The State of Manufacturing® 2019 - Complete Survey Book by Enterprise Minnesota

A COMPREHENSIVE SURVEY OF MINNESOTA’S MANUFACTURERS 9001:2015

2019

DOING MORE WITH LESS

Our annual survey shows that attention to productivity— through processes and people—will solve the worker shortage.

2019 A Comprehensive Survey of Minnesotaâ&#x20AC;&#x2122;s Manufacturers

The State of Manufacturing 2019

ÂŽ

A comprehensive survey of Minnesotaâ&#x20AC;&#x2122;s manufacturers Rob Autry, Pollster Tom Mason, Strategic Consultant Lynn Shelton, Director Scott Buchschacher, Creative Director Catrin Thorman, Copy Editor All rights reserved. Except for brief quotations in critical articles and reviews, no part of this book may be reproduced in any manner without prior permission of the publishers. Special thanks to all of the sponsoring organizations and executives who participated in the focus groups.

Enterprise Minnesota, 2100 Summer St NE, Suite 150 Minneapolis, Minnesota 55413

TABLE OF CONTENTS Introduction .......................................................................................................................3 Pollster’s Analysis...........................................................................................................6 Poll Summary..................................................................................................................10 Pollster’s Slide Summary Focus Groups Bemidji, MN.............................................................................................................................27 Alexandria, MN........................................................................................................................35 Jackson, MN.............................................................................................................................43 Owatonna, MN.........................................................................................................................49 Roseville, MN...........................................................................................................................55 Pine City, MN...........................................................................................................................62 Rosemount, MN.......................................................................................................................68 Plymouth, MN..........................................................................................................................75 Coon Rapids, MN.....................................................................................................................80 Duluth, MN...............................................................................................................................84 St. Cloud, MN...........................................................................................................................89 Brainerd, MN............................................................................................................................94 Shakopee, MN........................................................................................................................100

Selected Cross Tabulations...................................................................................107 2

INTRODUCTION

Questions, Not Answers It’s time to consider the long-term realities of the worker shortage. First reality: It’s not going away. By Bob Kill, president & CEO, Enterprise Minnesota

Focus groups have always constituted one of my favorite activi-

ed crash of the U.S. economy. But to our surprise, those first focus groups were dominated by manufacturers who wanted to identify opportunities in a down market. They talked about finding potential acquisitions, seeking opportunities to retrain employees, examining new product lines, leaning up their processes, and solidifying sales relationships—all with an eye to position their companies to best take advantage of the market’s inevitable comeback. But that’s a false comparison. The worker shortage may ultimately have the effect of an economic recession, but it’s not going to bounce back. RealTime Talent, a research operation housed by the Minnesota Chamber of Commerce, predicts that the number of open jobs in Minnesota could increase from 60,000 to 200,000-plus within four years. That’s dire. The shortage of workers does not represent a temporary market condition. It is a matter of inalterable demographic realities. There just aren’t enough people to go around, and there won’t be any time soon. This year’s State of Manufacturing survey revealed at least some encouragement: Manufacturers are looking to take charge of their situations. Some 60 percent of executives who say their inability to attract a sufficient number of employees makes growth “difficult,” say they intend to rely on improved productivity to navigate the worker shortage. On top of that, larger companies—defined

ties associated with the State of Manufacturing , our annual survey of executives from Minnesota’s manufacturing companies. We’ve now conducted 159 of these groups over the 11 years since we first developed the survey project. I enjoy them because they give manufacturers a chance to assess the big picture context about their companies and industries with the kind of astute candor that comes with guaranteed anonymity. Every year there are at least a couple of conversations that provide original and thought-provoking insights. Here’s the one that stands out in 2019: In the midst of a long exchange about the deepening challenges of the thinning workforce—the cornerstone topic of every focus group—one participant startled his group by suggesting the worker shortage might represent a potential long-term market opportunity. The worker shortage is a fact of life, he said. The way manufacturers apply innovation and creativity to address their employee issues, he continued, could well differentiate their companies from competitors standing on the sidelines merely admiring the problem. It could be as important as adding a new product line or finding new major customers, he said. His insight at first summoned the memory of our very first round of State of Manufacturing focus groups in 2009. Participants at the time, you’ll recall, were still reeling from the sudden and unexpect®

as having revenues greater than $5 million—expect that advances in productivity will be as significant to their company’s growth as developing new products. That’s the good news. At the same time, a substantial number of manufacturers seem to be content in the hope that tomorrow will somehow take care of itself. Consider these findings:

America’s premier pollsters. We draw credibility from his creativity, patience, and keen analytic skills. And Tom Mason, our long-time consultant, has also been with us from the beginning. Tom also produces Enterprise Minnesota magazine, along with creative director Scott Buchschacher. Special thanks goes to Lynn Shelton, vice president of marketing at Enterprise Minnesota, who has directed the State of

• Only 49 percent say their company uses a formal strategic plan for profitable growth. That’s down four points from our 2018 survey. • A full 32 percent say that “strategy is strictly the role of the CEO.” • Just 28 percent say they operate from one-to-three-year written plans “and all staff know their roles and actions to achieve the plan.” • Sixteen percent say their company “has some ideas but has not yet worked through what our primary focus is.” • Fifteen percent say they had a plan “but it needs to be further communicated with staff.” Only 23 percent say they have a structured leadership program for employees, but among those who do, only two percent describe their involvement as a “major investment.” I think this data gives us a good sense of the competitors from whom our focus group innovator expects to find market differentiation. While I believe strongly that manufacturers should take decisive, proactive measures to protect their own destinies, I also believe the solution to the workforce shortage represents a statewide challenge that demands a non-partisan statewide response. Unlike an economic recession that can take us by surprise, the worker shortage is a challenge coming straight at us, and we know it. We don’t think it’s going to disrupt our economy, we know it will. I don’t believe there is a magic bullet solution to this issue statewide, but I do know the states that actively coordinate strategies to limit the potential economic harm will find themselves at an economic advantage over those that don’t. Communities, educators, and business leaders must work on this with policymakers, too. We would all do well to learn the problem-solving lessons from forward-looking communities like Bemidji, Brainerd, and Alexandria (among others) who have created hometown coalitions that are going to serve them well in the future. * * * And now we have some people to thank for making this State of Manufacturing project such a success. I say this every year because it is always true. The State of Manufacturing would not succeed without the selfless collaboration of so many organizations and individuals. As always, we’re grateful to our sponsors, whose financial backing helps us defray the considerable costs of the overall project, whose insights and ideas always contribute to a meaningful questionnaire, and whose individual networks always plug us into a new set of thought leaders. Pollster Rob Autry has conducted the survey in each of the 11 years. Rob, the founder of Meeting Street Research, is one of

Manufacturing project since it was nothing more than a concept. Lynn’s team manages this major undertaking with the utmost of professionalism, integrity and passion for excellence. Kudos go to Lynet DaPra, Constance Fantin, Chris Morse and Chip Tangen. Finally, I want to again extend sincere thanks to the manufacturers who take time out of their busy days to talk to our pollster, the many people who participate (often year after year) in our focus groups, and those who will attend the regional events where we present and discuss the results.

THANK YOU TO OUR

2019 SPONSORS

SILVER – FOCUS GROUP SPONSORS

PLATINUM – STATEWIDE SPONSORS • • • • •

Bremer Bank Granite Equity Partners Gray Plant Mooty King Solutions Minnesota Department of Employment and Economic Development (DEED) • Olsen Thielen • Widseth Smith Nolting

• Alexandria Area Economic Development Commission • APEX • Clow Stamping Company • Dakota County Technical College • Duluth Economic Development Authority (DEDA) • Gray Plant Mooty • Grey Search + Strategy • Lake Superior College • Lee & Associates • Minnesota Power • The Northspan Group, Inc. • Northwest Minnesota Foundation • Olsen Thielen • Pequot Tool & Manufacturing • Pine Technical & Community College • Productivity Inc • Southern Minnesota Initiative Foundation • Southwest Initiative Foundation • West Central Initiative

GOLD – REGIONAL SPONSORS

• Blandin Foundation • Iron Range Resources & Rehabilitation Board (IRRRB)

RECEPTION BEER SPONSOR • Fulton Brewing Company

POLLSTER’S ANALYSIS

Doing More with Less Optimistic manufacturing executives underscore that improved productivity is the way to combat the long-term constraints of fewer employees. By Rob Autry

innesota’s manufacturers retained near-reFew companies operate from formal plans. cord levels of optimism about the prospects of their companies in 2019, according to the most recent edition of the State of Manufac“How does your company plan to grow?” turing® survey. But underneath that cheery confidence is a growing concern that the looming shortage of workers will constrain 32% The strategy is strictly the role of the CEO their ability to grow profitably, and a recognition that the long-term solution will be We have a 1-3 year written plan and all staff know 28% through improved productivity. their roles and actions to achieve the plan The State of Manufacturing, created and Our company has some ideas, but has not yet overseen by Enterprise Minnesota, is a statisti16% worked through what our primary focus is, and is not cally balanced opinion survey of manufacturing executives in Minnesota. We have a plan, but that needs to be further The 2019 study is the 11th edition of the 15% communicated with staff annual survey. It was conducted by Rob Autry, the founder of Meeting Street Research, a public opinion research firm based in Charleston, South Carolina. He has overseen presidents, vice presidents and managing officers. Meeting Street all 11 surveys. also completed 123 additional interviews among manufacturers outside the Twin Cities to gather a sufficient sample size to Autry’s firm interviewed 400 manufacturing executives from analyze the state according to Minnesota Initiative Foundation March 5 to March 20. Executives included CEOs, CFOs, COOs,

Few companies operate from formal plans.

regions. The survey’s margin of error is +/- 4.9 percent. Enterprise Minnesota supplemented the survey data by conducting 13 focus groups statewide. The survey revealed that overall confidence continues to soar at extremely high levels among Minnesota’s manufacturing executives. • Ninety-three percent of executives feel “confident” about the futures of their companies, exactly the same percentage as last year. Only five percent are “not confident,” the lowest number recorded in the history of the survey. • Fifty-nine percent of executives expect increases in gross revenue, while 45 percent project increases in profitability, both close to record highs. • Fifty-eight percent expect employee wages to increase in 2019, which is six percent higher than 2018. Only one percent expect wages to decrease. The greatest increases were projected by large companies (78 percent at companies with revenues greater than $5 million, and 74 percent at companies with more than 50 employees). Metro companies (62 percent) are more likely to expect wage increases than those in Greater Minnesota (53 percent). The survey’s sole hint of uncertainty can be found in the sharp drop in number of manufacturers who expect America’s economy to expand in 2019. Only 49 percent predict expansion, a full 15-point drop from the 2018 survey. Similarly, 39 percent expect a “flat economy,” up 11 percent from last year. Only five percent expect “recession.” There was an intriguing east-west split among the Initiative Foundation regions, with the west showing far greater pessimism about the economy: Forty-five percent of executives in the Northwest (based in Bemidji) predicted economic expansion; West Central executives (Fergus Falls) came in at 41 percent; and pessimism was strongest in the Southwest (Hutchinson) at 37 percent. Manufacturers in the east expressed greater confidence in the economy: Northland, Duluth, 56 percent; Initiative Foundation, Little Falls, 54 percent; and the South, Owatonna, 54 percent.

Financial confidence soars. Financial confidence soars. “From a financial perspective, how do you feel right now about the future for your company?” Confident

79%

78%

21%

December 2008

January 2010

Not Confident

83%

82%

84%

16%

17%

15%

January 2011

January 2012

March 2013

March 2014

94%

93%

March 2016

March 2017

March 2018

March 2019

89%

90%

11%

March 2015

More than half will

More than half willincrease wages in 2019. increase wages in 2019. “Have or will wages for your employees increase for 2019, or will they decrease or stay about the same?” Increase

49%

46%

Decrease

Stay About the Same

58%

52% 45%

37%

2017

2018

2019

The worker shortage impacts growth

The worker shortage impacts growth. “What would you say are the one or two biggest challenges your company is facing that might negatively impact future growth?” 2014

2015

2016

2017

2018

2019

Attracting and retaining a qualified workforce

21%

29%

26%

34%

49%

48%

Cost of health care insurance

31%

41%

34%

36%

30%

Increasing costs of energy and materials for your products

29%

20%

15%

18%

34%

28%

Unfavorable business climate

48%

43%

40%

38%

18%

19%

Lower sales for your products

31%

23%

32%

22%

17%

12%

Government regulations

Foreign competition

Ongoing Anxieties

than it was in 2014. In this context, the cost of health insurance fell to 30 percent, and “increasing costs of energy” came in at 28 percent. Seventy-one percent statewide said the worker shortage makes things “difficult.” Most affected are larger companies: 84 percent of companies with revenues in excess of $5 million found it difficult; 84 percent of companies with more than 50 employees also found it difficult. Seventy-six percent of companies in Greater Minnesota found it “difficult.” Broken down by Initiative Foundation regions, it looks like this:

At 58 percent, concerns about the costs of providing health care coverage to employees is rated as the top concern among manufacturers, as it has in each of the 11 years of the survey. Apprehension about government policies and regulations is a top concern of 40 percent of manufacturers, down from a whopping 61 percent in 2011. Fears of foreign competition is down to 13 percent, which is down from 20 percent in 2011. A plurality (45 percent) of executives say Minnesota is a better place to do business than it was five years ago. Thirty-seven percent say it has stayed about the same.

Workers

• Eighty-five percent each in the West Central and South • Seventy-six percent in the Southwest • Seventy-five percent in the Northwest • Seventy-three percent in the Initiative Foundation • Sixty-five percent in Northland

Minnesota Initiative Foundations The inability to attract qualified labor is very high on the heartburn scale of manufacturers. At 48 percent, the ongoing worker shortage topped the list of biggest challenges “that might negatively impact future growth.” This number is 27 points higher

Northwest Minnesota Foundation

West Central Initiative

Northland Foundation

Initiative Foundation

Southwest Initiative Foundation

Minnesota Initiative Foundations

Southern Minnesota Initiative Foundation

Productivity

A majority of manufacturers (54 percent) cited “maximizing productivity” as the way they would navigate challenges related to the worker shortage, with 76 percent saying they would emphasize improving “people development and process improvement equally.” Even more telling, manufacturers now say that maximizing productivity is second only to “finding new customers” as an “important driver of future growth.” Two extrapolations from this data provide even greater insight into the value of productivity: • Companies with revenues over $5 million predict that maximizing productivity will have equal significance as finding new customers as the top driver of future growth. • When they combine “eliminating time & energy waste” with “maximizing productivity,” a whopping 70 percent of larger manufacturers project that improved productivity will be the most significant driver of future revenue growth.

Automation

Sixty-four percent of manufacturers deploy some form of automation in their manufacturing operations. Of those, 50 percent say it is to improve productivity; 38 percent say it is to improve product quality; 30 percent say it is to improve safety; and 24 percent say it is to enhance the work environment. The number of companies that have introduced “structured leadership development” programs has inched up from 19 percent in 2018 to 23 percent in 2019. But of those companies, 52 percent described their involvement as requiring “a little investment.” Only eight percent described it as “a major investment.” Large, metro-based companies appear to be pursuing training most aggressively.

Strategic Planning

Productivity combats the worker shortage.

Productivity combats the worker shortage. “What are some of the things you are doing to navigate around the worker shortage challenges?” Maximizing productivity

54%

Increasing compensation

38%

Training interns to become employees

32%

Being more aggressive in marketing your company to potential employees

31% 27%

Working directly with area tech colleges Part Time/Temporary help

Larger companies emphasize productivity.

Larger companies emphasize productivity. Most Important Drivers of Future Growth by Revenue Size Revenue Under $1 Million New Customers

29%

Eliminating Time & Energy Waste

18%

Better Strategic Planning & Implementation

15% 11%

41%

37%

33%

New Products

Revenue Over $5 Million

55%

58%

Maximizing Productivity

Developing Company Managers & Leaders

Revenue $1-$5 Million

40%

20%

29%

24%

30%

20%

27%

23%

Companies invest little leadership training.

Companies invest little in leadership training. Amount of Investment in Leadership Training Programs by Key Groups Among Companies with Program

Major

Modest

Little

Metro companies

38%

56%

Greater Minnesota companies

10%

35%

48%

Less than $1 million in revenue

26%

70%

$1-5 million in revenue

41%

54%

Over $5 million in revenue

13%

45%

36%

Curiously, the number of companies that deploy 50 or fewer employees 9% 31% 57% a “formal strategic plan for profitable growth” Over 50 employees 6% 47% 42% has declined. Today, 49 percent of companies statewide use a strategic plan, while 49 percent do not, a slight decline from 2018, when the comparison was 53 percent to 47 percent in ing number of executives declare that strategy is “strictly the role favor of planning. of the CEO” (32 percent in 2019, 28 percent in 2018). TwenNot surprisingly, larger companies are more likely to operate ty-eight percent of manufacturers say their companies “have a 1 from a formal strategic plan. Eighty-five percent of companies to 3 year written plan and all staff know their roles and actions to with more than 50 employees use a plan. On top of that, a growachieve the plan.”

POLL SUMMARY

2019 State of ManufacturingÂ® Survey By Rob Autry

2019

Field Dates: March 2019 Sample Size: N=400 Manufacturing Executives N=123 Oversample outside MSP STATE OF MANUFACTURING SURVEY

* Denotes result less than 0.5%. Field Dates: March 2019 NOTE: Due to rounding, some figures may be higher or lower by less than one-half of one percent. Sample Size: N=400 Manufacturing Executives N=123 Oversample outside MSP

Question 1 From a financial perspective, how do you feel right now about the future for your company? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 28% 30% 35% 28% 28% 36% 40% 44% 57% 51% 50% VERY CONFIDENT 51% 49% 49% 54% 54% 49% 48% 47% 37% 41% 43% SOMEWHAT CONFIDENT 15% 16% 13% 13% 12% 13% 7% 5% 5% 5% 5% NOT VERY CONFIDENT 5% 5% 4% 4% 5% 2% 3% 4% 1% 1% 1% NOT AT ALL CONFIDENT * --

1% --

* *

1% --

-- --

1% --

1% DON'T KNOW/UNSURE 1% REFUSED

79% 21%

78% 21%

83% 16%

82% 17%

84% 15%

89% 11%

90% 9%

94% 6%

93% 6%

93% TOTAL CONFIDENT 5% TOTAL NOT CONFIDENT

Question 2 Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession?

2008

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

* -- 79% 21%

1% -- 78% 21%

1% -- 83% 16%

* * 82% 17%

1% -- 84% 15%

1% -- 89% 11%

1% -- 90% 9%

-- -- 94% 6%

1% -- 93% 6%

1% 1% 93% 5%

DON'T KNOW/UNSURE REFUSED TOTAL CONFIDENT TOTAL NOT CONFIDENT

Question 2 Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 8% 26% 40% 32% 34% 37% 42% 32% 58% 64% 49% ECONOMIC EXPANSION 34% 53% 49% 55% 46% 54% 42% 48% 32% 28% 39% A FLAT ECONOMY 56% 19% 9% 10% 15% 7% 13% 15% 4% 4% 5% A RECESSION 2% 2% 3% 2% 5% 3% 3% 4% 5% 4% 6% DON'T KNOW/UNSURE -- -- -- 1% 1% -- -- * -- -- 1% REFUSED Question 3 Thinking about the business climate in Minnesota compared to say five years ago, would you say the business climate has gotten better, gotten worse or stayed about the same? 2017 2018 2019 41% 54% 45% GOTTEN BETTER 18% 14% 15% GOTTEN WORSE 39% 32% 37% STAYED ABOUT THE SAME 3% 1% 2% DON'T KNOW -- -- -- REFUSED Question 4 As you look to 2019, do you project your company's gross revenues to increase or decrease compared to 2018, or will they probably stay the same? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 11% 29% 30% 25% 25% 23% 25% 25% 35% 36% 29% INCREASE BY MORE THAN 10% 12% 15% 21% 22% 16% 21% 19% 19% 20% 24% 30% INCREASE BY LESS THAN 10% 10% 5% 2% 2% 4% 2% 2% 5% 2% 2% 2% DECREASE BY LESS THAN 10% 22% 10% 5% 6% 6% 5% 4% 6% 5% 3% 4% DECREASE BY MORE THAN 10% 44% 40% 41% 44% 48% 47% 47% 43% 36% 33% 32% STAY THE SAME 1% 1% 2% 1% 1% 2% 1% 1% 2% 1% 2% TOO SOON TO SAY/ DON'T KNOW * * 1% -- 1% 1% * -- -- -- 1% REFUSED 23% 44% 51% 47% 41% 45% 45% 44% 55% 60% 59% TOTAL INCREASE 32% 15% 6% 8% 9% 7% 7% 12% 7% 5% 6% TOTAL DECREASE

Question 5 And, as you look to 2019, do you project your company's profitability to increase or decrease compared to 2018, or will it probably stay the same? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9% 21% 21% 17% 16% 18% 14% 20% 27% 27% 23% INCREASE BY MORE THAN 10% 8% 15% 18% 14% 16% 17% 16% 16% 17% 19% 22% INCREASE BY LESS THAN 10% 13% 8% 6% 7% 9% 10% 4% 6% 2% 3% 4% DECREASE BY LESS THAN 10% 21% 10% 5% 6% 8% 7% 5% 6% 5% 4% 5% DECREASE BY MORE THAN 10% 48% 45% 48% 55% 49% 47% 60% 51% 46% 44% 43% STAY THE SAME 1% 1% 2% * 2% 1% * * 2% 1% 2% TOO SOON TO SAY/ DON'T KNOW -- * 1% 1% 1% * * -- 1% 1% 1% REFUSED 17% 36% 39% 31% 32% 35% 30% 36% 44% 47% 45% TOTAL INCREASE 34% 17% 11% 13% 17% 17% 9% 12% 7% 7% 9% TOTAL DECREASE

Question 6 And, as you look to 2019, do you project your company's capital expenditures to increase or decrease compared to 2018, or will they probably stay the same? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9% 16% 20% 15% 17% 17% 14% 17% 15% 22% 19% INCREASE BY MORE THAN 10% 10% 8% 13% 12% 11% 10% 13% 8% 8% 10% 11% INCREASE BY LESS THAN 10% 12% 9% 6% 11% 6% 4% 6% 8% 4% 5% 6% DECREASE BY LESS THAN 10% 25% 15% 8% 13% 14% 15% 11% 12% 8% 5% 10% DECREASE BY MORE THAN 10% 43% 51% 53% 47% 50% 53% 55% 54% 63% 56% 52% STAY THE SAME 2% 1% 1% 1% 1% 1% * 2% 2% 1% 1% TOO SOON TO SAY/ DON'T KNOW * == * * 1% 1% * * -- -- 1% REFUSED 19% 24% 32% 27% 28% 27% 27% 25% 23% 32% 31% TOTAL INCREASE 37% 24% 14% 24% 20% 19% 17% 20% 12% 11% 15% TOTAL DECREASE

3 12

Questions 7-15 Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. 10 8-10 5-7 1-4 Mean (7) Competition from foreign sources 2019 6% 13% 22% 64% 3.7 2018 7% 13% 29% 58% 4.0 2017 5% 12% 24% 64% 3.6 2016 6% 17% 20% 62% 3.8 2015 8% 15% 25% 60% 3.9 2014 6% 16% 23% 61% 4.0 2013 7% 17% 26% 56% 4.1 2012 7% 21% 23% 55% 4.4 2011 11% 20% 30% 49% 4.5 2010 12% 27% 24% 48% 4.8 2008 8% 18% 27% 54% 4.2 10 8-10 5-7 1-4 Mean (8) Government policies and regulations 2019 20% 40% 40% 19% 6.4 2018 17% 40% 38% 23% 6.3 2017 18% 32% 39% 28% 5.9 2016 24% 41% 33% 25% 6.3 2015 28% 46% 30% 23% 6.7 2014 30% 55% 29% 17% 7.1 2013 32% 58% 24% 18% 7.2 2012 33% 56% 29% 15% 7.3 2011 31% 61% 26% 12% 7.6 2010 38% 57% 25% 16% 7.3 4 13

(9) The costs of health care coverage 2019 32% 58% 26% 12% 7.5 2018 31% 60% 25% 14% 7.4 2017 35% 59% 23% 17% 7.3 2016 30% 51% 26% 22% 6.8 2015 34% 56% 24% 20% 7.0 2014 36% 59% 20% 20% 7.2 2013 44% 67% 17% 14% 7.7 2012 36% 68% 17% 13% 7.7 2011 43% 71% 17% 8% 8.2 2010 42% 68% 17% 13% 7.8 2008 36% 64% 21% 13% 7.7 (10) Costs of employee salaries and benefits 2019 11% 29% 46% 22% 5.9 2018 9% 27% 46% 26% 5.7 2017 7% 20% 42% 37% 5.0 2016 6% 19% 41% 39% 4.8 2015 8% 18% 44% 36% 5.0 2014 4% 18% 46% 37% 5.0 2013 7% 19% 45% 34% 5.1 2012 3% 13% 47% 37% 4.9 2011 5% 15% 49% 33% 5.0 2010 6% 16% 46% 34% 5.0 2008 7% 18% 49% 32% 5.3 *Changed from 2017: Costs of employee salaries and benefits, not including health insurance 10 8-10 5-7 1-4 Mean (11) Attracting qualified workers 2019 21% 46% 33% 19% 6.7 2018 19% 47% 30% 22% 6.5 2017 12% 31% 36% 31% 5.7 2016 10% 32% 33% 34% 5.5 2015 12% 33% 36% 30% 5.7 2014 10% 34% 35% 30% 5.8 2013 9% 30% 32% 35% 5.4 2012 11% 31% 32% 37% 5.5 2011 4% 14% 37% 45% 4.6 2010 8% 19% 27% 51% 4.4 2008 8% 22% 31% 45% 4.8 *Changed from 2017: Attracting and retaining qualified workers (12) Retaining qualified workers 2019 13% 37% 35% 5 26% 6.0 2018 15% 36% 33% 30% 5.7 14 (13) (ASKED SAMPLE A ONLY, N=198) Economic and global uncertainty 2019 6% 16% 48% 34% 5.1

2012 11% 31% 32% 37% 5.5 2011 4% 14% 37% 45% 4.6 2010 8% 19% 27% 51% 4.4 2008 8% 22% 31% 45% 4.8 *Changed from 2017: Attracting and retaining qualified workers (12) Retaining qualified workers 2019 13% 37% 35% 26% 6.0 2018 15% 36% 33% 30% 5.7 (13) (ASKED SAMPLE A ONLY, N=198) Economic and global uncertainty 2019 6% 16% 48% 34% 5.1 2018 6% 20% 45% 35% 5.1 2017 7% 17% 42% 40% 4.8 2016 11% 29% 38% 32% 5.6 2015 12% 29% 43% 28% 5.8 2014 11% 31% 46% 24% 6.0 (14) (ASKED SAMPLE B ONLY, N=202) Getting your products to market 2019 3% 10% 25% 63% 3.6 2018 6% 15% 30% 54% 4.2 2017 5% 12% 26% 62% 3.8 2016 3% 12% 19% 68% 3.4 2015 5% 14% 27% 58% 4.0 *Changed from 2017: The shipping and logistics of getting your products to market (15) Developing future leaders 2019 8% 23% 44% 31% 5.3 2018 8% 25% 40% 34% 5.2 2017 12% 26% 38% 35% 5.3 *Changed from 2017: Current and future leaders

Question 16 What would you say are the one or two biggest challenges your company is facing that might negatively 6 impact future growth? 2014 2015 2016 2017 2018 2019 21% 29% 26% 34% 49% 48% ATTRACTING AND RETAINING A QUALIFIED WORKFORCE 31% 41% 34% 36% 36% 30% COST OF HEALTH CARE INSURANCE 29% 20% 15% 18% 34% 28% INCREASING COSTS OF ENERGY AND MATERIALS FOR YOUR PRODUCTS 48% 43% 40% 38% 18% 19% UNFAVORABLE BUSINESS CLIMATE 31% 23% 32% 22% 17% 12% LOWER SALES FOR YOUR PRODUCTS -- -- -- -- -- 3% REGULATIONS/GOVERNMENT REGULATIONS -- -- -- -- -- 1% COMPETITION/FOREIGN COMPETITION 3% 4% 3% 3% 2% 3% OTHER * 1% 1% 1% * 2% DON'T KNOW/NOT SURE * * * -- -- 1% REFUSED -- -- 2% -- 1% -- NONE/NONE OF THE ABOVE Question 17 15 Thinking ahead, what would you say are the two or three most important drivers of your company's future growth?

* * --

1% * --

1% * 2%

1% -- --

* -- 1%

2% 1% --

DON'T KNOW/NOT SURE REFUSED NONE/NONE OF THE ABOVE

Question 17 Thinking ahead, what would you say are the two or three most important drivers of your company's future growth? 2015 2016 2017 2018 2019 75% 82% 74% 61% 53% NEW CUSTOMERS/RETAINING CUSTOMERS -- -- -- 38% 36% MAXIMIZING PRODUCTIVITY 40% 51% 41% 35% 27% NEW PRODUCTS -- -- -- -- 23% ELIMINATING TIME AND ENERGY WASTE INSIDE YOUR COMPANY -- -- -- 27% 20% BETTER STRATEGIC PLANNING AND IMPLEMENTATION 25% 27% 24% 22% 18% DEVELOPING COMPANY MANAGERS AND LEADERS -- -- -- -- 1% RETAINING EMPLOYEES -- -- -- -- 1% GOVERNMENT REGULATIONS/GOVERNMENT 6% 6% 6% 2% 1% OTHER 1% 5% 3% 1% 2% DON'T KNOW/NOT SURE * * -- * 1% REFUSED Question 18 Looking ahead to 2019, do you plan to increase investment in any of the following areas? 2018 2019 7 68% 58% GROWING REVENUE AND PROFITABILITY 66% 54% MAXIMIZING PRODUCTIVITY 36% 37% SYSTEMS AND TECHNOLOGY 33% 37% STAFF DEVELOPMENT AND CULTURE 36% 32% EXPANDING WITHIN THE UNITED STATES/NEW CUSTOMERS 12% 13% EXPANDING GLOBALLY 11% 11% ISO BUSINESS MANAGEMENT SYSTEMS * * OTHER 9% 11% NONE OF THE ABOVE 1% 2% DON'T KNOW/REFUSED Question 19 Have or will wages for your employees increase for 2019, or will they decrease or stay about the same? 2016 2017 2018 2019 59% 46% 52% 58% INCREASE 4% 1% 1% 1% DECREASE 36% 49% 45% 37% STAY ABOUT THE SAME 1% 3% 1% 2% DON'T KNOW -- 1% * 1% REFUSED Question 20 Does your company have a structured leadership development program for employees at all levels at 16 your company?

36% 1% --

49% 3% 1%

45% 1% *

37% 2% 1%

STAY ABOUT THE SAME DON'T KNOW REFUSED

Question 20 Does your company have a structured leadership development program for employees at all levels at your company? 2015 2016 2017 2018 2019 20% 20% 17% 19% 23% YES 80% 79% 82% 81% 74% NO * 1% 1% 1% 2% DON'T KNOW/UNSURE * -- -- * * REFUSED Question 21 (ASKED IF YES, Q20:1, N=92) And, how much of an investment is your company currently making in these leadership training programs? Is it a major investment, a modest investment or just a little investment currently? 8 8% MAJOR INVESTMENT 37% MODEST INVESTMENT 52% JUST A LITTLE INVESTMENT 3% DON'T KNOW -- REFUSED Question 22 When your company uses automation do you do so because of: 2018 2019 61% 50% PRODUCTIVITY 52% 38% QUALITY OF THE PRODUCT 45% 30% SAFETY OF THE WORKFORCE 39% 24% ENHANCING THE WORK ENVIRONMENT 4% 8% DON'T USE AUTOMATION, BUT AM CONSIDERING IT 22% 25% DON'T USE AUTOMATION, AND AM NOT CONSIDERING IT 1% 2% DON'T KNOW/UNSURE * 1% REFUSED

Question 23 I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? SIGNIFTOTAL TOTAL NO ICANT SOME NOT MUCH NO IMPACT IMPACT IMPACT IMPACT IMPACT IMPACT DK REF 23A. The CEO/owner 2019 86% 12% 68% 18% 6% 6% 1% 1% 2018 84% 14% 71% 13% 8% 6% 2% -- 23B. A member of your management team 2019 79% 18% 42% 37% 8% 10% 1% 1% 2018 78% 21% 47% 31% 11% 9% 1% -- 23C. A manager or supervisor 2019 79% 18% 42% 36% 7% 11% 1% 2% 2018 75% 23% 45% 30% 12% 12% 1% -- 23D. A skilled worker 2019 80% 18% 43% 37% 10% 8% 1% 2% 2018 81% 19% 44% 37% 9% 10% -- -- Question 24 What is the impact of your inability to attract qualified candidates having on your company growth? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 18% 14% 17% 22% 22% 29% 27% 26% 26% 24% 22% VERY DIFFICULT 36% 26% 28% 37% 38% 38% 44% 40% 42% 46% 50% SOMEWHAT DIFFICULT 22% 24% 25% 26% 19% 19% 13% 16% 15% 15% 14% NOT TOO DIFFICULT 21% 31% 26% 13% 17% 12% 14% 12% 14% 13% 12% NOT DIFFICULT AT ALL 1% 1% 2% 1% 3% 1% 2% 4% 3% 2% 2% DON'T KNOW 1% 4% 3% 2% 1% * 1% 1% -- * 1% REFUSED 55% 40% 45% 58% 60% 67% 71% 67% 68% 70% 71% TOTAL DIFFICULT 43% 55% 50% 39% 36% 32% 27% 29% 29% 28% 26% TOTAL NOT DIFFICULT

Question 25 How are you navigating around the worker shortage? 36% DEVELOPING CURRENT EMPLOYEE SKILLS/OFFERING INCENTIVES 21% OUTSOURCING THROUGH SUPPLIERS 11% ACCELERATING AUTOMATION TOOLS 11% DEPLOYING LEAN PROCESS IMPROVEMENT EFFORTS 1% OVERTIME/LONGER HOURS 1% FINDING NEW EMPLOYEES 2% OTHER 5% NOTHING/NO SHORTAGE 8% DON'T KNOW 4% REFUSED Question 26 When looking to hire new employees, where is your need greatest? 2013 2014 2015 2016 2017 2018 2019 20% 22% 25% 30% 28% 34% 31% ENTRY LEVEL EMPLOYEES 19% 21% 23% 20% 25% 27% 23% EMPLOYEES WITH FORMAL TECHNICAL TRAINING 49% 47% 39% 38% 36% 30% 37% EMPLOYEES WITH ON THE JOB EXPERIENCE 6% 6% 6% 4% 4% 4% 2% EMPLOYEES WITH FOUR-YEAR COLLEGE DEGREES 4% 1% 4% 4% 3% 1% 1% OTHER 1% -- 1% * 2% * 1% DEPENDS 1% 1% 1% 3% 2% 1% 3% DON'T KNOW 1% 1% * * -- * 1% REFUSED -- -- -- -- -- 3% 1% NOT APPLICABLE/NOT HIRING

Question 27 What types of manufacturing jobs or positions are in most demand at your company? 2015 2016 2017 2018 2019 29% 32% 38% 42% 38% MACHINE OPERATOR 23% 25% 20% 24% 28% ASSEMBLER/MANUFACTURER/FABRICATOR 9% 9% 9% 8% 7% WELDER -- -- 7% 5% 4% FRONT OFFICE OR ADMINISTRATIVE HELP 10% 7% 6% 5% 4% ENGINEER 4% 4% 2% 2% 2% SUPERVISOR -- -- 1% 1% 2% SENIOR LEADERSHIP POSITION -- -- -- 4% 1% ENTRY LEVEL/GENERAL LABORER/LABORER -- -- -- 3% 1% TECHNICAL/SKILLED LABORER -- -- -- -- 1% SALES -- -- -- 3% 1% NONE/NOT APPLICABLE 22% 17% 14% 1% 3% OTHER 2% 6% 3% 2% 5% DON'T KNOW 1% 1% * * 2% REFUSED Question 28 What are some of the things you are doing to navigate around the worker shortage challenges? 2018 2019 61% 54% MAXIMIZING PRODUCTIVITY -- 38% INCREASING COMPENSATION 33% 32% TRAINING INTERNS TO BECOME EMPLOYEES/ON-THE-JOB TRAINING 50% 31% BEING MORE AGGRESSIVE IN MARKETING YOUR COMPANY TO POTENTIAL EMPLOYEES 25% 27% WORKING DIRECTLY WITH AREA TECH COLLEGES/HIGH SCHOOLS -- 1% PART TIME/TEMPORARY HELP 7% 4% NONE/NOT APPLICABLE/NO SHORTAGE OF WORKERS 1% 1% OTHER 4% 7% DON'T KNOW 1% 4% REFUSED

Question 29 When it comes to improving production and efficiency, is it more important for your company to focus on process improvement only, or focus on people development and process improvement equally? 19% PROCESS IMPROVEMENT ONLY 76% PEOPLE DEVELOPMENT AND PROCESS IMPROVEMENT EQUALLY 3% DON'T KNOW 1% REFUSED Question 30 In what part of the world do you see greatest increase in prospective business? 2012 2013 2014 2015 2016 2018 2019 20% 22% 17% 19% 18% 10% 11% CANADA 22% 19% 12% 13% 7% 21% 11% CHINA 10% 9% 13% 8% 10% 8% 8% EUROPE -- -- 7% 6% 5% 8% 5% MEXICO 6% 4% 2% 3% 3% 6% 4% INDIA 10% 13% 5% 4% 3% 4% 4% SOUTH AMERICA -- -- -- 3% NORTH AMERICA 1% -- 10% 8% -- 3% 1% ASIA (NON SPECIFIC) -- -- 4% -- -- 15% 19% UNITED STATES/USA 1% 2% 1% 10% 4% 1% 2% SOME OTHER PLACE 14% 19% 17% 21% 28% 10% 19% NONE OF THE ABOVE 10% 10% 12% 9% 6% 13% 13% DON'T KNOW/NOT SURE 2% 1% 1% 1% 1% * * REFUSED Question 31 On a different topic, does your company have a formal strategic plan for profitable growth? 2015 2016 2017 2018 2019 39% 38% 54% 53% 49% YES 59% 61% 45% 47% 49% NO 1% 1% 1% -- 1% DON'T KNOW/NOT SURE * * * * 1% REFUSED

Question 32 How does your company plan to grow? I'll read you a few options below and please tell me which comes closest to your current strategy? -We have a 1 to 3 year written plan and all staff know their roles and actions to achieve the plan. -We have a written plan, but that needs to be further communicated with staff -Our company has some ideas, but has not yet worked through what our primary focus is, and is not. -The strategy is strictly the role of the CEO. 2018 2019 27% 28% WRITTEN PLAN/STAFF KNOW THEIR ROLES 18% 15% WRITTEN PLAN/NEEDS TO BE COMMUNICATED 20% 16% NOT YET WORKED THROUGH 28% 32% STRICTLY ROLE OF CEO 1% 1% OTHER 3% 4% DON'T KNOW/NOT SURE -- 2% REFUSED 2% 1% NONE/NO PLANS Question 33 How many people does your company employ in all its facilities in Minnesota? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 86% 89% 83% 60% 61% 47% 55% 55% 58% 53% 51% UNDER 10 -- -- -- 15% 13% 21% 14% 15% 14% 18% 20% 11-25 -- -- -- 11% 11% 12% 9% 10% 8% 10% 9% 26-50 7% 7% 9% 5% 5% 8% 5% 7% 10% 12% 9% 51-100 -- -- -- 4% 2% 3% 5% 2% 5% 3% 6% 101-150 2% 2% 2% 1% 3% 3% 2% 2% 1% 2% 1% 151 TO 250 4% 2% 6% 3% 4% 5% 4% 2% 3% 3% 4% MORE THAN 250 1% -- -- -- * 1% * 6% * -- -- DON'T KNOW/NOT SURE * -- * 1% 1% * 5% 2% 1% * * REFUSED 86% 89% 83% 86% 85% 80% 79% 80% 80% 80% 80% UNDER 50 7% 7% 9% 9% 7% 11% 10% 9% 15% 15% 15% 51-150 6% 4% 8% 4% 6% 8% 6% 3% 4% 5% 5% 151+ Question 34 What are your annual business revenues? Just stop me when I get to the category that includes your company's total annual revenues. 2008 2010 2011 2012 2013 2014 2015 14 2016 2017 2018 2019 47% 56% 46% 50% 50% 38% 42% 47% 44% 45% 42% UNDER $1 MILLION 31% 23% 25% 22% 22% 26% 23% 25% 23% 24% 27% MORE THAN $1M TO $5M 22 6% 6% 7% 7% 5% 12% 6% 8% 6% 7% 9% MORE THAN $5M TO $10M

86% 7% 6%

89% 7% 4%

83% 9% 8%

86% 9% 4%

85% 7% 6%

80% 11% 8%

79% 10% 6%

80% 9% 3%

80% 15% 4%

80% 15% 5%

UNDER 50 51-150 151+

Question 34 What are your annual business revenues? Just stop me when I get to the category that includes your company's total annual revenues. 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 47% 56% 46% 50% 50% 38% 42% 47% 44% 45% 42% UNDER $1 MILLION 31% 23% 25% 22% 22% 26% 23% 25% 23% 24% 27% MORE THAN $1M TO $5M 6% 6% 7% 7% 5% 12% 6% 8% 6% 7% 9% MORE THAN $5M TO $10M 5% 5% 6% 5% 3% 7% 5% 5% 6% 6% 7% MORE THAN $10M TO $20M 7% 6% 11% 8% 10% 10% 10% 5% 7% 9% 10% MORE THAN $20M 5% 5% 7% 8% 9% 6% 14% 9% 13% 8% 6% DON'T KNOW/NOT SURE/REFUSED 47% 56% 46% 50% 50% 38% 42% 47% 44% 45% 42% UNDER $1 MILLION 49% 39% 48% 42% 40% 55% 44% 44% 43% 47% 52% $1 MILLION OR MORE

Question 35 Which one of the following best describes your company's primary business? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 37% 29% 22% 17% 26% 25% 18% 26% 12% 18% 24% PRECISION MANUFACTURING 16% 14% 16% 30% 13% 13% 14% 19% 14% 16% 23% PROCESS MANUFACTURING 13% 16% 15% 13% 14% 17% 20% 17% 20% 16% 15% METAL FABRICATION 12% 15% 13% 10% 12% 30% 14% 18% 11% 10% 12% AN ORIGINAL EQUIPMENT MANUFACTURER, OEM 4% 5% 7% 6% 4% 5% 5% 4% 5% 7% 5% PLASTICS -- -- -- 5% 4% PRINTING 4% 3% 6% 5% 1% 5% 3% 4% 3% 4% 4% ELECTRONICS COMPONENTS -------- -- -- 7% 3% WOODWORKING/WOOD MANUFACTURING -------- -- -- 7% 2% TEXTILE MANUFACTURING ------3% -- -- 2% 2% CABINET MANUFACTURING/CUSTOM CABINETS 3% 2% 3% 2% -- 2% 1% 2% 2% 1% 1% INFORMATION TECHNOLOGY, IT ------* -- -- 3% 1% FOOD MANUFACTURING -------- -- -- -- 1% AUTOMOTIVE -------- -- -- 1% 1% ANIMAL/AGRICULTURAL MANUFACTURING -------- -- -- -- 1% RECYCLING -- 1% 3% 3% 7% 4% 17% 8% 31% 3% 3% SOMETHING ELSE 1% -- * -- 1% -- * 1% -- -- -- DON'T KNOW * 1% * 1% 1% * 4% 1% * -- -- REFUSED

Question 36 How many years has your company been in operation? 2008 2010 2011 2012 2013 2014 2015 2016 2017 -- * -- * 1% * * 1% * 3% 5% 2% 1% 1% 2% 1% 5% 3% 3% 8% 6% 5% 4% 1% 4% 6% 7% 10% 13% 11% 12% 10% 6% 5% 7% 9% 13% 13% 9% 11% 14% 10% 12% 11% 8% 71% 60% 71% 69% 70% 81% 74% 69% 73% -- -- * * -- * * -- -- * -- -- * 1% -- 4% 1% -- 29% 39% 28% 29% 30% 19% 22% 30% 27% 71% 60% 71% 69% 70% Question 37 In what year were you born? 2008 2010 2011 2012 2013 5% 3% 3% 4% 3% 13% 15% 11% 9% 10% 37% 37% 35% 30% 30% 28% 29% 32% 35% 35% 14% 15% 17% 22% 20% 2% 2% 3% 1% 2% Question 38 Gender. 2008 2010 2011 2012 2013 76% 83% 86% 84% 84% 24% 17% 14% 16% 16%

81%

74%

69%

73%

2018 -- 3% 6% 7% 10% 73% -- * 27% 73%

2019 -- 2% 4% 10% 9% 75% -- * 25%

LESS THAN 1 YEAR 1 - 3 YEARS 4 - 6 YEARS 7 - 10 YEARS 11 - 15 YEARS 16 YEARS OR MORE DON'T KNOW REFUSED TOTAL LESS THAN 15 YEARS 75% 16 YEARS OR MORE

2014 2015 2016 2017 2018 2019 1% 3% 5% 8% 6% 6% 18 - 34 7% 7% 11% 10% 12% 10% 35 - 44 29% 26% 23% 21% 22% 20% 45 - 54 40% 37% 37% 36% 37% 39% 55 - 64 22% 19% 18% 17% 20% 22% 65 AND ABOVE 1% 8% 6% 8% 3% 4% REFUSED

2014 2015 2016 2017 2018 2019 86% 81% 80% 76% 76% 80% MALE 14% 19% 20% 24% 24% 20% FEMALE

Question C What is your job title? 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 38% 50% 43% 42% 41% 40% 40% 40% 40% 38% 39% OWNER 29% 30% 33% 31% 28% 36% 33% 28% 22% 22% 27% PRESIDENT/CEO/CFO/COO 16% 9% 13% 17% 12% 14% 9% 13% 20% 27% 19% MANAGER/GM 2% * 2% 1% * * 3% 2% 4% 4% 8% MANAGEMENT TEAM MEMBER 2% * * * * * 2% * * 4% 3% GENERAL OFFICE/HR STAFF 7% 6% 5% 4% 11% 7% 10% * * 3% 1% VICE PRESIDENT 6% 5% 5% 4% 7% 3% 3% 17% 15% 2% 2% OTHER

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Bemidji High School

FOCUS GROUPS

Bemidji, MN School Administrators and Counselors March 21, 2019 less about the people who are doing the jobs and more about the people who are trying to fill them.

There is an organization in Minnesota that projects the number of unfilled jobs in the state to grow from 60,000 to 250,000 in just the next several years. Some people have suggested this might create something of a regional recession. What’s your reaction to that?

• I just think as educators we have a responsibility to prepare students for success after high school, to be able to fill the different in-demand jobs that may be available—whether it’s in health care, manufacturing, or any kind of position that may be skilled or unskilled.

• For clarification, 60,000 manufacturing jobs? • Sustainable wage living jobs?

• So, the numbers aren’t too staggering to me just because I’ve seen all the reports. You go past four years of data, the demands are even more. And that’s where the academies are providing opportunities for our business and industry partners to have a pipeline of employees. At the high school, we’re only one small piece of that. But we don’t push for college as much, not like we used to, because seven out of every 10 jobs require a skill. So, it’s more about the skills and the trades and like [NAME] said, it’s our job to find the passion of our students and to support that passion.

Jobs. You know, there are 60,000 people who have “help wanted” signs out for positions they can’t fill. It could be McDonald’s, it could be your local rep creation. • I think as a principal, I would make it clear it’s about a living wage job. And if it was 60,000 of those, I’d be very concerned. Entry-level jobs don’t concern me as much. But one thing we talk about with our kids, and I have to believe other high schools do, too, is that living wage. You want to go through school and come out with something that can provide a living wage to you and also support your family. So, I would want that clarified.

• I would add that it’s our job to make sure we graduate well-rounded students who are full of options and able to live in the 21st century with adaptability and flexibility. As a school district, we can’t do much in terms of bringing in workers from other states, but I think if we increase our capacity to graduate more students, we are contributing and doing our part to help feed that workforce.

Well, they’re looking at it not from the perspective of the workers, but the employers. You know, the people who need to have bodies in place to make widgets or whatever they do. So, I get and respect your point of view on it, but the research is talking

them, have been acculturated to how do I get a leg up without having to earn that advantage?

• And it’s giving high school students the opportunity to develop their passions and learn their skills and their interests while keeping in mind all of the unfilled positions out there, whether it’s living wage type positions or part time positions. It’s giving students the opportunity to work and learn on the job. And creating a partnership for students who need to learn soft skills. Or who need to learn some of the basics. They might not really understand what their interests and passions are until they are hands on in the business, employed with a paycheck, with a boss, and with expectations to perform and execute. So, to find a partnership between businesses and school districts that allows for more internships and work experiences to develop those interests, I think that is effective.

• I get weary of the relationship you’ve brought up between private and public entities. What I feel could occur, or I get worried about, is if we don’t build a quality partnership, the private industry will say education’s job is to make sure students are ready so that they step right out of high school and into my employment, and they’re not ready for it. • So all of a sudden, we’re supposed to pigeonhole our kids at certain things that they’re not even ready or willing to do. And it’s because the private industry is telling us that we have to, or they’re saying, when I form a partnership with you guys, you give me a kid who’s not ready to work or ready to do the things that I need him or her to do, and I’m trying to

• We used to say 20 years ago as a kid in high school, I want a little extra money, and so I’ll work at McDonald’s or Burger King. And that was a part time job for us, too. But then as the economy took a bit of a dive, we had people with college degrees working there and that was their second or third job. So, those jobs weren’t there for the high school kids. And then we started to look for unique advantages for our students. How do we give them the skills to jump to the living wages? • We want them to jump into a living wage that’s sustainable. Maybe I don’t have to accrue $100,000 in college debt. A number I hear is $200,000 of college debt, then after I graduate I work two to three jobs to get out of debt before I can start saying I’m actually making a living wage. I think we’re jumping to the idea that I can go work for $80,000 driving a cement truck for [COMPANY]. Or, we can find a way to give them a welding certificate or a certificate through our construction trades program. With those things, they surpass those bottom level jobs.

run a business. And I get worried that with the large amount of jobs available, we start to ask what is education doing to prepare these kids for my particular field? Even though there are 160,000 jobs with an extreme array of what it is that we’re supposed to be preparing them for.

• When you say there are 60,000 new jobs, it’s very valuable to know where those jobs are. Having that data in front of you says we can steer those kids to the living wage. Then the question is how do you fill the void? Those jobs still available are at the very bottom tier. How do you fill them? I hate to say it, those are the jobs nobody wants. Our society has also taken a turn of believing you shouldn’t have to start at the bottom rung. I grew up feeling that way, growing up on a farm, that you start at the bottom and work your way up. A lot of our younger kids, because their parents want the best for

• So, do we get into a large complex war of what we offer kids at the high school level? Or do we get into something where we have to actually talk about what a partnership is between private and public entities? • At the high school level, when students are starting to look at opportunities and what their skills and interests are, exposure is so important. So many students don’t have exposure to what it truly means to be in the health field or a manufacturing

business setting. They haven’t had the experience yet, so they can’t draw from it. At the high school level, offering exposure is a way for students to see if it fits or not. For example, some students are going to take part in a CNA position and think, “Absolutely, I want to go into the health field.” Then they become a CNA and they realize, hey, this is not for me. Or a student goes into manufacturing, mechatronics and then sees it in more of a realistic point of view. Then, prior to graduation and going to college, they have a little more depth in terms of making those vital decisions.

back in the 80s.” And the guy looked at us like, “Why are you doing that? Everything’s CAD [computer-aided design]. We don’t do paper and pencil.” And we felt stupid at the time, but you don’t know what you don’t know. By having partnerships, we got all those drafting tables out, no more T squares, and I took six months to raise $10,000 and we put 32 computers in there. So, everything’s CAD. That’s one example of working with our community partners. And we have industry partners who were going to start their own apprenticeship program or their own internship program, but now that they know what we have, they don’t have to do that. There isn’t a partner that isn’t supportive of what we’re doing because we all want the same thing.

• On the news last night, they were talking about the EMT shortage. And I thought, well, I bet there are so many students who don’t even realize what an EMT is. I think there’s a lack of information and exposure to careers, and we need more effective ways to expose students to them.

• If you look at the secret sauce, it goes much deeper and further back. There are some different foundations getting very strong in our community.

• Effectively is the key, because sometimes there is a skewed Hollywood message. Kids think that CSI is totally different from what it really is.

• I think it’s numerous partnerships that happened 10 years ago or before to make this all happen. I think it was the different leadership that happened, what, over six years ago?

• Yes.

• [NAME] sits on the board of [NAME]. So, that partnership is there because of the leadership.

There are probably three districts that get attention as having high quality career programs that go beyond the B.A. track. Bemidji is one of them. What’s the secret sauce? How did that happen here?

Are resources still a challenge here in Bemidji? • I surely don’t feel that we have an abundance of resources. There’s been a lot of work done with the academies to try to encourage community partners to give to that program. But it’s not like the money is just flowing in.

• I think we have an excellent school-to-work program. • I think it’s our community, too. • Community has really engaged the school, and there is a partnership with our community economic development team. They see it as an issue not only for Bemidji. And they see if we can get our kids engaged here, even if they leave, possibly they’ll come back. And if they don’t come back, they’re going to speak highly of the area and know that this is a community that does good things for kids. So, it’s not only what we’re doing in the schools, it’s bigger than that.

• I think it’s a large web of 15 years of work and building. • It’s not as though we all of a sudden were blessed with a pot of money or a pot of broad resources. I think it’s the building of partnerships. We’re seeing a willingness within our community to partner in any way. And one of the things that you see is not every partner is just throwing money at the problem. They’re developing exposure programs. They are taking our kids on internships. They are coming into our school and doing trainings. So, you’re getting some financial resources, some raw resources, and in-kind training. You’re getting a lot of pieces where people are willing to be part of the educational process.

Are there formal relationships between the business community, community leaders and the school or was it more of an organic growth? • Each academy we started has a high school staff lead—we’re going to have 18 of them next year—and then our community partner or partners. We work in conjunction with our partners to decide which classes are required and which are recommended. We get advice from our partners on curriculum and what we should be teaching. An example of that from a couple of years ago is when one of my tech teachers and I went to our electronics team and he asked, “What should our outcomes be for drafting?” And they said, “Well, what are you drafting on?” “Well we’re doing paper and pencil T squares like I did

• When people talk about the college track, which is dictated by our state and federal government through requirements we are forced to adhere to, it’s to program our kids. And that’s still a program that’s geared towards a four-year college or even grad school programs. When you look at the push for college in high school—AP programs, the use of the ACT—that’s still geared towards the four-year track.

Does a lack of counselors create a lack of resources?

• Again, the guidance piece and the jobs and the frustration a business might have with school counselors comes down to resources. I really believe that. I believe as we get more resources, we have more community partners so we can have more resources put into working again proactively with kids, instead of it being a reactive system where we’re putting out fires. That’s going to make a difference in how we can better serve students, and it’s a guidance format for all of us—middle school and high school. We can start to work a little bit more, and not just with the kids who we’re needing to help with mental health concerns or social emotional issues, but also the ones who just want a little help and guidance, need some direction and want to talk to a manufacturer or talk to a business or do more things with the academies. Both [NAME] and I really love the whole idea of the academies. But it’s hard for us to get the time to really meet and discuss that and college plans with kids.

• Yes. • You could ask them. They’ll want you to define guidance counselor. • I think we do a lot less of the guidance and counseling and working with kids than we should. And it’s because of limited resources. We are hoping that we can move in a direction to get more resources, and we’ve been talking a lot about it this year. We’re very reactive, and we’re not able to be proactive because of numbers. It’s 1,472 students, or whatever the number is, and two counselors. So yes, we feel that resources are an issue. • That’s a big part of it. The funding formulas don’t allow for it to happen, and it’s an expensive decision. We have to think outside the box, and thanks to the career academies and to some brands, we are looking at doubling our number of counselors at the high school next year. So, that’s exciting.

• I mean, all of those things are important to students. • Our partners are there offering grant donors through which we can then meet the needs of these partners by drawing them into our plans with the money and bringing on a couple more counselors. What we also need are mental health practitioners and social workers. Unfortunately, most of the partners out there who are looking for that student pipeline to fill jobs don’t see that part of their mission is to write a grant and provide dollars for that piece. But we could capitalize on the need for counselors.

• So, our partnership with [NAME] and now we’re working with [NAME] has come into play. They’re coming to us and asking what can we do to help? And then we write a grant proposal. It will partially fund a counselor to work with freshmen students and encourage them to get in our academies. So, when they came to us and said, “We have $2 million. Write a proposal,” we wrote a proposal. • We have over 600 kids right now signed up for the academies. And we’re only a year and a half in. So, we have everything in place except for bodies—a team to work with our kids.

• That’s where I think you would have to define what a guidance counselor is. • Because they’re all there, right? All those things.

• I think student support is a vital part of education, not only to help students navigate through high school, but to navigate the future and get pointed in the right direction after high school. Because once a student graduates, there aren’t a lot of resources for them that necessarily point them in the right direction other than college in some form. And I know speaking from Bemidji High School, there are just under 1,500 students, and we have two school counselors at the high school. So, we have a 700-to-one ratio. And within that dynamic, we have bullying issues, we have suicidal ideation, we have mental health issues bubbling over, we have parent calls that are continual.

Let’s talk about that college track, the B.A. track. It has become cliché in these focus groups for someone to say that public high schools just want to be factories for four-year degrees. What’s your perception of this? Is there a prejudice that the four-year degree is the only way to a remunerative and satisfying career? • Well, you said nine out of 10 groups say it’s too high. We look at a kid who has to mature, and through the maturation process maybe he wants to be a nurse, a school counselor, a teacher, and you have to give him that chance to mature and all that. College helps a lot of folks mature. I mean, I want to push 80 percent of them to look at that.

• Getting back to all of the students who seek our attention in a day seems like an Olympic event. And when we feel like we can get caught up, it’s an amazing feeling. But it isn’t very often, if ever. So, I think students get frustrated because they know what they deserve. They deserve a little more attention than they get with support services. They need that. It’s a frustration because I think student needs go unmet.

• We’re not pushing them at the high school level. We already know our group that’s going out to a four-year college. We’re not worried about that. • Well, 75 percent of them are in music. That’s 75 percent right there. They’re in our first hour of music.

• I’m not making a value judgment here. I’m just saying what the stereotypical response from manufacturers is in these meetings.

• Having been a school counselor myself, I went through that whole stage of watching kids get pushed to go to college simply because that’s what the state seems to want us to say. At least, that’s the message I always got. So, rather than pushing them to go to college, we help them find their passion to make their own choice. That was the last generation’s answer, go to college. And we know our kids, in this area, are not in college or interested in college. Would you agree with that?

• I’d like to speak to that. Where do the poor kids go after high school? In the ‘60s and ‘70s they joined the army, they joined the Navy. And growing up in a farm community, that was my out, to join the military. Now you look at kids and you ask, “What options do I have for you to break the track?” Kids might be A students, they might be in choir, they might be in band, they might be in everything. But understanding what they can access, that’s the piece we provide that other schools are saying, “Well, what’s the difference?”

• Yeah, probably 60 percent. It’s hard to say the numbers because there’s been such a change, and I think even in the years I’ve been in this area, it was much more college focused than it is today. But the problem that we see is getting the parents on board with them, as well. Because we hear the stuff about the jobs that are going to be out there and the living wage jobs that are in manufacturing and in health careers and all of that. But it’s tricky getting a parent to not sit in our office and say, “No, my kid’s going to college.”

• I think the difference is we have somewhat of a generational gap than the rest of the state because we still have families where parents didn’t graduate high school, but they were able to find employment. What we are finding is we’re able to provide that understanding of access. We’re giving them the bridge of perseverance. It’s the idea that, “Okay, we’re going to have you take the mechatronics program that we have here, and we are going to lead you through it. We are going to support you through it.”

• We’re changing it in our district; we’re trying now to get that information out. We had a parent session at conferences last year where we had [NAME] come in and talk about things other than four-year degrees. And talk about what kinds of opportunities are out there so that parents would come. It was not very well attended because when a parent sees that topic they’re like, “Oh no, my kid’s going to college. So, I don’t need to go to that session.” We need to get the word out to our parents that there are so many opportunities that aren’t always the four-year plan.

• It’s the idea of knowing that some students don’t have parental support or family, some do. It’s pretty brave for them to step out to an 18-month program or a four-year college. Even the college bound kids, we’re helping them understand, “I’m an intelligent kid that took these college classes in high school, and I aced those classes or I did well. So, I understand that I belong somewhere”—whether it’s in a four-year college or working just across the highway here driving a cement truck.

• For every one job that requires a doctorate, there are two jobs that require a Bachelor’s degree, a Master’s degree and there are seven that require a trade. All of my field trips right now have kids step foot on a college campus. A lot of my kids in mechatronics, they get all F’s and D’s in a traditional classroom. And they get all A’s with the hands-on learning. The fact that they’re like, “I got an A in a college class” is important. So, it’s the mindset.

• When I got out of high school, I could go into a lot of schools and wrestle, but I had no idea how it was going to get paid for because my family was living from milk check to milk check. It’s the idea that we’re bridging that gap. We’re connecting those kids saying, “We have a partnership with that company, we have a partnership with that school. We’re going to help you get there.”

• And my philosophy when I was working at the high school was fostering that love for learning regardless of whether it was a trade or looking at a four-year college or being a doctor, whatever. But just fostering that love for learning and getting excited and passionate about a vision for yourself and a future. And I think so many kids get kind of lost in all of that. You know, what to do with life and all these bigger questions. And it’s kind of just going back to finding those interests and those things that they love and then opening the doors from that.

• It’s supporting their passions; that’s what it is. And if their passion is college, we support that. We’re saying, “You’re smart, you’ve shown it. Let us help you get there. Let us introduce you to that CEO of that company. Let us introduce you to that foreman or that construction site.” • So, once you have those relationships, many of our partners will actually pay our students if they go to school. I have one young man who went through mechatronics. He hasn’t graduated yet, he has one-quarter of a credit left. We got him a job at [COMPANY]. [COMPANY] is paying him to finish his schooling. So, when he’s at school finishing his credit, he’s making money. That’s how important it is. It’s supporting our kids’ passion.

• Developing that high interest helps kids think about, “Well, in order to take the academy classes, I know I need to pass math and I need to pass language arts.” But then beyond that, “If I knock those out, I don’t have to take AP trig. I don’t have to move on. I’m done, now I can go.” And so, my senior year might be all high interest courses.

• Interesting. I think one of the more fascinating focus groups we ever did was with parents.

students and education. Oftentimes, I don’t think that happens for whatever reason. Maybe it’s resources. Seven hundred students per counselor would explain it pretty well.

• It’s almost astonishing to us that half the parents said, “My kid’s going into college” and the other half said, “My kid tried college and he wasn’t ready. It wasn’t the thing to do.” And the big eyes of the parents who were so focused on a four-year degree, they were having light bulb moments. How do we, how do you, how do counselors and school administrators, encourage parents to have those light bulb moments? It’s a big question. Sometimes you can tell by asking, “Well, what is your kid really interested in?” But then you can also tell by reflecting on our own personal experiences. In my second year of teaching, I had a plumber come in on my day off, and he says to me, “So, what do you do?” I said, “I’m a teacher.” “Oh, I was a teacher once. I was a kindergarten teacher.” I had a big pause and then he said, “I make a lot more money now.” That was a self-check for me. He said he thought he liked teaching, but there were a lot of other pieces. I think that’s where the academy comes in, because students get exploratory opportunities before they decide a hard track of what they’re doing. What if being a plumber or an HVAC person really excites you? You know it’s something that you’re interested in. So, you can go from being that D student in a core class to an A student because it’s a motivator.

• Yeah, and we have tried to do some things in students’ homeroom settings and other things to break it down. It comes down to just needing to spend more time talking to kids. • But who’s to say the skill and trade is the end? If I go get a CNA certificate, I can get it for free through the high school. Well, if I’m going for nursing or going for veterinary medicine or something that’s related, it’s a resume builder and it’s a stepping stone. I can work as a CNA in the summers. And I don’t have to go work at a low wage. I don’t have to be a lifeguard at a pool. It’s good not only from the wage standpoint but as a resume builder. So, it’s a stepping stone, because someday you might run the company. You might as well have the foundation. I was surprised to hear a college president say a few years ago that 40 percent of her students need remedial work in either math or reading. And she said that’s a number that holds up nationwide. It surprised me. First, do you agree with that? And second, why do you think that’s true?

• And I think that sometimes with the exploratory you realize, “Nah, heights aren’t for me. I thought I wanted to be in the construction trades. But I don’t like getting up on a roof.” There’s a realization we’ve made before we’ve sunk a lot of money into it.

• I don’t know the statistic or if that is a perfect statistic nationwide, but I’m guessing if they said it was, then it is. • Yeah. But I believe the push for all to go to college in the past, and us not recognizing that some students just weren’t either ready or cut out and mature enough, caused some kids who weren’t ready to get accepted. And I think in some cases, because colleges are also trying to fill their admissions requirements, they’re accepting kids who maybe don’t have the skills and abilities to be able to do what they need. I mean, and I hate to say it this way, but it’s a little bit on the college. They might need to recognize that a lot of students need to have better than a D in high school Algebra II to be successful in college. Maybe they need to have a B or better.

• So, when it comes to educating parents and students, I think we need to do a better job of figuring out what our workforce needs are and what we did last year. We’re continuing to bring students over to [COMPANY] for a tour. We have experts there telling students about opportunities and schools that have these programs and how much they make. Giving students and parents that information directly from the experts has been one way we’re trying to convey the message. But another piece of the puzzle is the idea that four-year college means success, and somewhere that’s ingrained. I think we’re slowly getting away from it, but I think it still exists. And I know in college when I learned about career counseling with students, one big piece of the puzzle was assessing a student’s values as they relate to careers.

• If they look at their admission requirements, that would help that remedial rate. We have students who are superstars in math, but we also have students who really struggle to get through the state’s math requirements to graduate. But you know, some schools are lowering their standards because they’re trying to fill their quota, their admission requirements.

• So, with values there’s money. Is it money that you seek? Is that important to you? And if it’s money, well, then let’s look at careers that have high wages because it fits what you’re looking for. If it’s helping others, then okay, that’s helping others. And let’s look at what careers go along with helping others. If it’s prestige and recognition, what are your personal expectations of a successful career? And so, taking that individualized approach offers that information to parents and

• I would worry about their math failure rate versus how many kids have to take it. Because if they make it through and they’re successful, what does it matter if it’s 80 percent, 40 percent? If they’ve accepted them and they get through the class, well, the kid’s paying for the class.

• I think you’d have to work pretty hard not to get accepted into a school.

• And again, in our schools we’ve been hearing this for long enough or we’re saying it differently. When I’m talking about what you’re going to do after high school it’s college, career, vocational. I usually list a number of things, but parents aren’t there yet.

• And that’s what I’m saying. It’s more about the attrition rate and the success rate. • The other side of that statement is that maybe schools aren’t emphasizing those basic skills sufficiently.

• But even fourth and fifth grade teachers aren’t there yet. • Yet, we just met with a manufacturer the other day saying he wants to get robotics down to the third and fourth grades because you want to get them interested. I think you also have to get to the third, fourth, fifth, sixth-grade teachers saying, “Alright kids, pass the state tests.” They’re going to be college bound. That starts getting set early, and I’m not saying it’s wrong, but it does have an impact. When you go to school, you have to take two years of a foreign language. How long is that going to take to get weeded out? • • They were pushing PSEO and college in high school as early as 10th grade. I mean, I have a 17 year old at home, and we hemmed and hawed about it. When do you start pushing or when do you let them explore? I’m divided on that because sometimes I think it’s good for a kid who really needs direction to get some pushing, but then sometimes it’s good to let them explore and see what shakes out.

• Well, we are. • I think they’re definitely there. If a student wants to learn and is showing up and doing the work, raising his or her hand when they have a question, I think the opportunity to learn is definitely there. I think we have students who are not engaged because they don’t understand how the skills transfer. I think there’s a lack of an awareness and understanding that geometry is used on the construction site. And let me show you how. • And many welders use trig and calc everyday. They just don’t realize it as that’s the job. • Our school requires four years of math education where the state requires three. We require four years of science where the state requires three. So, as a board and as a district, we’ve accentuated being college ready. Now, because of what we’re talking about, there needs to be some adaptation to that at some point so that some of our students who have the three credits, the state requirement, can go into a tech track or something different.

• This whole last generation has been its own worst enemy in terms of small town America—farmers in small towns or business owners in small towns. All I ever heard growing up was, “You need to go to college. Get out of here.” We send them off to college, and they never come back. Now, our small towns are hurting. We should be saying, “There’s a career out there for you or maybe you could stay here in town.” A lot of kids grew up wanting to get out of town, but I don’t think it helped that adults were telling this to kids.

• We’re fortunate to have quality teachers at the high school. In our math department, we have 10 math teachers. When I was a small school principal we had two weak math teachers. My valedictorian every year had remedial classes in math. When they went to college, even though we had weak math teachers, they got straight A’s because they were good kids. In a small school, if you have a veteran teacher who’s weak and you’re stuck, there are a lot of kids going out there that are not ready.

• And that’s part of the narrative that’s changing. It has changed in Bemidji, too, over the last 10 years. That narrative is, “Yeah, go explore. Go get of here, but come on back and do something here.”

• We have certain bars or expectation for kids, but I think about are they on the college track? Are they college ready? What is the other track called? Because college ready is a marketing thing it sounds good. You’re college ready. What is your track? Was it tech ready? I think that has the connotation as a generation going to college when we’re not college ready. One conference I attended defined college readiness and included technical college, anything that was post secondary training.

• I‘m careful about saying college ready because I think we want people to be life ready. Let’s be ready for what you need to do in life. Where’s your purpose? Realistically, not every kid is going to college. We’re in it for education, right? That’s why we’re here. We’d like to educate kids, find that love for learning. But I’d like kids to be responsible citizens, be well rounded and able to hold a job and show up every day, be respectful towards the community members around them, and contribute to what’s all here in our community and society. I think that’s a success, too.

• Have you surveyed the generation of parents ages 38 to 48 on what they would say? Well, I bet they would say a four-year university.

• And when we say college bound, we mean to a two-year or four-year school. I think we cheated some of those kids out of their dream and their future because that might not be part

• It’s the mindset of college ready.

Another soft skills question is drugs. It’s something that manufacturers talk about. They use the “fogging” of mirror technique, but then the employee doesn’t pass the drug test. Is this true? I mean, do you have that sense in your student population?

of their vision at the time, but maybe it will be later on. But we have to allow that to present itself, too. To help create that pathway towards whatever that is for them, you know? And be patient with that. • We have to be careful talking about not being math and reading ready. Even conversations like this can have trickle down effects for us as educators. Bemidji is fully ready and willing to be able to have computer oriented programming come here and make an industry out of it, but other people and other parts of the nation don’t have that.

• Today, drugs are everywhere. • It’s only going to get more complicated as each state legalizes it. A lot of kids think, it’s just weed. Well, you’re an underdeveloped mind, you’re inexperienced in life, and you are changing your mood by smoking pot every single day. You can get your hands on cookies, gummy bears, wax, it’s all out there. But it’s hard to see, and it’s hard to catch. [NAME] was sharing a story with us that he went to a conference where they talked about how eight out of 10 issues in Colorado schools are now drug related. Before weed was legal, it was one out of every 10, or something like that.

• We aren’t just educating our kids to the best of our ability with reading and math or something along those lines. We’re also trying to prepare them for each of these things around here. That’s sometimes I think, with this particular question, where manufacturing people don’t feel heard—the idea that we’re not catering to their specific need. And that’s not necessarily fair.

• Because now it’s, oh, I’m 18 years old. I walk in, and I buy a handful of gummy bears. I go home. I throw them on the countertop. My brother walks in, oh, pops the gummy bears, puts them in his pocket, goes to school and hands them out on the bus. Before you know it, everybody’s high. I know I’m just kind of throwing that out there, but it is true.

But soft skills. Are they a problem in the schools? • There have been studies about soft skills, and they believe that a lot of that has to do with the immediate gratification created through cell phone use, the way the brain is being wired, and how technology’s presented. So, it’s that immediacy to life and to things.

• I think the prevalence of drugs comes back to larger societal issues. The adults have forgotten they have to be adults. It’s all about my immediate needs, wants, or desires, and that supersedes everything. We see that with some of our employees in the way they speak to kids and the way they speak with their employer. Talk to employers about attendance rates. They’ll all tell you that’s one of the hardest things. If I give you 12 sick days, you’re going to take 15. And that’s just about every profession out there.

• We have heard from community businesses about soft skills. So, we have that built into our academies, which is supposed to encourage some of that. But how do we change it? I think I would agree with [NAME] that the populations are way more into immediate gratification. If something’s not working, you’re happy to leave and to change it, and you try something new. • I tell my kids the marshmallow story. Everyone’s heard about the experiment that they did in the ‘70s. They put one marshmallow in front of a third grader and they said, “You can eat it now, and if you eat it, that’s great. That’s what you get. If you wait five minutes, and I come back and it’s still there, I’ll give you two more.” They did a longitudinal study on that and found out that 20 years later, the kids who did not eat the first marshmallow and waited for the other two were very successful in life. And it’s because they understood the point of delayed gratification.

• A lot of companies have stopped doing the Employee of the Year award because they can’t find an employee who has great attendance. • If you watch the interaction between parents and kids, we’re blurring our lines between friends versus parents. We are losing our maturity as a society. It’s more about what I want or need versus suffering and putting in the hard work.

• Part of what I try to teach kids is you have to work hard now. Just like that marshmallow, you want to eat it so bad, it’s just like candy, right? But you have to wait. It’s worth it, it’s like graduating from high school, being able to have a job that you love doing, taking care of your responsibilities. It’s all those valuable things, but it’s hard. It’s painful along the way. We have to teach kids that you have to have patience, and you have to have that hard work ethic.

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FOCUS GROUPS

Alexandria, MN March 22, 2019 On a one to 10 scale, how challenging is the skills gap and are workforce challenges affecting your profitability today? For the non-manufacturers here, give us your perspective on this based on what you’re hearing from your manufacturing affiliations.

• A lot of businesses aren’t that way. If you look at manufacturing, manufacturing is about 13 percent of the economy, but it’s a lot of the skeletal structure that society relies on. Looking at manufacturing, I think the same is true with the level of skills that you need. You don’t need it universally throughout the organization, so you can deliver skills in bundles and develop people and provide a career track for them. There are certain positions where you need to be highly qualified and highly trained with advanced skills, but that’s not the majority of positions. I’d say it’s 20 percent. So, that’s manageable.

• I’ll say three. There is and has been an impact, but when problems emerge, you come up with solutions to address those problems and work around them. A couple of years ago I’d call this challenge a four, but I’d call it a three now. It has the potential to become a two or a six. It sort of depends on inertial forces and things that we have given momentum to— recruiting people and training people and exposing them to the world of manufacturing.

• I would agree with him. I think as a company, we’ve done things to train up people into the skills that we need, as well as change our processes to hopefully not need as highly skilled of a person. Programs that run off of drawings have been developed, so a machine doesn’t need a machinist to run the part. They can jump a program in that’s auto-generating from that drawing and stuff like that. They’re trying to use technology to bridge that gap a little bit. But to find somebody that has a lot of experience? We don’t have a lot of those people.

• If we keep making progress the way we have, I think it’s something that’s discernible, but it’s manageable. I think right now we have some effective ways to bridge that gap. It really depends on the traction you get on long-term solutions for some of the more skilled positions that your company relies on. Is it more of a challenge in terms of skills gap or warm bodies?

• I would put it at more of a six. I think we probably have a higher percentage of skilled people. We’re hiring a lot of kids right out of college and trying to train them, but it’s going to be three years before they’re really that fully skilled designer.

• I think both. I think with a lot of businesses, there’s a stratum of reliance that you have. If you’re in an industry where 80 percent of your people need to be highly trained, highly skilled, highly evolved, and highly developed, then you’re highly screwed unless you can pay highly.

• I’d be closer to a five, but I would agree with [NAME]. Then again, our business is a lot of unskilled labor, so we don’t have as many skilled workforce needs. Hearing the other manufacturers around us who need welders and those types

of workers, they’d probably rate it closer to an eight because those are skills that aren’t coming out of high school. Those are dollars we’re spending that we wouldn’t have to spend if they’d come out of school prepared, if they’d come out with more industrial technology. I think we have adjusted, but we could be a lot more profitable and use those resources to do better things if the industrial technology programs in the high schools were there and there were more than two graduates who come in ready to work, able to go.

you might not be directly on the shore, but you certainly feel the motion and the movement and are affected by that. • I think one of the fatal errors leaders make is focusing on the problem and not the objective. When you focus on the problem, you lock in on a linear solution track. If you look beyond the problem and focus on the objective—instead of coming up with a two-dimensional “here today gone tomorrow” solution—you can figure out how to leverage this point of inflection in your business fortunes to not just resolve the problem and get through the moment, but actually figure out your long-term objective and how to move toward the objective. When you focus on the objective, not the problem, you come up with more alternatives and a more robust set of possible actions you can take. It’s actually quite liberating.

