunsaker has worked with companies supplying data centers, including one that met its revenue growth targets three years ahead of schedule solely because of data center projects. “It might mean sacrificing some of your long-term customers who get pushed back to make room for the data center project. But that’s where the money is.”

Why the rush to build data centers?

Data centers have been around for decades. There are about 2,700 of them in the United States today. In the past, data centers simply stored digital data, such as photos and documents, and moved it around as users needed it. They did not require a huge amount of computing power or electricity. New data centers are being built to handle AI — and that vastly increases the power requirements and computing power needed.

The new data centers are large ecosystems made up of 5,000 or so servers, storage devices, networking equipment, and power supplies, all needed to run calculations every second to feed the large language models that run programs like Microsoft Copilot, ChatGPT, and Google Gemini, as well as machine learning systems and other AI applications. Take, for example, the question about data centers and Minnesota manufacturers. To answer it, the large language models did millions, maybe billions, of calculations as they trolled the internet for relevant details on the topic and arranged the words in a digestible manner. Answering that question probably consumed a few drops of water to cool the computers and required less energy than a microwave would need to heat up a donut. It was, however, one of about 10 billion questions AI models wrestled with that day.

The truth is the companies that invested about $300 billion in AI in 2025 alone need components, and they need them yesterday.

According to a McKinsey & Company analysis, a $6.7 trillion investment in data centers worldwide will be needed by 2030 to keep up with the demand for computer power, with 70% of that computing power needed for AI applications.

The systems require security throughout, such as encryption and intrusion protection systems as well as biometric security to ensure only approved workers enter. Managing the heat generated continuously by the computers inside them requires massive HVAC systems.

According to the Federal Reserve Bank of Minneapolis, 12 data center projects have been proposed for Minnesota as of October 2025. So far, only the Rosemount Data Center, an $800 million project by Meta, the parent company of Facebook and Instagram, is under construction. That 715,000-square-foot site is being built on 280 acres at the former site of UMore Park. It’s being built using an artificialintelligence focused design developed by Meta, will be powered entirely by renewable energy, and is likely to create 1,000

construction jobs and 100 permanent jobs. CloudHQ, a global developer of wholesale data centers, is awaiting final city approvals in Chaska for a data center campus that would cover about 1.4 million square feet and require up to 200 megawatts of power.

Overall, Minnesota is a small player in the data center buildout, in part due to a slower permitting process and distance from population centers. As land for building data centers has become less available, though, hyperscalers are looking to the Midwest for new centers. North Dakota has seen five open since 2022.

‘It’s just massive’

Intek Plastics, a Hastings-based manufacturer of extrusion and injection molded products, began supplying data centers when one of its customers was acquired by a large data center integrator, a firm that builds the IT systems inside data centers. Paul Pedersen, vice president of strategy and market development at Intek, can’t say which integrator — confidentiality is a big part of working with data centers and their suppliers — but integrators include companies like Schneider Electric, Vertiv, Eaton, and Legrand. Currently, data centers make up about 10% of Intek’s business, Pedersen says, but the growth potential is huge, and the company is preparing for it.

“Plastics play a small role in the scheme of things,” Pedersen says. “There is so much more spent on the computers themselves and the metal racking and all sorts of other things. But even playing a small role, it’s massive. It’s just massive.”

Intek supplies electrical insulating materials for some of the busbars and racks in data centers. It also provides components for air flow management to assist with cooling. Several innovations in liquid cooling are being developed to manage the large heat load generated by the chips, and Intek has been providing components used in those systems as well. “If you are a flexible company and you can support innovations, you’re going to do very well,” Pedersen says.

Already some Minnesota companies have experienced significant growth due to data center buildouts. For example, in June 2025, Rolls-Royce Solutions announced a $24 million investment to double production at its Mankato plant, which manufactures the company’s mtu Series 4000 generator sets. These are used extensively

in data centers. The company is building a 250,000-square-foot plant in Mankato as part of the expansion.

Elsewhere, States Manufacturing received $2.8 million in state financing from the Minnesota Department of Employment and Economic Development to expand its facilities in Dayton and Champlin. States manufactures power distribution equipment, including large equipment enclosures similar to those used in data centers.

The types of components needed for

According to a McKinsey & Company analysis, a $6.7 trillion investment in data centers worldwide will be needed by 2030 to keep up with the demand for computer power, with 70% of that computing power needed for AI applications.

data centers run the gamut of Minnesota manufacturing, says Hunsaker. During the construction phase, data centers need precast concrete, structural steel, building panels, steel framing, modular walls, metal enclosures, and panels. The servers inside the building require racks, cable trays, and modular enclosures. Data centers include massive amounts of HVAC equipment to keep them cool, including chillers, cooling towers, plate exchangers, pumps, and manifolds. Finally, power is one of the biggest needs of data centers, creating a market for transformer housings, switchgear enclosures, busbars, and cabling trays.

Power problems

Finding and accessing the power to run data centers may be the biggest challenge for hyperscalers. The five data centers built in North Dakota came there in part because of access to abundant and inexpensive energy from wind power generated in the state. The Rosemount Data Center will require around 700 megawatts of power to run its facilities, about the amount needed to power 300,000 to 600,000 homes. Beyond the power itself, data centers need to be close to high-voltage transmission lines and require multiple transformers to deliver the correct voltage. Most data centers also need backup generation within the center to

address any gaps in service.

With the amount of power they need and the speed with which they want it, some hyperscalers are seeking direct access to power by building near existing utilities. Two companies have proposed data center sites in Monticello, home to an Xcel Energy power plant. In southwestern Minnesota, Geronimo Power recently proposed a data center project in Nobles County to use the wind and solar power generated there.

“I think most are going to go the vertically integrated route,” says John Pollock, CEO of Jordan Transformer, a 50-year-old Jordan company that rebuilds transformers and mobile substations, including for hyperscalers on the East Coast. “They’re going to say, ‘I can’t get power from existing places, so I’m going to go get my own.’” As examples, xAI has installed about 35 gas turbine generators outside of its data center in Memphis. Microsoft has made a deal with a Pennsylvania utility to restart the Three Mile Island nuclear reactor to power a nearby data center. Despite issues with the power grid, data centers are attractive customers for utilities, Pollock says.

“Data centers are constantly going, like a casino,” Pollock says. “They’re a steady draw and utilities love that because they can figure out pricing without having to deal with peak and off-peak pricing.”

However, the lead time for building a transformer or substation is currently about four years, much longer than the lead time for building a data center, which has led to a huge backlog in orders and a shortage of parts, Pollock says. Some data centers are using mobile substations to bridge gaps in power. Others are paying more to put their order ahead of others.

“Many cities have asked us to build transformers, but we can’t do them all,” says Pollock. “It’s becoming like toilet paper during COVID. We can design and build them but the lead time for parts has doubled, if not tripled.”

The shortage of parts has led Jordan Transformer to look for suppliers in Europe, though that may require changes in their product design.

‘Don’t mess up’

Working with data center hyperscalers and integrators can be extremely profitable, but landing the opportunity isn’t easy. Hunsaker recommends manufacturers interested in supplying this segment should determine which supply chain node their firm can serve. Is it civil site construction? Structural enclosures? Mechanical cooling? Or somewhere on the

Using AI Agents Well

While there will eventually be many applications for AI, chatbots or AI agents are the most commonly used today. They can supply information fast, cut down the time it takes to do tasks, and help businesses that can’t find employees become more productive with the ones they have, according to Greg Hunsaker, a business growth consultant with Enterprise Minnesota. He offers a few suggestions for new users of AI chat.

• Get the paid version of whichever AI chat you choose to ensure security around your information.

• Prompt the chatbot carefully. Ask clear, specific questions and request that the bot show its sources.

• Validate the information you get from the chat. While AI is getting better, it still produces “work slop” or unreliable information.

• Use text rather than voice to prompt AI because of how obsequious the AI agents are trained to be.

• Finally, remember, AI has only been trained on the internet. If the information you want is not there, it won’t be able to find it. And, it might make something up.

power supply chain? Maybe maintenance and spare parts, which will be an opportunity since the computers in data centers need to be replaced every four or five years.

“One of the biggest barriers to entry is that if they have a supplier, they don’t want to go find another one,” Pedersen says. “Speed of delivery and meeting quality parameters are the most important requirements, with price secondary.” You don’t want to mess up, “because they’ll just find another supplier.”

To become one of those suppliers, Pedersen suggests manufacturers immerse themselves in the world of data centers. There are publications, such as Data Center Frontier, that carry industry specific information on data centers. In addition, several national trade shows are

held each year, including Data Center World in Washington, D.C., the Open Compute Project in California, and SuperComputing, scheduled to be held in Chicago in November 2026.

“The people who supply data centers show off at those shows,” says Pedersen, whose firm is actively seeking more data center work. “They’ll tell you what they are innovating. That’s how you tap into it.

“I would encourage people who haven’t been in it to go to the shows and look for parts that they could make and then start talking about what they are doing to innovate,” Pedersen continues.

On a local level, Hunsaker suggests manufacturers stay up-to-date on state permitting and regulatory changes. They should also attend city council and other public information meetings where data centers are being proposed and connect with the companies building them. “Timing matters,” he says. “You have to get in on it early. Pre-permitting you want to make relationships with the hyperscalers. If they are at the permitting stage and they have a general contractor, then you want to get in front of them.”