• Again, for us as a personal business, we’re a lot more unskilled. We don’t have the need for welders and machinists and those types of people. For us, the schools aren’t going to train them to build our product, so we do need that internal training resource anyways. As we’re talking about this, one thing to be clear on is we have great capacity to absorb unskilled labor, but you have to be able to develop skills. You can’t remain at the unskilled level. Skill bundles have to be developed on a continuous basis, because otherwise in today’s society, it’s hard for an unskilled, entry-level person who is permanently going to be categorized as unskilled, entry-level to have a career anywhere. That puts the onus on the employer to train, develop, and invest in employees to elevate their skills. Is it possible that there is a potential competitive advantage inherent in the worker shortage? • I don’t think so. I think you get a better night’s sleep, but I think ultimately the cosmic law of nature is nothing’s static. If you’re not progressing, you’re regressing, and if you’re regressing you’re dying. I don’t think a comparative sense of wellbeing is a workable strategy to win with. I think you have to create your own dissatisfaction to drive change. In absence of dissatisfaction, change doesn’t happen. Even if you feel that your current positioning is fine, it’s the recognition that it’s not a destination, it’s a data point on the line. You have to look for, “How do I become dissatisfied with my present state so I’m doing something to move forward so that we’re stronger, faster, better tomorrow?”

• I found it really interesting when you said that you don’t have a lot of need for individuals with high skills, but you’re spending a larger portion of your budget on training, right? Have you increased your spending on training over the last couple of years? By one percent, five percent, 20 percent? If you weren’t doing that, where would you be investing to bring the economy up? • For us, the training budgets went up probably five to 10 percent, for sure. We are just trying to get people the skillsets. If people came in and had the skills that we needed, those dollars could be spent on anything from capital equipment to growth, without needing other people. Not that we’re going to reduce the amount of people we have today, but being able to actually use that labor in other spots and continue to grow the business

• I think manufacturing does see a lot of adversity. Service industries that provide services to manufacturers learn how to surf, too, because they see the waves. Whether you’re an architect or a bank or a CPA firm, when tsunamis are happening,

will take some cost out of the product and allow us to grow.

related, but then the employer has to train you to do what the employer wants you to do. We don’t necessarily have training people, but these people get paired with somebody, and the unfortunate thing is they don’t all work. Now, you’re slowing this person down who’s a good worker to try and train this other person up, and based on your success rate, how much lost productivity are you experiencing?

• Honestly, we could also use it to give different training. As we’re looking at developing people throughout the business, we no longer need just a set of hands. You need them to have their heart, their mind, and their soul. Then, you can spend more time training on things like lean manufacturing versus how to do the basic skills. If you can get all 100 people in the organization trained on the opportunity to see those new other opportunities, it would catapult the business a lot further.

• Because there’s a little bit of a churn there, too. Not everybody you bring on and invest training in responds to the training. Do you have a formal training or is it more ad hoc? Is it filling needs?

• So, spend that money on automation but get them engaged? • Yes, exactly. Which helps you with retention.

• It’s more on-the-job training. You take an assembler and you put them with another lead assembler and see how they do. If we have multiple machines, then they can work on the machine next door and take a look back at the other one. You hope they have skills when they come in, but you have to train them on how we do things and how we tend the program. They’re working with somebody. Depending on how they do and their desire to learn, they will grow quicker. As one of you said, to get that person who wants to grow and wants to work hard, that’s what you’re really looking for. Then they’ll be trainable, learn the job, get paid better, and have other positions.

• I think the other obvious place where you’d spend it is higher pay. You do the training because the skills aren’t there, and after the skills are incumbent in the worker, you pay them better. If they started out with better skills that are useful to the business, they’d start out with higher pay. • Which would increase your production, essentially, because now you don’t have to spend that time training them. Now they’re already producing from day one. • Right, because the capability to deliver value through productivity starts you at a higher place, and that’s why if you’re bringing on people who have prior experience and prior training, you pay them more than the people who come in and have no prior experience.

[COMPANY] has established its own “university” for training. • We did something like that. We hired six engineers last year right out of college, and we ran them all through a university with three to six month training programs, and it worked really well. We placed them in every department. So, they had to machine for a while, they had to assemble, and they had to do shipping and receiving before they started drawing parts.

• You’re paying for the value they’re creating, so if they’re already ready to create value, you’re going to pay more. One college president, a tech college president, has said that there would be no worker shortage if manufacturers would just pay more.

Soft skills: How much of a problem and how do you solve it?

• Sure.

• It’s very much a problem. I don’t know how you train kids nowadays. To me, it’s more the parents than it is the schools. If you’ve made a commitment to an employer who’s paying you, the other side of that marketplace transaction is you agree to show up for work on time. We’ve changed our attendance policy multiple times to try and understand how to react to this.

• It’s a pretty basic economic principle. • You can’t pay more if their value isn’t there. • It’s ivory tower thinking. It’s not reality-based. Sometimes you say, “Shoot, if I could have selected a career that would de-link me from reality in terms of economics, I’d have more hair and less gray.”

• We’ve tried to be more flexible and then also went back to being more strict, and I’ll tell you, going more strict actually helped more.

• What about your company? Has the training budget gone up? Where would you invest those dollars if you didn’t have to invest them in training?

• It creates confusion. • It does, and people will push the limit and know where the line is. They can walk on the edge of that cliff for a long time before they end up falling off it. If you move that edge out,

• I think training has definitely gone up because you can’t go get a degree in what we do. You maybe get a degree that’s

Do you have a formal recruiting program?

a lot of them will push as far over to that side as they can get. By tightening it up, we’ve had better attendance, and the people who matter, the ones who are there every day, are now happier because people are showing up. If you go too lenient, your good employees get upset, and they’ll leave because they’re mad that you’re not taking care of the problem, which is employees not showing up there all the time.

• We have a buddy program that we use with new employees. We link them with a buddy trainer, so we have people who like working with other people. Have you ever seen Office Space? “I have people skills! Don’t you get it?” • There are people who understand the company, believe in the company, believe in its mission, believe in the products and solutions that they deliver to the marketplace, and they have people skills. They’re outgoing, and they want to nurture other people. They’re about something bigger than themselves, and that becomes an integral part of getting people far enough into the company long enough so they start to self-identify with it.

• I think it is a big issue, and when there are a lot of open positions, it’s going to continue to be an issue. People know that if I leave this employer, I have another one across the street. So, I think it’s something that you have to realize, and you have to give other things to those employees and make sure they know that if they want to be there, they’re going to have to be there or they will have to find a job somewhere else.

• Absolutely. We have buddy trainers and we have re-entry people.

• If the cost of entry is low, the pride in belonging loses a lot of value.

• You have to be intentional about it to make it scalable, sustainable, suitable and effective. That’s a huge thing, because you do have the heads-down people. If you can get those heads to come up a little bit and engage, you find out more. There’s room in companies for people to be successful regardless of what their predisposition is in that regard.

Can you do anything to address that? • Let’s make it a little more lenient, more forgiving, and try to accommodate so that we can get them far enough that they see the light—industrial salvation.

A young guidance counselor mentioned to us that he views one of his missions as trying to mold character among students. To try to make them responsible, have a worldview that says I’m responsible to other people, I need to show up at work. Is that doable at a high school level? Do you think that’s putting too much pressure on a high school?

• You have to instill pride in the workplace. There has to be a cost of membership, and if the entry level is low—in terms of what are you expecting of me, how can I have pride in my association with you as an employee—that’s what you have to manage them for, that’s what you have to lead them for, that’s what it’s about. I’ve seen that, I’ve read about that, and I’ve heard about that.

• I would love if they could take the time to do that. I just talked to a group of high school students not that long ago. As we were talking, I asked them a similar question about their counselors giving any career guidance. Are they pushing four-year schools? Are they talking about manufacturing jobs? And every one of them said, “I don’t see my counselor. The only people who see the counselor are the ones who have problems.” The counselors are dealing with the underperforming kids, the ones having mental issues, all that stuff. The counselors don’t even talk to the ones they should be talking to, like the kid who’s good with his hands but maybe not good at test-taking. If they had some counselors over there who could talk to those kids and say, hey, let’s get them out to a manufacturer and see what it is. Get their parents out to a manufacturer to see what it is, and explain, again, if they’re willing to learn, if they’re willing to work on a team, if they’re willing to show up for work, there are great careers in manufacturing without having to go to a four-year school or even a two-year school. They can grow through that company because the companies are set up to train individuals and give them the skillsets.

• Yeah, I mean, we don’t have a lot of entry-level positions. We see examples of people working those positions and then all of a sudden, they’re gone. Again, it goes back to trying to hire those people who want to do something. We bring people in through the temp agencies to load our machines. Some of them are retired, and they just do it part time and they love it. We’ll have the same people come back. Some of them are younger and maybe haven’t found a career. Some of them are relatable, and some of them are just going to have their head down and do what they’re supposed to do, and that’s fine. In order to engage those people and get the ones who say, “You know, it would be kind of fun to work here,” we ask about their background and their skills. And we try to incorporate that into pushing them to say, “Yes, I want a job full time.” They think they don’t have any abilities. You have to help guide them a little bit and see how they do. • Your incumbent workforce can do a lot to help in that regard. If they’re welcoming and they try to connect with people and create a sense of belonging, nurture them a little bit—that goes a long way.

• Seven hundred students to one counselor is way too much, but even when it’s 200 to one, those counselors don’t get a chance

to talk to those kids. And the kids don’t go to them because they don’t see any value. If you’re the one going in the room, everyone else looks at you like, “Oh, what issue do you have?” There has to be a change in that stigma, they have to add some more counselors in the programs, and they have to again build up the industrial arts. It needs to go back to the point where every kid has to go through some sort of hands-on learning to even understand if they like it. If their parents went to college, their parents are telling them, “That’s not a career for you. You need to go to a four-year college.” Not every one of our kids is cut out for a four-year college.

not trying to win, we’re just keeping the ball in play. That was all it took. What about the fact that students are not as well educated as they should be when they depart high school? A college president told us that 40 percent of students coming into her school need remedial help in math or reading or both. Is it your sense that students just aren’t exposed to basic academic rigor? • I tell you, reading a tape measure, that’s not taught in school at all. We have a lot of people who come out that haven’t even seen one; so, they don’t even know how to, first off, open it. That part isn’t there, but I would say the smaller school districts, I think, are doing a better job. I see that tape measure example more in a bigger city where they’re trying to move the numbers through. I guess so far, in our school district, I haven’t seen a lot of kids coming out needing a lot of remedial training. The ones that we’re getting aren’t the ones going to college, so if they were going to college, there could be some remedial needs.

• I’m curious, how many people at this table had a moderate level of interaction with your counselor in your school? Just raise your hand if you did. I’m not assuming that people didn’t. • I’m not sure there was one. • So, less than half. We had a counselor, but I never had one word with the guy, not one. I don’t know who he met with, I never saw him talking to anyone. The good kids, bad kids, medium kids, I have no idea. I knew where his office was, but I never saw anyone in it.

• I think it has a lot to do with parenting. My parents instilled fear in me that if I didn’t get good grades, something bad was going to happen. I was terrified if I didn’t finish my homework.

• That’s an interesting point. I have four kids, and I have one who is still in high school, and I think the kids these days relate more to their homeroom teacher, right? Maybe the concept of the counselor is to only handle the high and the low students? Maybe there might be some benefit in spreading that out so those homeroom teachers are doing more.

• A little fear is a good thing. • But then there were other kids whose parents didn’t care, and so they didn’t do their homework or they didn’t come to class prepared. • Then it’s up to the teacher to not allow them to pass and get through.

• I went to college because my father said there’s no future in the family farm. I went to school for accounting because my wrestling coach said, “I have friends who are teachers, obviously I’m a teacher, but my friends who are CPAs and accountants, they make more money and they seem happier.” So, that was it, that was my counseling, and I went and I got a degree in accounting.

• It’s interesting that counselors talk about a well-rounded person, and yet schools are cutting industrial tech programs or cutting music programs or cutting all the stuff that typically was the definition of well rounded. They’re pushing science and they’re pushing math, and they’re pushing things that are good if you go into it, but who’s going to use science after high school other than a small percentage of kids?

• A guy was talking about the architecture of a school’s gym—he’s an art guy—and he said to me, “You must be going to college, you’re a National Honor Society student. There’s no future for the family farm. What are you thinking about doing?” This conversation was during a high school wrestling match, and that’s when I decided I was going to college.

What are your thoughts about drug testing as a filter for recruiting new employees? In past years in these groups, that’s become increasingly urgent and more of a problem, and there’s always a scary anecdote. Has that been your experience? • You mean, as far as making sure we do a drug test?

• He influenced you.

Is it an impediment to recruiting employees? Do you do testing?

• Yeah, so I think you’re right. But just having the receptors out there and the ability to play tennis with a young person, hit the ball back, it’s just a conversation, you know? We’re

• You have to do a test, but it’s after the interview and if you get an offer. Then you do a drug test.

Is that a problem?

know which way to go, even with a good policy. We’re wasting a lot of resources and time because we don’t have good guidance, and it changes.

• I don’t think it has been. I’ve only been there a year, so I don’t know that I can say it has been.

• Plus, we have 11 years and 10 months to save the planet.

• I would say with the level of employees we’re hiring, it is. We drug test everyone, There are a lot of sophisticated tests where most people will pass the pre-screening to get in the door. We then do quarterly random tests, again, from a safety perspective. We don’t want anyone out there who has any issues when they’re working around saws and glass and everything else. On the quarterly randoms, we still catch people who have drugs in their system. We switch between a urine analysis and a saliva test so that they don’t know what to even worry about, and it’s always on a random day. We had people who would carry gum that supposedly beats the saliva test. So, that’s why we flip back and forth between the urine analysis and the saliva test.

• Exactly, yes. Say that again? • Eleven years and 10 months to save the planet. People keep saying 12 years, but I wrote it down to keep track. • Does this go back to your point earlier about a clear line? When you think about this generation in general, we’re trying to be more flexible, we’re trying to give everyone options. • I’m going to defend this generation. The Millennial generation is a great generation. The future of manufacturing, I think, looks better than it’s ever looked with this generation. It’s harnessing and adapting the people of their generation and your companies to one another, and I think the future looks great if we can keep working that over. I really admire and respect the hearts and the intents and the abilities of the Millennial generation who has entered the workforce.

• We lose individuals all the time. We always work with them the first time; we want to make sure that they get healthy. So, we put them through counseling and everything else. Most of them will get through that, but some automatically quit at that point and say, “It’s not worth my time and effort. I don’t want to give up the drugs.” So, they’ll walk away and go find a job across the street or somewhere else that isn’t doing any drug testing. • If you don’t drug test, that’s known.

• There’s a lot of hope because of technology. Only in education is technology a cost-adder. In business and industry, it’s a productivity-enhancer, cost-saver, and product-improver. The Millennials really connect well with it and can help you get further faster if you involve them strategically about what you’re trying to do with technology. They get it; I don’t.

• It’s a huge emerging legal issue—legal hazard for employers—because Minnesota now is medical and decriminalized. You can be medical, recreational, or you can be illegal. The whole issue of what your intoxication level is with marijuana and how long it lasts is an open question. It has really created a huge legal hazard for employers as they are left with, okay, what do I have to do to update my policy? You didn’t start a business so you can get nailed in court for your drug policy. That can be a lot of money.

• It produces so much real-time information. That generation is innovative, they’re talkative, and they want to be involved. What about automation? Is automation in your planning for being profitable, and in a way, to address the skills gap, the worker shortage?

• I think the deeper thing on the radar is without guidance from the government, it’s still federally illegal. The state’s allowing it, but there are companies that have been sued because the state has allowed it but it’s still federally illegal. It’s a safety issue. You don’t know how impaired they are because the drug stays in your body for two to three weeks. So, you can test and it’ll be there, but to prove that they were impaired or not impaired is difficult.

• For us, it’s a top two strategic lever. Is it an easier transition or a more difficult transition than you first thought when you brought your first robot in?

• Alcohol is easy. You can tell if they’re impaired or not. It stays in your body for a certain amount of time. Marijuana’s tough. As an employer, you also don’t want be on the other side where you have an impaired individual who then gets somebody hurt or killed. That’s going to be an even bigger lawsuit. So, you’re stuck in the middle and don’t

• I’d say it’s easier, but it’s sort of like chin-ups, back when I could do one. The first 10 were easy, the next five were okay, but you get down to the last two and they’re harder. You do have breakthrough moments where it gets easier. But you also hit these periods of extreme difficulty. You’re not sure how the heck you’re going to get through it, and

Is there even a fun factor related to this? This is a cool factor, right?

then you get periods of breakthrough and exciting progression and movement. I think it’s key for a lot of manufacturing companies out there. It is for us. I’m very happy with the progress we’ve made, but we have a long way to go.

• It is, honestly. We’ve actually set up tours to go over and watch one assembly line run because people from a different department want to see it. They’ve enjoyed looking at it, they’ve enjoyed seeing it, and, because we communicated about it, it turned out way better than I ever thought. There is excitement, people are talking about it, and it’s been a tremendous opportunity.

Employees are adapting to it? • I think on the spectrum of capabilities within your manufacturing, there are things that are clearly best done by automation and then there are things that are clearly best done by people. To the extent that you can achieve a great balance and a good fit, that’s where you really optimize your business’ potential. I think people inherently get it if there’s communication, because communication builds trust. You say what you’re going to do, you say why you’re going to do it, you say how you’re going to do it, you ask for help, you get people’s support for it and you make that movement. People can see it happen, it gets done, and everybody’s okay. In fact, we’re all a little bit better off.

• When farmers put in barn cleaners, their sons instantly saw the benefit. When we’re talking about a worker shortage or skills gap, if we put it into the context of cost of energy, cost of materials, health care costs, overall business climate, how does it fit? Where are the heartburn factors for you in those? • All of them.

I just heard recently on NPR a series about how robots are eliminating jobs and pushing people out of employment.

• I would say right now the cost of turnover is high. It’s become such a way of life. Although, that one probably doesn’t give me as much heartburn today as health care costs. As we continue to look at compensation, we have to decide how much you put into health care that you can’t put into wages.

• The ATM is the perfect example. • That’s why there are so few people on farms. Should we all still be on the farm with the Belgian workhorses? In terms of human condition, this is one of the safest, best times to be alive, even if you’re poor.

• Again, there’s a limited amount of dollars that are coming out, but you still need a profit for people who invest in the business or you won’t have a business. So, everyone is thinking all you’ve got to do is pay more in wages or pay more compensation. But that ultimately kills off the business, and now you have another 100 people who are looking for work somewhere else. You have to balance what goes into compensation or benefits versus what goes into wages. We are trying to balance that and not pass it off on the employees because it takes dollars out of the kitty, and you can’t raise the other wages as much as you’d like to.

When you’re talking about automation and robotics and things like that, is there a fear among your employees that you’re out to displace them? • If you communicate up front, they understand you’re not automating to lay off half the workforce. You’re doing it for growth and it actually will create more job opportunities, which will create higher level positions and a better career path. We just put in a large piece of capital equipment that took us from 12 people down to two. It’s been the most exciting thing for the whole team because we communicated a lot up front, we showed them what it’ll do, and what those 10 people are going to be able to do later. We had a lot of fear when we said 12 to two. Everyone’s going to think, “Oh my gosh. All you’re doing is removing 10 people out of the organization.” We didn’t. We’re still hiring because it took cost out, allowed us to grow the business, and people saw that. It allowed them to also understand, “Hey, this is where we want to be and where we want to go.” So, if you don’t tell them what you’re doing, they’ll create their own story, and that story is never better than what you’re going to tell them.

• We have learned how to deal with turnover. We haven’t struggled in our industry to find new workers, it’s just we have that cost baked into the business that, again, if that goes down, more money could go into wages or health insurance. I don’t know if I’d rate any of them as a higher heartache. I think they all tie, and they all tie together. If health insurance came down, we’d put more into wages, which would ultimately affect turnover. • The mandated sick pay law is up to 24 weeks a year. I certainly hope it gets defeated, but the beating of the drum for it will never go away. The whole green energy thing (we have an energy-intensive business), and especially the extent the state is slashing its own throat, really creates

a competitive imbalance between manufacturers and the State of Minnesota.

tems and the people and the technology to convert on that, you’re going to go broke and be tired. I’m getting a lot of money, but I’m not keeping any of it. Every dollar I make, I give up a buck three. How long can you do that?

• In January when we had the super cold polar vortex, we were very close to crashing the energy grid because they had to turn the wind turbines off to protect the generators. When you have power go out in major population centers where it’s that kind of cold, people die. We actually have relatively available, affordable, and abundant energy. Where the new governor wants to take One Minnesota would be catastrophic to our business as a manufacturer.

• I think for us it’ll be the growth of our leaders. I mean, obviously we’re going to do all that stuff, too. Our process improvement has to get better, we have to get faster, and we’re going to go after more market share by reducing our lead times. But [COMPANY] has grown so fast that almost all of our leaders are younger than me. You know what I mean?

• Some of the things we’re doing with energy, and with pay and benefits, is munificence by proxy because the government bodies are mandating to employers, “You’re going to do this.” I know with the sick pay it’s going to be paid through a tax on the employee and on the employer.

• You’re a kid. That’s so cute. • Everyone tells me I’m old there, so I can’t figure it out. • There’s a lot of development there, right? They’ve moved up through different positions and now, oh, I’m a leader, now what am I supposed to do? They’re smart, they’re intelligent, they deserve to be there, but where are they taking the company? What’s next, what direction are we going? What do you need to be a better leader?

Last issue. What’s going to drive your profitability in the near term? Is it new customers? New products? Developing your leaders? Or, is it more comprehensive strategic planning and formal strategic planning? I know those aren’t the only options, but where’s the growth? • In our business, I’d say it starts with a formal strategic plan to understand which one is going to drive the business. In our formal strategic planning for the next three to five years, a lot of it is growth, new customers going out, and more market share growth. I don’t think our market is going to grow where it needs to. So, we’ve got to go out and look at the lean initiatives we’re doing and our operational efficiency so we can get it there faster with a better quality and less cost. We’re not doing the operational efficiency to just improve margins; we’re doing it to be able to get the growth and grow the market share, which then turbo-charges your bottom line results.

• We created a formal leadership training program in September of 1993. We wanted to grow. How do you grow without having developed people who understand and possess leadership skills? Leadership is a skill that can be learned, improved, and built upon. If you don’t have that, then what are you growing for? • You want your other employees to have that aspiration. You want them to say, “Hey, I want to be that person someday.”

• He’s absolutely right. You’ve got to start with the strategy or have real luck. I don’t have a strategy, but man, am I lucky. • So, it starts with strategy, but the investments you make in people and in technology are to grow profitably. Those things are the conceptual framework that profitable growth is built on. The things you do, the strategies you have, how you deploy people, how you deploy technologies, and how your high-level processes and business systems work supports and confirms growth. Profitable growth. • Again, it’s the cosmic law of, “Oh, we don’t want to grow, we’re just happy with where we’re at.” The Sleepy Hollow strategy. “I don’t want things to change, I want it to be static.” If you’re not pushing for growth then you’re going to shrink. If you’re not pursuing the right growth that isn’t profitable, and you don’t have the strategy and the sys-

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AGCO

FOCUS GROUPS

Jackson, MN March 26, 2019 How’s business?

another facility in Nebraska. A lot of that has been e-commerce driven with the products we make for UPS, FedEx, and conveyor systems. And then we make a lot of ground support equipment for airlines, and airlines have been doing well and growing a lot. After 9/11 they kind of pulled back. But now they need equipment, and we’ve been riding that wave, as well.

• It’s fantastic. For the last three years, I think we’ve seen double-digit growth. The biggest complaint right now is building expansion. The price for land is inflated because we need it. And hiring people is another challenge. To what do you attribute the growth? New products? New customers? New markets?

What do you envision for growth this year?

• All of it. I think one of the biggest things for fireplaces is that the DIY [Do It Yourself] rage has happened. Before it was new builds, which was really great, but then the housing market crashed. That was tough for business. Now with groups like Property Brothers and things like that, people are updating their houses. They’re not building a new house, but they’re updating it with a fireplace, and that adds more value to their homes. So, we’re really seeing some great growth.

• This year will probably be flat on the growth just because FedEx and UPS are kind of pulling back. And Amazon entering the market and starting its own fleet makes it harder. Is that a potential market for you? • It is a potential market. But they’re demanding. If you get in bed with Amazon, you do crazy things with lead times; so, we’re cautiously working with them.

• The ag industry I think probably bottomed last year. For us, we’ve been building under the industry for the previous couple of years. Now we’re back and up double digits from where we were a year ago. I would say inventory corrections over the last couple of years helped. And I think it’s still a tough industry out there, so I would expect it to continue to grow going forward.

• We’re expecting probably 10 percent growth this year annualized. We’ve been waiting for an air permit for two and a half years now. In the state of Minnesota, it’s an extreme challenge for us. We are proud to be an innovative company, and every change we make takes an air permit modification, which is years in the making. It’s through EPA, but the State of Minnesota works on its behalf. For a couple of years we’ve been trying to shorten that process because it’s really prohibiting our growth in the state. And we’re not building any more plants in Minnesota because it’s so prohibited.

• We’ve been growing. We’ve gone from 330 employees as a company to 800 employees in six years. This year’s off to a little slower start but still definitely growing. We bought

Where will you go?

can get something worked out on the trade agreement, that’ll open up soon.

• Typically, we’ll go to Iowa, South Dakota. We’re building a new plant in Indiana right now. I mean, it’s a month’s process to get an air permit there, and it’s a year’s process in Minnesota.

China deals in big numbers. • Pork is one of the main dish products in China. And the people there are getting desperate. We’re getting phone calls weekly from Chinese brokers. They’re anticipating that something’s going to break real soon. And we’re one of the few plants in the United States with a requirement that the pork is ractopamine free. All of our hogs are ractopamine free, so the demand over in China from us is going to be huge once that breaks open. And it’d be just another market on top of our retail on our Japanese export.

So, your growth here in the state is directly attributable to regulations at the state level? • Yes. It’s very frustrating. And for growth overall, we’re also hampered by China right now with exports pretty much being shut off there. We produce ethanol, but also valuable co-products like dry distillers, grains, etc. And China’s basically shut off the feed market there for distillers. Some of it pours through the border from Vietnam, but more or less it’s been shut off. China has a 10 percent mandate as well on ethanol, and that can’t be produced domestically. So, it was a good market for us to export ethanol to China. That’s all been shut off. I think a lot of it’s coming out of Brazil now. Does it have anything to do with the trade discussions going on there? • Absolutely. I mean, we know China wants to punish the American farmer because they believe that’s who voted Trump in. So, they think that’s going to be a pressure point. They’re doing whatever they can to make life miserable for the Midwest. We started operations in May of 2017. We’re at about 500 people right now total. We just launched our retail label product. It’s going out in stores right now. We have a major grocery store chain in Iowa. We’re slowly ramping up.

How about others? How is growth? • [NAME] is absolutely right. Anything that jumps in the way of the farm market and dampers that is really going to put a kibosh on us. We’re probably at 50 percent of sales this year compared to last year. Last year we were full. We couldn’t turn another wheel because we had so much work to do. And now this year, our 50 percent is all due to price. And it’s due to questionable government regulations and everything else that’s out there, like the Chinese. The farm market right now is real volatile. A lot of us spent a lot of money last year. And then all of a sudden, they’re drawing everything back in, and it just makes it more difficult with your manufacturing and construction service.

To what do you attribute that growth? • The owner is really invested and really wanted to make this work. Probably the biggest thing is we’re more of a specialty core operation. We’re actually processing 80 percent of our processes. All of our core producers are based out of Minnesota. We’re able to make USDA claims on the all-natural certified product. We have a lot of store chains from Minneapolis, Iowa, Chicago, Texas, and possibly the Southeast that are very interested in the program. The export level is pretty good right now. We’re sending 10 to 12 loads a week into Japan. Their tariffs right now are 75 percent. We’re hoping that if we

How do you feel about this year?

ees. And we want to add roughly 50 people in the next five years. In Lakefield, Minnesota, that’s pretty tough. It’s a lot of people.

• A mixture. Anytime you have a record year by the end of March, you know you can’t do that anymore. Then the next year you’re halfway there, and you wonder what changed. The market was down last year, but there was still a lot of money out there. I think what’s happened is a lot of them spent their money. Now they’re waiting for the price to come back so they have some more money to spend. In the ethanol business, my guess is the guys who are raising pigs are moving their rations around from corn to DDGs and back again depending upon which price is greater or which price is less.

Do you think about growing elsewhere? • We have. But with the manufacturing, everything’s built inhouse. We get the raw steel in, we build the fireplace in-house, and then we send it out. To build it somewhere else would be a big expense and require a lot of training. I mean, we have thought about it, but I think our first thought is to just stay here and make it work.

• The service industry is still really great. When it comes to fixing ethanol, grain elevators, or feed mills, they still break down, and you can still fix them. That’s been good business.

• It would increase your cost because you’re going to do hiring practices that you wouldn’t normally do. We bring in people who, based on their resume, you wouldn’t bring in. But if they pass a background test and a drug test, you bring them in and you keep one out of 10. So, you’re constantly putting the work load on the leads and the training on your HR staff. We bought a facility outside of Minnesota just to buy the workforce with no products to outsource. You beat the bushes for people who have capacity, and you outsource part of your production which costs you more money to keep up with the demand and growth.

How’s [COMPANY]? • Great. I think I know where our lack of being able to hire employees went. We had an acquisition a year ago, and those products are gradually coming to us. So, our growth is from the acquisition. And then we also have organic growth with new product development. We’ve never experienced the inability to hire temporary employees because we’re seasonal. We hire about 200 to 250 seasonal employees from January 1st through May 31st.

Are you looking for people with certain skill sets or just warm bodies?

Let’s talk about the worker availability. To what extent is the growing shortage of employees constraining your ability to grow profitably?

• Anybody. I mean, welders aren’t too hard for us to get. With any type of skill, you’re forced to train yourself to inspect somebody. It’s like planting a tree: You get a little fingerling and then you go to work watering it and fertilizing it. You hope they stay and that’s another challenge, loyalty to the company.

• It’s affecting us. We plan on growing quite a bit. Lakefield is a small town—1,600 people. There is no housing, and there is absolutely no daycare. So, that’s one of our biggest things. I just had a baby, and I had to put my name on a daycare waiting list. Younger families, if they find out there’s no daycare, maybe wouldn’t move somewhere like that, even if there are jobs there. Housing in general is tough. It’s expensive. And when you have entry-level workers and no housing to buy, they’re not going to build. They’re going to move somewhere else and work at one of your guy’s manufacturing plants.

• So, [COMPANY] has similar benefits which we think are good for the area. But again, keeping those employees, the desirable employees who come to work every day and have a good work ethic has been a struggle. We do have welders. I think we train our own. And I think we’re going to talk to Mankato or another school to get better training for our welders.

What do you do? If there’s no housing, is there a collaborative to do things? Or are people moving far away?

• But, you know, it’s sad, because if those numbers are right, manufacturing’s going to decline because we can’t support it. Which is the bigger challenge, to attract or to retain employees?

• Well, I’m working with the city right now and trying to figure out different housing. We’re going to have an employee boom here in the next five years. So, we’re trying to think ahead of how to make this work.

• Retaining is hard because all the people who are in manufacturing are around 45 years old, which means there are quite a few people going through the retirement phase right now. And that’s what we’re struggling with. We have to try to replace them with people who have that work ethic or that desire to be in manufacturing.

Employee boom in demand or supply? • Demand. Demand for sure. We’re going to be adding on to our company. Right now, we have about 150 to 160 employ-

Why?

• I think the hardest part is to get them to show up, and to show up on time per shift.

• Because they just don’t want it in the neighborhood. We looked at five locations, and with every location you’re going to have opposition to multi-family. But it’s market-rate, multi-family so it’s nice. And we need that. I’m hearing that from everyone at the table, and we stress that to elected officials. But when it goes to a vote in two weeks, it’s going to be a 3-2 vote.

Is that a certain demographic? Is that young people? • Yeah. If the shift starts at 7, they think nothing of coming in at 7:30. It’s no big deal. • We spend a lot of time, too, with the local school. We’ve also been spending a lot of time and effort to develop a manufacturing program. Their teacher is right out of college after studying agriculture and has no idea about manufacturing. So, we brought him out to spend the summer welding for us. We trained him to weld and run the weld program. This year we did an “Introduction to Manufacturing Engineering” class. The kids spent the whole semester with us going through everything—production planning, purchasing, shipping, receiving, painting—just to open up their eyes.

So, they don’t equate housing with jobs? • They do, but then they get swayed by all these people who call from that neighborhood saying, “Oh we don’t want that there. You can put it over there.” And we’ve been looking at that for two weeks. • We had two engineers turn down jobs because they could not find housing in Windom. We have seven engineering openings right now. Well, six. We just hired one. But that person’s coming from Spirit Lake and is going to commute in. On the south side here, of the tri-county area, is where a lot of the hired jobs are going to be going to, or where they’re going to be living, as far as that goes.

• And the challenge becomes a lot of schools want to do it at the junior and senior level. Well, most juniors and seniors already have their minds made up. So, we’re working hard to get at the younger ages. If we get five people a year to come and join us, it’s five we wouldn’t have.

What’s your take on that in Lakefield?

• The school is part of the problem, you know. Students are told to go to college, and all these programs have died, and they need to be rebuilt in order for that to happen.

• The big thing that I’m hearing, at least when I talk to a lot of the areas, is talent recruitment, specifically on the assembler side. But one thing that we haven’t talked about is the engineer side. So, in the small-town areas, higher skilled employees are harder to find.

• As of right now, we’re trying to work with our lumber shop and the city about getting land and doing some cheaper housing. We’re trying to do cheaper housing that would be around the $100,000 range. It would just be a slab, two bedroom, one bathroom, smaller house. But there’s somebody who I’m trying to contact who worked in a smaller town in Iowa and builds smaller houses, just to get people in. But the city of Lakefield has been really great to work with, and this is something that they understand that we need. They want to bring people to Lakefield. That’s the biggest thing.

• So, there are some of those areas where it’s not the recruitment side but the retaining side. We’ve been talking a lot today about finding people we can pick off the street. You have a lot of turnover in those areas, but they’re having a hard time keeping them, too. The housing side is something that I think is a different struggle. Just getting any housing up, especially when you’re trying to find land, is difficult. So, trying to find and expand at the same time is something that we’re seeing.

• It’s important to call it family housing, not workforce housing. Because then you’re going to run into that “not my backyard” argument. I’m working to get different development for different things going on. We already have a subdivision here. We have lots for $5,000. But if it’s workforce housing, then they’re going to start getting really antsy with that. “Well that’s our nice subdivision. This is where we want the nicer homes.” But there’s a need for another type of housing.

• We need to do a better job at getting everyone at this table to talk to our elected officials. Worthington has its 72-unit, multi-family building shut down. It went through the first plan and zoning, and it passed. First reading in council, passed. Second reading, it didn’t pass.

• Well, then you need to just get it done. The thing is we have a development in place right now. I go to the local developers and ask, “What can I do to get you to build in 2019?” They are just too busy. So, it’s going to be an outside developer coming in. And when you have an outsider developer coming in, then everyone’s pushing back and going, “Oh! You’re not working with your local person! You’re going to let this guy come and build? You’re giving him a good deal? Why are you

Let’s talk about how this all affects economic development in a community.

giving that guy a good deal?” Because no one else is doing it.

loves automation, instructed the engineers, “Any piece of automation that can be used, get it.” You reduce your labor, and your efficiencies and consistencies are much better.

• Yeah, right now in Marshall, we have some brand new apartment complexes going, just because the EDA and the city realize that we do need more housing, and they’re fixing up other housing. So, we have a lot going up, and we have developers. The city is selling a lot of lots, and the local lumberyard is building. They can’t build them fast enough. The housing market is crazy in Marshall right now, and stuff’s going on the market and getting sold the next day.

• Automation’s part of it, if you can’t do it. But your products have to be suitable for that. How much of your productivity increases will be due to automation in the near term? Are you looking at doing some things? • We have some automation. But just keeping what we have busy is a challenge. A mixed portfolio product is not suitable for robotic welding, so then that investment sits idle. And people get leery. “Why did we even buy that machine?” Obviously, with laser automation, you can always keep a laser busy, but when you get into other subsets of automation, your parts have to be consistent. So, we don’t have a lot of that opportunity.

• Oh yeah. Even in Lakefield. • Yeah. Daycare’s really big. • In Marshall, we have some daycare expansions as well because that is an issue. So, they’ve been working with local daycare centers to get expansions. We’re actually doing one or two expansions on daycares right now.

• You’re right. I mean, we have a bunch of robotic welders. And because we’re seasonal, the utilization isn’t where they want it to be for the investment that they paid. You need to put the work in during the off-season, so how does that work?

• Yeah, Lakefield doesn’t have centers, and we looked into the price of that. It’s like $3 million to make a center. We’re working with churches. • Yeah, Windom doesn’t have a center. Can you believe it?

• I think you’ll see automation grow more than people think, and there will be a point where you’re still going to be better off automating if you can’t find or attract the workforce so that you can grow your business. I think you’re going to see that shift there. We’ve looked to more funds in automation in the future. And you’ve already talked about skills gap, but where we were a year ago looking at it, we have over a hundred welders. All but three are 55 years old or older.

• I can’t believe that. • That’s outrageous. • In Jackson, we do have a center, and I’ve had conversations with her multiple times. She, in theory, could try and expand based on her licensure and try to do the facility. But she says she would never build or get the employees. Even if you get the center built and such, you’re going to have to figure out how to retain those employees. How much are you paying versus the child care center? It’s definitely a challenge for them.

• I think when you get into those very technical skills, that’s a bigger issue. Here’s a cliff five, 10 years out. And if you’re not in front of it, we’re not going to replace that skillset. How do you get in front of it?

Are workforce issues your top concern? Or not?

• Well, automation’s going to be a piece of it. The other, I’ll say, is creative recruiting short term to build the pipeline, which we’ve already talked about the need for high schools to get in there. I think that program needs to be nurtured and developed. I know we’re in with a few community colleges. That really needs to blossom. I know we support and fund five robotics programs. Those are programs we need to grow and get kids interested in—the technical work-with-your-hands type stuff.

• We’d like to expand, but we’re landlocked. So, that’s a concern we have, as well. We do have an off-site warehouse which we could expand. There’s land there. We could expand our operations, but then we don’t have a parking lot. And we thought about, “Well, do we bus everybody in? Have them park by the warehouse?” It’s just crazy. Are there opportunities in the worker shortage? Will the companies that manage it best have a market advantage over those that don’t?

• I would say the biggest challenge for us as manufacturers is not the kids; it’s connecting with the parents and particularly the school teachers and administration. Because their perceptions of manufacturing are from about 40 to 50 years ago.

• Yeah. Our plan is as fully automated as you can possibly get for our industry. And if you compared us to another pork plant, it would take 800 to 1,000 people. Our owner, who

You still worry about that?

We couldn’t build that at each individual site. But that’s been helpful.

• You would not believe the number of teachers who come through and say, “I can’t believe what manufacturing today looks like.” So, there’s a lot of technology and opportunity and you would think some of them view it as a dirt floor with someone losing a finger every week.

• [COMPANY] here in town, they have 150 employees currently. They’re expanding. But they have a training program that offers 25 different skills ranging from five cents to 25 cents for a worker to gain per skill. That’s something that they’ve implemented, and they found it very successful for retaining.

And a dull, boring job that doesn’t pay.

Is the cost of health care a continuing concern?

• It’s not that way at all. But the perceptions are poor. And they’re steering all these kids to get four-year degrees, and there’s a good chunk of them where that’s a mistake.

• It’s stabilized. The last couple of years it has been stable. • Yeah, we’ve fallen flat the last couple of years, too.

• These are good jobs to have in this area.

How about trade issues?

• We do a lot of robotics, too, because we have so many engineers down there. But perceptions need to evolve a little bit.

• We bring castings and other piece parts in from China. And it did cost the company a big amount on the bottom line this last year. So, it did affect our profitability overall as a company. We don’t feel that in our plant. It’s kind of a line item that gets taken at the top level. But our company’s strategic plan is, “Well, if that’s the way it’s going to go forward, we need to figure out that supply base in the United States so we don’t have that issue, or in Canada.” Our supply base is also experiencing labor shortages.

Are you seeing incremental improvements from educators? • I think it’s evolving, but you look at the cliff that’s coming, and you have to develop this pipeline, and there’s still a gap there. It’s going to have to get filled in with automation or what I call creative recruiting. I don’t know if that’ll be successful or not, but I think you’re going to have businesses forced into, “How do I get large numbers of people here to support the business?” It’s a huge barrier to separate your operation and not grow in one location.

• We’ve been trying to use it to grow as far as our ag side goes in Ukraine or Russia. In Ukraine, where crop prices are better, the markets are evolving and there are opportunities there to build infrastructure in the company. But we spend a lot of time on our ag line trying to, knowing where we’re at in North America, expand.

How much of it is due to basic lean operations? • Everybody’s on that path. Depending on the company you’re at, there’s more or less opportunity there. And I think you’ll see that pursuit is hard, too. I think more of it’s going to come through the capital than just the creativity. Most manufacturers are into that and have programs to drive that.

• I know a lot of you guys are having ag problems, but what about steel? Are you guys having problems with steel prices? • Not directly, but indirectly. I guess it kind of prohibits making some projects.

• I think lean is going to benefit all of us in the creation of standard work. When we have our new employees, the training is a lot more nailed down. You just can’t have the training that we’ve had in the past such as, “Come here and watch me do this.” No, it has to be written down, detailed, standard work.

• I guess fireplaces are made from steel, so we’re seeing a lot of that. One-third of our customers are in Canada, and the trade with Canada right now is tough. It’s stabilized but we had to raise our prices.

One of the things that Enterprise does and has done very well over the years is expand its workforce training and say retaining your middle and high managers is the best way to retain everybody. How many people here have a formalized training program within your operations? • We’re developing it now. So, we have 1,200 employees around the Midwest. In Sioux Falls, our corporate office, we’re building out go-to trainings and distributing it that way, making it an interactive media process. But that’s been kind of slow. It takes a lot. And like you said, it’s critical mass, right?

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FOCUS GROUPS

Owatonna, MN March 26, 2019 To what extent does the worker shortage impair your ability to grow profitably? On a scale of one to 10—1 meaning it doesn’t affect you at all, 10 meaning it’s killing you—how does it affect your ability to compete profitably?

drug test and show up reliably and consistently over a period of time is very challenging. We spend an unbelievable amount of time training and onboarding. We use the analogy that the new employees are always an anchor before they’re an asset. You know you’ve got to invest in them, you’ve got to train them before they really start contributing, and the cycle just seems like a never-ending cycle of onboarding and training. If we get one out of four right now, with this economy, with this unemployment rate in our area, to make it six months, we’re doing pretty well.

• For us, it’s in the lower part. We’re relatively small. We’re large enough that we offer some nice opportunities, but it’s a nice world where we’re not so large that people consider themselves a number. We have kind of a nice place in the market that way. I would say that it does have some effect. We’re seeing wages starting to come up because of it. There’s some competition, and it’s kind of coming off area wages. For us, it’s more of a matter of how fast we can grow, but we’re already growing at a rate of about 15 percent per year. We currently employee about 140, and we have 20 open positions.

Are you looking more for people, skilled people or nonskilled people? • Skilled. Skilled is where we start. We need welders, machinists, and painters. I think the last magazine I read said something like 1.6 percent unemployment. If you look at Blue Earth and Nicollet County where we are, when you get to that level, I’m sorry, but you’re trying in some instances to employ the unemployable. There are good people out there, don’t get me wrong. But you really have to sift through it, and it is inhibiting our ability to grow. We are making decisions in terms of what business do we take on versus what segments of the market do we potentially enter. We’re not as aggressive at trying to go grow because we just simply can’t handle the volume. I have months’ worth of backlog of business in a

• I’d say a seven. A year ago, I wouldn’t have quite said that, but it’s starting to hit us now in the last few months, where we have a couple of things that we haven’t filled, and we’re going to have to work awfully hard to fill some goals. I really prefer skilled always. We always try to shoot that direction. If not, work hard to find people who fit our culture so that they’re worth spending the time on. • It’s a 10 for us. You know, in my mind, our ability to find people who have the skills and can, first and foremost, pass a

market where typically your lead times have to be four weeks. Unfortunately, the economy is good for our competitors, as well. But if we really don’t make good progress training people, having the team really set up effectively for when the economy starts to turn, we’re going to be at a disadvantage. Our focus right now is really getting the right people, the right team in place, treating them well, and trying to keep them onboard. It’s the only way we’re going to survive.

train, but if you can develop a culture within that, develop your working relationship with your employees and with the management people, then you can start to retain those people and build them from within that standpoint. That’s where I think we’ve had the best scenario with bringing people in and maintaining those people. • We find that we’re kind of in the same boat though we don’t, fortunately, have a need for experienced welders or things like that. It’s more machine out here. Our machines are pretty unique, so it’s a training situation. The guys coming to us out of Owatonna versus St. Paul have a little bit of a more basic skill set that they’re bringing in the door than whatever the school system in St. Paul’s spitting out. It’s a noticeable difference. It’s kind of interesting.

• I’d say for skilled, we’re at a nine, and just people in general, probably a seven. We still get people coming through the door, but they aren’t skilled, so the investment is great. With a lot of the things that are going on at the state capitol, I don’t think people realize what a big flip this is going to be for manufacturers. Like what? • Just between health care, new taxes, gas taxes, regulated wages, mandated vacation leave, things like that. You add that all together with what it takes to stand out. If I’m going to stand out from [COMPANY] on an opportunity for a welder or somebody who’s an intern in welding, or what have you, I better have one phenomenal looking pathway for that person because Gen Y, Gen Z, they need that. It’s expensive to do that. How did Walmart affect you? • I would say it affects us in terms of the quality of people who have a decent work ethic who would have normally been coming through our door and would have been very trainable. So, it reduced the pool. Getting down to the people who are really available, it’s tough to employ them. A company like that grabbed up a lot of the people who were marginal.

One college president told us that 40 percent of the people who get accepted into her tech college need remedial training in either mathematics or reading. They’re just not ready to matriculate regularly into a tech school, but then that seems to have translated over into the workplace. Somebody in Alexandria said that some of these young people just don’t have the basic skills to start a warm body job. They can’t read a tape measure, things like that. Do you agree with that?

• On a professional or training side, it’s more difficult, certainly. I think, geographically, it’s an area that we challenge down here. Towards the metro area, some of the jobs seem to offer, financially at least, more of an opportunity. I don’t like to use the word unskilled, but I think it’s more in the culture. I would put culture in our certain situation at a three or four. The reason I say that is the biggest challenge that I think most of us feel, as small businesses particularly, is to find the person who will come in and be there. If you have an individual who’s in the door, the majority are trainable. Now, there’s a cost to

• I don’t see that, no. In response to what you’re saying, we still have kids who aren’t so far away from an egg community, and I think that’s the difference. • We like that. The guy coming off the egg community, the guy or gal who has that hands-on experience, who grew up around

mechanical things. It’s just an advantage.

bringing cousins in. I think it’s mostly related to culture and how employees are treated.

• I hear, “I grew up on a dairy farm,” and I start salivating.

How would you define culture?

Is it a bigger challenge to attract or retain employees?

• That’s a tough one. Other guys in business are into that culture thing and really have people who are on the payroll just to work on the culture, and we don’t. It’s just who we are and how you treat people and that’s it.

• I think attract for us right now because there are so many opportunities out there. There are a lot of open jobs out there. People can really look at their options, especially with wages and benefits.

• I think you should go back and tell manufacturers to raise the wages, then they’ll start paying for the product that we produce with those wages. A lot of us are experiencing kickback from our customers who not only maintain but reduce cost. How do we bring that back, from that standpoint? For the retention of people, whether you have 10 employees or 1,000 employees, you still need to break it down and have some communication and ownership within that group of 10, whether it’s in a department or other areas that they can buy in and add ownership. That’s what will keep people there. That will keep any of us involved. That’ll keep us in the boat fishing, and if we keep catching fish, take us to a spot where they’ll bite next time. If you go back six or seven years ago, someone walked into my office and asked what the culture was and I said, “There is no such thing as culture. I don’t know what it is.” I still don’t know what it is, even though they tell me we have one. The culture is yourself. How you treat your people, how you work with your people, what they think about what you are doing, how your company handles every day activities, what happens when something happens to a family member, and how you treat that person and help that family.

• Attracting. We always used to be considered one of the desired destination places for metal fabricators or people in the fabrication industry in the Mankato area. We’re seeing that diminish somewhat now. Obviously, technology is catching up around us, but also the vast opportunities. Our retention is still at 14 years or so. Once we have them onboard, we invest, and they usually invest. This year, we’ve had a little bit more turnover. We probably had to hire 25 people to get 15 who stuck, which is a much higher number for us than in the past. Do you have a formal plan to retain people, like a buddy system or internal training? Or is it more just cultural? • It is somewhat cultural. I have a formal plan that’s written down, and it’s been written down from my perspective for several years, but this is the first year that I’m actually going to hire someone to coordinate and implement the plan. I just see it as a must, must have, especially for Gen Y and Z. • We have an onboarding process and mentoring review, periodic feedback so we loop back to the employee, where we try to get them into a buddy system right away in terms of when they start so they feel comfortable and then we leave them alone. Beyond that, quite frankly, we’re throwing money at the problem, and we’re trying to financially incentivize new hires who come in. There is a financial incentive that we’re structured such that the longer you’re there, the more you get paid, as a bonus.

How do factors like available housing or available child care issues affect your ability to attract and retain? Are those real issues here? I know in Jackson, they said housing, housing, housing. • They both are. Affordable housing, certainly. For the most part, there are purely adequate daycare facilities in Owatonna, at least, but it’s still a concern.

• We’ve even extended that to the internal referral. We have a system where if an employee refers someone, we hire them, and they’re both getting an incentive pay at 30 days, at three months, at six months, at nine months, at a year. That is increasing. We’re not only trying to pay them to stay and be a good employee but we’re also trying to incentivize our good employees who referred them to encourage them to stay and show up. That type of thing.

• I’m a little bit out of the realms of it. There’s the affordability of it. Daycare has certainly changed from what we saw years ago and what the cost was. Anyone else? Housing, child care as a factor? • I was curious about the reactions of how do you attract and retain Millennials? Millennials have somewhat of a different view than somebody who is 15 years older or six years older, in terms of retention and staying. They tend to be, at least what I hear, they tend to be more mobile.

How much is related to pay? • I don’t know. We do see the wage pressure going up. • You pay competitively, and then it’s your culture. We have dads bringing kids to work at our place. We have cousins

• If you haven’t already concentrated on the Millennials, you’re

a little late, and they’re different. Gen Z and Millennials are different. Obviously, there are generalities involved when you’re talking about it. They don’t all fit the mold.

we have fantastic Millennials with great work ethic and unbelievable skill, but sometimes you have to speak to them a little differently or communicate differently. What I refer to as the old school supervisor doesn’t work anymore, that type of communication. You have to be a little bit more sensitive but a little bit more aware about the message and the culture because they really clamp onto that.

• History repeats itself. We had the hippies a few years ago. I think we have the same type of thing now, understanding them, letting them express themselves and again, what do they bring to your business. You have to listen to what they have and if you don’t like it, you better first understand it. Secondly, you look and see if there’s a way you can inject it into your business.

• I think the fact that they are really different to work with is related a lot to this. Super resourceful, super intelligent, very quick to find solutions to things, sometimes using what they can find right here and creating and mixing that with their own creativity. I think they’re really intelligent, but they never have to go anywhere to socialize. They don’t have to go anywhere to speak to anybody if they don’t want to in their network. They can do it all through their cell phone. I believe that is a challenge.

Do you actively do things to try to accommodate those different work attitudes that younger people bring to your business? • I think we do. I wouldn’t know how to formulate it or write it out, but we try to recognize their capabilities and whatever they use. In any part of it, how can they implement that into the operation that we’re asking them to do?

Do you have a cell phone policy?

Are there still things like alarm clock issues and people showing up on time? If the shift starts at 8:00, do they show up at 8:30?

• Yeah. They don’t use it on the floor, but it’s there. They’re not supposed to use it, but we also understand that emergencies happen or what have you. We’re not super crazy about it either. We have kiosks on our floor that are just for an intranet newspaper. It’s kind of the same thing with cell phones if you have 30 seconds between doing something. Do I really care if you pick it up and see if you have any message? I don’t know that I do, that much. Because it’s so much a part of who they are. It’s like their hand. It’s part of their limb. It’s really hard to expect people to not be using that or want to use it.

• We had one Millennial or generational issue where an employee, after working for a year, decided he didn’t want to work there anymore because the company wasn’t green enough. Not much we can do about that. We put coatings on films. • I don’t see it. I think it’s more of a culture thing. We have people showing up.

[NAME], why don’t you talk a little bit about how [NAME] on your staff has used training of middle and higher managers as a way for retention, as an opportunity for companies to build that into their cultures.

• It gets down to who we have to work with, the pool of people. A lot of the times, the unemployable workers are close to that border. They struggle with working every day, getting up, they always have somebody sick or this or that. It’s there, but I wouldn’t say it’s a real issue. Those people are probably tough to retain regardless.

• [NAME] wasn’t a trainer at first, then she went to Rochester Community College, and she brought with it the opportunity to work on what we call talent development or learning to lead. The first thing you do is take a social styles test, are you expressive, do you move your hands all the time, like the guys from Texas. I hate people that don’t talk to me. How do you communicate with them? And that’s really been powerful in communication skills. We now have two people like [NAME] who are full time, just to focus on that soft side of the world but also teaching relationships, instructions, putting some processes in place around what used to be called soft skills. Now, it’s called essential skills, in our opinion. We’ve seen a dramatic change in that demand. We train most of the people from tech schools to do some things, but we don’t teach them how to communicate to the person next to them in effective ways.

• The theory is if you put up with being late to work, it’ll happen. If you don’t put up with it, it’ll clear itself. When I said that 30 years ago, and I’ll tell you the same thing today, whatever generation it is they want to work, they want a paycheck at the end of the week. • I was just going to mention that [NAME] and I walked into the plant one day, and we were talking about this same type of thing with the younger generations. He said, “[NAME], we didn’t teach them anything. We didn’t teach these kids anything.” When talking about our generation or the older generation in terms of the people coming out of high school or coming out of the trade schools, we’re hiring welders even out of trade school who have the basic level of skills to essentially pass a weld test. I’m always hesitant to speak about a generation of human beings in those generalities because

And you have found this to be a good retention strategy, as they build people into that culture? Is that right?

our robot because of capacity. We can bring in or in source capacity and source parts. We’re adding more people to the robots we have so we can keep them running around the clock. We’re not taking people away. We’re adding people along with the opportunity to grow the business.

• We put the entire company through it. I don’t think you can build a culture if you aren’t investing in that side of the equation, making them more effective. It’s a form of continuous improvement. Continuous improvement that starts with process improvement. If you don’t do it with people, it’s never going to stick, and that’s really proved effective in a lot of cases.

• I read an article about a new robotic barista. Not like a coffee machine, but literally a robot behind the glass that’s doing all the same stuff. They already have like six over there. It’s a huge complex. We’re growing our business and the robots help grow. We actually need people. In the food service industry, where they’re going robotic or with iPads to order at Panera, that’s more I would think, taking away the jobs.

Another way to deal with employee issues is through productivity. Is it more important now that you’re trying to do more with fewer people?

• It’s killing the philosophy majors.

• That’s rhetorical, right? We’re in an area that’s faster with changing controls on machines so they’re easier. Our machines are large, custom things. We’ve focused on one builder to make the screens, if you will. You can train an operator from another machine on this one. It’s very similar. I know some bigger companies will only buy one brand, and they have like 40 machines, but they’re all the same brand because it’s easier for the employees. Piece type businesses are doing everything they can to put in robots now. That’s crazy. Robotics is also something we’ve been looking hard at. We have a project that, if it goes right, we’ll pull the trigger on a robot this week, next week, whenever we find out about it. We’re that close. It’s a step we’re going to have to take looking in the future.

• Most robots have, in one way or another, a safety feature. I think that gets left out of the manufacturing conversation at times. If robots are pouring molten iron, you’ve taken some people out of a very unsafe environment. • For us, automation is a must. It just has to happen. A lot of processes were otherwise so much slower. We don’t use paper anymore, so we’re trying to automate as many processes as possible, including in the office. The humans still have to know how to weld. They have to like technology to be able to program the robotic welder, and they have to also enjoy inspecting after the fact because you still have to make sure that the robot is doing what it’s designed to do. Nine times out of 10, you won’t have an issue. Much of what we’ve done with automation is to assist feeding machines rather than the operator having to lift as much. We’re a union shop, so we get pushback from our union for about 24 hours. Maybe right after it lands, after the automation lands, then it goes away quickly. I think they realize that it allows us to grow. Culturally, it is a challenge to get people constantly thinking about what products we can automate because they’re still more interested in, “How do I keep it in the manual process?” They don’t think about, “How do we put more through that automated process?” It’s probably about 50/50 now in our company, those who think that way and those who don’t.

Has anyone experienced push back on robotics as an internal culture? • No, I think it opens up the opportunity for some jobs that are higher tech. You’re going to have someone feeding a robot. There are plenty of people who walk in our door who don’t have great rolling skills but can feed parts into a jig. It opens up opportunity for some technical skilled people who are programming the robots. Plus, nobody I know who has added robots hasn’t grown and added jobs. • Robots is just another form of automation. That’s a definite concern for the person who’s working in the area where you bring in the robotics, but it goes back to your communication with the people. Why are you doing this?

• I just wanted to make one comment because it was touched on with collaborative robots. The idea that it’s the old yellow cage and the robot’s inside is really kind of an older view considering the technology today with collaborative robots. I could have one right next to me on the table and you have to think, “How can I use this type of technology to eliminate ergonomics and safety issues?” Collaborative robots are often safe. It’s often a third or fourth set of hands. If we’re still trying to figure out how to deal with Millennials, we miss the boat at the same type of thing. Technology is evolving so rapidly right now. There’s a world of possibilities that they could be leveraged with. But again, going back to ergonomics and safety issues, they’re apparently out there.

• In most cases, if you bring in automation or technology in some form, you’re probably creating more jobs someplace else down the line, or in front, whichever it is. Or, if it allows your company to grow, it just means you’re getting more people. It’s a huge communication factor to go back to the people and let them know why you’re bringing it in. It’s not to replace you. It’s to help you and the company overall. • I appreciate that. We’re actually hiring more people to run

• I think you hit a really strong point on that. As management, if you see an opportunity in robotics or in anything else, and you bring that operator back in and ask him if there’s something that would help that operation, you get him or her involved in that, in making that decision, and there’s an ownership that goes along with it. They’re going to help make that successful. And, they have the opportunity to advance, more training, promotion, and bring other people along.

• Absolutely. We particularly try to carve out a niche in terms of a high custom, premium product, but it only goes so far when the guys can ship from Arkansas and undercut you by $3,000. I have a lot of explaining to do to a customer about why mine is $3,000. It’s worth $3,000. If your company wanted to expand in the market, and the market is going well, would those cost factors affect them expanding in Minnesota versus going to lower cost states?

We couldn’t really be the State of Manufacturing without talking about the health of your companies. How’s business?

• It could. It’s a conversation I always have to have. Why should we invest in the plant in Minnesota when we have all these other cost factors that I don’t have in these other places? That’s what it comes back to quite frankly. The product that we build in Minnesota is better. It is a premium product. It does last longer. It does command a higher price. I just refer to it as our Midwestern work ethic and talent, but there is a difference between the lower cost states’ factory.

• Business is good. I say five days at a time because we don’t see the order. We don’t have people asking for the lead times or the projections. They’ll give you forecasts, but forecasts aren’t worth a whole lot. Over the last 18 to 24 months in this area, the majority of the business has been quite well. If you look back in your history, month by month, I think you can get a pretty good comparison of what’s happening.

• I think we’re going to struggle with the cumulative effect. That is really going to put a lot of pressure on businesses in Minnesota, especially if you have customers regionally. I just feel like yes, business is good. It’s strong. Actually, we’ve been able to get some pretty good forecasting and orders, some longer-term things. I’m not as worried about that as I am about what happens when we try and absorb, essentially, more overhead. We already have the health care situation. It is what it is. We have all gotten used to it, both us and our employees. But the gas tax, we have trucks. And anything that has to do with regulated wages. If the minimum wage starts to creep up to that $15, well, suddenly, our starting wage of $16 is not that good anymore. I should always be $3 or $5 ahead of the minimum wage. The whole sick pay thing scares the crap out of me. I figured it out. If you were a player, and we all have one or two of those people, you could actually work 26 weeks, get paid for 38 weeks, and have federal leave to make sure your job is safe.

• I would agree with what he’s saying. He’s hitting some things on the head. I feel good about business. Business is good, but going forward, it’s a little uncertain. One thing that makes me feel that way is when we talk about employees, we talk about pressure in wages, pressure in benefits, pressure in finding enough people. On the other end of things, there’s pressure on pricing all the time. There’s pressure on reducing price and not raising pricing and somewhere along the lines, the two are going to hit heads because you keep raising on one end. We didn’t have such fat margins that we can just give away either. There’s pressure there. What about pressures from energy costs, health care costs, or regulatory costs? • I was going to ask you today whether health care went away because it certainly hasn’t, but we don’t talk about it as much because things got in the way of it. There’s just as much pressure there as when it was a big topic. It adds cost to the business. Do the rates continue to skyrocket? • They were, and now they’re a trajectory curve. They always go up. I started out in the people’s republic of Illinois. If I just look at our health care costs per employee, it is double at my location when I compare them to our plants in Alabama or Texas or even North Dakota. • You’ve been taking care of those people for years. • That is a real issue for us as we look to grow because we know that employee has carryout cost, as well. • It affects you competitively in the market?

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Roseville, MN March 28, 2019 We wouldn’t be the State of Manufacturing if we didn’t talk about the state of your business. How do you think you’ll do this year compared to last year?

One, because we’re used to the growth, so we as an entity know how to handle it, but now everybody else’s growing too, so that employee pool started to dry up. Now that everybody else is growing and needs people too, we have to fight to get those people. But I think the bigger thing for us, because we’ve been able to manage that for years and understand how to do it, is getting our parts. Everybody else is growing so much. There’s a part shortage within the United States from a true manufacturing type of entity. So, lead times for our parts have gone from two weeks to in some instances, two months. We have the sales, it’s just that we’re heavy. Before, the latest we’d ever have in shipments would be maybe five days. Now we have two months.

• Our business is growing a little faster than we did last year. We’ve been growing. We’re at about eight to nine percent. We’re a slow growing business. We’ve always grown in single digits, and we used to do double digits before the recession. Last year, we grew at eight percent. We’re on our July pace, so we expect to finish 10 percent this year. We have a business that makes large mechanical fixtures, they had a killer year last year. They really are doing very well. We see that as positive. So, we’re diversified by being in a number of industries, and so far we’re seeing positive numbers across the board at the moment. But we don’t have much visibility except for more than a few weeks.

• Well, I can echo the same thing. We had a real strong year up until September then October through December. December was the worst ever. We know that 25 percent of our business will come in during that month, and in December it was only seven percent. It was a shock. We ended up pretty much flat last year when we were growing at a 10 percent rate. This year, January started out extremely strong and it’s been good, we’re a little cautious. So, we expect about an eight percent to 10 percent growth. But I agree about parts. One problem is suppliers. I could go on for hours, but we’ve had a lot of problems with raw material suppliers, both quality and on time delivery. The second issue is just buying equipment.

• We had a little bit of an unexpected fizzle last year. A lot of the branded companies are struggling with a lot of other types of products that are coming out. Millennials aren’t buying the same products. So, our customers have been challenged with their products. We’ve done some acquisitions around the country, so we’ve grown more elsewhere than in Minnesota. But the beginning of the year started off a little slow. We see it picking up currently for some reason, but we expect 10 percent growth this year. We’re growing like everyone, but it’s not abnormal for us. We’ve grown 10 percent to 30 percent in 15 years straight. Even through the downturn maneuvers we were still growing. So, this year we’re seeing the same things, the struggles that we have with that growth are kind of two-fold.

• So, about two years ago, we had 10 percent growth, last year we had 17 percent growth. Prior to that, we’ve been somewhat stagnant. We’re forecasting about another 10 percent growth

this year, trying to get into some of the larger trade shows, be a little more aggressive in sales, expand beyond the fivestate area, and that’s been working for us. Same equipment issues; we’ve purchased rolling machines from Sweden, and they’re usually running in three to five months of their original delivery time. So, like you said, you have to know when your machine’s getting ready to be replaced and you better think about it a year ahead to get it done. One of our challenges this last year was when some of the tariffs hit. You have to go back to your contracts and say we need to renegotiate or contract here because prices were increasing 20 percent and eating up profits. But unfortunately, the customers were feeling that from other vendors, too.

our parts we make out of 2,000 different kinds of materials. So, we’re impacted by the tariffs, pricing was difficult. • We’re projecting about 10 percent growth on our consumer side of our business, government contracts. It’s a little bit lumpier because they’re large, multi-year contracts. So, we have significant growth on that side, as well, because we’ve recently secured another large contract. We’re a discretionary item for consumers from your premier price bracket. • We have two very different divisions inside of the organization. So last year, all lumber prices skyrocketed. They just took off. And then the gussets, the connected plates that hold them together, were also impacted by the tariff system. We had the tariffs coming out of Canada and tariffs on steel prices, and then just the overall demand for lumber. So, we had a

• About four or five years ago we went through a period of pretty significant decline in the company, it stabilized three years ago, and two years ago we grew about five percent. This past year we’re coming off about 12 percent growth. Our fiscal year is ending this week. But we’re very optimistic going into the next year. We’ve already got over 15 percent in growth booked with the business that we’ve taken on towards the end of this last fiscal year. So, we’re pretty bullish on the next year that it’s going to be good. Our biggest challenge right now on the manufacturing side is people. We have two plants, one’s in Mora, one’s in Grand Rapids, so our pool of talent is difficult to say the least. It’s difficult to fill positions as we grow. The flip side is on our retail side of our business, and we source a lot of products out of Asia. So, the tariffs have been painful. At the same time, being in the retail business, the Walmarts and the Targets of the world have mastered the art of stretching their payments to the point where they’re now all about 120 to 180 days from the time they actually get the invoicing correct in quotes. In many cases we’ve started to preassemble or have to preassemble those products three and four months before that. So, it’s not unusual for us to be in a six to nine-month window to get paid.

tremendous amount of run up inside of 2018. And we were a little slow to react and raise prices, but at some point, I started raising prices almost weekly because the lumber prices were changing so fast. In the end, we got ahead of it. We grew about 25 percent of revenue, about 10 percent to 15 percent in overall important footage. • This year started out really strong. We were residential construction up until the polar vortex. Our fiscal year starts November 1st, so we were doing really well, and then February and March are not going to perform well year over year. I planned for about a 10 percent growth in revenue and about a 20 percent growth in board footage. And that’s the inverse of what it should be because lumber prices have really dropped. And so, we are expecting a lot of growth. All our customers

• We’ve been around 100 years; this is our 100th year this year. I’ve been there 27 of those years, and we’ve seen some nice steady growth. Last year was great, around 12 percent. This year we’re trending seven to eight percent growth. We’re also struggling with customers dictating their own terms, like dictating when they’re going to pay. We also struggle with a lot of the regulations because we’re ISO certified and a lot of

on the residential construction side are very bullish for home building. The nationals, regional lumber yards, smaller lumber yards, everybody’s excited about building houses the summer of 2019. We’re really excited going into the summer.

organization, we did all temp to hire inside the component side. Last year, it had huge costs, high turnover rate, as far as people coming and going. So, we started hiring through Indeed this past year, and I grew my workforce by 50 percent for full time employment or for our union shops. Some people like it, some people don’t. We’ve been able to increase our capabilities significantly by hiring a director, and we still use some temporary services for gaps that we can’t fill. But for the most part, we’ve used Indeed, and we’ve gotten a lot of success from it.

• So, if you look at our industry, there’s probably been close to a double-digit growth for the last several years. It’s been really good. For us as an industry in total, as far as our company, we have been pretty stagnant for a while. Kind of like what you did, we’re going at the market differently. We actually had a better year last year. It was our first growth rate at about 14 percent. And the way 2019 is shaping up right now, I’m expecting about 12 percent growth for us.

• I would say we’re down to about a four. For the skilled side, inside of our designers, because it’s specialty designing as far as using the software, I’ve had to put jobs out there remotely. We have a really great IT person so now we don’t have to have people in house. I just hired a person in Atlanta. I just hired a person in Orlando. It has given us capabilities outside of our operations. I have a guy in Canada, so I’m really using our ability to have designers who are outside of our physical plant to be able to give us that skillset. To come in fresh. It takes them about a month or two to get up to speed, but honestly it takes them about three or four years to get up to speed if I just hired somebody straight out of school.

Let’s talk about people. Your workforce is a combination of skilled workers and just plain, warm bodies. How much of an impact, on a scale of one to 10 with 10 being devastating, do worker issues have on your ability to grow profitably? • We’re pretty close to 10. • Yeah. We don’t have lot of machine usage. All of our work is completely done by hand. We have machines to cut our wire, but we assemble the parts under the box to the piece of sheet metal. Without people, we can’t assemble.

Are those people critical to you? • Yes. They take a house plan, redesign the house and the software, and then make the trusses for that specialty house. So, it’s specialty software.

• Is it skilled people you’re looking for or just people? • I mean, you have your warehouse jobs that have to pick the orders. Those aren’t quite as high of a need, but to be able to wire the panel, you have to be able to read a schematic, you have to be able to understand how electricity flows so that you’re plugging things into the right spots. It’s pretty much all laid out for them, but they still have to have that understanding.

• One of my older employees has been running my injection molding, which is really hard to find people for. He knew a guy who had worked at a tool company that builds our tools. I don’t know how he found his address. I thought, well, that’s a new technique. He just went and visited his house. He asked, do you remember me? We worked together, so we hired the guy, he’s a great employee, and then he told a friend we’re trying to find a maintenance person. So, we interviewed the maintenance guy who’s a friend of a friend. What we’ve decided is we just need to be more proactive in finding people and pushing the referral element. That’s one approach. And then the second thing gets back to technology, using automation. And I’ve been challenging our people on how we can automate that.

How important is the shortage to your ability to grow profitably? Have you had to advance or change the way you recruit people? • We’ve done a couple of things differently. For one, there’s not that skill set out there, right? The biggest thing we’ve done is partnered with Hennepin Tech. They’re two miles from us. So, it works out really well. We partnered with them to educate our people to the level that we need. Some of those classes fit exactly what we do, so they take two of their classes and then work onsite for our employees. Then the other thing we’ve done is change how we recruit. We used to attempt to hire by going to the temp agencies to find people. Well, I’m guessing the 10 people that they showed me, they showed you, they showed you, and they showed you. Then they went to work for you and that didn’t work out. So, they went to work for you and that didn’t work out. We’ve hired our own recruiter in-house and the level of talent has greatly increased.

• I would say we’re closer to a three, but it took a lot of work, and we had to change everything. It wasn’t any one thing that had to be changed. Compensation had to be changed, the way we recruit had to be changed, the way we give benefits, the way we do holidays, the way we do everything. And we used to have a recruiter, and we found that wasn’t cost effective, so we had to eliminate that. We just finished our employee engagement survey last week, so I know that our engagement number is 65 percent. That 65 percent of engaged employees went up 10 percent over last year, which was 55 percent. The average percentage of engaged employees at a company

• We also used to do the temp to hire. In 2017 when I joined the

accoding to Gallup is 15 percent worldwide. So, for us it starts with culture. It has to start with culture because we have to keep people.

inflation. But equipment, even though it’s expensive, has been there, it’s operating, it’s working. So, that’s been something we’ve been using quite a bit.

A tech school president told us a few years ago that there would not be any kind of a worker shortage if manufacturers would just pay their people. How do you respond to that?

Which is the bigger challenge: attracting or retaining employees? • I think attracting. Because if you treat them right, you can retain them.

• You’d have to get the Millennials to work. They ask for six weeks of vacation.

• I think that number really varies depending on the kind of person you’re trying to find. We do welding, as well as machine operation. I’m looking at people who are applying and just reaching out to them. That’s more effective than posting the job. Again, temp to hire. Most of the time those people are just bossing around, and they’re very difficult to maintain, and frankly, that hurts the culture. If we bring somebody on like that, the employees they are trying to train won’t want to put in that effort. But when you hire somebody who has a proven track record, somebody that is with a company for five to seven years before they move jobs, they’re more willing to train that person and let them know the experience that they have gotten.

• I used to work in IT years ago, and when this is all over and you get to the backside, you have all these wages that are all over the map; it’s a nightmare. And so, I know what it feels like on the backend. I’m willing to be a little more proactive and flexible, but there has to come a point when we can have a maintenance person who’s at this wage, unless he’s going to do more than the person he replaced. Then they need to have an expanded scope of responsibility to justify it. So, we can do that, but then we have to change the job to where we have the need. If they’re going to come in there, then they better be able to do very sophisticated machine maintenance versus just bathrooms and snow, which has been a big part of our maintenance, as well.

• With welders, we don’t have a position for a beginning welder. We need a fabricator, and that’s challenging to find. It seems like it’s getting a little bit better lately as people are more willing to move. We have difficulty with our rolling machine and break press. It’s not a full-time position to try and fill because tech schools don’t have programs for metal fabrication machinery. It’s just part of the fabricators position where they teach the welder how to do that. But others don’t want to do it once they get into that position. So, that’s the real gap that we have in trying to fill our position. For me, that pain is a nine, for a welder it might be a five.

• If everybody pays more, then it’s an equal playing field. But if I’m paying 10 percent more than everybody else, you’re going to retain more, right? Because they can’t go across the street and get that 50 cents for an hour more or 75 cents for an hour more because I’m beating them. But if everybody says, hey, I just need to keep them on, I have to pay them, I have to give them 20 percent more, then the whole market just went up 20 percent more and the employee can still hop to something else. So, we look for people who want careers, not jobs. I think probably all of them owe it to what have we done? Everybody’s probably done something a little bit different.

• You talk about the guys coming off the farm, but you can’t do anything in a metal fabrication shop until you’re 18, where before they were starting in a shop at 15, 16 years old and started learning some of the traits. When you hit 18, you’re not looking to get into a metal fabrication shop, you’re looking to get into computers or some other type of service work. So, that’s where we really lose a lot of people.

• Everybody’s looking for people. The service industry, the construction industry. I support the construction industry, and they always talk about how to get people into construction. It’s not just manufacturing; everybody’s looking for people. So, it’s not just about paying more. As [NAME] says, it’s about the culture and what you’re doing to help them out so they feel wanted and needed and a little cuddled.

• I think a lot of high schools have stopped teaching kids shop class, so they’re not exposed to welding or machine or a drill press or getting their hands dirty. I don’t think kids do that anymore. And I think moms and dads are telling all these kids, you’ve got to go to college, you’ve got to get your four-year degree. You want to be a lawyer, a doctor, whatever. I think it shifts that whole employment pool. All of those Millennials and young kids coming out of high school, coming out of college, they don’t want to go work in a dirty machine shop. They don’t want to go run a press welding. But, you can make really good money in manufacturing. Some of those guys will

• We have tried to provide the right culture and keep people, retain them, and we have tried to get awards for that. Our incentive is our equipment; we put in a lot of technology that does two for one. So, we bring in a new asset that can create output twice what it used to, and we’ve been able to offset some of that. You can’t get the people; we have some rural plants where we’re having a hard time getting people because those guys aren’t coming off the farm nor are they used to fixing their own tractors. So, with a lot of those people, we have a hard time. We think we want to grow that setting, but there is wage

make $80,000 to $100,000 running a press, but I don’t think we’re teaching kids that anymore. I think they took that out of the high schools and that hurts our pool of available workers.

go to every meeting, so I was like, well, we can have fun. • There’s nothing wrong with fun. Who wants to start a fun factory committee? But it is a real challenge, I agree with you. It is for Millennials. It is the opportunity for experiences, for lifelong learning, to be able to do certain things. And we have to figure out what that means and how we offer those different experiences. I’m to the point where I really do not want to hire somebody right out of college because we did it four years ago with a bunch of people, and it was all four-year degree people. I’m like, let them go work for one to three years for somebody else. Once they’ve taught him how to get to work, then we’ll take him.

• I completely agree with you. but I think the schools that we’ve been into—and we’ve been in talking and telling them about manufacturing—have counselors who are starving for this information and the kids are starting to listen. So, I would strongly encourage it to any schools within your area. They will let you in, and they will let you talk to your students and explain what manufacturing is all about. Three-quarters of those kids do not want to go to a four-year school. • How do we get in front of their parents too, right? Because I’m a parent of a high school student, and I’ve been saying since day one, you’re going to a four-year school, so I’m talking out of both sides of my mouth. But I’m also probably more of a realist now to say, if you don’t want to, there are other opportunities for you. The whole United States didn’t say that for 25 years, and manufacturing is viewed as dirty and bad.

• Do you find that there is a maturation process in all of that? • Yeah. They finally get it. • Then they just don’t show up in the morning, and the next day they come back thinking like, everything’s normal. It’s okay if I just miss a day.

• I wonder how much of that is Twin Cities based. If you go to Alexandria, Brainerd, or Bemidji, they are awesome on what they’re telling their students. Not everybody needs a four-year degree to ultimately just become a barista.

• So, we started thinking about what employees value beyond just the hourly wage. We’re 45 minutes south of the city, so we’re a little bit isolated for production-type employees. There are other manufacturing opportunities that we compete against. So, we shipped it from a five, eight schedule to four, 10 and employees appreciate us for going to that schedule. They really preferred it, and from a productivity standpoint, it actually helped us. It’s the little things that kind of mattered. In our shop, if somebody goes forward to say, hey, I’ve got a sick child, I need to get them to the doctor, can you give me some accommodation? We do it; we find a way to do it. And they know they’re not going to get that down the street where it’s a more regimented program. So, we really focused on the culture piece. Getting people who want to be there, getting people who have flexibility, getting people who can move around on the floor. Historically we’ve had people who have been an anchor for one station and that’s what they want to do, and they don’t care about what’s going on upstream or downstream. They just want to do their thing. So, we’re really focused on rewarding the second people who are willing to cross trains, just move around on the floor when we need to help, because we’re not always level loaded all the way through the plant. We need these people around.

• Regarding the younger generation, you actually have to recruit them different because they want a sense of purpose in their life. And it’s different than the way it used to be. We just brought somebody in and I asked, where do you want to go? He just wants to have a life, he wants to experience it, and he wants to have a purpose. So, you also have to change yourself there and show them that option. It’s a lot of training, a lot of learning the organization, growing in the organization, and continuing with training. As far as that school thing, I think it’s actually shifting. If you look at enrollment numbers, all these universities are dropping in numbers, but tuition is still going up. • For my kids, I have some who went the four-year route, and they’re still paying their debt off. And I have others who just went to the trade school and work, and they’re doing pretty darn good. So, it is changing a little bit. • I think the challenge for us is we just have so much diversity. Diversity and ethnicity in manufacturing, but not so much in our office. And it’s funny because the employers, the manufacturing employers, call it the concrete people and the carpet dwellers. We have many people with advanced degrees, fouryear degrees, high school, no high school, the ability to speak English, the inability to speak English, and one size does not fit all. So, the challenge is to meet the employees where they are, and we just feel like you’re juggling balls all the time. In a meeting two manufacturing employees said, we just have fun around here. And I just happened to attend that meeting. I don’t

How much of a problem is drug testing and drug usage? Does it constrain your ability to grow profitably? • I’m not sure what we’ve settled on. I think if you test positive, you don’t get hired. But it’s still a question for pot, and we’re debating that topic right now at our different plants. • I get a lot of positive tests as far as marijuana use, and we have a policy that you’re not supposed to be hired. I ignore it. I can’t

are you thinking about doing more with less? Are you looking at more automation, robotics, and things like that? Is that something that’s front and center?

take away 50 percent of my candidates coming in as low skills, low wages. The other side of it is that we have a lot of people who are on the edge. There are a lot of issues out there. People have to go to jail, and we have a regular flow of people who come in and want to work but have to first spend a month, two months, six months in jail. And six months is a little long, but if you’re going to spend four to eight weeks, come back when you’re out. And they’re good workers. They show up on time.

• Technology manufacturing equipment, you know, with the CNC machines, is getting so much better. Some of our rolling machines we’ve been replacing every 10, 15 years because machines have greater capability; they run a little faster and you get your parts quicker. They have certain CNC capabilities, and that helps productivity.

• I think the number one issue from my perspective, as an owner in our company, is financial management. I committed this year that every single employee is going to have one-on-one financial management. I don’t care how much you make; the average American is 30 days away from bankruptcy. So, if you can’t live on your paycheck, you have a problem. And financial management causes stress that shows up at work. So, with our payroll provider change, we’re going to tackle this because it’s going to be a benefit to employees. Drinking is much more of a problem for us than drugs, and we did go ahead and eliminate marijuana because it’s medically necessary here in Minnesota. We just can’t write off everybody. But I’m much more committed to helping people being able to live on their paycheck.

What about the old-fashioned lean journey, continuous improvement, and all of that? Is continuous improvement part of your everyday life? • Before I got to where I’m at now, I was implementing lean at [COMPANY] and stuff like that, so it’s part of who I am. It’s part of the process at our operations just because I love it—the continuous improvement, getting people’s ideas. It takes a little bit. I was an industrial engineer who kicked around on the shop floor, and I don’t have that on my shop floor, so I’m doing a lot of the developing and training and so forth. It is part of who we are. It is part of a lot of the stuff that we’re doing inside of our operation. We move the actions through a process. It’s a lot easier, and it’s more consistent.

• We do not have a drug test at all. It’s an open door. But, we do evaluate if we see something. That’s in our policy. It doesn’t matter if your addiction is drugs or alcohol or whatever the case may be, we address it, and that’s how we do it.

• We do have it as part of our organization. You get a couple of good wins and it seems like it dies down and it picks up again, but we’re trying to move a little bit more to be a driven organization. Everybody has their KPIs, Key Performance Indicators. I think when you throw that out there, it helps drive you, it’s a reinforcement. Let’s not go backwards. And then as far as automation, one of the things we tried to do is leverage ourselves. We’re not going to automate to take people out, we want to automate and then maybe hire another employee on. So, it’s also the way you approach it a little bit and give it to your staff.

• How many others ignore drugs? We don’t. If they use marijuana, we don’t hire them, but I’m flexible to look at it in a different way because I know the U.S. is changing, right? Alcohol is probably worse than marijuana. And we don’t test for that. • Does everybody else take a drug test? • We don’t. • We do drug tests. We lose some of our best guys to it.

What about overall strategic planning? How important is a formal strategic plan to your profitability or isn’t it? Do you not need it?

Somebody up in Alexandria said that the employee problem, the worker shortage, the skills gap is actually a market opportunity. What do you think? Is that just a one-off opinion or do you see market opportunity there?

• Well, we’re the poster child for doing something the first time, second time, third time and maybe another time. Whatever we adopt, we have to make it our own, and that starts with strategy. We have to be very careful about who determines the what. The executive didn’t turn them, the executive team determines the what. How we do it is how we delegate. So, we have to be very careful about who has the accountability to decide what strategy.

• I see an opportunity, and that’s why we’ve kind of taken the steps we have. The cost of college and extra education is vast, and one probably can’t afford it. So, they go, where am I going to go work? They can get a warehouse job, or they can start with us. We will take you from that warehouse job all the way up to the $30 an hour job, and we’ll educate you the whole way. So, we’ve taken that same question and said, we will educate you. We will pay for 100 percent of that education.

• I agree with [NAME]. We have 120 employees, and we have a union shop. So, our leadership has been able to identify corporate’s goals are continuous process improvements, and these are the things that we’re going to focus on. We’re looking

One way to respond to employee issues is through improved productivity, both through processes and through people. How

at all of our KPIs, and we post them in the shop and we post them in the office and we do updates monthly, quarterly. I think we get better buy in, and we’ll get better commitment to those continuous process improvements where people are wanting those processes to succeed and not say, well, I wasn’t part of that, and then wanting it to fail. I think that communicating with everybody really makes them feel like they’re part of the team. • I think the strategy is really important. At least, I view it that way. Then you have a vision, you have a purpose, and then it just trickles down. But, if you don’t have a target that you’re trying to get to, then you don’t see farther, you don’t see into the future, you don’t see what’s going on. So, to me it’s very important. What else? • I think one of the things that we’ve been doing is future planning. We actually had 40 line employees go to the leadership team, and then we created sub teams. So, they’re literally at the table. But then to get the message clear, which was always a challenge, groups of 10 and I sit down three times a year with the one page plan. I’ve asked them every time I’m done, does this matter to you? And they say, yes because you’re trying to cut through the interpretation and you learn a few things as you go around the whole factory, the walls, the silos. So, it’s my new way. • I have to change the way I’m leading, and that’s my new thing. We are trying to fundamentally change meetings and having one or two people dominate the conversation. And then we do quarterly meetings, 90-day one-on-ones, with everybody in the entire company. We’re in our second year of doing that. So, that’s our drive down to the bottom of the factory, and it’s a lot of work, but we have to play the long run. It’s all about playing the long run. • Good for you. That’s awesome.

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FOCUS GROUPS

Pine City, MN March 29, 2019 Let’s start by talking about the value of having a formal strategic plan.

Where we are sitting right now is at the back end of a hockey stick. The bottom end. We’re going to be shooting up. We’re new to the world, product development, but it’s going to take off here. This year is when we’re going to start seeing some bigger profit. We have these electrical distributors committed to carry our product line, excited to get our product line. We just have to finish out and get to the UL process, and then we’re good.

• At [COMPANY] I’ve been involved with strategic planning. I worked for [COMPANY] before, and I was part of that team down there, too. What we do is we sit together as a team for two days off site. We talk about the state of business, area competitors, what we can do. Basically, we break it down into two components and then two main items we want to work on. “Two wildly important goals” is what we call them. So, that’s kind of how we break it down. From there, those are our targets. We set sub-goals from that to drive those targets throughout the year.

• Electrical contractors all around the country see this product line as money in their pocket because it’s going to save them time. When it comes to the product, we’re going to be charging a little bit of a premium on the product, but the amount of time that it saves when it comes to contractors is all passed through to the building order. But it’s the labor that they’re paying for, especially union contractors, right? They’re paying anywhere from $35 to $70 an hour, depending on if it’s an apprentice or if it’s a journeyman who’s installing this product.

How many people participate in that process? • It’s the ELT team, an executive leadership team. I’d say it’s about six, seven people, pretty much. And then it breaks it down so that each other team is three or five people.

• There were 600,000 blue collar manufacturing jobs added in 2018. That’s all good, but when it comes up here that’s a problem, right? How are we going to fill our factory when we build our facility and the labor union? Thus, we’re contracting right now with [COMPANY], who has a complete labor force that we need to do the value added services. We have a whole line of commercial product that we’re going to be building.

• Communication is key. You have to communicate to everybody or else you won’t have buy in. You won’t get people involved. If they don’t know what the goal is, you’ll never attain the goal. Communication for me is number one. This wouldn’t be the State of Manufacturing if we didn’t ask about the state of your business. How is business? How was last year? And how does it look this year?

• When you take a look at where we are, 2017 was probably our toughest year financially, because we’re living off of investment dollars at this point. We did do a financial package where

• Things are looking very positive. All the indicators are looking well. I think new product innovation is really driving it.

the company took out a loan to pay for our molds and our toolings and to get up and running. The year 2018 was a good year because we hooked up with some really good people within the state who are financing our entire project at this point. So, financially we’re more solid than we’ve ever been since our start up as.

we’re doing what we need to do, but we also need to plan for the future.” • I would say I pick and choose now. I can’t handle all of the incoming calls. I have blockage. How about people? Is your inability to recruit workers constraining your growth?

• I’d say last year was a very big year for my company. My vision is that this year’s going to be kind of a repeat, and that’s kind of what I see from the first three months. It looks like it’s going to be about the same as last year, but we’ve got in our forecast about 3 percent growth. That’s going to be a challenge to achieve that in 2019. But we had a good year last year, so we’re living off our experience and that success. But yeah, it’s pretty good.

• We’re having a hard time finding technical people who can set up molds. One of the biggest things is the off shifts. We can take a high performing person from C Shift, or 3rd shift, or 2nd shift or 1st shift, but you have to back fill. • And it’s very hard to back fill those positions right now. The dollars go up, and suddenly your profitability is going to come

• Brand new industry for me, so it’s been a learning curve the last 12 months. The last two years we have definitely been in growth mode with existing customers who are rebounding with the economy and enjoying their business growing, so we’re growing a lot with that. We are picking up new business, but that’s been tough for us. We’re seeing a lot of companies and having to compete for a new product. All this stuff is costly and expensive. So, while the sales are growing, it’s not necessarily as profitable. • Probably our biggest challenge is the work force, because not only is it hard to find them and train them, we’re having to pay more for them. So, while we’re enjoying a nice pick up in our sales, our margins aren’t there yet because we have additional costs to take on and new work.

down. We are maintaining, but we’re not able to get those new talents in the door sometimes.

• For us, we’ve been growing the last several of years, and this year what we’re really watching and looking forward to is are we plateauing or are we still going to grow more? So, that’s the big thing we’re looking for throughout 2019. Have we hit the peak and we’re going to sustain it? Is there cyclicality or not? We had some strong growth in 2017 and 2018.

How many open jobs do you have at any given time? Do you always have something open? • We always have open jobs. I don’t know the exact number off the top of my head. It’s probably around ten. Ten indirect jobs, probably. I’m guessing.

Somebody said the other day that he’s spending too much time taking care of customers and not enough time taking care of his business. Can you relate to that?

• For us I’d say it’s somewhere around six or seven. It’s going to grow to eight or nine probably within the next year, as we have a highly skilled and close to graduating workforce. They’re at that point in their careers, or a lot of them are. My biggest challenges are actually skilled technical people on the

• I know at least in our business, we also had a very good year last year. It takes a conscious effort to step back and say, “Okay

off shift, because people are getting more and more concerned about their quality of life. A lot of times your off shift tends to be newer team members searching for their career place, but they also have families at that time. The day shift is almost as much of a premium as an off shift skilled position. There’s that balance that we’re always looking at.

would shake your head and wonder if these people can even understand an ad that’s in there. • Yeah, I’d say we’re at seven to eight, as well. Finding people with a particular skill set has been difficult, and we’ve had to hire some people part time, convince them to come out of retirement in some cases, and come in a couple of days a week just to fill the gaps when we’re busy. Once again, speaking to the applications, we’ve received some really unique applications.

• For us right now, we’re just on the management side. We don’t have the manufacturing side as of yet. We’ll have that next year. We have eight employees currently, full time employees and one outside consultant. We do have plans on how we are going to obtain employees, and how we are going to maintain employees once we get into the manufacturing. That’s very strategic, and I wouldn’t share it in this room because we’re competing against these people to get those employees.

• I think the best one yet had two starts to a sentence and a phone number on the bottom. Text only. • Every once and a while you get really lucky, and you get a really good employee, and that’s what you celebrate.

• I would say it’s kind of in the middle. If you would’ve asked me six months ago, I’d say it was really bad, but being in business for 41 years you see some of these cycles. It’s not easy to get employees, but recently the last couple of months we were able to pick up about four employees, and that’s a big deal. That’s like 10 percent of our workforce. Some of it is kudos to you guys from your welding class, and we take them and then coddle them and kind of bring them up to speed. So, it’s always a challenge. Bad times, good times. I don’t think that ever goes away. That’s my opinion.

• We really make a big deal out of that when we get somebody really good. Are the young people prepared to join the workforce? • I went to school with some kids who probably weren’t going to start the world on fire. But we do see across our system that around 30 percent of students require some level of remedial education. And that is in some cases, to be fair to the K-12 system, because you took math once and then fifteen years later you come back and might need to take an O90 level math. A lot of this doesn’t mean that they didn’t get it in high school. They just haven’t had it for a while.

• On a scale of one to 10 I’d give it a nine plus. We probably have at any given time at least six to ten openings because of our turnover. Skilled?

• But generally, there is a big ratio. Does the high school diploma equal work readiness? That’s a big debate going on across the country, and a lot us would probably debate whether it does. And what about the efforts that are in place to get people through that high school diploma now? They’re sitting out folks and helping them take tests because we’re so scared of somebody not getting that high school diploma. I think people are getting through that and then ultimately they end up here on our door, and if they have a high school diploma we’re there to serve them.

• It’s unskilled. Which is a new animal for me. I keep saying, I don’t understand the world of unskilled labor, but it is a challenge. People walk through the door with absolutely zero experience. We train everything on the job. We have three month bonus incentives if they stick around that long. Especially the younger crowd. We do better with the older workers. They are more willing to be patient and learn their craft or their trade. • The younger crowd, if they don’t like it, can say in a given day, “Ah. I’m out of here.” I’m amazed at how many of them just pick up their stuff at lunch and walk out the door. It blows my mind. I have never dealt with that in skilled labor, the machinist side where I came from. So, this is a new deal for me. A completely different deal for me. • Yeah, we’re probably eight plus. The majority of our people are skilled machinists. We have 40 some CNC machines. We have to be a little picky with what comes in. Over the last four years, we’ve had record years three out of the four years, but the only thing that’s holding us back is skilled labor.

• The challenge for us organizationally is that we just posted a position. We’re trying to start a new technical program. I had zero applicants for an industrial tech instructor, so we have an applied engineering program we’re starting in the fall. We had zero applications. So, we’re struggling with some of that, as well. If that one instructor can turn out 20 grads, there’s a multiplier there that we need to solve. They’re not leaving the industry to come work for us at a lower wage if they have those kinds of qualifications. There’s a trickle down with that. But we do see more students coming in that literally don’t know lefty loosey, righty tighty.

• Honestly, if you guys saw the applications that come in, you

• The gap between the high and low has really gotten larger.

Even when I started 20 years ago in higher education, especially those tech programs, they’re just not coming in. We’re always talking about the farm kids, but nobody’s looking for that farm kid. I don’t know all of why that is.

they’re juniors and seniors in college, it’s more important to them to do what they love to do versus what’s going to make them a good, solid career and be able to raise a family. • So, there’s a whole shift in that. It’s more of a society shift than it is a manufacturing shift or an education shift. We blame it on Millennials, but they’re the first generation to have that attitude. But where did they learn it? We taught it to them. We were the ones who told them that. We worked our butts off, and we slaved so that they could have a better life, right? So, we can’t blame Millennials for something that they were taught growing up. That’s my two cents.

Someone said there would be no skills gap if manufacturers just paid more. What’s your response? • I don’t know. We’ve been experimenting with the incremental pay adjustments and retention bonuses. It seemed like it worked at first. • I guess I don’t really feel like I saw a major difference with pay. We’ve done bonuses, quarterly bonuses, incentive raises. We went to the ESOP, which most people don’t understand how it benefits them anyway. But it seems like in our situation, they would be more interested in more vacation instead of more pay. And you can’t get them to show up for more than 40, 45 hours to begin with. When I was talking about our growth being stunted, when you’re busy and you don’t have a labor force to draw from, and the ones you do don’t want to work more overtime, your hands are tied.

Which is harder, recruiting or retaining? • Recruiting. We’ve been very flexible. I mean, of our 50 some people, the average tenure is well over 20 years. We don’t have people leave. • Even the ones we want to. • Recruiting.

• Yeah. There is no question, the 25 to 35 age group in our business, they don’t care about overtime or money. They always want more money when the time comes, but they would still pick more vacation.

• Yeah, except for an occasional one that you might want. No, it’s recruiting by far. • For us, it’s retaining. Recruiting unskilled labor is actually not that bad. It’s retaining them. They come in, and they’re wowed by the facility. We have a beautiful facility, it’s incredibly organized and clean. And there’s just so much action going on. They come in and they’re like, “Whoa. This would be great, and I’d love to work here.” Awesome, we’ll bring you on board. We’ll do the training and the onboarding, and then they get in there and there’s a lot of repetition. A lot of simple tasks that they have to start on. They have to start with the basics, and that’s where within a week they’re like, “Nah” and they’re gone.

• They have an expectation of what they should be making per hour when they come in with zero training, very little education. There’s a huge gap about what their industry and market is able and willing to pay versus what they think they should be at. So, that’s part of their frustration, and we tell them, “You have to earn your raise. You need to get your experience. Then you will have the opportunity to grow everywhere in the company and your pay will grow with that.” But they’re so impatient. They just don’t want to stick around and work their way up for it.

• Yeah, we have issues with both. If they’re not sold on the company in a month or two, they’re gone. You have to get them sold quickly. And speaking to that ceiling and floor, that skills gap, we’ve had a lot of success starting people out in a janitor position saying, “Okay. You’re going to be here for two weeks. We’re going to move you here for two weeks. We’re going to move you here for two weeks.”

• I’ll relate this back to one of my previous jobs. I worked ten years for [COMPANY] back in the ‘90s and early 2000s. Back then, as part of their bonus program, was to add vacation days. That was part of their policy because they saw that coming. [COMPANY] is a solid company, and they had a lot of good foresight within their organization. If you take a look at the overall big picture, it seems like there’s a huge shift in society’s thinking. Not just with the Millennials, I think it’s even affecting some of the older generation.

• We want them to get a little experience all over the place, and that will develop a little bit of a, “Well I like running a milling machine, or turning center.” Or, “I want to do sheet metal.” Or, “I want to play at the power chord booth.” We have a lot of different varieties, and we have the good fortune to have a well-rounded company with a lot of different things you can do between the doors.

• I think it’s even taught in schools, the K-12 programs, that life is more about life and relationships and families and doing the things you love to do. That’s pounded and ingrained in society nowadays, and it’s not so much about making money and working and all that. Even when you go to all of these young kids and talk to them about what they’re going to do when

How much of this can be mitigated by lean or continuous improvement. Robotics?

is our IP, our patents right now. That’s not sustainable. • The pot of gold that’s sustainable is the people. So, you have to come up with a socio plan to engage those people and find a way to retain them. We have that built into our business plan and into our policies and procedures. We have this planned out for 10 years, growing from eight, to 15, to 30, to 75 to 100. All the way through that, we have processes and plans, and I’m not going to get into all the details of this strategy because again, we’re going to be competing for people here.

• It’s a combination. The big thing we’ve looked at over the last couple of years is we’ve realized there’s going to eventually be a labor shortage. We’re starting to see that. There isn’t this army of people over the horizon like there may have been in the past. It’s a combination of lean manufacture principles, the basics, and incorporating automation into certain places where it makes sense. When we really look at it, we look at what people look for, and we’ll go from a virtue stand point and ask what motivates people. Do I matter? Do I belong? Do I make a difference?

• The bottom line is that you have to pay attention to them. There not just employees. They’re human beings. So you have to keep that in consideration throughout the whole process.

• You start looking at that and ask, well, where does automation make sense? It makes sense to fill the gap where people aren’t going to see those things. So, for us it’s a combination of lean, automation technology, and then finding the right team members for the areas where it makes sense. So, it’s a balance.

One organization predicts that there will soon be a quarter of a million unfilled jobs in Minnesota, due to demographics. What’s your reaction to that? How do respond to something like that? • Retirement.

• We spend half a million to a million dollars every year on new equipment just to be better, faster, bigger, quicker. Just to help make up the shortage of people coming in.

• Automation. Automation has to be a big part of it. • We’re going after all of those elements you were just talking about. We’re looking at the people side, the training, the development. Right now, I have ten employees at a session for leadership development. They’ve never had anything like this before, so we’re trying to train from the entry level with different techniques that hopefully retain them. We’re training up our metal staff now with work shop skills, and they’re ready, and then we’re going to technology.

• Same here. To a T. I think the fear is change. • They don’t like change. If you hire them into that position, they’re all gung-ho about it. I mean robotics, automation, they love it. But then take the other guy who’s 55, 60 years old. Even though he gets new equipment regularly, he’s not quite as anxious to go down that road. • I think it’s the fear of the unknown. Fear of failure. A lot of people don’t understand some kinds of advanced technology. And in the quality world and in the engineering world, whatever we have, I’ve found that I have a hard time even finding people to do inspection work because they don’t know how to use a caliper or CMM. It’s actually very simple if you just took a little time to learn it, but people are scared of that, and they think it’s black magic when it’s really not.

• You previously asked if employees are afraid of technology. In unskilled labor, the ones who are afraid of it are from the younger generation, which I find that completely opposite from what I would expect. Probably because those who have been there for a while, the ones who are older, and are obviously there to stay. They’re committed. They’re loyal. The pitch that we’re giving them with the technology component is to make us faster, and the faster we are the more bottom line profit. The more bottom line profit, the more profit share for all.

• People just need to know what the technology is, and then it’s not insurmountable, and anybody can learn if they’re willing to.

• We’ve started doing technology development, though. We’re taking it from all aspects and trying to be ready for it. But I do believe that this shortage is going to get worse.

Do you have formal management or workforce activities that you would use to keep people? I know that only 19 percent of you do. Is that something you’d think about?

• As an employer, like I mentioned earlier, we have the same pressures. We’re trying to move more stuff online because that opens up our net for adjunct instructors. You can live in the Twin Cities and still teach psychology online. We’re trying to find somebody with a master’s degree who isn’t already fully employed and already in the central region.

• Have you heard of the term “seam?” Seam, S.E.A.M. It’s a socioeconomic approach to management. With the economics factor, you always have a bottom line. You have to be profitable. You have stake holders in the game who you have to pay, right? But the socio part of it all revolves around the people, and the realization that as a business right now, our pot of gold

• The fundamental problem for us is we’re not creating anymore people. So, that’s part of it. Do we have the skills to support

your industries? That’s why we started our automations systems technology program. Because we know that a lot of the employers in this room aren’t going to be able to just throw bodies at it. We’re going to have technicians able to help with that, which maybe becomes a multiplier. • We should encourage larger families? • I’m beyond that age. Somebody else has to take care of that one. • Our biggest thing is the owner is not actively involved. He’s down in Florida. So, every other day he’s emailing up another message. • We give kids out of high school $15 an hour just to come in and get associated with the business and know what it is. To me, I cringe every year when the health cost increases come out. Anybody else have high costs of health care, high costs of health insurance? • I believe our health care costs went up 8 percent this year. Those are just large percentages when it comes on top of 15 percent. • Right. • I think the deal with $15 an hour is, “Why is the government telling me what I have to pay?” I don’t care if my minimum wage is $25 an hour. That would be my argument. It just bothers me. • I think the $15 in this industry hits people harder than it does manufacturers. • When we first started these focus groups 11 years ago, even when the economy had gone off the cliff, the cost of health insurance was the number one issue. It doesn’t come up as much in these focus groups as it has in the past. Is that because it’s just an accepted cost of doing business? If you’re not an employer, you don’t have to worry about their health. I think it comes around every year when we have to do our renewals, and it reminds us just how expensive it is. But I think it’s an expected norm now, where employees are a lot more receptive to it. A lot more people are on HSC plans. Everybody has to deal with it.

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Rosemount , MN April 2, 2019 There is an organization in St. Paul that predicts the number of unfilled jobs in Minnesota could soon approach a quarter of a million. What’s your reaction to that?

our sales are pretty flat because we’re helping people save energy at the same time the economy is growing. So, those companies fight just to find 10 more people to take on more business. That is going to impact the numbers.

• It’s different plant to plant. And the reason I say that is some of my facilities have more employees; we seem to be more cushioned from it. The sites with fewer employees, it becomes a very large issue very quickly because it’s hard to get people in the door and train them to use the equipment we have. If we are talking about the skill gaps, individuals coming out of a two-year tech college have a good base, but they don’t have what is really needed to support the high technology equipment of today. So, we do a lot of onsite training. What I find is an individual who comes from a two-year tech college will grow 10 times faster than an individual I take who’s just very mechanically inclined. If you’re an individual who has baseline training, you can zone in more on the issue.

• There’s been a big problem with a driver shortage, and there are not a lot of people who necessarily want their kids to go be a truck driver. So, it’s really, really difficult. These companies are paying huge sign on bonuses, up to like $40,000 to get a truck driver, and they’re having to pay them like $80,000 to $90,000 just to go drive trucks. So, that has continued to drive prices up which directly affects manufacturers getting your products out the door. We’ve faced this challenge over the past year. Just to find the capacity and pricing that’ll get you a truck versus here’s a reasonable rate but the truck may show up in a week, has been a challenge. And on that one to 10 scale, where would you put your company?

• As the electric utility we’re providing electricity to manufacturers. And I think it’s really hard to quantify the impact of the absence of opportunity to grow. If the company says I could take on new business or new product lines or expand, it’s hard for me on the outside to quantify the impact among the economy overall. It’s a factor, but it’s hard to say exactly how it impacts our business. Generally,

• We’re probably at a seven, eight. Internally, we work with some temp agencies. But, in terms of getting account managers and our core staff in the door, we haven’t had a huge issue with that.

• Our businesses surround the Twin Cities, but we recently opened up a Chicago location. I’m trying to combat some of that because some of these outskirt companies that might be an hour and a half out of the Twin Cities, you have to call in your freight by 10:00, 11:00 just to get somebody in the doors that day. So, that’s definitely been a challenge.

ing. And it just takes time to cultivate, so as a result, I think the projects are taking longer. How about economic development? How do you calculate that into your economic development planning? • The bulk of my job is retention recruitment, and as we’re doing our best retention visits with our companies, we’re hearing this skills gap and that ranges from leadership to welding. I mean, the gap is just everywhere. We’re having companies that can’t even find bodies to answer phones. They don’t have that communication skill. They don’t have the computer skills. So, we’ve been really trying to partner with our schools and their programming as they’re moving forward and changing what they’re teaching in their classrooms. We are really trying to change the whole

• Well, from the training side, we look at the skills gap pretty heavily. We look at if they have senior employees and vets on staff, and we try to get them the right skillsets. So, we work with other colleges quite a bit to help them get that two-year degree, that welding degree going. Press brake is one of our really, really deep skills gap we’re trying to attack. And I have an online trainer who will basically train nonstop. So, I guess from a training side, I go to a five, maybe a seven, based off what areas we were working after that. Is it causing you to forecast differently? • I think when it comes to our sales, absolutely. This is our minimum threshold to be able to meet our production demands. Which does include overtime, so we’re spending a lot of money because we don’t have enough people. You know, you have that mismatch of skills. So, there is a significant amount of money that is put towards trying to ensure that we can meet that minimum demand. I do think we scale back in our sales, at least right now, because there are only so many people.

idea of what manufacturing is today and what’s it going to be in 10 years. We’re trying to figure out we address the business’ needs first or do we work with the students first? How do we partner and marry that?

• Well, we’re a multidisciplinary in architecture and engineering, about 10 disciplines. So, in varying degrees each of our disciplines touch projects involving manufacturing. And I would say that there’s a huge parallel between what I’m hearing today from the trades that I meet with at morning breakfasts. And as a result, the time that it takes to do a project is taking longer because they’re having to figure things out more. And in our industry, and we do work with a national recruiter, there’s a decided gap, and I think it’s a result of the ‘09 recession. I call it the Grand Canyon between those people who are coming into the profession and people more my age. There seems to be a gap in the middle, and that experience level is affecting the way we will work on projects involving manufactur-

• Shakopee just started doing something called the Academy Program where they’re really focused on different types of courses, different industries, health care, manufacturing, engineering. So, we’re hoping that will encourage students to try different things. Manufacturing, when you’re talking to an 18 year old, is dirty and grungy, but it’s not. I mean, it’s very sophisticated. I was just at [COMPANY], everything is computer based. How do we capture those students who are good at that skill and introduce them into the manufacturing industry?

Does the worker shortage change strategically how you plot economic development? Do you look for a different kind of business?

for us. I brought in some people who are young and needed flexibility in their job for four-day workweeks. Two moms who have young families and need that flexibility start Monday, off Friday and start Tuesday, off Monday. It’s just trying to find the right people so it can benefit them—from location to flexibility. I have positives and negatives to the effectiveness of that, but it has obviously retained a lot of our long-term employees.

• Seventy percent of our workforce in Scott County leaves the county every day. Where are they going and how do we capture those people and keep them in our region? So, retention is hard. Recruitment is hard. We have to focus on what we have and what we’re doing well and what we are missing and how we help those businesses capture those types of skills. Is it through our universities? Is it through our post-secondary? How do we do that? So, it’s a challenge. We’re struggling.

Is your challenge to find warm bodies or skilled workers? • For us, manufacturing is light manufacturing and assembly. So, just bringing in skilled people in those key operational sales and financial seats is difficult, and I think it’s one of their biggest challenges.

• Primarily, what we’ve been trying to do is go out and meet with industry partners to build that partnership. We have the ability to do training as well, but we can do advanced training for more of your graduate-level courses, too. We are also trying to look at the entire spectrum of everything. That being said, when we go out we’re seeing that there’s a lot of Baby Boomers retiring, so who’s going to step into those leadership roles? And how do we help the current employees get this specialized training that they need in order to take on some on those roles?

• Well, I think from a numbers’ standpoint, we’re comfortable, we’re hitting our demand, we’re hitting our growth goals right now. But, in a few years it’s going to be much harder. So, we’re probably five to six, and we’re going to need to be in the eight to nine in a few years. And it is more toward the skilled technical then the skill managerial area. Up until two weeks ago, 10 percent of our workforce in our 42-year-old facility had been with the company for 42 years. Then, we got a couple of retirements. So, those people long tenured are in management positions. We’re definitely going to need to fill those, and we have a bifurcated page group where we have this long tenure group and then we have tremendous number of young workers, but they’re mostly on the floor. We don’t have a lot of middle-upper managers who can move into that succession path towards managerial and executive roles, so that’s probably our biggest challenge.

• I think it’s such a delicate chicken or egg kind of situation. What comes first? I don’t know, quite honestly. At this point, it’s just trying to look at everything from a more holistic standpoint, but also ask, what do we need and what do the students need? We are seeing some of that with salaries and wages. Shutterfly is paying $17 an hour, Target’s paying $19 an hour, and there are manufacturing companies paying $14 an hour. So, how do you have that conversation with a manufacturing company? How do you balance that? I don’t know, it’s hard.

Are you strategically looking at solving that in one way or another?

Idealistically, how would you do that? I mean, is it the marketplace working or is it something beyond that? On a scale of one to 10?

• Yes, we’re starting to. We’ve made one transitional succession change, and now over the next few years, we’ll be making some of those other ones. And then we have some specific areas, like toolmaking, where I jokingly say, toolmakers are literally dying off. You very seldom see a young toolmaker these days. But, we created an apprenticeship program purely to help start filling that gap, and now I’ve won an apprentice in that program and hope to have others. So, it’s our long-term way to fill some of that. It’s not so much the workers on the production floor; it’s more of that strategic succession planning for management executive levels. That’s our biggest challenge. We made a strategic move last year where we made first acquisition in the history of the company. It’s in a different geography, and it was to help us purely build capacity and help diversify our business on a long-term basis. And with that, we added 35 employees. We’re at about 100 total employees in the company now.

• We’re at a really tough spot, too, because tuition rates are skyrocketing. So, are you going to have a student who is able to front that money or take out student loans in order to go and get some training versus going to Shutterfly or Target? • It’s a tough one for me. Today, probably about a four. In about five years, probably about a nine and a half. For a small business, about a third of those employees have been there forever; they grew up there, they were born there. And that third is going to be retired in the next five to six years. So, part of my challenge is how do I bring in people and work that succession plan to fill those gaps, which are key gaps in a small business. Operations, finance, technical gaps. Right now, things are pretty good

Somebody in another focus group said that the way manufacturers respond to the skills gap will have the same effect as the way they responded to the 2009 recession. When the economy fell off the cliff, a third of the first focus groups we had were saying, “Oh my gosh, what am I going to do?” And a third of them were saying, “Who do I buy? How do I expand? How do I take this time to improve training?” Do you agree with that?

their friends talking about how they work at home in their pajamas and get up at 10:00, I’m not saying they’re lazy or anything, but it’s more flexible. Manufacturing isn’t flexible. • As I go about my business talking to businesses, and I listen to some of the conversation here, I think, okay you’re struggling, too. Skills gap and headcount. Right? And I think, wow we’re in that same boat. If you look at higher ed in general, enrollments are down. It’s hard for us to prepare that next generation worker because they’re out working. We’re kind of countercyclical to that unemployment number. Yet, obviously that says there’s a lot of opportunity for us to provide training education.

• We’re probably around a four, and I see it going up. It’s not clear how fast and for how long it’ll go up. We’re in a little bit of a different area than a lot of traditional manufacturing companies. What we build is custom test systems for people that test everything you all build. So, our manufacturers are really all engineers in the sense that they need to understand enough about electronics and computers to put together the systems that we’re doing. But yeah, it’s hard to get workers at every level and every type. I’m always on the lookout for good people, of course. And fortunately/unfortunately we’re expanding right now, but very gradually so that’s a lot easier. If you start really expanding, hiring a couple people a month gets tough to keep doing after a while. You use up all your contacts and friends, and now you’re looking at resume databases or whatever. I hired a technician, and boy if you get a good technician, you have to hold on to them because it’s hard to find really good ones it seems like. Really hard. Which is really the same in sales, right? It’s easier to retain a customer than it is to find a new one.

• I think that’s the way we do it. I’m not so focused on the number as the way we approach it. We’ve always kind of worked on the 80-20 rule, which is provide 80 percent of the skills that apply to all of your manufacturing firms and take 20 percent on that specific piece of equipment. I think we’re looking at that a little bit differently and saying let’s focus on learning how to learn. So, when you bring in another piece of equipment that’s new, you know you go from the yellow robot to the orange robot. I know enough about robots, and I learned how to learn new things, and now I can do that. It’s how we go about our business of educating and training without focusing so much on the numbers. Enterprise talks a lot about process improvement and continuous improvement. How important in that kind of environment is your lean journey? Not at all or somewhat?

• Well, my business is pretty similar to the plastic side. So, our equipment is very similar. We use tooling that’s extremely similar. I’d rate it probably a five. And I think it’s used a little bit as a catch-all excuse nowadays, to a certain extent, because we don’t have people coming out of school who know how to die cast. That’s never happened; so, that is upon us to find people and train them to a certain extent. That two-year school that gives people that base knowledge is no different than a four-year school giving somebody just a base knowledge to come in and do their job at that point. So, I think we probably are suffering a little bit more from a cultural gap than anything.

• I think it’s very heavy. It affects the amount of money you can make. It also goes along with training. The training becomes easier as the employees grab on to some concepts and see that realm. But as long as you have lean in place, they’ll actually gravitate towards that. And is there a cool factor in lean within your company? Within your culture of people? They get to participate, does that help retain?

• If you look at the workers nowadays, I think their expectations are tougher for a manufacturer. It’s very tough to let them work from home. If you’re on a die cast machine, that can’t be done. Flexible work schedules can’t be done. You have to be there at 7:00 and start that machine on time because everybody out there is relying on you. And the work-life balance to go to a kids baseball game at 2:00 or something is hard when you’re shutting down a machine and you’re not producing product. I think that’s probably a bigger issue overall than the skills gap because you can bring people in and train them if they want that job or if they think it’s something that’s desirable. But, if they hear

• The engineers kind of geek out on it; it’s kind of their thing. The good thing about it is we talk about lean on our visits to elementary schools and middle schools. iI’s like, put the garbage can in the same spot and it’s always going to be there. We kind of make it easier for them and we give them projects to go home and do at home and we work with them that way. So, they can kind of expand their mind a little more on the engineering side. Anyone else? Is it a good strategy for you to combat this? • It’s been 50-50. We’re a lean culture and a very con-

tinuous improvement culture. So, it really helps dazed employees because we really have them engaged. If I look at the past, and I look at an electrician or a mechanic, they really weren’t involved in continuous improvement. We were called just to fix the equipment, and if you didn’t pay us a quarter we probably didn’t fix it. So, we came from this culture of a very single sided job. Now, we’ve merged those people into kind of being the same, and we put them in these lean groups, and they’re very involved. My younger groups really love that.

combat the skills gap. There’s always going to be a level of training when you bring somebody out of school. You like to tinker with things, you like to work on cars? You welded in your backyard once? Yup, come on in. Let’s try it. And we’re having to continue to open that door to try to work with a variety of individuals. But, there are also still programs that went away completely, like tool and die. I mean, that’s a lost art. It’s still very much alive, though, in our business today. • How do you make up 20 years’ worth of knowledge and experience? We can get new kids in, but even in there, the schools are barely pumping out people. We know what their enrollment numbers are, they’re at capacity at the beginning, but how many kids actually graduate from those programs? They’re still 20 years behind the people that we’re losing right now.

• We’re just kind of reengaging with the lean journey. The company has been on the path for a while and has kind of been loose with it, if you will. We realize we need some outside expertise to help us reengage or reignite that, and we’ve put one of our quality people in training as part of that. And we’re re implementing a 5S program. So, we’re kind of reengaging.

• When you say you have somebody who’s 20, 25 years experienced, and I have somebody out of a two-year tech program, they don’t have 20, 25 years of experience, right? When we finish with them, they’re entry level. So, I agree. I can’t replace those with the 20, 25 years of experience. And it’s hard to pair up. This is their life, their career. Some get really jazzed about taking somebody under their wing and bringing that person into this new world and helping them grow, but there are a lot of them who have been doing this for a while and have no interest in mentoring or bringing on this new kid.

How valuable is a formal strategic plan to your ability to grow profitably? • I don’t think that’s unique to manufacturing, I think a lot of companies don’t take the time to do the strategic planning. It’s kind of a stereotype, but the Japanese are much better at strategic planning—business wise—than American industries. There was a CEO of a large construction company in Japan who came over to visit, and as he got off the plan, he says, “Oh I feel so relieved. We finally finished updating our strategic plan.” So, the question was, oh how long is your strategic plan? 350 years. It’s hard to find an American CEO who thinks of next quarter. We’re very myopic in this country. The reason people suddenly found themselves in turmoil is because they didn’t do the 10 or 20 year plan. Something’s going to happen, what’s the hedge against it? How are we going to have a buffer? How do we setup so we can be responsive? Those sorts of things. If you start doing more strategic planning, you’re less likely to have a situation where you’re in a panic. Something we’re adopting, and I’m really impressed with it, is EOS, Entrepreneurial Operation System. It’s having good results already.

Someone from another college told us a couple of years ago that 40 percent of people who enter technical college need remedial academic work in reading and mathematics. Does that translate over to the kind of people you’re able to produce? • That comes up a couple of times. They can’t read a tape measure. • Absolutely. I’d say 40 percent is a solid number to me. But it’s significant, that’s for sure. We as a system, as a state college system, have dedicated a considerable amount of resources to developmental and remedial education. I sat at something like this a few years ago with a manufacturer up in the north end of the metro and he said he gives his machinists a 10 question quiz, and one of the questions was to add three quarters of an inch and half an inch.

• We have a strategic plan, and that strategic plan has not held up in the upper echelons in our executive team. It’s something that is rolled down to each functional department. And so, from an HR perspective, not only do we have our overall strategic plan for the organization, but there are strategic objectives that are one year, five year, 10 year—even within our own department. And we’re doing the succession planning. I think we have a really robust succession planning program. It’s not a one-hit wonder, it’s a multi-touch plan that we look at every year.

• I mean, we teach remedial basic math measurements, how to add decimal points, how to measure, how to look at a basic blueprint. Now to be fair, I still struggle with that one, but I mean that’s something that we do in house. I think it’s easy to pick out one place to lay blame. I think it’s more societal. You hear groups say it’s the teachers’ fault and then the teachers say it’s the parents’ fault and I

• We have a variety of items that we’re trying to do to

Given all that we’ve been talking about, how’s business in general?

kind of say, yeah it’s all of us. We all built these kids. So, that’s how I tend to look at it. • Well, the good news is probably 100 percent of the kids can blow up an alien on TV; they are very well trained on that from playing video games.

• We started a course that we think is somewhat recession proof. I mean, that’s huge. And we’re changing our direction. When you were talking about robotics, I was going to jump in. We don’t have a robotics path, but we have jumped into adding manufacturing, and we think that’s important as a long-term strategy for us. It’s also a way to attract people who are interested in that versus traditional manufacturing.

• I just want to offer the thought about connecting business with the K-12 system. We helped support that; it’s a way for high school kids to actually work on a manufacturing project with local companies. And you guys are in the middle of that more than I am. Maybe you can talk about that as a way to introduce the idea that there is a future in a manufacturing job.

• I mean, we’re growing. We’re going to continue to grow; we’re just going to have to continue to be more creative. I mean, all of the solutions that we’ve come up with and we’ve discussed as a group today, we’re going to have to continue to have that sort of outlook and mentality. And think about how we can implement a lot of these different processes and different concepts while making sure it’s not a detriment. But, I’m still very confident in where we’re headed.

• Right. One of our initiatives is to get in front of the high school parents and show them about manufacturing. And then it’s kind of one of these things where you’re not just going there for a paycheck, you’re going there for a career. We bring the kids into our plants, and we’ll team them up with the operator who runs that machine and then they go to the next operator who runs that machine. So, a full day of seeing what manufacturing is about and actually put their eyes to it. It gives them that knowledge and gives them that background to go to their mom and dad and say, “Hey, this is pretty cool, I saw something I really liked.” We also have supplied the schools with equipment. So, that’s a big thing. And so I think as industry partners, if we can help get these kids in front of it early on, it gets them more excited and a big thing is the perception of the parents. The kids get pretty excited when they see this stuff because they realize, hey it’s not just this factory that I’ve seen in movies. But the parents still go, that sounds great but not for my kid. So, we’re really trying to not only focus on the kids, but we’re also working with the parents and getting them to tweak their perception and take another look. This isn’t what it used to be when you were growing up.

• I have a feeling that the 250,000 worker shortage will lead to more of a dramatic shortage in retail and service and low wage jobs. I think manufacturers will figure it out. They’ll be more automated, there’ll be more technology, they’ll be flexible with their jobs as much as they have to be. They’ll keep senior, older workers in some fashion. But, the real impact is going to be on the low wage economy. I don’t think that’s the concern of Enterprise Minnesota, but it’s going to play out in ways like when you show up at a retail store and there are not going to be any clerks there. There are not going to be people helping you get stuff off the shelf. It’s going to be a more automated process because those companies are really going to be desperate. • We’re probably going to have to change and get better. I guess one of the things they’re going to do is loosen up on immigration. So, we’re probably going to have to be better at dealing with diverse workforces out there. We have three locations. We have one in Minneapolis, we have one in Monticello, and we have one in Watertown, South Dakota. And they each have their own issues on the employee front. In Minneapolis, entry level employees are much easier for us to get because there’s more of an immigrant workforce here that fill those roles. But now we’re dealing with multiple languages that we’re trying to get through. Watertown, South Dakota has a very low unemployment rate. It’s tough to get people out there. It’s the worst place that we have for recruiting people, and they’ll pick up and move to a place next door for like 50 cents or a buck an hour more or something like that. Monticello’s a little bit in between. But, our company is celebrating our 100th anniversary this year. We’ve been a business a hundred

• There’s a group in a tri-district coalition of some sort who’s trying to interact with the business community more and get businesses to partner with them about what kind of training, what kind of schooling kids need in high schools. Not just for manufacturing, but for any field. • We did a focus group in Brainerd a few years ago that was all kids who participated in their robotics team. And the teacher that was with them said this is great and they were just cool kids. It was fun to talk to them about how fired up they were about all this. But they were all on a fouryear engineering track.

years, and I think it’s a little bit of an insult when people talk to me at work at times about how tough things are. I think it’s been tough for a hundred years. Really. I mean, 80 years ago things were tough. We start the company with no money, we get through that, we go through recessions, we go through all of this. It’s in our hands. If we’re not successful in 10 years, it’s probably because of how I led the company and the management team out there and such. We have to control things in our destiny, and most of the stuff is.

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Plymouth, MN April 2, 2019 Let’s talk about the workforce issue. We know it’s on everybody’s mind. On a scale of one to 10—one being it’s not an issue for you at all and 10 it’s really terrible—where is it for you?

neering unemployment rate in Minnesota has been probably under 2 percent for several years, but wages have been reasonably flat despite that. Now, I’m seeing jumps of 30 percent, 40 percent. We’re having some folks get poached; one gentlemen that got poached last week had been with us nine years. We don’t overpay, but we don’t underpay either. We have strong benefits, but there are those ready to throw some money out there to get down.

• I would say it’s an eight for us. We’ve been in business about 18 years, and we’ve never seen it as bad as it is right now. We have seven temporary employees out of 60 employees, which is more than we’ve ever had. We have trouble finding people, especially skilled people, and we use temporary agencies a lot of times to hire. We used to hire almost 100 percent of them. Now, we hire maybe 15 percent of them. So, the quality of the people coming out of the temp agencies has really dropped. We’re struggling to find entry-level positions in production and shipping and receiving, warehouse positions. With the management people and front office people, it’s not so much of a problem. Those are typically low turnover employees. The other problem we’re having is with our sales force or technically skilled chemists. Most of them are between 58 and 62 years old now. We’re a little nervous about what’s going to happen in the next 10 years because there isn’t a group following them to come in and take their place. We don’t have enough skilled people.

• I would say between seven and eight. I had a relatively mature workforce. Many of them have probably over 20 to 30 years of working experience within the industry. It’s really hard for them to pass down the knowledge. I purposely want to hire millennials so that we can have that flow going into the work force, but it’s really hard for the mature workforce to pass down the knowledge. They just have a totally different way of doing things. • I think we’re seeing a lot of similar things in production. It’s been a struggle to get and to keep people or temps. We have a quality issue with our temporary employees and being able to have the capacity we need because we are growing at a pretty good clip. It’s a constant challenge. I think we’re focusing on more innovations so that we can manage that going into the future because I don’t see things getting better any time soon.

• I’d give it a seven or eight, depending on geography. At our Glencoe location, probably a nine. Just the ability to find production workers, skilled or unskilled, is hard. You have a thin population to begin with and competitive interests. We’re starting to see that creep into the engineering realm here in the cities. Talent’s available, but the price point went up on the talent, and personally I don’t know why. We’ve seen the engi-

• I own a small, secondary operations company. I don’t have an issue with workforce. My thought process was always sales, sales, sales. It’s always your biggest challenge.

A study has been done showing there are 60,000 job openings today. Not just in manufacturing, but in the economy in general in Minnesota. In four years that number’s going to grow to 250,000 jobs. How do you navigate around that?

biggest challenge, especially with the millennials and Gen X, is they’re very online oriented. All of them are always on Indeed and all these search sites, and they’re always looking for their next job. It’s just part of their culture, I think, to do that. It becomes more difficult to retain people who are always looking around. We can’t fault them for wanting to better themselves, but I think the longevity of staying with one company has changed through the last 10 years.

• I think it’s forcing us to look at how we manufacture and find different ways of doing things, maybe better ways of doing things. Trading it out. Like with automation, changing some of our raw materials, changing some of the manufacturability, investing a lot more in product design.

• We bring in a lot of raw talent through an agency, probably 75 to 80 per year. On the engineering side, we’ve been using a site experience program and a recruiting tool, which is a stem internship program, to get a big prospective on talent.

• I would agree that we need to look at all of our manufacturing processes and figure out better ways of being lean and improving the processes. Just trying to identify opportunities.

• We’ve been working on that for really the last year. We are a lot more focused on it then in the past. We’re basically making

• We’re kind of experiencing the same thing, finding talent, where it depends on what department of your company you’re looking in. We’re looking in our fabrication assembly shop, which has a lot of entry-level folks. Sometimes we look through temp agencies and then we hire them on, and we’ve historically been able to identify the best talented people that we might take. Then, we provide the training. That’s been a good, successful course for us, but we’re still struggling with welders, for example. It’s hard to find certain machinists. We’re also facing the aging workforce issue. • One of the areas I have my HR director starting to look at is the apprenticeship program. There are a lot of groups in Minnesota that are attaching themselves to some form of an apprenticeship, on-the-job-training. I haven’t seen anything gel into something that really is working yet, but I’m going to be trained to work with a Chamber of Commerce in Chicago. It has been a very successful training for employees. For us, the long-term success is going to come from having that younger workforce come in with some skills or get help getting skills.

sure that we’re three deep in almost every position in the shop, and we’re cross-training employees. We have a lot of flexibility, being able to move people around. We’re tapping into those more experienced individuals. I think that helps them feel a part of the organization, what’s going on, gets them involved, and shows that we care a lot more about them as an individual.

A lot of people talk about the attracting talent issue, but talk about your culture. Baby Boomers are getting ready to retire. Are they willing to be mentors? Do you have a formal program in your organization to retain your talent and keep that culture alive and thriving?

• We’ve become much more conscious of cross-training employees. For one, it insulates you a little bit when somebody leaves, but it also gives more job variety. The younger generation likes variety. They don’t want something that’s mundane every day. They don’t like routine. They like to switch it up. By cross-training people, we can move them around and give them more variability in their day. They seem to stay a little

• We have an informal program to try and bring new people into the company and train them on the job. I would say our

happier as a result.

ago. So, maybe college bound kids don’t have the skills to do the things that we require in manufacturing.

Are you working with your local schools at any level? Are you partnering with any economic development entities to really help them understand your needs and vice versa, so they’re training the right people for the jobs that you have?

• The loss of industrial arts is a real problem. • We have high schoolers walk in the door and ask, “Hey, do you guys have any jobs?” One guy comes in after school. We had to check departmental labor law because he’s still a high schooler, and manage what hours he can work. When he comes in every night, he works for four hours in the evening. We’ve all made it clear we will check in with him. Is the homework getting done? Because that comes first. If he needs time, go do that, but that comes first. He said, “You know, this is the best job I’ve ever had.” Why aren’t kids getting a chance at a younger age to explore if the industrial arts are for them? It isn’t for everybody, and nothing should be for everybody, but they should get an opportunity to try it out. He could have a very rewarding career and that would help us.

• I don’t know how formalized it is, but I know we work with different schools through different activities and have the opportunity to present what we do. We’ve tried to get interns this summer, that’s an opportunity to look at ways for improvement and cost reduction. Minnesota has an internship program for STEM students. The state pays half their wages for the interim period, so we make use of that where we can. Are you familiar with the pipeline program that’s out of the Department of Labor? Now, they’re targeting the high school age kids, but we heard this morning down at Dakota Technical College that a woman from [NAME] said, “The more I think about it, I think I’m less crazy to think that maybe we should start going into daycare centers to help kids understand the value of manufacturing.”

• We’re hiring people who started off older in manufacturing more so than we would have in the past. We wouldn’t have necessarily looked at a 30 or 40 year old as somebody who was going to go in and learn. The 20 year olds and the 25 year olds aren’t necessarily interested. Some programs that people are talking about are trying to make manufacturing seem exciting. I don’t know. I’ve been in manufacturing since I was 16 years old, so that’s a long time in manufacturing.

• Mold the minds right from a young age. Do you experience that perspective of parents who are still steering their kids toward the four-year education? • We thought about going into the high schools and maybe attracting students who weren’t college bound to come and give us a try. I was lucky enough because my brother-in-law is a principal. I asked, “Can we come over and talk with students who might not be college bound and ask if they’re interested in coming to work for us?” He said, “You’ll have to stand in line behind me because I can’t find enough janitors and cafeteria workers, and paraprofessionals, and teachers.”

• It’s not generally as exciting as some of the shows make it out to be. But it’s also not necessarily the least exciting job in the world. If you try to tell them they’re going to be designing a race car or making something that’s really shockingly exciting, they’re probably not going to last very long. Let’s talk a little bit about what we call continuous improvement or productivity improvements. When you look at your people, are you doing things to improve your productivity and develop further improvements inside your company?

• You mentioned the digital age of younger people today, which is all very true. I recently read an article about a company that’s really embracing this with their younger people. If people out on the shop floor have a problem with the machine, they can Google or YouTube whatever it is and problem solved. It’s allowing them to find solutions by using the electronics they’re comfortable using.

• Continuous improvement never stops, right? Whether it’s new tools or machinery, it takes steps, particularly labor. Are you all using robotics inside your companies? Are you thinking about it?

• You can lock out Facebook and some of those others with your servers.

• Absolutely. • Thinking about it. You hear in the media that robotics is going to take away jobs, but yet every manufacturer we talk to says, “No, no, no.” It’s what [NAME] was saying about giving them opportunities to learn new things, and you need people to run robots.

You all said that you have to do a bit of either retraining or training, but why is that? Are you concerned about the K-12 system? Is it more specialized with the knowledge that you think you need inside your company or is it both? • I feel like it’s maybe starting to turn a little bit, but a lot of K-12 schools got rid of their shop programs a number of years

• Robotics is a tough fit for our organization because of the size that we run. We would have to set up maybe 25 or 100. To do

that with robotics is never going to make sense.

that in front of people all the time. We don’t have a formal strategic plan, but that doesn’t mean we don’t have a strategic plan. We probably have a look at it in a two- to three-year time frame because it is informal, but it is also subject to change if we need to be nimble. We’re constantly trying to fill in pockets of new customers. Trying to get the three executives together, though, to sit down and formalize the plan would never work because we just don’t have time. But, there’s still a plan.

• We’ve continued to look at it, but we’re heading very well. We have a lot of custom work. How many of you have a formal, written strategic plan? Half of the companies that were surveyed by our pollster this year said they do not have a written strategic plan. For those of you that have one, why do you find it so valuable? • For me, it helps keep me focused on where we want to go as far as growing the business goes. I’m sure you’re familiar with EOS. We’re a practitioner of EOS, and I like the way that breaks things down. You put a long-term goal 10 years out and then three years. You’re constantly looking at your oneyear plan. It’s not something that you’ve developed and then put on a shelf. It’s about having that focus and talking about it. Where are we going? What are we doing? Are we working on the right things to hit these goals?

• We started the process almost a year ago to become certified ISO 9001:2015. It has been a struggle. It’s taken a lot of effort. That being said, in that whole process, we didn’t necessarily have to write out a strategic plan. What we did was a very high-level SWOT analysis to build this framework, and then from there identify corporate quality objectives. The most important thing with that is having quantifiable metrics that we can track on a monthly, quarterly basis, and drill down from there. It’s been extremely helpful to develop this framework and to provide this direction. The nice thing about this is it’s a closed loop. You’re always circling back. You’re always continually improving because of how it’s designed. You’re closing it out on an annual basis, but as you’re redoing this SWOT analysis, you’re identifying things for the next year or for the next few years that you can establish new corporate quality objectives to. It’s not like this one-page document that’s built into the corporate quality objectives through the SWOT analysis. We haven’t necessarily closed the loop yet, we’re still getting to that stage. But we’re seeing the end goal, which we know going forward is just going to help us build for the future.

• We didn’t always have as good of a strategic plan as we should have. In those years where we were a little weaker, we found we were chasing shiny objects all the time. You wasted a lot of energy doing that, and you’re playing the odds that some things are going to work and some aren’t. When you have a stronger strategic plan, you don’t waste as much energy chasing things you shouldn’t. • I’ve talked to three customers who are about 90 percent of our business, so it’s more their plan than ours. We have three big customers who are basically driving what we’re doing. Our strategic plan is trying to figure out how to keep them happy, and then figure out what to do if one or more goes to waste. It’s a little bit hard to come up with a strategic plan with that in mind. Then, we’re a family company. I have two sons and a nephew who are working in the business now. Our focus right now is trying to get them to the level where they can actually run a manufacturing company and understand how to do it, and all the little things that you have to do to keep a small manufacturing company going. That limits our vision in the front. It really depends on how well they can work if we want to keep it a family business.

• We started ISO probably about 20 years ago after saying we didn’t need it. You already have a quality system, and we’re just going to document it and make it work with ISO standards. A lot of people just rewrite the whole thing from scratch, which was $300,000 in six years. Ours is $35,000 in six months. The employees were directly involved in that development. They live it and breathe it, and they pass it on to the new employees. It turned out to be very successful for us. It brought our group together more cohesively. • I discovered that it really helped reduce some of the key man risk. That was one of the things that I identified in a small organization. You really do have key man risk that’s been there for 12 years. The whole ISO process really helped us identify the key man risk and determine how we take the information that is in his brain and put it down on paper. That’s what we’ve been able to do over the past year. Through our work orders, we set a goal to have at least 10 process improvements a month. That’s coming directly from the operators. That’s a metric that we can track and follow-up on monthly. How many did we get this month? Then, you can see productivity, rate per hour, or whatever it is.

• The problem is we’re a really specialized precision sternal wire manufacturer. We have resource funnels all over the world, but it’s a niche market. We might have 10 or 12 competitors who make similar spindles. We have to decide if we want to branch off and try to do something else or not. My brother and I aren’t necessarily all that interested in putting a whole lot of effort into making the company 10 times as big as it is if our kids aren’t going to be able to come in and build it up. • We have a pretty clearly laid out mission and vision statement, which is integrated into our ISO quality program. We have

Where do you see your future growth? Do you see it as longterm?

chemical industry. We’re looked at by a lot of government agencies, but our customers and people dealing with chemistry are also very regulated. If it’s not their main business, they try to subcontract it out. We’re the recipient, thankfully, of a lot of their business because they want somebody who’s knowledgeable and sophisticated in chemistry to handle their subcontracting work. We’re getting more and more people coming to us to do subcontracting work in the chemical business, which is nice. We see more of that coming in because regulations are getting tighter and tighter all the time.

• That’s one question from our strategic plan that we’ve done a great job of answering: Where is that growth going to come from? Some of it, obviously, is trying to get more market share. It might be developing new products, but it’s building on our customer relationships and customer service. With the employee issue, that’s a good question, too. How are we going to continue to grow if we can’t find the right people? There are a lot of questions that we still need to try and figure out. • Product offering for our standard products is all the innovation that we can bring in. It’s just about expanding our footprint, our geographic footprint in particular, in what we’re doing now. We’re expanding in Australia right now. That’s going reasonably well. From there, we’re spreading into Asia, as well. • I think some similar things. Really, we are working on relationships with new customers. Customers who we really haven’t focused on before. Then, with that focus on our ability to scale, we continue to grow with them. It’s a lot of relationships and customer service. • Growth is one of those things that I’ve been struggling with for a while. You can grow yourself with muscle, or you can grow yourself with cancer. I’m not entirely sure whether a company is the right size with 50 people and capable of serving our market for a long time. We have 50 people. I’m a little bit contrarian as to whether growth is the most important thing for the company. If you’re serving the customers, keeping your employees happy, I’m not sure growth is an absolute necessity for every manufacturer. • We’re growing. We have a lot of medium-size companies that are just trying to expand what we do for them. We’ve proven ourselves with those folks. Our main focus is on sales right now. For us, growth is important because we have a lot of mouths to feed with a lot of vacation time. • We have seven employees. I do think that there are opportunities out there. A lot of opportunities. I’m trying to drill in a little bit further with the customer base that we have. I do believe that becoming ISO certified will help a lot, because it can separate us from companies that do similar work. I don’t feel that there are many companies that are certified to do the type of work we do. A bigger challenge is, do I hire a full time salesperson? Would that help? Maybe, maybe not. I don’t know. Quite frankly, as the owner of the company, I’m the one who should be out there knocking on the doors. Then, do I hire a controller? I don’t know what the future holds. • I look at three different things. First of all, we’re fortunate and unfortunate to be in a very highly regulated industry, the

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Coon Rapids, MN April 3, 2019 From one to 10—one it’s not much of a factor, 10 it’s heartburn—how big of a challenge is the workforce issue for you today?

six really talented people go because their backgrounds popped up, and they didn’t cut it. And they went across town to another competitor, and they hired them. They don’t do the background checks and were willing to take the risk.

• Ten. We actually have machines down that we’re not running because I don’t have people. We probably have 30 to 35 open positions right now. The marketplace is tight, and you end up retaining employees that, in a not-such-tight labor market, you’d probably let go. We deal with a lot of absenteeism. We’re taking folks off the street with virtually no machine aptitude and trying to train them up. We’ve done a lot of things in house by putting training centers in and such like that. But there’s still a long way to go. We’re trying to go to the high schools, we’re trying to go to tech schools, but the market is tight. It’s very tight.

• Last year at this time it would have been a 10, but it’s getting better. I would say it’s around an eight. Right now, we’re working with entry-level positions and that has been a little bit easier to fill. We also aren’t a large company, so we will take people with background issues. I love the work that’s going on to try to get young people back into this field. I’ve seen a huge difference over the seven years I’ve been in this field in school involvement. I know of two high schools that have started incorporating technical programs again. I think people are more aware of it because they are starting to go back to teaching young people about the value of going into manufacturing. So, I feel optimistic about what’s happening.

• We’ve had to raise our starting wages to $15 an hour, which for the year you pay a $2 shift differential for a second shift. I talked to my competitor at a convention last week, and they’re still paying $12.50 an hour out-of-state. So, it’s a penny business. It’s challenging to hire people and get them to come to work.

• We had starting wages at $12.50 an hour. We’re up to $13. We’re in a slightly different environment because we’re up in Princeton, so it’s 45 minutes to get down here. I don’t think we’re competing with a workforce that’s working in the Twin Cities.

• I think it’s just the climate. There are people who are still trying to buy social security numbers. They don’t go through all those background checks because they don’t cut it. So, they gravitate toward companies that don’t do that checking. I’ve let probably

• We stopped using a temp agency, and now we’re using Indeed. So, I post jobs on Indeed, and you can pay a little money and

all of a sudden you’re getting all kinds of resumes. I’ll get maybe four or five interviews on a weekly basis. It’s typically people with no experience; if they have some experience, it might be in manufacturing. But I do get a regular set of people who come in. I’m trying to put things in place to make people want to stay. We offer health, dental and vision benefits. We offer a simple IRA on an annual basis with a 3 percent match. We have an attendance bonus in place, so if you work four weeks in a row with no tardies or no excused absences, then you get an increase of 50 cents per hour on your check. We try to use that as an incentive. It’s a big deal finding and getting and keeping a quality workforce. That’s my single limitation to growth at this point. It’s not capital, it’s not marketplace, it’s finding, getting, and keeping quality labor.

I really would like to come in and talk to you at some point.” They want the opportunity, but they have the opportunity to not do a good job. So they don’t. A report says there are over 60,000 jobs available today. And that’s not just in manufacturing, that is all jobs in the state of Minnesota. Four years from now, that number is going to jump to 250,000 open jobs. How does that affect the future of your company? • We’re on a project to automate where we can’t find the associates to do the job. The more you pay for an associate, the cheaper automation becomes. So, the message we’re sending to our associates is your job is not going to be eliminated. We’re just going to repurpose you to something else that’s more value added. It’s motivating for the associate because it’s a better job and there’s the chance to make more money. The challenge that you run into when you automate is the specialized maintenance to keep your machines running.

• [NAME] is trying to address some of those constraints to work. There are pilot programs around child care, and there are programs looking at workforce housing. So, from an economic development side, there some pilot programs around that sort of thing. On the workforce side there are programs like Pathways to Prosperity that are taking people with limited work experience, or other sorts of issues in their background, and helping them build skills in specific industries. Manufacturing is one of those industries.

• I agree with you. As labor gets more expensive, putting capital in the business gets to make more sense. The other thing is, labor is a variable. If 2008 happens again, I can eliminate labor. If I get that machine, I can’t eliminate that machine. So, it’s increasing my risk to take on that burden of capital associated with this versus a variable cost. I think it favors the larger manufacturers, because for me as a smaller manufacturer to take on a risk like that, all of a sudden it’s a personal risk, and it’s not corporate money anymore but my own money. I’m going to make those investments much more prudently than a larger company who is going to tend to be quicker and more willing to automate.

• When you sit your machines, you actually have machines down. Maybe revenue’s down a little bit. Maybe their deliveries are down. But bottom line, I would say it doesn’t have a huge impact. • To me the impact is opportunity. You miss an opportunity by not manning machines. There’s growth in the market. I could grow 10 percent to 15 percent this year. But I need to find a quality workforce. So, you try to maintain, you fill the holes, you fill the gaps, and you make sure that you’re delivering to your existing customers. I get afraid of taking on new customers because I’m worried that my service levels are all going to drop. I’m missing the opportunity of growth because I can’t get a reliable workforce.

• All my clients echo the same thing. We know the number one problem is finding a quality workforce. And then along with that is the gap of the institutional knowledge that’s going to be lost as senior level skilled workers retire. • Tthey said I could have two or three shifts, but I can’t find or trust people enough to be here while I’m not here. I think that’s what’s limiting some of these companies from going forward.

Companies want to hire somebody with skills, and schools want to educate students to be far better rounded and responsible, even with the limited resources they have. Is that your issue overall? Are you holding K-12 responsible for the types of employees you’re getting?

• I thought about the second shift as an option and then just wrote it off because it’s not going to get the production up. That’s why I did the capital purchase, and I’m going to stay with one shift because I don’t think the second shift is worth it until I get into a whole different scale.

• I don’t think the young people right now have been through what some of us have been through, like where it’s really hard to get a job and you have to work hard to keep your job. Right now, if I have a warm body, I’m going to hire you. I don’t think it’s training. I think that someone is forced into being an appropriate human being. It’s almost like treating them like teenagers, which they are. I texted a worker and said, “You know what? I’m really disappointed in your behavior. I hope that you come back so we can talk about this.” And he said, “Yeah,

• I feel like a lot of people are investing too much time and energy into technology. Someone said all we have to do is get better machines, but a really high-end bender is $1.5 million. That makes no sense to me for what I do. So, my focus has not been on upgrading my machines but on how do I find those skilled people who want to do the art of manufacturing and be trained old school? That’s how I’m going to stay in business;

I’m small. It’s also about how do I capitalize on other good employees and have a reputation with other companies so we trust each other that I’m not going to steal your employee from you.

can’t stand. Working with the leadership of those associates is a big thing. • People leave cultures, not jobs.

Several of you are concerned about the Baby Boomers retiring and all your institutional knowledge walks out the door. Are you doing things to retain the people you have? From a training perspective?

What are others doing around strategic partnerships with other organizations, like the schools and trade groups? • The tech group from Coon Rapids high school comes to us every year. We’re working with the local tech schools to try and identify the best associates. We will give them a part time job while they go through tech school, then they give us a commitment afterwards.

• We have probably 30 people in the training session for folks to give them lean tool certification; we’ve put through I think 500 or so of our employees. The focus is on developing skills and also investing in the people and sending them the message that we want to invest in developing their capabilities. So, creating that culture is as important as giving them the specific tools and techniques. I see our margins expanding, and we’re growing twice as fast as our competitors in the marketplace. I think it’s because we’re better at a lot of things. Our quality’s improved. Our on-time delivery performance’s improved, and our margins have expanded.

• I think it’s just a societal thing. That’s the biggest thing people have to get over. Society needs to understand that manufac-

Do you use your more well seasoned employees who have the institutional knowledge to train the younger folks? • We have a lot of mentorship that goes on in our organizations and not all of them are as good as others, there’s a lot of variability there. But we spent a lot of time on supervisory training and leadership development because employees leave a job if they don’t like the guy they’re working for, the person you’re working for. So, I think organizations, particularly as you get larger, have to make sure that you’re trying to develop the best leadership talent. That employee retention is really critical.

turing is different; it supplies a lot of quality jobs for a lot of people. It’s not the belts are always running in there and you’re going to get your hand chopped off. Bemidji has its career academies that are a feeder system of the future workforce. Are there other things that you’re seeing, but more regionally?

• It’s making sure you do a better job of bringing the right people in and then creating the culture that people want to stay. And it’s not all about pay. Pay is important for sure, but that’s not the reason that people decide to go somewhere else.

• Government, nonprofit and larger organizations and companies such as [COMPANY] give grant money to help support kids in four-year college. So, you were constantly pushing kids into four-year programs because that’s where the money was. The more kids you had go to four-year college, the more money you received, the more recognition you received. And that’s where the change has been the last two years. But parents are

• We did a full employee survey. We were able to identify some people leave because of pay, some leave because of the job. But quite a few people leave because of their supervisor. So, we were able to identify what supervisors need more coaching to become a better supervisor. No one likes to work for somebody that they don’t respect, who doesn’t treat them well, they

the biggest issue because they don’t understand, especially immigrant families because they’re saying, we came to America so you could go to college. So, it’s really hard to change that societal norm we now have going on.

their job and keep the economy growing. The future economy is beyond workforce and capital. If the housing market takes a 50 percent hit, that’s going to hurt, a lot. So, the economy is number one for me.

Forty-nine percent in this year’s survey say they have a formal written strategic plan for their business. Do you have a formal strategic plan? One, three, five-year plan?

• I think there have been some societal decisions made that have negatively impacted our long-term population. • We are spending a lot of time working on value added products. You have grocery stores that can’t find new cutters, it’s a lost trade, so they’re looking for solutions. So we have vacuum sealed cases for any product that we can provide to a retailer to solve that. So, that’s where our focus is, on the retail side, on the food service side, we’re looking at their value added items that are easier for the restaurant to just take out of the box and incorporate into a menu item.

• We have a three-year strategic plan, and we review it every year. Our business changes so rapidly that we brush it off and make sure that it’s still on track. If we need to go a different direction, we make a note of that and change our strategies. The executive team goes out to management, and we tell them what our strategy is for the company and for specific business units. It’s a cascading process that you have to give all your associates, and we give them updates quarterly.

• Being in the medical manufacturing business, the aging population obviously helps our business going forward. However, the uncertainty with what’s going to happen with health care overall the next days is a potential concern. Fortunately for us, being a big company, we can get out there and we can get in front of that. We can get good equipment and such like that. We have 12 machines, and we’re probably one of the top in the world in the area, so we’re going to grow that product line.

• We have a five-year one because of Enterprise Minnesota. You guys came in two years ago and helped us when we were doing the annual check-in to make sure it was where we needed to be. I think it helps everybody focus on the same goal. At the end of the day, what do we want? What do we want our company to look like? And you work backwards. Okay, how do we get there? It helped us give people tasks and set personal goals, set company goals. And I think at the end of the day it just makes people who work at the company feel like, okay, we’re working towards something versus we’re just working to get parts out the door.

• The industry we’re in is consolidating very rapidly. Health care companies want to reduce their supply base. So, they’re looking for suppliers who can do more for them. We’ve been very inquisitive and will continue to be. But it requires a lot of investment, and that’s a high-risk game and it’s very expensive. Multiple companies in our space are ridiculous. That’s why we’ve been investing a lot in organic growth. But, technology is really key to us.

• We have a pretty good strategic plan broken into five business units. Then, each unit comes up with their five-year plan and we roll it all up together. We’ve developed a couple of really good long-term projects through that of where we’re going to go, and they give us some guidance, direction, and financing to go forward, so that’s been a good process.

• No parent wants their kid to grow up to be a truck driver. So, we’re in logistics, and truck drivers are always in demand. Now, with different states legalizing marijuana, you still can’t drive a truck under the influence. So, the states that legalize it, they have twice the troubles of finding drivers. We’re paying our warehouse guys $20 an hour now just to get people up to date. Our business is rapidly growing, and we’re in a customer service. If we don’t have people, we don’t have customer service, we don’t have customers; so, we’ve actually upped the pay.

• I don’t have a strategic plan, and I’ve been listening to the comments, and I’m not sure I need one, frankly. I worked for corporate America for a lot of years and did all kinds of strategic planning. So, I did have a process of understanding the goals of the company on an annual basis and then breaking those down. But I wouldn’t call that a strategic plan, it’s more of a business plan with some goals attached to it. How many of you are ISO certified in here?

• I think it’s finding your niches and doing what you’re best at. I think that’s where some companies are growing. One of their biggest things for finding a new location is attracting and retaining quality talent. Especially on the industrial side, it’s more about amenities around your location. That was never even a consideration in the past. I think it’s just the authentic personal connection to people. They deal with their customer base, with their employees, and they feel part of something rather than just a number. I think that’s where the opportunities for a lot of these companies come from.

• We are ISO certified. It helps you drive processes and stuff like that. If you’re deficient in an area, the ISO certification can bring observations of issues we can improve on. What are the important drivers of your future growth? • The economy. If the housing market goes down the drain, then it’s going to be a tough go for me. I need the politicians to do

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Duluth, MN April 4, 2019 What does it mean to be a manufacturer in northeast Minnesota? Are there certain struggles?

can get some of it but not all of it, so that’s been a challenge. • Attracting people to the area is our biggest problem, too. We’re competing with the mines, but we can’t compete salary wise with them. Unfortunately, our kids are being told a fouryear degree is what you need. So, kids don’t even think about going into these skilled trades. That’s been a huge problem for all of us. We have the jobs; we just need the people.

• There are obstacles for every business. We all want to manufacture something and make money doing it, right? So, you might have obstacles such as manpower, machinery, or even attracting employees to come to [Duluth]. • That 20 cent gas tax increase would obviously be a big obstacle to a lot of business. Because we’re not in a hub like Minneapolis or Chicago, you can see your freight cost going way up. Property taxes are also big. We built a new building, and our property tax is a pretty significant cost to the business. But we have been able to attract good personnel; we just need to keep learning how to attract new employees using new methods, media, and modify our methods for manufacturing, getting machinery, getting people, and staying profitable.

Are you attacking that by doing more on the job training? • Yeah, we do on the job training. We do a lot of mentoring in our factory right now. We just brought in somebody from the machining area, and we and partnered him up with a senior machinist to make sure he understands what we’re doing, why we’re doing it, and how you do it. Part of it also, on the floor side, is just making sure that your processes and procedures are documented and detailed out well enough so that if someone new comes in, they can actually jump into the job without wandering around the facility for 20 to 30 minutes.

What about the worker shortage? Is anyone struggling with it? • We have that issue. Because we have a lot of skilled welders, machinists, and assemblers, it gets tough to find them. Then when you do find them, it’s often tough to keep them. You’ll see they kind of shop around a little bit because it seems like there’s a lack of certain skill trades up here.

Is there something that we’re not doing that we could do? • We have got to be able to want people to raise families and everything in our area. And our concerns are the gas tax and the 24 weeks of paid leave. So, now we need people but we’re going to give them almost half a year off to either be sick or take care of someone in the family who’s sick. How do we run a business when we don’t have people there?

• I know we’ve worked a little bit with a few of the other local schools to get people in, but often times with some of the stuff that we do, we require a certain amount of experience. You can’t always get that just coming out of the trade school; you

• We have apprenticeship programs within our company. I’m also part of a chamber, and we’re getting into the schools. We’re helping them start in 9th grade to get the kids interested in manufacturing or health care or something, and maybe stay in our community.

marketing of the area. For Hibbing, it’s a great community with great access to the woods and lake, and if you find the right person, and the right family, or the right single person, male or female, who loves to hunt or fish, that’s a great place to live. But a lot of us are training people who then leave and go to another job, so we’ve worked internally on our retention policy. We are not only trying to attract people, we’re also thinking about what makes our people want to stay here.

Is retention an issue across the board? Is it difficult holding onto people? • Yes. You lose people. Our biggest issue isn’t that. Our biggest issue is figuring out where we want to go and find a space. So, we bought a building. But it’s been a challenge to find good people. Our industry is a little different because they don’t have to be skilled, they don’t have to be a machinist. They kind of just learn on the job, and we’ve been able to train them. As long as they have attention to detail and can stay focused, we can train them, versus learning a skill like welding, or machining, or something.

• We’ve tried to focus on things like our culture, and it can be as simple as having potlucks, which is a real easy way to keep people. What about automation? Is anybody considering automation to address the worker shortage?

• I think our biggest challenge has been the lack of service groups that would assist us in some of our further processing. For a long period of time, a lot of the development groups in town here have tried very hard to attract platers, and finishers, and such. And the barriers for that, of course, are the regulations that block both from multiplying their process. • We’re very specific on what our needs are, but that doesn’t make it compatible with other agencies in the area that want to utilize that because their customers have different requirements for similar end results. So, unfortunately our customer doesn’t say, “Gee, you have all of that extra cost to run to Wichita or back, or Minneapolis or back, with your goods. That’s two trips, so we’ll compensate you just because you’re local.” That doesn’t occur. Those obstacles keep a lot of good opportunities for growth within our customer base minimized to what we can do internally.