Because so many of the components that data centers need involve electrical enclosures, Hunsaker recommends manufacturers obtain UL 50 certification, a standard by Underwriters Laboratory for electrical enclosures in non-hazardous locations. And, be ready to act fast. “The rate of speed they are going with these things is unbelievable,” he says.

Hunsaker and Pedersen both recommend manufacturers begin using AI, if they are not already, to understand the ultimate product and to understand the industry. “If you learn to use AI well, it’s amazing what you can extract about data centers,” Pedersen says.

How long the data center build out will last is uncertain, and there’s no consensus among industry observers. Hunsaker expects that most of the build out will be done in three to five years. For suppliers, the short-term payoff is huge, and it may also lead to an increase in capabilities, which would pay off over the long term.

Pedersen and Pollock see a much longer timeline for the build out of data centers, particularly to bring enough energy online to power them. Use of AI is growing exponentially and new applications are being developed. “I don’t think we’re even scratching the surface of what’s going to be needed,” says Pedersen. “It’s going to be a long while. And, if it isn’t, let’s jump on it now.”

Calling OnYour Peers

Enterprise

Minnesota’s peer councils give manufacturing leaders an outlet for sharing ideas, solving problems, and growing their network.

By Suzy Frisch

Driving down Highway 14 from Rochester to Owatonna for his first Enterprise Minnesota peer council meeting, Mike Jensen didn’t know what to expect. The group was made up of seasoned manufacturing company owners who had been on the council for years. He was the new owner of Gauthier Industries, taking the helm in 2008 in his 30s, and he wondered: Would the group welcome him and be willing to share their wisdom?

Jensen was pleasantly surprised by how open the peer council members were with each other about their companies and experiences as owners. They paired insights with actionable advice that could help other participants operate their businesses better. The candor and trust that the group clearly maintained with each other enticed Jensen to keep coming back, month after month,

Enterprise Minnesota carefully cultivates each peer council of 1012 members to ensure that the businesses are not competitors and that participants have the camaraderie necessary to truly dive into the details.

for 18 years and counting.

“They are all very seasoned manufacturers who have been in business for a long time. It has been a significant benefit for me to hear their stories, experiences, and challenges. Some of the challenges can make or break you and require you to make critical decisions,” Jensen says. Over the years,

he has been both the one seeking advice and one of the people providing counsel. “I went from the young pup in the room to one of the elders.”

The Owatonna-based Professional Business Advisor (PBA) peer council, Enterprise Minnesota’s oldest group, is one of 11 such councils for manufacturing leaders that convene across the state. They each have a different composition — Jensen’s is for company owners — but they share a common structure. Meeting monthly, the peer councils all aim to help manufacturers grow profitably by providing information,

councils bring together leaders working in operations at various manufacturers.

“It’s important to distinguish the peer councils in that way. The people in the room are dealing with the same set of issues,” Haarstad says. “It would be limiting if we had a mix of functions like human resources and sales leaders and operations. The functional leaders are just not able to contribute in the same way as other CEOs would.”

Companies with leaders on multiple councils see additional benefits. Matt Doherty, president and co-owner of

Members of the Monticello peer council, joined by leaders of the Small Business Administration’s Office of Advocacy, toured Spectro Alloys in Rosemount at a recent meeting.

serving as a sounding board, and helping members work through difficulties they face in running their small- and mediumsized manufacturing businesses.

Enterprise Minnesota carefully cultivates each peer council of 10-12 members to ensure that the businesses are not competitors and that participants have the camaraderie necessary to truly dive into the details. The number of participants in each council is capped so members can really get to know each other. It also ensures that participants share common ground by keeping each group focused on specific manufacturing roles, says Steve Haarstad, an Enterprise Minnesota business growth consultant who facilitates a Monticello-based peer council, which is comprised of top executives including CEOs, presidents, general managers, and owners. In addition to executive peer councils, two other peer

Industrial Fabrication Services in Lake Crystal, has been on the PBA council for about three years. Another leader from Industrial Fabrication Services belongs to an operations-focused peer council. They each bring fresh ideas to the company thanks to information gleaned from their respective councils.

Longevity is a key component of the PBA council, which has been gathering since 2002. Many of today’s participants own companies that have had a seat at this peer council table for much of that time. Some are even second-generation participants who took over both their parents’ companies and their peer council membership.

Justin Akkerman, the third-generation owner and president of Akkerman in Brownsdale, had similar trepidations to Jensen when he joined the council. An engineer who joined the company in 2014

and became president and owner in 2020, Akkerman knew that his dad had great relationships with other peer council members. Would they accept him?

“Most of the guys were there for quite a while and they knew my dad, and we’re just different people,” Akkerman says. Turns out his worries were unfounded, and it helped that another next-generation owner joined the peer council around the same time. “It helped that the peer council knew the history of the business of Akkerman. I was very comfortable sharing with the group.”

By fostering long-term membership, participants truly grow to know and understand their peers’ businesses, challenges, and opportunities, says Abbey Hellickson, a business growth consultant

By fostering long-term membership, participants truly grow to know and understand their peers’ businesses, challenges, and opportunities, says Hellickson.

with Enterprise Minnesota who has facilitated the PBA peer council for nearly a decade. This perspective makes their feedback and advice highly actionable.

“It’s all about the relationships and the connections they make with each other. There’s such a high level of trust in that room. People are kind but honest, and they are respectful,” Hellickson says. “They know each other’s businesses inside and out, and they want them to be successful. This group has connectivity and respect for each other, and that’s why they keep coming back.”

How councils work

Each of Enterprise Minnesota’s peer councils follows a similar format. At monthly meetings, groups spend about five hours of formal and informal time together. Sessions typically include a deep dive into a discussion topic, time to connect with members about ongoing challenges, and opportunities for business updates and networking. Facilitators regularly bring in guest speakers to share their expertise, whether that’s about business law, health insurance, or new government regulations. Each quarter, a group either tours one of the member’s facilities or an outside manufacturer’s business.

Councils cover “anything and everything — all the questions that you might have when you’re a business owner,” says Enterprise Minnesota business development consultant Kurt Bear, who serves as the second chair for three peer councils, including the PBA council.

“It’s not out of the question to say that these people act like an advisory board for each other. They have gone on for a long time, and they develop a personal and professional relationship with each other,” says Bear, noting that many peer council members reach out to each other for advice in between meetings, too.

Joe Plunger, CEO of Midwest Metal Products in Winona and chair of the Enterprise Minnesota board of directors, notes that the confidential setting is a huge asset for owners, who often can’t or don’t have internal people to talk to about sensitive topics. “It’s an opportunity to discuss things very openly and frankly with a peer-level group that might be difficult or impossible to discuss within your organization, like how to deal with partnership problems or whether to have a family succession versus an outside succession,” Plunger says. “Those are pretty difficult discussions, but in that forum, you’re safe.”

Mentoring each other

Peer councils’ mix of ages and experience levels is another important aspect of their structure. In many cases, some of the more veteran manufacturers serve as mentors to the younger leaders, while the younger leaders bring fresh ideas.

“We don’t want to see someone go through an unfavorable situation that we’ve been through. What better way to learn than to talk to someone who you know and trust who has been through a crummy deal themselves,” Bear says. “As we go through life, we really have an obligation to mentor others, and we should also be willing to be mentored, and that happens at peer council.”

Doherty of Industrial Fabrication Services likes having a safe space to cover a range of issues with people who understand and might be experiencing the same challenges. “There is a reason why they say it’s lonely at the top,” he says. “Sometimes you have to be careful of who you’re bouncing ideas off or vetting your thinking. This is a great way to do that with people who have some background on your company. They can offer guidance on what they did when they were in that situation. I joke about it, but it’s nice to know that you’re not alone in the struggles you’re having.”

As he was transitioning into ownership of Gauthier, Jensen found it valuable to learn from other leaders on the peer council instead of reflexively staying the course that previous owners took. Though he had been with the business for years and served as the plant manager, it was a different ballgame to become the owner. Jensen gained insight early on into how peer council members conduct due diligence on things like renewing health insurance policies.

“It forced me to go back and say, ‘I need to do things a little bit differently than we did in the past,’” Jensen says. “Some of those things take work. But if you don’t do the due diligence, you might be missing out on an opportunity.”

Solving burning issues

Along with discussing the ins and outs of day-to-day operations, the councils often serve as a vital resource during macro challenges. Whether it was the Great Recession and COVID-19 pandemic or recent struggles with tariffs and supply chains, members share their strategies and guide each other.

Jensen took over as co-owner of Gauthier just before the Great Recession hit and had to lead the company through what he calls the biggest challenge in its history. Having the peer council to rely on then and during the pandemic was essential to navigating these tumultuous times. He especially appreciated learning what other manufacturers were doing to cope.

One topic that comes up often in the PBA council is succession and how current owners are planning to handle transitions as owners move toward retirement. It’s of critical importance to have a confidential setting to raise concerns about who could lead next, the timing of a sale, or requests from a potential buyer, Bear says.

For many participants, a highlight each month occurs when peer councils discuss fast burns. These challenges are the problems that keep leaders up at night — the thorny issues without easy solutions. It can be anything from how to handle a problematic employee to a production or customer issue. Haarstad sees consistent themes covering seven categories, with operations, leadership, and workforce concerns consistently ranking at the top. Other common fast burns involve processes, systems, investments in equipment, and plants’ organization.