• We’d like to. Not just because of the worker’s shortage, but because it would be a competitive advantage for us. We use expensive materials, and on top of that, it’s a very labor-intensive process. Our challenge too is we can’t scale easily; so, if a customer doubles, we basically have to double our labor because we just can’t run the machine twice as long.

What about the difference between skilled labor and warm bodies? Labor is difficult, but is it the lack of skilled labor or is it just a lack of people?

• But that’s a challenge, too. I’m an engineer, and I can figure it out, but it’ll take me five times as long as somebody else who does it day in and day out. The next challenge is who do we partner with?

• I think it’s both. We need machinists, we need welders, we need higher skilled welders, but we’re willing to train into that next tier. But it is a warm body, people showing up for work. Sometimes they just don’t show up.

• We’re looking at robotics. We’re a job shop, so we do one-offs all the time. We don’t have an assembly line, per se, but we’re looking at automation opportunities, and it’s a big push this

• If you’re trying to attract a family, some of it is about your

year. To do that, we’re setting aside money to start investing and do the research and travel time because we have to leave Minnesota to go and find technology and whatever that’s out there for us to purchase.

volume, and we have what I call our China Filter, which is a cap of where I won’t even quote work that comes to us with high volume because I know it’ll go away as soon as we finally figure out how to do it. We concentrate on the service and the efficiencies at lower volumes. And that’s been a good win for us. I’m very proud of the fact that we identified that to our customers.

Are you getting any pushback from employees on that? • Unfortunately, we’re going to need employees, and because you’re running robotics and the technology behind it, you’re going to need more skilled employees in the technical side. But you’re still going to have to be hands on.

Was this year a banner year for everybody? • Could have been better. It always could be better. You like your profit, margin to be a little higher. Total gross sales were good, though.

• At a prior job we went from more manual to automated. The issue we found was the cost of the machines for the automation, in particular like robotic welding and even CNC machining. When we put in the first robotic welder, what we failed to really consider was the amount of talent that we needed to pay someone to come and program it and maintain it. The second time we did it, it went a lot better. We are trying to roll in that talent piece with the equipment to get the ROI and make sure we can pay that thing off. It’s just whether our current market, what we’re selling, our productivity rate—there are all those metrics that go into it. We want to do it, but we’re a little concerned about who we are going to get to actually help us run that new automation. I don’t have anybody currently on staff that can program a CNC machine. I don’t have anybody on staff that can program a robotic welder. So, then I’m looking for manual welder machinists versus trying to find someone who’s technical enough to be able to program and run these machines.

• We expect to do a higher volume of business this year. • We’re flat this year. Unless we can get into the oil and gas we’ll just remain flat. • As the economy remains strong, we’ll see. Interest rates can be a real killer. When they jump high, people stop buying stuff. The tax credits for buying and writing off were good for us last year because we did spend a lot of money on equipment; so, those are all things that really have helped us as a small business. • Anybody else planning major capital improvements this year? • For us, it’s major, but it’s still under a quarter million and then expansion. We would have outsourced all of this overflow work if we could find the time and availability from suppliers with the correct certifications. Unfortunately, now we are damaging our relationships with our customers by relying on other people, so they’re experiencing the same. But you can pull that work back in.

How do you see automation affecting your business? • We have a lot of automation; we have two automated cutters. We just recently purchased a machine—think of a large-scale embroidery machine—that will sew leather, sew designs into leather, and perforate holes to make custom designs. We can do logos with our embroidery machine, but then we can also design custom stitching patterns. But we thought the machine would be ready out of the box, and we’ve had a lot of problem solving, and it hasn’t worked perfectly. We do need to pay somebody to be at the machine because it doesn’t run itself. I’ve always tried to convince employees we’re not eliminating your jobs, we’re actually allowing the plant to become more efficient.

• We are actually wrapping up a 100,000-square-foot expansion to our facility in Hibbing, which is our headquarters, and we really don’t mean to be here. One percent of our business comes out of Minnesota, but it’s a family owned company so we chose to invest in Hibbing, and the community. We have a plant in South Dakota, and we’re in Australia, Mexico, and Chile, but we chose here, and we’re hoping the newer facility will help attract people to work in a nicer environment. Does the U.S. economy affect your business as much as the global economy?

Is foreign competition an issue, a concern?

• It does, in the sense of [COMPANY], which we service. They’re about 75 percent of our business, and most of them are in Illinois. Even though we’re selling to them, they’re selling globally, too. So, it’s trying to get our markets to basically tell the OAMs that they want us to be the standard on equipment, and it’s kind of a vicious cycle.

• We have a competitor who’s in Canada, so the exchange rate will tend to hurt us on some of the deals. That can be a challenge for us, and it’s funny we’re talking about Canada and not China, but we’ve still lost deals because of the exchange rate. • No. The business model that we run doesn’t give into high

How about health care costs? Is that giving people heartburn now or are you getting used to it?

markets we want to stay strong in. • We have a formal one that’s written down, so it’s pretty detailed at the top level. Then we weed out some of the stuff as we transfer it throughout the company. In our facility there’s a large group lead meeting that happens every week, and a lot of the metrics are reviewed every three weeks in that meeting. So, we communicate throughout the facility on where we are, where we need to go, what needs to happen, and we tend to look three and five years out. It’s really nice to have a threeand five-year plan, but then year over year it’s tricky to not completely rip that apart and destroy it and redo the plans. So, you have to show a little bit of consistency when you pick that first initial three or five year plan, making sure that it’s sound and thought out, and projected well enough forward.

• I think we’re getting used to it. The generations coming into our workforce would rather have an extra $2 than health insurance, so it’s the families we have to attract with the health insurance packet. But these younger employees don’t care, they think they’re invincible. I mean in South Dakota, where we have another plant, there is a huge cluster of facilities, manufacturing facilities, and they’ll just jump every month for 50 cents more an hour. We tell them, “We have the best health insurance packet in this whole area,” and they don’t care. They want that additional 50 cents an hour more. • Health insurance is important to me. I have a family and I’m getting older; but it’s the dollar they want. They don’t want to think about retirement either.

• We have an annual manager’s meeting we call, and then we bring our sales force in about a week after we’ve done it. We set our goals for 12 to 18 months. I have a set goal for five years, for me, that I help push out. We’re a little less disciplined, and we’re not as formal in that sense, but we set our goals and then we relay them to each of our departments. But everybody then, in the company, must set their annual goals against our goals as a management team. So, we meet quarterly, formally within departments to look at those achievements, and we even set our production goals. We also have a quarterly bonus plan so our shop employees can feel engaged.

• Well, health insurance for us as a small business is basically emergency insurance. It costs a lot of money, and it has high deductibles. We share the cost with our employees, and when they go to use it they’re usually not as happy. When we first started, we had Blue Cross Blue Shield and it was a $100 deductible, $20 copay and it was awesome. But if we offered that to employees now it would be an astronomical cost. So, now they have a few choices about whether they go to St. Luke’s or St. Mary’s or whatever, but I think for an individual it’s $3,500, and for families it depends on how many people are in your family. It’s fairly expensive when you think about paying that premium every month and you have to pay the first $3,500 out of pocket. It seems like they end up feeling ripped off by it. So, that’s an obstacle for us, it really is. We have Health Savings Accounts, we have 401ks, we have vacation days, all that stuff— to me, there’s no end in sight. Every year we get the policy renewal and it’s up usually 15 percent to 17percent. That seems unreal, doesn’t it? I don’t know how to battle that. Can you just offer an employee $2 more an hour and say, “You don’t want health insurance? Great, here’s $2 more?” It would be way less expensive to me as a company.

• We do one year and five year. We have a good one year goal and a three year picture, but I think of strategy more further out. So, most of that is in my head. We’re more of an entrepreneurial business, and we’re still fairly young, so we can go different directions. I’m a little bit of a pessimist to strategy plans, at least in my business, because whatever they are, they’re wrong. It’s going to change. To me, you have to be able to adapt to whatever comes at you. Do you have succession plans? • I always joke about me and my dad. We started this business together, and he’ll be 77 tomorrow. My daughter’s going to be in college this year and my son, I don’t know what he’ll do. We are in this interesting position of who would buy the business and at what point would you sell it? The capital that would be required to even do a contract would stop most people dead in their tracks, so it is interesting. My dad and I have done a really terrific job of simple things, like buying and selling agreements, insurance policies on each other in case of an uneventful death, and stuff you don’t really like to think about. But you know you have to address it so that the business doesn’t go into turmoil. My daughter wants to be a doctor; she has no mechanical aptitude. But you just never know, she might go to college and decide that’s not her goal. I’m trying to let the kids decide what they want to do, and I think my son is very mechanical, but he’s only 16, so he doesn’t know what

Strategy is a big thing. Everybody has one, every company has one. How do you function with your business strategy? Is it something in your head? Do you have a formal strategy? How far does that help you in the future? • We try to do strategic planning once a year. I would say we have done it five of the last seven years, and it’s just a good time to sit down and analyze where your potential pitfalls are and what you want to try and do. I would say anybody who has worked with me probably knows my strategy’s more in my head than it is down on paper. So, we are getting our ISO certification back, which sort of makes you focus on your strategy and your retention policy and all that. We have a meeting with employees to lay out the components of the plan: Here are our obstacles, our growth opportunities, and the

he wants to do yet. • Unfortunately for us, a lot of our departments are an army of one, so it’s hard to say who is coming up. You’re always kind of thinking in the back of your head, if this guy leaves could I get this guy over here? • Over the last six months I’ve really focused on succession planning. And for a two-year window, the clock’s been running on my son to decide what he wants. At this juncture I realized, I’m 60 years old, and how quickly your focus turns from running your business to other planning. • Sadly, our type of business is much like what [NAME] is talking about, and that is we went through a formal evaluation process and we realized we don’t have the assets that are saleable when you’re a leased facility. You are a product that really anybody can do, we just try to do it in this location and this way. It’s not unique in that area, so that makes it difficult. My experience has been how very little the value of the company is. We had my son transition in as I exited, and it’s worked quite well. Unfortunately, I don’t do anything day-to-day anymore. It’s a matter of trying to look for other outreaches and things like that. And I’m enjoying it, there’s no better time in my life than right now, watching the maturation of my son handle our business and watching the success that has had. I think he’s done a much better job production-wise than I did because I happen to be more emotional. • We don’t have one, so I do have a business partner. We’ve thought about it a little bit but nothing concrete, so our challenge is getting more people on our leadership team who can fill roles that I do and that he does. That would help in that area, but when we solve a lot of our technical problems, I end up doing that, and that would be a challenge as we move forward.

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St. Cloud, MN April 5, 2019 On a scale of one to 10—one being it’s just fine and 10 being it’s off the charts—where are you with the workforce challenge?

• I would near that sentiment more closely than either end of the spectrum. There are challenges, but it’s more about the quality. You know we can get people, but it depends on what your expectations are. If your expectations, from an execution standpoint, are exceedingly high, then obviously that’s a bigger challenge. We’ve looked at different streams of potential new prospects. We’ve worked downstream to the point of engaging high schools, whereas before it was technical colleges. It’s a moving target, but for us it hasn’t been quite the doom and gloom.

• Nine and a half. It’s just so difficult to find anybody, and it almost seems like it’s to the point where money doesn’t even matter. It’s the worst we’ve ever seen it. And I truly anticipate it to get worse yet. • I would rate ours at a five, maybe even a four. We’ve been very fortunate. We have somebody in HR who works with a number of companies helping us get welders, primarily. We can take a welder who has schooling, but still fairly green, and turn him or her into a good welder.

When you do see people coming in, younger folks, are they ready for the workplace? Are you doing remedial training to get them up to speed?

• We were advertising for an electrical engineer for years before we found one. We’re looking for architects right now, and if you want someone with any experience, we can’t find them.

• I would say for the most part the ones coming directly out of high school and/or a technical college are not ready. Even the ones coming out with a four-year degree. Many of them, unfortunately, are not going after the job that they’re going to be working in later. I think if there was some more coaching at the college levels, whether it’s technical or a four-year degree, instead of just telling them to get a job for now, I think that would help.

• I would say we’re probably about a five. We’re getting the people that we need, but I would expect it’s going to continue to become more challenging as we go forward. We have several programs in place to try to get ahead of it with. • We usually bring in temps before we make commitments on full time. So, we cycle through about two-thirds who don’t make it. About one-third are keepers, and that seems to cover our turnover and our assembly operations. If we need welders or people like that, it’s a similar process. I would say it’s maybe a five or six.

• It used to be such a big topic: Why aren’t they ready? Why can’t they start welding or working? I hear less of that now, and I hear more people taking it into their own hands and creating these training programs. It’s still a problem, but more are developing programs internally to do it. And that seems to be somewhat successful.

• We’re bringing the college into our plant, and they’re teaching our people.

• We’ve had conversations about exposing the counselors to manufacturing. They may push a student who doesn’t necessarily desire a four-year degree into a tech or a trade without even knowing what they’re suggesting. Many counselors graduated with a college degree and have never been in that kind of work environment.

• We’re taking people who have the aptitude and saying, “Come on, we’ll put you to work and we will train you. And if there’s something more to be had with going back to school, we’ll pay for that.” A lot of the training that was being done at the tech community college level is being done in house by companies now.

• Being somewhat rurally located, we were able to draw from the farming community, such as kids who grew up working on tractors and equipment. Now, we’re seeing less and less of that candidate available. So, our machinery has been adapted to be more technically oriented.

A recent study says there are 60,000 open jobs today in the state of Minnesota. That’s not just manufacturing, that’s all jobs. In four years, that number is going to jump to 250,000 open positions. Knowing that, robotics is clearly one of the solutions to that issue. Does this create heartburn when thinking about growing your company?

• We automated what we have on our shop floor so that there’s less skill on the machine side that’s required to run the equipment. • We have a higher level of skill on the office side for the programming, but less so on the shop floor in some areas. I’m wondering if we’re going to start seeing a bifurcation of the skillsets that we need on the shop floor and the office. We hear that a career in manufacturing is become more interesting. What are you hearing? • The scariest thing I’ve heard as of late is now the welding programs aren’t filling up. Even though there is a push towards trades and two-year degrees, schools that offer these programs are having a hard time filling them all. • The attendance is dwindling. I don’t think it’s necessarily because of desire, it’s just the numbers are not there. There’s not enough workforce coming to replace the workforce leaving.

• I like what was said about the office positions. What if you build some of these office positions to create the environment that kids are looking for? It’s an environment they are looking for that’s still manufacturing. They can bring the technical skills into the office and make for a simpler place to work.

• Do you think with vocational education they were training students out of high school or were they training people that were trying to change their skillsets? They were maybe downsized from some other industry and wanted to learn to be a welder.

• For us, there are more Baby Boomers retiring than young people coming in. And the Baby Boomers that are retiring have a ton of experience. The new people, even when they’re really bright, hard-working, and intelligent, take a while to reach the level where you can just let them be and they do their job.

• That’s a great point. I think for a little bit after the market dropped off in 2008 and the economy fell there was probably a lot of retraining involved. Now, I think it’s largely high school.

• I think one of the things that we can do as manufacturers is work with the high schools. District 742 is actually going to have all the students in eighth grade take an industrial arts

Culture can drive retention. What are you doing internally to develop your cultures?

class. Like it was when I was going to school. • Besides high schools, our company CEO and HR engineering VP attended something at St. Cloud State a few weeks ago. With their engineering program, they seem to be interested in working with manufacturers and expose their students to manufacturing.

• I think the single biggest change is flexibility. I think companies have always had flexibility, but it was never so widespread or so visible. It used to be whatever the hours are, that’s what you worked. It’s not like that anymore.

• People want to integrate their companies back into high school and help the high schools not only know what’s out there but have facilities and people from the companies go into the high schools and say, “This is what training you need. These are the kinds of programs you need. These are the kinds of jobs that are going to be available out there.” This will make the move from either high schools or tech colleges or four-year colleges into the workforce more seamless.

• I would say communication and information sharing. Flexibility is important for sure, but I think they need to feel a part of it instead of just coming to work, checking your brain at the door, and pushing your button.

There are a lot of amazing partnerships in regions around the state. One of the reasons we went to Bemidji is because they have a great program called Career Academies. It started with a couple of programs to try and train high school kids to get into the trades, particularly manufacturing. And it’s exactly what you said, it’s to create that seamless connection between high schools, tech colleges and the workplace. And up and down that supply chain, if you will.

• We do a lot of things that brings our company together, like rent a bus and take 50 people to the Twins game. Or, we just had a competition where 27 people in our office made little race cars, and we raced them with the Boy Scouts and received silly little trophies. That’s what our people seem to remember. “Oh yeah, four years ago we did that. We should do that again.” But they are all interacting with each other and that helps a lot.

What else is working?

• We shut down operations for a quarter of an hour at the end of the day, and we just have social time. If you do that after hours, everybody leaves. If you do it on the clock they stay, and you start building camaraderie.

• Yeah, people want more and more and more information. They want to feel like they’re a part of the action. It’s a big deal.

• You need to truly make HR a strategic partner within the business. Hiring a strong HR leader can give you an opportunity to raise the visibility of that group. Second, we do a lot in terms of our branding from an employment standpoint. We have a tagline for our equipment from a product perspective, and we have one for our employment. And we brand ourselves just as heavily from an employment perspective as we do from a product perspective. In the last year we’ve also partnered with the tech colleges and St. Cloud State. We also look at how we grow our people internally. We might bring somebody in who’s relatively unskilled and start them in a role that doesn’t require any kind of background. Then we can grow them. It’s a multi-pronged approach. There is not a magic bullet.

I was blown away that the results of our survey this year show that 49 percent of manufacturing executives surveyed say they do not have a formal strategic plan for their organization. What do you think about that number? What does that say about manufacturers? • I think some of the people aren’t going to be around in 10 years. Does everybody in this room have a formal strategic plan? It’s written down and communicated to your people?

• HR is the position we never really thought we’ve needed, right? We’ve always had somebody in it, and they did administrative work. Finally, we got to a place where we’re hiring quite a bit and trying to find all these skilled jobs is next to impossible. These HR professionals need to be organizational development gurus, and you need to figure out how they can come in and help you build your culture.

• There is a strategic plan, but I guess it isn’t super formal. So, we would be one of the underachievers in that arena. • What I hear manufacturers saying is about going to this business management system where you have your whole company marching together on your plan: do, check, act. There are a lot of folks who implement traction for communicating with the right people in the right places. Developing it into an overall business management system for the whole company and integrating those two together is really where most people are moving towards. Traction can integrate right into the business management portion of it.

• Yeah, and your HR person really needs to understand what your culture is so that they’re hiring in the right kind of way.

How far out does your planning go right now?

to develop a plan or do something.

• We go three to five years.

• For us, our biggest opportunity is the need for our industry to automate. They’re having a labor shortage, too, and what we do is help them automate. For us, there’s a ton of opportunity.

• We have one, three, and 10-year plans. Everybody’s privy to the one year, probably 70 percent are privy to the three year, and the 10 year is a little closer to the vest.

• One of our growth potentials is taking on problems from our customers, which is assembly. But if you don’t have people, you can’t do assembly. So, the people thing is a struggle for us. But where we see a lot of our growth is being able to provide a finished product to our customers’ line. Because we do a lot of shorter runs, automation isn’t yet viable for us. It’s getting closer.

• We have a five and a 10 year. • That’s about as far as we get. With three years we might be able to see the rise in there. And five is aspirational. We meet once a quarter, and then we formally revise the plan once a year.

What are other things that are a little more on the optimistic side?

• We do one, three, ten rolling, and meet once a quarter. We follow the traction model and do a two-day annual. It was very difficult for us to try and figure out how to best plan for the future. And there’s no perfect tool. I personally did this for our company, and it was a struggle to figure out how to get people to interact from the leadership team, managers, and then the rest of the staff. So many people mentioned traction, and I finally read the dang book. And I’m like, “Well, let’s give it a shot.” So, we adopted it and we utilize it and it’s rolled out amongst all of our staff.

• I think the design is going to be critical for our business. We have a lot of legacy products that have serviced us well for many years. But I think that if we want to address both markets’ needs and our labor situation, we need to do more. What’s the next generation of our product designs? How do we make them so they can be easily assembled? We need to try to integrate something else, whether it’s robotics or other semi-automation tools.

• I think it depends somewhat on the nature of the business. I came from the auto industry, and we planned five years firm. We talked about a few years beyond that horizon and that made sense in that business. Most of the automotive platforms are three to five years in longevity. But forecasting five years in a job shop environment is a joke. Today we forecast on a budget with detail for one year firm. We talk about the threeyear horizon.

• We’ve cast a wider net looking for engineers. We had a really good engineer that came in this last year from Indiana. Another one that we just hired from South Dakota. Don’t rule them out because sometimes you can talk them into the quality of life here. And for the right person, it’s the right place. • We take the approach of vertical integration, where you try to sell the stuff. We bought from companies in the upper Midwest and brought that product production into our plant. It’s ready to integrate, and it’s working very well.

• I would second that. As a job shop, you don’t have quite as much control over your future. You might have to start looking into which industries you want to start pursuing, but you certainly can’t budget for it the following year. It’s going to take some time. We do a firm one year and soft three year, as well.

• We want to be problem solvers for our customers. Everybody in the whole country is dealing with labor issues. And we have good people; you just have to keep working at that. What other things do you think about doing that seem crazy to navigate around the worker shortage and the looming worker shortage so you grow in the future?

When you look at the future of your company, what’s your biggest impediment to growth? What’s your biggest opportunity for growth?

• I bribe robotics teams. I call schools and email schools saying, “If your robotics team will come and visit, we’ll give your team money.” This gets them in the plant for a tour.

• It’s the same answer, people. • Yeah, for us it’s labor and labor. Everything that we can incorporate into the skin in the building reduces the need on the job site. If we can fill our own, it’s a benefit. If we can’t fill our own it’s an impediment.

• If you go out and talk to high schools, they are looking for your scrap. And it’s a great way to start building. When you get rid of a machine, give it to a high school. When they get capital equipment, they might build something around it.

• We’ve started pairing people up. You’re really good at this, and we need someone good at this, we’ll put you two together

• They do that quite often in Alexandria. I know they give a

lot of equipment. There are some companies here who also give to the technical college. It’s just a different way to think about getting rid of your scrap as an investment in your future workforce.

• What about also reaching out to other organizations in the community, like Boys and Girls Clubs? Or other nonprofits that might be able to tap into a different demographic? I bring up Boys and Girls Club because they have many locations throughout the state. And they’re the students that might not be going and talking to counselors.

Is there something that’s been burning on your mind that you’ve wanted to share with your fellow manufacturers that we didn’t talk about today?

• At a previous company, we had a relationship with one of the local high schools where lots of seniors had extra time in their schedule. We got two students each year that would come in and work part time in our factory. And it’s a good way to get them some exposure, too, without making a big leap of commitment. I think they were also able to get credit hours or something towards school. A couple of them we hired on full time when they graduated.

• There’s one thing that I have really strong feelings about. The way that high schools are rated is so heavily skewed towards the percentage of kids that go to a four-year university. Until there’s a way to offset that stigma, it’s never going to reverse. • Is that an actual metric for high schools? • Yeah, when we moved up here from southern Minnesota, the very first thing they told us was what percentage of kids go into four-year universities. I think the graduation rate is somewhere around 68 percent or something. So, a lot of kids don’t even want to go, but they’re pushed to. Then, either they’re a negative statistic for not going or there’s the frustration of not going all the way.

• I challenged a superintendent, and I told him that the system is breaking down. And he challenged me and said, “It’s not the system. It’s not us. It’s the parents. Parents are coming to us and saying, ‘I want my kid to go to a four-year school.’” We have to get to the parents. It takes time. We did our focus group with parents last year in Lakeville, and I was astonished that parents who have younger children in the elementary and middle schools had no idea what manufacturing was about. No idea.

• If there’s a shortage of counselors, why don’t we pay to have more counselors in those high schools? All the high school has to do is have a space. And let’s compete with those other counselors that are in the high schools. Today we’re spending a fair amount of time and money with plant tours. We talk to classes and kids about what it means to be an engineer, what it means to work in industry. And so the school I am working with has been supportive of that. I’m almost certain there are opportunities with all the other local high schools. We have to decide if it is worth it for our businesses and our industries to make that investment.

• I want to bring up another point. We need immigration reform because manufacturers need people of that nature that we can train up. And until we get immigration reform, we’re going to continue to struggle with labor. We need that. I personally complement what Trump is doing because he’s forcing a conversation. We need to do something, and manufacturers will be the beneficiary of immigration reform. • Tapping into our current immigration population that we have now, the smaller population in particular, and get them integrated into manufacturing is a challenge. That could potentially be a reservoir of talent.

• Until high schools get away from being so heavily measured on what percentage of kids go to four-year universities, the kids who don’t will never escape the stigma of being a negative statistic.

• It’s a huge challenge. We need to do something in that space.

Do you invite parents into your companies as well as the kids? • Absolutely. The kids I think are pretty easy to recruit because they see it, and manufacturing is pretty cool stuff. • It’s the guidance counselors and the parents. We need to start convincing them about what the opportunities are and show it from a financial standpoint, as well. We’ve gone so far as to try to develop a financial model that shows the return of going into a manufacturing career. If we could get the guidance counselors and the parents onto the manufacturing team, so to speak, then we can really start to move things. It’s a long, slow road.

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Brainerd Lakes Chamber of Commerce

FOCUS GROUPS

Brainerd, MN April 5, 2019 When you look at the people you’re bringing in, is it hard to find the people, is it a skills gap, or a combination of both?

As we’re talking to manufacturers—and we’re talking about nothing new—we’re talking about trying to find employees, and we’re talking about the skills gap. I want to get a feel for where you’re at within your companies on a scale of one to 10. Where is finding employees on your priority list?

• It’s both. At least for us it is. With general manufacturing, it’s easier to find people because we don’t expect them to have a lot of the specific skills that we need. But when it gets into some of the higher-level positions, then it’s just hard to find people period. If you’re trying to draw from what’s out in the area, you have to have enough in Central Minnesota to draw from. It’s been a challenge for us.

• A 10. • Ten. • Yeah it’s a 10 for everyone here.

Is it front line people that are hard to find versus office, managerial?

• Well, at the risk of being an outlier, I’ll say nine. We’re undergoing a lot of change to our business model. We’ve done things by and large the same way for 27 or 28 of the 30 years that we’ve been in business. But we’re seeing a dramatic shift in demand in the marketplace for a new way to deliver the product. We have a good mix of folks who’ve come along with us, throughout the history of the business, who really want to be a part of the future. So, I would say that we continue to build the future around that group of folks, and then we’re adding some new skill that we require from the outside to help drive that much more effectively. It’s not a critical stage that we’re in right now in terms of bringing in folks from the outside, or new skills, as much as it’s developing the skills of folks that we have.

• Both are hard to find. We have toolmakers and machinists that we’ve trained from within because we’ve done an employment search, and we don’t come up with our candidates. So, you just train from within. I think employers and manufacturers are doing a lot more training than we used to do. It’s hard to find regular production workers, as well. There’s a shortage of people. • If a skillset is managing your personal life, that’s a pretty big challenge to overcome. It’s tricky to find people who can manage their chaos and not let it impact their ability to show up on a regular basis and perform a job.

• For entry-level positions, we generally have to hire three employees to find one that sticks with us for about a year. Once we have them there for a year, very few leave. We’ve worked hard on the atmosphere to eliminate the drama.

• In the last couple of weeks, I moved one of our people into a training position now, so we can get more active on supporting our people internally. We want to do a better job of onboarding them and introducing them to the skillsets we need. I met with a high school last night. We’re going to try to partner with them to develop these kids at an earlier age so that they get some interest and exposure into what manufacturing is. Over the course of the next few months, I can see us working really hard with the school to introduce us to those kids that don’t plan to go on to four-year schools, to show them who we are, what we are, what we do. It doesn’t appear there’s any exposure out there for them.

• Part of that has to do with our market right now, but for us to go and try to hire somebody during this time of the year can be extremely difficult. A lot of it is based on the season when we’re trying to bring in new people. It’s very difficult to find people, but we’ve had reasonably good success attracting people of the higher levels and finding what we need. Would you differentiate on a one to 10 scale the ease of finding higher level employees versus lower level employees to work the manufacturing floor?

And the school is pretty open to that? • The school’s very open to it.

• I’ve had pretty good luck finding higher level. So, that one for me is a lower issue.

I think others also have connections with your high schools, correct? How is that working for people?

• It’s both. The lower level stuff is maybe one out of five. A lot of temp services bring them in and see how things go, and some of them don’t make it very long. With the higher level, we’ve had pretty good success with people who have left the area and are ready to come back, so they know people and they know people that were working here.

• We’ve been working with the robotics club at Brainerd High School and Crosby-Ironton High School for several years now, and then we make sure those kids get a tour, see what manufacturing is, and they’re allowed to bring their parents so they get a feel for it, as well. We’re also working on internships. We have interns in assembly, engineering, and fabrications. To plant the seed going forward, we want to make sure people understand what manufacturing is. We expose them a little bit more.

• We have built our higher end up a lot over the past two to three years, so it was more the lower end. We use a lot of temp services, and it’s still one out of three, one out of four who will make it. They’ll come one day and not come back the next. If you could just get people to come to work, that’s nine-tenths of the problem. I just don’t get it.

When you bring students in, do you see a difference in students and parents’ attitude of accepting manufacturing?

What kind of creative things are you coming up with to try and find those employees?

• The students probably seem a little more open to it. I think parents get changed once they see what it is. We’re doing new things now, new processes, and they may think of the old process which was quite different.

• I don’t know that anything’s really working terribly well. You try to change your atmosphere, or your culture, so that people want to come in. You treat them well when they get there. You do the inside training.

Is anyone else reaching out to kids and parents or the guidance counselors?

• Because of the shortage of welders, we’d bring a lot of people right up off the assembly and general manufacturing floor and train them how to weld.

• We are reaching out to the high schools. I know last year with the survey one of your biggest findings was high school guidance counselors being a really big stumbling block for mentoring kids into manufacturing and two-year degrees rather than four-year degrees. Any feedback from that?

• We are trying to implement a lot more robotics, bringing those people off the floor.

The feedback from that is why this year we’re doing two focus groups. One is for guidance counselors, and the other is for executives. We were just up in Bemidji, and they’re doing a really coordinated effort within the town of Bemidji, but the average school counselor has 700 kids. So, unfortunately the only kids that are really getting access to the counselors are the kids at the high end or the low end.

• We’re finding welders, but we’re not finding machinists or laser operators as easily. So, we’ll take people on the shop floor that look like they have the aptitude, and those are the ones that will start training. We don’t bring in anybody from the college, generally. If it’s new equipment, they’ll go out for new equipment training, but the rest of it is pretty much hands-on.

I think the other thing is the message of debt. Does anyone see any work out there trying to get to the parents where it’s probably a better investment of time?

basic math. We’ve just had to work really hard to simplify things as much as we can until they get that level of comprehension built up through experience. We’ve really worked hard to develop an entry level program to get them trained in, and then after six weeks to three months, get them into an area that’s an area of need for us and a fit for them.

• It’s difficult to get to parents. If you start early enough, you can expose kids to these options. The big 3,000 student career fair we just got done doing gets kids exposed. [NAME] and I have been out twice this last school year and have talked to students. Anytime you can get yourself in front of the kids so they hear your name and know what you do, that helps. A lot of those connectors in the community are great.

• The basic skills we address are attendance and grit. If they don’t have grit, they’re not going to make it. We just try to weed those people out, and we’ve also gotten much more selective in our interview process. We’d rather run with overtime and be shorthanded than bring in somebody and it not be the right fit. We’ve gotten more selective to start eliminating those issues ahead of time.

• We support robotics classes by providing metal. The more you interact with a school, the more they know you and your name comes up with the teachers and the kids. One of the things the schools discontinued was an educator in the work force. They used to get a stipend for coming out to businesses locally. That was huge. Teachers were always amazed at what we did in manufacturing; they had no clue that’s where the math that they taught is being used or the English to communicate.

• Mentoring in our shop is the biggest thing. We have a great

When we talk to high school counselors and high schools, they say their focus is on creating a well-rounded, high school educated graduate who can come right into your organizations and be trainable. Talk a little bit about the students coming out of high school. Are they meeting your needs? Do you find you have to do some remedial work? What kind of work do you have to do with the high school students these days to get them ready for entry level? • One thing we try to do is spend quite a bit of time thinking about this ambiguous thing called culture. We’ve tried to clearly articulate things like corporate values, what they mean, why they’re important, and what our expectations are in terms of following those desired behaviors. As new folks are entering the job market, there’s a much greater desire to connect beyond the job description and the paycheck. But what does it really mean in the grand scheme of things? We refer to that as purpose.

person working in our entry area, and we try to keep that person there. In years past, we would have moved that person up into some other area. Now we have that person be involved in the interview screening process and he’s also doing the training. So, that was a big thing we’ve learned, not to just promote everybody out of that initial area. That is a big word that’s coming out, mentoring. Is anyone else doing job pairing with other folks on the floor for mentoring?

• I think we’re doing an effective job of creating meaningful employment that goes above and beyond what appears on their job description with a little bit more emphasis on culture.

• Definitely, yeah. • Yeah, that’s the way we have to do it, too.

• It’s all over the board for us, and a lot of times we’re attracting the lower end of the spectrum, so a lot of them struggle with

Is it working?

We’re training a couple of people to do all our integration in house to save a lot of money. Internally, we can do $500,000 sales for less than $100,000.

• It works. It’s a slow, tedious process depending on how complex the job is. But for us there’s really no other way to do it. Take our stamping area: you don’t find somebody who knows how to run a high-speed stamping press off the street. At least, we haven’t found anybody. So, you bring somebody in who has some mechanical skills, and you partner him with a guy who’s been there for 20 years and hope that he picks it up.

• Automation’s always been big for us. We’re a high-volume producer, so every chance we get we look at trying to take the repetitive action out and automate it. We built our own automation equipment, and every day we’re looking at other opportunities to take any manual steps out that we can automate.

• We’re doing some of the mentoring, as well. We have a gentleman retiring in May I believe, and we’ve been looking for a replacement in his area. He’s a prep guy in our paint area, does washing, has been with us for several years, everybody loves him, and we are sorry to let him go. But he’s very particular about who he trains in for his position. He really wants the right guy for us. We’ve found a couple of people we’re interested in transferring over from another department. And, we just recently hired a new young guy from off the street who is a veteran, and they are working very well together. They’re kind of polar opposites when you look at them, but he’s doing a wonderful job.

• We just received a robotic welder about two weeks ago, and that’s being implemented by our manufacturing engineers right now as we speak. We’re a job shop, so we have high mix, lower volume. It makes it a little more challenging to implement automation. But we have enough long-term customers and some higher volume things so we can justify it. • We don’t have a ton of automation. The bubble of finding skilled welders has been challenging, so I think automation will help us in that area. Times have changed, and it’s not as simple anymore as plugging guys in and expecting them to be there right on time and leave on time.

Talk a little about where automation is going to fit into your strategy over the next year, three years, five years.

What strategies have you used to get people to show up on time? Have you tried to be more flexible? Is anybody shifting to more rigidity?

• We really facilitated a fundamental shift in how we manufacture. We’ve gone from a foundry operation pouring molten aluminum at 1,400 degrees to ceasing our foundry operation. And that was a very purposeful, proactive thing that we did. We’re starting to see some robotics work their way into our industry sector and very likely into our business. But as we’ve made that shift, it has fundamentally changed the skillset that we require. I would say that shift, though, has benefited us in a positive way. It’s easier to find folks who want to program, design, and setup a machine, rather than pound sand and pour 1,400-degree molten aluminum.

• More rigidity. The other way didn’t work. It was just coddling people. • If we can connect employees to the strategic vision and core direction of where we’re going, it gives them a sense contribution. I don’t want to make it sound like it’s working perfectly, but we seem to be connecting a little bit better with folks who would have the menial tasks in the business. They now know that what they do contributes to where the business is going. Onboarding for us has been a huge benefit with creating a sense of employee engagement. Our employee tenure seems to be off the charts because we tend to do a reasonably good job, I think, of connecting folks to our vision.

• We’re building the robotic equipment that’s going into other places to help other companies deal with those kinds of situations. They’re a lot more technical, so at a minimum we need somebody with a two-year degree. Then we can bring them in and do the mentoring.

As the saying goes, unless you’re growing, you’re retracting. What are other strategies for growth? How are you going to grow your companies?

• We have identified that automation is going to be very critical for us to continue to grow. We put our first robotic arm in tending a machining center earlier this year, and we’re pretty excited about that. We’re also looking at automated ways to feed material through the blanking presses. So, we have a dedicated budget for automation in the next three years and that is definitely a big focus for us. It will be necessary for us to grow with the existing workforce constraints that are in place.

• We found a quote that we all really liked and it was, “The best way to predict the future is to invent it.” We weren’t going to radically change the business away from tool building, but we did say, “What can we do to leverage that core competency to expand on the longstanding business model?” We service the plastics industry, and the tools that we make build kayaks, and Yeti coolers, and garbage cans, and all sorts of cool stuff. So, we thought, maybe we can leverage our ability to produce tools to become a product development company. We’ve made some acquisitions into consumer-facing product lines, we

• I think we have four or five robots implemented now. And I have 14 more that I got from a decommissioned Ford plant.

developed our own designs, and we are starting to manufacture those. We’re looking at growth as being driven by this sort of evolution or expansion of the traditional business model to create new opportunities.

trying to develop some new products to make sure we can get into other markets and maintain that growth we’ve seen. • We’re dealing internationally, so it looks really good. But I hear a lot of talk about plastic replacements in Europe, and equipment need is huge. They don’t have the right equipment, so that’s going to be a big deal for us in the next two years at least, probably three.

• New product development is what we’re really pushing right now. We’re realigning our sales force. We’re trying to bring more of our existing customer service maintenance in house, and our outside sales reps are looking for new business and trying to get into different markets. Internally, it’s going to be automation. • We’re taking our focus off growing and focusing more on profitability. I’ve grown at the expense of profitability for a while, and now what I’m trying to do is make sure that we’re managing the bottom line more. That means less marketing spending and more focus on new product development, but not trying to be everything to everybody nationally.

• We’re a job shop. We’re a tool builder for other companies. The sectors we’ve been closely aligned with historically have been things like agriculture. Agriculture is showing signs of lift, but from the previous six, seven years, it’s been eroding for us. On the other hand, recreational marine, things like kayaks, appears to be a market with really no end in sight. When we look at some of the projects that we’re developing, through our organic product development process or through joint equity partnerships, we feel very bullish about the opportunities there.

• Our limiting factor is being able to produce enough hours. We’ve had to try to throttle back our growth to be able to maintain on-time delivery. It’s a different challenge. In the past, you could build a building, buy the equipment, so now we’re having to get creative and figure out how to be able to do more with less, from a workforce standpoint.

• On the banking side, I’m bullish. It looks like there may be a bit of a slowdown, at least the Fed has certainly reacted that way. Listening to everyone talk about automation, robotics, and all that, for the companies that I’ve worked with, it’s very expensive to do that. It sounds great, but I always bring up working capital. For manufacturers, how is getting working capital? An issue? Not an issue? Not on the radar?

• We’re not actively seeking new business. We’re working on a massive backlog from last year. Since January, we’ve reduced that backlog by 55 percent which is amazing, but we went through a few months where we took a good 30 percent of our customer base out. We said, “These are the guys we’re going to grow with.” Right now, we’re not servicing them very well, and we need to do a better job of that.

• It’s a bit bad. • It’s expensive. It’s tight. But if you have the justification for it, then it comes through. It’s really about the justification and making sure you’re doing your homework.

• We have actually cut customers, as well.

Are there any other issues or ideas that you want to share? Things that we haven’t asked about?

• We do it in as positive a way as we can, but if it’s not in our wheelhouse, if it doesn’t fit us, we shouldn’t do it. It’s too much of a disruption to the flow.

• You talked about the metrics a little bit. Schools want well-rounded people, but they’re not doing well-rounded training. They’ve taken out wood and metal classes, classes that you need to get a well-rounded person. So, how would somebody out of high school even have those skills? They wouldn’t unless they were somewhere where they had to use those skills like on a farm. Kids aren’t farmers anymore, it’s all automated. I think it’s a big deal to somehow bring that back to high school.

• You know there’s an employment problem when your customers ask you how you’re going to grow your workforce. It’s not just here, it’s nationwide. Past focus group conversations on where people think the economy is going have been interesting. Are you bullish? Are you bearish? Why? • From our perspective it’s really bullish right now, but we’re really tied to a lot spending, so everybody knows that spending is really strong right now. Our business has just grown exponentially over the last couple of years. It looks like it’s going to continue to be strong for us over the next two to three years for sure. But during that time, we’re doing our best to find other markets, because we know it’s not going to stay there. We’re

• I used to own a college bookstore for 10 years. I saw young men and women graduate with a two-year degree with about 95 percent to 98 percent placement. And a lot of those people are starting out at $50,000 to $70,000 a year, even 10 years ago, with great training. • That’s something you don’t hear enough high school counsel-

ors tell people. • And promoting people to help fill our workforce needs. If I would have known that, I probably wouldn’t have gone the accounting road. I thought that’s how you make money, go be an accountant. I wish I would have known the type of pay that you could get without the debt. • Teaching financial literacy in more high schools would help us get more people who wouldn’t go out and spend $150,000 on their education. They would have a different career path if they were a bit more financially literate.

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Hampton Inn

FOCUS GROUPS

Shakopee, MN April 16, 2019 Is it related to the economy?

How’s business?

• Yeah. As always in the furniture business, a lot of it is project based. In the last couple of years, we’ve seen a lot of competition come in from Asia, selling at anywhere from 25 percent to 30 percent of our cost, and making the quality argument of well, buy twice as much as you need and just throw away the stuff, and you’ll still save 30 percent. We’ll see our volume double to two and a half times when we get to June, but we’re just not seeing it on the books yet, so it’s a little unsettling based on some of the investments that we’ve made in technology and equipment in anticipation of the run up, and it’s not coming in.

• January was my biggest month ever, but this month looks like it might beat that, and I can’t explain it. The economy to me seems kind of shaky. I do have one large customer who has gone into a new market, and that has had some effect there. But when I look at my customer base, it’s across the board. The only one that’s sucking wind is the agricultural bunch. • So far, we’re pretty flat year over year. The concern we have right now is we’re coming into our busy season. We run probably 70 percent of our business May to October, May to September. We kind of follow the furniture industry. We make our table bases for the office furniture and education industries, and we’re not seeing a ramp up in orders that we would historically see. We have a lot of customers who got bit last year because of how busy we get during the summer. Most of the time, our standard lead time is 10 days, 10 working days. So, their hope is that by ordering early, they’re going to get in front of the line and get their product on time. We have a higher backlog than we would normally carry right now, but typically our backlog represents about four weeks’ worth of business, and right now, it represents about four months’ worth of business. We’re not really sure what’s going on. We’ve talked to a lot of the manufacturers around the country that are similar to us. Some are doing well. Some are not.

• We serve a wide range of industries, so our business goes as their business goes. We’re up about eight percent from last year. We’re trending that way through the first quarter, as well. We anticipate a five percent to 10 percent increase over the prior year on a yearly forecast. • Architects and engineers are booming right now. When the economy goes, so do we. But right now, we’re also seeing a surge in manufacturing facilities in Rochester, both because of the economy, but also because of the snowstorms that we’ve had. We’ve had some pretty major collapses, mostly in the agricultural industry. We’re seeing a surge in manufacturing facilities and cold storage, too. We seem to have a large number of cheese storage and distribution facilities around Rochester. We’re building some of those, as well. Not with manufacturing but more storage.

100

Are you looking for people with particular skills, or warm bodies?

• Our Q1 was up about double what the revenue was over last year, and for us it’s just a function of having a sales team who can expose people to what we’re doing. When the economy’s good too, people buy. Most of our business is corporate gifts, so you know, companies might spend on that when they’re rebranding and when they’re launching marketing campaigns and stuff. I don’t know when you feel like you’re not in startup mode anymore. I don’t know if you ever notice it when it happens, but yeah. It just always feels like we’ve been so inexperienced in so many areas that we haven’t really hit any ceilings. It feels like we’re still just starting to develop those competencies.

• Yes. Which one hurts the most? • Warm bodies. You know, our biggest problem is not a problem, but the biggest challenge we have is we drug test. So, I always tell people that for every one position we try to hire, if we can get 10 people in the door—that’s a big if over a course of a matter of months for any position, any level—you might have four people we would consider hiring. Of those four, two would be able to pass a drug test. Of those two, one will probably find a higher paying job in the meantime, and of the one that makes it through, we

• We have a pretty good wide broad look at the state’s industry, because the capital equipment business that we sell is engineered equipment. It’s a lot of pollution control systems and so forth, and manufacturing process equipment. Our business, right now, is off about 20 percent from last year for capital equipment. Now, there are some segments of the industry where we have some big projects coming out, that will obviously influence the numbers. But I tell you, by the industry segments on the capital equipment side, the business is off quite a bit. When I talk, frac sand is down quite a lot. That’s a big industry; there’s a lot of capital investment. Food is flat. The industrial sector’s pretty good. The Iron Range is strong. Tariffs are good for some people. The agricultural sector is pretty flat, but dairy is still doing reasonably well. So, we’re seeing some good and some bad in different industries. Our service business, technical service business, is growing. There’s a demand for people to come and maintain equipment, fix equipment, repair equipment, keep it operating, so that business is growing. We anticipate that to stay pretty strong. But the capital equipment side is tailing off other than a couple of segments.

have maybe a 50/50 chance that he’ll last longer than two weeks. Do you drug test regularly? • At hire.

I suppose we should go to the elephant in the room. On a scale of one to 10—10 being devastating, one being not a problem—how would you assess your ability to attract and retain people in the way that it constrains or can constrain your ability to grow profitably?

How about others on attracting and retaining people on a scale of one to 10? • Actually, yeah, it’s dropped off. I would agree with him, seven or eight, but now three or four. We’ve actually had people come in the door asking about employment. I needed a tool maker, and I still wanted one for my shop over in Wisconsin. I think we’ve done a really good job of

• Eight. It’s the same as last year. Where we are, it’s always going to be a problem.

101

raising our profile in the community, and in a way that kind of accentuates being a place people like to work. It’s really helped out a lot. We’ve had most of our referrals from people who work for us already, as well as just people coming in the door. I need a mall designer and that’s not going to happen any time soon, but other than that, it has actually turned around pretty well for us.

experienced people, because we don’t have benefits yet, but we get really talented young people coming out of the U of M with no problem. What are you all seeing among your clients? • Well, our clients are primarily manufacturers, so they’re probably hovering between a five and an eight or nine, depending upon when you look at and certain roles. I mean, we primarily focus on your mid to higher level positions, but the mold makers and the tooling type jobs are really hurting the clients that we work with. There just aren’t enough of them coming out and having that skillset. I would say they’re challenged by that. But even when you’re looking at engineers, we work with some engineering firms, and then the engineers within the manufacturing companies that we support are really skilled, experienced with project management. But there just aren’t enough. So, we’re everywhere trying to knock on doors to help them.

• We do quite a lot of work in the wood industry, and what we’ve seen in the wood industry and in machine tool is that companies have gone to investing heavily in automation and technology that we didn’t. The wood industry, you know, went through some lean years, and now the labor force issues have forced many companies to invest heavily in automation and conveyor lines, and things that we would never have anticipated them going into. There’s been a lot of investment in that because of the labor issues. You know, it’s bad for some people, it’s good for someone, depending on how you respond to it and what your processes are. As a small manufacturer, I only have a 25-person manufacturing company. We’ve had suppliers in to look at automating some of our injection mold presses, but the capital equipment investment is just way too high. The robots aren’t too bad, but when you get down to the customization of the end of arm and the programming and everything else, on a per job basis, I can’t justify it. I specialize in small and medium volume, so I can’t do it. So, we’re still bound to getting bodies in the door.

What about temporary employees? That was a big solution for a number of years. It seems to have less market value now. Do you agree? • Yeah, I mean, we currently have three temp agencies that actively recruit every day for us, and those numbers that I gave include the efforts of our temp agencies. The problem that we have with the temp agencies is the Highway 52 corridor. You recruit somebody, and what you do is you go to your first client who’s the closest to wherever they are. If they don’t like that, then you go down 52 to the next one, to the next one, to the next one, because there are probably eight of us on the Highway 52 corridor between Harmony and Rochester. We can’t really play in the Rochester market space because our pay isn’t high enough and our benefits aren’t good enough to get people to drive under the Highway 90 bridge. But we’re all facing the same thing. Other companies are all recruiting out of the exact same labor pool. Occasionally what happens is one of them has a relationship with a company that let some people go, so they have first dibs on those people. All of a sudden, here’s four people who were fired from one of your other friends in the area. Do you want to interview them? Of course, we do. We recruit just as well as the temp agencies. We run our people through the temp agencies. Anybody who comes on in assembly or on our shop floor, any of those areas, they have to go through one of our temp agencies for the first 90 days.

Anyone else? • We’re a double-edged sword, so I’ll say five, because a lot of what we do is receive business when people are struggling with labor force. People outsource to us, or we also do support employment teams where we take a group out to a business. We often find people in manufacturing will have a skilled workforce, and they’re doing menial tasks. Our team will take over those tasks to free up their higher skilled, more expensive labor. So, that’s a good thing for us when businesses are struggling. But for our staff that we need to hire, we have a really hard time. So, that will constrain in different services that we offer to provide more services to people and grow revenue. We win on one hand where businesses are struggling. We find more opportunities to get people out in the community, or bring work into us, but to have the staff to support that is a real struggle. • You guys are going to hate me for saying this, but like, people are just walking into our place looking for jobs. We have a strong connection with the U of M, and we are well known as a young, fun company to work at.

How much of it is temp oriented versus generational? • I can’t really say now where we are because we would never see a Millennial. We are bringing in an intern in a couple of weeks who happens to be a good friend of one of our people. And he was so concerned that the only thing

It’s the cool factor. • Definitely the cool factor. I mean, we don’t necessarily get

102

One organization predicts that there could be up to a quarter of a million unfilled jobs within a few years. What’s your take on that?

he would be able to do is go down on the shop floor. He wants to be able to sit in a cube and work on a computer and add value. My response was, well, if he wants to add value, he should go down to the shop floor and assemble something. But we are going to use him because we do have needs there, too. But for the most part, we’re not looking at people under age. We bring in a number of college kids because they’re coming home for the summer and their parents tell them that they can’t just sit at home and play video games. But they’re there for two months. The biggest challenge I think we have is we can’t get into the high schools. We can’t penetrate the high schools. They don’t want to talk to us because their parents want them to go to four-year schools. So, the high school counselors won’t even allow us in. They won’t talk to us. For the first time last summer, or last fall, as part of Minnesota Manufacturing Day, we brought in a high school. Kingsway High School came in with 27 kids, and it was awesome. The kids were just blown away because you could eat off the floor in our shop 24 hours a day. It’s not something we did just for them. The technology, the robots, the CNCs, all the programming, the CAD designers that we use, all these things, the kids had no idea. And so, I think they just don’t have the exposure early on in life. I think that’s the biggest problem that we have down in southeast Minnesota. Those kids who are prime that don’t want to go to a four-year college aren’t going to be business majors or doctors or whatever, they just have no exposure to it because that’s not the environment they’re growing up in.

• What was it five years ago? • I don’t think the market takes care of it. I go to the local convenience store at lunch or to get gas and there are people behind the counter that I think would work well at our plant, but they’re there because of the flexibility. Historically, you know, I start up a press at 7:00 in the morning, and it runs until 3:00 or even until 11:00 after second shift, but with one person, interchanging with breaks. Five or six or even seven different people can work on that press all day long. So I’m trying to look at and build more flexibility in. We’ve tapped into Winona State’s engineering program, and typically, historically, we get an intern for the summertime. But now, we have two or even three of them on staff part-time who work full-time during the summertime, but they’ll work part-time for us during the school year. And we tell them, call it an internship. Call it whatever you want, but come in. And then we’ll have some really cool stuff for you to do once in a while, and other times, you’ll just be on the production floor. And they’re happy to get the experience. So, that’s really helped us out a lot, using those college kids. • Is there a career path? I mean, you guys are talking about trying to fill these jobs. Do you want to fill this job and have that person do that forever? Or is there, you know, opportunity to advance from these jobs? I’m saying this because I didn’t even consider manufacturing for a career. I didn’t know what it was. I had no idea that there was cool continuous improvement, Kaizen, lean, all this stuff that’s really fascinating. I had no idea. And I never would have gotten that from shop class in high school.

Anyone else faced with that? • Oh yeah. I got onto our high school’s curriculum review committee that meets three, four times a year. And at one of the meetings, one of the parents was talking about trying to make tech ed not required anymore, make it voluntary to try and free up some time. And we’re like, no, these kids need to go into a shop and learn how things work and fix things.

• I try to emphasize that when they come over, you know, and I’m talking to them while the other half are taking the tour, I use an analogy. “What do you see when you’re watching the game on TV?” They go, “Players and coaches.” I’m like, “Well, who else is behind that line?” “The trainers.” “Who handles their travel? Who buys the basketballs?” And I lay out to them that there are all these other people you don’t see and say, “Well here in manufacturing we have the people making product, but there are engineers. There are marketing people. There are sales people. There are production planners. There are purchasing people.” All these other things you don’t see, and all those opportunities to be able to move up. So yeah, I try and point out to them that there’s more than just putting stuff together going on.

Were they receptive? • They understood after we talked about it as not just a career type but that people should know how things work when they buy a house or buy a car or whatever. And so, yeah, they kind of turned around on it and left it alone after we talked about it. If I hadn’t been there, I think it would have been a voluntary type of class. It’s a big deal. So, we’ve made some inroads that way as far as getting them to recognize that we’re a viable opportunity. One of those students has worked part-time for me now for a good 18 months after school, after having visited us. So, we’re getting better visibility that way.

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What’s the bigger challenge? Recruiting or retaining?

wasn’t greener. So, we’ve put a lot of effort in trying to create an environment where people like working here and see the opportunity to move up and do other stuff. That pays huge dividends.

• Recruiting. • Recruiting.

• To keep younger people, do you have to show some flexibility, like iPhone use during the day, and things like that?

• Yeah. We spend a large amount of time recruiting. Then they’ll apply. Then they won’t show up for a phone interview, or won’t show up for an in-person interview, or they don’t show up for the first day of work. So, we spend a large amount of time recruiting, which is really shocking. And I would say it’s more of a younger generation thing, but it could be just a part of the labor pool that we’re tapping into, as well. I grew up where I had to fight for a job. Now, you know, they’re so plentiful that people are just like, oh, whatever. Or we’ll call them and they’ll say, “Oh, what job is this?” Because they go on Indeed and apply for 50 jobs. So, you have to try to explain it to them.

• Can you take their phones away? I don’t think any of my guys would survive. • I know owners that struggle with it. Some do, some don’t allow them at all. And you have disciplinary action if you have it out. And others have given up on it. • Yeah, we don’t allow cell phones on the floor. I mean, it’s annoying. Kids, they’re constantly distracted all the time. I don’t know. There’s something with the Millennial generation, that constant questioning of their life choices, like do they want to be here? Kids who work for us, especially the ones in the skilled positions, are constantly trying to justify whether they should stay or leave. They have options because they want to do something meaningful with their life.

And do you have a strategy in place for retention? Or is it just because you have a good culture? • I think it’s culture. We struggle with wages because 70 percent of our revenue comes from state funding. We don’t have the pricing. In my social enterprise, we do. We have some pricing flexibility, but overall, we don’t. We’re based on rates, so we’re actually just restructuring, redoing jobs to try to build in raises for people.

I have heard that they appear to be less motivated by money than other things. Do you find that? • They seem to be very motivated by money, too. They want money and all the other things.

• The number one reason people leave us is because of the wages. They’re often working two jobs because they love the mission aspect of it. They love to give back. We have some career paths, so some people stay. And we have people that have been there 20, 35 years. But in our front line staff, our direct support staff, it’s a really high turnover, like 60 percent. A lot of it’s just wages; they know they can go to Target and make $15 an hour, versus $12 or $13 where we’re starting at. But we do a lot of things. We’re really flexible. We have a pet policy. We have benefits. We do a lot of things to try to retain people. It’s just usually when they start a family, they need more money. It’s just a reality. And often, people are tearful in exit interviews. They don’t want to leave, but it’s just the reality that they need to make a little more money.

• They want a promotion after two weeks, and yeah, think they’re that good. Anyone else on dealing with the Millennial and Generation Z types? Anything you have to adopt? • They do want the flexibility. At the lower end, they don’t want to do the same thing all the time every day. And they are looking for a sense of purpose. They want to know. I make piece parts for products that end up all over the world. Well, they do like it when I show them where that part ends up in the final product and the customer who uses it is. So, they like being tied into the bigger picture to know that they’re contributing. It helps plug them in that way. But a sense of purpose is a big deal for them.

Who else? Retain or attract?

Productivity seems to be productivity of people, but processes seem to be more urgent now as a way to do more with less in a manufacturing company.

• Attract. • Attract. I mean, I don’t have any problem retaining them. For my full-time people, my average tenure is 10.5 years. We’ve worked really hard to be a place people want to work. We have won a couple of awards for effectiveness and flexibility in the workplace. In fact, I had three people who left and came back again. They found out the grass

• Every day. I just signed off on a new quality management system that’s largely intended to automate our non-conformance process because we’re not getting good quality data out of the floor. So, just last year we went to bar coding

104

and hand held scanners so we can track inventory and jobs throughout our entire facility. In our slow season in October to March, we focus on a lot of process improvements. We just rearrange our entire assembly area, our racking, and everything to make it more efficient. We focus a lot on those types of things and are trying to push it down through the organization and just say, “You guys don’t need my approval every time you want to do one of these projects.” Now, they have a board up in one of the break rooms where people can just go write things down, and they meet every week to talk about the ideas that are up there and stuff. Our welders will regularly tell us that they can weld faster than we can do it on a robot. And we’ve proven it. We’ll even entertain the notion about once every three or four months and prove it to them. I ask how many welds can they do during lunch? And they say, “Well, zero.” I’m like, “Yeah, that robot’s still kicking them out.” That robot hasn’t had a PTO day in four years. We have scheduled maintenance, but you know, we don’t have a very technical employee base. We have the people who don’t have credit cards. They don’t have email accounts. And so, when we force these things on them, we get a lot of pushback.

we’re down into the two percent in Minnesota, I think Minnesota’s about 3.1 percent, but once you get down below that three percent, we struggle with being able to incorporate them into our workplace. When you’re talking about the economy growing, it’s going to tap out at a certain point. You can’t grow anymore because the bodies aren’t there. • Yeah, I mean, we talk about it all the time. We’re not able to increase our workforce. We can only automate so much because of the variability in our product line. We might be able to automate the bending of the tube. We might be able to automate some of the welding. So, we have limiting variables just in the nature of our business that will say we can only automate to a certain point. So, we’re very close to that limit. We have a couple of new welding technologies that we’re evaluating whether we can get them and get them to work. They’ll be a differentiator for us. But short of that, there’s really not a lot left automation wise that we can do. So, it comes down to the workforce. Can we expand our second shift in that capacity then? One of my primary focuses is to look for other metal fabrication opportunities because what we do is we saw, we sand, we weld, we machine, laser, CNC metal, all within a 1,000mile radius and about 10,000 other companies. And so, it’s just hard to break into that, you know. If we don’t do something else to differentiate our product mix, we will definitely be in peril.

Do others get pushback on automation? • Like I said, we haven’t automated anything. The presses run automated in some cases, but other times, we have an operator on site. I haven’t had an issue. I have a few people, you know, old timers, who resist the computer. When we went to direct deposit years ago, we had to get them to get a cash card or whatever. But you win them over by basically saying that’s just the deal, and you help them make the adjustment.

Are you thinking, do we acquire? Do we get acquired? That kind of thought? • Yeah. I think right now, I have four acquisition inquiries going. You know, probably the biggest issue that we have is whether we acquire something smaller or do we go big? And my experience is that acquiring smaller when you’re the size that we are isn’t real fruitful because what you’re buying isn’t a real high return field. So, do we go make a play for one of the big guys, somebody who has a tube laser? That’s a differentiator in the metal fabrication business. That’s a billion investment for a single one of those. It gives you an unbelievable number of capabilities that most metal fabrication shops don’t have. So, we’re kicking that around, and I think the owner is approaching the end of his useful life in the manufacturing business. His risk appetite is probably a little less than what we really need, so we’re kind of in that exit strategy conversation of what he wants to do and what he’s willing to do and what he wants the future to be after he steps aside.

Are workforce issues becoming part of whether a company advances? Do you look at that? • For the most part, no. I would say depending on the industry and the size of the company, it could come into play, and depending on the skillset is needed for that or how much reliance there is on revenue. You know, a service company for example, would be pretty important. Let’s say for example we had a CPA firm that was a client of ours. Their ability to retain and deliver upon their revenues is pretty important. But I don’t think it’s to the point where it would affect the credit decision. I mean, we recognize it might affect the bottom line where they have to start paying more money for the labor, but we haven’t seen anything close to affecting whether they would be bankable or not.

Are these existential threats to you, these different factors of people and productivity and equipment?

• Yes. I mean, no offense. I truly believe that the finance community doesn’t understand how bad the workforce situation is. That last year when they reported 190,000-plus jobs, you know, it’s like there isn’t an endless pool. When

• Equipment’s not. I mean, there are processes that we automate and look for, but we sell labor, so we’re not looking.

105

And most of our work doesn’t lend itself to automation. There are a few elements where we look for equipment efficiencies, but by and large, no. We have other factors that impact us from state regulation funding that we’re always looking at acquiring, to getting into different services, things like that. • You know, I have more of a big picture comment. Clearly, the workforce issue is the number one issue, right, it’s limiting manufacturing and it’s going to for the foreseeable future. So, how are we going to resolve that? Well, essentially, our labor force is a fairly finite number that’s not going to grow. So, we’re left in the situation from a manufacturing perspective of how can we attract labor force from other vocations? Society in general has done a great job of making everybody think, especially in urban Twin Cities type areas, that every kid should go get a four-year degree and go to college. Well, there are a lot of really good, interesting, very well paying jobs in the trades, in manufacturing, that offer all kinds of opportunity. But we’ve really not been successful in promoting the value that you get out of school. There are all kinds of different directions if you like doing things. There are any number of kids we know who really don’t like college. They flounder at college, and they would have been great candidates for a trade. Then they finish up, you know, and they work in a cube, and they get dissatisfied doing that, and so forth. It’s not an easy solution. I’m just stating a big picture view here.

106

CROSS TABS

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 1-1 Summary of Key Firm Data BANNER 1

BASE=TOTAL SAMPLE FINANCIAL FUTURE (D/S) ---------------------TOTAL CONFIDENT

TOTAL NOT CONFIDENT GROSS REVENUES (D/S) -------------------INCREASE DECREASE STAY THE SAME PROFITABLILITY (D/S) -------------------INCREASE

DECREASE STAY THE SAME CAPITAL EXPEND (D/S) -------------------INCREASE

DECREASE STAY THE SAME

YEARS IN REGION REGION II REVENUES EMPLOYEES PRIMARY BUSINESS OPERATION JOB TITLE ============================== ============ ================= ================= ======================= =========== ======================= $1 REST UNDER MILL COLLAR TWIN OF $1 - $5 $5 UNDER PROC PREC1-15 16+ PRES/ MGMT MANAG TOTAL MSP COS NE S W/NW CITIES STATE MILL MILL MILL+ 10 11-50 51+ -ESS ISION METAL OEM YRS YRS OWNER CEO TEAM -ER ----- ----- ------ ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----400 100%

351 88%

140 35%

123 87%

87 22%

80 91%

48 12%

40 84%

BANNER 1

MN BIZ CLIMATE (D/S) -------------------BETTER

WORSE SAME

43 11%

36 85%

82 20%

73 89%

228 57%

202 89%

172 43%

149 87%

166 42%

142 85%

108 27%

98 91%

101 25%

92 91%

202 51%

173 86%

117 29%

105 89%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

73 92%

73 80%

89 92%

53 89%

44 95%

87 87%

264 88%

135 86%

107 27%

94 88%

31 94%

67 87%

83 95%

44 92%

39 91%

76 94%

213 93%

159 93%

152 91%

103 95%

96 95%

185 92%

111 94%

75 95%

82 90%

92 95%

56 93%

45 97%

93 93%

279 93%

144 92%

213 53%

77 55%

48 55%

26 55%

24 55%

38 47%

125 55%

88 51%

71 42%

63 59%

69 68%

89 44%

79 67%

45 57%

53 58%

53 54%

28 46%

24 52%

69 70%

144 48%

71 45%

64 60%

28 85%

37 48%

3 6%

4 9%

11 7%

6 5%

1 3%

5 6%

236 59% 22 6%

129 32%

7 5%

84 60% 7 5%

43 31%

146 36%

45 32%

36 9%

16 11%

181 45% 172 43%

61 15%

60 43%

26 19%

3 4%

53 61% 5 5%

27 31%

33 38%

40 46% 7 8%

37 42%

18 20%

4 8%

29 61%

15 31%

3 6%

27 64%

9 22%

18 37%

14 33%

3 6%

6 14%

21 44%

22 46%

12 26%

20 46%

4 4%

11 5%

42 52%

137 60%

34 42%

71 31%

4 5%

12 5%

36 44%

78 34%

4 5%

22 10%

40 49%

100 44%

10 6%

99 57%

10 6%

58 34%

10 6%

84 51%

14 8%

64 38%

68 39%

40 24%

13 8%

26 16%

81 47%

66 40%

4 4%

5 5%

12 6%

6 5%

3 3%

9 10%

3 3%

2 4%

1 2%

6 6%

15 5%

10 6%

104 52%

83 71%

48 60%

59 64%

56 57%

33 54%

27 58%

74 74%

162 54%

82 52%

30 28%

27 26%

78 39%

27 23%

23 28%

26 28%

35 36%

20 34%

17 37%

20 21%

108 36%

60 38%

28 27%

3 10%

26 34%

65 42%

54 51%

20 62%

30 38%

50 46%

55 51% 6 5%

3 3%

15 7%

47 47%

52 25%

4 4%

30 15%

51 50%

81 40%

5 4%

62 52%

65 56% 4 3%

3 3%

6 6%

3 3%

5 8%

3 6%

4 4%

33 41%

33 36%

36 37%

19 32%

17 36%

51 51%

2 3%

10 11%

7 7%

6 10%

6 13%

9 9%

35 44%

43 48%

43 44%

25 42%

23 49%

60 60%

18 6%

49 31%

26 9%

16 10%

12 11%

19 12%

20 19%

3 10%

12 16%

27 17%

17 16%

5 15%

11 14%

36 44%

96 42%

75 44%

71 42%

43 40%

47 46%

86 43%

46 40%

38 47%

35 38%

43 44%

27 45%

17 37%

28 28%

142 48%

70 45%

6 7%

44 19%

17 10%

22 13%

16 15%

22 22%

26 13%

12 11%

23 30%

14 16%

18 18%

6 10%

14 29%

14 14%

48 16%

123 31%

46 33%

28 32%

18 37%

10 24%

22 27%

74 32%

50 29%

48 29%

33 30%

38 38%

56 28%

33 28%

35 44%

29 31%

30 31%

19 32%

17 36%

28 28%

95 32%

46 30%

208 52%

72 51%

45 52%

25 52%

21 50%

44 54%

117 52%

90 52%

92 55%

55 51%

46 46%

114 56%

64 54%

30 37%

48 53%

52 54%

26 43%

27 58%

56 57%

151 50%

83 53%

62 15%

20 14%

10 11%

5 11%

11 26%

16 19%

30 13%

32 19%

26 15%

17 15%

16 16%

30 15%

20 17%

11 14%

14 16%

12 13%

13 22%

3 6%

14 14%

47 16%

40 38%

38 36%

49 46%

19 59% 1 3%

12 36%

8 24%

20 61%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

M E E TII I N G S REVENUES T R E E T R REGION REGION ============================== ============ ================= $1 REST UNDER MILL COLLAR TWIN OF $1 - $5 $5 TOTAL MSP COS NE S W/NW CITIES STATE MILL MILL MILL+ ----- ----- ------ ----- ----- ----- ------ ----- ----- ----- ----122 30%

46 33%

29 33%

9 18%

12 28%

26 32%

75 33%

47 27%

36 22%

59 15%

18 13%

12 14%

13 27%

6 14%

10 12%

30 13%

29 17%

31 19%

181 45% 150 37%

65 46%

54 38%

41 47%

33 37%

21 45%

13 26%

18 42%

18 41%

36 45%

33 41%

105 46%

86 38%

76 44%

64 37%

67 41%

64 38%

51 48%

27 27%

8 8%

16 16%

60 55%

36 33%

107

43 43%

40 40%

41 54%

95 32% 121 40%

42 40%

29 87%

3 4%

72 71%

6 5%

70 65%

1 3%

71 91%

69 64%

17 40%

-1 -2%

6 6%

32 97%

77 19%

130 92%

21 5%

100 94%

33 8%

372 93%

Table 1-1 Summary of Key Firm Data Continued

PAGE 1

25 32% 5 6%

38 49%

23 30%

42 54%

PAGE 2

YEARS IN E S EMPLOYEES E A R C H PRIMARY BUSINESS OPERATION JOB TITLE ================= ======================= =========== ======================= UNDER PROC PREC1-15 16+ PRES/ MGMT MANAG 10 11-50 51+ -ESS ISION METAL OEM YRS YRS OWNER CEO TEAM -ER ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----50 25%

53 46%

19 24%

20 21%

39 40%

23 38%

6 12%

34 34%

89 30%

47 30%

20 18%

17 51%

23 29%

33 16%

13 11%

12 15%

14 15%

12 12%

8 13%

10 22%

10 10%

49 16%

26 17%

20 19%

3 9%

10 13%

83 41%

80 40%

67 57%

35 30%

31 39%

34 43%

34 37%

42 46%

51 52%

31 32%

31 52%

20 33%

16 34%

20 44%

44 44%

137 46%

105 35%

73 47%

53 34%

40 38%

43 40%

20 59%

11 32%

32 42%

34 44%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 1-2 Summary of Key Firm Data BANNER 2

BASE=TOTAL SAMPLE FINANCIAL FUTURE (D/S) ---------------------TOTAL CONFIDENT

TOTAL NOT CONFIDENT GROSS REVENUES (D/S) -------------------INCREASE

DECREASE STAY THE SAME PROFITABLILITY (D/S) -------------------INCREASE

DECREASE STAY THE SAME CAPITAL EXPEND (D/S) -------------------INCREASE

DECREASE STAY THE SAME MN BIZ CLIMATE (D/S) -------------------BETTER

WORSE SAME

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 351 88%

201 50%

201 100%

171 43%

171 100%

372 93%

21 5%

372 93%

201 100%

171 100%

372 100%

213 53%

141 70%

74 43%

215 58%

2 1%

11 7%

21 5%

236 59%

143 71%

129 32%

49 24%

22 6%

146 36%

62 15%

208 52%

122 30%

181 45%

59 15%

150 37%

25 13%

104 52%

78 39%

101 50%

22 11%

73 36%

BASE=TOTAL SAMPLE FINANCIAL FUTURE (D/S) ---------------------TOTAL CONFIDENT

TOTAL NOT CONFIDENT GROSS REVENUES (D/S) -------------------INCREASE

DECREASE STAY THE SAME PROFITABLILITY (D/S) -------------------INCREASE DECREASE STAY THE SAME CAPITAL EXPEND (D/S) -------------------INCREASE

DECREASE STAY THE SAME MN BIZ CLIMATE (D/S) -------------------BETTER WORSE SAME

147 75%

52 34%

3 12%

116 64%

51 87%

142 95%

228 97%

11 19%

80 54%

121 94%

175 96%

236 -22 100% -100%

72 42%

121 32%

6 31%

38 19%

76 49%

7 32%

52 29%

30 51%

44 30%

5 23%

113 58%

49 32%

6 29%

94 52%

19 31%

63 42%

159 67%

4 20%

71 36%

8 37%

75 41%

66 44%

72 31%

3 14%

73 37%

4 18%

58 32%

46 31%

82 35%

150 40%

-4 -21%

25 7%

9 44%

65 17%

-3 -14%

54 15%

6 29%

66 39%

175 47%

86 50%

166 44%

51 30%

119 32%

29 17%

88 51%

41 24%

70 41%

29 17%

69 40%

104 53% 9 5%

49 25%

-2 -9%

29 19%

-2%

7 32%

103 52%

6 29%

69 35%

142 38%

10 6%

41 26%

86 44%

170 46%

7 33%

4 20%

84 54%

6 27%

96 49%

51 14%

20 13%

31 20%

11 54%

-1%

2 10%

24 12%

192 52%

119 32%

29 19%

17 9%

83 54%

60 39%

31 20%

63 41%

12 56%

87 48%

9 14%

9 6%

6 10%

47 32%

7 4%

13 21%

16 10%

35 20%

-2 -3%

24 16%

23 12%

27 46%

15 25%

16 28%

22 15%

181 -59 100% -100%

97 53%

7 32%

181 100%

7 34%

6 4%

13 60%

236 100%

5 3%

7 12%

129 32%

89 60%

6 28%

7 4%

22 6%

223 95%

20 34%

12 8%

5 24%

236 59%

136 91%

121 67%

3 1%

12 8%

150 37%

45 75%

8 40%

7 35%

2 1%

170 94%

59 15%

64 42%

13 4%

28 47%

156 66%

-14 -61%

3 1%

16 70%

55 23%

-8 -36%

27 12%

11 51%

101 43%

-4 -18%

20 8%

9 39%

121 51%

150 100%

89 38%

M E E T I N G S T R E E T

114 89% 6 5%

22 100%

125 53%

7 32%

79 53%

59 100%

5 2%

6 27%

181 45%

170 94%

68 40%

2 1%

16 44%

4 2%

159 88%

92 72%

8 35%

5 21%

9 41%

21 11%

9 26% 3 8%

4 2%

72 42%

15 43%

92 54%

172 100%

5 15%

48 28%

181 -36 100% -100%

31 18%

22 17%

75 42%

-5 -15%

48 28%

19 10%

13 35%

52 40%

30 23%

44 34%

R E S E A R C H

94 52%

63 35%

7 20%

16 44%

90 52%

75 44%

27 16%

66 39%

LEADERSHIP DEVLP PROG USING AUTOMATION =========== ============================== PRODNOT UCTIV QUAL ENHAN CONS TOTAL YES NO -ITY -ITY SAFETY -CING AUTO ----- ----- ----- ----- ----- ------ ----- ----400 100%

92 23%

298 74%

202 50%

151 38%

119 30%

87 94%

277 93%

191 94%

143 95%

111 93%

351 88%

81 88%

21 5%

5 6%

372 93% 213 53%

236 59%

22 6%

129 32%

53 57%

59 64%

7 7%

79 64%

16 26%

117 56%

150 64%

11%

58 39%

3 3%

11 18%

8 4%

6 3%

1 18%

12 8%

3 2%

82 67%

34 28%

6 10%

27 44%

22 36%

11 5%

125 60%

68 55%

48 39%

49 100%

93 45%

31 50%

90 43%

49 100%

19 31%

62 100%

43 35%

6 10%

58 47%

15 12%

46 37%

71 34%

123 -62 100% -100%

123 100%

-1 -20%

9 4%

2 48%

119 51%

98 42%

7 3%

55 27%

-6%

34 23%

22 44%

9 18%

19 38%

113 48%

28 12%

85 37%

69 72%

47 47%

78 65%

82 69%

5 4%

28 24%

67 70%

2 2%

22 24%

255 93%

163 96%

160 95%

159 93%

15 5%

38 38%

145 53%

9 9%

14 5%

42 42%

159 58%

91 33%

5 3%

7 4%

67 94%

138 93%

138 95%

141 96%

4 5%

8 5%

11 6%

54 32%

147 37%

9 5%

87 51%

53 31%

146 36%

63 89%

88 52%

99 58%

147 37%

151 88%

95 56%

103 60%

71 18%

97 57%

57 33%

44 61%

47 66%

4 5%

19 26%

128 87%

10 7%

84 57% 90 61%

6 4%

48 33%

130 89%

8 5%

91 63% 96 66%

5 3%

41 28%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

66 90%

187 95%

135 91%

42 88%

59 82%

61 83%

61 84%

6 4%

3 6%

5 7%

5 6%

44 94%

64 89%

66 89%

180 92%

166 84%

6 3%

14 7%

88 60%

23 50%

33 46%

33 45%

38 52%

126 65%

7 5%

2 5%

6 8%

5 7%

2 3%

6 3%

95 64%

43 29%

26 55%

17 36%

39 54%

26 36%

38 51%

30 41%

40 55%

29 39%

196 49%

179 91%

85 43%

132 67%

100 51%

52 27%

73 37%

104 53%

71 36%

16 8%

65 38%

60 35%

28 39%

52 36%

65 45%

63 43%

18 38%

23 32%

16 22%

25 34%

96 49%

27 9%

12 6%

12 8%

4 3%

4 4%

16 16%

29 11%

14 8%

15 9%

18 10%

2 2%

11 7%

8 6%

7 5%

3 7%

8 11%

9 12%

7 10%

8 4%

27 14%

5 6%

7 10%

43 22%

15 8%

15 21%

14 19%

31 16%

45 15%

42 14%

100 50%

83 41%

48 16%

113 38%

60 40%

60 50%

53 44%

52 54%

38 40% 37 38%

26 26%

85 31%

48 51%

58 57%

145 53%

39 38%

128 47%

27 28%

28 14%

21 14%

12 10%

10 10%

52 35%

74 49%

45 38%

59 49%

9 9%

17 17%

69 34%

59 39%

48 40%

42 44%

23 23%

29 14%

20 13%

16 14%

12 13%

16 15%

70 35%

79 52%

49 32%

64 54%

37 31%

127 46%

110 40%

33 28%

65 32%

39 38%

43 42%

31 21%

98 48%

80 27%

75 49%

37 18%

129 43%

33 36%

10 10%

153 91%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

69 41%

48 52%

9 9%

7 5%

36 24%

4 5%

158 93%

54 57%

27 28%

46 45%

83 49%

68 40%

79 47%

69 41%

77 45%

71 41%

40 56%

46 27%

22 30%

98 57%

32 45%

45 17%

23 14%

28 17%

22 13%

39 14%

27 16%

25 15%

24 14%

51 30%

91 53%

53 31%

90 53%

30 42%

63 43%

71 48%

74 51%

61 42%

70 47% 70 47%

21 45%

20 42%

31 43%

31 44%

4 5%

23 16%

27 18%

31 21%

12 26%

14 20%

18 25%

22 15%

20 14%

22 15%

3 7%

10 14%

46 31%

77 52%

47 32%

76 52%

53 36%

71 48%

15 33%

27 56%

26 35%

37 50%

24 34%

20 27%

35 49%

36 48%

33 45%

30 41% 21 29%

34 47%

78 40%

87 45%

117 60%

47 28%

51 30%

22 30%

53 36%

52 36%

48 32%

17 35%

23 31%

20 27%

25 34%

67 34%

42 15%

30 18%

28 16%

25 15%

10 13%

17 12%

15 11%

22 15%

4 9%

8 12%

13 18%

9 12%

25 13%

99 36%

62 36%

63 37%

M E E T I N G S T R E E T

108

76 45%

65 38%

31 44%

29 41%

70 48%

57 39%

R E S E A R C H

68 46%

61 42%

69 47%

54 37%

21 44%

19 41%

31 43%

28 40%

33 44%

25 34%

34 47%

28 38%

93 47% 46 23%

45 27%

75 44%

44 22%

73 38%

85 31%

76 44%

1 28%

1 18%

1 24%

2 59%

10 7%

35 24%

85 57%

61 41%

26 18%

58 39%

PAGE 4

98 36%

103 51%

59 15%

102 68%

7 6%

240 88%

68 46%

21 14%

85 36%

110 47%

22 22%

164 55%

39 42%

95 63%

91 90%

81 80%

171 43%

1 24%

13 26%

48 50%

39 43%

122 30%

150 37%

134 66%

90 94%

86 90%

169 42%

57 39%

25 17%

87 37%

56 47%

87 29%

20 21%

127 63%

7 4%

104 88%

170 42%

36 24%

1 28%

2 72%

97 46%

79 38%

110 47%

63 43%

32 14%

23 36%

22 36%

1 24%

71 48%

49 100%

28 13%

62 27%

1 28%

13 9%

-2 -72%

208 100%

16 27%

156 67%

1 18%

56 24%

69 33%

6 2%

63 42%

33 36%

62 15%

8 4%

137 90%

274 68%

148 37%

119 80%

132 89%

88 44%

130 44%

14 15%

183 91%

101 25%

2 65%

3 82%

102 34%

37 40%

61 15%

181 45%

15 5%

130 44%

7 7%

208 52%

172 58%

47 51%

36 9%

123 31%

157 53%

100 34%

41 44%

172 43%

14 5%

24 26%

146 36%

181 45%

263 89%

95 24%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

3 1%

226 97%

19 9%

11 32%

233 58%

221 95%

48 98%

11 18%

19 11%

48 98%

192 93%

5 4%

17 10%

49 12%

54 88%

22 17%

19 53%

181 87%

74 36%

-6 -17%

93 51%

208 52%

8 13%

48 27%

71 55%

48 78%

62 51%

36 100%

68 37%

62 15%

12 9%

116 94%

-13 -36%

5 3%

181 100%

34 27%

123 31%

157 87%

21 16%

3 15%

162 94%

119 97%

2 9%

15 12%

172 43%

166 97%

129 100%

4 17%

16 44%

25 69%

5 4%

36 9%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 1-3 Summary of Key Firm Data BANNER 3

-2 -9%

16 76%

164 90%

150 76%

22 13%

68 34%

61 15%

140 91%

181 45%

11 52%

5 26%

43 21%

123 31%

191 98%

21 5%

228 61%

18 10%

80 40%

129 83%

85 50%

7 4%

172 43%

155 39%

189 97%

21 100%

49 28%

108 54%

101 50%

181 45% 36 9%

196 49%

372 -21 100% -100%

PAGE 3

91 47%

75 39%

30 15%

56 28%

88 45%

32 16%

72 37%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 1-4 Summary of Key Firm Data BANNER 4

BASE=TOTAL SAMPLE FINANCIAL FUTURE (D/S) ---------------------TOTAL CONFIDENT

TOTAL NOT CONFIDENT GROSS REVENUES (D/S) -------------------INCREASE

DECREASE STAY THE SAME PROFITABLILITY (D/S) -------------------INCREASE

DECREASE STAY THE SAME CAPITAL EXPEND (D/S) -------------------INCREASE

DECREASE STAY THE SAME

NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER SHORTAGE GREATEST EMPLOYEE NEED WORKER SHORTAGE FUTURE CHALLENGES ================= ============================== ======================= =============================== ============================== ATTUNFAV TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK RACT BIZ VERY TOTAL NOT AUTOM CURR OUT- PROC NO TECH/ PROD INCR TRAIN -SIVE TECH WORK- HLTH RISING CLIM LOWER TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL FORCE COSTS COSTS -ATE SALES ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----- ----- ----- ------ ----- ----400 100% 351 88%

372 93% 21 5%

87 22%

77 88%

80 92% 4 4%

213 53%

40 46%

22 6%

9 10%

146 36%

27 31%

36 9%

11 13%

236 59% 129 32%

181 45%

49 56%

27 31%

38 44%

285 71%

249 87%

266 93% 17 6%

151 53%

168 59% 17 6%

96 34%

25 29%

92 32%

208 52%

43 49%

MN BIZ CLIMATE (D/S) -------------------BETTER

WORSE SAME

39 92%

41 96% 2 4%

30 71%

5 5%

2 5%

61 59%

31 30%

10 10%

123 31%

17 19%

3 3%

43 11%

55 54%

26 9%

129 45%

62 15%

98 95%

39 38%

128 45%

36 42% 8 9%

95 92%

103 36%

172 43% 61 15%

103 26%

49 48%

39 38%

32 76%

8 19%

22 52% 24 57%

2 5%

15 36%

144 36%

130 90%

137 95% 7 5%

78 54%

84 58% 6 4%

48 33%

6 8%

28 34%

38 46%

30 36%

44 31%

20 24%

72 50%

49 59%

14 14%

8 19%

24 16%

17 41%

45 55%

11 14%

48 17%

54 52%

2 2%

39 47%

7 5%

21 14%

144 50%

76 91%

73 51%

8 19%

16 38%

74 89%

27 32%

61 42%

16 16%

30 30%

83 21%

54 37%

44 16%

42 11%

7 2%

35 82%

5 74%

4 9%

1 13%

39 91%

22 52%

26 61% 4 9%

6 87%

2 33%

13 30%

5 67%

22 52%

2 33%

17 40%

3 41%

18 43%

4 8%

2 27%

122 31%

112 91%

117 96% 5 4%

64 53%

70 58%

6 5%

38 31%

93 23%

81 87%

86 93% 5 6%

47 51%

53 57%

6 6%

34 37%

149 37%

131 88%

138 93% 7 4%

10 2%

10 100%

87 58%

5 51%

7 5%

1 12%

94 63%

46 31%

6 63%

3 26%

49 40%

24 26%

61 41%

5 49%

9 7%

9 10%

12 8%

1 12%

58 48%

49 40%

33 36%

50 55%

74 49%

62 41%

6 60%

3 28%

214 54%

187 87%

200 93%

13 6%

118 55%

129 60%

11 5%

151 38%

139 92%

145 96% 5 4%

93 62% 100 66% 6 4%

128 32%

114 89%

121 94% 7 6%

71 55% 78 61% 7 6%

125 31%

109 87%

116 93% 7 6%

81 65% 85 68% 4 3%

106 27%

94 89%

99 93% 4 4%

64 60% 70 65% 6 5%

191 48%

177 93%

183 96% 6 3%

123 64% 128 67% 5 3%

18 40%

7 9%

2 4%

67 53%

51 48%

89 47%

50 41%

52 46%

99 46%

68 45%

58 45%

48 39%

43 41%

87 45%

59 49%

45 40%

31 40%

18 39%

64 34%

31 25%

38 34%

24 31%

8 16%

93 49%

65 54%

15 7%

8 6%

9 7%

59 48% 7 6%

46 43% 5 5%

79 41% 10 5%

29 27%

37 19%

15 18%

7 16%

1 12%

16 13%

18 20%

26 18%

37 17%

21 14%

22 17%

17 14%

11 10%

27 14%

5 57%

25 33%

6 5%

61 48%

53 41%

26 21%

74 50%

26 56%

70 46%

62 41%

21 16%

43 46%

44 57%

4 9%

24 52%

93 44%

78 37%

35 23%

68 55%

61 54%

42 91%

43 38%

29 14%

4 55%

8 11%

36 47%

38 82%

46 39%

4 43%

21 49%

4 4%

56 49%

67 87%

53 28%

19 13%

4 43%

9 8%

59 76%

106 94%

27 25%

13 14%

45 30%

64 53%

102 90%

33 27%

19 16%

31 34%

5 4%

54 45%

46 12%

42 32%

1 20%

36 29%

115 95%

77 19%

40 26%

8 19%

2 33%

110 92%

114 28%

67 31%

5 6%

15 35%

120 30%

66 31%

108 50%

56 37%

71 47%

43 34%

60 47%

43 34%

62 50%

39 37%

53 50%

38 32% 11 9%

38 34%

28 36%

14 31%

14 12%

9 11%

7 15%

6 5%

21 19%

24 20%

17 15%

57 51%

36 47%

8 11%

16 20%

37 48%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 1-4 Summary of Key Firm Data BANNER 4

PAGE 5

21 46%

-1 -2%

8 18%

30 65%

PAGE 6

25 29%

59 15%

17 19%

181 45% 150 37%

42 48%

29 33%

80 28%

37 36%

22 51%

51 35%

13 16%

46 16%

13 12%

4 10%

17 12%

16 19%

125 44% 109 38%

49 48%

38 37%

26 61%

11 26%

67 47%

56 39%

29 35%

35 42%

16 38%

4 58%

21 49%

4 58%

17 41%

3 42%

5 11%

36 30%

54 44%

18 14% 49 40%

15 17%

78 52%

34 36%

54 36%

21 22%

M E E T I N G S T R E E T

109

64 43%

36 39%

14 9%

3 29%

77 36%

4 40%

103 48%

5 50%

82 38%

1 11%

26 12%

R E S E A R C H

59 39%

74 49%

16 10% 59 39%

47 36%

63 49%

16 13% 47 37%

34 27%

55 44%

21 17%

45 36%

29 27%

42 40%

13 12%

47 44%

76 40%

97 51%

21 11%

68 35%

32 27%

38 33%

13 17%

6 14%

14 13%

17 22%

7 15%

54 45%

52 46%

43 36%

41 36%

21 18%

31 40%

29 38%

13 28%

26 57%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 1-5 Summary of Key Firm Data BANNER 5

BASE=TOTAL SAMPLE FINANCIAL FUTURE (D/S) ----------------------

GROWTH DRIVERS GENDER AGE EMPLOYEES COMBINED INITIATIVE REGIONS ==================================== =========== ======================= =========== ============================= NORTH SW/ DEV-LAND WEST NEW MAX NEW ELIM STRTGY ELOP UNDER IF /NW SOUTH CENT TOTAL CUST PROD PROD WASTE PLAN MGRS MEN WOMEN 18-44 45-54 55-64 65+ 50 101+ INIT MN MN INIT NONE ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----400 100% 351 88%

TOTAL CONFIDENT

372 93%

TOTAL NOT CONFIDENT

21 5%

GROSS REVENUES (D/S) -------------------INCREASE

STAY THE SAME

INCREASE

STAY THE SAME

INCREASE

STAY THE SAME MN BIZ CLIMATE (D/S) -------------------WORSE

BASE=TOTAL SAMPLE

INCREASE

DECREASE STAY THE SAME DIFFICULTY ATTRACTING CANDIDATES (D/S) --------------------VERY/SOMEWHAT

NOT TOO/NOT AT ALL STRUCTURED LEADERSHIP PROGRAM (D/S) --------------------YES

NO LEADERSHIP INVESTMENT (D/S) --------------------MAJOR

MODEST LITTLE

3 3%

67 84%

73 92%

6 8%

71 18%

60 85%

64 90% 4 5%

319 80%

277 87%

295 92%

17 5%

81 20%

74 92%

78 96%

3 4%

62 16%

55 89%

58 93%

3 4%

82 20%

74 90% 76 94%

3 4%

154 39%

87 22%

148 96%

76 88%

143 93% 5 3%

67 78%

9 10%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

296 93%

42 98%

50 92%

91 91%

47 93%

94 94%

204 94%

278 87% 18 6%

41 96% 1 2%

47 88% 2 4%

82 82%

9 9%

44 87%

3 5%

89 89%

6 6%

195 89%

9 4%

169 53%

44 54%

42 67%

41 50%

88 57%

39 45%

168 53%

22 52%

32 60%

45 45%

27 53%

43 43%

119 55%

22 6%

16 7%

5 4%

6 6%

8 8%

4 5%

1 1%

20 6%

2 2%

1 1%

7 8%

7 5%

7 8%

20 6%

3 6%

1 1%

7 7%

4 7%

9 9%

11 5%

116 55% 71 34%

146 36%

63 30%

36 9%

20 10%

84 39%

97 46%

95 65% 40 27%

65 61% 31 29%

69 47%

37 34%

7 5%

13 12%

76 52%

57 39%

49 46%

37 17%

21 14%

15 14%

208 52%

108 51%

181 45%

92 44%

150 37%

85 58%

33 47%

145 45%

6 7%

4 5%

47 51%

62 15%

101 32%

7 7%

40 50%

33 41%

33 46%

8 9%

20 26%

16 23%

18 20%

8 11%

7 9%

29 36%

42 53%

35 16%

19 13%

14 13%

13 14%

10 13%

5 7%

81 38%

53 36%

45 42% 47 43%

49 54% 27 29%

37 47% 30 37%

25 35%

106 33%

37 42%

147 46%

29 9%

6 8%

5 8%

6 7%

14 9%

9 10%

136 43%

36 45% 36 44%

28 45% 27 43%

40 49% 35 42%

70 45% 66 43%

46 14%

16 19%

9 15%

15 18%

27 18%

55 17%

7 9%

10 17%

15 19%

95 30%

27 33%

29 46%

48 15%

12 14%

3 4%

121 38%

23 28%

48 59% 39 48% 29 36%

20 32%

31 50% 31 50% 26 42%

188 59%

31 36%

28 33%

143 45%

34 48%

47 30%

45 52%

55 36%

39 55%

26 33%

26 31%

95 62%

34 42%

160 50%

36 40%

16 26%

48 58%

23 37%

41 57%

30 28%

28 35%

43 68%

30 37%

101 32%

51 35%

46 57%

116 36%

23 32%

57 27%

70 48%

190 60%

24 33%

29 41%

53 49%

21 20%

23 29%

45 63%

34 42%

46 50%

26 29%

16 11%

50 63%

39 42%

37 34%

26 12%

37 25%

25 27%

39 43%

61 15%

63 30%

58 63%

43 40%

38 44%

25 58%

12 29%

33 61%

19 35%

52 52%

39 39%

31 61%

14 28%

52 52%

39 39%

130 60%

69 32%

113 35%

16 38%

22 41%

34 34%

16 31%

33 33%

75 34%

34 11%

2 5%

2 3%

9 9%

6 12%

12 12%

22 10%

133 42%

19 43%

24 44%

43 43%

21 48%

26 49%

45 45%

20 46%

13 24%

37 37%

20 13%

15 18%

50 16%

6 14%

8 15%

15 15%

15 29%

18 18%

28 13%

30 37%

45 29%

19 22%

103 32%

11 26%

23 42%

13 13%

13 25%

23 23%

71 33%

13 16%

23 15%

17 20%

47 15%

8 20%

6 11%

25 25%

7 14%

17 17%

30 14%

37 45%

43 53%

26 31%

M E E T I N G S T R E E T

84 55%

68 44%

58 38%

89 28%

49 57%

178 56%

36 41%

150 47%

31 36%

115 36%

R E S E A R C H

15 36%

19 45%

13 31%

33 60%

29 53%

18 33%

46 46% 38 38%

34 34%

11 22%

25 49% 20 39%

22 44%

11 11%

92 42%

14 32%

19 22%

-4 -7%

41 41%

96 44%

38 12%

47 30%

23 23%

23 46%

45 45%

4 4%

30 36%

5 9%

22 42%

29 29%

51 51% 40 40%

42 42%

44 20%

72 33%

112 51% 101 46%

82 37%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 2-1 Summary of Key Workforce Data

EMPLOYEE WAGES 2018 (D/S) -------------------------

89 97%

79 20%

44 62%

59 15%

SAME

4 4%

86 94%

46 58%

122 30%

BETTER

103 95%

92 23%

50 55%

123 31%

DECREASE

7 5%

98 91%

59 55%

172 43%

CAPITAL EXPEND (D/S) --------------------

12 5%

136 94%

108 27%

89 61%

181 45%

DECREASE

198 93%

145 36%

129 89%

100 47%

129 32%

PROFITABLILITY (D/S) --------------------

212 53%

186 88%

213 53%

236 59%

DECREASE

BANNER 1

PAGE 7

PAGE 8

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

233 58%

88 63%

52 60%

20 42%

25 58%

47 57%

141 62%

92 53%

72 43%

67 62%

79 78%

96 47%

78 66%

58 74%

45 49%

68 70%

44 72%

25 55%

46 46%

186 62%

78 50%

68 43%

229 57% 3 1%

148 37%

88 63%

49 35%

51 58%

2 2%

28 33%

20 42%

27 56%

24 55%

1 2%

12 28%

46 56%

1 1%

32 39%

139 61%

2 1%

77 34%

90 52%

2 1%

71 41%

69 42%

3 2%

83 50%

67 62%

79 78%

38 35%

21 20%

93 46% 3 2%

91 45%

78 66%

58 74%

37 32%

19 24%

43 47% 2 2%

44 48%

68 70% -

24 25%

44 72% -

14 23%

25 55% -

19 41%

44 45% 2 2%

47 47%

185 62% 2 1%

101 34%

77 49% 1 1%

33 8%

77 19%

70 66%

22 66%

47 61%

33 31%

10 31%

28 36%

70 66% -

21 63% 1 3%

47 61% -

182 46%

63 45%

25 28%

21 43%

28 66%

45 55%

88 39%

94 55%

59 35%

55 51%

69 68%

68 33%

59 50%

55 69%

46 51%

42 43%

32 53%

22 48%

27 27%

154 52%

60 39%

53 50%

23 69%

37 47%

285 71%

99 70%

55 63%

33 69%

35 82%

63 78%

154 67%

132 76%

109 66%

80 74%

85 84%

131 65%

87 74%

66 84%

67 74%

67 69%

45 75%

34 73%

61 61%

223 75%

106 67%

78 74%

28 84%

56 72%

103 26%

36 25%

30 35%

13 26%

7 16%

18 22%

66 29%

37 22%

51 30%

25 23%

16 16%

64 31%

28 24%

11 14%

21 23%

25 26%

14 23%

12 25%

34 34%

69 23%

45 29%

25 24%

5 16%

19 25%

-205 -51%

-74 -52%

-55 -63%

-21 -44%

-16 -38%

-39 -48%

-128 -56%

-77 -45%

-118 -71%

-63 -58%

-15 -15%

-133 -66%

-59 -50%

-12 -15%

-51 -56%

-56 -57%

-29 -48%

-27 -58%

-69 -70%

-135 -45%

-85 -54%

-74 -69%

-10 -30%

-28 -37%

92 23%

33 24%

13 15%

13 27%

13 31%

20 24%

46 20%

46 27%

22 13%

21 20%

41 41%

32 16%

29 24%

31 40%

19 21%

20 20%

15 25%

10 21%

15 15%

78 26%

34 22%

15 14%

12 35%

25 32%

-1 -8%

-8 -42%

-23 -50%

-17 -37%

-14 -66%

-11 -50%

-9 -23%

-23 -71%

-6 -21%

-11 -37%

-6 -32%

-5 -27%

-7 -49%

-4 -39%

-7 -46%

-34 -43%

-17 -48%

-7 -47%

-2 -21%

-13 -53%

3 21%

1 5%

3 6%

5 10%

1 4%

1 5%

5 13%

2 6%

4 13%

2 6%

5 23%

1 6%

1 11%

2 13%

5 7%

4 11%

2 13%

1 8%

298 74%

107 76%

68 78%

34 71%

-40 -44%

-17 -51%

-6 -48%

-8 -60%

7 8%

2 5%

1 7%

1 8%

34 37%

48 52%

13 38%

19 56%

5 38%

7 55%

2 16%

9 68%

30 69%

7 51%

4 29%

59 73%

7 37%

9 47%

175 77%

18 38%

26 56%

123 71%

16 35%

22 48%

140 84%

6 26%

15 70%

84 78%

9 41%

12 54%

110

M E E T I N G S T R E E T

56 56%

18 45%

15 36%

165 82%

6 18%

25 76%

88 75%

13 46%

10 34%

R E S E A R C H

44 55%

15 47%

13 42%

71 78%

11 58%

6 32%

75 77%

5 27%

10 50%

44 73%

6 38%

8 55%

36 79%

4 40%

5 50%

84 84%

4 27%

9 59%

213 71%

30 38%

39 50%

120 76%

11 31%

20 59%

89 84%

4 28%

9 59%

21 65%

6 50% 3 29%

53 68%

10 40% 13 53%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 2-2 Summary of Key Workforce Data BANNER 2

BASE=TOTAL SAMPLE EMPLOYEE WAGES 2018 (D/S) -------------------------

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

INCREASE

DECREASE

DIFFICULTY ATTRACTING CANDIDATES (D/S) --------------------VERY/SOMEWHAT

NOT TOO/NOT AT ALL

89 52%

226 61%

148 37%

55 28%

76 44%

132 35% 168 45%

14 65%

75 38%

98 63%

6 28%

76 42%

33 56%

70 47%

107 46%

12 54%

65 50%

266 71%

17 80%

135 69%

125 81%

13 61%

125 69%

46 77%

109 73%

168 71%

17 77%

96 74%

2 1%

92 46%

76 44%

285 71%

144 72%

121 71%

-205 -51%

YES

1 1%

182 46%

103 26%

92 23%

NO LEADERSHIP INVESTMENT (D/S) ---------------------

138 68%

3 1%

STAY THE SAME

STRUCTURED LEADERSHIP PROGRAM (D/S) ---------------------

233 58%

87 51%

298 74%

52 26%

-88 -44% 55 28%

143 71%

45 26%

-102 -59% 32 18%

133 78%

224 60% 3 1%

98 26%

DECREASE STAY THE SAME DIFFICULTY ATTRACTING CANDIDATES (D/S) --------------------VERY/SOMEWHAT

NOT TOO/NOT AT ALL STRUCTURED LEADERSHIP PROGRAM (D/S) --------------------YES NO LEADERSHIP INVESTMENT (D/S) --------------------MAJOR

MODEST LITTLE

129 66%

82 53%

13 62%

58 30%

1 3%

3 14%

-190 -51%

-8 -39%

87 23%

5 26%

277 74%

14 65%

2 1%

59 30%

-82 -42% 54 28%

136 70%

1 1%

67 43%

27 17%

21 5%

181 45%

59 15%

150 37%

9 42%

113 62%

28 48%

85 57%

9 42%

61 34%

26 44%

58 39%

9 42%

7 33%

-88 -57%

-10 -49%

32 21%

5 23%

120 78%

15 72%

112 62% 1 -

49 27%

27 46% 1 1%

13 21%

-81 -45%

-40 -67%

48 26%

9 15%

129 71%

83 55%

48 82%

2 1%

38 26%

-80 -54% 33 22%

113 76%

236 59%

22 6%

129 32%

156 66%

6 29%

62 48%

71 30%

12 55%

63 49%

155 66% 1 -

61 26%

6 26% 1 3%

5 23%

-113 -48%

-8 -38%

59 25%

7 30%

172 73%

15 67%

61 48% 1 1%

31 24%

-76 -59% 24 19%

100 77%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

119 66%

9 25%

98 57%

87 71%

32 51%

110 53%

24 49%

57 32%

79 44%

21 59%

16 44%

68 39%

35 28%

25 41%

85 41%

24 49%

128 71%

26 72%

129 75%

92 75%

48 77%

144 69%

118 65% 1 1%

49 27%

7 21% 2 5%

10 28%

98 57% 1 -

90 53%

39 23%

87 71% -

61 50%

30 25%

29 47% 2 4%

33 54%

14 23%

109 53% 1 -

90 43%

54 26%

24 49% -

34 69%

182 78%

1 18%

97 66%

13 27%

-54 -44%

-22 -36%

-124 -60%

-33 -68%

-97 -41%

-1 -35%

-97 -66%

47 26%

7 18%

37 22%

33 27%

20 32%

39 19%

7 15%

66 29%

1 24%

24 16%

-26 -1 -39% -100%

-13 -54%

130 72%

27 77%

130 76%

87 71%

42 67%

164 79%

41 83%

-16 -68%

-14 -30%

-5 -72%

-20 -54%

-8 -25%

-9 -45%

-23 -59%

-6 -76%

7 8%

6 12%

1 3%

7 9%

7 12%

1 19%

1 2%

6 17%

7 13%

6 12%

2 5%

5 14%

3 13%

48 52%

24 43%

23 74%

47 54%

1 17%

24 45%

19 60%

3 62%

25 53%

2 22%

10 31%

7 78%

15 45%

25 42% 25 42%

3 42% 4 58%

6 26% 16 68%

20 42% 20 42%

2 28% 5 72%

12 33% 22 58%

13 39% 13 40%

6 28% 12 59%

15 39% 23 59%

2 24% 6 76%

163 70%

6 10%

25 38%

32 49%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

92 23%

298 74%

202 50%

151 38%

119 30%

66 72%

163 55%

138 68%

94 62%

85 72%

229 57%

66 71%

3 1%

1 1%

233 58%

161 54%

2 1%

138 68%

93 62%

1 1%

95 24%

101 25%

274 68%

170 42%

169 42%

171 43%

67 70%

39 38%

151 55%

101 59%

91 54%

105 62%

85 72%

67 70%

2 2%

147 54%

3 1%

98 57%

88 52%

3 2%

146 36%

147 37%

47 66%

99 67%

108 74%

92 62%

3 2%

74 18%

73 18%

196 49%

130 66%

98 50%

32 44%

30 41%

33 46%

129 66%

1 -

32 67%

32 44%

30 41%

33 46%

96 49% 3 1%

52 34%

31 26%

67 57%

55 57%

52 52%

37 37%

109 40% 128 47%

79 47%

86 51%

95 56%

43 60%

96 65%

87 60%

54 37%

87 59%

13 29%

37 52%

40 54%

36 49%

59 30%

87 44%

285 71%

66 71%

212 71%

157 78%

115 76%

92 78%

74 78%

68 67%

197 72%

122 72%

126 75%

130 76%

57 79%

121 82%

116 80%

117 79%

28 59%

37 52%

36 49%

34 46%

137 70%

141 72%

92 -298 100% -100%

-96 -48%

-62 -41%

-24 -20%

-25 -26%

-60 -59%

-161 -59%

-94 -55%

-93 -55%

-96 -56%

-22 -31%

-60 -41%

-66 -46%

-69 -47%

-16 -35%

-43 -59%

-37 -51%

-32 -43%

-49 -25%

-153 -78%

50 25%

44 29%

46 39%

35 36%

20 19%

53 19%

36 21%

35 20%

23 33%

42 29%

39 27%

38 26%

15 31%

14 19%

17 22%

20 27%

70 36%

20 10%

74 25%

35 23%

25 21%

19 20%

30 30%

69 25%

43 25%

40 24%

35 21%

14 19%

25 17%

29 20%

30 20%

10 21%

18 37%

5 6%

33 45%

2 3%

34 46%

-3 -3%

36 50%

85 43%

53 27%

91 46%

50 25%

92 23%

92 100%

-40 -44%

298 100% -

-18 -37%

-20 -46%

-18 -40%

-17 -48%

-14 -71%

-25 -47%

-17 -47%

-19 -52%

-11 -31%

-10 -43%

-13 -31%

-11 -27%

-19 -51%

-4 -30%

-10 -72%

-10 -63%

-11 -54%

-28 -40%

-11 -54%

7 8%

4 7%

1 2%

2 4%

1 3%

3 6%

2 5%

3 8%

2 8%

4 9%

3 7%

2 5%

3 18%

2 14%

3 16%

3 15%

6 8%

2 9%

48 52%

7 48%

12 86%

13 79%

13 69%

298 74%

34 37% 48 52%

34 37%

41 20%

37 25%

72 18%

32 67%

59 29%

27 29%

48 32%

47 12%

92 62%

116 57%

103 26%

24 34%

108 74%

139 47%

-205 -51%

56 33%

99 67%

121 41%

80 53%

68 40%

147 37%

47 66%

24 25%

39 42%

59 35%

71 18%

102 60%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

148 37%

182 46%

26 27%

37 36%

146 73%

21 43% 22 44%

106 70%

19 43% 21 48%

70 59%

21 45% 20 44%

60 63%

13 37% 18 51%

79 79%

6 29% 14 71%

214 78%

20 38% 28 52%

130 76%

14 40%

19 52%

129 76%

13 35%

21 57%

M E E T I N G S T R E E T

111

131 77%

17 48%

13 38%

46 64%

9 38%

12 51%

102 70%

20 47%

17 39%

R E S E A R C H

105 72%

21 53%

13 34%

2 59%

1 100%

121 81%

1 4%

9 37%

14 59%

PAGE 10

LEADERSHIP M E E T I N G SSIGNIF T R E IMPACT E T R E S E A R SOME C H IMPACT DEVLP PROG USING AUTOMATION OF DEPARTURE OF DEPARTURE =========== ============================== ======================= ======================= PRODNOT SKILL SKILL UCTIV QUAL ENHAN CONS CEO/ MGMT MGR/ -ED CEO/ MGMT MGR/ -ED TOTAL YES NO -ITY -ITY SAFETY -CING AUTO OWNER TEAM SPV WORK OWNER TEAM SPV WORK ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----400 100%

47 32%

-93 -54%

-4 -58%

21 44%

3 82%

-21 -58%

-18 -30%

1 19%

47 20%

50 34%

-83 -46%

-9 -28%

12 36%

-2 -65%

-7 -78%

21 40%

135 58%

-24 -51%

5 83%

21 42%

-2 -42%

29 34%

233 100%

148 100%

-19 -60%

7 23%

148 37%

-18 -33%

22 40%

3 1%

233 -3 100% -100% 3 100%

-1 -17%

34 37%

233 58%

-40 -45%

Table 2-3 Summary of Key Workforce Data

INCREASE

6 27%

82 53%

-22 -71%

LITTLE

EMPLOYEE WAGES 2018 (D/S) -------------------------

155 39%

127 65%

-17 -31%

MODEST

BASE=TOTAL SAMPLE

196 49%

5 24%

-40 -44%

MAJOR

BANNER 3

21 5%

171 43%

136 68%

372 93%

201 50%

229 57%

PAGE 9

108 73%

14 36%

21 55%

31 66%

5 34%

56 78%

54 73%

1 5%

51 70%

3 16%

118 61%

27 39%

34 48%

173 88%

6 28%

13 63%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 2-4 Summary of Key Workforce Data BANNER 4

BASE=TOTAL SAMPLE EMPLOYEE WAGES 2018 (D/S) -------------------------

INCREASE

233 58%

DECREASE

3 1%

STAY THE SAME

148 37%

DIFFICULTY ATTRACTING CANDIDATES (D/S) ---------------------

285 71%

103 26%

55 63%

182 64%

47 46%

55 63% 1 1%

29 33%

181 63% 1 -

97 34%

43 11%

144 36%

83 21%

42 11%

27 64%

100 69%

38 46%

47 46%

13 31%

42 29% 81 56%

40 48%

43 52%

27 64%

5 67%

48 39%

56 60%

81 55%

1 14%

130 61%

104 69%

65 51%

97 78%

73 68%

137 72%

80 66%

37 32%

40 52%

11 23%

36 84%

112 78%

62 74%

34 81%

6 84%

84 69%

73 78%

114 77%

6 57%

171 80%

127 84%

96 75%

110 88%

88 82%

164 86%

98 82%

74 65%

58 75%

27 58%

44 43% 3 3%

285 71%

87 100%

285 100%

-205 -51%

-46 -52%

-147 -51%

-47 -46%

-17 -41%

92 23%

20 23%

66 23%

27 26%

13 30%

103 26%

298 74%

-40 -44%

MAJOR

7 8%

MODEST

34 37%

LITTLE

48 52%

66 75%

-16 -78% -

4 22% 16 78%

212 74%

103 100%

BASE=TOTAL SAMPLE

INCREASE DECREASE

STAY THE SAME DIFFICULTY ATTRACTING CANDIDATES (D/S) --------------------VERY/SOMEWHAT

NOT TOO/NOT AT ALL STRUCTURED LEADERSHIP PROGRAM (D/S) --------------------YES NO LEADERSHIP INVESTMENT (D/S) --------------------MAJOR

MODEST LITTLE

29 68%

7 16%

-27 -41%

74 71%

-14 -51%

30 70%

3 4%

5 18%

2 15%

30 45%

18 69%

2 17%

31 47%

3 10%

-2%

9 68%

99 69%

1 1%

31 22%

38 45% 1 1%

19 22%

7 2%

122 31%

93 23%

149 37%

26 60%

4 61%

70 57%

59 64%

89 60%

6 59%

17 40%

3 39%

47 39%

31 33%

56 38%

4 41%

26 60% -

7 17%

4 61% -

1 16%

68 55%

58 63%

2 2%

36 29%

1 1%

17 18%

-76 -52%

-43 -52%

-19 -44%

-3 -39%

-61 -50%

-43 -47%

33 23%

17 21%

12 28%

2 30%

29 24%

24 26%

109 76%

-16 -48% 2 6%

12 36% 18 54%

60 73%

30 72%

-11 -67%

-3 -24%

3 22%

6 33% 11 67%

3 24%

5 46%

5 70%

91 74%

67 73%

-1 -46%

-13 -44%

-8 -33%

3 9%

3 11%

16 53%

11 44%

1 54%

1 46%

9 30%

11 44%

88 59% 1 -

33 22%

10 2%

6 59% -

4 43%

-82 -55%

-4 -39%

31 21%

3 31%

112 75%

-16 -51% 2 7%

11 36%

18 57%

7 69%

-2 -73% -

1 27%

2 73%

214 54%

133 62% 134 62%

1 -

76 35%

41 19%

-103 -48% 54 25%

157 73%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

116 76%

88 69%

86 69%

78 73%

134 70%

75 62%

59 52%

36 24%

39 30%

39 31%

26 24%

53 28%

45 37%

49 43%

116 76% -

23 15%

88 69% -

30 24%

86 69%

14 11%

78 73% -

15 14%

134 70% -

26 14%

75 62% -

19 16%

212 53%

145 36%

108 27%

115 54%

97 66%

63 58%

229 57%

113 53%

3 1%

2 1%

233 58%

148 37%

96 66%

1 1%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

52 64%

95 62%

60 56%

53 58%

46 57%

45 64%

186 58%

44 54%

35 55%

52 64%

3 2%

1 1%

2 1%

1 1%

2 3%

53 58%

47 59%

45 64%

188 59%

45 55%

36 58%

-56 -53%

-74 -39%

-51 -42%

-77 -67%

-44 -57%

-37 -79%

39 26%

38 30%

34 27%

25 23%

56 29%

34 28%

16 14%

16 20%

5 10%

110 73%

86 67%

89 71%

81 76%

130 68%

84 70%

-9 -56%

-2 -14%

-2 -37%

5 9%

5 12%

1 3%

4 15%

5 8%

3 8%

2 11%

1 22%

9 56%

4 25%

3 59%

23 43%

26 47%

17 44%

15 39%

16 41%

17 43%

20 59% 13 38%

14 57% 7 28%

24 42% 26 46%

12 35% 18 53%

51 10%

100 19%

218 42%

28 52%

51 51%

28 56%

63 63%

135 62%

3 1%

1 1%

1 2%

2 2%

1 -

34 79%

46 57%

75 49%

33 38%

28 32%

128 40% 126 40%

37 87%

26 49%

47 47%

37 72%

62 62%

81 37%

285 71%

150 71%

112 77%

72 67%

68 75%

56 71%

60 85%

231 72%

54 67%

44 71%

63 77%

114 74%

54 63%

218 68%

40 93%

39 73%

70 70%

43 85%

80 80%

145 67%

-205 -51%

-123 -58%

-79 -55%

-50 -46%

-41 -44%

-37 -47%

-37 -52%

-162 -51%

-43 -53%

-29 -47%

-28 -34%

-96 -62%

-43 -50%

-192 -60%

1 3%

-19 -35%

-28 -28%

-23 -45%

-36 -36%

-125 -58%

92 23%

42 20%

31 21%

28 26%

24 26%

20 25%

17 24%

74 23%

19 23%

17 27%

26 32%

27 18%

20 23%

61 19%

22 51%

17 31%

35 35%

14 28%

31 31%

43 20%

298 74%

165 78%

110 76%

78 72%

65 71%

57 72%

9 13%

54 76%

77 24%

236 74%

26 32%

61 76%

18 29%

46 73%

16 20%

54 66%

38 25%

123 80%

26 30%

63 73%

92 29%

253 79%

3 7%

20 47%

13 25%

36 66%

23 23%

63 63%

7 13%

37 72%

32 32%

136 62%

26 42%

20 25%

16 31%

65 65%

28 35%

22 24%

43 43%

29 58%

33 40%

31 29%

23 43%

52 52%

116 36%

26 18%

9 21%

29 53%

24 33%

53 25%

57 37%

100 19%

34 79%

32 40%

103 26%

27 33%

54 10%

170 53%

35 38%

154 48%

23 37%

43 11%

19 19%

67 67%

74 34%

64 30%

169 77%

-40 -44%

-23 -54%

-6 -20%

-13 -46%

-15 -63%

-7 -35%

-6 -33%

-30 -40%

-11 -57%

-8 -51%

-14 -56%

-15 -55%

-4 -19%

-29 -47%

-9 -39%

-10 -60%

-14 -39%

-1 -7%

-9 -28%

-22 -51%

7 8%

1 2%

4 12%

3 10%

1 3%

1 5%

2 11%

7 9%

1 5%

2 8%

1 3%

3 13%

6 9%

2 6%

3 19%

5 16%

3 6%

24 56%

10 33%

16 56%

8 40%

8 44%

16 58%

6 33%

16 45%

4 27%

14 45%

34 37%

48 52%

16 38%

14 45%

8 30%

7 27%

16 66%

11 55%

6 37%

28 38%

36 49%

6 33%

11 62%

4 25%

9 56%

7 25%

16 64%

M E E T I N G S T R E E T

112

10 39%

11 54%

19 31%

35 57%

R E S E A R C H

13 61%

9 39%

7 44%

10 64%

1 19%

PAGE 12

39 36%

51 72%

41 90%

-15 -44%

40 28%

37 46%

59 77%

-21 -37%

97 46%

46 51%

93 82%

-3 -14%

84 40%

41 38%

16 36%

-55 -44%

182 46%

86 59%

1 2%

27 59%

-12 -35%

174 54%

1 1%

18 23%

18 39%

-12 -31%

42 49%

1 -

31 40%

17 37%

-10 -27%

320 80%

41 48%

38 33%

43 56%

-21 -39%

87 22%

94 61%

2 1%

43 56%

46 12%

-48 -37%

GROWTH DRIVERS COMBINED INITIATIVE REGIONS M E E TGENDER I N G S T R E E T AGE R E S E A R C EMPLOYEES H ==================================== =========== ======================= =========== ============================= NORTH SW/ DEV-LAND WEST NEW MAX NEW ELIM STRTGY ELOP UNDER IF /NW SOUTH CENT TOTAL CUST PROD PROD WASTE PLAN MGRS MEN WOMEN 18-44 45-54 55-64 65+ 50 101+ INIT MN MN INIT NONE ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----400 100%

57 50%

77 19%

-71 -47%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 2-5 Summary of Key Workforce Data

EMPLOYEE WAGES 2018 (D/S) -------------------------

285 -103 100% -100%

YES

BANNER 5

27 64%

87 100%

VERY/SOMEWHAT

LEADERSHIP INVESTMENT (D/S) ---------------------

87 22%

182 46%

NOT TOO/NOT AT ALL STRUCTURED LEADERSHIP PROGRAM (D/S) ---------------------

PAGE 11

6 35%

10 60%

16 46%

8 54%

10 31%

16 37%

25 57%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 3-1 QUESTION 1: From a financial perspective, how do you feel right now about the future for your company? BANNER 1

BASE=TOTAL SAMPLE **D/S (CONFIDENT - NOT CONFIDENT) TOTAL CONFIDENT ---------------

TOTAL NOT CONFIDENT ------------------VERY CONFIDENT

SOMEWHAT CONFIDENT NOT VERY CONFIDENT NOT AT ALL CONFIDENT DON'T KNOW/UNSURE REFUSED

PAGE 13

140 35%

372 93%

130 92%

83 95%

44 92%

201 50%

70 50%

44 51%

19 5%

6 5%

2 3%

351 88% 21 5%

171 43% 2 1%

3 1%

4 1%

123 87% 7 5%

60 43%

87 22%

80 91% 3 4%

39 44%

1 1%

2 2%

1 1%

48 12%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

39 91%

76 94%

213 93%

159 93%

152 91%

103 95%

96 95%

185 92%

111 94%

75 95%

82 90%

92 95%

56 93%

45 97%

93 93%

23 49%

26 60%

38 46%

114 50%

87 50%

67 40%

66 61%

55 55%

86 43%

70 60%

45 56%

44 48%

53 54%

29 49%

23 49%

57 58%

4 8%

3 6%

4 4%

9 4%

10 6%

40 84% 4 8%

21 43% -

43 11%

36 85% 3 6%

13 31% -

1 2%

73 89% 4 4%

39 48%

202 89% 11 5%

99 43%

2 1%

3 1%

2 2%

1 -

149 87% 10 6%

142 85% 10 6%

98 91% 4 4%

92 91%

5 5%

173 86%

12 6%

105 89% 6 5%

73 92%

73 80%

3 3%

9 10%

89 92% 3 3%

53 89% 2 4%

44 95% 1 2%

87 87% 6 6%

299 75%

157 39%

107 27%

279 93%

144 92%

100 94%

144 48%

72 46%

48 45%

10 6%

5 5%

264 88% 15 5%

135 86% 10 6%

73 42%

85 51%

36 34%

41 41%

99 49%

41 35%

31 39%

38 42%

40 41%

26 44%

22 47%

35 36%

135 45%

72 46%

1 1%

1 -

1 1%

2 2%

1 1%

2 1%

1 1%

9 5%

3 2%

2 1%

4 4% -

11 6%

3 1%

2 1%

6 5% -

2 2% -

8 9% -

2 2%

1 1% 1 1%

2 4%

1 1% 1 2%

1 2%

5 5% -

14 5%

3 1% 3 1%

1 1% 2 1%

33 8%

77 19%

32 97%

71 91%

94 88%

31 94%

6 6%

1 3%

52 49%

47 60%

3 4%

10 29% 1 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 3-2 QUESTION 1: From a financial perspective, how do you feel right now about the future for your company? BANNER 2

BASE=TOTAL SAMPLE **D/S (CONFIDENT - NOT CONFIDENT)

TOTAL CONFIDENT ---------------

TOTAL NOT CONFIDENT ------------------VERY CONFIDENT

SOMEWHAT CONFIDENT NOT VERY CONFIDENT NOT AT ALL CONFIDENT DON'T KNOW/UNSURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 351 88%

201 50%

201 100%

372 93%

201 100%

201 50%

201 100%

19 5%

21 5%

171 43% 2 1%

3 1%

4 1%

171 43%

171 100%

372 93%

21 5%

372 100%

129 32%

181 45%

191 98%

175 96%

131 67%

140 16 170 51 142 228 13 121 91% 76% 94% 87% 95% 97% 60% 94% M12 E E T 5 I N G S7T R E7E T 6R E S5E A R7C H 6 8% 24% 4% 12% 4% 2% 32% 5%

60 31%

88 57%

201 54%

2 10%

19 90% -

2 1%

129 83%

21 100%

171 46%

189 97%

171 100%

BASE=TOTAL SAMPLE

2 1%

1 -

52 34%

21 5%

11 52%

6 29%

181 45%

164 90%

101 56%

59 15%

45 75%

5 8%

6 4%

2 10%

2 3%

3 2%

7 4%

2 1%

223 95%

143 61%

29 49%

3 14%

136 91%

236 59%

73 49%

70 38%

12 8%

150 37%

22 38%

10 47%

**D/S (CONFIDENT - NOT CONFIDENT)

TOTAL CONFIDENT ---------------

TOTAL NOT CONFIDENT ------------------VERY CONFIDENT

SOMEWHAT CONFIDENT NOT VERY CONFIDENT NOT AT ALL CONFIDENT DON'T KNOW/UNSURE REFUSED

92 23%

351 88%

81 88%

21 5%

5 6%

372 93%

87 94%

201 50%

55 60%

19 5%

5 5%

171 43%

298 74%

263 89% 277 93%

14 5%

119 30%

183 91%

137 90%

104 88%

8 4%

7 4%

7 6%

191 94%

143 95%

111 93%

105 52%

76 50%

61 52%

14 5%

7 3%

7 4%

7 6%

133 45%

2 1%

1 1%

4 1%

151 38%

143 48%

32 34%

3 1%

202 50%

3 1%

4 1%

86 43%

1 -

3 2%

68 45%

1 1%

3 3%

PAGE 14

1 1%

69 46% -

2 1%

22 6%

6 27%

114 89%

36 9%

170 94%

16 44%

5 3%

9 26%

172 43%

162 94%

123 31%

116 94%

48 78%

3 2%

6 10%

25 69%

166 97%

119 97%

4 2%

62 15%

208 52%

181 87%

48 98%

11 5%

54 88%

192 93%

2 9%

49 38%

108 60%

7 20%

80 47%

68 55%

25 41%

104 50%

5 2%

6 28%

5 4%

5 3%

7 20%

4 2%

3 2%

5 8%

10 5%

1 4%

1 2%

85 36% -

2 1%

11 51% 1 4%

1 4%

72 56% 1 1%

2 1%

66 37% -

2 1%

18 50% 2 6%

1 3%

86 50% -

2 1%

51 41% -

1 1%

29 47%

88 42%

1 1%

3 2%

2 3%

49 12%

1 -

233 58%

2 65%

6 2%

1 18%

48 98%

226 97%

21 44% -

27 55% -

1 2% -

50 42% -

1 1%

95 24%

101 25%

90 94%

91 90%

86 90%

81 80%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

240 88%

255 93%

170 42%

158 93%

163 96%

169 42%

153 91%

160 95%

171 43%

151 88%

159 93%

63 89%

67 94%

147 37%

128 87%

138 93%

4 10 15 5 7 9 4 10 5% 10% 5% 3% 4% 5% 5% 7% M E E T I N G S T R E E T R E S E A R C H 54 48 134 91 90 96 41 79 57% 47% 49% 54% 53% 56% 58% 54%

146 36%

130 89%

132 89%

138 59%

1 30%

55 37%

6 2%

1 18%

12 8%

89 38% -

1 -

147 37%

135 91%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

42 88%

82 57%

65 44%

25 52%

27 38%

28 37%

38 53%

113 58%

87 44%

7 5%

5 4%

2 4%

5 7%

5 6%

6 3%

12 6%

1 1%

1 -

1 1%

1 2%

1 1%

1 1% -

1 -

4 1%

1 -

1 1%

113

1 -

1 1%

1 -

2 1%

1 1%

77 52%

3 6%

58 40% 9 6%

55 38%

6 4%

25 36% 4 5%

166 84%

187 95%

63 37% 9 5%

180 92%

66 90%

70 41% 7 4%

179 91%

61 84%

66 89%

72 42% 5 3%

196 49%

64 89%

121 44% 13 5%

61 83%

196 49%

44 94%

43 42% 9 8%

59 82%

73 18%

141 96%

36 37% 4 5%

119 80%

3 82%

138 95%

8 5%

148 37%

2 52%

13 9%

76 51%

1 1%

2 1%

PAGE 15

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

3 1%

221 95%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 3-3 QUESTION 1: From a financial perspective, how do you feel right now about the future for your company? BANNER 3

24 31%

196 49%

372 -21 100% -100%

3 4%

22 68%

1 1%

67 87%

20 42%

5 7%

36 50%

2 2%

5 6%

38 52%

2 2%

5 6%

27 37%

2 2%

1 1%

6 3%

73 37%

3 1%

14 7%

92 47%

1 1%

3 1% 1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 3-4 QUESTION 1: From a financial perspective, how do you feel right now about the future for your company?

BANNER 4

BASE=TOTAL SAMPLE **D/S (CONFIDENT - NOT CONFIDENT) TOTAL CONFIDENT ---------------

TOTAL NOT CONFIDENT ------------------VERY CONFIDENT

SOMEWHAT CONFIDENT NOT VERY CONFIDENT NOT AT ALL CONFIDENT DON'T KNOW/UNSURE REFUSED

PAGE 16

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

372 93%

80 92%

266 93%

98 95%

41 96%

137 95%

76 91%

39 91%

351 88% 21 5%

77 88% 4 4%

201 50%

47 54%

19 5%

3 3%

171 43% 2 1%

3 1%

4 1%

249 87% 17 6%

3 3%

39 92% 2 4%

130 90% 7 5%

74 89% 2 2%

39 46%

24 57%

15 5%

3 3%

1 2%

7 5%

2 2%

1 1%

2 1%

2 2%

2 1%

1 -

1 2%

1 1%

2 2%

64 45% -

1 1% -

37 45% -

1 1%

4 5%

6 87%

117 96%

86 93%

138 93%

1 13%

72 50%

12 29%

149 37%

4 9%

29 67%

45 44%

93 23%

5 74%

52 51%

121 43%

122 31%

35 82%

144 51%

34 39%

1 1%

95 92%

7 2%

112 91% 5 4%

81 87% 5 6%

4 9%

1 13%

4 4%

5 6%

7 4%

1 1%

1 1% -

125 31%

106 27%

191 48%

120 30%

10 100%

200 93%

145 96%

121 94%

116 93%

99 93%

183 96%

115 95%

68 45%

43 46%

128 32%

7 4%

43 47%

46 38%

151 38%

10 100%

71 58%

5 71%

214 54%

131 88%

1 16%

14 34%

10 2%

70 47% -

2 1%

3 2%

187 87% 13 6%

139 92% 5 4%

114 89% 7 6%

109 87% 7 6%

94 89% 4 4%

177 93% 6 3%

114 28%

77 19%

46 12%

106 94%

67 87%

42 91%

37 48%

17 36%

110 92%

102 90%

59 76%

5 4%

4 4%

8 11%

59 52%

30 39%

25 55%

1 1%

7 69%

112 52%

85 56%

69 54%

66 53%

61 58%

108 56%

62 51%

48 42%

12 6%

5 4%

7 6%

4 4%

6 3%

5 4%

3 3%

7 10%

1 1%

3 31%

87 41%

1 -

60 39% -

1 1%

52 41% -

50 40% -

1 1%

37 35% -

4 3%

76 40% -

1 -

1 1%

53 44% -

1 1% -

1 1%

2 2%

38 82% 4 9%

4 9% -

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 3-5 QUESTION 1: From a financial perspective, how do you feel right now about the future for your company? BANNER 5

BASE=TOTAL SAMPLE **D/S (CONFIDENT - NOT CONFIDENT) TOTAL CONFIDENT ---------------

TOTAL NOT CONFIDENT ------------------VERY CONFIDENT

SOMEWHAT CONFIDENT NOT VERY CONFIDENT NOT AT ALL CONFIDENT DON'T KNOW/UNSURE REFUSED

PAGE 17

212 53%

145 36%

108 27%

92 23%

79 20%

372 93%

198 93%

136 94%

103 95%

89 97%

73 92%

351 88% 21 5%

201 50%

186 88% 12 5%

4 4%

86 94% 3 3%

67 84% 6 8%

77 53%

60 56%

52 56%

40 50%

10 5%

7 5%

3 3%

6 8%

104 49%

2 1%

1 1%

4 1%

3 1%

7 5%

98 91%

94 44%

171 43% 19 5%

129 89%

59 41%

42 39%

1 1%

2 1%

1 1%

37 41% -

33 42% -

71 18%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

64 295 78 58 76 148 76 296 90% 92% 96% 93% 94% 96% 88% 93% M E4E T 17 I N G S3T R E3E T 3R E S5E A R9C H 18 5% 5% 4% 4% 4% 3% 10% 6%

42 98%

50 92%

91 91%

47 93%

94 94%

204 94%

26 49%

43 43%

30 59%

46 46%

111 51%

60 85%

319 80%

277 87%

81 20%

74 92%

62 16%

55 89%

82 20%

74 90%

40 56%

156 49%

45 55%

39 63%

45 55%

4 5%

15 5%

3 4%

24 34% -

3 5%

138 43% 2 1%

3 1%

4 1%

33 41% -

19 30%

154 39%

143 93%

74 48%

87 22%

67 78%

37 43%

156 49%

8 9%

17 5%

32 39%

74 48%

39 45%

1 1%

1 1% 1 2%

1 1% 2 2%

5 3% -

1 1%

278 87%

41 96%

1 2%

28 66%

47 88% 2 4%

82 82% 9 9%

44 87% 3 5%

89 89% 6 6%

195 89% 9 4%

140 44%

14 32%

23 43%

48 48%

17 33%

49 49%

93 43%

1 -

1 2%

2 1%

3 1%

3 2%

1 1%

3 1%

2 4%

2 3% -

9 9% -

3 5% -

1 2%

6 6% -

7 3% 1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 4-1 QUESTION 2: Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession? BANNER 1

BASE=TOTAL SAMPLE ECONOMIC EXPANSION A FLAT ECONOMY A RECESSION DON'T KNOW/UNSURE REFUSED

PAGE 18

140 35%

59 42%

87 22%

49 56%

48 12%

23 49%

43 11%

28 65%

82 20%

37 45%

155 39%

63 45%

24 28%

16 34%

13 30%

39 47%

23 6%

10 7%

3 4%

5 11%

2 6%

3 3%

21 5%

5 1%

6 4%

3 2%

9 10%

2 2%

3 6%

4 4% -

228 57%

108 47%

172 43%

88 51%

166 42%

77 46%

108 27%

64 59%

87 38%

68 39%

63 38%

36 33%

13 6%

10 6%

12 7%

8 7%

15 6 13 1 M E6% E T I4% N G S8% T R E1% E T 5 2%

2 1%

114

101 25%

46 45%

202 51%

92 45%

117 29%

72 62%

49 48%

76 38%

38 33%

17 8%

6 5%

5 16 1 R E S8% E A R1% C H 5%

2 2%

2 1%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

40 50%

40 44%

29 30%

25 41%

20 43%

4 4%

6 6%

3 5%

4 8%

32 40% 4 5%

4 4%

41 45% 7 8% -

51 53%

7 7%

4 4%

31 52%

1 2% -

22 47%

1 2%

299 75%

157 39%

31 31%

123 41%

63 40%

4 4%

19 6%

5 3%

54 54%

10 10% 1 1%

142 47%

11 4%

4 1%

107 27%

33 8%

77 19%

80 51%

49 46%

17 53%

38 49%

8 5%

5 5%

2 6%

3 4%

43 40% 8 7%

2 2%

11 33% 3 8% -

30 39% 4 6%

2 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 4-2 QUESTION 2: Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession? BANNER 2

BASE=TOTAL SAMPLE ECONOMIC EXPANSION A FLAT ECONOMY A RECESSION DON'T KNOW/UNSURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

155 39%

52 26%

88 51%

140 38%

23 6%

9 5%

10 6%

19 5%

196 49% 21 5%

5 1%

131 65% 6 3%

2 1%

60 35% 10 6%

3 2%

372 93%

191 51% 16 4%

5 1%

21 5%

2 10%

12 56%

5 24%

2 10%

PAGE 19

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

155 100%

60 33%

31 52%

63 42%

9 5%

5 8%

8 5%

196 100%

21 100%

103 57% 7 4%

2 1%

17 29%

7 12%

69 46% 7 5%

3 2%

22 6%

129 32%

181 45%

64 27%

12 53%

76 59%

10 4%

2 8%

9 7%

150 63% 8 4%

3 1%

3 12%

6 26%

38 29% 7 5%

36 9%

172 43%

123 31%

62 15%

49 27%

20 57%

84 49%

41 33%

31 50%

83 40%

29 58%

82 35%

1 24%

67 45%

9 5%

2 5%

9 5%

4 3%

1 2%

16 8%

7 14%

10 4%

1 28%

11 8%

113 62% 6 3%

3 2%

9 26%

71 41%

4 12%

8 4%

73 60% 4 3%

2 1%

24 39% 6 9% -

208 52%

49 12%

96 46%

233 58%

13 26%

12 6%

129 55%

1 2%

2 1%

3 1%

2 48%

9 4%

BASE=TOTAL SAMPLE ECONOMIC EXPANSION A FLAT ECONOMY A RECESSION DON'T KNOW/UNSURE REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

155 39%

32 35%

120 40%

79 39%

64 42%

44 37%

41 43%

39 39%

23 6%

1 2%

8 4%

6 4%

4 3%

4 4%

10 10%

196 49% 21 5%

5 1%

54 58% 5 5%

136 46% 15 5%

21 7%

5 2%

107 53% 6 3%

2 1%

71 47% 7 4%

4 2%

66 55% 5 4%

49 51% 2 2%

45 44% 6 6%

1 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

96 35%

57 34%

66 39%

19 7%

12 7%

144 53% 14 5%

1 -

96 57% 5 3%

83 49%

3 1%

7 4%

1 -

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----147 37%

146 36%

147 37%

64 37%

39 55%

65 44%

54 37%

16 9%

2 2%

8 5%

5 4%

6 4%

1 -

26 37% 2 3%

66 45% 5 3%

3 4%

4 2%

78 54%

4 3% 4 2%

BASE=TOTAL SAMPLE ECONOMIC EXPANSION A FLAT ECONOMY A RECESSION DON'T KNOW/UNSURE REFUSED

47 12%

72 18%

74 18%

73 18%

196 49%

65 44%

18 39%

29 41%

29 40%

22 31%

77 39%

74 38%

4 2%

2 4%

2 3%

4 6%

4 5%

8 4%

14 7%

70 47%

7 5% 2 1%

21 44% 4 9%

2 4%

30 42% 9 13%

2 2%

31 42% 8 11%

1 1%

39 53%

98 50%

5 8%

9 5%

3 4%

95 49% 11 6%

4 2%

2 1%

PAGE 21

87 22%

155 39%

35 40%

196 49% 21 5%

23 6%

5 1%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

125 44%

27 26%

12 28%

66 46%

35 42%

15 36%

42 49%

135 47%

5 5%

13 5%

5 6%

12 4%

1 -

59 57% 7 7% 7 6%

4 3%

26 61% 3 6% 1 2%

1 2%

67 46% 4 3% 4 3%

4 2%

39 47% 4 5% 5 6%

7 2%

122 31%

93 23%

149 37%

2 28%

35 28%

36 39%

73 49%

8 6%

8 9%

5 3%

22 53%

4 59%

2 5%

1 13%

3 6%

72 59% 6 5%

45 49% 3 3%

3 2%

1 1%

63 42%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

92 43%

60 40%

58 45%

54 43%

40 38%

79 41%

50 42%

46 40%

9 4%

7 4%

5 4%

8 6%

5 4%

7 4%

9 7%

5 4%

5 54%

101 47%

7 5%

1 12%

8 4%

2 1%

3 34% -

4 2%

75 49% 8 5% 2 1%

63 49% 2 2% -

56 45% 5 4%

2 2%

53 50% 6 6%

2 2%

98 52% 4 2%

3 1%

55 46% 6 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 M E E T I N G S T R E E T R E S E A R C H Table 4-5 QUESTION 2: Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession? BANNER 5

BASE=TOTAL SAMPLE ECONOMIC EXPANSION A FLAT ECONOMY A RECESSION DON'T KNOW/UNSURE REFUSED

2 2%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 M E E T I N G S T R E E T R E S E A R C H Table 4-4 QUESTION 2: Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession? BANNER 4

9 6%

PAGE 20

71 18%

84 49%

58 39%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 4-3 QUESTION 2: Thinking about the upcoming year, in 2019, do you anticipate economic expansion, a flat economy, or a recession? BANNER 3

148 37%

400 100%

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

155 39%

93 44%

45 31%

38 35%

34 37%

32 40%

29 41%

124 39%

30 38%

22 36%

33 41%

62 40%

34 39%

114 36%

17 40%

17 32%

38 38%

20 39%

56 56%

85 39%

21 5%

23 6% 5 1%

88 41%

14 7%

14 7% 3 1%

86 59%

4 3%

8 6%

2 2%

56 52%

4 3%

7 7%

3 3%

50 55%

5 5%

2 3%

39 49%

1 2%

6 7%

2 2%

34 48% 4 6%

4 5%

159 50%

17 5%

2 1%

37 46% 4 5%

6 8%

4 4%

33 53% 3 5%

38 47%

4 6%

M E E T I N G S T R E E T

115

6 7%

4 5%

79 52% 5 3%

6 4%

2 1%

37 43% 6 7%

164 51%

7 8%

2 3%

R E S E A R C H

17 5% 23 7%

2 1%

21 50% 3 6%

2 5%

46 12%

30 39%

20 44%

7 6%

5 7%

1 2%

2 1%

36 47% 5 7%

21 46% 4 8%

PAGE 22

77 19%

55 48%

29 54%

3 6%

4 8%

51 51%

7 7%

5 5%

28 54%

3 7%

39 39%

2 2%

3 3%

103 47%

13 6%

12 5%

5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 23 Table 5-1 QUESTION 3: Thinking about the business climate in Minnesota compared to say five years ago, would you say the business climate has gotten better, gotten worse or stayed about the same?

BANNER 1

BASE=TOTAL SAMPLE **D/S (GOTTEN BETTER GOTTEN WORSE) GOTTEN BETTER GOTTEN WORSE STAYED ABOUT THE SAME DON'T KNOW

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

51 52%

31 52%

16 34%

44 44%

137 46%

73 47% 53 34%

122 30%

46 33%

29 33%

9 18%

12 28%

26 32%

75 33%

47 27%

36 22%

51 48%

27 27%

50 25%

53 46%

19 24%

20 21%

39 40%

59 15%

18 13%

12 14%

13 27%

6 14%

10 12%

30 13%

29 17%

31 19%

8 8%

16 16%

33 16%

13 11%

12 15%

14 15%

12 12%

181 45%

150 37% 10 2%

65 46%

54 38% 4 3%

41 47%

33 37% 2 2%

21 45%

13 26% 1 3%

18 42%

18 41% 1 2%

36 45%

33 41% 2 2%

105 46%

86 38% 6 3%

76 44%

64 37% 4 2%

67 41%

64 38% 4 2%

60 55%

43 43%

36 33%

40 40%

4 4%

2 2%

83 41%

80 40% 6 3%

67 57%

31 39%

35 30%

34 43%

2 2%

34 37%

42 46% 2 2%

31 32% 3 4%

23 38%

8 13%

20 33%

1 1%

6 12%

10 22%

20 44%

34 34%

89 30%

47 30%

10 10%

49 16%

26 17%

1 1%

9 3%

4 3%

44 44%

105 35%

33 8%

77 19%

40 38%

20 59%

32 42%

43 40%

11 32%

34 44%

20 18%

17 51%

20 19%

23 29%

3 9%

4 3%

10 13%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 24 Table 5-2 QUESTION 3: Thinking about the business climate in Minnesota compared to say five years ago, would you say the business climate has gotten better, gotten worse or stayed about the same?

BANNER 2

BASE=TOTAL SAMPLE **D/S (GOTTEN BETTER GOTTEN WORSE)

GOTTEN BETTER GOTTEN WORSE

STAYED ABOUT THE SAME DON'T KNOW

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 122 30%

181 45%

59 15%

150 37% 10 2%

201 50%

78 39%

101 50%

22 11%

73 36% 5 2%

171 43%

372 93%

70 41%

170 46%

41 24%

29 17%

69 40% 4 2%

119 32%

51 14%

142 38% 9 2%

21 5%

155 39%

7 32%

103 52%

60 39%

6 29%

69 35%

-1%

7 33% 1 6%

86 44% 17 9%

8 4%

29 19%

31 20%

63 41% 1 1%

21 5%

-2%

7 32%

7 34%

181 45%

59 15%

150 37%

236 59%

181 100%

121 51%

150 100%

89 38%

181 -59 100% -100% -

59 100%

22 6%

129 32%

181 45%

5 21%

52 40%

94 52%

101 43%

-4 -18%

20 8%

9 39%

5 2%

9 41% -

22 17%

30 23%

44 34% 3 2%

36 9%

172 43%

123 31%

7 20%

75 44%

58 47%

75 42%

-5 -15%

19 10%

13 35%

63 35% 6 3%

48 28%

27 16%

16 44%

66 39%

3 2%

43 35%

15 12%

46 37% 5 4%

62 15%

208 52%

23 36%

97 46%

6 10%

16 27%

22 36% 1 1%

69 33%

28 13%

79 38% 4 2%

49 12%

233 58%

22 44%

113 48%

13 26%

85 36%

9 18%

1 18%

61 41%

34 23%

1 24%

85 37%

148 37%

-6%

28 12%

19 38%

3 1%

26 18%

2 59%

7 3%

58 39%

3 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 25 M E E T I N G S T R E E T R E S E A R C H Table 5-3 QUESTION 3: Thinking about the business climate in Minnesota compared to say five years ago, would you say the business climate has gotten better, gotten worse or stayed about the same? BANNER 3

BASE=TOTAL SAMPLE **D/S (GOTTEN BETTER GOTTEN WORSE) GOTTEN BETTER GOTTEN WORSE STAYED ABOUT THE SAME DON'T KNOW

92 23%

298 74%

202 50%

151 38%

119 30%

48 52%

129 43%

98 48%

79 52%

64 54%

122 30%

39 42%

59 15%

9 9%

181 45%

150 37% 10 2%

33 36% 3 3%

80 27%

48 16%

113 38% 7 2%

69 34%

29 14%

70 35% 6 3%

59 39%

20 13%

49 32% 4 2%

95 24%

101 25%

54 57%

39 38%

48 40%

42 44%

16 14%

12 13%

37 31% 2 1%

27 28% 2 2%

23 23%

16 15%

46 45% 1 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

128 47%

76 44%

75 44%

76 45%

85 31%

42 15%

99 36%

4 2%

45 27%

30 18%

62 36%

2 1%

47 28%

28 16%

63 37%

3 2%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

31 44%

70 48%

68 46%

69 47%

51 30%

22 30%

25 15%

10 13%

65 38%

4 3%

29 41%

1 1%

53 36%

17 12%

57 39%

2 1%

52 36%

48 32%

15 11%

22 15%

2 1%

61 42%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

54 37%

47 12%

72 18%

74 18%

73 18%

196 49%

21 44%

31 43%

33 44%

34 47%

91 47%

88 45%

17 35%

23 31%

20 27%

25 34%

67 34%

56 28%

4 9%

8 12%

13 18%

9 12%

25 13%

32 16%

3 6%

4 5%

3 4%

2 3%

4 2%

19 41%

28 40%

25 34%

28 38%

75 39%

72 37%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 26 M E E T I N G S T R E E T R E S E A R C H Table 5-4 QUESTION 3: Thinking about the business climate in Minnesota compared to say five years ago, would you say the business climate has gotten better, gotten worse or stayed about the same? BANNER 4

BASE=TOTAL SAMPLE **D/S (GOTTEN BETTER GOTTEN WORSE) GOTTEN BETTER

GOTTEN WORSE STAYED ABOUT THE SAME DON'T KNOW

87 22%

285 71%

103 26%

42 48%

125 44%

49 48%

122 30%

25 29%

59 15%

17 19%

10 2%

181 45%

150 37%

29 33%

80 28% 46 16%

109 38%

6 2%

43 11%

144 36%

26 61%

67 47%

37 36%

22 51%

13 12%

4 10%

38 37%

3 3%

11 26%

1 2%

83 21%

42 11%

51 35%

13 16%

16 38%

17 12%

16 19%

5 11%

56 39%

4 3%

29 35%

35 42%

3 4%

21 49%

17 41%

7 2%

122 31%

4 58%

54 44%

4 58%

3 42%

93 23%

149 37%

36 39%

78 52%

36 30%

15 17%

18 14%

21 22%

49 40%

2 2%

34 36%

M E E T I N G S T R E E T

116

2 2%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

4 40%

103 48%

74 49%

63 49%

55 44%

42 40%

97 51%

54 45%

52 46%

31 40%

13 28%

47 37%

45 36%

64 43%

3 29%

14 9%

1 11%

54 36%

3 2%

5 50%

77 36%

26 12%

82 38%

R E S E A R C H

4 2%

59 39%

16 10%

59 39%

3 2%

47 36%

16 13% 2 2%

34 27%

21 17% 4 3%

29 27%

13 12%

47 44% 3 3%

76 40%

21 11%

68 35% 4 2%

32 27%

21 18%

43 36% 2 2%

38 33%

13 17%

6 14%

14 13%

17 22%

7 15%

7 6%

41 36%

29 38%

26 57%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 27 Table 5-5 QUESTION 3: Thinking about the business climate in Minnesota compared to say five years ago, would you say the business climate has gotten better, gotten worse or stayed about the same?