By the time participants bring up a fast burn, they often are frustrated and ready to take action, Hellickson says. It helps that the group knows the inner workings of each company, allowing people to give relevant

advice. And the owners do listen.

“They want to do something to get rid of that issue,” Hellickson adds. “Sometimes they want confirmation that the action they are taking is the right one, and sometimes they want advice on what action to take. We have to make sure they feel safe asking these questions, and it’s a judgment-free zone.”

Seeking expert insight

Hellickson shapes the agenda of the PBA council by paying attention to themes that come up repeatedly during fast burns and from questions that members have been asking. Each monthly gathering has a meaty discussion based on an article, book chapter, podcast, or other resource to both educate and get the conversation going. Plunger likes that participants can shape the agenda by bringing up topics that

“I’ve learned that you can’t take it all on yourself,” Akkerman says. “You have to reach out, and there are many good people to help you. Take advantage of that, and don’t think you have to solve everything on your own.”

could help them operate their companies, from cybersecurity and insurance to the latest legislation coming out of St. Paul.

Haarstad has a similar approach. He lines up internal Enterprise Minnesota experts or outside resources to speak to the group about issues that come up during monthly meetings. At the Monticello-based CEO peer council, recent speakers have covered leadership development, human resources, new state mandates covering sick time and paid leave, and tax strategies. When speakers visit with peer councils, participants gain access to an array of expertise that would likely be out of reach for most small manufacturers. It would be a stretch for a small- to medium-sized company to afford such wide-ranging advice in one year from lawyers, bankers, insurers, benefits professionals, and more, Plunger says.

“For many people involved in that size of business, our resources are limited to engage with somebody who might have

those kinds of experiences or insights,” Plunger says. “For what I think is a reasonable yearly cost, we have a dozen sessions with people who can provide us really valuable information. They give feedback on questions we have and cover subjects we might not have broached at all without exposure to this group.”

Unmatched networking

In addition to serving as resources and sounding boards for each other, peer council members often help in other ways. Someone might inform the group that an equipment provider is especially hungry right now, while another member might explain how a vendor saved them a significant amount of money, Jensen says.

Plunger agrees that advice he receives from peer council members contributes to his company’s success. “I have found incredible value in the insights of the people from outside my organization with respect to things I’m dealing with,” he says. “I’ve gotten lots of great advice and good ideas and I’ve been made aware of things I otherwise simply would not have run across in my normal day-today activities. I’ve made confidants and friends. Even outside of peer council meetings we lean on each other with questions and in some cases, we end up doing business together.”

Seeing these connections extend outside of peer council meetings is something Haarstad has noticed during his tenure leading the groups. “As a natural extension, people start to build trust in one another and form relationships,” he says. “It commonly becomes business connections where this member becomes a supplier to that member, or this member becomes a customer to that member. It also can become a good referral source.”

Akkerman does business with several of his fellow peer council members. Knowing other owners and their operations so well provides Akkerman with a level of comfort and pre-existing vetting. “I know their business and their quality of work, so why not do business with them?” he says.

When the company is getting ready to make a change, for example with wages, benefits, or procedures, Akkerman likes surveying peer council members to check his company’s plans against others’ opera tions. “I’ve learned that you can’t take it all on yourself,” he says. “You have to reach out, and there are many good people to help you. Take advantage of that, and don’t think you have to solve everything on your own.”

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Glancing Back, Looking Ahead

Enterprise Minnesota

President Bob Kill reflects on nearly two decades of leading the organization that helps manufacturers improve operations and works to connect and elevate the manufacturing community.

Bob Kill, president of Enterprise Minnesota for the last 18 years, suspects the late Rudy Perpich wouldn’t recognize the offspring of the lottery-funded agency the former governor created to support rural Minnesota businesses. Today’s Enterprise Minnesota, a lean and focused organization that helps manufacturers improve specific areas of operation to grow profitably, grew from the remnants of the Greater Minnesota Corporation, shuttered in the wake of scandal in the late 1980s.

Originally called Minnesota Technology and then rebranded as Enterprise Minnesota, the early years presented a turnaround challenge for the ages as the agency lost funding and drastically cut staff. The organization pivoted by both narrowing its focus to manufacturing companies and broadening its geographic reach to include the Twin Cities Metro area.

I don’t think we knew how much impact the [State of Manufacturing®] survey would have, and how important it would become over the years. It really has exceeded our expectations.

cal colleges, policymakers, economic development organizations, and professionals such as CPAs and attorneys.

As he prepares to hand over leadership of Enterprise Minnesota to its second president, Kill took some time to reflect on the organization, manufacturing’s importance to Minnesota, and his hopes for its future.

What were the first steps in the transformation of Enterprise Minnesota when you took over as president?

Kill: We needed to change our image and increase

visibility. One of the first things we did was change the name, “Minnesota Technology.” Tom Mason [long-time Enterprise Minnesota magazine editor and consultant to the organization] said we needed to blow up the name Minnesota Technology. I was only a board member at that time, but that’s what we did.

Kill is quick to give credit to others for Enterprise Minnesota’s revival, noting that three of the organization’s leaders — John Connelly, Lynn Shelton, and Pat Vasatka — were already on staff and working on the rebirth when he arrived. Still, he led the charge. Early on, he knew that Enterprise Minnesota shouldn’t limit its role to providing top notch consulting services, though that was a top priority. He also wanted Enterprise Minnesota to increase manufacturing’s visibility and to connect manufacturers with each other and with what he calls the “manufacturing ecosystem,” including community and techni-

The State of Manufacturing® survey [Enterprise Minnesota’s annual survey of the state’s manufacturing industry, highlighting the trends, conditions, and outlook of executives from around the state] was important early on because it was designed to build a wider recognition, understanding, and support for the value of manufacturing to the state. Most people outside of manufacturing didn’t recognize it as the job creator that it is. That was really the goal — to shine a light on manufacturing. Secondarily, it was to position us as the voice that helps bring visibility to manufacturing and to connect manufacturers with each other and those organizations that support them.

I don’t think we knew how much impact the

survey would have, and how important it would become over the years. It really has exceeded our expectations. Right away we realized that people wanted to come to the event, and manufacturers wanted to be heard in focus groups.

Why did manufacturing warrant a separate survey?

People don’t know as much about manufacturing as they think they do. They don’t understand the economic value of it. Minnesota has about 7,300 manufacturers; 50% of them have fewer than 10 employees, 85% have under 50.

that confront manufacturers every year, it implicitly reveals the real value of manufacturing.

How has the survey maintained such a strong reputation through 17 years? How does it not get old?

A big part of that is that we just keep improving it. We realized early on that regionalizing the data increased its value. Our pollster oversamples in the six regions covered by the Minnesota Initiative Foundations [six independent regional foundations established by the McKnight Foundation to strengthen economies and

Fourteen percent of the wages in Minnesota come from manufacturing. The industry pays an average of almost $79,000 a year, well above the statewide average.

Manufacturing doesn’t just provide good jobs. It creates very positive ripple effects across the economy. The National Association of Manufacturers estimates that every dollar spent in manufacturing generates another $2.70 in economic activity.

Those facts aren’t widely known. Even now, when I present them, I watch people scribble them down because they’ve never heard them before.

Manufacturers tend to disappear into their nondescript buildings scattered across the state, but what they’re doing is critical to us all. So, when the survey shows the challenges and opportunities

communities across Greater Minnesota] so we can see how manufacturers’ concerns break down along geographic lines.

That gave us richer data, and it also enabled us to attract stronger partners. We quickly found that the majority of the Initiative Foundations wanted to partner with us, and they have been with us for years.

We also track trends over time, which is enormously valuable. You can now look back over 17 years of data, with regional breakouts. People look forward to seeing how national and global events have affected some sectors of manufacturing and not others because different industries cluster in different parts of the state. This year, for example, you could see how tariffs impacted some areas, and barely touched others.

A big reason the State of Manufacturing

has retained — and grown — its credibility is that we hold strict standards. This is not a fly-by-night phone-in poll. From the beginning, we’ve worked with Rob Autry, whose firm Meeting Street Insights, based in Charleston, S.C., is among the nation’s top pollsters. He’s been with us the whole time. He and his team are meticulous about reaching a statistically accurate cross-section of manufacturers.

And it won’t surprise anyone that a survey comes with a hefty price tag — far beyond anything we could underwrite on our own. That’s why we’re so grateful to the many sponsors who have been with us for the long haul. And we get way more than their money. Our sponsors interact with manufacturers at our rollout events and play a significant role in shaping the questionnaire each year, which keeps it relevant.

How has the survey helped build connections among manufacturers and between manufacturers and the organizations and professionals that support their companies?

The in-person events — a big data release in November, the regional rollouts, and the focus groups — bring manufacturers together in a way nothing else really does.

You can now look back over 17 years of data, with regional breakouts. People look forward to seeing how national and global events have affected some sectors of manufacturing and not others because different industries cluster in different parts of the state.

These events have been critical to building a community of manufacturers. We realized early on the value of giving manufacturers the space to actually talk to each other.