BANNER 5

BASE=TOTAL SAMPLE **D/S (GOTTEN BETTER GOTTEN WORSE) GOTTEN BETTER GOTTEN WORSE STAYED ABOUT THE SAME DON'T KNOW

212 53%

145 36%

108 27%

181 45%

92 44%

70 48%

45 42%

122 30%

59 15%

150 37%

10 2%

57 27%

35 16% 81 38%

4 2%

51 35%

19 13% 53 36%

3 2%

92 23%

79 20%

30 28%

36 40%

26 33%

14 13%

13 14%

10 13%

47 43%

2 2%

49 54% 27 29%

3 3%

37 47% 30 37%

2 3%

71 18%

319 80%

39 55%

143 45%

34 48%

5 7%

25 35%

2 3%

81 20%

95 30%

27 33%

48 15%

12 14%

121 38%

8 2%

39 48% 29 36%

2 3%

62 16%

82 20%

154 39%

43 53%

68 44%

29 46%

30 37%

3 4%

13 16%

31 50% 26 42%

2 4%

26 31%

87 22%

320 80%

36 41%

150 47%

45 29%

19 22%

23 15%

17 20%

58 38%

5 3%

31 36%

2 3%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

29 53%

38 38%

20 39%

40 40%

101 46%

18 33%

34 34%

22 44%

42 42%

82 37%

103 32%

11 26%

23 42%

47 15%

8 20%

6 11%

115 36%

8 3%

19 45% 13 31%

2 4%

1 2%

13 13%

25 25%

3 3%

13 25%

7 14%

2 4%

23 23%

17 17%

1 1%

71 33%

30 14%

6 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 6-1 QUESTION 4: As you look to 2019, do you project your company's gross revenues to increase or decrease compared to 2018, or will they probably stay the same? BANNER 1

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10%

DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED STATUS QUO 3/3 STATUS QUO 2/3

PAGE 28

140 35%

77 55%

87 22%

48 55%

48 12%

26 55%

43 11%

24 55%

82 20%

38 47%

228 57%

125 55%

172 43%

88 51%

166 42%

71 42%

108 27%

63 59%

101 25%

69 68%

202 51%

89 44%

117 29%

79 67%

79 20%

45 57%

91 23%

53 58%

97 24%

53 54%

60 15%

28 46%

46 12%

24 52%

100 25%

69 70%

299 75%

144 48%

157 39%

71 45%

107 27%

64 60%

33 8%

28 85%

77 19%

37 48%

236 59%

84 60%

53 61%

29 61%

27 64%

42 52%

137 60%

99 57%

84 51%

69 64%

72 71%

104 52%

83 71%

48 60%

59 64%

56 57%

33 54%

27 58%

74 74%

162 54%

82 52%

70 65%

29 87%

41 54%

116 29%

38 27%

30 35%

16 34%

11 27%

20 24%

68 30%

48 28%

49 29%

36 33%

24 24%

62 31%

42 36%

11 14%

27 29%

27 28%

17 27%

16 35%

45 46%

70 23%

48 31%

32 30%

10 30%

21 28%

5 2%

5 3%

3 4%

22 6%

120 30% 7 2%

15 4%

7 5%

5 5%

3 6%

4 9%

4 5%

46 33%

22 26%

13 26%

16 37%

23 28%

6 4%

4 4%

1 2%

3 7%

2 2%

2 1%

1 1%

2 4%

1 2%

2 3%

129 32%

43 31%

27 31%

15 31%

9 22%

34 42%

4 1%

2 2%

2 5%

49 12%

16 12%

7 15%

2 5%

9 2%

105 26%

3 2%

39 28%

3 3%

9 10%

23 27%

1 3%

9 19%

13 30%

12 5%

69 30% 3 1%

10 6%

51 30% 5 3%

14 8%

36 22% 6 3%

6 5%

33 31% -

9 5 8 6 M E4% E T I3% N G S5% T R E5% E T

3 3%

48 47% 2 2%

15 7%

42 21% 4 2%

5 4%

41 35% 2 2%

1 11 3 R E S5% E A R2% C H 1%

3 3%

6 6%

3 3%

5 8%

3 6%

4 4%

37 46%

32 35%

28 29%

16 27%

11 23%

28 28%

1 1%

4 4%

3 3%

3 5%

2 4%

2 2%

2 3%

1 2%

2 2%

18 6%

92 31%

12 4%

11 7%

34 21% 6 4%

6 5%

37 35% 6 5%

1 3%

19 57% 1 3%

5 6%

20 26% 2 2%

71 31%

58 34%

64 38%

30 28%

27 26%

78 39%

27 23%

23 28%

26 28%

35 36%

20 34%

17 37%

20 21%

108 36%

60 38%

28 27%

3 10%

26 34%

2 1%

1 1%

3 3%

1 1%

3 1%

1 1%

2 2%

14 17%

26 11%

24 14%

29 17%

11 10%

5 5%

36 18%

10 9%

3 3%

9 10%

13 13%

8 13%

6 13%

5 5%

44 15%

28 18%

9 9%

2 6%

7 9%

2 2%

21 26%

6 3%

62 27%

3 2%

43 25%

3 2%

45 27%

3 3%

26 24%

M E E T I N G S T R E E T

117

29 29%

4 2%

52 26%

1 1%

29 25%

R E S E A R C H

4 4%

23 29%

1 1%

25 27%

3 3%

26 27%

2 4%

16 26%

12 26%

24 24%

9 3%

81 27%

3 2%

38 25%

2 1%

24 22%

7 20%

4 5%

28 36%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 6-2 QUESTION 4: As you look to 2019, do you project your company's gross revenues to increase or decrease compared to 2018, or will they probably stay the same? BANNER 2

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10%

DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED STATUS QUO 3/3 STATUS QUO 2/3

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 213 53%

201 50%

141 70%

171 43%

74 43%

372 93%

215 58%

21 5%

-2 -9%

147 75%

155 39%

52 34%

21 5%

3 12%

181 45%

116 64%

59 15%

11 19%

150 37%

80 54%

236 59%

22 6%

129 32%

236 -22 100% -100%

236 59%

143 71%

85 50%

228 61%

5 26%

150 76%

64 42%

8 40%

121 67%

20 34%

89 60%

236 100%

116 29%

68 34%

43 25%

111 30%

3 14%

80 41%

20 13%

8 40%

57 31%

9 15%

46 31%

116 49%

5 3%

5 1%

3 13%

1 1%

5 3%

2 9%

2 1%

4 6%

2 1%

22 6%

120 30% 7 2%

15 4%

2 1%

75 37% 2 1%

11 7%

42 25% 6 4%

13 4%

118 32% 8 2%

7 35% 2 12%

5 22%

3 1%

69 35% 2 1%

12 8%

44 28% 7 5%

6 28% -

4 19%

5 3%

64 35% 3 1%

9 14% 11 18% 5 8%

9 6%

43 29% 7 5%

129 32%

49 24%

72 42%

121 32%

6 31%

38 19%

76 49%

7 32%

52 29%

30 51%

44 30%

4 1%

2 1%

1 -

3 1%

1 1%

3 2%

2 1%

49 12%

21 11%

13 7%

29 18%

1 5%

22 12%

9 15%

19 12%

9 2%

105 26%

5 3%

43 22%

2 1%

27 16% 54 32%

7 2%

48 13% 97 26%

2 9%

7 34%

PAGE 29

5 2%

42 21%

53 35%

8 38%

1 1%

45 25%

1 1%

20 34%

5 3%

36 24%

22 100%

120 51%

15 66%

39 16%

62 15%

60 29%

70 39%

3 8%

47 27%

34 28%

21 33%

65 31%

1 1%

12 33%

1 1%

2 2%

8 12%

5 2%

1 2%

3 3%

1 1%

21 11%

49 38%

65 50%

11 6%

4 11%

4 2%

25 14% 3 2%

11 18%

3 3%

125 60%

16 44%

89 49%

16 26%

49 12%

2 1%

72 42%

79 64%

208 52%

3 8%

68 40%

123 31%

-13 -36%

159 88%

129 100%

172 43%

157 87%

1 4%

36 9%

7 34%

181 45%

82 67%

48 39% 1 1%

15 43%

92 54%

34 28%

1 3%

1 1%

49 29%

10 29%

2 1%

84 49%

26 21%

27 44%

7 11% 4 6%

117 56% 8 4%

3 1%

233 58%

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE -------------TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10%

STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED STATUS QUO 3/3 STATUS QUO 2/3

92 23%

298 74%

202 50%

151 38%

119 30%

59 64%

172 58%

134 66%

102 68%

82 69%

116 29%

28 31%

85 28%

60 30%

49 32%

38 32%

7 2%

4 4%

4 1%

2 1%

3 2%

213 53%

53 57%

22 6%

7 7%

236 59%

120 30% 15 4%

31 33% 3 3%

157 53%

15 5%

88 29% 11 4%

127 63%

7 3%

73 36% 5 2%

95 63%

7 5%

54 35% 4 3%

78 65%

5 4%

44 37% 2 2%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

95 101 274 170 169R E171 71 147 M24% E E T25% I N G68% S T R42% E E T42% S E A18% R C H37% 43% 67 70%

38 38%

2 2%

9 9%

69 72%

145 53%

95 56%

88 52%

8 5%

11 6%

47 47%

159 58%

103 60%

35 37%

28 28%

84 31%

1 1%

4 4%

5 2%

33 35% 1 1%

19 19% 6 6%

14 5%

75 27% 9 3%

87 51%

44 61%

84 57%

146 36%

147 37%

91 63%

88 60%

150 64%

11%

58 39%

6 3%

1 18%

12 8%

156 67%

76 33%

80 34%

4 2%

3 1%

2 1%

1 30%

49 24%

49 100%

24 10%

15 24%

62 30%

56 24%

73 18%

196 49%

100 51%

33 45%

38 52%

126 65%

95 64%

26 55%

39 54%

38 51%

40 55%

132 67%

56 33%

52 31%

50 29%

14 20%

37 25%

43 29%

40 27%

16 33%

21 30%

20 27%

25 34%

67 34%

3 2%

4 2%

3 4%

3 2%

4 3%

2 3%

2 2%

46 27% 5 3%

47 28% 8 5%

47 28% 7 4%

33 46% 1 1%

53 36% 3 2%

53 37% 2 1%

55 37% 3 2%

10 22%

2 5%

17 24%

4 6%

5 7%

2 3%

6 3%

85 43%

16 8%

48 24%

18 24%

15 21%

65 33%

53 27%

3 4%

2 3%

2 1%

12 6%

4 2%

129 32%

24 26%

100 34%

55 27%

36 24%

28 24%

22 24%

42 42%

91 33%

53 31%

54 32%

57 33%

19 26%

48 33%

41 28%

43 29%

17 36%

26 36%

30 41%

29 39%

52 27%

73 37%

4 1%

4 2%

3 2%

1 1%

4 2%

2 1%

1 1%

2 1%

3 1%

2 1%

14 9%

12 10%

9 2%

49 12%

105 26%

2 3%

7 8%

22 24%

6 2%

41 14%

79 27%

4 2%

19 10%

54 27%

4 3%

39 26%

2 2%

34 29%

2 2%

9 10%

25 27%

1 1%

17 17%

27 26%

5 2%

36 13%

67 24%

5 3%

25 15%

30 18%

5 3%

27 16%

29 17%

M E E T I N G S T R E E T

118

5 3%

26 15%

38 22%

2 2%

5 7%

21 29%

3 2%

15 10%

52 35%

R E S E A R C H

2 1%

10 7%

49 34%

2 1%

15 10%

43 29%

2 4%

7 15%

15 31%

1 1%

9 13%

20 27%

1 1%

11 15%

24 32%

1 24%

2 1%

24 16%

44 29%

PAGE 30

74 18%

6 8%

5 3%

3 1%

6 3%

72 18%

2 5%

8 5%

1 2%

96 66%

7 5%

1 18%

63 43%

90 61%

5 3%

38 26%

1 24%

47 66%

6 4%

62 27%

97 57%

4 5%

33 22%

49 100%

2 1%

99 58%

11 6%

1 28%

71 48%

71 34%

47 12%

33 46%

1 28%

22 36%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----23 50%

148 37%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 6-3 QUESTION 4: As you look to 2019, do you project your company's gross revenues to increase or decrease compared to 2018, or will they probably stay the same? BANNER 3

3 1%

2 3%

8 11%

22 31%

4 2%

14 7%

47 24%

5 3%

34 17%

57 29%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 6-4 QUESTION 4: As you look to 2019, do you project your company's gross revenues to increase or decrease compared to 2018, or will they probably stay the same? BANNER 4

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10%

INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED STATUS QUO 3/3 STATUS QUO 2/3

PAGE 31

236 59% 22 6%

116 29%

87 22%

285 71%

103 26%

49 56%

168 59%

24 27%

75 26%

40 46%

9 10%

151 53% 17 6%

43 11%

144 36%

61 59%

32 76%

84 58%

45 55%

36 35%

22 51%

30 21%

20 24%

55 54% 5 5%

30 71% 2 5%

78 54% 6 4%

83 21%

39 47% 6 8%

42 11%

7 2%

122 31%

26 61%

2 33%

14 33%

2 33%

22 52% 4 9%

120 30%

25 29%

93 33%

25 24%

11 25%

54 37%

26 31%

12 28%

15 4%

7 8%

11 4%

4 4%

1 2%

3 2%

6 7%

2 5%

7 2%

2 2%

6 2%

1 1%

1 3%

3 2%

1 1%

2 4%

2 33% -

93 23%

149 37%

70 58%

53 57%

33 27%

25 27%

64 53% 6 5%

47 51% 6 6%

10 2%

214 54%

151 38%

128 32%

94 63%

6 63%

129 60%

100 66%

78 61%

45 30%

5 54%

59 28%

40 27%

36 28%

40 32%

31 29%

52 27%

4 2%

1 12%

3 2%

2 2%

3 2%

87 58% 7 5%

38 31%

28 30%

49 33%

3 3%

6 6%

4 2%

3 2%

5 51%

1 12%

118 55% 11 5%

93 62% 6 4%

1 8%

69 32%

59 39%

6 3%

3 2%

6 3%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

61 54%

44 57%

26 56%

31 26%

37 33%

23 30%

13 28%

1 1%

3 3%

71 55%

81 65%

64 60%

123 64%

54 45%

56 49%

7 6%

4 3%

6 5%

5 3%

9 8%

6 5%

43 33% 5 4%

85 68%

45 36% 2 2%

70 65%

38 36% 4 3%

128 67%

76 40% 2 1%

64 53%

33 27% 8 7%

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE -------------TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10%

DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED STATUS QUO 3/3 STATUS QUO 2/3

7 9%

24 52% 2 4%

24 21%

21 27%

13 28%

2 2%

6 8%

1 2%

1 1%

1 2%

129 32%

27 31%

96 34%

31 30%

8 19%

48 33%

28 34%

13 30%

5 67%

38 31%

34 37%

46 31%

3 26%

67 31%

40 26%

42 32%

33 27%

27 25%

53 28%

46 39%

43 38%

25 33%

18 40%

4 1%

1 1%

1 -

2 2%

2 1%

2 2%

2 1%

1 1%

2 2%

2 1%

1 1%

49 12%

13 14%

34 12%

13 13%

1 2%

20 14%

8 10%

6 14%

2 28%

17 14%

8 8%

19 13%

2 16%

29 13%

14 9%

15 12%

11 9%

8 7%

21 11%

24 20%

10 9%

10 13%

3 7%

9 2%

105 26%

1 2%

17 20%

3 1%

79 28%

4 4%

24 24%

11 26%

5 3%

42 29%

1 1%

22 26%

9 21%

3 39%

6 5%

28 23%

34 36%

1 1%

34 23%

1 12%

6 3%

57 26%

4 3%

43 29%

31 24%

2 2%

32 26%

2 2%

29 28%

3 2%

49 26%

1 1%

32 27%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 6-5 QUESTION 4: As you look to 2019, do you project your company's gross revenues to increase or decrease compared to 2018, or will they probably stay the same? BANNER 5

36 47%

46 12%

212 53%

145 36%

108 27%

236 59%

116 55%

95 65%

65 61%

58 63%

116 29%

59 28%

44 30%

33 31%

7 2%

7 3%

2 1%

2 2%

213 53% 22 6%

120 30% 15 4%

100 47% 16 7%

57 27% 9 4%

89 61% 5 4%

50 35% 4 2%

59 55% 6 6%

32 30% 5 4%

92 23%

71 18%

319 80%

50 63%

45 63%

190 60%

46 57%

29 31%

16 20%

23 32%

98 31%

18 22%

4 4%

2 2%

1 1%

50 55% 8 8%

29 32% 4 4%

79 20%

46 58% 4 5%

34 43% 2 2%

44 62% 1 1%

22 31% -

169 53% 20 6%

92 29% 7 2%

13 4%

81 20%

44 54% 2 2%

28 35%

2 2%

62 16%

82 20%

154 39%

43 68%

48 58%

21 33%

23 28%

42 67% 1 1%

22 35%

1 1%

41 50% 7 8%

24 30%

4 5% 3 4%

87 22%

320 80%

95 62%

45 52%

188 59%

25 58%

33 61%

52 52%

31 61%

52 52%

130 60%

46 30%

23 26%

105 33%

6 14%

19 35%

29 29%

13 26%

24 24%

65 30%

2 2%

6 2%

88 57% 7 5%

49 32%

2 1% 5 3%

39 45% 7 8%

22 26%

5 6%

168 53% 20 6%

83 26%

14 4%

43 11%

22 52% 3 6%

19 44%

2 4% 1 2%

54 10%

32 60% 1 1%

14 26%

1 1%

100 19%

45 45% 7 7%

23 23% 2 2%

5 5%

51 10%

27 53%

4 7%

18 35% 1 2%

3 6%

100 19%

43 43%

9 9%

28 28% 3 3%

6 6%

218 42%

119 55%

11 5%

65 30% 3 1%

9 4%

129 32%

71 34%

40 27%

31 29%

25 27%

23 29%

24 33%

101 32%

28 35%

16 26%

26 31%

47 30%

31 36%

106 33%

12 29%

19 35%

39 39%

14 28%

39 39%

69 32%

4 1%

3 2%

2 2%

1 1%

2 2%

3 1%

1 1%

1 2%

2 2%

1 1%

2 1%

1 2%

1 1%

2 4%

2 1%

8 10%

10 14%

5 9%

10 12%

20 13%

11 13%

46 14%

1 3%

20 20%

5 10%

14 14%

24 11%

9 2%

49 12%

105 26%

6 3%

27 13%

58 28%

2 1%

16 11%

39 27%

3 3%

10 9%

27 25%

2 2%

11 12%

22 24%

1 2%

21 27%

18 25%

4 1%

39 12%

78 24%

4 5%

10 12%

27 34%

2 3%

18 28%

19 23%

M E E T I N G S T R E E T

119

4 3%

41 27%

3 3%

25 29%

5 2%

82 26%

R E S E A R C H

2 5%

14 33%

2 3%

9 16%

15 28%

1 1%

18 18%

15 29%

1 1%

28 28%

34 29%

1 1%

18 23%

19 41%

PAGE 32

GROWTH DRIVERS GENDER AGE EMPLOYEES COMBINED INITIATIVE REGIONS ==================================== =========== ======================= =========== ============================= NORTH SW/ DEV-LAND WEST NEW MAX NEW ELIM STRTGY ELOP UNDER IF /NW SOUTH CENT TOTAL CUST PROD PROD WASTE PLAN MGRS MEN WOMEN 18-44 45-54 55-64 65+ 50 101+ INIT MN MN INIT NONE ----- ----- ----- ----- ----- ------ --------- ----- ----- ----- ----- ----M E E----T I N----G S T----R E E----T R----E S E----A R C----H 400 100%

3 3%

5 2%

62 28%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 7-1 QUESTION 5: And, as you look to 2019, do you project your company's profitability to increase or decrease compared to 2018, or will it probably stay the same?

BANNER 1

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10%

INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

PAGE 33

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

181 45%

60 43%

40 46%

21 44%

20 46%

40 49%

100 44%

81 47%

66 40%

55 51%

51 50%

81 40%

65 56%

35 44%

43 48%

43 44%

25 42%

23 49%

60 60%

121 40%

65 42%

54 51%

20 62%

30 38%

32 23%

24 27%

9 20%

20 24%

55 24%

38 22%

37 22%

29 27%

20 20%

39 25%

27 26%

10 31%

13 16%

11 5%

7 4%

14 8%

1 1%

3 3%

146 36%

45 32%

36 9%

16 11%

88 22%

29 20%

18 5%

8 5%

93 23% 18 4%

8 6%

33 38% 7 8%

18 37%

14 33%

3 6%

6 14%

17 19%

11 24%

4 4%

3 6%

3 3%

36 44%

78 34%

4 5%

22 10%

11 26%

20 25%

45 20%

3 7%

1 1%

3 7%

4 5%

12 5%

68 39%

40 24%

13 8%

26 16%

43 25%

29 18%

7 4%

13 8%

50 46%

47 47%

6 5%

27 25% 5 4%

52 25%

4 4%

30 15%

30 30%

32 16%

1 1%

62 52% 4 3%

50 24%

34 29%

17 8%

1 1%

13 7%

33 41% 2 3%

10 11%

25 31%

22 24%

10 12%

32 27%

3 2%

33 36%

2 3%

36 37%

17 36%

7 7%

6 10%

6 13%

18 18%

13 21%

10 21%

21 24%

25 26%

4 5%

3 3%

6 7%

19 32%

4 4%

13 21%

4 7%

2 3%

51 51%

9 9%

13 28%

34 35%

5 11%

5 5%

1 2%

26 26% 4 4%

95 32%

49 31%

107 27%

42 40%

19 59%

63 21%

26 17%

27 25%

10 30%

17 22%

5 3%

9 9%

1 3%

2 2%

12 4%

11 7%

3 3%

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE -------------TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10%

DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

5 6%

3 4%

172 43%

60 43%

37 42%

22 46%

17 40%

36 44%

96 42%

75 44%

71 42%

43 40%

47 46%

86 43%

46 40%

38 47%

35 38%

43 44%

27 45%

17 37%

28 28%

142 48%

70 45%

40 38%

12 36%

38 49%

5 1%

2 2%

1 2%

4 2%

1 1%

1 -

1 1%

4 4%

1 1%

3 3%

5 2%

1 1%

4 5%

6 2%

3 2%

2 2%

1 3%

1 1%

4 2%

2 1%

3 2%

3 3%

4 2%

1 1%

2 2%

1 1%

2 4%

2 2%

4 1%

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 7-2 QUESTION 5: And, as you look to 2019, do you project your company's profitability to increase or decrease compared to 2018, or will it probably stay the same? BANNER 2

25 32%

16 10%

14 5%

1 3%

77 19%

26 9%

59 20%

12 11%

33 8%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

181 45%

108 54%

66 39%

175 47%

93 23%

56 28%

32 19%

88 24%

146 36% 36 9%

88 22% 18 4%

18 5%

101 50% 7 4%

52 26% 1 1%

6 3%

49 28%

18 10% 34 20% 13 8%

5 3%

21 5%

150 40%

-4 -21%

25 7%

9 44%

86 23% 14 4%

11 3%

51 26% 5 3%

4 2%

4 20%

31 20%

1 5%

11 7%

9 6%

166 44%

4 20%

71 36%

84 54%

5 1%

2 1%

1 -

3 1%

1 4%

2 1%

5 1%

150 37%

236 59%

22 6%

129 32%

18 12%

20 13%

86 50% 1 1%

59 15%

62 32%

9 5%

80 40% 4 2%

181 45%

3 14%

172 43% 6 2%

21 5%

113 58%

7 32%

104 53%

155 39%

5 23%

3 13%

2 9%

PAGE 34

29 2 87 6 47 156 -14 5 19% 10% 48% 10% 32% 66% -61% 4% M49 E E T 6 I N G 94 S T R 19 E E T 63R E159 S E A R2C H 21 32% 29% 52% 31% 42% 67% 9% 16%

2 9%

2 2%

2 1%

5 24% 1 4%

3 15%

7 4%

13 21%

16 10%

44 24%

13 23%

29 19%

2 1%

8 14%

50 27% 6 3%

5 9%

4 7%

34 23% 7 5%

8 6%

49 12%

181 100%

68 55%

19 31%

93 45%

119 51%

45 36%

6 9%

42 20%

68 29%

14 11%

88 49%

5 4%

18 51%

6 25%

1 -

10 45%

10 8%

4 17%

92 72%

2 1%

1 2%

2 1%

1 1%

120

208 52%

1 4%

2 1%

72 31%

M E E T I N G S T R E E T

62 15%

73 31%

6 5%

66 44%

3 2%

123 31%

15 12%

1 4%

27 46%

172 43%

16 70%

86 36%

75 41%

3 1%

36 9%

181 -36 100% -100%

3 1%

8 37%

3 14%

181 45%

2 1%

1 4%

R E S E A R C H

93 51% -

36 100%

18 49%

62 51% 5 4%

8 13%

11 18%

74 36% 19 9%

23 19%

14 22%

52 25%

3 3%

9 14%

6 3%

2 2%

3 4%

13 6%

233 58%

3 1%

110 47%

-1 -20%

9 4%

2 48%

52 22% 6 3%

3 1%

148 37%

36 24%

1 28%

57 39%

1 28%

21 14%

37 25%

2 48%

12 8%

9 6%

172 100%

48 39%

31 50%

90 43%

49 100%

98 42%

1 24%

68 46%

1 1%

2 1%

4 2%

2 1%

4 2%

3 1%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 7-3 QUESTION 5: And, as you look to 2019, do you project your company's profitability to increase or decrease compared to 2018, or will it probably stay the same? BANNER 3

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE -------------TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10%

STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

92 23%

41 44%

298 74%

202 50%

151 38%

119 30%

102 34%

88 44%

63 42%

56 47%

95 24%

101 25%

48 50%

22 22%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

98 36%

69 41%

169 42%

65 38%

171 43%

60 35%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

28 39%

147 37%

146 36%

147 37%

52 36%

65 45%

PAGE 35

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

63 43%

47 12%

72 18%

74 18%

73 18%

196 49%

18 38%

23 32%

16 22%

25 34%

96 49%

196 49%

44 22%

181 45%

47 51%

130 44%

100 50%

75 49%

60 50%

52 54%

39 38%

127 46%

83 49%

79 47%

77 45%

30 42%

63 43%

74 51%

70 47%

21 45%

31 43%

26 35%

33 45%

104 53%

71 36%

93 23%

29 31%

62 21%

48 24%

41 27%

31 26%

29 30%

23 23%

65 24%

42 25%

38 22%

41 24%

10 14%

29 19%

38 26%

32 22%

17 35%

19 26%

16 22%

20 27%

56 29%

35 18%

18 4%

2 2%

16 5%

7 3%

6 4%

2 2%

17 6%

6 4%

7 4%

7 5%

6 4%

4 3%

1 2%

2 3%

3 1%

36 9%

88 22%

18 5%

7 7%

18 20%

5 5%

27 9%

67 23%

12 4%

12 6%

52 26%

6 3%

12 8%

34 22%

5 3%

4 3%

29 24%

2 2%

4 4%

23 24%

2 2%

16 16%

7 7%

9 9%

29 11%

61 22%

12 4%

14 8%

40 24%

7 4%

15 9%

42 25%

8 5%

18 10%

36 21%

10 6%

8 4%

2 2%

20 28%

2 2%

11 7%

35 24%

4 3%

8 6%

35 24%

3 2%

7 5%

38 25%

3 2%

3 7%

8 11%

4 9%

12 16%

4 5%

2 5%

4 5%

9 12%

7 10%

9 13%

8 4%

13 18%

5 7%

4 5%

48 24%

5 7%

5 2%

27 14%

36 19%

15 7%

12 6%

172 43%

37 40%

130 44%

83 41%

60 40%

53 44%

38 40%

43 42%

110 40%

68 40%

69 41%

71 41%

40 56%

71 48%

61 42%

70 47%

20 42%

31 44%

37 50%

30 41%

78 40%

93 47%

5 1%

5 2%

4 2%

3 2%

1 1%

3 1%

2 1%

1 1%

2 1%

3 2%

1 1%

2 4%

2 3%

4 2%

2 1%

6 2%

2 2%

5 2%

3 1%

3 2%

2 2%

5 2%

4 3%

1 2%

2 3%

1 2%

3 1%

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 7-4 QUESTION 5: And, as you look to 2019, do you project your company's profitability to increase or decrease compared to 2018, or will it probably stay the same? BANNER 4

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10%

DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

PAGE 36

87 22%

285 71%

103 26%

181 45%

38 44%

128 45%

93 23%

18 21%

58 20%

146 36% 36 9%

27 31%

11 13%

103 36% 26 9%

43 11%

144 36%

49 48%

24 57%

61 42%

33 32%

15 35%

26 18%

39 38%

10 10%

22 52% 2 5%

54 37% 7 5%

83 21%

42 11%

11 14%

20 24%

4 8%

2 27%

11 26%

3 2%

35 24%

18 22%

11 26%

18 5%

8 10%

15 5%

3 3%

1 2%

5 3%

5 6%

2 5%

2 1%

6 8%

11 12%

2 27%

9 22% 1 3%

33 27%

2 4%

16 15% 7 7%

9 10%

25 21%

70 25% 11 4%

93 23%

9 7%

2 33%

20 23% 3 3%

122 31%

149 37%

10 2%

214 54%

27 18 49 24 61 5 78 32% 43% 6% 40% 26% 41% 49% 37% M E E T I N G S T R E E T R E S E A R C H 38 22 2 58 33 74 6 93 46% 52% 33% 48% 36% 49% 60% 44%

88 22% 18 4%

7 2%

6 5%

125 31%

106 27%

191 48%

120 30%

70 46%

61 48%

67 53%

51 48%

89 47%

50 41%

52 46%

35 23%

31 24%

38 30%

25 24%

45 23%

27 23%

28 24%

62 41%

28 36%

14 31%

14 12%

9 11%

7 15%

36 47%

21 46%

29 23%

26 24%

45 23%

23 19%

25 22%

19 25%

11 24%

8 4%

3 2%

4 3%

2 2%

5 2%

7 6%

6 6%

5 7%

2 5%

1 12%

7 3%

5 3%

5 4%

3 3%

4 4%

6 3%

11 9%

38 34%

30 23%

4 3%

10 5%

38 32%

35 23%

8 6%

5 5%

79 41%

45 21%

3 4%

7 6%

46 43%

46 12%

2 18%

48 23%

9 7%

59 48%

77 19%

38 25%

4 43%

8 6%

53 41%

114 28%

1 12%

35 24%

6 6%

128 32%

12 8%

22 24%

15 7%

151 38%

5 4%

7 6%

17 22% 3 4%

10 23%

5 10%

172 43%

36 42%

129 45%

39 38%

15 36%

73 51%

30 36%

17 40%

3 41%

49 40%

50 55%

62 41%

3 28%

99 46%

68 45%

58 45%

48 39%

43 41%

87 45%

59 49%

45 40%

31 40%

18 39%

5 1%

1 1%

1 -

3 3%

2 1%

2 2%

3 2%

4 2%

3 2%

1 1%

3 2%

5 5%

4 2%

6 2%

1 1%

2 1%

3 2%

1 2%

2 2%

2 3%

4 3%

M E E T I N G S T R E E T

121

2 1%

R E S E A R C H

3 1%

2 1%

1 1%

1 -

2 2%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 7-5 QUESTION 5: And, as you look to 2019, do you project your company's profitability to increase or decrease compared to 2018, or will it probably stay the same? BANNER 5

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE -------------TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10%

STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

PAGE 37

212 53%

145 36%

108 27%

181 45%

84 39%

76 52%

49 46%

146 36% 36 9%

93 23%

88 22%

18 4%

18 5%

63 30% 20 10%

69 47% 7 5%

37 17%

36 25%

9 4%

3 2%

47 22%

11 5%

39 27%

4 3%

92 23%

79 20%

71 18%

319 80%

33 47%

145 45%

37 34%

39 42%

34 42%

29 41%

13 12%

7 7%

6 7%

4 5%

46 50%

40 50%

81 20%

62 16%

82 20%

154 39%

40 49%

70 45%

116 36%

30 37%

23 37%

34 42%

29 9%

6 8%

5 8%

6 7%

36 45%

28 45%

9 10%

20 28%

77 24%

16 19%

14 22%

23 28%

34 22%

6 6%

4 4%

3 4%

14 4%

4 4%

2 3%

4 4%

8 5%

6 6%

3 3%

3 4%

13 19%

1 2%

67 21%

15 5%

21 26%

3 4%

14 23%

3 5%

17 21% 2 3%

147 46%

14 9%

17 21%

23 29%

37 42%

28 33%

23 25%

320 80%

55 36%

22 20%

27 25%

87 22%

36 23% 6 4%

18 21%

18 21% 3 3%

6 7%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

113 35%

16 38%

22 41%

34 34%

16 31%

33 33%

75 34%

34 11%

2 5%

2 3%

9 9%

6 12%

12 12%

22 10%

83 26%

19 43% 3 8%

63 20%

15 35%

16 5%

2 5%

18 5%

24 44%

43 43%

12 23%

23 23%

4 4%

12 21% 2 3%

22 42% 10 19%

45 45% 20 20%

96 44%

53 24%

20 20%

12 24%

25 25%

43 20%

5 5%

3 6%

7 7%

11 5%

3 6%

5 5%

11 5%

172 43%

97 46%

57 39%

43 40%

39 43%

33 41%

33 46%

136 43%

36 44%

27 43%

35 42%

66 43%

38 44%

133 42%

21 48%

26 49%

45 45%

23 46%

41 41%

92 42%

5 1%

4 2%

2 2%

3 3%

2 2%

3 1%

2 2%

2 1%

1 1%

2 1%

2 5%

2 2%

4 2%

6 2%

6 3%

3 2%

1 2%

6 2%

1 1%

3 4%

2 1%

2 3%

5 2%

2 3%

2 2%

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 8-1 QUESTION 6: And, as you look to 2019, do you project your company's capital expenditures to increase or decrease compared to 2018, or will they probably stay the same? BANNER 1

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10%

INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

PAGE 38

123 31%

140 35%

26 19%

46 33%

87 22%

18 20%

28 32%

48 12%

43 11%

82 20%

18 37%

10 24%

22 27%

12 26%

-1 -2%

6 7%

62 15%

20 14%

10 11%

5 11%

11 26%

16 19%

46 11%

14 10%

10 12%

7 15%

3 6%

39 10%

13 9%

6 6%

3 6%

78 19%

23 6%

32 22%

7 5%

17 20%

4 5%

11 22%

3 5%

208 52%

72 51%

45 52%

25 52%

3 1%

1 1%

2 2%

4 1%

2 1%

3 3%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

44 17 22 16 22 26 12 23 19% 10% 13% 15% 22% 13% 11% 30% M E E T I N G S T R E E T R E S E A R C H 74 50 48 33 38 56 33 35 32% 29% 29% 30% 38% 28% 28% 44%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

29 31%

30 31%

19 32%

17 36%

28 28%

95 32%

46 30%

14 24%

9 20%

21 21%

57 19%

30 19%

25 23%

2 5%

5 5%

10 6%

6 6%

14 16%

18 18%

6 10%

14 29%

30 13%

32 19%

26 15%

17 15%

16 16%

30 15%

20 17%

11 14%

14 16%

12 13%

13 22%

11 13%

25 11%

21 12%

20 12%

9 8%

15 15%

22 11%

9 7%

15 19%

10 10%

13 14%

5 8%

7 16%

9 20%

9 11%

18 8%

21 12%

17 10%

7 7%

12 12%

19 9%

12 10%

8 11%

12 13%

8 8%

6 9%

1 2%

4 2%

1 -

3 3%

2 1%

2 2%

7 17%

3 6%

21 50% -

11 13%

6 8%

49 21%

11 5%

44 54%

117 52%

3 1%

29 17%

12 7%

90 52% -

28 17%

8 5%

24 22%

9 9%

92 55%

55 51%

M E E T I N G S T R E E T

122

23 23%

4 4%

34 17%

11 6%

46 46%

114 56%

24 20%

8 7%

64 54% 1 1%

R E S E A R C H

19 24%

3 3%

30 37% 2 2%

19 21%

3 3%

17 18%

3 6%

14 14%

12 16%

27 17%

17 16%

5 15%

11 14%

13 12%

1 4%

8 11%

4 11%

5 6%

9 9%

30 10%

17 11%

1 1%

3 1%

1 -

48 53%

52 54%

26 43%

27 58%

56 57%

3 3%

3 10%

16 10%

17 6%

151 50% 3 1%

77 19%

20 19%

38 13%

8 13%

2 3%

47 16%

33 8%

19 12%

7 7%

4 4%

48 16%

107 27% 38 36%

11 11%

8 24%

7 21% 1 3%

23 30%

15 19% 6 7%

83 53%

49 46%

20 61%

42 54%

2 3%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 8-2 QUESTION 6: And, as you look to 2019, do you project your company's capital expenditures to increase or decrease compared to 2018, or will they probably stay the same? BANNER 2

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10%

INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 61 15%

123 31%

201 50%

43 21%

68 34%

171 43%

22 13%

51 30%

372 93%

21 5%

65 17%

-3 -14%

119 32%

3 14%

155 39%

73 37%

41 26%

49 25%

10 6%

21 5%

181 45%

4 18%

58 32%

15 25%

46 31%

82 35%

40 22%

10 16%

27 18%

59 25%

8 4%

9 16%

-2 -9%

35 20%

62 15%

25 13%

29 17%

54 15%

6 29%

24 12%

31 20%

6 27%

23 12%

46 11%

24 12%

20 11%

44 12%

2 9%

23 12%

21 13%

18 10%

39 10%

18 9%

15 9%

32 9%

6 29%

16 8%

17 11%

6 27%

4 1%

1 3%

3 1%

78 19% 23 6%

44 22% 8 4%

31 18% 14 8%

75 20% 22 6%

208 52%

104 52%

88 51%

192 52%

3 1%

2 1%

1 -

3 1%

4 1%

1 -

3 2%

1 6% -

PAGE 39

50 26% 8 4%

11 54%

96 49%

20 13% 14 9%

83 54%

4 18% -

59 15%

-2 -3%

16 28%

150 37%

24 16%

22 15%

236 59%

7 12%

17 11%

3 2%

1 1%

1 -

2 10%

14 11%

53 29%

12 9%

22 17%

1 5%

20 15%

17 7%

10 43%

12 9%

1 -

11 5%

79 53%

125 53%

2 1%

68 37%

11 51%

14 8%

28 47%

34 27%

27 12%

23 10%

97 53%

3 15%

-8 -36%

19 13%

12 56%

129 32%

55 23%

5 9%

5 3%

22 6%

2 8%

10 8%

181 45%

172 43%

5 15% 2 6%

48 27%

-6 -17%

19 11%

11 32%

123 31%

62 15%

208 52%

49 12%

48 28%

123 100%

21 12%

78 63%

17 10%

31 18%

123 -62 100% -100%

18 12%

20 9%

2 72%

13 9%

1 -

16 10%

39 63%

1 1%

3 2%

93 51%

19 53%

90 52%

2 72% -

11 30%

71 55%

32 14%

23 37%

59 25% 11 5%

208 100%

49 100%

110 47%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 8-3 QUESTION 6: And, as you look to 2019, do you project your company's capital expenditures to increase or decrease compared to 2018, or will they probably stay the same? BANNER 3

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10%

STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

123 31%

33 36%

87 29%

65 32%

52 35%

45 38%

78 19%

21 23%

56 19%

43 21%

39 26%

30 25%

61 15% 62 15%

46 11% 23 6%

39 10%

14 15% 20 21%

12 13% 5 5%

15 16%

45 15% 42 14%

31 11% 18 6%

24 8%

37 18% 28 14%

22 11% 10 5%

18 9%

31 21% 21 14%

13 9%

6 4%

16 10%

33 28% 12 10%

15 12%

4 4%

7 6%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

27 9 45 23 28 22 4 23 28% 9% 17% 14% 17% 13% 5% 16% M 37 E E T 26 I N G 85 S T R 51 E E T 53R E 46 S E A 22 R C H 46 38% 26% 31% 30% 31% 27% 30% 31% 10 10%

17 17%

39 14%

27 16%

25 15%

24 14%

18 25%

22 15%

9 10%

12 11%

27 10%

18 11%

20 12%

16 9%

9 13%

17 11%

27 29%

4 4%

6 6%

14 14%

6 6%

11 11%

58 21%

14 5%

26 9%

33 19%

12 7%

15 9%

33 19%

10 6%

15 9%

31 18%

12 17%

8 5%

7 10%

16 9%

10 15%

29 20%

7 5%

16 11%

146 36%

147 37%

47 32%

30 21%

27 18%

20 14%

17 11%

4 3%

16 11%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----72 18%

74 18%

73 18%

196 49%

53 36%

15 33%

24 34%

20 27%

21 29%

73 38%

46 23%

36 24%

7 16%

15 21%

15 20%

11 15%

48 25%

29 15%

7 5%

1 2%

22 15%

18 12% 15 10%

12 26%

3 7%

8 17% 2 5%

14 20% 10 14%

10 13%

5 6%

15 21%

5 7%

3 5%

8 11%

6 9%

7 10%

7 10% 14 19%

10 13%

6 9%

8 10%

43 22% 31 16%

25 13%

12 6%

2 1%

103 51%

74 49%

59 49%

48 51%

58 57%

145 53%

91 53%

90 53%

98 57%

32 45%

77 52%

76 52%

71 48%

27 56%

35 49%

36 48%

34 47%

87 45%

3 1%

3 2%

1 -

2 1%

3 2%

1 1%

2 4%

2 3%

2 1%

3 1%

1 1%

3 3%

1 1%

4 2%

1 -

M E E T I N G S T R E E T

123

1 1%

2 1%

R E S E A R C H

1 1%

3 4%

2 3%

16 8%

10 5%

2 1%

164 55%

30 15%

20 10%

39 43%

4 1%

15 8%

19 9%

208 52%

25 17%

17 12% 12 8%

1 28%

85 57%

3 2%

PAGE 40

47 12%

31 21%

10 7%

28 12%

12 7%

15 9%

35 24%

-2 -72%

87 37%

46 37%

1 2%

56 24%

27 16%

148 37%

3 1%

62 100%

3 9%

7 4%

233 58%

14 8%

8 35%

2 2%

36 9%

117 60% 1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 8-4 QUESTION 6: And, as you look to 2019, do you project your company's capital expenditures to increase or decrease compared to 2018, or will they probably stay the same? BANNER 4

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE --------------

TOTAL DECREASE --------------

INCREASE BY MORE THAN 10%

INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10% STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

87 22%

285 71%

103 26%

123 31%

25 29%

92 32%

30 30%

61 15%

8 9%

44 16%

16 16%

43 11%

144 36%

83 21%

16 38%

44 31%

20 24%

8 19%

21 14%

5 6%

42 11%

8 19%

15 35%

7 2%

122 31%

2 33%

36 29%

1 20%

19 16%

93 23%

149 37%

31 34%

13 14%

10 2%

214 54%

151 38%

128 32%

45 30%

4 43%

66 31%

56 37%

43 34%

29 20%

3 32%

41 19%

38 25%

29 22%

28 23%

25 23%

41 21%

21 18%

15 13%

18 23%

9 6%

8 6%

6 5%

6 6%

10 5%

13 11%

5 5%

6 7%

65 54%

19 13%

4 43%

17 14%

11 10%

27 14%

15 18%

7 16%

1 12%

16 13%

18 20%

26 18%

46 11%

5 5%

36 13%

10 9%

4 10%

18 12%

9 10%

4 9%

11 9%

16 17%

16 11%

1 12%

25 12%

18 12%

13 15%

31 11%

8 8%

5 12%

15 11%

9 11%

12 10%

11 12%

15 10%

23 11%

13 8%

15 11%

1 1%

2 2%

23 6%

39 10%

4 4%

17 6%

6 6%

3 7%

8 6%

11 13% 5 6%

11 26%

2 33%

1 2%

1 12%

6 14%

25 20% 4 4%

15 17% 8 8%

11 7%

14 7%

208 52%

43 49%

144 50%

54 52%

17 41%

72 50%

49 59%

21 49%

4 55%

68 55%

43 46%

74 50%

5 57%

108 50%

71 47%

3 1%

3 3%

2 1%

2 2%

3 1%

2 1%

4 1%

2 3%

2 1%

2 2%

1 2%

3 2%

1 1%

3 2%

1 -

31 25%

22 17%

24 16%

27 19%

64 34%

37 19%

8 19%

12 28%

120 30%

29 27%

14 14%

21 20%

191 48%

26 21%

48 17%

56 20%

21 14%

106 27%

21 16%

17 19%

20 23%

37 17%

35 23%

62 15%

78 19%

29 14%

125 31%

15 11%

43 34%

15 12% 11 9%

39 37%

14 14% 4 4%

23 12% 18 9%

60 47%

62 50%

53 50%

93 49%

1 1%

2 2%

3 3%

3 1%

1 1%

3 2%

114 28%

77 19%

46 12%

38 34%

24 31%

8 16%

6 5%

21 19%

24 20%

17 15%

9 8%

23 21%

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) TOTAL INCREASE -------------TOTAL DECREASE --------------

INCREASE BY MORE THAN 10% INCREASE BY LESS THAN 10% DECREASE BY LESS THAN 10% DECREASE BY MORE THAN 10%

STAY THE SAME TOO SOON TO SAY/DON'T KNOW REFUSED

212 53%

145 36%

123 31%

63 30%

78 19%

38 18%

61 15%

62 15%

46 11%

23 6%

39 10%

26 12%

37 17%

25 12%

13 6%

24 11%

108 27%

92 23%

37 25%

37 34%

26 29%

29 36%

28 19%

21 19%

15 16%

15 18%

14 19%

4 5%

3 4%

16 11%

21 14%

9 6%

7 5%

16 15%

4 3%

18 20%

11 13%

6 7%

12 11%

12 13%

2 1%

108 51%

85 58%

3 1%

1 1%

2 1%

15 14%

8 9%

14 9%

208 52% 4 1%

21 20%

53 49% 3 3%

79 20%

20 26%

8 11%

14 18% 5 6%

71 18%

319 80%

81 20%

7 9%

55 17%

82 20%

154 39%

87 22%

320 80%

10 13%

38 12%

4 5%

218 42%

20 46%

13 24%

37 37%

11 22%

29 29%

72 33%

11 11%

44 20%

20 13%

15 18%

50 16%

6 14%

8 15%

15 15%

15 29%

18 18%

28 13%

8 10%

4 7%

14 17%

15 10%

9 10%

30 10%

10 24%

4 8%

19 19%

4 7%

12 12%

24 11%

21 6%

2 3%

16 25%

3 4%

16 19%

7 8%

5 6%

8 12%

8 10%

1 2%

1 1%

41 57%

160 50%

48 59%

1 -

2 2%

3 1%

100 19%

-4 -7%

15 19%

42 53%

1 1%

51 10%

10 17%

15 18%

34 11%

100 19%

23 23%

31 50%

10 7%

9 6%

11 12%

3 3%

13 15%

58 18%

20 6%

31 10%

10 22%

8 16%

1 2%

6 10%

5 11%

2 4%

18 18% 6 6%

8 8%

7 15% 3 5%

12 24%

17 17% 8 8%

10 10%

48 22% 10 4%

18 8%

37 45%

84 55%

49 57%

178 56%

15 36%

33 60%

46 46%

25 49%

51 51%

112 51%

2 1%

1 1%

1 -

2 5%

2 2%

3 1%

M E E T I N G S T R E E T

124

32 21%

1 1%

2 2%

R E S E A R C H

2 1%

1 1%

2 2%

5 10%

1 1%

54 10%

5 9%

5 10%

1 1%

43 11%

14 32%

6 8%

7 9%

63 20%

47 51%

62 16%

16 46 16 9 15 27 4 38 23% 14% 19% 15% 18% 18% 4% 12% M 23 E E T101 I N G 23 S T R 20 E E T 30R E 47 S E A 19 R C H 89 32% 32% 28% 32% 36% 30% 22% 28%

8 18%

10 13%

57 51%

4 2%

-1 -2%

16 20%

12 10%

8 11%

12 10%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 8-5 QUESTION 6: And, as you look to 2019, do you project your company's capital expenditures to increase or decrease compared to 2018, or will they probably stay the same? BANNER 5

PAGE 41

37 48% -

3 6%

4 8%

30 65% -

PAGE 42

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 9-1 Summary of Concerns: % 10 BANNER 1

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE

ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS

DEVELOPING FUTURE LEADERS ECONOMIC AND GLOBAL UNCERTAINTY

COMPETITION FROM FOREIGN SOURCES

GETTING YOUR PRODUCTS TO MARKET

85 21%

79 20%

140 35%

46 33%

36 26%

87 22%

27 31%

15 17%

48 12%

16 33%

13 26%

25 18%

14 17%

44 11%

18 13%

11 13%

6 13%

12 6%

6 8%

1 1%

52 13%

32 8%

23 6%

7 3%

22 16%

13 9%

8 6%

4 6%

8 9%

10 12% 4 4%

2 5%

15 32%

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE

43 11%

8 19%

7 17%

9 22%

82 20%

31 38%

14 17%

15 18%

6 13%

5 13%

10 13%

4 9%

1 2%

3 4%

8 16%

2 5%

40 17%

34 20%

40 23%

23 10%

9 5%

7 6%

1 2%

3 3%

55 32%

22 13%

4 10%

1 2%

172 43%

30 13%

1 5%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- -----

12 5%

6 5%

166 42%

64 38%

20 12%

35 21%

400 100% 128 32%

201 50%

55 27%

171 43%

64 37%

372 93%

119 32%

21 5%

6 29%

196 49%

53 27%

80 22%

4 21%

37 19%

RETAINING QUALIFIED WORKERS

52 13%

29 14%

19 11%

48 13%

3 17%

22 11%

32 8%

18 9%

3 13%

14 7%

10 6% 5 6%

79 20%

44 11%

39 19%

30 17%

69 18%

9 44%

16 8%

21 12%

37 10%

6 31%

11 6%

29 8%

34 18%

155 39%

56 36%

41 26%

21 5%

5 24%

3 13%

181 45%

62 34%

42 23%

5 5%

9 14%

10 21%

18 18%

62 21%

39 25%

26 25%

2 6%

9 12%

7 11%

2 4%

17 11%

13 12%

1 2%

12 16%

9 10%

8 8%

5 5%

3 9%

4 10%

4 8%

2 3%

21 22%

10 11%

2 3%

7 6%

21 27%

5 6%

2 3%

9 9%

17 28%

8 18%

16 16%

70 23%

31 20%

25 23%

12 12%

40 13%

18 12%

4 7%

1 2%

6 6%

26 9%

12 8%

13 12%

2 6%

3 5%

1 3%

13 8%

7 7%

2 6%

2 5%

1 2%

12 12%

7 14%

3 6%

6 6%

33 11% 5 3%

17 6%

4 2%

4 5% 3 4%

14 13%

3 9%

3 6%

5 8% 3 6%

2 6%

1 6%

27 18%

69 29%

47 20%

10 45%

6 28%

129 32%

44 34%

32 25%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

31 17%

7 18%

47 27%

34 28%

17 28%

34 16%

12 24%

60 26%

21 12%

3 7%

27 16%

20 16%

6 10%

26 12%

10 21%

4 11%

13 8%

10 8%

7 11%

14 7%

2 3%

8 7%

2 3%

13 6%

1 1%

52 29% 29 16%

12 34%

4 6%

4 4%

3 12%

6 5%

1 2%

3 3%

6 6%

1 1%

5 5%

10 5%

10 6%

2 9%

12 7%

8 13%

4 7%

12 8%

5 3%

20 9%

16 7%

4 16%

8 6%

6 5%

15 8%

13 38%

2 15%

4 18%

43 29%

22 6%

5 5%

7 4%

19 5%

17 28%

236 59%

5 6%

3 3%

10 6%

21 36%

150 37%

1 2%

4 4%

8 4%

59 15%

14 11%

7 3%

23 6%

14 8%

12 7%

8 23%

1 3%

59 34%

36 21%

19 11% 6 7%

8 5%

4 4%

34 28%

25 20%

15 12% 3 4%

2 3%

23 37%

10 16% 4 6%

3 10%

69 33%

44 21%

26 13% 7 7%

5 4%

18 37%

71 30%

12 25%

40 17%

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

31 33%

94 32%

58 29%

44 29%

35 30%

30 32%

37 37%

92 34%

62 37%

74 44%

63 37%

17 24%

42 28%

29 20%

40 27%

79 20%

21 22%

58 19%

39 19%

31 21%

26 22%

27 28%

22 22%

56 20%

38 22%

34 20%

41 24%

14 20%

28 19%

29 20%

26 18%

52 13%

23 25%

12 13%

62 21%

39 13%

45 22%

30 15%

35 23%

20 14%

32 27%

21 18%

44 11%

9 10%

35 12%

20 10%

15 10%

12 10%

12 6%

3 5%

9 7%

4 4%

4 6%

7 3%

2 4%

4 4%

2 2%

32 8% 23 6%

5 6% 7 8%

27 9% 16 5%

5 3%

19 9% 10 5%

5 3% 7 4%

3 4%

2 7%

1 1%

3 6%

23 10%

2 6%

4 4%

25 26%

17 17%

51 19%

42 25%

39 23%

41 24%

26 37%

33 23%

15 11 33 26 25 24 15 22 M15% E E T11% I N G12% S T R15% E E T15%R E14% S E A22% R C H15% 11 11%

10 10%

31 11%

18 11%

21 12%

8 12%

18 12%

4 7%

4 9%

3 7%

8 6%

5 6%

6 7%

4 11%

2 3%

3 5%

2 2%

1 2%

9 8% 8 6%

7 8% 5 5%

9 9% 7 7%

19 7% 14 5%

5 4%

17 10% 13 8%

3 3%

125

19 11% 15 9%

3 4%

16 10% 10 6%

7 10% 4 5%

33 23%

24 17%

32 22%

19 13%

13 9%

14 10%

6 8%

4 6%

2 2%

3 4%

7 5%

5 3%

7 5%

4 3%

3 1%

148 37%

24 16%

2 52% -

52 35%

38 25%

20 13%

19 8%

12 8%

13 6%

4 3%

21 14%

8 11%

3 4%

10 7%

PAGE 45

128 32%

85 21%

16 20%

31 13%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 9-3 Summary of Concerns: % 10

23 29%

PAGE 44

5 21%

GETTING YOUR PRODUCTS TO MARKET

14 7%

6 17%

23 10%

6 8%

COMPETITION FROM FOREIGN SOURCES

1 1%

9 8%

77 19%

32 30%

20 14%

2 14%

ECONOMIC AND GLOBAL UNCERTAINTY

4 4%

18 9%

33 8%

61 39%

11 18%

14 15%

107 27%

98 33%

12 12%

8 10%

157 39%

30 30%

16 18%

10 8%

299 75%

12 27%

20 25%

26 29%

100 25%

16 27%

21 22%

13 16%

46 12%

32 33%

22 24%

6 10%

12 7%

7 10%

DEVELOPING FUTURE LEADERS

1 2%

14 12%

36 39%

60 15%

29 36%

16 9%

2 9%

3 3%

RETAINING QUALIFIED WORKERS

6 6%

22 19%

18 9%

12 15%

97 24%

1 4%

16 10%

4 34%

COSTS OF EMPLOYEE SALARIES AND BENEFITS

7 7%

27 23%

91 23%

22 14%

8 4%

GOVERNMENT POLICIES AND REGULATIONS

3 7%

36 30%

79 20%

15 8%

5 6%

ATTRACTING QUALIFIED WORKERS

26 13%

117 29%

32 5 28 26 22 41 5 31 21% M E E 23% T I N G16% S T R44% E E T15%R E18% S E A21% R C H24% 28 1 24 6 21 29 3 20 18% 4% 13% 11% 14% 12% 12% 16%

3 3%

THE COSTS OF HEALTH CARE COVERAGE

8 8%

7 7%

4 7%

29 14%

45 22%

8 7%

3 4%

10 9%

80 39%

16 16%

16 10%

5 6%

12 6%

BASE=TOTAL SAMPLE

38 37%

22 22%

ECONOMIC AND GLOBAL UNCERTAINTY

BANNER 3

21 20%

18 17%

202 51%

32 19%

COMPETITION FROM FOREIGN SOURCES

26 24%

11 10%

24 14%

1 1%

37 34%

101 25%

18 11%

15 9%

11 6%

108 27%

48 24%

DEVELOPING FUTURE LEADERS

51 22%

29 13%

85 21%

COSTS OF EMPLOYEE SALARIES AND BENEFITS

73 32%

7 9%

ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

228 57%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 9-2 Summary of Concerns: % 10 BANNER 2

PAGE 43

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

7 15%

9 12%

13 17%

12 16%

46 24%

39 20%

16 33%

8 16% 2 5%

20 28%

10 14% 2 3%

20 27%

15 20%

21 11%

5 6%

6 8%

14 7%

18 9%

1 3%

2 4%

5 4%

4 9%

1 4%

5 7%

2 5%

43 22%

31 16%

9 13%

6 8%

36 18%

74 38%

8 11%

7 10%

4 9%

11 15%

52 27%

2 2%

4 8%

8 6%

24 32%

4 6%

1 3%

9 12% 2 4%

8 11%

2 6%

22 11% 6 6%

10 5%

2 2%

23 12% 6 6%

13 7%

5 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 9-4 Summary of Concerns: % 10 BANNER 4

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS DEVELOPING FUTURE LEADERS ECONOMIC AND GLOBAL UNCERTAINTY

COMPETITION FROM FOREIGN SOURCES GETTING YOUR PRODUCTS TO MARKET

87 22%

285 71%

103 26%

44 51%

82 29%

3 3%

128 32%

35 40%

79 20%

28 32%

85 21% 52 13%

31 35%

93 33%

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS DEVELOPING FUTURE LEADERS ECONOMIC AND GLOBAL UNCERTAINTY

COMPETITION FROM FOREIGN SOURCES GETTING YOUR PRODUCTS TO MARKET

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE

ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS

7 16%

3 3%

6 15%

44 11%

17 19%

35 12%

6 5%

7 17%

12 6%

5 11%

10 7%

2 4%

3 14%

7 3%

1 2%

6 4%

1 2%

1 4%

32 8% 23 6%

15 18%

9 10%

25 9% 16 6%

6 6%

6 14%

5 11%

83 21%

42 11%

7 2%

122 31%

26 21%

43 30%

26 31%

12 27%

2 30%

20 14%

19 23%

10 24%

23 16%

13 15% 6 7%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

30 32%

28 19%

55 26%

46 31%

35 27%

39 31%

30 28%

66 35%

26 22%

11 9%

14 18%

10 21%

22 17%

27 22%

22 20%

40 21%

11 9%

7 6%

10 13%

5 11%

9 7%

10 8%

9 9%

20 11%

8 7%

5 6%

4 9%

24 19%

22 23%

29 19%

1 11%

43 20%

22 14%

23 18%

4 8%

1 14%

16 13%

11 12%

15 10%

23 11%

15 10%

12 9%

4 6%

4 7%

5 7%

1 2%

2 10%

2 2%

1 3%

1 4%

6 7%

214 54%

2 30%

6 15%

5 7% 4 2%

10 2%

34 37%

10 12%

5 6%

149 37%

40 33%

12 29%

13 9%

93 23%

1 1% -

1 16% -

17 14% 8 7%

4 3%

2 3%

14 16% 10 11%

7 7%

3 6%

49 33%

19 13%

12 8%

1 1%

1 8%

63 29%

34 16%

16 8%

5 5% 12 6% 4 3%

37 25%

23 16%

11 7%

3 4% 8 5% 1 1%

30 23%

1 2% 6 5% 1 1%

36 29% 32 25%

17 13%

5 8% 7 6% 2 3%

31 29% 19 17%

15 14%

4 9% 3 3% 1 2%

48 25% 36 19%

68 56%

41 36%

77 19%

23 30%

22 18%

17 15%

23 12%

15 13%

12 10%

6 6%

3 6%

4 8%

3 11%

2 3%

2 4%

7 4% 3 3%

7 6%

8 7% 3 4%

6 5%

26 34% 7 9%

6 8%

46 12%

13 27% 9 19%

7 14%

2 8% 4 9% 1 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 47

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

85 21%

45 21%

35 24%

17 16%

25 27%

12 16%

23 32%

72 23%

13 17%

6 10%

26 32%

29 19%

21 25%

57 18%

15 35%

11 21%

26 26%

10 20%

19 19%

48 22%

128 32% 79 20%

52 13%

70 33% 38 18%

31 15%

42 29% 24 16%

25 17%

34 31% 19 17%

10 9%

18 19%

14 15%

30 14%

17 12%

12 6%

7 6%

3 4%

3 5%

1 3%

1 1%

4 7%

32 8% 23 6%

7 3%

20 9% 12 6%

4 3%

11 8% 7 5%

10 9%

19 21%

44 11%

4 4%

5 5%

6 6%

5 5%

29 36% 15 19%

8 11%

10 13%

22 31%

101 32%

27 33%

14 23%

34 42%

49 32%

34 11%

11 13%

6 10%

15 19%

15 9%

3 8%

3 10%

11 7%

1 4%

3 8%

5 6%

2 4%

7 4%

1 3%

5 6%

116 36%

14 63 16 11 12 33 21 67 M20% E E T20% I N G20% S T R18% E E T14%R E22% S E A24% R C H21% 8 42 10 7 14 24 5 32 12% 13% 12% 11% 17% 15% 6% 10% 8 11%

3 3%

26 30%

6 8%

3 4%

27 9%

19 6%

4 5%

1 1%

4 7%

8 9%

9 11%

1 2%

4 9%

10 23%

22 41% 13 24%

7 13%

39 39% 27 27%

1 2%

12 12%

22 10%

8 8%

1 2%

5 5%

12 5%

12 12%

2 4%

8 5%

2 10%

1 6%

2 5%

7 4%

4 2%

5 6%

21 7%

2 5%

4 7%

5 10%

38 18%

8 8%

7 12%

3 7%

21 21%

68 31%

19 19%

5 12%

27 8%

9 18%

36 36%

5 11%

36 11%

9 11%

11 21%

19 19%

7 8%

14 9%

5 6%

6 13%

3 7%

3 6% 1 4% -

8 8% 4 9%

1 2%

26 12%

26 12% 6 6%

6 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 48

140 35%

183 46%

63 45%

232 58%

160 40%

150 37%

79 56%

45 32%

60 43%

87 22%

52 60%

31 36%

36 41%

25 29%

41 29%

23 27%

ECONOMIC AND GLOBAL UNCERTAINTY

33 16%

15 19%

8 19%

GETTING YOUR PRODUCTS TO MARKET

35 24%

21 20%

47 17%

117 29%

COMPETITION FROM FOREIGN SOURCES

17 40%

55 19%

COSTS OF EMPLOYEE SALARIES AND BENEFITS

DEVELOPING FUTURE LEADERS

144 36%

16 39%

Table 10-1 Summary of Concerns: % 8-10 BANNER 1

43 11%

31 30%

Table 9-5 Summary of Concerns: % 10 BANNER 5

PAGE 46

92 23%

50 13%

21 10%

32 23%

20 14%

7 11%

24 27%

12 14%

7 17%

48 12%

35 72%

29 60%

24 51%

20 41%

43 11%

21 49%

20 48%

16 37%

17 39%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

40 49%

94 41%

89 52%

58 35%

53 49%

66 65%

74 37%

58 50%

45 55%

39 48%

28 35%

15 31%

13 31%

25 30%

1 5%

3 14%

1 4%

10 21%

10 24% 4 9%

131 58%

101 59%

97 58%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

48 50%

29 48%

19 42%

28 28%

155 52%

65 41%

25 41%

14 30%

28 28%

122 41%

53 34%

22 23%

19 31%

6 13%

17 17%

75 25%

37 24%

14 14%

4 7%

6 13%

12 13%

38 13%

23 15%

81 79 67 44 40 85 45 30 36% 46% 40% 40% 40% 42% 39% 38% M E85 E T I65 N G S52 T R E42 E T 48 R E S65 E A R42 C H 43 37% 38% 31% 39% 48% 32% 36% 54%

45 50%

40 41%

24 39%

27 30%

27 28%

18 30%

39 43%

36 37%

6 16%

23 19%

10 12%

14 16%

10 19%

7 16%

17 17%

8 14%

7 19%

10 23%

9 16%

5 11%

14 13%

7 7%

13 16%

6 10%

2 3%

15 15%

5 8%

1 3%

9 19%

3 6%

4 5%

32 14%

36 21%

18 11%

36 21%

23 14%

26 24%

16 15%

126

26 26% 8 7%

41 20%

29 14%

30 26%

16 14%

24 30%

42 46%

53 30%

56 24%

35 30%

51 64%

65 28%

16 19%

59 29%

71 60%

97 24%

54 55%

29 29%

119 59%

91 23%

53 59%

37 34%

54 53%

79 20%

42 53%

43 26%

67 62%

21 26% 5 7%

24 27%

11 13%

33 55%

4 11% 1 3%

24 53%

17 36%

11 23% 1 6%

2 10%

49 49%

34 34%

26 27% 12 24%

8 17%

182 61% 127 42%

91 30% 20 14% 13 8%

94 60%

66 42%

33 8%

77 19%

54 51%

16 48%

35 46%

44 41%

8 25%

34 44%

64 60%

50 47%

19 59%

12 36%

42 54%

22 28%

44 28%

31 30%

9 28%

30 39%

9 11%

12 21%

3 17%

7 21%

8 10%

30 28%

16 15% 8 16%

4 12%

3 9%

2 12%

16 20%

7 9% 3 7%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 10-2 Summary of Concerns: % 8-10 BANNER 2

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE

ATTRACTING QUALIFIED WORKERS

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 232 58%

183 46%

201 50%

114 57%

96 48%

171 43%

103 60%

76 44%

372 93%

216 58%

172 46%

21 5%

13 63%

9 42%

PAGE 49

111 57%

87 45%

155 39%

91 59%

79 51%

21 5%

14 65%

10 46%

181 45%

109 60%

80 44%

59 15%

45 76%

32 54%

150 37%

71 48%

67 45%

236 59%

132 56%

109 46%

22 6%

16 72%

12 53%

129 32%

77 60%

61 47%

181 45%

95 52%

83 46%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

17 47%

82 48%

66 53%

33 53%

85 41%

18 37%

10 28%

73 42%

52 42%

26 42%

70 34%

20 40%

95 41%

10 29%

44 26%

28 23%

23 38%

39 19%

9 19%

55 24%

1 41%

33 22%

4 11%

24 14%

17 14%

2 3%

31 15%

4 9%

21 14%

23 65%

GOVERNMENT POLICIES AND REGULATIONS

160 40%

79 40%

68 40%

147 40%

12 56%

82 42%

61 39%

6 27%

61 34%

35 59%

59 39%

96 41%

6 28%

55 43%

68 37%

15 42%

COSTS OF EMPLOYEE SALARIES AND BENEFITS

117 29%

56 28%

51 30%

108 29%

8 40%

51 26%

53 34%

5 26%

46 25%

24 40%

46 30%

70 30%

8 37%

34 26%

48 27%

14 38%

ECONOMIC AND GLOBAL UNCERTAINTY

33 16%

11 12%

15 17%

26 14%

6 50%

9 10%

17 23%

5 39%

12 15%

5 16%

15 20%

14 12%

5 40%

12 19%

9 10%

7 29%

GETTING YOUR PRODUCTS TO MARKET

21 10%

10 10%

11 13%

21 11%

13 13%

RETAINING QUALIFIED WORKERS

DEVELOPING FUTURE LEADERS

COMPETITION FROM FOREIGN SOURCES

150 37% 92 23%

50 13%

79 39%

49 24%

21 10%

61 35%

35 20%

23 14%

139 37% 84 22%

44 12%

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS DEVELOPING FUTURE LEADERS

8 36%

5 22%

70 36%

45 23%

21 11%

64 41%

39 25%

19 12%

5 6%

9 42%

6 27%

5 24%

1 12%

68 38%

42 23%

20 11%

11 11%

21 35%

15 25%

14 23%

2 8%

60 40%

32 22% 13 9%

6 8%

90 38%

50 21%

33 14%

16 13%

6 28%

7 32% 1 5%

51 40%

34 26%

14 11%

5 7%

64 36%

36 20%

21 11%

12 12%

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

183 46%

46 49%

135 45%

97 48%

76 50%

60 51%

50 52%

37 36%

82 41%

61 40%

56 47%

232 58% 160 40%

150 37%

117 29%

92 23%

54 58% 34 37%

30 32%

27 29%

22 24%

173 58% 122 41%

117 39%

89 30%

69 23%

113 56% 83 41%

56 28%

49 24%

88 58%

62 41%

49 33%

34 23%

69 58%

48 40%

39 33%

32 27%

58 60%

60 60%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

122 45%

82 48%

80 47%

84 49%

167 61%

101 60%

109 65%

102 60%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

39 56%

74 50%

74 51%

71 48%

57 39%

52 35%

37 51%

85 57%

45 40 112 77 70 75 27 57 M47% E E T40% I N G41% S T R46% E E T41%R E44% S E A38% R C H39% 41 28 109 73 70 70 28 57 43% 28% 40% 43% 42% 41% 39% 39% 27 29%

24 24%

78 28%

50 30%

54 32%

53 31%

28 40%

48 33%

25 26%

19 19%

62 23%

47 28%

48 28%

51 30%

20 28%

31 21%

76 52%

57 39%

39 27%

28 19%

139 60%

22 46%

90 39%

117 50%

10 19%

67 29%

4 14%

16 14%

10 9%

40 27%

24 16%

16 20%

5 15%

16 21%

13 17%

12 17%

GETTING YOUR PRODUCTS TO MARKET

21 10%

3 7%

18 12%

13 14%

7 9%

7 10%

8 16%

3 5%

19 14%

12 14%

10 13%

8 9%

1 2%

6 8%

7 9%

8 11%

25 13%

17 11%

15 13%

10 11%

9 9%

35 13%

23 13%

25 15%

29 17%

5 6%

16 11%

10 7%

73 18%

196 49%

25 35%

91 46%

25 34%

14 17%

41 14%

74 18%

31 42%

13 15%

9 10%

72 18%

23 32%

24 17%

50 13%

47 12%

20 42%

8 16%

29 13%

3 1%

148 37%

2 52%

85 58%

64 43%

61 41%

50 34%

48 33%

16 24%

1 37%

9 11%

10 7%

17 35%

10 22%

10 21%

7 15%

3 14%

7 16%

1 4%

24 33%

18 24%

17 24%

12 16%

3 9%

9 13%

3 7%

25 33%

19 26%

21 28%

14 19%

5 13%

12 17%

4 10%

26 36%

22 31%

17 23%

4 10%

10 14%

5 14%

196 49%

103 53%

124 63%

76 39%

84 43%

82 42%

56 29%

46 24%

14 15%

17 9%

10 10%

86 44%

67 34%

61 31%

45 23%

18 18%

32 16%

10 10%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 10-4 Summary of Concerns: % 8-10

PAGE 51

87 22%

285 71%

103 26%

68 79%

170 59%

12 12%

232 58%

59 68%

160 40%

46 53%

183 46% 150 37%

56 64%

COSTS OF EMPLOYEE SALARIES AND BENEFITS

117 29%

36 41%

ECONOMIC AND GLOBAL UNCERTAINTY

33 16%

GETTING YOUR PRODUCTS TO MARKET

21 10%

COMPETITION FROM FOREIGN SOURCES

233 58%

29 58%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

60 41%

9 19%

DEVELOPING FUTURE LEADERS

9 9%

41 56%

7 13%

RETAINING QUALIFIED WORKERS

5 14%

15 15%

40 54%

9 13%

GOVERNMENT POLICIES AND REGULATIONS

7 12%

6 21%

56 27%

40 56%

17 16%

ATTRACTING QUALIFIED WORKERS

11 17%

21 33%

83 40%

24 50%

26 18%

THE COSTS OF HEALTH CARE COVERAGE

9 11%

39 32%

24 39%

121 58%

86 58%

6 13%

BASE=TOTAL SAMPLE

17 20%

51 42%

39 63%

PAGE 50

33 16%

BANNER 4

52 30%

ECONOMIC AND GLOBAL UNCERTAINTY

COMPETITION FROM FOREIGN SOURCES

74 43%

69 56%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 10-3 Summary of Concerns: % 8-10 BANNER 3

9 43%

109 64%

92 23%

50 13%

176 62% 122 43%

128 45%

43 11%

144 36%

30 71%

72 50%

51 50%

23 55%

35 34%

22 52%

19 19%

23 55%

88 61% 51 35%

62 43%

83 21%

48 57%

33 40%

42 11%

21 49%

22 52%

7 2%

122 31%

2 27%

57 46%

4 59%

75 61%

93 23%

149 37%

58 63%

62 41%

59 64%

83 56%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

1 8%

106 50%

86 57%

64 50%

78 63%

65 61%

127 67%

59 49%

37 33%

31 40%

19 41%

3 26%

113 53%

37 18 50 43R E 59 86 M44% E E T42% I N G47% S3T R41% E E T46% S E A11% R1C H40% 40% 25 30%

13 31%

2 27%

44 36%

38 41%

58 39%

1 12%

86 40%

85 56%

52 35%

66 44%

70 55%

53 41%

14 18%

12 25%

13 10%

20 16%

14 13%

23 12%

15 13%

14 12%

13 17%

7 16%

50 33%

39 30%

11 26%

27 20%

5 9%

5 23%

12 18%

9 18%

3 19%

14 22%

6 13%

11 17%

18 18%

12 17%

7 12%

4 9%

17 11%

4 9%

2 9%

8 11%

2 6%

2 8%

18 21%

37 13%

10 10%

10 24%

10 7%

13 15%

4 10%

1 16%

12 10%

7 11%

127

18 19%

8 18%

17 11%

5 6%

2 22%

56 26%

24 11%

14 12%

38 25%

21 14%

7 8%

11 24%

19 17%

64 30%

1 12%

24 31%

26 22%

1 11%

32 22%

27 24%

62 32%

41 27%

30 32%

13 28%

30 28%

28 30%

24 20%

44 57%

36 29%

41 33%

1 13%

43 38%

36 28%

3 44%

10 24%

24 51%

28 25%

11 27%

16 20%

44 56%

45 37%

24 28%

37 26%

50 41%

60 53%

99 52%

44 31%

13 31%

76 40%

99 82%

52 49%

16 38%

15 14%

45 43%

104 55%

62 50%

15 15%

75 26%

58 46%

58 54%

53 41%

98 34%

31 36%

72 58%

6 8%

44 35%

12 18%

4 7%

41 39%

10 22%

6 10%

65 34%

15 16%

7 8%

41 34%

9 15%

4 6%

12 21%

7 12%

27 35%

8 25%

7 15%

19 41%

5 22%

4 15%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 10-5 Summary of Concerns: % 8-10 BANNER 5

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

36 42%

38 53%

183 57%

49 61%

26 41%

52 64%

101 66%

160 40%

80 38%

59 41%

40 37%

32 35%

29 36%

31 44%

131 41%

30 37%

19 31%

28 34%

89 28%

28 34%

13 21%

3 8%

6 20%

3 7%

1 3%

183 46%

150 37%

94 44%

77 36%

73 50%

63 43%

47 44%

34 31%

53 58%

37 47%

35 38%

28 36%

42 59%

26 36%

152 48% 124 39%

23 32%

ECONOMIC AND GLOBAL UNCERTAINTY

33 16%

19 18%

7 11%

11 22%

4 10%

5 16%

4 16%

29 18%

GETTING YOUR PRODUCTS TO MARKET

21 10%

12 11%

8 10%

8 14%

5 9%

6 12%

5 11%

18 11%

92 23%

50 13%

50 23%

25 12%

35 24% 12 9%

21 20% 16 15%

21 23%

9 12%

12 13%

10 13%

23 32% 8 11%

79 25%

43 13%

31 39%

26 32%

13 16%

8 9%

25 41%

16 25%

11 17%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

132 41%

30 70%

29 53%

54 54%

26 50%

51 51%

89 41%

45 52%

190 59%

71 46%

37 43%

130 41%

15 35%

25 46%

53 53%

20 40%

51 51%

79 36%

35 42%

50 32%

15 18%

93 29%

15 35%

20 37%

32 32%

15 29%

28 28%

59 27%

6 17%

16 20%

4 8%

25 16%

4 21%

2 8%

44 54%

33 41%

21 26%

13 16%

9 20%

69 45%

35 23%

14 9% 6 8%

28 33%

22 25%

10 11% 4 8%

107 34%

71 22%

45 14%

20 12%

24 56%

23 52% 12 29%

4 9%

1 4%

36 66%

23 43%

65 65%

41 41%

25 49%

20 38%

12 23%

29 29%

12 24%

6 12%

22 22%

4 7%

10 20%

8 17%

64 64%

37 37%

23 23%

4 15%

11 23%

1 4%

4 8%

7 7%

123 57%

79 36%

51 24%

22 19%

31 14% 14 13%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 11-1 Summary of Concerns: % Mean

GOVERNMENT POLICIES AND REGULATIONS

71 46%

49 62%

25 31%

ATTRACTING QUALIFIED WORKERS

87 22%

56 62%

30 32%

THE COSTS OF HEALTH CARE COVERAGE

154 39%

61 57%

28 26%

BASE=TOTAL SAMPLE

82 20%

81 56%

46 32%

BANNER 1

62 16%

116 55%

65 30%

COMPETITION FROM FOREIGN SOURCES

81 20%

232 58%

117 29%

DEVELOPING FUTURE LEADERS

PAGE 52

PAGE 53

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

7.3

6.6

5.6

7.1

6.3

7.5

7.3

7.4

8.0

7.1

7.8

7.3

7.7

7.3

7.8

7.3

7.4

7.7

7.4

7.7

7.4

6.7

6.2

7.4

6.6

6.9

6.5

7.0

5.8

7.1

7.9

6.0

7.0

7.9

6.6

6.8

7.2

6.9

7.7

7.6

7.5

77 19%

7.1

6.7

6.9

7.4

6.4

6.2

6.7

6.9

6.5

6.0

5.9

6.6

6.5

6.7

5.8

6.1

RETAINING QUALIFIED WORKERS

6.0

6.2

5.3

6.0

6.1

5.9

6.1

5.3

6.2

6.9

5.4

6.2

7.1

6.2

5.9

6.0

6.7

6.0

5.7

5.5

5.2

5.1

6.2

6.1

5.6

5.7

6.3

6.1

5.9

5.8

6.3

DEVELOPING FUTURE LEADERS

5.3

5.2

5.4

5.2

5.5

5.0

5.3

5.2

4.9

5.5

5.6

4.9

5.6

5.4

6.0

4.6

4.9

5.4

5.1

5.8

5.2

COSTS OF EMPLOYEE SALARIES AND BENEFITS ECONOMIC AND GLOBAL UNCERTAINTY

COMPETITION FROM FOREIGN SOURCES

GETTING YOUR PRODUCTS TO MARKET

5.9

5.7

6.1

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE

ATTRACTING QUALIFIED WORKERS

GOVERNMENT POLICIES AND REGULATIONS

RETAINING QUALIFIED WORKERS

COSTS OF EMPLOYEE SALARIES AND BENEFITS DEVELOPING FUTURE LEADERS

ECONOMIC AND GLOBAL UNCERTAINTY

COMPETITION FROM FOREIGN SOURCES

GETTING YOUR PRODUCTS TO MARKET

6.0

5.8

5.9

5.4

6.1

6.2

5.6

6.1

6.4

6.1

5.1

5.2

5.5

4.1

4.9

5.2

5.3

4.8

5.4

5.0

5.2

5.5

5.6

5.2

3.7

3.8

3.6

4.0

4.1

3.1

3.7

3.6

3.4

4.0

3.6

3.9

3.5

4.0

3.3

3.7

3.6

3.7

3.8

3.6

3.4

3.9

3.6

3.7

3.8

3.3

3.5

3.7

3.5

3.9

3.4

3.6

3.8

3.4

3.6

4.4

3.0

3.5

3.9

3.4

3.7

3.8

3.9

3.8

3.2

5.2

4.1

5.7

4.9

4.8

5.4

5.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 11-2 Summary of Concerns: % Mean

BANNER 2

5.6

M 6.2 E E T 6.7 I N G 6.1 S T R 6.6 E E T 6.6 R E 6.4 S E A 6.3 R C H 6.6

7.5

33 8%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

5.6

PAGE 54

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

6.3

6.2

3.4

6.1

7.5

7.0

7.3

7.7

7.1

7.6

8.2

7.0

7.3

8.0

7.6

7.1

7.3

6.7

7.1

6.6

7.0

5.6

6.7

7.2

6.5

6.7

6.8

6.7

6.5

6.9

7.2

6.9

6.3 5.7 6.1 7.4 6.4 6.4 5.9 6.5 M E E T I N G S T R E E T R E S E A R C H 6.3 5.5 5.9 5.8 6.2 6.1 5.2 6.0

6.2

6.7

6.4

6.3

6.4

6.6

6.4

2.5

6.6

6.0

5.4

6.1

6.3

5.7

5.8

6.1

6.3

2.1

5.6

5.3

5.4

5.9

5.0

4.6

5.5

3.9

4.9

6.5

6.4

7.0

6.5

6.0

5.9

6.7

5.8

5.9

5.6

6.1

5.8

7.1

5.7

6.1

5.6

5.7

6.4

5.8

5.9

6.0

5.9

5.7

6.1

5.3

5.4

5.1

5.3

5.8

5.3

5.7

5.3

5.2

5.3

5.8

5.2

5.4

4.8

5.5

6.0

5.5

4.9

5.9

5.4

4.8

6.1

6.0

5.8

5.4

6.0

2.5

7.4

5.8

5.1

4.6

5.5

5.0

7.3

5.5

5.1

5.0

5.2

5.0

6.0

5.5

3.7

3.6

3.7

3.6

3.9

3.6

4.2

3.6

4.1

3.5

3.8

3.2

3.4

3.5

3.6

3.8

4.0

3.0

3.6

3.0

3.8

2.0

3.6

3.5

3.9

3.7

3.4

3.7

3.4

4.0

3.5

4.0

3.5

3.8

3.1

3.4

3.7

2.6

3.7

4.3

3.8

3.2

2.2

3.7

4.4

3.5

128

4.9

6.1

7.8

6.7

7.7 6.6

6.3

7.5

7.2

7.3 6.8

5.9

7.7

7.6

7.5

6.4

7.4

148 37%

6.7

6.0

7.9

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 11-3 Summary of Concerns: % Mean

BANNER 3

BASE=TOTAL SAMPLE

7.6

92 23%

298 74%

202 50%

151 38%

119 30% 7.6

7.7

95 24%

101 25%

ATTRACTING QUALIFIED WORKERS

6.7

7.0

6.6

7.0

7.3

GOVERNMENT POLICIES AND REGULATIONS

6.4

6.6

6.7

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS

6.0

5.9

5.5

6.1

6.4

6.2

6.5

DEVELOPING FUTURE LEADERS

5.3

5.2

5.3

5.5

5.2

COMPETITION FROM FOREIGN SOURCES

3.7

3.9

3.6

3.9

3.6

3.1

3.8

4.2

THE COSTS OF HEALTH CARE COVERAGE

ECONOMIC AND GLOBAL UNCERTAINTY

GETTING YOUR PRODUCTS TO MARKET

400 100%

5.1

5.8 5.1

7.4

6.0 5.1

7.5

6.1 5.2

BASE=TOTAL SAMPLE THE COSTS OF HEALTH CARE COVERAGE

ATTRACTING QUALIFIED WORKERS

7.5

7.7

7.5

7.4

7.6

7.2

7.6

7.2

7.3

72 18%

74 18%

73 18%

196 49%

6.1

6.6

6.8

6.7

7.5

7.2

7.1

6.0

5.5

5.7

5.8

6.9

6.4

7.0

6.1

6.4

6.3

6.6

6.4

6.2

6.0

6.5

5.9

6.3

6.6

6.5

5.3

6.0

6.1

6.2

6.0

6.6

6.3

6.2

4.8

5.0

5.3

6.2

5.7

5.6

5.0

5.2

5.3

5.4

5.5

5.9

5.4

5.2

4.3

4.4

4.9

4.8

4.7

4.8

4.9

5.5

5.1

3.8

4.1

4.0

2.9

3.7

3.8

3.9

4.0

3.2

3.6

3.5

4.0

3.5

3.6

3.4

3.7

4.1

3.9

4.7

2.8

3.9

3.8

3.7

3.4

3.0

3.5

3.6

4.0

3.1

3.6

3.8

3.7

3.9

3.4

6.1 4.9

6.2 5.2

6.2 5.5

7.5

5.3 4.9

5.9 5.3

170 42%

6.0 5.0

169 42%

6.0 5.1

171 43%

5.8 5.3

71 18%

6.3

5.1

147 37%

6.2

5.5

146 36%

6.0

5.3

147 37%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

7.5

7.6

274 68%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

6.1

47 12%

5.4

5.0

7.3

5.3

7.2

5.6 4.8

7.3

6.0 5.3

7.7

5.8 5.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 11-4 Summary of Concerns: % Mean