Manufacturers now look forward to these events as a chance to reconnect and make new connections. There’s real energy in the room. Two manufacturers might strike up a conversation and discover that one makes a part the other

needs. Or one has experience taking over a family business and can share that insight. Another might meet an economic development professional who has a grant that turns out to be a good fit.

Manufacturers also seem to enjoy participating in our focus groups. We usually have six each year in different parts of the state. They are confidential, and their comments are reported anonymously, but I’m still amazed at how candid the participants are with each other. It gives them a clearer sense of what others in manufacturing are concerned about — and how they’re handling the same challenges.

How has the consulting side of Enterprise Minnesota changed over time?

Originally — back under the Greater Minnesota Corporation — consulting was offered at no cost to clients. The organization was already transitioning to a feebased model before I got here, based on the belief that companies need some skin in the game. I give credit to the people who started that transition by initiating those first steps when it was called Minnesota Technology.

Some of the employees left because they didn’t like the move from free to fee-based services. And around that time, they became an MEP center, which provided some federal funds. [MEP, the Manufacturing Extension Partnership, is a national program that helps small- and medium-sized manufacturers access customized services, expertise, and resources to help them improve productivity, grow, and innovate.]

When I arrived, our services were pretty basic. We focused mostly on continuous improvement — value-stream mapping, 5S — and had one employee who specialized in helping companies get ISO certified.

Since then, we’ve added a wide range of services, including strategy and revenue growth, and we launched our peer councils. But I think the most important improvement isn’t in what we offer but how all of our consulting is based on an appreciation for people. Early on, lean and continuous improvement were treated as tools. They are much more than that, and it’s not just about cutting costs. They represent a culture shift. They’re more about making organizational resiliency a core part of profitable growth.

Manufacturers can talk about new revenue and new customers, solid metrics, continuous improvement, and lean principles — but what’s critical is engaging

Bob Kill: Career at a Glance

Childhood: Raised on a farm outside of Morris, Minn. “My dad was an entrepreneur. My mother was the general manager. We were the typical farm family of six kids, whatever typical means.”

First job: His family’s Dairy Queen in fifth, sixth and seventh grades. “That was one of my mother’s ventures. When I look back on it today, I realize that I actually learned a lot about customer service and how to run a business. My mother eked more money out of that business than you can imagine. She was very process driven.”

Education: Economics major at the University of Minnesota, Morris campus. “On the farm I was always building something, and I always thought I would be an architect, right up until late in high school when my dad had a serious farm accident. After that I stayed in Morris for college because my two older siblings were already out of the house.”

First professional jobs: Burroughs Corporation and Northern Telecom. “I worked in sales, marketing, and management roles in my first two jobs out of college. Burroughs is now Unisys, and Northern Telecom dissolved. I learned a lot about management and sales through both jobs.”

Company owner: Ciprico. “When I was at Northern Telecom, two guys had started a little company called Computer Products, and one of their key customers was a division of Burroughs Corporation where I had worked. They asked me to help them with that connection and then asked if I wanted to join them. We rebranded to Ciprico and were at the advent of the transition to digital. Our main industries were defense and the broadcast and production business.”

Enterprise Minnesota: Board Member, President. “Ciprico needed to get ISO certified for Sony, and one of the people at then-Minnesota Technology helped us a lot with that, even though we were in the Twin Cities, and they weren’t really working with companies here. Ciprico was named technology company of the year by Minnesota Technology and around 2005 I joined the board of directors. Around that time, we released the president, so I took over as a consultant for about 6 months before I became an employee in August 2007.”

people. Lean was designed so that the person closest to a problem becomes part of the solution. That means everything we do has to be about culture.

Does the State of Manufacturing survey help shape the specific consulting services offered?

Our focus groups always ask what manufacturers should be doing. So, if manufacturers are looking for new suppli-

ers, we’ll ask what those suppliers need to do to get their business. We share that information with our clients, and our consultants can offer services that help them meet those requirements.

Training is a good example. As an organization, we’ve shifted from training to skills development. Training is individual, and every company has some of it. But we focus on skills development — showing manufacturers how to help their employ-

ees build capabilities that help make the whole operation better.

And when we bring lean into an organization, we emphasize problem-solving skills. Employees learn how to approach a situation with a different mindset. They aren’t just learning to repeat the same tasks more efficiently; they’re learning how to think differently about the work.

You often praise the relationship between the technical and community colleges and manufacturers but point out it hasn’t always been that rosy. Did Enterprise Minnesota play a role in connecting them?

Twenty years ago, people who should have known better were saying manufacturing was dying. Technical colleges were worried about whether they could even keep their manufacturing programs alive. The assumption was that everything was going overseas, and that kind of talk hit the colleges hard. Many of those programs were barely hanging on.

Twenty years ago, people who should have known better were saying manufacturing was dying… Then two things changed the conversation. Politicians started talking about the importance of manufacturing and bringing manufacturing back to the U.S. And parents started to realize that fouryear degrees weren’t necessarily getting their kids out of the basement.

Then two things changed the conversation. Politicians started talking about the importance of manufacturing and bringing manufacturing back to the U.S. And parents started to realize that four-year degrees weren’t necessarily getting their kids out of the basement.

I like to think we played a small part in bringing the colleges and manufacturers together in Minnesota and helping them see they needed to work together to educate the next generation of employees and help the industry grow. The State of Manufacturing® survey brought visibility to the colleges because they sponsored events and hosted focus groups.

realizing that their local technical college gives young people a better chance of staying close to home, employed in rewarding, well-paying careers with real, long-term potential.

It also matters that we’ve had some great technical college presidents along the way, and that’s made a big difference. We win new friends one at a time, and not everyone has patience for that. But these presidents are good at building connections, listening to manufacturers and what they need, and it’s paying off.

At that same time, technical colleges and manufacturers seemed to be talking past one another. The colleges would say that manufacturers didn’t appreciate them, and manufacturers would say that the colleges weren’t providing the training they needed.

The situation today is completely different. Because technical colleges now work closely with their manufacturers, they’ve built stronger curricula and their students and graduates are landing good manufacturing jobs.

Communities, including parents — and now high school teachers and counselors — have started to embrace it, too. They’re

There seems to be a growing positive feeling about manufacturing jobs. What’s behind that trend?

Manufacturers have lived through several swings. Right now we’re in the middle of a surge in manufacturing investment and a growing awareness that manufacturing jobs are good jobs.

Part of that is a shift in how people perceive manufacturing jobs. For a long time manufacturing was considered boring,

repetitive, and dangerous. People pictured poorly lit, dirty buildings where employees sat at the same machines and made the same parts until they retired.

I think we have played a part in dispelling this myth in Minnesota by shining a light on what really happens inside these facilities. Manufacturers have worked with us to host hundreds of tours for elected officials and community leaders, and they are always very willing to be featured in this magazine. They want to show that they operate clean, well-lit, and modern facilities.

Another important change is that manufacturers are giving their employees more and more authority to assess situations and solve problems. Leaders are realizing that when they empower their workers, their businesses operate more efficiently and profitably. For employees, the opportunity to tackle those new challenges each day makes their jobs exciting and meaningful.

I always say that a good company is one that employees brag about at family gatherings. That happens at a lot of our manufacturing companies — and they end up hiring a lot of family members because of it.

young person, someone who looks around and says, this isn’t what my grandpa told me about manufacturing.

Employees will start realizing that when new technology is introduced thoughtfully, they will find opportunities to grow and get better within their organization.

And to take this back to the topic of technical education, I think that shift is drifting down into middle and high schools.

We have a number of new high schools in the state where local manufacturers played a big part in designing the new building. The first one was in Alexandria, about 11 years ago. You can’t get through

And finally, people are beginning to understand that the first job in manufacturing doesn’t have to be the end of the journey. When manufacturers hire a young person who is really good at it, they want to keep that person energized, so they give them more responsibility or help pay for additional classes. Employees understand that there is opportunity to grow.

I have to say, if I were 40 and lost my job in an office today, I would think about what I could study at a technical college so I could get back into the workforce — in manufacturing.

How will technology impact the future of manufacturing jobs?

Manufacturers realize that automation keeps workers longer. It doesn’t replace people; it replaces repetitive or unsafe tasks. Yes, there are jobs that you may not need anymore. But in manufacturing, automation is attracting a new breed of

the front door without seeing the advanced manufacturing area. And they promised to keep it current by updating the equipment every two years.

There are now similar new high schools. It’s taken time, but everyone is working together because they understand that the technology needs to be current, and instructors need to understand not just how a machine works, but how it solves problems.

What do you think the future holds for Minnesota manufacturers?

There was a time when manufacturers could just make things. Today, running a manufacturing business is more exciting — and a lot more complex. They don’t just make products anymore. Competition is everywhere: They have to be marketers and leaders. They have to embrace technology.

But I also think there’s less fear among manufacturers today than there was 20

years ago. We build quality products here. The reputation of U.S. manufacturing is sterling, especially in the Midwest. There’s an appreciation for it. I think manufacturing’s in a better position today than it was two decades ago.

Back when people were saying manufacturing was going to leave the U.S., we didn’t distinguish low-volume precision parts from high volume, non-value add parts. We just lumped all manufacturing together. And things went overseas that shouldn’t have. Today, we’re much more thoughtful about that. When it comes to low-volume, high-precision work, we want to make those parts closer to home.

There was a time when manufacturers could just make things. Today, running a manufacturing business is more exciting — and a lot more complex. They don’t just make products anymore. Competition is everywhere: They have to be marketers and leaders. They have to embrace technology.

We’re starting to think about how to manufacture locally because if something goes wrong, you can control it better when it’s a few hours’, or even a two-day, drive away, rather than a flight halfway around the world. That’s a different kind of manufacturing, and there’s a lot about it that attracts young, smart people.

The younger people we have in our peer councils are dynamic executives, and I think they’re going to be very successful. They’re willing to try things that the generation before them maybe wasn’t.

Minnesotans are sometimes reluctant to say when something’s successful. But in this case, the State of Manufacturing and the magazine have helped manufacturers realize that there’s a lot of interest in what they do. I think it’s brought some pride back to manufacturing and it will be stronger in the future because of that.

EMPLOYEE EDGE

Game-Changing TALENT STRATEGIES

Manufacturers who help employees reach and remain in the Productivity Zone and fill the leadership pipeline rise above the competition.

BY ABBEY HELLICKSON

Ioften begin sessions with manufacturers by asking a simple question: Who executes your business strategy? It’s the kind of question that seems almost too obvious, but it reveals something important. Strategies don’t execute themselves. Processes, equipment, and technology don’t execute strategies either. People do. The individuals inside your walls are the ones translating ideas into action, goals into results, and strategies into reality.

That’s why talent management and leadership development aren’t simply HR activities. They are strategic levers, and arguably the most powerful ones that manufacturers can control in an uncertain environment.

I share this message with urgency because companies that manage talent well gain a substantial competitive advantage. Not marginal, not incremental — substantial. A McKinsey study shows that companies with effective people strategies are 2.2 times more likely to outperform their peers. When I share that number, I usually hear a collective exhale. It’s a reminder that developing people isn’t just a nice thing to do for employees; it’s essential.

People drive strategy

I’m encouraged by how many manufacturers I talk to who have a formal strategic plan. They’ve defined where they want to go, the markets they want to serve, and the growth they expect to achieve. But something interesting happens whenever I ask if they review their job descriptions whenever they update their strategic plans.

That’s when the room gets quiet.

The truth is, many organizations update their strategy annually but continue operating with job expectations that were written five or 10 years ago. The business has evolved — sometimes dramatically — while the expectations for employees have stayed the same.

If the strategy evolves but the roles don’t, misalignment is inevitable. Leaders feel frustrated that the workforce isn’t quite keeping pace. Employees feel unclear about what success looks like. And organizations experience gaps that seem like talent shortages but are often simply communication or development shortfalls.

I encourage companies to look at talent management the same way they look at

their business management: an ongoing process. Recruitment is just the entry point. What truly matters is whether employees are supported, developed, and positioned to succeed once they arrive. That means thinking about the entire employee lifecycle — from how you attract people, to how you onboard them, to how you keep them engaged and productive, to how you capture knowledge when they eventually transition out.

The first step is to clearly define your employment brand and hire people who fit your organizational culture. It all starts with the recruitment process; consider the experience people have, from an applicant perspective, when they’re interacting with your company. Your talent management starts here.

Organizations experience gaps that seem like talent shortages but are often simply communication or development shortfalls.

Then once you’ve hired them, you need to be able to onboard them and ensure that they are productive in the organization. When you find people who fit your values and fit well in your organization, you have to work intentionally to ensure their skills continue to evolve and match your company’s needs.

The longer you retain someone, the more you need to invest in their development. The knowledge, skills, and abilities your company needs today are not necessarily the knowledge, skills, and abilities it will need tomorrow. Employees’ skills will need to adapt. Remember, they’re the ones driving and executing the business strategy.

The

Productivity Zone: Where employees — and companies — gain momentum

There’s a point in every employee’s journey when things start to click. They’re confident. They know the processes. They understand expectations. They solve problems effectively. They contribute meaningful value. I call that place the

Productivity Zone.

The longer manufacturers can keep employees in that zone, the more value they create — not just through output, but through initiative, insight, and consistency. But here’s the part many companies overlook: People don’t stay in the Productivity Zone on their own. If we allow their roles, expectations, or skills to stagnate, the zone starts to shrink.

The reason is simple. The skills that made an employee successful yesterday won’t always be the skills the organization needs tomorrow. Technology changes. Customer demands evolve. Quality expectations shift. Processes improve. And the business strategy continues to move forward. Development isn’t a perk; it’s the engine that keeps employees aligned with where the company is going.

But talent management isn’t just about preparing people for what’s ahead; it’s also about preserving what’s already been built. I once asked a group to consider how much tribal knowledge existed inside their organizations — those unwritten, often hidden insights that only long-tenured employees understand. Nearly every head in the room nodded. They knew exactly what I meant. And they also knew how vulnerable that made them.

When employees leave — and they all leave at some point, whether through retirement, career transitions, or personal

Talent Management Life Cycle

changes — companies lose more than a person. They risk losing knowledge that was never captured.

Maximizing employee time in the Productivity Zone and capturing employee knowledge consistently both depend on developing leaders who can manage the evolving needs of the organization and support the growth of their teams.

That brings me to one of the most powerful frameworks I share with manufacturers: the leadership pipeline.

Filling the leadership pipeline

The leadership pipeline provides a structured way to think about how people grow inside an organization. It breaks down leadership into five primary levels: leading yourself, leading others, leading a function, leading the business, and leading the enterprise.

Not every manufacturing company uses these exact five levels, and that’s perfectly fine. Smaller organizations may combine levels or operate with fewer distinctions, and larger organizations may have additional levels.

The value of the pipeline isn’t in the number of rungs; it’s in understanding the transitions between them. Those transitions are where most leadership challenges occur — and where development is most essential.

Transition 1:

From buddy to boss

This shift — often called the “buddy to boss” moment — is the transition I see most frequently in manufacturing, and it is arguably the hardest. Up until this point, success was based on individual performance. Now, for the first time, success depends on the performance of others.

Frontline supervisors must still manage some of their own work, but they must also plan, assign, coach, develop, and hold people accountable. They must begin valuing leadership work over technical work. They must navigate relationships that

may have previously been purely social. And they must figure out how to balance doing and leading — something that can feel unsettling when every skill that got them here was rooted in the doing.

Without support, many new supervisors lean heavily on what they know best: the technical tasks. But when supervisors spend too much time doing rather than leading, they unintentionally deprive their employees of opportunities to grow. They also exhaust themselves, because leading requires time — to think, observe, communicate, and coach.

This transition sets the tone for every leadership move that follows.

Transition 2:

From leading others to leading a function

When leaders move into department-level roles, the nature of their responsibilities shifts dramatically. They become responsible for shaping a function — HR, finance, sales, engineering, operations — rather than a single team. Their decisions now impact the organization more broadly.

This level requires a deeper understanding of how goals align with company strategy. It demands fluency with performance metrics. It requires the ability to select future leaders — because frontline supervisors often determine the company’s long-term leadership health. And it depends on cross-functional collaboration, because departments cannot function in isolation.

Leaders at this stage must learn to value managerial work. They must resist the urge to drop back into tactical tasks just because they’re comfortable. When leaders drop down, they inadvertently create silos and slow the development of the people behind them.

Transition 3:

From functional manager to business leader

At this level, leaders begin thinking in terms of the entire organization, not just one area. They must elevate their perspective

from departmental performance to overall business performance. This means balancing short-term needs with long-term strategy, understanding the external environment, and recognizing that every decision affects the organization as a whole.

Leaders at this level often face a challenge they don’t expect: letting go of the bias toward the function they grew up in. Whether someone came from operations, engineering, sales, or finance, it can be hard to step back and value all areas equally. But it’s essential. Without that shift, the organization becomes siloed and disconnected.

If strategy evolves but the roles don’t, misalignment is inevitable.

The success of a business leadership team depends heavily on how well its members work together. Collaboration, communication, and shared respect are the glue that holds senior leaders together. When this group functions well, the organization feels it. When it doesn’t, everyone feels it.

Transition 4:

From business leader to enterprise leader

This final transition carries the greatest weight. CEOs, presidents, owners — those at the enterprise level — are responsible for setting the vision, shaping the culture, and inspiring the entire organization. Their decisions guide performance across every level. Their leadership determines whether the organization drifts or moves forward with intention.

Enterprise leaders must know which levers drive performance, and they must build a senior leadership team capable of pulling those levers effectively. They must balance internal and external responsibilities, remain visible and accessible, and model the behaviors that define their company’s identity.

And perhaps most importantly, they must have the patience to value slow, evolutionary progress. Long-term results rarely happen overnight. They come from consistent steps taken over time, guided by clarity and conviction.

When leaders at all levels understand the expectations of their role — and when they are supported in making these transitions successfully — the organization gains strength, agility, and momentum.

Leadership development is a system

Once companies understand the leadership pipeline, the next step is thinking about how to develop leaders intentionally. Many organizations promote people and hope they “figure it out.” Others send employees to a training session, check the box, and assume the job is done.

Leadership development doesn’t stick without structure. And it must be woven into the organization — not added on top of it.

A strong system begins with clarity about what leadership looks like at each level. Every organization needs to define the competencies it values. Whether it’s communication, collaboration, composure, business acumen, or financial fluency, those expectations should be visible, consistent, and meaningful.