BANNER 4

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 55

PAGE 56

87 22%

8.1

285 71%

7.7

103 26%

6.8

43 11%

7.9

144 36%

7.8

83 21%

7.1

42 11% 7.2

7 2%

6.5

122 31% 7.7

93 23% 7.7

149 37% 7.4

10 2%

5.4

214 54% 7.3

151 38% 7.5

128 32% 7.4

125 31% 7.5

106 27% 7.6

191 48% 7.4

120 30% 8.8

114 28%

77 19%

46 12%

7.0

7.7

7.1

6.7

8.6

7.5

4.5

8.1

7.2

6.0

7.2

5.4

6.7

7.6

6.6

4.7

6.9

7.6

7.2

7.8

7.7

8.0

6.8

5.7

6.8

5.9

GOVERNMENT POLICIES AND REGULATIONS

6.4

7.1

6.6

6.0

6.7

6.3

6.6

5.3

6.5

6.7

6.3

5.9

6.5

6.3

6.5

6.9

6.4

6.2

7.4

5.5

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS

6.0

5.9

7.5

6.6

4.4

6.8

6.5

M5.3 E E T6.1 I N G4.4 S T R5.9 E E T6.3R E6.0 S E A4.3 R C H6.2 5.9 6.0 4.9 6.1 6.2 5.7 4.0 6.0

6.7

6.6

6.9

7.1

6.5

6.4

6.3

5.7

6.0

5.4

DEVELOPING FUTURE LEADERS

5.3

6.1

5.6

4.4

6.1

5.5

4.9

5.7

5.8

6.0

5.2

4.6

5.4

4.7

COMPETITION FROM FOREIGN SOURCES

3.7

4.5

3.7

3.6

5.0

3.4

3.7

3.3

2.6

3.2

4.3

3.8

4.1

3.7

4.0

3.9

4.1

4.0

3.7

3.6

3.8

4.2

3.7

3.6

3.4

3.7

3.5

3.7

3.2

3.6

3.1

3.8

4.0

3.4

4.0

3.9

3.6

3.7

3.6

3.4

4.2

4.1

ECONOMIC AND GLOBAL UNCERTAINTY

GETTING YOUR PRODUCTS TO MARKET

5.1

6.7 5.6

6.3 5.3

4.8 4.8

BASE=TOTAL SAMPLE

5.1

6.1 5.4

5.1

5.6 5.1

3.9 5.7

5.1 5.4

5.8 5.1

5.2 5.0

5.2 5.2

5.5 5.1

6.2

5.5

6.1

5.3

6.2 5.3

5.8

7.0

5.2

5.9

5.2

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 11-5 Summary of Concerns: % Mean BANNER 5

6.4

145 36%

108 27% 7.5

7.4

7.6

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

ATTRACTING QUALIFIED WORKERS

6.7

6.5

7.0

6.6

7.3

6.6

7.7

6.8

6.3

6.0

7.3

6.7

6.6

6.4

8.1

7.0

7.3

6.7

6.9

6.5

GOVERNMENT POLICIES AND REGULATIONS

6.4

6.2

6.4

6.2

6.5

6.4

6.8

6.5

6.1

6.2

6.1

6.6

6.5

6.4

6.6

7.0

6.8

6.9

6.2

RETAINING QUALIFIED WORKERS COSTS OF EMPLOYEE SALARIES AND BENEFITS

6.0 5.9

5.8

6.4

5.7

6.0

6.4 6.0 5.6 5.2 6.5 6.2 5.6 5.7 M6.3 E E T5.9 I N G6.0 S T R5.4 E E T6.8R E5.9 S E A5.5 R C H5.8

6.7

6.3

6.2

6.3

6.1

6.3

5.8

DEVELOPING FUTURE LEADERS

5.3

5.4 5.3

5.4

4.8

4.9

5.3

4.9

4.6

5.7

5.6

5.3

4.6

4.9

5.6

5.3

4.6

5.0

5.8

5.2

5.0

5.4

5.5

5.4

5.3

COMPETITION FROM FOREIGN SOURCES

3.7

3.8

3.5

4.3

3.5

3.7

3.4

3.7

3.5

3.9

4.2

3.2

3.6

3.7

4.1

3.6

4.4

3.7

3.5

3.7

3.6

3.8

3.4

4.1

3.6

3.9

3.6

3.7

3.4

2.9

4.4

3.5

3.6

3.2

4.1

3.4

3.3

3.8

ECONOMIC AND GLOBAL UNCERTAINTY

GETTING YOUR PRODUCTS TO MARKET

7.5

5.1

7.3

5.9

7.6

6.4

5.9

92 23%

6.0

6.1

7.6

6.1

7.5

5.4

7.5

4.7

6.3

4.7

129

8.1

5.4

7.8

5.3

7.2

5.5

7.5

5.2

7.3

5.3

6.1

6.0

5.6

5.7

PAGE 57

400 100%

THE COSTS OF HEALTH CARE COVERAGE

5.2

7.8

7.9

6.0 5.2

7.2

5.8 4.7

7.9

6.0 5.5

7.3

5.8 5.3

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 58 Table 12-1 QUESTION 7: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Competition from foreign sources BANNER 1

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 ------

140 35%

87 22%

50 13%

20 14%

12 14%

23 6%

8 6%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

33 8%

77 19%

10 21%

4 9%

4 5%

32 14%

18 11%

23 14%

16 15%

8 7%

29 14%

16 14%

5 7%

11 13%

14 14%

4 7%

6 13%

12 13%

38 13%

23 15%

16 15%

3 9%

7 9%

4 4%

8 16%

1 2%

3 3%

12 5%

11 6%

10 6%

6 6%

4 4%

14 7%

7 6%

2 3%

8 8%

5 5%

3 5%

1 3%

6 6%

17 6%

13 8%

5 - 7 -----

88 22%

31 22%

17 20%

6 12%

16 37%

18 23%

48 21%

40 23%

26 16%

29 27%

27 27%

38 19%

28 24%

22 28%

17 19%

24 25%

14 24%

10 22%

18 18%

70 23%

33 21%

9 2%

5 4%

2 2%

1 2%

7 3%

2 1%

5 3%

3 3%

2 2%

5 2%

4 4%

2 2%

6 6%

2 2%

7 2%

2 1%

1 - 4 ----8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

257 64% 18 5%

22 5%

17 4%

90 64% 6 5%

11 8%

2 1%

57 65% 6 7%

4 8% 2 4%

6 13%

6 7%

18 13%

9 11%

54 13%

22 16%

10 12%

45 11%

132 33% 4 1%

3.7

3.0

9 6%

14 10%

45 32% -

3.8

3.0

2 4%

2 2%

49 12% 27 7%

31 64%

7 7%

12 14%

28 32% 1 1%

3.6

3.0

1 3%

6 12%

18 37% 1 2%

4.0

3.0

23 53% 2 4%

2 4%

57 70% 2 2%

147 64% 13 6%

111 64% 5 3%

3 4%

13 6%

9 22%

10 13%

27 12%

22 13%

6 14%

9 11%

32 14%

5 11% 4 9%

5 12%

8 18% 1 1%

4.1

4.0

5 6%

6 8%

8 10%

33 41% 2 2%

3.1

2.0

8 3%

15 7%

26 11%

73 32%

1 -

3.7

3.0

9 5%

114 69% 8 5%

6 3%

5 3%

63 58%

66 66%

7 7%

2 2%

9 8%

6 6%

5 4%

7 6%

134 66% 10 5%

8 4%

71 61%

52 66%

5 4%

3 4%

10 8%

4 5%

5 4%

4 5%

16 9%

15 14%

14 14%

21 11%

13 11%

14 18%

21 12%

17 10%

14 13%

22 22%

23 11%

14 12%

17 21%

59 34%

71 43%

11 7%

19 11% 3 2%

3.6

3.0

11 7%

15 9% 3 2%

3.4

2.0

5 5%

7 7%

15 14%

11 11%

29 27%

27 26%

4.0

3.6

3.0

M E E T I N G S T R E E T

14 7%

20 10%

77 38%

2 1%

3.6

3.0

8 7%

5 7%

61 67% 2 2%

4 5%

5 5%

59 61% 4 4%

6 6%

4 4%

41 69%

1 2%

5 10%

3 5%

1 2%

2 3%

13 4%

42 55%

8 5%

6 6%

1 3%

3 4%

3 3%

2 6%

10 6%

5 3%

3 3%

4 5%

7 10% 5 7%

40 13%

18 12%

11 11%

3 10%

13 17%

9 10%

16 16%

10 16%

7 14%

16 16%

38 13%

18 12%

16 15%

10 31%

4 5%

18 30%

16 36%

36 36%

55 35%

36 33%

6 18%

24 30%

3.3

3.7

3.6

3.8

3.6

3.4

3.9

7 7%

5 5%

4 6%

2 2%

1 1%

3.5

17 6%

26 33%

25 75%

9 9%

10 16%

3.0

4 4%

14 5%

5 16%

72 68%

5 11%

15 15%

3.9

5 5%

18 17%

98 62%

10 16%

9 10%

3.0

4 4%

188 63%

1 1%

14 15%

8 10%

22 28%

4 9%

69 69%

2 6%

8 9%

17 15%

32 27%

30 65%

7 7%

36 40%

3.5

2.0

23 24%

4.0

3.0

4 9%

3 6% -

3.0

9 9%

18 6%

9 6%

8 8%

36 12%

15 10%

4 1%

2 1%

3.0

96 32%

3.7

3.0

8 7%

13 12% -

3.0

2 6%

7 21%

3.0

6 8%

8 11%

2 2%

4.0

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 59 Table 12-2 QUESTION 7: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Competition from foreign sources BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

50 13%

21 10%

23 14%

44 12%

23 6%

88 22%

8 4%

51 25%

10 6%

34 20%

19 5%

85 23%

21 5%

4 18% 5 22% 2 9%

155 39%

21 11%

19 12%

10 5%

49 25%

10 6%

30 19%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

3 1%

148 37%

5 24%

20 11%

14 23%

13 9%

33 14%

1 5%

14 11%

21 11%

4 11%

24 14%

17 14%

2 3%

31 15%

4 9%

29 13%

21 14%

35 71%

148 64%

3 100%

96 65%

9 4%

2 4%

11 5%

7 5%

7 3%

1 2%

11 5%

6 4%

9 5%

3 6%

2 9%

4 18%

12 7%

37 20%

4 7%

10 17%

5 3%

40 27%

16 7%

55 23%

7 29%

6 5%

24 19%

12 7%

37 20%

1 3%

9 27%

8 5%

40 23%

8 7%

32 26%

2 3%

39 19%

8 16%

8 4%

2 4%

257 64%

128 64%

111 65%

239 64%

14 69%

125 64%

104 67%

12 58%

123 68%

34 58%

95 63%

146 62%

14 62%

88 68%

123 68%

22 62%

105 61%

75 60%

44 71%

18 5%

10 5%

8 5%

18 5%

7 4%

6 4%

2 11%

6 3%

7 11%

4 3%

12 5%

6 4%

6 3%

1 3%

11 7%

9 7%

6 4%

2 10%

7 4%

2 3%

5 3%

6 5%

12 8%

1 7%

17 9%

2 3%

16 9%

13 22%

2 1%

1 2%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

9 2%

22 5% 17 4%

3 1%

13 7%

9 5%

5 3%

8 5%

7 4%

7 2%

22 6%

1 4%

24 7%

2 12%

29 14%

19 11%

47 13%

54 13%

31 15%

22 13%

53 14%

11 6%

13 8%

16 4%

49 12% 27 7%

1 4%

4 2%

12 6%

9 5%

3 2%

6 4%

1 4%

27 14%

18 11%

1 4%

26 13%

26 17%

11 6%

45 11%

20 10%

22 13%

43 11%

3 12%

24 12%

18 12%

4 1%

1 -

3 2%

4 1%

2 1%

132 33%

3.7

3.0

66 33%

3.6

3.0

53 31%

3.7

3.0

119 32%

3.6

3.0

8 41%

3.9

2.0

64 32%

3.6

3.0

48 31%

3.6

3.0

1 5%

2 9%

2 1%

8 4%

21 12%

1 4%

31 17%

10 47%

58 32%

4.2

3.0

3.6

3.0

3 5%

4 3%

4 8%

9 6%

7 5%

5 2%

15 6%

10 4%

1 5%

3 2%

1 5%

2 8%

6 5%

5 4%

3 2%

8 4%

10 6%

2 5%

2 6%

4 2% 12 7%

4 6%

24 16%

31 13%

4 16%

13 10%

19 10%

6 16%

23 13%

3 5%

20 13%

36 15%

2 9%

12 9%

28 15%

4 11%

17 28%

53 35%

71 30%

48 38%

61 34%

13 37%

4.1

2.0

130

8 6%

15 10%

1 1%

3.5

3.0

M E E T I N G S T R E E T

14 6%

1 5%

10 8%

26 11%

2 10%

17 13%

1 -

1 4%

2 2%

3.8

3.0

8 38%

3.2

2.0

3.4

2.0

R E S E A R C H

12 6%

22 12%

1 -

3.5

3.0

2 6%

3 9%

3.6

3.0

9 7%

3 5%

4 7%

135 65%

10 5%

17 13%

8 13%

22 10%

20 12%

19 15%

9 14%

26 12%

53 31%

32 26%

22 36%

75 36%

3.8

4.0

12 7%

20 11%

3 2%

3.0

13 11% 10 8%

4.0

1 1%

15 24%

1 - 4 ----9

13 6%

3 5%

10 16%

1 2%

3.0

2.0

13 6%

55 24% 5 2%

2 5%

13 6%

4 9%

30 13%

3 7%

12 8%

65 28%

1 28%

59 40%

2.0

3.6

2 5%

1 -

2.0

7 5%

1 30%

3 2%

3.0

4 3%

38 16%

14 6%

31 13%

3.0

29 19%

16 11%

7 15%

3.6

10 7%

25 12%

21 43%

3.8

3.0

1 41%

2.0

12 8%

13 9%

2 1%

3.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 60 Table 12-3 QUESTION 7: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Competition from foreign sources BANNER 3

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

50 13%

9 10%

41 14%

25 13%

17 11%

15 13%

10 11%

9 9%

23 6%

7 8%

88 22%

30 32%

9 2%

1 1%

257 64% 18 5%

22 5%

17 4%

53 57% 1 1%

4 4%

7 7%

16 5%

57 19%

196 66% 8 3%

17 6%

11 4%

10 5%

7 4%

8 6%

5 5%

56 28%

42 28%

38 32%

29 30%

6 3%

4 3%

2 2%

119 59% 10 5%

14 7%

13 7%

91 60% 7 4%

64 54% 6 5%

55 58% 4 4%

7 7%

12 12%

78 77%

2 2%

9 6%

6 5%

6 7%

1 1%

7 5%

9 7%

6 6%

1 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

35 13%

23 13%

25 15%

29 17%

14 5%

13 8%

15 9%

61 22%

39 23%

38 23%

7 3%

3 2%

5 3%

175 64%

14 5%

105 62%

103 61%

6 4%

5 3%

18 7%

13 8%

11 7%

10 4%

7 4%

8 5%

10 6%

42 25%

98 57%

7 4%

11 7%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

5 6%

16 11%

10 7%

4 5%

5 3%

4 3%

7 5%

5 10%

4 6%

4 5%

2 3%

11 7%

17 11%

3 6%

4 5%

19 13%

17 11%

7 5%

8 6%

17 12%

2 3%

6 4%

37 12%

30 15%

20 13%

15 13%

14 14%

12 12%

31 11%

18 11%

16 9%

17 10%

13 18%

22 15%

24 17%

132 33%

24 27%

102 34%

58 29%

41 27%

27 23%

22 23%

43 43%

90 33%

55 32%

57 34%

54 32%

27 37%

46 31%

43 30%

3.7

3.9

3.6

3.9

3.8

4.1

4.0

2.9

3.7

3.8

3.9

4.0

3.2

4 1%

3.0

1 1%

3.0

3 1%

3.0

1 1%

3.0

1 1%

3.0

2 2%

4.0

11 12% 1 1%

4.0

17 16% 2 2%

2.0

36 13% 3 1%

3.0

21 12% 4 2%

3.0

20 12% 3 2%

3.0

21 12%

2 1%

3.0

9 4%

1 1%

6 9%

1 1%

3.0

11 8%

17 12%

1 -

3.6 3.0

52 71%

2 3%

15 17%

13 11%

8 4%

50 68%

7 10%

54 13%

18 12%

10 5%

1 1%

49 68%

4 6%

24 16%

17 8%

6 3%

3 2%

29 61%

2 4%

21 14%

39 13%

125 64%

1 2%

8 11%

6 6%

126 65%

2 1%

4 3%

24 14%

45 11%

32 16%

3 2%

6 4%

103 70%

4 5%

6 4%

17 9%

5 3%

20 12%

10 6%

10 14%

1 1%

19 11%

11 6%

12 17%

51 26%

34 12%

18 6%

9 13%

10 14%

10 10%

6 6%

7 16%

10 14%

17 17%

9 9%

196 49%

10 5%

13 19%

23 19%

9 8%

196 49%

8 11%

11 24%

26 17%

13 8%

73 18%

4 6%

33 23%

97 67%

28 14%

15 7%

74 18%

5 7%

38 26%

96 65%

29 10%

19 6%

72 18%

4 9%

35 24%

52 73%

19 21%

7 7%

47 12%

14 19%

49 12%

27 7%

5 4%

11 6%

8 4%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

1 -

3.5 3.0

2 2%

7 14%

8 11%

27 18%

10 21%

14 19%

42 28%

13 28%

3.5

4.0

1 1%

3.0

3 6%

3.0

2 2% 5 6%

3 4%

13 7%

36 18%

8 4%

15 8%

6 3%

5 7%

28 14%

21 11%

14 19%

10 13%

35 18%

17 8%

25 35%

27 36%

31 43%

55 28%

74 38%

3.5

3.6

3.7

6 9%

6 8%

1 1%

3.0

8 11%

1 1%

3.4

2.0

14 7%

22 11%

1 -

3.0

12 6%

22 11% 3 2%

3.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 61 Table 12-4 QUESTION 7: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Competition from foreign sources BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

87 22%

285 71%

103 26%

18 21%

37 13%

10 10%

23 6%

9 10%

88 22%

26 30%

50 13%

16 6%

65 23%

43 11%

144 36%

83 21%

42 11%

10 24%

10 7%

13 15%

6 6%

5 11%

22 22%

13 30%

4 2%

38 26%

6 7%

18 22%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

4 10%

1 16%

12 10%

18 19%

17 11%

2 22%

24 11%

21 14%

13 10%

20 16%

14 13%

23 12%

15 13%

14 12%

13 17%

7 16%

8 20%

1 16% -

4 3%

21 17%

7 7%

23 25%

12 8%

41 27%

1 9%

12 6%

55 26%

8 5%

41 27%

6 5%

38 29%

7 6%

34 27%

3 3%

32 30%

7 4%

45 23%

8 7%

23 19%

6 5%

28 25%

6 8%

20 26%

4 9%

9 20%

1 - 4 -----

257 64%

43 49%

182 64%

68 66%

19 46%

96 67%

52 62%

30 71%

6 84%

88 72%

51 56%

91 61%

7 68%

135 63%

90 59%

77 60%

69 55%

61 57%

121 64%

81 67%

71 62%

44 57%

30 64%

18 5%

4 4%

13 5%

3 3%

4 8%

4 3%

5 6%

3 7%

7 6%

6 7%

3 2%

2 22%

9 4%

9 6%

5 4%

10 8%

7 7%

13 7%

4 3%

5 4%

4 5%

1 2%

10 6%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

9 2%

6 6%

8 3%

22 5%

10 11%

16 6%

49 12%

13 15%

54 13%

9 10%

17 4%

27 7%

4 4%

1 1%

5 11%

23 16%

11 14%

5 11%

37 13%

17 16%

7 16%

21 15%

8 10%

10 24%

91 32%

34 33%

8 18%

45 31%

31 37%

3.7

3.6

5.0

3.4

3.7

19 7%

4 1%

1 1%

3.0

4.5 5.0

3.0

8 8%

9 8%

3 3%

3.0

3 6%

1 3%

8 5%

12 8%

4 9%

18 12%

5.0

3.0

4 5%

1 2%

11 11%

7 7%

7 5%

2 2%

38 13%

10 4%

35 12%

3.7

2 2%

5 13%

10 11% 23 27%

2 4%

5 4%

45 11%

132 33%

1 1%

3 4%

6 7%

1 2%

3 7%

2 4%

2 1%

5 4%

6 5%

11 9%

22 18%

12 13%

45 37%

3.2

3 3%

1 14%

18 15%

1 1%

3.0

3.3 3.0

2.6

1.0

2 2%

13 8%

19 12%

5 11%

5 70%

5 5%

3 2%

17 18%

7 8%

13 31%

4 5%

2.0

4 2%

13 6%

10 5%

3 2%

12 8%

4 3%

2 2%

9 7%

5 4%

4 3%

10 8%

4 3%

6 6%

7 6%

3 2%

10 5%

2 1%

4 3%

6 5%

3 2%

9 8%

6 5%

3 3%

6 7%

6 8%

2 4%

1 9%

33 15%

25 17%

23 18%

20 16%

19 18%

33 17%

13 11%

14 12%

8 11%

5 12%

16 11%

3 27%

32 15%

23 15%

20 16%

13 11%

18 17%

29 15%

17 14%

11 10%

10 13%

4 8%

21 23%

53 36%

2 21%

62 29%

39 26%

30 23%

33 26%

23 22%

54 28%

42 35%

38 33%

18 23%

4.3

3.8

4.1

3.7

4.0

3.9

11 11% 8 9%

1 1%

4.0

M E E T I N G S T R E E T

131

8 5%

14 9%

3.0

2 21% -

4.0

14 7%

27 13%

3.0

R E S E A R C H

10 6%

18 12%

3.0

11 8%

16 13%

3.0

9 7%

14 11%

1 1%

4.1

4.0

6 5%

14 13%

4.0

3.0

15 8%

24 13%

1 1%

3.7

3.0

10 8%

12 10%

1 1%

3.6

3.0

10 9%

11 10%

1 1%

3.8

3.0

4 5%

12 16%

4.2

3.0

3 6%

5 11%

18 39%

3.7

3.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 62 Table 12-5 QUESTION 7: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Competition from foreign sources BANNER 5

BASE=TOTAL SAMPLE

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

8 - 10 ------

50 13%

25 12%

12 9%

16 15%

12 13%

10 13%

8 11%

43 13%

8 9%

11 17%

1 - 4 -----

257 64%

129 61%

93 64%

60 55%

69 75%

53 66%

48 67%

204 64%

53 65%

39 63%

18 5%

10 5%

3 2%

8 7%

5 5%

3 4%

16 5%

2 2%

4 6%

17 4%

10 5%

10 - VERY CONCERNED ------------------5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

23 6%

88 22% 9 2%

22 5%

12 6%

55 26% 3 1%

7 5%

39 27% 2 2%

5 5%

32 29% 3 3%

18 9%

12 8%

10 9%

49 12%

27 13%

22 15%

13 12%

54 13%

26 12%

17 12%

15 14%

132 33%

64 30%

50 34%

24 22%

3.5

4.3

27 7%

45 11% 4 1%

3.7 3.0

13 6%

25 12% 3 1%

3.8 3.0

5 4% 8 6%

17 12% 1 1%

3.0

9 8%

5 5%

10 11% 3 3%

3 4%

1 1%

3 3%

4 5%

16 22% 2 3%

2 2%

1 1%

19 6%

68 21% 7 2%

18 6%

15 5%

4 5%

20 25% 2 2%

4 5%

2 2%

82 20%

154 39%

87 22%

320 80%

43 11%

13 16%

14 9%

10 11%

45 14%

4 9%

49 59%

107 69%

53 62%

205 64%

2 3%

8 5%

3 4%

15 5%

4 7%

9 11%

12 19%

20 24%

3 4%

2 2%

4 6%

1 2%

7 8%

4 5%

4 2%

31 20% 3 2%

7 4% 4 2%

5 6%

22 26% 1 1%

21 7%

66 21% 9 3%

4 5% 8 9%

18 6% 13 4%

54 10%

100 19%

51 10%

100 19%

218 42%

6 12%

22 22%

4 7%

7 7%

31 14%

22 52%

37 68%

53 53%

29 57%

66 66%

141 65%

2 4%

1 2%

12 12%

2 4%

1 1%

13 6%

4 9%

1 2%

2 2%

6 11%

3 3%

4 7%

2 5%

5 10%

17 40%

10 19%

4 9%

10 13%

13 18%

35 11%

14 18%

7 11%

9 11%

21 13%

11 12%

35 11%

10 22%

20 21%

11 14%

7 10%

45 14%

8 10%

10 17%

13 16%

21 13%

6 7%

37 11%

25 35%

105 33%

26 33%

19 31%

22 27%

56 36%

30 35%

109 34%

3.4

3.7

3.5

3.9

4.2

9 10%

9 9%

14 15%

4.0

17 21%

3 4%

6 7%

11 10%

1 1%

5 6%

10 13%

6 8%

26 29%

25 32%

3.5

3.7

3.0

7 10%

9 13% -

3.0

18 6%

36 11% 3 1%

3.0

9 11%

9 11% 1 1%

3.0

4 6%

6 9% 1 1%

3.0

8 9%

6 7%

3.0

10 6%

6 7%

21 13%

12 14%

2 1%

1 1%

3.2 2.0

3.6

3.0

22 7%

37 12%

4 1%

3.7

3.0

1 2%

8 8%

24 24% 2 2%

11 11%

8 15%

12 12%

7 17%

8 15%

9 21%

17 31%

2 5%

4 10%

4.1

4.0

6 10%

7 12%

1 2%

3.6

3.0

1 2%

18 35% 1 2%

2 4%

5 5%

26 26% 1 1%

8 8% 8 8%

12 5%

45 21% 7 3%

13 6% 8 4%

10 20%

11 11%

24 11%

11 11%

6 12%

13 13%

32 15%

29 29%

14 28%

28 28%

71 33%

10 10% 1 1%

4.4

4.0

5 10% 1 1%

3.7

4.0

7 7%

18 18% 1 1%

3.5

3.0

13 6%

25 11% 1 -

3.7

3.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 63 Table 13-1 QUESTION 8: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Government policies and regulations BANNER 1

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

140 35%

87 22%

DON'T KNOW/REFUSED MEAN

MEDIAN

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

16 16%

45 22%

22 19%

13 16%

26 29%

21 22%

9 14%

10 21%

18 18%

62 21%

39 25%

158 40%

66 47%

33 38%

10 21%

20 46%

30 37%

99 43%

60 35%

53 32%

44 41%

50 49%

72 36%

46 39%

41 51%

26 29%

38 40%

31 51%

16 35%

36 37%

122 41%

57 37%

37 35%

12 38%

40 52%

6 7%

3 6%

14 9%

6 6%

1 4%

4 5%

45 32%

36 41%

26 6%

6 13%

4 8%

5 11%

17 12%

9 11%

84 21%

34 24%

21 5%

7 5%

36 9%

10 3%

16 4%

29 7%

15 10%

5 4%

5 3%

16 37%

13 26%

5 5%

38 9%

6 4%

24 51%

39 48%

81 36%

79 46%

67 40%

44 40%

40 40%

46 20%

31 18%

46 28%

19 18%

11 11%

45 22%

25 21%

15 19%

32 14%

23 14%

19 12%

15 14%

19 19%

31 15%

12 11%

19 9%

17 10%

20 10%

12 10%

9 11%

1 2%

6 14%

5 6%

27 12%

19 22%

6 13%

11 26%

14 17%

53 23%

31 18%

23 14%

21 19%

31 31%

3 4%

4 8%

1 2%

6 8%

10 4%

11 6%

9 6%

6 5%

1 1%

4 5%

3 6%

2 5%

4 8%

3 7%

2 5%

45 39%

13 16%

2 4%

5 5%

85 42%

11 14%

2 2%

10 4%

6 3%

9 4%

16 9%

11 7%

4 2%

7 4%

13 8%

15 9% 15 9%

4 2%

12 7%

7 7%

12 11%

5 4%

3 3%

5 5%

10 9%

10 5%

45 50%

40 41%

7 9%

18 20%

19 20%

12 15%

11 12%

12 12%

8 9%

12 12%

6 7%

8 9%

9 7%

8 10%

30 15%

25 22%

28 35%

10 11%

17 18%

6 6%

11 6%

5 5%

4 6%

10 11%

5 5%

9 9%

1 1%

22 11%

10 9%

30 38%

5 2%

9 4%

4 4%

7 6%

5 6%

1 1%

8 8%

1 1%

9 9%

3 3%

24 39%

17 36%

28 29%

49 16%

33 21%

12 19%

6 12%

13 14%

42 14%

13 9%

4 6%

5 10%

10 10%

26 9%

6 9%

1 3%

4 10%

7 7%

14 5%

3 2%

10 10%

3 9%

3 4%

4 7%

10 10%

1 1%

4 1%

2 1%

8 6%

2 2%

7 7%

8 8%

1 2%

5 10%

6.4

6.2

6.7

6.2

6.7

6.1

6.6

6.4

6.3

6.6

6.9

6.5

6.0

7.0

6.0

7.0

8.0

7.0

6.0

7.0

6.0

7.0

M E E T I N G S T R E E T

132

6.0

7.0

6.0

R E S E A R C H

2 2%

6.0

2 2%

8.0

7.0

1 1%

6.0

3 3%

1 2%

20 10%

2 2%

8 10%

21 27%

3 3%

2 6%

9 26%

6 5%

9 9%

19 18%

21 13%

1 1%

9 12%

27 17%

9 5%

9 26%

68 23%

21 9%

2 1%

18 17%

16 16%

3 7%

6.0

7 2%

6 2%

13 9%

13 17%

8 17%

27 9%

8 23%

22 28%

22 36%

5 6%

2 1%

24 8%

19 18%

12 36%

11 11%

1 2%

2 2%

50 47%

9 12%

4 8%

3 6%

2 4%

66 42%

13 29%

10 11%

1 2%

127 42%

5 9%

11 8%

34 34%

2 6%

77 19%

21 20%

160 40%

26 25%

33 8%

35 21%

17 19%

101 25%

40 23%

15 10%

1 - NOT AT ALL CONCERNED

108 27%

40 17%

55 14%

166 42%

15 18%

172 43%

9 22%

18 21%

228 57%

15 32%

28 20%

82 20%

14 17%

77 19%

43 11%

25 18%

1 - 4 ----9

48 12%

79 20%

17 11%

6 4%

9 6%

9 8%

4 3%

2 6%

1 3%

4 5%

2 2%

7 7%

22 7%

16 10%

5 5% 1 -

1 3%

2 3%

5.9

6.6

6.5

6.7

5.8

6.1

6.0

2 1%

7.0

3 9%

11 14%

5.0

4 5%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 64 Table 13-2 QUESTION 8: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Government policies and regulations BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 79 20%

160 40%

158 40%

201 50%

39 19%

79 40%

78 39%

171 43%

30 17%

68 40%

73 43%

372 93%

69 18%

147 40%

151 41%

21 5%

9 44%

12 56%

5 22%

34 18%

82 42%

78 40%

155 39%

32 21%

61 39%

60 39%

21 5%

5 23%

6 27%

9 44%

181 45%

28 16%

61 34%

78 43%

59 15%

26 44%

35 59%

15 25%

150 37%

22 15%

59 39%

64 43%

236 59%

41 18%

96 41%

93 39%

22 6%

5 21%

6 28%

11 51%

129 32%

31 24%

55 43%

47 37%

181 45%

29 16%

68 37%

70 39%

36 9%

12 34%

15 42%

10 29%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

3 1%

148 37%

22 46%

90 39%

64 43%

36 21%

25 20%

10 16%

44 21%

12 25%

73 42%

47 38%

25 41%

81 39%

17 35%

101 43%

1 24%

3 6%

17 7%

74 43%

51 42%

24 39%

83 40%

40 17%

1 - 4 -----

77 19%

42 21%

30 17%

72 19%

5 22%

34 17%

32 21%

6 29%

40 22%

9 16%

27 18%

45 19%

5 21%

26 20%

41 23%

10 29%

24 14%

25 20%

12 20%

40 19%

10 20%

55 14%

29 15%

24 14%

53 14%

2 9%

31 16%

21 13%

1 4%

21 12%

6 9%

26 17%

37 16%

2 7%

16 13%

29 16%

2 5%

24 14%

15 12%

9 15%

31 15%

7 15%

34 15%

15 7%

20 12%

34 9%

1 5%

13 7%

4 7%

17 11%

23 10%

10 8%

23 13%

3 9%

10 6%

12 10%

6 10%

18 9%

4 7%

23 10%

1 24%

5 2%

10 4%

1 30%

1 -

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

26 6%

38 9%

36 9%

11 6%

20 10%

14 8%

17 10%

25 7%

36 10%

1 3%

2 8%

17 9%

20 10% 18 9%

8 5%

13 8%

3 17%

2 10%

12 7%

20 11%

3 6%

5 8%

11 7%

13 9%

17 7%

21 9%

3 12% 2 9%

7 6%

13 10%

10 5%

15 8%

1 3%

3 7%

14 8%

19 11%

12 9%

8 7%

5 8%

4 7%

8 4%

24 12%

5 11%

40 17%

22 9%

84 21%

44 22%

37 22%

80 22%

2 9%

40 21%

34 22%

4 17%

44 24%

6 10%

34 23%

48 20%

7 30%

24 19%

33 18%

5 13%

43 25%

27 22%

14 23%

39 19%

8 17%

21 5%

11 5%

9 6%

20 5%

1 4%

6 3%

11 7%

2 8%

10 6%

1 2%

10 6%

13 6%

8 6%

13 7%

1 3%

7 4%

9 7%

3 5%

9 4%

1 2%

13 6%

29 7%

15 8%

9 5%

25 7%

4 18%

13 6%

10 7%

4 21%

14 8%

7 13%

8 5%

15 6%

4 16%

11 8%

12 6%

6 16%

11 7%

9 7%

4 6%

1 1%

17 8%

6 12%

12 5%

6.2

6.7

6.4

6.3

6.4

6.6

6.4

10 3%

16 4%

4 1%

6.4

7.0

7 3%

9 5%

2 1%

6.3

6.0

4 2%

7 4%

1 -

6.5

6.0

10 3%

16 4%

2 1%

6.4

6.0

7.0

8.0

6 3% 9 5%

2 1%

6.5

7.0

3 2% 7 4%

2 1%

6.3

6.0

5.7

6.0

5 3% 10 6%

3 1%

6.1

6.0

4 3%

1 1%

5 4%

1 1%

7.4

8.0

1 1%

6.4

6.0

5 2%

11 5%

2 1%

6.4

7.0

1 5%

4 3%

5.9

5.0

1 -

6.5

7.0

5 3%

12 7%

2 1%

6.2

6.0

1 3%

3 8%

6.0

5 3%

1 1%

1 -

7.0

3 2%

4 3%

6.0

2 3%

4 6%

6.0

6 3%

8 4%

4 2%

7.0

2 4%

1 2%

7.0

56 24%

6.0

38 25%

54 36%

3 76%

30 20%

19 13%

8 5%

16 11%

26 18%

8 5%

2 46%

2.5

2.0

11 8% 4 3%

5 4%

12 8%

1 -

6.6

7.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 65 Table 13-3 QUESTION 8: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Government policies and regulations BANNER 3

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 -----5 - 7 -----

1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

160 40%

34 37%

122 41%

83 41%

62 41%

48 40%

45 47%

40 40%

79 20%

158 40%

77 19% 26 6%

21 22%

43 46%

15 16% 5 5%

58 19%

112 38%

60 20% 21 7%

39 19%

84 42%

32 16% 13 7%

31 21%

67 45%

26 22%

53 45%

27 28%

35 37%

22 22%

31 31%

21 14%

17 14%

14 15%

29 28%

13 8%

9 7%

7 8%

5 4%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

112 41%

77 46%

70 41%

75 44%

56 20%

100 36%

38 22%

51 30%

34 20%

58 34%

41 24%

64 38%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

27 38%

57 39%

60 41%

14 20%

37 51%

28 19%

70 48%

8 11%

11 15%

9 13%

29 15%

11 7%

2 4%

3 4%

5 6%

4 5%

17 9%

13 7%

4 5%

11 7%

28 9%

21 10%

16 10%

11 9%

8 8%

5 5%

24 9%

16 9%

17 10%

19 11%

8 11%

14 9%

7 4%

5 3%

16 5%

10 5%

5 5%

23 8%

9 4%

16 4%

29 7%

3 3%

4 1%

1 1%

6.4

7.0

6.0

9 3%

13 4%

6 3%

8 4%

13 8%

14 8%

16 11%

15 10%

17 12%

22 31%

40 27%

36 24%

11 7%

5 6%

5 7%

4 8%

8 11%

7 9%

29 20%

12 25%

21 30%

20 28%

4 6%

6 8%

25 13%

16 8%

21 11%

22 30%

44 23%

37 19%

9 4%

18 9%

17 17%

48 18%

22 13%

6 4%

6 5%

6 6%

9 9%

14 5%

11 7%

10 6%

3 2%

2 3%

6 4%

9 6%

14 9%

5 10%

4 5%

2 3%

4 5%

12 6%

3 3%

13 13%

20 7%

17 10%

14 8%

13 8%

3 4%

7 4%

9 6%

7 5%

5 12%

5 7%

8 11%

14 7%

15 8%

6.1

6.4

6.3

6.6

5 3%

6 4%

3 2%

2 2%

6 5%

3 3%

1 1%

6.4

6.6

6.7

7.0

2 2%

5 5%

1 -

6.0

9 3%

15 6%

4 1%

7.0

4 2%

9 5%

8 5%

1 1%

7.0

1 1%

6.3

7.0

M E E T I N G S T R E E T

133

32 19%

7 10%

3 6%

18 19%

4 2%

27 16%

13 8%

9 6%

30 25%

2 1%

7.0

27 10%

10 7%

36 19%

36 24%

3 1%

7.0

15 7%

10 21%

11 6%

8 9%

5 6%

11 6%

25 17%

10 6%

36 9%

2 2%

75 38%

19 13%

19 7%

17 12%

21 5%

84 43%

43 22%

78 40%

39 20%

9 13%

10 3%

76 39%

32 44%

16 22%

21 12%

41 20%

25 34%

32 43%

11 14%

25 15%

52 18%

31 42%

32 45%

16 22%

30 17%

28 30%

23 32%

17 36%

10 21%

36 13%

84 21%

20 42%

30 20%

14 14%

9 9%

196 49%

36 18%

26 18%

11 12%

9 9%

196 49%

11 15%

20 13%

13 11%

73 18%

15 20%

8 11%

18 12%

16 11%

74 18%

10 14%

30 17%

31 15%

23 11%

72 18%

8 16%

39 23%

43 14%

32 11%

57 39%

47 12%

41 24%

8 9%

6 7%

61 42%

26 18%

59 21%

55 14%

38 9%

29 20%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

7 4%

2 1%

6.6

7.0

2 2%

3 2%

1 1%

4 3%

6.6

6.0

1 -

6.6

6.0

R E S E A R C H

4 3% 4 3%

1 1%

6.4

7.0

3 2% 6 4% 1 -

6.4

7.0

6.2

7.0

3 4%

4 5%

1 1%

6.0

5.0

4 5% -

6.5

7.0

2 3%

2 3% -

5.9

5.0

6 3%

8 4%

3 2%

6.0

5 2%

8 4%

1 1%

7.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 66 Table 13-4 QUESTION 8: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Government policies and regulations BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

22 52%

51 35%

37 44%

16 17%

33 22%

13 16%

6 15%

1 16%

16 13%

13 14%

22 15%

7 9%

5 11%

9 9%

15 10%

27 33%

19 45%

7 17%

11 8%

4 5%

1 3%

12 12%

8 20%

MEAN

22 18%

71 49%

43 15%

MEDIAN

4 53%

13 30%

11 12%

1 - NOT AT ALL CONCERNED

5 13%

44 42%

55 14%

DON'T KNOW/REFUSED

59 40%

111 39%

43 46%

29 33%

8 18%

50 41%

158 40%

24 23%

3 47%

7 16%

35 34%

51 18%

18 42%

21 20%

122 43%

12 13%

149 37%

55 19%

46 53%

77 19%

93 23%

28 32%

1 - 4 ----9

122 31%

79 20% 160 40%

26 6% 38 9%

8 9%

24 8%

2 2%

20 14%

84 21%

16 19%

58 20%

26 25%

9 21%

39 27%

12 15%

11 27%

21 5%

2 2%

16 6%

4 4%

1 2%

8 6%

5 6%

29 7%

6 7%

18 6%

10 9%

3 7%

7 5%

4 5%

10 3%

16 4% 4 1%

6.4

7.0

2 2%

2 2% -

7.1

8.0

26 9%

8 3%

9 3%

2 1%

6.6

7.0

10 9%

3 3%

7 7%

1 1%

6.0

1 2%

3 7% -

6.7

8.0

15 11%

17 21%

17 11% 3 2%

3 2% 2 1%

6.3

6.0

8 9%

10 24%

28 10%

7 9%

3 7%

21 15%

19 23%

5 6%

36 9%

8 8%

20 14%

7 2%

4 5%

4 5% 2 2%

6.6

7.0

3 7%

2 30% -

24 19%

49 40% 10 8%

12 10% 9 7%

22 23%

33 36% 8 9%

8 9%

29 19%

56 38% 8 5%

11 8%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

1 11%

86 40%

52 35%

53 41%

58 46%

45 43%

76 40%

50 41%

43 38%

9 8%

33 17%

26 22%

27 24%

10 13%

17 37%

20 18%

28 15%

18 15%

15 13%

13 17%

4 9%

13 12%

9 12%

1 11%

7 72%

43 20%

88 41%

22 14%

70 46%

23 18%

52 41%

32 25%

48 39%

51 48%

9 7%

7 7%

2 18%

40 19%

27 18%

23 18%

18 15%

31 15%

20 14%

22 17%

17 13%

19 9%

20 13%

13 10%

12 5%

4 38%

21 10%

1 12%

10 7%

12 8%

8 6%

11 9%

19 17%

13 11%

14 12%

14 13%

13 12%

36 19%

82 43% 13 7%

120 30%

22 18%

44 36% 10 8%

17 9%

16 13%

14 7%

7 6%

114 28%

77 19%

46 12%

17 15%

26 34%

9 19%

42 37%

23 30%

15 32%

11 10% 9 8%

44 57%

5 6%

6 7%

13 28%

4 8%

28 23%

17 18%

30 20%

2 22%

48 22%

38 25%

28 22%

21 16%

24 22%

51 27%

21 17%

20 17%

8 11%

8 16%

1 2%

1 13%

6 5%

6 6%

9 6%

1 8%

13 6%

8 5%

7 6%

4 3%

4 4%

9 5%

3 3%

9 8%

5 7%

6 13%

3 7%

2 26%

8 7%

8 9%

10 6%

1 10%

11 5%

6 4%

5 4%

2 2%

10 5%

13 11%

10 8%

3 4%

6 12%

6.5

6.9

6.4

6.2

7.4

5.5

1 2%

1 2% -

6.6

6.0

1 14% -

5.3

3.0

3 2%

6 5%

2 2%

1 1%

6.5

7.0

6.7

7.0

6 4%

9 6% 1 -

6.3

6.0

8 4%

5.9

6.0

6.5

6.0

8 5% 6 4%

1 1%

6.3

6.0

6 4% 6 5%

6.0

3 2% 6 5%

1 -

7.0

1 1% 2 2%

2 1%

7.0

4 2% 11 6%

6.0

5 4% 5 4%

1 -

7.0

5 4% 4 4%

2 1%

6.0

1 1% 1 1%

8.0

2 4% 3 7%

1 2%

5.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 67 Table 13-5 QUESTION 8: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Government policies and regulations BANNER 5

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 -----5 - 7 ----1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

130 41%

15 35%

70 22%

4 9%

79 20%

38 18%

24 16%

19 17%

18 19%

15 19%

14 20%

63 20%

16 20%

11 18%

12 14%

33 22%

21 24%

67 21%

158 40%

83 39%

58 40%

42 39%

46 51%

33 41%

27 37%

126 40%

32 40%

27 44%

37 46%

53 34%

36 41%

117 37%

160 40%

77 19%

26 6%

80 38%

46 22%

13 6%

59 41%

26 18%

11 7%

40 37%

23 21%

6 5%

55 14%

29 14%

25 17%

16 15%

36 9%

20 9%

15 11%

38 9%

19 9%

15 10%

84 21%

45 21%

21 5%

13 6%

29 7%

17 8%

10 7%

6.2

6.4

10 3% 16 4% 4 1%

6.4 7.0

4 2%

12 6% 3 1%

6.0

13 15%

7 9%

3 2%

4 5%

9 8%

7.0

3 3%

9 9%

8 7%

4 3%

2 2%

7 7%

18 23%

11 14%

25 23%

6 4%

13 14%

29 36%

8 8%

28 19%

5 3%

32 35%

2 2%

9 8% 2 2%

6.2

6.0

8 8%

14 18%

31 44%

12 16%

7 10%

131 41%

58 18% 24 7%

12 14%

6 8%

31 10%

6 7%

8 11%

31 10%

22 7%

6.5

6.0

6.4

7.0

6.8

7.0

4 1%

6.5

7.0

3 4%

7 9%

6.1

6.0

17 32%

28 28%

23 46%

34 34%

92 42%

6 13%

25 46% 12 22%

4 8%

53 53% 18 18%

9 9%

20 40%

6 11%

3 5%

51 51%

15 15%

9 9%

79 36%

45 21%

10 4%

8 15%

17 17%

8 16%

21 21%

31 14%

9 14%

7 8%

10 7%

10 11%

32 10%

3 6%

3 5%

5 5%

6 11%

8 8%

19 9%

6 4%

13 4%

24 56%

5 13%

4 5%

3 4%

38 18%

43 14%

5 9%

4 6%

20 6%

218 42%

21 21%

12 13%

6 7%

3 4%

5 6%

100 19%

9 18%

27 17%

28 18%

7 2%

13 16%

51 10%

27 27%

10 13%

21 26%

5 5%

2 2%

11 7%

37 43%

100 19%

13 24%

4 6%

11 18%

15 5%

6 7%

31 20%

19 24%

7 9%

5 7%

15 19%

71 46%

65 20%

8 10%

1 1%

14 22%

28 34%

7 11%

1 1%

19 31%

7 9%

13 18%

3 4%

2 3%

44 14%

12 15%

3 3%

19 24%

10 14%

25 28%

3 3%

30 37%

54 10%

4 9%

1 1%

10 12%

1 1%

4 7%

4 5%

3 5%

6 8%

2 3%

6.2

6.0

2 2%

6.1

6.0

M E E T I N G S T R E E T

134

14 9%

9 6% 4 3%

12 8%

6.6

7.0

5 6%

21 24%

30 9%

5 11%

4 7%

9 9%

55 17%

17 39%

11 20%

15 15%

2 2%

17 5%

1 3%

5 10%

8 9%

28 9%

2 4%

9 3%

4 5%

16 5%

6.5

6.0

2 1%

6.4

7.0

R E S E A R C H

1 3% -

6.4

6.0

7 14%

7 7%

25 11%

11 21%

19 19%

49 22%

4 4%

1 2%

3 3%

10 5%

3 5%

5 5%

1 2%

4 4%

20 9%

6.6

7.0

6.8

6.9

6.2

1 2% 3 5% -

7.0

4 4% 5 5%

1 1%

8.0

2 4% 2 4%

2 3%

7.0

3 3% 5 5% -

8.0

6 3% 9 4%

2 1%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 68 Table 14-1 QUESTION 9: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. The costs of health care coverage BANNER 1

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

232 58%

106 26%

140 35%

46 33%

79 56%

37 26%

87 22%

27 31%

52 60%

20 23%

48 12%

16 33%

35 72%

6 14%

50 12%

21 15%

14 16%

60 15%

24 17%

17 20%

6 12%

4 5%

1 3%

44 11%

9 7%

8 9%

44 11%

16 11%

9 10%

40 10%

15 11%

9 2%

22 5%

8 2%

26 6%

12 3% 7.5

8.0

5 10%

13 27%

43 11%

8 19%

21 49%

82 20%

228 57%

172 43%

45 55%

131 58%

101 59%

31 38%

13 31%

29 36%

7 16%

7 9%

6 15%

7 15%

73 32%

55 32%

57 25%

49 28%

17 7%

27 16%

4 5%

35 15%

7 8%

41 18%

19 12%

25 11%

19 11%

7 8%

3 6%

12 15%

22 10%

6 4%

3 4%

9 4%

11 8%

7 9%

3 2%

2 1%

3 2% 7.3

8.0

3 4% -

1 1% 7.4

8.0

2 5%

2 4% 8.0

9.0

1 2%

1 3%

4 9%

2 5% 7.1

8.0

1 1%

2 2%

1 1%

3 4% 7.8

8.0

10 5% 6 3%

2 1%

19 8%

4 2% 7.3

8.0

31 19%

19 11%

8 10%

97 58%

32 19%

9 20%

2 5%

64 38%

15 9%

2 5%

6 4%

166 42%

13 8%

108 27%

101 25%

37 34%

18 17%

67 62%

54 53%

29 27%

40 40%

17 16%

12 12%

11 10%

13 12%

202 51%

80 39%

119 59%

41 20%

117 29%

79 20%

36 30%

12 15%

71 60%

42 53%

91 23%

36 39%

53 59%

33 28%

32 40%

28 30%

19 16%

9 12%

9 9%

16 8%

16 14%

12 15%

5 5%

36 18%

24 24%

24 12%

15 8%

11 10%

3 3%

16 13%

97 24%

32 33%

54 55%

30 31%

8 9%

13 13%

9 10%

15 16%

60 15%

16 27%

46 12%

12 27%

30 30%

16 10%

16 15%

11 32%

12 16%

8 5%

7 6%

3 9%

3 3%

12 15%

10 12%

8 9%

12 12%

32 11%

14 9%

5 8%

9 20%

9 9%

31 10%

14 9%

9 8%

2 7%

8 11%

4 1%

4 3%

2 2%

1 3%

2 2%

17 6%

13 8%

6 3%

2 2%

1 1%

2 2%

2 3%

1 2%

4 4%

4 3%

2 2%

5 6%

8 8%

1 1%

1 2%

9 9%

6 3%

7 4%

8 4% 7.7

8.0

4 3%

19 11% 7 4%

7.3

8.0

2 2%

1 1%

5 5%

2 2%

1 1%

2 2%

7.8

7.3

9.0

8.0

4 2%

20 10% 7 3%

7.4

8.0

3 2%

3 3%

2 2%

3 4%

7.7

7.4

8.0

1 1%

2 2% 7.7

9.0

2 2%

1 1%

7.4

8.0

8 10%

5 11%

1 1%

5 3%

3 9%

13 13%

8 14%

10 17%

4 3%

2 2%

16 15%

2 6%

42 54%

17 11%

3 2%

23 30%

19 59%

37 12%

10 9%

2 2%

11 33%

6 13%

13 14%

81 27%

64 60%

7 7%

18 9%

4 2%

26 25%

13 13%

25 25%

17 16%

2 1%

36 23%

23 15%

11 12%

8 8%

21 27%

28 9%

6 13%

6 6%

6 17%

21 21%

7 11%

8 10%

32 30%

6 12%

14 31%

8 7%

7 6%

61 39%

6 10%

19 31%

14 8%

7 4%

77 19%

94 60%

18 10%

11 11%

33 8%

182 61%

12 12%

7 6%

107 27%

49 49%

14 13%

4 2%

98 33%

157 39%

24 53%

13 8%

12 7%

299 75%

33 55%

7 7%

21 26%

100 25%

6 9% 2 3%

2 3%

7.5

8.0

1 2%

3 7%

2 4%

7.2

8.0

4 4%

3 3%

5 5%

4 4%

6.9

8.0

47 16%

18 6%

5 2%

3 1%

8 3%

7.7

8.0

5 3% 1 -

4 2%

7.6

9.0

11 10%

3 3%

5 16%

4 3%

1 3%

3 3%

1 3%

5 5%

7.5

8.0

7.5

8.0

8 11%

12 16%

2 2%

5 6%

4 6% 7.4

8.0

M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H 2019 STATE OF 2, 2019 PAGE 69 Table 14-2 QUESTION 9: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. The costs of health care coverage BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 128 32%

5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

46 27%

101 27%

4 20%

15 9%

42 11%

17 10%

60 15%

32 16%

22 5%

13 6%

44 11%

27 14%

26 13%

21 5%

6 29%

29 14%

55 27%

372 93%

119 32%

50 12% 44 11%

64 37%

103 60%

171 43%

114 57%

106 26%

55 27%

232 58%

5 - 7 -----

1 - 4 -----

201 50%

5 24%

48 24%

46 30%

2 9%

46 12%

3 17%

31 16%

24 14%

55 15%

5 23%

9 6%

22 6%

42 11%

1 3%

21 5%

56 36%

111 57%

2 10%

155 39%

53 27%

13 63%

17 10%

216 58%

43 29%

45 25%

6 11%

52 35%

12 8%

4 21%

21 12%

32 16%

20 13%

6 28%

32 18%

11 5%

10 7%

23 12%

13 8%

3 13%

15 8%

1 5%

21 11%

150 37%

21 36%

109 60%

14 9%

59 15%

62 34%

14 65%

26 13%

91 59%

181 45%

9 5%

45 76%

236 59%

22 6%

129 32%

181 45%

36 9%

49 12%

233 58%

29 58%

139 60%

4 8%

22 9%

1 30%

22 15%

2 4%

41 18%

18 12%

5 10%

14 6%

13 38%

59 34%

34 28%

23 37%

69 33%

18 37%

66 28%

3 15%

34 26%

52 29%

6 16%

45 26%

35 28%

15 24%

53 25%

15 30%

23 15%

32 14%

3 13%

13 10%

27 15%

7 20%

8 13%

17 11%

37 16%

2 9%

20 15%

27 15%

7 19%

10 6%

26 11%

16 72%

4 17%

77 60%

13 10%

95 52%

16 9%

4 7%

20 13%

26 11%

2 7%

15 11%

19 10%

13 8%

208 52%

52 29%

6 10%

62 15%

44 34%

132 56%

12 8%

123 31%

10 45%

71 48%

16 27%

172 43%

69 29%

13 6%

9 7%

23 65%

109 64%

69 56%

39 63%

121 58%

14 8%

14 12%

8 13%

27 13%

26 15%

24 20%

6 10%

27 13%

3 8%

24 14%

2 5%

21 12%

14 11%

12 7%

10 8%

9 7%

9 15%

24 12%

8 17%

6 10%

21 10%

6 11%

5 8%

8 4%

71 30%

70 30%

27 12%

6 2%

1 30%

12 8%

6.7

7.4

23 15%

1 4%

16 9%

2 4%

20 13%

27 11%

2 8%

11 8%

23 13%

4 11%

13 7%

12 10%

3 5%

24 11%

9 2%

6 3%

2 1%

8 2%

8 4%

5 3%

1 2%

3 2%

8 3%

1 1%

7 4%

2 1%

4 3%

5 2%

26 6%

16 8%

6 4%

22 6%

3 17%

15 8%

7 5%

3 15%

12 7%

3 5%

11 7%

13 6%

2 8%

9 7%

11 6%

5 13%

9 5%

6 5%

4 7%

14 7%

3 5%

9 4%

7.0

7.3

7.7

7.1

7.6

8.2

7.0

7.3

8.0

7.6

7.1

7.3

7.9

7.4

7.7

7.5

7.8

7.6

8 2%

3 1%

5 3%

8 2%

12 3%

3 2%

7 4%

10 3%

7.5

7.3

7.7

7.5

8.0

3 2%

6 3%

8.0

3 2%

5 3%

8.0

1 5%

8.0

4 2%

6 3%

8.0

2 3%

2 1%

8 5%

2 4%

9.0

4 2%

7.0

M E E T I N G S T R E E T

135

5 2%

6 3%

8.0

1 5%

2 1%

1 1%

9.0

5 4%

8.0

R E S E A R C H

4 2%

6 3%

7 4%

8.0

2 6% -

8.0

2 1%

1 1%

4 2%

8.0

2 2%

5 4%

8.0

2 3%

2 3% -

9.0

4 2% 4 2%

7 3%

8.0

15 10%

14 7%

4 2%

35 23%

4 17%

85 58%

27 12%

36 10%

8 2%

1 18%

52 35%

5 9%

20 11%

4 2%

2 52%

148 37%

1 18%

17 8%

4 2%

2 52%

29 12%

40 10%

8 2%

3 1%

1 3%

2 3%

9.0

4 2% 3 1%

2 1%

8.0

10.0

14 9% 8 5%

13 9%

4 3%

2 1% 4 3%

6 4%

8.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 70 Table 14-3 QUESTION 9: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. The costs of health care coverage BANNER 3

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

92 23%

298 74%

202 50%

151 38%

119 30%

54 58%

173 58%

113 56%

88 58%

69 58%

50 12%

10 11%

39 13%

19 10%

16 10%

12 10%

60 15%

16 17%

43 14%

32 16%

26 17%

20 17%

128 32%

31 33%

5 - 7 -----

106 26%

27 29%

44 11%

8 - 10 ------

1 - 4 ----8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

232 58%

7 8%

94 32%

75 25% 37 12%

58 29%

67 33% 23 11%

44 29%

46 31% 17 11%

95 24%

101 25%

58 60%

274 68%

170 42%

169 42%

171 43%

60 60%

167 61%

101 60%

109 65%

102 60%

8 9%

16 15%

38 14%

26 15%

23 14%

24 14%

17 18%

13 12%

41 15%

18 10%

15 9%

21 12%

7 7%

3 3%

13 5%

11 7%

5 2%

3 2%

35 30%

30 32%

36 30%

29 30%

14 12%

10 10%

44 11%

10 11%

33 11%

30 15%

21 14%

17 14%

15 16%

40 10%

9 10%

29 10%

20 10%

13 9%

9 8%

9 2%

2 2%

7 2%

3 1%

2 2%

22 5% 8 2%

8 8% 3 3%

13 4% 5 2%

17 9% 4 2%

12 8% 4 3%

4 2%

10 8% 3 3%

19 7%

1 1%

2 2%

3 3%

1 1%

12 3%

2 2%

10 3%

2 1%

2 2%

1 1%

7.5

8.0

7.6

8.0

7.4

8.0

7.5

8.0

6 4%

7.6

8.0

6 5%

7.6

8.0

34 13%

7 7%

4 2%

9 4%

11 11%

60 22%

6 6%

7 2%

21 7%

17 17%

92 34%

27 10%

1 1%

4 4%

37 37%

8 8%

8 2%

26 6%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

2 2%

38 22%

21 12%

74 44%

32 19%

20 12%

14 8%

13 7%

4 2%

71 18%

147 37%

146 36%

147 37%

37 51%

85 57%

76 52%

86 58%

63 37%

17 24%

43 25%

29 41%

18 11%

4 6%

7 10%

12 17%

51 34%

29 20%

53 37%

18 24%

20 27%

18 24%

61 31%

14 10%

7 14%

11 16%

10 14%

11 14%

24 12%

29 19%

31 21%

26 17%

6 12%

11 16%

12 16%

31 16%

26 13%

9 6%

11 7%

2 4%

2 3%

14 7%

14 10%

23 16%

16 11%

9 12%

3 2%

4 2%

2 2%

2 1%

3 2%

3 4%

5 3%

4 2%

8 8%

9 3%

5 3%

2 1%

1 1%

4 3%

7.5

7.4

8.0

7.5

9.0

7.7

9.0

8.0

4 3%

7.6

8.0

6 4%

7.2

8.0

3 2%

7.6

8.0

2 5%

4 9%

7.2

8.0

7 10%

8 11%

7 16%

2 1%

7 16%

9 12%

16 11%

2 1%

17 11%

2 5%

19 13%

9 6%

26 18%

20 14%

4 3%

7.5

44 22%

15 11%

2 2%

9.0

41 56%

74 38%

11 7%

2 2%

7.5

40 54%

19 13%

15 9%

124 63%

17 36%

40 56%

14 19%

14 8%

103 53%

43 29%

24 50%

14 8%

1 1%

196 49%

52 27%

12 7%

2 1%

196 49%

24 32%

19 11%

7 9%

73 18%

20 27%

3 2%

7.7

74 18%

20 28%

3 2%

15 9%

72 18%

16 33%

3 2%

21 8%

47 12%

40 27%

6 2%

10 10%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

8 5%

9 6%

9 13%

42 28%

2 2%

4 4%

8.0

6 2%

62 37%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

3 4%

2 2%

4 5%

3 4%

7.3

8.0

9 12%

3 4%

5 6%

4 5%

7.3

8.0

5 7%

20 10%

6 8%

24 12%

23 12%

21 11%

10 13%

24 12%

15 7%

2 2%

4 2%

1 2%

8 4%

6 3%

1 1%

2 1%

4 2%

7 9%

3 2%

11 5%

4 6%

15 8%

8 4%

7.2

7.3

8.0

4 2%

7.7

9.0

M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H 2019 STATE OF 2, 2019 PAGE 71 Table 14-4 QUESTION 9: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. The costs of health care coverage BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

87 22%

35 40%

285 71%

93 33%

103 26%

31 30%

93 23%

34 37%

149 37%

49 33%

10 2%

1 8%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

63 29%

37 25%

30 23%

36 29%

31 29%

48 25%

68 56%

114 28%

41 36%

83 56%

3 26%

113 53%

85 56%

70 55%

72 58%

58 54%

104 55%

99 82%

60 53%

50 12%

4 5%

26 9%

21 20%

2 5%

8 5%

17 20%

6 15%

2 26%

10 8%

12 12%

20 14%

4 45%

26 12%

13 9%

15 12%

12 10%

9 8%

18 9%

5 5%

23 20%

42 15%

18 17%

4 9%

2 29%

17 14%

16 17%

20 14%

1 9%

27 12%

26 17%

25 19%

22 18%

16 15%

36 19%

13 10%

11 10%

7 6%

18 8%

11 8%

11 9%

10 8%

10 9%

19 10%

5 4%

3 2%

7 8%

27 9%

13 13%

3 1%

5 5%

MEDIAN

40 33%

59 64%

40 10%

MEAN

122 31%

75 61%

10 10%

DON'T KNOW/REFUSED

2 30%

4 59%

33 11%

1 - NOT AT ALL CONCERNED

7 2%

21 49%

9 10%

12 27%

48 57%

44 11%

42 11%

88 61%

40 14%

26 31%

23 55%

11 13%

83 21%

51 50%

44 11%

43 30%

176 62%

144 36%

59 68%

106 26%

16 39%

232 58%

5 - 7 -----

1 - 4 -----

43 11%

60 15% 22 5%

8 2%

9 2%

8 2%

24 27%

13 15% 8 9%

1 1%

79 28%

19 7%

4 1%

6 2%

26 26% 2 2%

7.7

9.0

8.0

18 13%

5 6%

8 19%

4 9%

19 13%

1 2%

8.1

8.0

5 2%

7 17%

2 2%

7.5

5 12%

1 3%

10 9%

14 33%

11 13%

4 4%

14 5%

16 20%

16 11%

4 10%

6 14%

3 4%

44 30%

3 7%

3 3%

26 6%

12 3%

17 40%

28 20%

11 13%

1 14% -

17 14%

6 6%

13 9%

1 10%

24 11%

15 10%

2 2%

4 2%

2 1%

1 2%

5 5%

1 1%

3 3%

1 1%

2 2%

9 6%

2 23%

4 2%

1 12%

5 3%

5 5%

5 4%

9 10%

3 7%

2 26%

5 4%

6 6%

10 7%

6.8

7.9

7.8

7.1

7.2

6.5

7.7

7.4

8.0

1 2%

8.0

2 2%

8.0

1 1%

8.0

M E E T I N G S T R E E T

136

2 1%

2 3%

21 14%

5 6%

5 3%

23 11%

54 36%

30 14%

1 1%

1 2%

1 8%

72 34%

2 19%

1 14%

3 7%

14 9%

3 29%

19 13%

4 10%

2 2%

10 10%

41 27%

10 11%

4 4%

2 4%

18 14%

20 22%

11 9%

6 4%

8 9%

35 29%

5 3%

8.0

4 2%

5 2%

1 10%

13 6%

4 2%

5.4

5.0

7.3

8.0

R E S E A R C H

28 18%

42 32% 15 12%

19 15%

25 13%

19 16% 10 9%

24 51%

28 25%

25 33%

16 34%

7 6%

10 13%

10 9%

11 15%

6 13%

5 7%

6 13%

11 14%

10 22%

5 6%

1 2%

3 6%

22 12%

1 1%

16 14%

9 12%

7 15%

4 3%

2 2%

4 2%

1 1%

3 2%

15 13%

4 5%

3 7%

8.8

7.0

7.7

7.1

2 1%

7.5

18 17%

20 11%

16 13%

13 27%

11 10%

2 1%

8.0

17 14%

11 10%

66 34%

44 56%

46 12%

13 10%

5 4%

14 11%

39 36%

23 30%

11 9%

4 3%

5 4%

40 32%

77 19%

2 2%

3 2%

4 4%

2 2%

5 2%

2 1%

4 3%

5 4%

1 1%

7 4%

7.4

7.5

7.6

7.4

1 1%

8.0

1 1%

8.0

2 1%

8.0

3 2%

8.0

2 1% -

10.0

3 3%

4 3% 3 2%

8.0

2 2%

3 4%

8.0

1 2%

1 3% 1 2%

8.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 72 Table 14-5 QUESTION 9: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. The costs of health care coverage BANNER 5

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

212 53%

70 33%

145 36%

42 29%

108 27%

34 31%

92 23%

19 21%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

29 36%

22 31%

101 32%

27 33%

14 23%

34 42%

49 32%

26 30%

116 36%

43 11%

6 13%

54 10%

22 41%

100 19%

39 39%

51 10%

11 21%

100 19%

36 36%

218 42%

68 31%

8 - 10 ------

232 58%

116 55%

81 56%

61 57%

56 62%

49 62%

38 53%

183 57%

49 61%

26 41%

52 64%

101 66%

45 52%

190 59%

24 56%

36 66%

65 65%

25 49%

64 64%

123 57%

1 - 4 -----

50 12%

30 14%

10 7%

11 10%

12 13%

11 13%

6 8%

40 13%

10 12%

15 25%

7 8%

11 7%

12 14%

47 15%

3 6%

7 13%

9 9%

6 12%

5 5%

34 15%

5 - 7 ----9 8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

106 26% 44 11%

60 15%

44 11% 22 5%

58 27%

49 34%

21 10%

21 15%

25 12%

17 12%

25 12% 11 5%

33 30% 9 9%

18 12%

19 17%

11 8%

8 8%

13 12%

40 10%

22 10%

21 14%

11 11%

9 2%

4 2%

2 1%

26 6%

15 7%

7.5

7.3

8 2%

12 3%

8.0

5 2%

6 3% 8 4%

8.0

22 24% 18 19%

19 21%

9 10% 7 7%

16 20%

23 32%

9 11%

7 10%

4 5%

10 13%

11 14% 4 5%

9 13% 4 6%

87 27% 38 12%

1 1%

2 2%

6 4%

7 6%

8 9%

4 5%

7.6

7.5

7.4

7.6

2 1% 4 3%

8.0

3 3%

8.0

1 1%

8.0

2 2%

4 5%

8.0

11 13%

16 10%

5 6%

5 8%

3 3%

6 10%

3 4%

33 10%

2 2%

21 14%

19 6%

9 13%

9 12%

38 24%

9 11%

7 11%

35 11%

21 25%

5 8%

16 20%

9 11%

1 1%

6 7%

20 31%

44 14%

7 7%

19 24%

9 11% 5 6%

26 30%

17 39%

35 11%

6 14%

10 12%

32 10%

6 15%

15 10%

11 13%

28 9%

31 20% 6 4%

9 10%

74 23%

10 12% 5 6%

40 12% 14 4%

12 28%

4 10%

7 8%

8 13%

8 2%

1 1%

3 5%

1 1%

2 1%

1 1%

8 2%

1 2%

2 3%

17 5%

9 11%

10 17%

1 1%

7 5%

7 9%

24 8%

2 4%

7.6

7.5

6.3

8.1

7.8

1 1% 1 1%

5 6%

8.0

8 2% 8 2%

9 3%

8.0

3 4%

8.0

1 2%

3 4%

1 2%

2 2%

2 3%

7.0

2 2%

9.0

1 1% 2 1%

4 3%

8.0

3 3%

8 2%

1 2%

7 2%

3 4%

7.2

8.0

9 3%

7.5

8.0

6 14% -

7.3

8.0

8 16%

22 22%

6 12%

16 16%

4 7%

10 10%

3 6%

8 8%

7 14% 1 2%

3 6%

11 11%

18 35%

10 10%

10 19%

11 11%

24 11%

3 5%

11 11%

22 10%

3 3%

9 4%

17 8%

7.3

7 13%

6 11%

2 2%

1 2%

2 2%

1 3%

18 18%

9 9% 1 1%

1 1%

4 7%

4 4%

4 7% 2 4%

7.8

7.9

7.2

7.9

3 5%

9.0

3 3%

9.0

56 26%

8 15%

4 4%

1 1%

31 31%

8.0

16 8%

39 18%

10 5% 6 3%

2 1%

4 2%

8.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 73 Table 15-1 QUESTION 10: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Costs of employee salaries and benefits BANNER 1

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

140 35%

18 13%

87 22%

11 13%

48 12%

43 11%

82 20%

6 13%

2 5%

7 9%

228 57%

172 43%

29 13%

15 9%

166 42%

108 27%

101 25%

24 14%

10 9%

8 8%

202 51%

117 29%

26 13%

10 8%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

8 10%

14 15%

9 9%

7 11%

2 4%

12 12%

33 11%

17 11%

107 27%

13 12%

1 2%

12 16%

117 29%

41 29%

23 27%

15 31%

13 31%

25 30%

65 28%

53 30%

43 26%

37 34%

29 29%

59 29%

35 30%

24 30%

27 30%

27 28%

18 30%

11 23%

26 27%

91 30%

44 28%

1 - 4 -----

89 22%

30 22%

25 29%

8 16%

9 21%

17 21%

55 24%

34 20%

53 32%

21 19%

15 15%

58 29%

20 17%

10 13%

16 18%

18 18%

12 20%

13 29%

38 38%

51 17%

38 24%

18 17%

8 24%

17 22%

54 14%

20 14%

8 9%

5 10%

9 22%

13 16%

27 12%

27 16%

15 9%

19 17%

17 17%

22 11%

20 17%

13 16%

11 12%

14 14%

10 16%

5 10%

13 13%

41 14%

20 13%

15 14%

7 23%

10 13%

8 9%

7 14%

4 9%

6 8%

18 8%

17 10%

16 10%

7 6%

10 10%

20 10%

9 8%

5 7%

6 6%

11 11%

6 10%

6 13%

6 6%

29 10%

17 11%

4 6%

3 6%

6 6%

8 3%

4 2%

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

185 46% 19 5%

68 48% 3 2%

38 43% 5 5%

55 14%

20 14%

14 16%

95 24%

37 27%

22 6%

13 9%

35 9%

14 4%

14 3%

10 7% 2 1%

8 5%

23 49% 4 8%

19 46% 2 5%

37 45% 5 6%

8 3%

11 6%

4 3%

8 8%

4 4%

10 5%

5 5%

3 4%

3 3%

4 4%

2 3%

27 27%

42 21%

32 27%

20 25%

24 27%

21 22%

14 24%

6 7%

2 4%

1 2%

1 1%

19 8%

4 2%

13 8%

7 7%

3 3%

15 7%

4 4%

3 4%

3 3%

2 2%

4 5%

10 4%

4 2%

6 3%

2 2%

6 6%

7 3%

6 5%

4 3%

2 3%

3 4%

4 4%

2 2%

19 19%

28 46%

27 25%

6 3%

16 17%

50 52%

34 21%

4 4%

18 23%

46 50%

42 24%

3 3%

20 17%

44 55%

53 23%

7 4%

17 8%

61 52%

18 22%

8 5%

20 20%

79 39%

11 26%

6 3%

16 15%

56 56%

13 27%

6 7%

15 9%

50 46%

16 18%

1 2%

21 12%

66 40%

5 11%

1 3%

34 15%

80 46%

4 8%

4 5%

12 15%

105 46%

3 3%

2 2%

7 12%

22 48%

4 9%

5 11%

32 32%

2 2% 7 7%

152 51%

17 6%

48 16%

7 4%

30 28%

6 19%

15 20%

6 5%

1 3%

4 6%

8 8%

14 5%

10 6% 3 2%

39 10%

8 6%

13 15%

5 10%

7 17%

6 8%

21 9%

18 10%

27 16%

9 8%

3 2%

31 15%

6 5%

2 2%

8 9%

10 10%

3 5%

3 7%

19 19%

20 7%

21 13%

5.9

5.7

6.1

5.6

6.0

5.8

5.9

5.4

6.1

6.2

5.6

6.1

6.4

6.1

6.0

5.5

5.1

6.1

9 2%

6.0

2 1%

6.0

1 1%

6.0

2 4%

6.0

1 2%

6.0

3 4%

6.0

3 1%

6.0

6 4%

6.0

5 3%

5.0

6.0

M E E T I N G S T R E E T

137

6.0

6 3%

5.0

1 1%

6.0

R E S E A R C H

2 2%

7.0

2 2%

6.0

2 2%

6.0

2 3%

6.0

5.0

3 3%

5.0

6 2%

6.0

8 10%

32 21%

4 8%

9 3%

1 3%

28 36%

7 22%

3 4%

4 4%

3 3%

16 48%

17 16%

19 20%

4 8%

56 53%

30 39%

20 13%

11 25%

3 6%

75 25%

70 44%

9 28%

77 19%

8 - 10 ------

5 - 7 -----

31 30%

33 8%

9 9%

3 3% 2 2%

2 7%

3 9%

1 3%

7 9% 6 7%

3 4%

5 6%

5 3%

6 6%

1 1%

3 10%

5 6%

5.7

6.1

5.8

6.3

6.0

2 3%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 74 Table 15-2 QUESTION 10: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Costs of employee salaries and benefits BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

117 29%

56 28%

44 11%

185 46%

171 43%

372 93%

21 12%

37 10%

6 31%

94 47%

80 47%

174 47%

9 44%

18 5%

1 4%

51 30%

108 29%

1 - 4 -----

89 22%

49 24%

37 22%

86 23%

54 14%

33 17%

20 12%

53 14%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

19 5%

21 5%

16 8%

7 3%

11 6%

8 40%

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

51 26%

53 34%

5 26%

46 25%

24 40%

46 30%

70 30%

15 8%

96 49%

22 14%

65 42%

1 7%

46 23%

34 22%

1 4%

28 14%

24 15%

8 4%

1 4%

8 40%

16 9%

92 51%

5 24%

40 22%

2 9%

26 14%

7 5%

3 13%

4 2%

6 10%

23 39%

20 14%

63 42%

23 10%

107 45%

9 16%

39 26%

55 23%

11 18%

18 12%

37 16%

7 12%

8 5%

22 6%

129 32%

181 45%

8 37%

34 26%

48 27%

5 21%

8 34%

14 11%

66 51%

15 8%

87 48%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

14 38%

52 30%

39 32%

21 33%

56 27%

10 19%

15 24%

48 23%

10 20%

47 20%

2 48%

37 25%

9 14%

23 11%

6 11%

35 15%

19 12%

8 15%

23 10%

8 23%

12 33%

19 11%

83 48%

15 12%

59 48%

6 29%

25 19%

43 24%

9 26%

33 19%

25 20%

15 12%

26 14%

3 8%

25 15%

22 18%

10 4%

4 16%

5 4%

8 4%

2 7%

8 5%

4 6%

25 40%

3 2%

8 13%

26 13%

96 46% 8 4%

1 2%

51 14%

3 14%

27 14%

21 14%

4 18%

25 14%

6 11%

22 14%

33 14%

2 8%

20 16%

23 13%

2 6%

30 18%

19 15%

15 24%

21 10%

5 10%

95 24%

57 28%

31 18%

88 24%

6 30%

50 26%

32 20%

2 10%

48 26%

14 24%

30 20%

54 23%

4 17%

33 26%

50 28%

7 19%

34 20%

32 26%

6 9%

52 25%

22 6%

12 6%

11 6%

22 6%

14 7%

8 5%

11 6%

2 3%

10 7%

15 6%

6 5%

12 7%

1 2%

8 5%

9 7%

3 4%

11 5%

39 10%

23 11%

15 9%

14 4% 14 3%

9 2%

5.9

6.0

8 4%

7 3%

2 1%

5.6

5.0

7 4%

5 3%

3 1%

6.1

6.0

35 9% 14 4%

12 3%

1 4%

4 1%

2 10%

37 10%

5.8

6.0

1 3%

7.1

7.0

19 10% 8 4%

12 8%

6 4%

5 2%

7 5%

4 2%

2 2%

19 10%

5.7

6.0

13 9%

6.1

6.0

3 12% -

19 11% 8 4%

1 4%

5 3%

2 10%

4 2%

4 20%

5.6

6.0

16 9%

5.7

6.0

3 4% 2 3% -

5 9%

3 5%

6.4

7.0

12 8% 5 3%

21 9% 12 5%

8 6%

8 3%

2 1%

3 1%

17 11%

5.8

6.0

20 9%

5.9

6.0

2 8% 1 5%

1 4%

5 21%

6.0

12 9% 1 1%

13 7% 8 4%

5 4%

8 4%

5 3%

3 1%

13 10%

5.9

6.0

16 9%

5.7

5.0

3 8% 1 3%

19 11%

5 3%

8 7%

5 4%

2 5%

4 2%

5 4%

1 3%

4 2%

5 15%

6.1

6.0

16 9%

6.1

6.0

7 5%

6.1

6.0

4 7%

1 2%

2 3%

9 15%

2 3%

6.0

7.0

22 11%

8 4%

7 3%

22 11%

7 4%

5.8

6.0

67 29%

48 33%

119 51%

28 16%

21 12%

148 37%

29 59%

23 12%

14 7%

3 1%

23 10%

55 14%

35 9%

233 58%

3 6%

9 4%

1 28% -

21 14%

61 41% 9 6%

41 17%

16 33%

56 24%

1 28%

36 24%

3 5%

13 6%

9 6%

9 4%

2 4%

11 5%

1 2%

6 11%

5.4

5.0

13 6%

6.0

2 48%

1 24% 2.5

1.0

13 9% 12 8%

5 3%

2 1%

20 14%

3 2%

5.8

6.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 75 Table 15-3 QUESTION 10: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Costs of employee salaries and benefits BANNER 3