Once those competencies are defined, leaders can begin assessing where people currently stand. That might involve a skills matrix, a gap assessment, or 360-degree feedback. It might include manager feedback or self-reflection. Whatever the method, the goal is the same: understand the current state, define the future state, and

identify the gap. Only then can development become intentional.

Development doesn’t have to be formal or expensive. It can happen through stretch assignments, mentoring, coaching conversations, or opportunities to lead a project. What matters is that leadership development becomes part of the day-to-day reality

The

that made an employee successful yesterday won’t always be the skills the organization needs tomorrow.

of the workplace — not something abstract or occasional.

Organizations that excel at leadership development build systems that support leaders, reinforce expectations, and provide opportunities to grow. And when that happens, everything flows more smoothly: the leadership pipeline, employee reten-

tion, and the company’s ability to execute its strategy.

One small step in the next 30 days

I always end my sessions with a simple invitation: What’s one thing you can do in the next 30 days to strengthen leadership in your organization? It doesn’t need to be monumental. Big results often start with small steps.

Maybe it’s reviewing one job description. Or having a conversation with a promising employee. Or thinking more intentionally about how your supervisors are being supported. Every small improvement contributes to the long-term health of your organization.

The manufacturers I meet with across Minnesota are committed, creative, and resilient. They want to build strong companies, and they want to take care of their people. When those two goals align through intentional talent management and leadership development, organizations thrive.

Your future leaders are already inside your building. Make sure your systems are ready to help them grow.

FUTURE FOCUS

Finding the RIGHT EXIT

BY KATE PETERSON

Proper planning helps owners sell their companies and enter fulfilling next chapters while ensuring their businesses and employees continue to thrive.

Every day, business owners across Minnesota wake up and go to work, focused on the immediate challenges of running their companies. They’re leading employees, managing supply chains, meeting customer demands, and troubleshooting equipment issues. What many aren’t doing — but should be — is preparing for the sale of their company.

More than half of all privately held businesses in America now have owners over age 55, according to the U.S. Census Bureau; many of those owners will be ready to retire in the next 10 years. Harvard Business School says this “silver tsunami” of ownership change could have a huge impact on the economy because many owners have no succession plan.

“Their primary reason for not preparing a formal exit strategy is that they are consumed by other aspects of the business.”

Steve Haarstad, an Enterprise Minnesota business growth consultant who has earned the Exit Planning Institute (EPI) Certified Exit Planning Advisor designation, says two dynamics are behind the lack of planning: time and trepidation.

“Their primary reason for not preparing a formal exit strategy is that they are consumed by other aspects of the business. They don’t feel like they have time. The other issue is a little bit of fear about what they will do and be after they sell their company,” Haarstad says.

That reluctance has broad implications. With a significant portion of business wealth concentrated in the hands of baby boomer owners, many companies — and their employees and communities — face an uncertain future.

The EPI estimates that approximately 50% of business transitions occur because of unforeseen events, including death, divorce, and disability. Without proper planning, these sudden transitions can devastate both the value of the business and the financial security of the owner.

But with the right approach and sufficient lead time, business owners can create successful transitions that preserve their companies’ legacies, protect their employees, and secure their financial futures.

First steps

For many business owners, the biggest obstacle to exit planning is not knowing where to start. The process can feel overwhelming, especially for those heavily involved in managing daily operations.

Doug and Jenny Leaser, both 55, operate Minnesota Waterjet, a Ramsey-based waterjet cutting company that uses an ultra-high-pressure stream of water to cut through nearly any material, producing precision parts. It’s the classic Minnesota manufacturing success story.

Doug brought hands-on experience from working on the production floor at another waterjet cutting company when they started their firm in 2003. Neither had any formal training managing a business; Jenny handled most of the office work and they learned as they went. Today, Minnesota Waterjet employs 18 people and operates out of a state-of-the-art facility.

“You’re kind of fumbling along, learning things, and the years go by,” Jenny says. “All of a sudden one day you think, ‘How much longer are we going to do this?’”

An announcement about an Enterprise Minnesota seminar on exit planning crossed their radar at just the right time. With some persistence from Jenny, they attended the seminar and later approached Haarstad to help guide their succession planning.

He walked them through the “threelegged stool” of exit planning: business planning, personal planning, and personal financial planning. “Steve gave us a road map,” Jenny says. “It was a place to start, and it gave us an idea of what we needed to be thinking about.”

The first step for any business owner, Haarstad says, is a mindset shift. “Almost like Alcoholics Anonymous, the first step is admitting you have a problem — recognizing that you need to get serious about planning,” he says.

Next, business owners should start educating themselves. This includes having conversations with advisors and other business owners, attending workshops, and reading books and articles. “Exit planning is a team sport,” Haarstad says. “There’s

not one person or one advisor out there who knows all the answers and can help an owner with every aspect of planning. You need support from a good financial planner, a good attorney, and a good CPA — just at the basic level.”

Business planning: Boosting value

While all components of the three-legged stool are both intense and indispensable, the business leg often takes the most time. And getting it right helps owners maximize sale price.

“The business side — getting it ready, understanding the drivers, and building it into an attractive buy — was the most difficult,” says Mary Jo Harris. She and her husband Tim built Harris Hardwoods into a thriving manufacturer of hardwood cabinet components, mouldings, edge-glued panels, and specialty millwork for the kitchen and bath industry.

The exit process took the Harrises

Steve Haarstad, business growth consultant, Enterprise Minnesota

approximately five years, from initial planning to final sale. They assessed their business operations and worked to ensure revenue was strong and consistent. They developed plans for future sales and identified key employees and put retention bonuses in place so they would stay with the company during and after the transition.

“Once we had a process laid out in front of us and we could follow through these steps, that was a relief. We had a plan and

we just had to follow the steps,” says Harris. Despite the demands on her time, Harris committed to the process, which ended with the successful sale of the company. She was particularly pleased that the process led to a buyer who would keep the business in Foreston and retain its employees.

One of the ironies of exit planning is that many business owners put it off because they don’t feel they can spare the time. “The truth is that good exit planning, especially business planning, increases value and improves operations as much or more than any other business-related exercise,” Haarstad says.

He lists the actions companies can take to improve business operations and boost their potential sale price.

“The truth is that good exit planning, especially business planning, increases value and improves operations as much or more than any other business-related exercise,” Haarstad says.

Clean financials. Financial records should be organized according to generally accepted accounting principles so they’re easily understood by outsiders. Remove personal expenses that have been run through the business. It’s normal for the business to pay for a phone, insurance, or a company vehicle. Prospective buyers who see questionable expenses like vacations, personal property, or event tickets, as examples, start discounting the price or walking away entirely, Haarstad says.

Strong cash flow history. Demonstrate that the business consistently generates money. This provides tangible value for prospective buyers and proves the business model works. Companies with inconsistent revenue or excessive expenses should work over time to develop steady cash flow.

Leadership depth. An owner doesn’t need to be completely hands-off, but the business should operate well with the leaders who will remain after the sale. Help managers become strong leaders and good decision makers when the owner is away.

Documented processes and systems. Companies should have reliable, documented processes rather than running on tribal knowledge — the information locked in people’s heads. “If a key employee wins

the lottery and leaves, well-documented processes will enable you to train someone else relatively quickly to follow established procedures,” Haarstad says.

Certifications and standards. Consider seeking certifications like ISO that make the business more attractive to buyers. ISO certification helps position the business for sale and improves internal operations, as Brent Cochran, owner of R/C Machining Company, Inc. in Glenwood, learned.

“One of the first things we tackled was making the business attractive to a potential buyer,” he says. “We didn’t really have any customers asking for ISO 9001 at the time, but it turned out to be a real benefit to the way we operate internally too.”

Personal planning: Running toward something

Business owners often find the personal components of exit planning can prove to be revelatory — and sensitive.

“It was uncomfortable,” Jenny Leaser says. Haarstad asked the couple to prioritize their values and think about their future goals, including their desired lifestyle after the sale, which they hadn’t discussed in detail and didn’t necessarily agree on. “It was good to get it out there because we have always talked about this but would always wind up lost in the weeds,” she says.

Haarstad nudges owners to articulate concrete plans rather than vague notions of travel or hobbies. “It is good to identify and recognize some hobbies — picking up your guitar again or working on cars in your shop,” he says, but adds that in many cases boredom quickly sets in.

Studies show that approximately 70-75% of sellers experience seller’s remorse after exiting their businesses. “They found themselves lost, with nothing to run toward,” Haarstad explains. “They realized how much of their identity came from owning and running that business.”

More thorough personal planning can help owners avoid that outcome. It might involve exploring other options such as starting or working with a nonprofit organization, beginning a retirement career in consulting or coaching, or launching a dream business. The key is having a plan that provides purpose and direction.

R/C Machining’s Cochran plans to spend more time playing in local bands. He plays guitar, piano, and sings in several groups now but would like to devote more time to it. He also thinks he might like to continue working, possibly on a part-time basis, for the new owners of his company.

Haarstad suggests including spouses or

significant others in these conversations. He recommended that the Leasers schedule quarterly spousal retreats — booking a short getaway somewhere and going through an agenda related to their exit plan — away from phones and work distractions.

“Having those moments when it’s just the two of us without other things going on is very good. It is amazing the things you can talk about,” Jenny Leaser says.

A personal plan will help owners find something to run toward, decreasing the odds of experiencing remorse after selling their business. It also helps inform the personal financial planning portion of the strategy, giving a clearer view of the resources needed to support their future.

Personal financial planning: Closing the wealth gap

Owners who have mapped out a vision of their post-sale lives are better equipped to forecast their future cost of living, Haarstad says. Knowing those financial needs, they can determine what the business sale price must be to support that lifestyle.

“Financial planning helps owners identify their ‘wealth gap,’” Haarstad says.

Consider an owner who needs $5 million in total investments to fund retirement. If today he only has $1 million in investments outside the business, the exit planning strategy will aim to close that $4 million gap.

This calculation then informs the valuation target of the business so that after the sale and the taxes are paid, the net benefit will close the gap. If they have a business valuation in hand, owners can determine if they are ready to sell or need more time to build value.

Personal financial planning also highlights the importance of tax strategy. Working with wealth advisors and CPAs, owners can structure the sale to minimize tax consequences. This becomes especially important given that most business owners have limited assets outside their companies.

“Data proves that for the majority of business owners, 80% or more of their personal wealth is tied up in the business,” Haarstad says. “That just shows how critically important doing it right becomes.”

Key lesson: Start early

The wealth gap analysis also reveals the consequences of poor planning, especially when unforeseen events force a sale. “If you haven’t done any planning beyond traditional estate planning, and something happens, the business will transition to the designated beneficiary, in many cases the

spouse of the owner,” Haarstad says.

Often, an owner’s spouse hasn’t been involved in the day-to-day operations of the company and has no idea what to do with it. That situation can put the business on a fast track to sell without allowing time to drive up its value. “They end up taking a haircut on what they could have gotten and paying more taxes than they needed to. It’s a lose-lose,” he says.

For the Harrises, an early start gave them clarity about their preferences for a buyer. “In the end we wanted to sell to a private entity much like ourselves. We knew we were kind of limiting ourselves, but we wanted to protect our employees.”

The process still proved demanding. “The last nine months were overwhelming,” she admits. “But having gone through the succession planning process, we had a plan and steps to follow. It was comforting to know we weren’t starting from scratch.”

The sale to Menzner Hardwoods, a family-owned company based in Wisconsin, closed Sept. 2, 2025, with Harris Hardwoods continuing to operate in Foreston and keeping the Harris name. Harris stayed on through November to ensure a smooth transition, fulfilling her goal of protecting the employees who had become like family over the years.

“They spent a lifetime building it,” she says of their employees. “We wanted to know that their jobs are protected when we’re gone, and the business continues.”

Companies that plan their exits also protect themselves against unforeseen circumstances, as Cochran learned.

R/C Machining was in excellent financial shape four years ago — an ideal time to sell. “The problem was, I wasn’t personally ready to sell at that time,” he says. The manufacturing economy declined around that time, and the company lost significant market value. That turned Cochran’s four- or five-year plan into a seven- or eight-year plan as he works to rebuild the value of the company.

His experience underscores why starting early matters. A longer runway gives an owner more flexibility for both personal readiness and favorable market conditions.

Doug Leaser adds that getting an earlier start on exit planning would have strengthened every aspect of their business. “I wish we would have started this a long time ago,” he says. “There are a lot of things we would have done differently, and we more than likely would have been more profitable in certain areas. Whether it’s year one or year 20, I think going through this process is very valuable.”

KEEPING MINNESOTA A MANUFACTURING LEADER

MARKET DISRUPTOR

When Innovation Meets Reality

Infinity Mattz developed a standout product to change the industrial market. Now they have to sell it.

BY ELIZABETH MILLARD

The well-loved adage from Field of Dreams that “if you build it, they will come” may sound heartwarming and inspiring in the midst of a movie, but in the real world, that’s not always how it works — as Infinity Mattz is discovering.

The Warroad-based brand has developed a product so innovative it could be a game changer for several industries, including construction and mining. But first it needs to implement a go-to-market strategy that gives it significant traction. They’ve built it, but how do they get customers to come knocking?

Infinity’s experience offers a case study in four distinct challenges — and solutions — for companies that develop market-changing products. Here’s a look at what Infinity’s leaders are facing, what they’ve done, and the lessons they’re learning about getting started that may feel familiar to any innovationbased manufacturing firm.

Challenge:

Offering an alternative to an industry standard

idea that this is the only solution because they’ve been used for so long.”

Except that now wood mats are not the only option because Infinity Mattz has created what many in the industrial arena have longed to see: a durable, non-slip, reusable, long-term product that can be brought from one project to another

in 2021 to focus exclusively on getting customers for the new endeavor.

But convincing potential customers that a mat will last for 10 to 20 years — depending on the intensity of usage — versus a few months or a year like wooden mats do has been tough. The company did make an initial large sale to an oil and natural gas company in North Dakota.

Ryan Karl of Infinity Mattz is spearheading efforts to bring a groundbreaking technology to the market for mats that stabilize the ground for heavy equipment.

Building on that initial success is where the challenge lies.

“Potential customers are excited about a new option because they don’t like the old solution, but at the same time, there’s no familiarity with a product like this,” Mark explains. “Plus, we don’t have customers who have been using these for decades because we haven’t been around that long.”

Solution:

Compare Infinity Mattz to familiar products, and show the mats in action

Getting heavy equipment to a job site and operating those machines effectively requires ample stability on the ground. After all, heavy trucks, bulldozers, cranes, and other equipment could easily get stuck in muddy terrain without support, and that’s where wood mats have come in. Often created from a mixture of hardwoods, these mats offer a solid foundation that allow machines to roll over them, serving as portable roadways or a basis for construction trailers and storage.

The problem is that wood breaks down, particularly when incredibly heavy machines traverse over it multiple times per day, for weeks at a time. They need frequent replacement and for some jobs, they might only last for that project.

“Unfortunately, this is not a sustainable approach,” says Mark Karl, CEO of HEATMOR Manufacturing, owner of the Infinity Mattz brand. “No one likes the wood mats because it feels wasteful and you have to keep replacing them and discarding the old ones. But it’s a very well-established

“Potential customers are excited about a new option because they don’t like the old solution, but at the same time, there’s no familiarity with a product like this.”

without any breakdown in quality or stability. Infinity’s mats are made from steel and are the brainchild of an oil pipeline employee who was frustrated that wooden mats deteriorate so quickly.

He brought the idea to HEATMOR — a fabrication company that makes outdoor stoves, safes, side-by-side toppers, and offers welding services — which is when Mark got involved and looped in his son, Ryan, to bring the concept to life. From there, the manufacturing process was spun off into a separate brand, Infinity Mattz,

One approach that’s helping to get some traction is to compare the mats to a product like reusable steel crates that are used to ship larger pieces of machinery. Before his current role, Mark was general manager of North American Off-Road Operations for the Polaris plant in Roseau, and the company often focused on innovation in its packaging and shipping processes, he says.

With Infinity customers, he draws on that experience, as well as the use of reusable shipping crates made out of steel that can be utilized over and over. “Comparing the mats to something like a reusable crate is helpful, because it gives people a point of reference,” Mark says. “They can understand the value of using something that durable and long-lasting compared to a one-time-use option like a wooden crate.”

Another major step has been development of a website that features videos showing the mats in construction settings, adds Amy Hubler, an Enterprise Minnesota business growth consultant who’s working with the company on its go-to-market strategies.

“What potential customers want to see most is how these would be used, and having those images and videos are a powerful

way to do that,” she says. “The website also clearly states the benefits in terms of lifespan, design, sustainability, and safety improvements.”

Challenge:

Addressing sticker shock

Even when customers understand the value Infinity Mattz provides, the next major hurdle is the price tag, according to Ryan Karl. Because they’re made from steel instead of wood, and because they’re designed to last 10 times longer than wood mats, the cost of an Infinity Mattz product is much higher.

“Price is obviously a big challenge here, and there’s sticker shock to some degree,” says Ryan. “Even when people acknowledge that it will cost more for wood mats in the long run because of how often you need to replace them, they have to get over that initial hurdle on putting this into the budget.”

In many cases, an Infinity Mattz steel mat can be eight to 10 times more expensive than an existing wood mat, Mark says. Even though the company has basically “built a better mouse trap,” customers tend to go with what they’ve used even when they don’t like that option because it’s the “mouse

“What potential customers want to see most is how these would be used, and having those images and videos are a powerful way to do that.”

trap” they know, at a price they can predict.

He adds that it’s particularly tricky because a fair amount of potential customers are used to the mat portion of a project being a one-time cost, versus amortizing it across multiple projects. That means they need to convince customers to change their way of looking at mats, from a “consumable” cost to an asset instead, similar to their equipment.

Solution:

Developing an ROI calculator and focusing on short-term leasing

Simply saying that the steel mats will last 10, 20, even 30 times longer than wood mats isn’t enough, admits Mark. Seeing a side-by-side cost comparison is more effective, so the company is developing a simple calculator that will be put on the Infinity Mattz website early in 2026.

“This will be particularly useful for

Ryan Karl and Mark Karl say the durable, reusable, non-slip mats their company manufactures could be a game changer for the construction, mining, and energy industries.

sales calls,” says Hubler. “They just need to ask the prospect to pull up the website, use the calculator, and see the results for themselves. For example, if you see that a wooden mat needs replacement every two or three years, you can understand what that will cost over 15 years, versus getting one steel mat to last that entire time.”

Another aspect of boosting customer comfort on price is leasing instead of selling, Mark adds. Not only does that give a wider customer base experience with the product — with the extra benefit of creating more word-of-mouth buzz — but leasing also takes some of the sting out of that initial cost, he says.

“It’s a way to try it out, where you can lease the mats for 60 days, and that lease payment goes toward the purchase price if you want to keep them,” Mark says. “If not, you only have to pay for the number of days you use them. We’re hoping that gives people a strong option for removing the risk that comes with a large investment in a newer product type.”

Challenge:

Identifying a larger target audience

Any robust go-to-market strategy has identification of a target audience as a key component. According to Harvard Business School, this includes analyzing purchasing patterns and customer motivations around convenience and value. Infinity Mattz is already aware that construction is a major industry worth targeting, but there are many more where the mats can be used, says Ryan.

“Any industry where you need to traverse and work on different types of terrain safely can be a customer for us,” he notes. “We’re trying to focus on our core customer group first and expand from there.”

Expansion industries could include oil and gas pipeline installation and operation, wind turbine and solar power array implementation, mining development, logging, and

utilities such as powerline installation. But getting a foothold in those industries requires specialized knowledge of how they operate, their unique needs, and what considerations go into their purchasing, adds Mark.

Solution:

Attending trade shows and articulating key features

One way to reach a wider array of industry players is to be in a place where all these different companies come together — and for Infinity Mattz, that means trade shows. For example, Infinity Mattz will have a booth at the Conexpo-Con/Agg trade show in 2026, held every March in Las Vegas.

Touted as the largest construction show in North America, the show represents companies in concrete, mining, utilities, and many others. With over 2,000 exhibitors, it’s tough to stand out from all the noise — quite literally, when it comes to the Las Vegas Convention Center — but Mark feels it will be a good first step to establish a presence beyond Minnesota and the Midwest with national and even international exposure.

“Trade shows can feel promising because people seem really interested and really excited while you’re talking to them, but then when you circle back after the show, it’s radio silence,” he says. “However, you don’t know when someone might come back around, or if what you’ve talked about will impact their project decisions in the future.”

Trade shows offer the added advantage of giving sales representatives the experience of pitching the advantages of the mats dozens of times per day over a short period of time. That repetition provides a kind of sales-based muscle memory that can be utilized during cold calling and following up on sales leads.

Infinity Mattz is also trying to reach more industries by describing key features

of the mat on its website, including factors like engineering, safety, and environmental impact.

For example, the company notes that the steel mats have a high-load capacity that’s capable of supporting up to 25,000 pounds per axle, an appealing attribute for industries that utilize heavy equipment transported down temporary roads created by the mats. Another engineering feature highlighted on the site is the mats’ performance in wet and waterlogged conditions, such as rivers, marshes, or muddy job sites. This is likely to draw the interest of companies working in areas with unstable, wet terrain.

Challenge:

Developing the right sales team

Although Infinity Mattz is working to get its mats onto the job sites of more customers, the company is also aware that it needs to grow in a way that’s sustainable, says Ryan. For example, ramping up a large sales staff and setting up a dealer network would be possible — and may boost growth in the short-term — but it would also require a large investment that could put the company at risk if sales take too long to materialize, he says.

“We want to grow incrementally, but not bite off more than we can chew, and that’s a tricky balance,” Ryan says. “We see so much opportunity, especially with all these different industries and geographies that we can expand into, but we also want to ensure we can scale properly.”

With a couple of local customers and the North Dakota oil and gas company, Infinity Mattz is getting more interest and inquiries than it has in the past, so there is a feeling of momentum, he adds. But that grassroots approach can only take a company so far — especially if there are limited resources for capitalizing on that interest through focused sales efforts.

“In the past, we were letting the product speak for itself, but word of mouth takes time and doesn’t always translate to customers,” says Ryan. “That’s why we’re looking at meaningful ways to grow in this next stage.”

Solution:

Strategic hiring and staying open to what’s next

Because every potential industry has distinctive needs, getting the right sales representatives is crucial, but also a key challenge given the company’s location in Warroad. However, Mark suggests the geographic and professional limitations can be addressed by building a sales

team that operates from different locations around the country. He envisions this team staffed by people who have worked for decades in different industries and have either just retired or are on the brink of that transition.

“These are the type of sales reps who advocate for a product like ours because

“It’s a way to try it out, where you can lease the mats for 60 days, and that lease payment goes toward the purchase price if you want to keep them.”

they know its value, not because it’s their job,” he says. “They know the ins and outs of their specific industry and all the nuances that come along with that, and because of their experience, they bring a certain amount of respect and clout. That opens doors right away. It’s not easy to build a team like that, but we’re working on it.”

Through the insight they’re gaining from Enterprise Minnesota, Infinity Mattz is progressing toward a meaningful go-tomarket strategy that has some of the same components as the mats themselves: sustainability, durability, and adaptability. As the company looks ahead, the executives are careful to build their sales and marketing in incremental ways rather than pouring all available funds into those efforts. They also recognize the areas of potential growth that could lead them forward.

For example, they continue to innovate, with four variations on the initial steel mat design. They also recognize that there are many more trade shows to attend, partnerships to consider, and manufacturing capacity to expand if needed.

“Even though HEATMOR has been in business since 1984, and the Infinity Mattz product had its first prototypes made four years ago, we do consider ourselves to be in the early stages of developing a more robust sales process. At the same time, we believe we have so many strengths that will carry us forward,” says Ryan. “We’re building this in a way that’s designed to last, and that’s exciting.”

Final Word

Progress Check

Enterprise Minnesota is barely recognizable from its early roots, and we like what we’ve become.

It is always healthy for a business to step back from the day-to-day urgencies that occupy our attention and take stock of who we’ve become. Reading Bob Kill’s “exit interview” in this issue of Enterprise Minnesota magazine gave me just such an opportunity.

For nearly two decades, Enterprise Minnesota has evolved into an organization that would have been hard to imagine when it was still called Minnesota Technology and struggling for survival in the wake of the Greater Minnesota Corporation’s collapse. What exists today — a lean, focused nonprofit that helps manufacturers improve operations, grow profitably, and connect with a broader manufacturing ecosystem — bears little resemblance to the lottery-funded agency Gov. Rudy Perpich created to support rural businesses. And yet the through-line is unmistakable: an enduring commitment to Minnesota’s

small- and medium-sized manufacturers, who provide the entrepreneurial heartbeat of our economy.

Those companies are our audience. Our reason for being is the competitive wellbeing of Minnesota’s small manufacturers. These are not sprawling corporate giants. They are family companies, closely held enterprises, and quietly ambitious shops scattered across the state that exemplify the entrepreneurial spirit that drives the American economy.

One of the most consequential shifts in Enterprise Minnesota’s evolution was moving away from a traditional government-agency mindset and becoming a client-driven nonprofit organization. That shift enabled us to look at manufacturers from a business perspective and become more adaptive, more responsive, and more grounded in the realities of running a business in a competitive world.

With that pivot, we embraced the move from free consulting services to a feebased model. Having some skin in the game — even at reduced fees — gave our work more value. It made companies more committed. It sharpened our own accountability. And it made us more willing to adapt our services based on what manufacturers actually needed, rather than what we assumed they needed.

At the same time, we embarked on a decades-long project to amplify the value of manufacturing, not just to outsiders but to manufacturers themselves. We launched the annual State of Manufacturing® survey to raise the profile of manufacturing among policymakers, the media, economic development agencies, educational institutions, and the professionals who support manufacturers.

It did that, while injecting a sense of pride in the manufacturing community itself. The idea was to give manufacturers a voice and to connect them with one another. We didn’t fully appreciate how

powerful that platform would become. Seventeen years later, the survey has grown into a trusted annual benchmark precisely because it never stood still.

That resistance to inertia permeates the entire Enterprise Minnesota organization. Over the years, we’ve adopted many of the operational improvements we share with clients.

Enterprise Minnesota has always encouraged clients to pursue ISO certification; 11 years ago, we went through the process too. Though it’s relatively unusual for a service company to seek ISO certification, we’ve found that it’s an outstanding management system.

We’ve also worked with our consultants to improve Enterprise Minnesota’s internal processes, such as through value stream mapping. These efforts have helped us save staff time and improve the quality of our events, magazine, and finances.

As we listened to clients and utilized the data in the State of Manufacturing survey, we expanded our consulting services, adding expertise in areas that improve opportunities for manufacturers to grow profitably. We also grew our peer councils around the state, created exclusively for manufacturing executives from small- and mediumsized companies, allowing them to speak candidly and confidentially with their peers about business challenges and opportunities. We started with one peer council, and today we’re up to 11. In addition, we host dozens of manufacturing workshops every year, giving manufacturers a glimpse of the consulting services we offer and actionable steps to improve operations.

Like the manufacturers we serve, we’ll face new hurdles in the coming years. As the economy and manufacturing evolve with changes in technology and demographics, we’ll continue to be flexible, adding new services where needed. We’re excited to see where the next two decades lead us.

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