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

92 23%

298 74%

151 38%

119 30%

56 28%

49 33%

39 33%

9 10%

5 - 7 -----

185 46%

40 43%

140 47%

110 54%

19 5%

5 6%

13 4%

8 4%

8 - 10 ------

1 - 4 ----8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

117 29%

27 29%

89 22%

23 25%

54 14%

13 14%

35 12%

202 50%

44 11%

89 30%

63 21%

42 14%

20 10%

15 10%

71 47%

95 24%

101 25%

27 29%

24 24%

12 10%

11 11%

59 50%

52 55%

10 10%

42 42%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

78 28%

50 30%

54 32%

53 31%

31 11%

146 36%

147 37%

28 40%

48 33%

39 27%

40 27%

18 12%

13 9%

14 10%

47 12%

72 18%

74 18%

17 24%

21 28%

25 52%

26 36%

25 34%

28 39%

11 4%

10 6%

11 7%

7 4%

5 8%

4 3%

2 1%

8 6%

3 5%

4 6%

3 5%

3 4%

20 17%

14 15%

10 10%

36 13%

35 21% 22 13%

36 21% 22 13%

43 25% 25 15%

14 20% 15 21%

25 17% 27 18%

28 19% 25 17%

27 18% 17 12%

11 23%

4 8%

27 38%

25 34%

29 15%

25 13%

4 6%

7 10%

7 9%

16 8%

19 10%

2 3%

3 4%

12 6%

2 1%

15 16%

11 11%

40 15%

31 18%

20 12%

21 12%

8 11%

18 12%

29 20%

5 12%

95 24%

18 19%

73 25%

52 26%

34 22%

29 24%

24 26%

27 27%

63 23%

37 22%

39 23%

38 22%

16 22%

39 27%

39 26%

15 33%

17 23%

22 6%

5 6%

17 6%

10 5%

9 6%

5 5%

4 4%

6 6%

15 6%

8 4%

9 6%

8 5%

4 5%

7 4%

10 7%

11 8%

4 7%

8 12%

39 10%

9 10% 3 3%

5 2%

10 5%

2 1%

12 8%

2 1%

9 7%

1 1%

6 6%

1 1%

17 17%

27 10%

20 12%

17 10%

21 12%

4 5%

6 4%

9 6%

5 3%

7 14%

12 17%

13 17%

5.9

5.8

6.0

6.1

6.2

5.3

5.9

6.0

5.8

6.3

6.2

6.0

6.1

5.4

5.0

5.3

14 4% 14 3% 9 2%

6.0

4 4% 5 5%

6.0

10 3% 7 2%

28 9%

6.0

10 5% 4 2%

6.0

5 3% 3 2%

6.0

3 3% 3 2%

6.0

4 4% 1 1%

6.0

3 3% 5 4%

5 5%

5.0

10 4% 9 3%

5 2%

6.0

5 3% 3 2%

3 2%

6.0

18 10%

5 3% 4 2%

2 1%

6.0

M E E T I N G S T R E E T

138

15 9%

7 4% 6 4%

2 1%

6.0

5 7%

3 4%

17 11%

7 5%

4 6%

6 4%

7.0

6.0

R E S E A R C H

10 7%

6 4% 4 2% -

6.0

13 9%

6 4%

4 3%

6.0

4 8%

1 2%

2 4%

5.0

13 7%

11 15%

18 15%

14 8%

89 45%

8 11%

25 17%

27 10%

5 3%

23 12%

6 8%

33 16%

4 4%

43 22%

81 55%

26 17%

13 13%

45 23%

22 31%

78 54%

28 14%

12 10%

19 26%

89 45%

10 21%

74 50%

62 23%

12 8%

61 31%

22 11%

28 40%

30 30%

25 12%

56 29%

9 12%

40 13%

27 9%

196 49%

9 13%

14 15%

7 8%

196 49%

7 10%

55 14%

35 9%

73 18%

4 8%

73 43%

15 16%

5 5%

147 37%

8 12%

77 46%

20 17%

3 3%

71 18%

21 12%

82 48%

29 19%

7 6%

21 12%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

129 47%

33 17%

8 5%

18 11%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

5 6%

5 7%

2 2%

5.0

4 5%

4 6%

33 17%

18 9%

14 19%

18 24%

40 20%

3 5%

3 4%

9 5%

13 7%

12 16%

14 7%

25 13%

5.6

6.0

5.8

6 8%

3 4%

5.0

1 1%

3 4%

3 5%

5.0

9 5%

5 3%

6.0

52 26%

4 2%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 76 Table 15-4 QUESTION 10: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Costs of employee salaries and benefits BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

87 22%

285 71%

103 26%

98 34%

15 15%

44 11%

17 19%

35 12%

185 46%

40 45%

138 48%

117 29%

36 41%

1 - 4 -----

89 22%

12 14%

49 17%

54 14%

13 15%

46 16%

5 6%

28 10%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

19 5%

55 14% 35 9%

6 6%

16 18%

17 6%

43 11%

144 36%

16 38%

44 31%

6 5%

7 17%

46 45%

20 46%

83 21%

42 11%

24 28%

11 27%

13 9%

10 12%

77 53%

39 47%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

41 27%

1 11%

64 30%

50 33%

39 30%

44 35%

41 39%

65 34%

41 34%

4 8%

1 14%

16 13%

11 12%

15 10%

21 49%

1 13%

56 46%

47 51%

71 47%

3 44%

41 33%

28 30%

23 12%

15 13%

22 18%

16 15%

8 8%

8 18%

23 16%

10 12%

6 14%

2 30%

16 13%

13 14%

21 14%

1 11%

33 15%

27 18%

20 16%

26 21%

22 21%

36 19%

16 13%

2 4%

14 10%

10 12%

4 10%

8 7%

11 11%

12 8%

2 20%

21 10%

15 10%

12 10%

12 9%

10 10%

18 9%

11 9%

5 3%

1 12%

7 7%

8 19%

19 13%

11 13%

8 20%

16 13%

4 4%

16 18%

5 3%

22 15%

10 23%

43 30%

18 22%

8 19%

1 13%

31 25%

20 22%

37 25%

22 6%

4 4%

13 4%

9 8%

1 2%

8 6%

3 4%

6 13%

8 7%

5 5%

8 5%

5 5%

1 3%

2 4%

3 2%

4 3%

2 2%

3 4%

2 5%

1 2%

3 3%

4 4%

2 1%

2 2%

8 5%

8 4%

34 16%

9 6%

21 14%

7 5%

18 14%

2 2%

16 13%

10 9%

13 17%

4 8%

10 8%

6 8%

5 5%

23 18%

9 7%

16 34%

10 8%

26 17%

13 17%

6 3%

46 22%

2 4%

30 26%

4 4%

6 61%

3 4%

11 24%

55 48%

36 24%

8 6%

24 31%

59 49%

17 18%

1 2%

27 24%

12 10%

97 51%

26 21%

2 2%

77 19%

48 45%

3 43%

15 15%

9 3%

59 47%

15 14%

10 24%

24 24%

1 1%

66 51%

17 13%

18 21%

70 24%

14 3%

75 49%

12 9%

24 16%

40 14%

9 3%

105 49%

15 10%

7 16%

19 22% 1 1%

3 28%

23 11%

37 36%

95 24% 14 4%

114 28%

13 12%

29 15%

20 17%

15 13%

25 22%

7 9%

39 50% 4 6%

36 28%

31 25%

25 23%

50 26%

32 27%

20 18%

23 30%

2 18%

13 6%

11 7%

8 6%

4 3%

9 5%

7 5%

6 5%

2 3%

2 22%

8 4%

5 3%

4 3%

7 5%

2 2%

5 5%

4 3%

8 4%

5 3%

3 2%

4 3%

4 4%

3 3%

1 2%

9 19%

38 25%

5 4%

19 40%

6 13%

50 23%

6 4%

7 14%

9 12%

1 8%

9 4%

46 12%

4 8%

1 1%

4 10%

2 3%

2 4%

1 2%

39 10%

6 7%

17 6%

18 18%

3 7%

8 6%

9 11%

2 4%

3 43%

13 10%

6 7%

15 10%

1 10%

16 7%

4 2%

6 5%

9 8%

4 3%

6 3%

7 6%

17 15%

7 9%

9 19%

5.9

6.7

6.3

4.8

6.4

6.1

5.9

6.0

4.9

6.1

6.2

5.7

4.0

6.0

6.2

6.1

6.2

6.5

6.4

6.3

5.7

6.0

5.4

9 2%

6.0

7.0

1 -

6.0

5 5%

5.0

7.0

6.0

2 3%

6.0

5.0

6.0

1 1%

6.0

2 1%

6.0

4.0

6.0

1 1%

6.0

2 1%

7.0

6.0

2 2%

6.0

2 3%

6.0

1 2%

5.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 77 Table 15-5 QUESTION 10: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Costs of employee salaries and benefits BANNER 5

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

212 53%

145 36%

108 27%

92 23%

46 32%

28 26%

30 32%

44 11%

30 14%

17 12%

5 - 7 -----

185 46%

88 42%

75 52%

19 5%

11 5%

7 5%

8 - 10 ------

1 - 4 ----8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

117 29%

89 22%

65 30%

53 25%

20 14%

10 9%

14 3%

8 4%

6 4%

3 2%

4 3%

59 27%

26 51%

50 50%

102 47%

3 3%

5 5%

4 5%

2 3%

12 4%

7 8%

3 4%

6 7%

7 5%

2 2%

16 5%

3 7%

4 7%

10 10%

2 4%

4 4%

7 3%

20 19%

25 23%

1 1%

5 5%

2 2%

14 15%

10 13%

14 18%

6 7%

5 7%

29 9%

48 15%

10 12%

4 7%

7 8%

13 21%

5 7%

4 6%

28 18%

7 8%

16 10%

3 4%

6 4%

13 16%

76 24%

19 24%

10 17%

15 19%

2 2%

3 3%

6 8%

18 6%

4 6%

3 4%

2 3%

4 5%

2 2%

3 3%

4 5%

9 10%

6 7%

5.9

6.4

5.9

6.0

6.1

6.0

1 2%

2 2%

8 3%

12 4%

6 7%

2 2%

4 7%

1 1%

2 2%

30 10%

8 10%

12 20%

6.3

5.9

6.0

5.4

2 2%

7.0

7 2%

6.0

2 2%

5.0

4 4%

139

42 13%

7 8%

29 9%

2 6%

8 14%

2 5%

2 4%

11 25%

8 5%

7 9%

19 6%

2 4%

5 4%

6.0

3 3%

12 4% 10 3%

10 18% 10 18%

74 23%

1 2%

37 11%

7 12%

7 17%

25 29%

5.9

M E E T I N G S T R E E T

6 7%

7 17%

39 25%

6.8 7.0

79 25%

14 16%

15 10%

2 2%

19 22%

15 35%

15 10%

2 2%

2 3%

5.0

35 22%

13 16%

19 27%

12 11%

6.0

44 14%

13 18%

21 26%

4 2%

2 2%

13 19%

11 13%

18 20%

7 5%

6.0

28 28%

43 43%

6 3%

6.0

15 29%

22 40%

20 33%

5 12%

32 32%

20 48%

20 25%

13 21%

36 11%

20 37%

140 44%

22 10%

6.0

93 29%

46 53%

69 21%

28 34%

7 8%

218 42%

70 45%

39 10% 9 2%

15 18%

100 19%

35 43%

10 14%

89 28%

15 9%

51 10%

27 43%

13 14%

12 6%

50 32%

100 19%

31 39%

13 12%

11 5%

35 42%

54 10%

154 48%

15 19%

23 32%

15 19%

43 11%

37 52%

16 11%

22 6%

320 80%

40 51%

17 19%

17 8%

14 4%

87 22%

44 49%

20 19%

35 9%

35 24%

154 39%

58 54%

25 31%

6 10%

82 20%

11 13%

19 21%

43 20%

62 16%

34 11%

15 14%

95 24%

81 20%

8 11%

22 15%

24 17%

319 80%

10 13%

24 11%

28 13%

71 18%

6 6%

54 14%

55 14%

79 20%

7 16%

2 4%

12 12%

24 24%

9 9%

3 6%

9 18%

10 20%

4 8%

13 13%

7 15%

10 18%

20 20%

14 27%

5 5%

1 2%

2 3%

9 9% 5 5%

3 3%

8 8%

21 21%

15 15%

54 25%

26 12%

18 18%

33 15%

21 21%

52 24%

5 5%

19 9%

5 9%

11 11%

1 2%

5 5%

26 12%

3 3%

16 7% 6 3%

10 4%

8 9%

37 12%

2 4%

6 10%

11 11%

7 14%

8 8%

19 9%

5.5

5.8

6.3

6.2

6.0

5.8

6.0

5.8

6 7%

5.0

7 2%

6.0

R E S E A R C H

7.0

3 5%

6.0

2 2%

6.0

1 2%

6.0

1 1%

6.0

3 1%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 78 Table 16-1 QUESTION 11: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Attracting qualified workers BANNER 1

BASE=TOTAL SAMPLE

10 - VERY CONCERNED -------------------

400 100%

140 35%

183 46%

63 45%

85 21%

8 - 10 ------

5 - 7 -----

133 33%

36 26%

48 34%

1 - 4 -----

77 19%

29 21%

63 16%

21 15%

35 9%

7 6

2 1 - NOT AT ALL CONCERNED

MEDIAN

21 24%

29 60%

11 22%

12 14%

5 11%

16 4%

6 5%

3 4%

4 9%

6 4%

5 3%

4 4%

2 2%

14 32%

9 22%

4 9%

7 9%

20 48%

10 21%

6 12%

22 16%

5 3%

7 17%

8 18%

8 9%

43 11%

7 14%

53 13%

1 2%

1 3% -

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

40 49%

94 41%

89 52%

58 35%

53 49%

66 65%

74 37%

58 50%

14 17%

27 33%

51 22%

81 36%

12 15%

50 22%

15 18%

28 12%

4 9%

11 13%

5 11%

34 20%

51 30%

16 14%

34 20%

24 15%

16 15%

11 13%

35 15%

20 11%

4 8%

10 12%

35 15%

1 2%

1 1%

10 4%

2 4%

2 3%

2 2%

12 5% 10 4%

7 3%

26 25%

29 14%

70 34%

27 23%

15 8%

12 10%

8 10%

30 15%

14 12%

11 14%

17 17%

29 15%

7 7%

11 6%

17 15%

28 28%

155 52%

65 41%

54 51%

16 48%

35 46%

38 25%

15 14%

3 9%

14 18%

16 16%

25 41%

18 39%

34 34%

98 33%

48 30%

8 9%

6 6%

4 6%

5 10%

5 5%

29 10%

10 6%

12 20%

7 15%

15 15%

40 13%

19 19%

6 10%

14 17%

12 13%

21 22%

8 14%

3 4%

11 12%

4 4%

4 7%

9 19%

34 34%

12 12%

8 14%

9 20%

14 14%

6 4%

5 3%

6 6%

3 3%

6 3%

8 7%

2 2%

3 3%

2 4%

2 3%

4 2%

7 4%

5 3%

1 1%

4 4%

1 1%

7 3%

8 4%

3 2%

1 1%

2 2%

6.7

6.2

7.4

6.6

6.9

6.5

7.0

5.8

7.1

7.9

6.0

7.0

6 3%

8.0

5 3%

6.0

1 1%

7.0

8.0

6 3%

7.0

3 4%

8.0

9 10%

2 2%

12 13%

4 4%

6.8

7.0

8.0

7.3

7.0

9 6%

10 29%

5 7%

8 10%

38 13%

18 12%

9 8%

7 23%

15 19%

6 6%

10 3%

7 5%

3 3%

4 5%

3 6%

15 15%

22 7%

21 14%

6.6

5.6

7.1

6.3

2 4%

3 7%

6.6

20 7%

15 14%

3 10%

27 35%

11 15%

1 2%

7.9

24 15%

14 14%

14 43%

23 29%

4 12%

2 2%

1 2%

55 18%

36 34%

3 9%

15 14%

1 2%

9 10%

7 7%

42 14%

25 23%

20 13%

2 3%

12 13%

2 2%

1 2%

6 14%

2 2%

8.0

31 20%

28 29%

18 19%

10 11%

3 2%

70 23%

30 33%

6 7%

9 11%

6.7

7.0

77 19%

15 13%

10 9%

6 5%

8.0

19 42%

33 8%

29 14%

31 16%

7.0

8 18%

107 27%

8 8%

2 2%

8.0

29 48%

157 39%

12 11%

8 7%

4 4%

7.0

17 28%

299 75%

26 15%

9 5%

31 18%

7.0

48 50%

100 25%

19 11%

19 17%

13 8%

7.0

21 22%

46 12%

11 10%

24 11%

2 1%

42 46%

60 15%

19 17%

7 8%

3 3%

22 24%

97 24%

21 13%

5 12%

1 2%

91 23%

11 11%

1 3%

2 4%

51 64%

23 29%

53 26%

12 14%

2 2%

29 36%

40 34%

10 10%

12 8%

79 20%

10 9%

13 8%

38 37%

39 36%

48 29%

20 12%

7 8%

56 34%

26 24%

26 15%

14 6%

5 13%

20 12%

37 9%

8 2%

MEAN

33 38%

13 26%

13 15%

10 3%

DON'T KNOW/REFUSED

31 36%

22 15%

13 3%

15 17%

48 12%

54 14% 25 6%

6 4%

87 22%

7.0

5 5%

6 6%

7 7%

3 3%

5.0

7 2%

3 1%

5 2%

8.0

12 12%

5 3%

3 2%

5 3%

2 2%

6 4%

7.0

7 7%

1 1%

7.1

8.0

3 8% -

1 3%

2 6%

6.7

7.0

1 1% 4 5%

2 2%

5 6%

1 1%

6.9

7.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 79 Table 16-2 QUESTION 11: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Attracting qualified workers BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 85 21%

201 50%

48 24%

171 43%

32 19%

183 46%

96 48%

76 44%

1 - 4 -----

77 19%

38 19%

63 16%

31 15%

5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

133 33% 35 9%

65 32% 17 8%

372 93%

80 22%

21 5%

4 21%

37 19%

155 39%

41 26%

21 5%

3 13%

181 45%

42 23%

59 15%

17 28%

150 37%

27 18%

236 59%

47 20%

22 6%

129 32%

181 45%

6 28%

32 25%

31 17%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

7 18%

47 27%

67 45%

109 46%

12 53%

61 47%

83 46%

17 47%

82 48%

66 53%

33 53%

85 41%

18 37%

35 20%

73 20%

2 10%

39 20%

25 16%

7 34%

36 20%

8 14%

30 20%

43 18%

5 24%

26 20%

34 19%

8 23%

31 18%

18 15%

12 19%

46 22%

12 24%

28 12%

1 30%

43 29%

28 17%

59 16%

3 12%

36 18%

20 13%

4 18%

26 14%

9 16%

2 9%

21 16%

35 19%

6 18%

21 12%

18 15%

9 15%

35 17%

5 9%

40 17%

21 14%

2 12%

14 7%

8 5%

2 9%

16 9%

3 4%

7 6%

11 6%

3 8%

10 6%

13 10%

3 4%

6 4%

6 5%

57 33% 15 9%

122 33% 32 9%

8 37% 2 8%

65 33% 14 7%

18 11%

3 15%

12 6%

6 10%

17 11%

80 34%

23 10%

4 16%

35 15%

1 4%

23 15%

39 16%

6 4%

14 6%

39 30% 8 6%

17 10%

4 10%

14 8%

31 13%

2 10%

16 12%

21 12%

5 14%

23 13%

16 4%

9 4%

6 4%

15 4%

1 4%

9 5%

6 4%

1 4%

5 3%

2 3%

8 5%

11 5%

1 5%

4 3%

8 4%

2 5%

6 4%

34 9%

1 6%

19 10%

10 7%

6 30%

17 9%

6 11%

13 9%

18 8%

3 14%

14 11%

15 8%

4 11%

15 9%

7.0

5.6

6.7

7.2

6.7

6.8

6.7

6.5

10 3%

6 3%

4 3%

10 3%

8 2%

2 1%

4 2%

5 1%

6.8

7.0

16 9%

6.6

7.0

6.7

7.0

2 11% 7.1

7.0

6 3%

4 2%

6.6

7.0

4 3%

1 1%

8.0

1 5%

6.0

9 5%

5 3%

2 1%

7.0

4 3%

5 4%

3 5%

8.0

2 1%

6.5

7.0

M E E T I N G S T R E E T

140

7 3%

3 1%

7.0

1 5% -

8.0

5 4%

3 3%

4 3%

7.0

R E S E A R C H

5 3%

7 4%

2 1%

7.0

2 5%

54 32%

26 17%

6 4%

30 16%

10 28%

6 11%

2 8%

16 12%

62 34%

21 12%

5 3%

19 13%

5 23%

1 5%

7 12%

51 34%

22 14%

13 4%

26 14%

16 27%

23 12%

8 5%

64 35%

2 11%

23 6%

19 13%

3 14%

49 13%

10 6%

28 14%

50 32%

24 14%

6.7

24 16%

32 54%

25 12%

7.0

61 41%

80 44%

53 13%

18 9%

60 26%

10 46%

3 14%

37 9%

117 50%

79 51%

51 14%

5 3%

12 24%

87 45%

23 13%

13 3%

34 16%

148 37%

9 42%

28 14%

12 6%

17 28%

3 1%

172 46%

54 14%

25 6%

34 28%

233 58%

2 6% -

1 3%

7.0

21 12%

3 2%

4 2%

6.9

7.0

39 31%

13 10% 13 10%

16 26%

6 10%

16 8%

18 38% 2 4%

88 38% 17 7%

2 46% -

17 11%

6 11%

39 17%

5 8%

33 16%

8 17%

30 13%

2 46%

20 14%

5 4%

2 3%

9 4%

2 4%

7 3%

8 5%

4 3%

9 14%

24 12%

7 14%

1 30%

22 15%

3 2%

1 1%

7.2

8.0

2 3% -

1 1%

6.9

8.0

9 4%

6 3%

7 4%

6 3%

6.3

7.0

5 9%

1 2%

2 3%

1 2%

6.2

6.0

19 8%

3 1%

7 3%

12 5%

7.2

8.0

40 27%

29 14%

14 11%

8 14%

71 34%

1 24% 3.4

5.0

15 10%

6 4%

10 7%

4 3%

3 2%

6.1

7.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 80 Table 16-3 QUESTION 11: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Attracting qualified workers BANNER 3

BASE=TOTAL SAMPLE

10 - VERY CONCERNED -------------------

85 21%

92 23%

298 74%

202 50%

151 38%

23 25%

62 21%

45 22%

35 23%

119 30%

32 27%

95 24%

25 26%

101 25%

17 17%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

51 19%

42 25%

39 23%

41 24%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

26 37%

33 23%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

32 22%

47 12%

72 18%

74 18%

73 18%

196 49%

196 49% 86 44%

7 15%

9 12%

13 17%

12 16%

46 24%

8 - 10 ------

183 46%

46 49%

135 45%

97 48%

76 50%

60 51%

50 52%

37 36%

122 45%

82 48%

80 47%

84 49%

39 56%

74 50%

74 51%

71 48%

17 35%

24 33%

25 33%

25 35%

91 46%

1 - 4 -----

77 19%

14 15%

62 21%

29 14%

22 15%

13 11%

11 12%

26 26%

52 19%

32 19%

30 18%

35 20%

9 13%

16 11%

22 15%

19 13%

13 27%

27 37%

23 31%

22 30%

32 16%

63 16%

19 20%

43 14%

34 17%

28 18%

19 16%

14 15%

11 11%

42 15%

23 14%

22 13%

28 16%

8 12%

28 19%

32 22%

25 17%

9 18%

9 12%

18 6%

15 7%

9 5%

3 5%

9 6%

10 7%

11 7%

5 11%

5 7%

5 - 7 -----

133 33%

35 9%

8 7

54 14%

25 6%

5 4

2 1 - NOT AT ALL CONCERNED

MEAN

7 8%

38 13%

17 9%

33 16%

52 34% 13 9%

22 15% 7 5%

45 38% 9 8%

20 17% 9 8%

34 35% 11 11%

11 12% 7 8%

34 34% 8 8%

13 13% 4 4%

93 34% 29 11%

37 13% 16 6%

52 30% 16 10%

20 12% 10 6%

55 33% 19 12%

20 12% 10 6%

48 28% 15 9%

21 12%

23 32% 5 7%

11 15%

57 39% 12 8%

27 19%

50 34% 9 6%

24 17%

58 39% 14 10%

23 16%

17 36%

22 30%

1 2%

25 34%

6 8%

7 14%

24 33%

6 8%

5 7%

69 36%

63 32%

16 8%

19 9%

44 22%

6 8%

9 12%

28 14%

4 5%

15 8%

10 5%

7 10%

10 13%

11 15%

30 16%

23 12%

5 10%

9 13%

12 16%

9 13%

24 12%

29 15%

4 2%

41 14%

27 13%

22 14%

16 13%

15 16%

17 17%

40 15%

21 13%

25 15%

19 11%

8 11%

21 14%

15 11%

24 16%

16 4%

3 4%

12 4%

8 4%

5 3%

5 4%

3 3%

5 5%

10 4%

6 4%

8 5%

2 2%

4 3%

4 2%

5 3%

4 9%

6 8%

4 5%

3 4%

11 6%

3 2%

6 14%

13 18%

16 21%

14 20%

10 5%

26 13%

7.1

6.0

5.5

5.7

5.8

6.9

6.4

2 2%

10 3%

1 1%

8 2%

3 3%

6.7

MEDIAN

13 14%

31 10%

74 37%

10 11%

37 9%

DON'T KNOW/REFUSED

4 4%

97 33%

53 13%

13 3%

31 33%

39 20%

7.0

11 4%

9 3%

5 3%

1 1%

2 1%

1 1%

11 6%

7.0

6.6

7.0

4 4%

2 2%

29 10%

8.0

1 1%

4 2%

7 8%

3 1%

5 4%

7.0

9 6%

7.0

8.0

6 5%

7.3

8.0

4 4%

7.3

8.0

5 5%

2 2%

15 14% 4 4%

6.1

7.0

9 3%

7 3%

26 10% 6 2%

6.6

7.0

3 2%

4 2%

3 2%

19 11%

15 9%

5 3%

6.8

7.0

4 2%

6.8

7.0

3 2%

4 6%

4 3%

1 1%

4 2%

19 11%

6.7

8.0

6 4%

3 2%

3 4%

7.5

8.0

4 3%

7.2

8.0

7 5%

5 4%

6 4%

7.1

8.0

8 5%

4 3% -

7.0

3 5%

2 4%

2 3%

5 7%

1 2%

2 3%

7.0

3 4% 2 3%

1 1%

5.0

5 3% 5 2%

2 2%

6.0

4 2%

7.0

8 4%

6 3%

4 2%

7.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 81 Table 16-4 QUESTION 11: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Attracting qualified workers BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

15 17%

35 9%

12 14%

54 14%

10 11%

53 13%

3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

30 71%

72 50%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

22 52%

2 27%

57 46%

58 63%

62 41%

1 8%

106 50%

86 57%

64 50%

78 63%

65 61%

127 67%

59 49%

37 33%

31 40%

19 41%

43 42%

9 22%

1 1%

6 14%

41 14%

14 13%

4 8%

27 19%

12 15%

7 16%

1 16%

15 12%

11 12%

26 17%

1 11%

31 15%

24 16%

23 18%

17 14%

14 13%

27 14%

16 13%

13 11%

3 3%

30 11%

19 18%

5 11%

19 13%

9 11%

5 13%

1 16%

18 15%

4 4%

23 16%

5 51%

23 11%

17 11%

19 15%

13 10%

15 14%

15 8%

16 14%

16 4%

9 3%

6 6%

1 2%

4 3%

2 2%

3 6%

6 5%

4 4%

6 4%

6 3%

4 2%

6 5%

3 2%

3 3%

3 2%

37 9%

4 4%

11 4%

23 23%

1 2%

6 4%

13 15%

2 4%

2 26%

11 9%

5 5%

14 10%

1 10%

17 8%

5 3%

4 3%

2 2%

3 1%

8.6

7.5

4.5

8.1

7.2

6.0

7.2

5.4

6.7

7.6

6.6

4.7

6.9

7.6

7.2

63 16%

12 12%

133 33%

170 59%

25 6% 13 3%

10 3%

8 2%

6.7

7.0

82 29%

144 36%

17 40%

77 19%

68 79%

43 11%

3 3%

1 - 4 -----

103 26%

44 51%

183 46%

285 71%

85 21%

8 - 10 ------

5 - 7 -----

87 22%

85 30%

4 4%

28 10%

12 14%

54 19%

2 3%

10.0

34 12%

14 5%

4 1% 5 2%

2 1%

8.0

44 43%

8 8%

11 11%

10 9% 5 5%

3 3%

5.0

35 24%

13 15%

12 29%

57 39%

23 28%

15 36%

33 40%

3 47%

26 21%

41 33%

30 32%

20 22%

28 19%

59 40%

6 61%

55 26%

68 32%

51 34%

15 7%

16 11%

3 7%

16 11%

24 29%

5 13%

2 26%

25 20%

13 14%

27 18%

3 31%

39 18%

7 17%

23 16%

16 19%

7 16%

1 13%

18 15%

20 22%

21 14%

1 8%

36 17%

1 2%

1 3% -

9.0

14 10%

11 8%

4 3%

2 1% -

7.0

5 6%

2 2%

5 6% 4 5% 3 4%

7.0

3 7%

1 2% -

8.0

1 14%

6.0

13 10%

8 6%

8 9%

5 6%

5 4%

3 3%

2 2%

7.0

1 1%

8.0

M E E T I N G S T R E E T

141

13 8%

10 7%

5 3% 3 2% 1 1%

7.0

1 12%

13 6%

9 4%

1 9%

6 3%

5.0

46 31%

1 -

7.0

R E S E A R C H

35 27%

35 33%

52 27%

12 9%

17 14%

15 14%

18 10%

23 15%

18 14%

1 1%

8.0

66 35%

39 31%

16 12%

5 3%

30 28%

48 38%

14 9%

10 7%

39 31%

6 5%

4 3% 2 2%

7.0

7 6%

23 18% 9 7%

1 1% 1 1%

7.8

8.0

6 6%

21 20% 7 6%

1 1%

7.7

8.0

26 22%

39 33%

11 9%

40 36%

32 41%

10 8%

7 9%

11 6%

22 18%

34 30%

43 22%

17 14%

10 5%

3 2%

2 1% -

8.0

16 13%

14 18%

10 21%

12 25%

13 16%

14 31%

17 15%

10 13%

6 14%

9 8%

10 13%

3 6%

14 18%

6 13%

18 16%

8 10%

6 13%

5 4%

4 4%

4 5%

1 3%

11 9%

16 14%

6 8%

11 24%

5.7

6.8

5.9

7 6%

4 3%

3 2% -

6.8

7.0

9 8%

5 4% 2 2%

6.0

3 4%

2 3%

7.0

1 2%

1 2% 1 2%

7.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 82 Table 16-5 QUESTION 11: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Attracting qualified workers BANNER 5

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 ------

5 - 7 -----

212 53%

145 36%

108 27%

183 46%

94 44%

73 50%

47 44%

85 21%

133 33%

45 21%

66 31%

35 24%

47 33%

92 23%

79 20%

41 38%

24 26%

23 29%

24 34%

53 58%

37 47%

22 15%

17 16%

14 15%

18 22%

63 16%

30 14%

27 19%

20 19%

19 21%

25 6%

13 6%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

54 14%

23 11%

11 8%

22 15%

8 6%

152 48%

23 32%

45 21%

18 9%

42 59%

12 16%

77 19%

35 9%

319 80%

25 27%

1 - 4 ----9

71 18%

17 16%

9 9%

13 12% 6 6%

10 11%

10 11% 5 6%

81 20%

62 16%

82 20%

154 39%

44 54%

71 46%

72 23%

13 17%

6 10%

26 32%

106 33%

27 33%

18 30%

27 33%

31 39%

25 41%

48 22%

53 34%

28 32%

109 34%

10 24%

14 27%

32 32%

15 29%

34 34%

78 36%

70 22%

14 18%

13 18%

53 17%

10 12%

12 20%

11 14%

25 16%

12 14%

7 9%

2 2%

23 7%

8 5%

8 10%

7 9%

13 19%

41 13%

14 17% 2 3%

6 9% 4 6%

11 14% 4 5%

17 11%

25 17%

21 20%

9 10%

9 12%

9 13%

42 13%

11 13%

9 15%

11 14%

19 12%

16 4%

9 4%

2 1%

3 3%

4 4%

3 4%

1 2%

13 4%

3 4%

2 4%

2 3%

6 4%

10 3%

6 3%

37 9%

24 11%

6.7

6.5

8 2%

7.0

7 3%

7.0

2 1%

12 8%

3 2%

7.0 8.0

4 4%

1 1%

9 8%

3 3%

6.6 7.0

4 4%

1 1%

5 6%

7.3

8.0

132 41%

17 20%

17 11% 6 4%

36 42%

31 20%

7 8%

6 8%

1 1%

7 9%

1 2%

6.6

7.0

1 1%

3 4%

7.7

8.0

9 3%

8 3%

5 6%

2 2%

4 6%

3 5%

27 8%

10 13%

8 12%

6.8

6.3

6.0

5 2%

7.0

3 3%

7.0

2 3%

3 3%

7.0

6 4%

3 2%

3 3%

11 13%

49 15%

12 28%

11 21%

13 13%

11 22%

23 23%

28 13%

22 7%

2 4%

6 6%

5 11%

6 6%

11 5%

27 8%

44 14%

7 17%

6 12%

2 4%

3 6%

15 15% 12 12%

9 17%

13 13%

5 6%

14 4%

2 4%

1 3%

4 7%

10 3%

9 3%

7.3

6.7

6.6

6.4

7.0

3 7%

1 3%

5 6%

7.0

89 41%

49 23%

44 14%

1 1%

51 51%

15 15%

9 10% 2 2%

26 50%

10 19%

37 12%

8.0

54 54%

13 13%

10 11%

29 53%

8 14%

15 10%

1 1%

30 70% 3 6%

3 4%

2 3%

218 42%

19 19%

10 13%

7 11%

100 19%

10 20%

17 27%

8 10%

51 10%

26 26%

20 25%

27 8%

100 19%

11 21%

56 18%

6 8%

54 10%

15 35%

5 8%

10 13%

43 11%

57 18%

30 14% 6 3%

320 80%

21 25%

53 13% 13 3%

87 22%

29 19%

8 2%

7.0

1 2%

8.1

8.0

2 3%

1 2%

3 5% 7.0

8.0

5 9%

6 11%

9 9%

14 14%

13 6%

35 16%

4 7%

14 14%

33 15%

5 5%

1 2%

10 4%

4 4%

6 12%

2 2%

1 1% 7.3

8.0

3 3%

3 5%

3 3%

1 2%

1 1%

6.7

8.0

8 8%

6.9

8.0

9 4%

7 3%

23 11% 2 1%

6.5

7.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 83 Table 17-1 QUESTION 12: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Retaining qualified workers BANNER 1

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

30 7%

69 17%

4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

25 29%

141 35%

60 43%

22 16%

150 37%

103 26%

87 22%

52 13%

1 - 4 ----9

140 35%

47 12% 23 6%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

48 48%

65 32%

6 13%

5 13%

10 13%

30 13%

22 13%

18 11%

11 10%

22 22%

44 31%

34 39%

14 28%

14 32%

35 43%

78 34%

63 36%

51 31%

43 40%

9 6%

3 4%

5 10%

5 11%

8 10%

12 5%

18 10%

7 4%

13 12%

36 26%

29 21%

13 9%

10 7%

26 30%

11 26%

7 16%

5 5%

3 5%

1 2%

22 6%

13 9%

4 5%

6 4%

13 27%

17 39%

9 18%

8 10% 21 24%

3 2%

20 41%

14 16%

21 15%

25 6%

43 11%

8 9%

71 18% 7 2%

48 12%

1 1%

6 7%

5 11%

6 13%

28 35%

17 21%

10 12%

15 18% 5 6%

6 12%

7 17%

16 19%

2 5%

3 4%

1 2%

6 12%

3 6%

1 1%

6 8%

85 37%

62 27%

44 19%

22 9%

15 6%

42 18%

4 2%

17 7%

12 5%

65 38%

41 24%

25 15%

26 15% 8 5%

29 17%

4 2%

5 3%

13 7%

52 31%

59 36%

26 16%

15 9%

9 5%

42 39%

23 22%

17 16%

16 15%

7 7%

60 15%

46 12%

25 41%

14 30%

16 18%

12 12%

11 18%

37 37%

67 33%

49 42%

24 30%

29 32%

37 39%

7 7%

12 6%

11 10%

6 7%

6 6%

16 16%

19 19%

16 16% 5 5%

7 4%

7 7%

5 5%

8 7%

97 24%

20 25%

16 16%

13 8%

91 23%

14 12%

20 18%

1 1%

79 20%

18 9%

27 16%

4 2%

117 29%

2 2%

4 4%

65 32%

35 17%

20 10% 12 6%

42 36%

25 21%

17 14%

15 13% 9 8%

43 54%

13 16%

39 43%

22 24%

17 21%

17 19%

2 2%

9 10%

12 15%

7 7%

36 37%

23 24%

39 36%

5 9%

2 5%

5 5%

25 8%

11 7%

7 7%

8 14%

14 30%

57 19%

24 15%

5 5%

2 3%

3 7%

7 7%

15 5%

8 5%

4 11%

12 15%

17 11%

12 11%

7 22%

8 11%

9 8%

3 8%

3 3%

54 18%

27 17%

18 17%

9 27%

11 14%

9 5%

8 7%

5 6%

5 5%

4 4%

3 6%

5 11%

8 8%

14 5%

6 4%

6 6%

2 6%

7 9%

7 7%

2 6%

8 11%

5.9

6.3

3 1%

15 7%

3 2%

7 6%

2 2%

3 4%

3 3%

1 1%

5 6%

3 5%

10 10%

2 2%

6.0

6.2

5.3

6.0

6.1

5.9

6.1

5.3

6.2

6.9

5.4

6.2

7.1

6.2

5.9

6.7

5.7

5 2%

5.0

1 1%

6.0

R E S E A R C H

8.0

1 1%

7.0

6.0

7.0

1 1%

4 9%

5 10%

142

22 21%

7 9%

16 16%

1 2%

M E E T I N G S T R E E T

20 26%

2 7%

5 12%

2 3%

7.0

6 18%

15 25%

1 1%

7.0

23 22%

21 22%

12 13%

5.0

22 28%

13 15%

12 13%

7.0

19 57%

16 20%

10 13%

3 4%

6.0

39 13%

2 6%

25 21%

8 6%

7.0

9 9%

14 13%

35 17%

38 19%

7.0

49 31%

12 12%

10 21%

5 5%

7.0

66 22%

9 19%

9 15%

8 7%

5.0

37 37%

122 41%

9 14%

11 11%

35 21%

7.0

28 28%

18 19%

20 12%

7.0

34 44%

51 33%

29 13%

8 25%

108 36%

1 1%

44 41%

32 32%

7 9%

4 2%

53 34%

19 40%

1 2%

4 2%

77 19%

26 43%

6 14%

2 1%

33 8%

18 12%

6 13% 2 4%

107 27%

40 13%

15 17% 2 2%

157 39%

12 12%

14 10% -

299 75%

3 6%

49 12% 6 1%

100 25%

7.0

6 2%

14 5%

4 2%

11 7%

2 2%

8 7%

18 18%

31 10%

28 18% 4 2%

1 1%

5.2

6.2

5.6

6.3

5.0

4 1%

7.0

6.0

7.0

2 6%

6.0

2 2%

3 4%

1 1%

7.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 84 Table 17-2 QUESTION 12: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Retaining qualified workers BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

150 37%

79 39%

61 35%

139 37%

52 13%

141 35%

29 14%

59 29%

19 11%

71 41%

48 13%

130 35%

1 - 4 -----

103 26%

61 30%

38 22%

99 27%

69 17%

34 17%

30 17%

64 17%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

30 7%

16 8%

11 7%

21 5%

3 17%

9 43%

7 34%

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

70 36%

64 41%

9 42%

68 38%

21 35%

60 40%

90 38%

22 11%

63 32%

28 18%

58 38%

20 40%

95 41%

50 34%

88 37%

9 38%

38 30%

70 38%

14 40%

51 30%

43 35%

14 23%

79 38%

16 32%

85 36%

1 28%

51 34%

4 20%

28 16%

12 20%

29 19%

43 18%

3 12%

22 17%

30 16%

7 19%

31 18%

21 17%

13 21%

33 16%

8 15%

44 19%

21 14%

2 5%

9 5%

8 7%

2 4%

11 5%

3 5%

19 11%

47 12%

5.9

70 34%

25 16%

10 7%

27 13%

6.0

26 42%

34 17%

14 7%

49 12%

6.0

52 42%

3 17%

13 7%

6.0

73 42%

45 30%

5.9

10 28%

2 72%

21 6%

7.0

64 36%

53 23%

5 3%

6.0

51 40%

13 26%

16 8%

7.0

6 28%

20 13%

53 26%

22 6%

4 1%

148 37%

21 34%

28 14%

2 1%

3 1%

31 13%

28 23%

5 22%

2 1%

233 58%

10 21%

45 26%

63 17%

6 1%

49 12%

26 12%

10 29%

35 20%

25 7%

208 52%

6 10%

45 25%

28 14%

11 7%

62 15%

20 16%

37 29%

71 18%

14 7%

123 31%

27 16%

8 34%

17 11%

25 6%

172 43%

3 7%

53 23%

2 10%

6 2%

36 9%

21 12%

34 22%

26 13%

2 1%

181 45%

20 16%

17 29%

2 12%

4 2%

129 32%

3 12%

49 27%

44 12%

7 2%

54 36%

22 6%

29 12%

6 29%

28 7%

23 6%

19 32%

21 14%

33 21%

23 13%

13 8%

62 34%

6 11%

59 30%

21 11%

9 5%

4 20%

24 13%

3 13%

47 12%

23 6%

1 4%

1 5%

2 9%

2 10% 6.7

7.0

9 5%

5 2%

13 7%

28 14% 4 2%

5.8

6.0

4 17%

16 9%

3 5%

10 6%

18 8%

1 4%

9 7%

14 8%

1 2%

1 4%

19 10%

8 14%

18 12%

27 12%

3 13%

17 13%

29 16%

4 11%

29 19%

3 15%

33 18%

10 16%

27 18%

43 18%

5 21%

18 14%

29 16%

7 5%

10 6%

2 3%

10 7%

12 5%

8 6%

8 4%

12 8%

3 2%

10 7%

13 8%

6.3

7.0

6 29%

2 10% 5.5

7.0

11 6%

3 2%

11 6%

25 14%

1 -

5.9

6.0

1 2%

3 5%

4 6%

9 15% 2 4%

5.8

7.0

9 6%

2 1%

8 5%

15 10% 3 2%

6.2

7.0

17 7%

4 2%

14 6%

23 10% 4 2%

6.1

7.0

1 4%

7 30% -

5.2

5.0

4 3%

2 2%

10 8%

17 14% 2 2%

6.0

7.0

11 6%

5 2%

12 6%

21 12% 2 1%

6.0

7.0

14 8%

11 9%

7 11%

14 8%

16 13%

9 24%

28 16%

18 14%

5 9%

1 2%

12 7%

8 7%

3 5%

2 5%

1 3%

1 1%

12 7%

6 10%

3 2%

1 1%

6.1

6.3

20 12%

5.4

5.0

2 3%

9 8%

6 18% 1 3%

2 1%

7 11%

7.0

9 7%

7.0

11 5%

24 12%

2 4%

9 6%

5 11%

35 15%

45 21%

8 16%

36 15%

1 28%

30 20%

10 5%

3 7%

15 7%

6 4%

4 2%

10 5%

1 2%

1 3%

11 17%

30 14%

7 15%

5.7

5.8

6.1

7.0

21 9%

5 2%

6.0

1 2%

7.0

14 6%

3 1%

15 6%

12 8%

9 6%

5 3%

10 7%

20 9%

2 72%

24 16%

6.3

2.1

5.6

7.0

1.0

2 1%

5.0

M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H 2019 STATE OF 2, 2019 PAGE 85 Table 17-3 QUESTION 12: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Retaining qualified workers BANNER 3

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

92 23%

298 74%

202 50%

151 38%

119 30%

30 32%

117 39%

82 41%

61 40%

56 47%

69 23%

39 19%

55 18%

38 19%

52 13%

12 13%

141 35%

30 32%

8 - 10 ------

150 37%

1 - 4 -----

103 26%

32 35%

69 17%

11 12%

5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

30 7%

7 7%

39 13%

109 37% 23 8%

30 15%

79 39%

20 14%

56 37%

33 22%

95 24%

101 25%

41 43%

274 68%

170 42%

169 42%

171 43%

28 28%

109 40%

73 43%

70 42%

70 41%

22 23%

35 34%

73 27%

44 26%

40 24%

13 14%

11 11%

52 19%

33 19%

30 18%

21 18%

15 15%

36 30%

32 33%

26 22%

14 7%

15 10%

12 10%

13 14%

25 17%

23 19%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

11 11% 34 34% 6 6%

33 12% 88 32% 24 9%

26 15% 50 30% 14 8%

25 15% 57 34%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

28 39%

57 39%

52 35%

24 14%

15 22%

50 29%

31 44%

22 15%

58 40%

24 17%

52 36%

19 13%

67 45%

55 28%

29 17%

8 12%

26 17%

26 18%

27 19%

6 13%

9 13%

12 16%

37 19%

31 16%

11 8%

4 9%

4 5%

3 4%

11 6%

16 9%

17 10%

4 5%

9 6%

7 5%

6 4%

19 11%

20 12%

13 18%

20 13%

19 13%

23 16%

71 18%

15 16%

54 18%

37 18%

29 19%

17 15%

13 13%

17 16%

44 16%

24 14%

27 16%

23 13%

14 20%

29 20%

25 17%

22 6%

5 6%

17 6%

12 6%

10 6%

8 7%

10 10%

5 5%

16 6%

9 5%

8 5%

6 3%

4 5%

11 7%

15 16%

33 11%

12 6%

13 9%

11 9%

7 7%

19 19%

33 12%

22 13%

20 12%

27 16%

4 6%

7 5%

7 2%

25 6%

49 12%

6 1%

6.0

7.0

4 4%

8 9% 1 1%

5.5

5.0

4 1%

15 5% 3 1%

6.1

7.0

5 3%

10 5% 2 1%

6.4

7.0

4 3%

6 4% 1 1%

6.2

7.0

4 4%

3 2% 1 1%

6.5

7.0

4 4% 2 3% 1 1%

6.5

7.0

1 1%

10 10% 4 4%

5.3

5.0

7 2%

18 6% 4 1%

6.0

7.0

3 2%

10 6% 3 2%

6.1

7.0

11 6% 4 2% 9 5% 2 1%

6.2

7.0

M E E T I N G S T R E E T

143

71 36%

46 24%

19 11%

8 5%

64 33%

26 36%

30 11%

14 5%

67 34%

19 26%

26 36%

24 33%

14 14%

3 3%

82 42%

29 39%

21 11%

24 34%

12 12%

8 8%

19 26%

29 40%

196 49%

31 16%

15 33%

14 12%

5 4%

18 24%

21 44%

196 49%

8 11%

28 19%

17 11%

10 7%

10 22%

73 18%

2 2%

36 25%

29 14%

14 7%

74 18%

2 3%

32 22%

38 13%

17 6%

72 18%

2 5%

12 18%

9 10%

5 6%

47 12%

48 28%

47 12%

23 6%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

8 4% 6 3% 10 6% 2 1%

6.0

7.0

4 6% 1 1%

9 6% 3 2%

4 5%

12 8%

6.6

7.0

6.3

7.0

R E S E A R C H

2 4%

6 9%

6 8%

4 7%

7 10%

33 22%

13 27%

16 22%

10 7%

11 7%

2 3%

12 8%

8 6%

11 23%

8 5% 4 2% 10 7%

6.2

7.0

2 1% 7 5%

6.2

7.0

3 7%

1 2%

4.8

5.0

6 9%

14 7%

15 8%

3 4%

22 11%

17 23%

13 18%

31 16%

38 19%

3 4%

3 5%

5 7%

12 6%

9 4%

18 25%

16 22%

13 18%

15 8%

34 17%

5.0

5.7

6 8%

2 3%

1 1%

5.0

3 1%

5 6%

8 11%

2 2%

3 1%

5.3

6.2

5.0

17 8%

7.0

22 11%

5 2%

8 4%

3 2%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 86 Table 17-4 QUESTION 12: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Retaining qualified workers BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

150 37%

56 64%

128 45%

19 19%

23 55%

62 43%

25 30%

13 31%

2 27%

44 36%

38 41%

58 39%

1 12%

86 40%

66 44%

53 41%

62 50%

52 49%

99 52%

45 37%

28 25%

10 9%

21 11%

36 30%

38 33%

20 25%

14 30%

20 18%

41 21%

21 18%

14 12%

13 16%

13 28%

52 13%

141 35%

31 35%

20 23%

47 17%

99 35%

3 3%

37 36%

6 15%

12 29%

23 16%

56 39%

6 7%

27 32%

6 15%

21 49%

2 30%

17 14%

44 36%

14 16%

34 37%

19 13%

54 36%

4 37%

34 16%

76 35%

23 16%

60 39%

22 17%

51 40%

27 22%

43 34%

1 - 4 -----

103 26%

12 13%

56 20%

44 43%

7 17%

26 18%

30 36%

8 20%

3 43%

34 28%

20 22%

36 24%

5 51%

52 24%

25 17%

24 18%

20 16%

69 17%

17 20%

55 19%

12 12%

10 25%

26 18%

14 17%

6 14%

2 27%

17 14%

19 20%

26 17%

1 12%

39 18%

28 19%

22 17%

8 5%

1 8%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

30 7%

8 9%

25 9%

47 12%

10 12%

42 15%

71 18%

6 7%

1 1%

23 6%

7 2%

22 6%

25 6%

3 4%

5 6%

4 3%

7 15%

13 9%

5 6%

1 2%

11 9%

5 6%

13 8%

6 5%

5 11%

22 15%

8 10%

7 17%

1 16%

15 12%

16 18%

15 10%

42 15%

24 24%

6 14%

25 17%

15 18%

12 27%

1 14%

23 19%

13 14%

12 4%

9 8%

2 4%

8 6%

5 7%

3 8%

10 8%

4 4%

16 6%

6 2%

21 7%

7 6%

2 2%

4 4%

2 4%

2 5%

9 6%

2 1%

5 3%

4 4%

3 3%

11 14%

2 4%

1 2%

7 6% 2 2%

9 7%

4 5% 2 2%

3 4%

13 6%

14 10%

9 7%

14 11%

22 20%

45 42%

10 10%

40 21%

71 37% 18 9%

11 9%

39 33%

13 11%

7 6%

46 40% 7 6%

24 13%

17 14%

13 12%

10 12%

5 10%

30 20%

2 20%

35 16%

23 15%

20 16%

19 15%

24 22%

35 18%

15 12%

24 21%

12 16%

8 17%

6 4%

3 29%

15 7%

9 6%

10 8%

7 6%

5 5%

4 2%

6 5%

9 7%

8 11%

1 2%

6 8%

4 2%

9 6%

1 12%

14 6% 4 2%

11 5%

10 6%

1 1%

7 4%

8 7%

2 1%

4 3%

8 7%

2 2%

6 4%

8 7%

3 3%

1 1%

12 6%

1 -

8 4%

7 6%

5 5%

10 8%

8 7%

1 1%

10 9%

11 13%

3 6%

3 43%

13 11%

11 12%

18 12%

1 10%

22 10%

9 6%

8 6%

6 4%

1 1%

8 4%

15 12%

18 16%

6.0

7.5

6.6

4.4

6.8

6.5

5.3

6.1

4.4

5.9

6.3

6.0

4.3

6.2

6.7

6.6

6.9

7.1

7.0

5.9

5.2

7.0

8.0

7.0

5.0

8.0

7.0

1 1%

5.0

6.0

5.0

6.0

7.0

1 2%

14 13%

11 8%

13 29%

15 12%

3 7%

5 6%

19 41%

22 17%

30 29%

3 3%

27 35%

5 11%

27 18%

18 6%

2 1%

27 35%

27 13%

6 7%

10 13%

46 12%

1 9%

49 12%

6 1%

77 19%

2 1%

6.0

3.0

1 -

7.0

1 1%

7.0

8.0

7.0

2 2%

5.0

5 7%

3 4%

2 3%

3 4%

6.1

6.0

1 2%

11 24%

5.6

7.0

M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H 2019 STATE OF 2, 2019 PAGE 87 Table 17-5 QUESTION 12: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Retaining qualified workers BANNER 5

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 -----5 - 7 -----

1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

212 53%

145 36%

108 27%

63 43%

34 31%

52 13%

31 15%

25 17%

141 35%

71 34%

52 36%

150 37%

77 36%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

69 45%

28 33%

10 9%

14 15%

8 11%

8 12%

42 13%

10 12%

7 11%

14 17%

24 15%

42 39%

32 34%

30 38%

35 50%

110 35%

30 37%

23 37%

33 40%

46 30%

35 38%

28 36%

26 36%

124 39%

26 32%

16 25%

33 41%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

5 6%

32 10%

10 23%

7 13%

19 19%

5 11%

19 19%

26 12%

33 38%

116 36%

11 25%

16 30%

30 30%

17 34%

42 42%

75 35%

107 34%

23 52%

25 27%

21 26%

10 14%

80 25%

23 28%

23 37%

15 18%

39 25%

21 24%

90 28%

69 17%

31 15%

23 16%

20 18%

10 11%

16 20%

13 19%

60 19%

8 10%

6 9%

12 14%

30 19%

21 24%

52 16%

10 24%

9 16%

12 12%

8 17%

16 16%

41 19%

23 6%

13 6%

8 5%

9 8%

4 5%

5 7%

21 7%

2 2%

5 8%

4 4%

9 6%

5 6%

21 7%

5 9%

2 2%

1 2%

8 8%

14 6%

47 12%

24 11%

18 13%

14 13%

11 12% 9 9%

4 5%

14 18%

4 5%

14 19%

22 7%

38 12%

7 9%

3 4%

9 11%

11 17%

8 9%

15 18%

15 10% 13 8%

3 3%

6 7%

24 7%

35 11%

2 6%

5 13%

7 14%

6 12%

10 10%

14 14%

6 11%

7 15%

21 21%

79 36%

29 27%

5 4%

13 26%

37 37%

29 20%

15 10%

26 26%

20 38%

60 28%

14 7%

14 26%

41 41%

103 26%

30 7%

10 22%

23 43%

3 3%

17 17%

61 28%

12 5%

20 9%

71 18%

35 17%

26 18%

19 17%

19 20%

12 15%

17 23%

51 16%

19 24%

7 12%

14 17%

25 16%

22 26%

60 19%

5 13%

5 9%

14 14%

9 18%

17 17%

41 19%

22 6%

8 4%

4 3%

9 8%

7 8%

4 5%

3 4%

19 6%

3 4%

6 10%

4 5%

6 4%

4 4%

17 5%

1 3%

2 3%

4 4%

2 4%

4 4%

17 8%

3 4%

37 12%

12 15%

13 21%

10 11%

46 14%

7 2%

25 6%

49 12% 6 1%

6.0

7.0

4 2%

2 1%

17 8%

10 7%

4 2%

2 1%

31 15%

5.8

6.0

12 8%

6.4

7.0

3 3%

4 4%

13 12% 3 3%

5.7

6.0

2 2%

4 4%

12 14%

6.0

5 6%

4 5%

5 7%

9 11%

6.0

7.0

6.4

7.0

6 2%

19 6%

4 1%

6.0

7.0

2 2%

5 7%

2 2%

5.6

5.0

1 1%

4 6%

4 5%

1 1%

5.2

6.0

6 7%

6.5

7.0

M E E T I N G S T R E E T

144

3 2%

10 6%

20 13%

6.2

7.0

3 3%

5 6%

4 5%

5.6

5.0

6 2%

21 7%

3 7%

6 12%

6 2%

1 2%

5.7

6.0

R E S E A R C H

2 4%

3 8%

6.7

8.0

2 2%

9 9%

3 5%

2 5%

2 2%

4 4%

4 2%

12 5%

6 11%

10 10%

6 12%

10 10%

29 13%

6.2

6.3

6.1

6.3

5.8

7.0

3 3%

7.0

1 2%

7.0

2 1%

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 88 Table 18-1 QUESTION 13: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Economic and global uncertainty BANNER 1

BASE=SAMPLE A 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

76 38%

44 22%

20 10%

19 10%

33 16%

15 19%

8 19%

1 5%

3 14%

12 6%

95 48%

6 8%

35 46%

1 1%

25 57%

9 43%

68 34%

26 35%

10 24%

10 48%

16 8%

6 8%

7 15%

1 5%

5 2%

18 9%

27 14%

50 25%

2 2%

4 5%

13 17%

1 2%

6 14%

5 12%

19 25%

14 31%

22 11%

8 11%

4 10%

16 8%

7 9%

3 7%

18 9%

12 6%

2 1%

5.1

5.0

9 12% 3 3%

5.2

5.0

1 7%

3 13%

78 39%

87 44%

51 26%

47 24%

100 50%

58 29%

39 20%

6 16%

23 19%

10 12%

14 16%

10 19%

7 16%

17 17%

8 14%

4 10%

17 44%

7 6%

60 50%

10 23%

9 16%

4 11%

30 52%

21 55%

4 10%

21 48%

3 6%

28 54%

2 5%

16 50%

58 29%

17 8%

34 17%

1 6%

12 24%

20 14%

9 11%

12 21%

3 17%

7 21%

9 43%

7 14%

21 42%

5 3%

73 50%

4 5%

39 48%

5 8%

26 45%

8 48%

2 7%

17 51%

39 39%

19 32%

10 27%

12 27%

16 30%

12 37%

10 51%

18 34%

50 35%

31 39%

20 34%

6 35%

9 26%

2 5%

13 11%

3 4%

9 10%

5 10%

2 4%

9 9%

5 8%

2 5%

5 11%

5 10%

2 6%

1 6%

4 8%

12 8%

4 6%

6 10%

2 11%

3 9%

4 11%

18 15%

8 10%

10 17%

4 22%

4 9%

12 10%

2 10% 1 7%

2 10%

5 14%

3 2%

10 8%

3 7%

10 8%

4.1

43 43%

7 19%

3 9%

80 41%

15 32%

2 10%

4.0

25 52%

2 3%

145 73%

13 26%

12 10%

1 5%

28 55%

7 7%

51 26%

37 42%

6 15%

2 9%

3 7%

20 10%

31 40%

3 16%

35 40%

4 7%

32 16%

37 31%

1 5%

5 24%

35 45%

3 4%

52 26%

15 38%

7 19%

5 6%

44 22%

7 36%

6 29%

2 11%

5.5

9 47%

120 61%

5 23%

3 7%

5.0

1 5%

39 20%

2 10%

1 3%

4.9

5.0

3 7%

1 2%

5.2

5.0

32 27%

2 2%

8 10%

5 10%

17 23%

19 22%

18 36%

10 12%

15 18%

6 8%

9 10%

9 11% 6 7%

10 12%

2 3%

5.3

1 2%

8 11%

3 2%

5.0

2 2%

4.8

5.0

7 9%

2 4%

4 9%

5 9%

10 21%

6 7%

5 10%

6 13%

7 8%

2 4%

3 6%

1 1%

4.8

5.0

2 3%

4 8%

5.4

9 9%

7 13%

1 3%

1 2%

2 4%

4 9%

8 24%

11 22%

7 23%

10 27%

5 13%

12 23%

6 6%

8 13%

4 11%

5 11%

3 6%

5 16%

9 9%

2 3%

2 5%

3 6%

2 3%

3 9%

4 8%

16 16%

3 6%

8 8%

5.4

2 5%

7 12%

25 25%

5.0

2 3%

9 9%

10 22%

5.0

1 1%

5.0

16 27%

10 25%

5 8%

1 3%

5 8%

3 8%

1 2%

5.2

5.5

5.0

14 31% 3 6%

2 4%

1 2%

5.6

5.0

5 9%

6 11%

5.2

5.0

1 4%

1 2%

3 7%

4 18%

11 22%

4 9%

4 22%

7 13%

1 3%

7 34%

9 18%

2 8%

3 13%

1 2%

5.2

5.0

1 4%

4.1

3.0

3 6%

5.7

6.0

4 2%

14 10%

16 11%

43 30%

8 10%

2 3%

4 7%

1 6%

2 5%

5 16%

5 14%

23 28%

12 21%

4 27%

7 21%

13 9%

14 18%

5 8%

2 12%

1 3%

15 10%

7 9%

14 9%

9 6%

2 1%

4.9

5.0

7 9%

7 12%

1 7%

3 3%

5 8%

3 17%

1 2%

4.8

5.0

4 6%

5.4

5.0

2 6%

3 10%

1 3%

5.6

6.0

M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H 2019 STATE OF 2, 2019 PAGE 89 Table 18-2 QUESTION 13: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Economic and global uncertainty BANNER 2

BASE=SAMPLE A 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----198 100%

95 48%

88 45%

183 93%

33 16%

11 12%

15 17%

26 14%

12 6%

95 48%

3 3%

41 43%

5 6%

49 55%

8 4%

5 2%

42 45%

23 26%

65 36%

16 8%

4 4%

10 11%

14 8%

27 14%

14 15%

12 14%

26 14%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

18 9%

5 5%

5 6%

10 11%

6 50%

5 42%

68 34% 5 2%

4 34%

89 49%

1 - 4 ----9

13 7%

9 10%

47 50%

73 37%

7 10%

17 23%

35 48%

13 13%

10 14%

1 6%

7 9%

13 7%

1 8%

5.1

5.0

12 12% 1 1%

4.6

5.0

2 2%

1 2% 5.5

5.0

2 1% 5.0

5.0

7.3

8.0

6 6%

8 8%

2 2% 4.8

5.0

2 6%

9 12%

5 15%

7 9%

2 18%

14 14%

5 6%

4 5%

5 6%

5.5

5.0

1 7% -

6.0

7.0

28 37%

32 42%

23 28%

6 9%

15 44%

5 6%

13 40%

1 1%

1 8%

22 12%

10 10%

1 12%

1 2%

21 26%

11 13%

10 11%

1 8%

47 58%

2 16%

12 12%

2 1%

14 12%

2 18%

22 11%

16 8%

15 20%

6 8%

5 7%

19 26%

12 7%

5 16%

7 10%

9 10%

26 27%

3 3%

12 15%

4 36%

6 6%

2 19% 2 16%

9 10%

5 39%

2 14%

2 16%

3 4%

48 26%

12 6%

114 57%

3 25%

16 9%

18 10%

77 39%

21 29%

1 1%

26 30%

8 10%

34 17%

37 38%

21 23%

10 10%

81 41%

1 8%

50 25%

18 9%

12 6%

3 8%

53 47%

64 32%

83 42%

5 40%

12 19%

9 10%

2 15%

5 40%

4 6%

34 53%

4 4%

40 48%

23 12%

84 43%

66 33%

7 29%

17 20%

11 17%

3 12%

8 32%

6 7%

44 52%

3 4%

27 42%

26 13%

102 51%

26 13%

119 60%

6 21%

15 15%

4 14%

16 14%

3 10%

10 37%

7 7%

55 54%

2 6%

1 3%

4 3%

1 1%

11 9%

17 27%

34 41%

9 38%

22 26%

27 41%

11 42%

29 29%

7 25%

6 5%

3 25%

6 10%

4 5%

4 18%

8 10%

7 11%

3 11%

6 5%

1 5%

8 7%

16 14%

1 8%

9 14%

14 17%

1 4%

12 14%

10 15%

2 9%

15 14%

3 10%

1 100%

8 12%

1 3%

14 12%

3 5%

2 8%

9 8%

6 23%

30 30%

10 38%

9 10%

6 16%

8 10%

16 14%

5 8%

14 17%

6 24%

2 2%

8 12%

6 21%

8 8%

5 6%

4 11%

4 6%

6 8%

2 7%

1 1%

1 1% 5.5

5.0

3 8% -

4.9

5.0

9 11%

8 10% 1 2%

4.9

5.0

M E E T I N G S T R E E T

145

9 8%

8 7%

1 1% 4.9

5.0

3 5%

2 14% -

5.9

5.0

1 2% 5.4

5.0

R E S E A R C H

5 6%

1 1% 4.8

5.0

5.5

5.0

7 8%

5 6%

1 2% 5.5

5.0

1 3%

4 5%

3 11%

5 8%

5.1

5.0

2 7%

5.0

6 6%

9 9%

2 2% 5.2

5.0

21 30%

18 15%

12 18% 10 16%

8 12%

22 26% 8 9%

10 10%

43 36%

5 20%

2 7%

1 5%

3 3%

20 25%

7 9%

6 9%

19 30%

5 8%

10 12%

2 3%

4 32%

1 6%

2 8%

4 4%

26 23%

11 10%

6 7%

17 22%

8 10%

6 9%

1 1%

7 22%

2 5%

2 3%

16 24%

32 46%

2 20% -

8 11%

1 100%

45 40% 3 2%

69 35%

60 50%

12 10%

7 9%

4 4%

1 -

15 56%

4 5%

13 16%

2 7%

1 1%

5 5%

12 6%

2 7%

4 14% 1 5%

5.0

31 26% 9 8%

9 8% 1 -

5.0

5 8%

18 26%

12 17%

4 5%

6.0

2 3% -

5.5

5.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 90 Table 18-3 QUESTION 13: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Economic and global uncertainty BANNER 3

BASE=SAMPLE A 10 - VERY CONCERNED ------------------8 - 10 ------

5 - 7 -----

1 - 4 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

49 25%

144 73%

109 55%

70 36%

54 27%

46 23%

33 16%

6 13%

26 18%

17 16%

9 13%

7 13%

9 19%

8 16%

12 6%

3 5%

95 48%

27 56%

5 2%

1 2%

68 34% 16 8%

15 30%

9 7%

64 44%

53 37% 4 2%

4 4%

4 6%

5.1

5.0

99 50%

14 17%

16 20%

5 15%

16 21%

13 17%

12 17%

3 14%

3 9%

5 13%

4 10%

14 15%

18 18%

27 33%

14 39%

22 29%

23 32%

26 35%

8 41%

12 36%

13 38%

13 35%

29 31%

8 9%

1 3%

7 10%

6 9%

6 8%

3 14%

2 6%

3 9%

2 6%

5 5%

8 10%

7 19%

11 15%

14 19%

11 15%

2 9%

4 12%

3 9%

7 20%

21 22%

5 6%

6 17%

9 12%

2 8%

5 15%

4 12%

3 8%

9 9%

4 5%

2 5%

4 6%

4 5%

2 10%

1 1%

17 47%

3 3%

8 7%

29 27% 13 12%

3 4%

7 10% 16 23%

16 29% 2 3%

13 29%

4 9%

7 14%

8 18%

3 7%

5 8%

5 11%

1 2%

5 10%

6 11% 17 32%

2 5%

16 12%

18 13%

11 12%

11 13%

12 14%

8 10%

11 13%

11 12%

10 12%

5 11% 1 2%

9 6%

2 1%

8 10%

9 10% 1 1%

8 9%

1 2%

4.9

5.3

5.0

5.1

5.3

1 1%

1 2%

5 9%

1 2%

5.1

5.2

4.9

5.2

5.5

3 8%

5.0

8 6%

5.0

4 5%

8 9% 2 2%

5.0

20 23%

10 12%

18 13%

10 7%

17 20%

6 6%

6 12%

2 4%

33 24%

6 6%

32 36%

4 8%

7 10%

5.0

11 8%

32 37%

14 29%

5 5%

5.0

4 9%

45 33%

12 27%

5 10%

5.0

17 36%

3 6%

8 11%

5.0

95 48%

2 2%

3 4%

1 2%

37 19%

5 3%

4 3%

2 1%

34 17%

12 8%

10 7%

34 17%

2 4%

11 15%

13 15%

5 6%

7 8%

5.0

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----20 10%

2 3%

14 13%

6 12%

75 38%

2 3%

14 10%

16 8%

73 37%

3 3%

4 8%

12 6%

74 37%

4 11%

38 45%

18 9%

17 12%

36 18%

40 46%

8 11%

5 10%

24 17%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

6 7%

39 46%

17 16%

22 11%

83 42%

6 7%

68 49%

20 14%

32 22%

87 44%

5 6%

21 45%

7 15%

15 31%

85 43%

8 6%

23 50%

27 14%

50 25%

138 70%

30 56%

29 41%

10 9%

12 8%

3 7%

31 44%

36 33%

12 9%

5 10%

4 9%

54 49%

3 5%

18 9%

4 7%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

19 24%

5.0

1 2%

9 26% 3 8%

6 8%

36 48% 3 4% 6 8%

19 26% 5 7%

3 8%

5.1

5.0

4 5%

5.5

5.0

4 6%

37 50% 2 2% 4 6%

19 26% 7 10% 4 5%

1 1%

5.3

5.0

4 6%

36 48% 2 2% 6 8%

9 46%

1 5%

19 25%

7 32%

8 11%

1 4%

6 7%

5.2

5.0

4 18%

4.4

5.0

1 3%

2 4%

18 55%

16 46%

2 6%

2 4%

19 52%

5 13%

4 13%

4 10%

4 11%

3 8%

1 3%

1 2%

4.8

5.0

3 3%

2 6%

11 31%

51 54%

12 37%

3 8%

6 6%

11 12%

10 26%

4 10%

42 43%

38 38%

2 2%

10 10%

7 7%

6 6%

19 20%

29 30%

9 9%

13 13%

7 7%

8 8%

4 5%

1 2%

6 6%

9 9%

8 8%

1 1%

4.8

5.3

5.0

1 1%

5.0

M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H 2019 STATE OF 2, 2019 PAGE 91 Table 18-4 QUESTION 13: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Economic and global uncertainty BANNER 4

BASE=SAMPLE A 10 - VERY CONCERNED -------------------

43 22%

134 68%

56 29%

11 26%

27 20%

5 9%

12 6%

5 11%

95 48%

19 45%

10 7%

21 11%

69 35%

49 25%

5 23%

12 18%

9 18%

2 4%

3 14%

27 48%

7 35%

5 7%

18 9%

1 2%

2 10%

23 48%

8 43%

62 31%

48 25%

66 34%

5 2%

100 51%

69 35%

59 30%

64 32%

47 24%

99 50%

58 29%

56 28%

14 22%

6 13%

11 17%

18 18%

12 17%

7 12%

12 18%

10 22%

15 16%

9 15%

12 21%

4 6%

4 7%

5 7%

5 5%

8 - 10 ------

33 16%

1 - 4 -----

68 34%

13 30%

44 32%

22 40%

9 43%

19 27%

16 33%

7 38%

1 27%

18 29%

15 31%

26 40%

16 8%

7 15%

13 10%

3 6%

1 4%

7 10%

5 10%

2 9%

7 11%

2 4%

6 9%

11 11%

27 14%

9 20%

17 12%

9 17%

2 8%

14 20%

7 14%

1 6%

1 24%

8 13%

11 23%

4 7%

1 23%

18 9%

3 8%

12 9%

6 11%

3 13%

7 10%

2 5%

2 12%

6 9%

2 4%

5 7%

1 2%

3 14%

4 6%

1 2%

2 10%

2 3%

1 1%

5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

5 2%

18 9%

50 25%

2 6%

8 19%

22 11%

3 8%

16 8%

3 6%

12 6%

2 1% 5.1

5.0

3 8%

5.6

6.0

63 47% 5 3%

11 9%

35 26%

6 10%

12 21%

12 9%

9 16%

9 6%

6 11%

11 8%

1 -

5.3

5.0

4.8

5.0

1 4%

1 3%

5 24% 2 7%

2 9%

5.1

5.0

38 55% 1 1%

7 10%

17 25%

3 6%

2 12%

15 31%

5 25%

9 19%

6 9%

3 7%

5.4

5.0

2 3%

3 19%

4 2%

5.1

5.0

3 73%

2 49%

30 49%

3 5%

4 7%

18 29%

26 54%

1 2%

M E E T I N G S T R E E T

146

2 6%

3 14%

5 9%

9 29%

3 16%

3 4%

1 1%

3 4%

3 6%

2 2%

1 2%

36 36%

18 27%

14 24%

22 35%

3 9%

11 16%

13 21%

9 14%

7 15%

14 14%

6 11%

13 13%

10 15%

6 10%

8 12%

8 17%

10 10%

4 6%

7 13%

5 7%

7 7%

2 3%

6 9%

2 4%

6 6%

6 10%

1 2%

1 3%

1 1%

5.3

5.8

5.2

5.0

4 77% -

26 25%

10 10%

5.2

5.0

7 7%

5.1

5.0

R E S E A R C H

8 12%

20 28% 3 4% 3 5%

5.5

5.0

4 8%

21 35% 4 8% 2 3%

5.0

8 13%

13 20% 5 8%

4 7%

5.0

6 13%

11 23% 2 4%

2 4%

5.0

7 7%

17 29%

12 12%

9 9%

3 7%

32 32%

5 9%

3 5%

13 28%

6 9%

16 24%

5.1

8 14%

1 1%

10 21%

5.0

5 8%

5.4

5 24%

1 1%

5 11%

5.0

6 20%

22 40%

4 7%

5.7

21 38%

32 55%

6.0

5 22%

17 55%

51 52%

2 10%

5.1

8 25%

3 11%

24 50%

11 17%

5.0

21 10%

4 8%

30 46%

8 12%

1 1%

31 16%

3 6%

38 64%

5 9%

6 6%

39 56%

4 6%

4 9%

46 46%

5 11%

4 7%

5 8%

5 100%

1 27%

4 6%

1 2%

28 43%

1 5%

3 4%

10 10%

28 28%

11 11% 5 5%

5.0

7 12%

18 32% 5 8%

8 14%

11 54% -

3 15%

10 18%

6 20%

5 23%

7 12%

2 6%

3 15%

2 5%

1 4%

3 4%

6 12%

5.2

5.3

5.0

2 6%

2 8%

5.0

2 5%

6.0

1 4%

5.7

6.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 92 Table 18-5 QUESTION 13: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Economic and global uncertainty BANNER 5

BASE=SAMPLE A

106 53%

67 34%

53 27%

43 22%

34 17%

8 - 10 ------

33 16%

19 18%

7 11%

11 22%

4 10%

1 - 4 -----

68 34%

34 32%

27 40%

18 33%

16 38%

10 - VERY CONCERNED -------------------

5 - 7 ----9

8 7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

12 6%

95 48% 5 2%

7 6%

52 49% 1 1%

16 8%

11 10%

27 14%

18 9%

50 25%

18 9%

2 4%

160 81%

37 19%

32 16%

35 18%

80 40%

42 21%

158 80%

5 16%

4 16%

29 18%

3 8%

6 20%

6 17%

16 20%

4 8%

6 18%

6 21%

52 33%

15 41%

14 45%

6 17%

28 35%

17 41%

22 66% 1 2%

17 62%

8 12%

6 11%

7 16%

8 22%

4 16%

8 8%

8 11%

6 12%

5 12%

3 8%

2 8%

25 24%

8 8%

1 1%

5.3

5.0

7 11%

17 26%

7 10%

6 9%

1 1%

4.8

5.0

4 8%

13 24%

5 10%

2 4%

4 8%

1 2%

5.3

5.0

3 7%

13 30%

5 12%

3 7%

4.9

5.0

2 6%

3 10%

15 14%

13 12%

7 7%

5.0

2 3%

22 53%

27 14%

3 8%

1 2%

16 8%

5.1

1 1%

23 43%

1 3%

7 13%

10 10%

2 1%

32 48%

3 5%

4 6%

22 11%

12 6%

3 4%

3 10%

12 35%

1 3%

2 5%

5.7

5.0

2 6%

3 13%

9 34%

11 7%

77 48%

5 3%

1 4%

18 48%

3 8%

10 33%

2 5%

14 9%

2 5%

21 13%

6 16%

4 12%

13 8%

5 14%

4 14%

16 10%

40 25%

2 7%

10 25%

6 19%

5.6

5.3

4.6

4.9

5.0

1 1%

5.0

1 2%

5.0

7 16%

1 3%

10 12%

2 4%

2 6%

1 3%

2 5%

1 3%

5.0

12 16%

2 6%

4 12%

3 4%

20 48%

2 5%

16 47%

12 7%

36 45%

2 4%

8 10%

4 13%

2 7%

3 8%

5 6%

3 9%

5 15%

19 12%

9 6%

23 67%

3 8%

1 3%

3 7%

2 6%

3 8%

5.6

5.0

5 6%

18 23%

2 4%

5 12%

8 20%

19 10%

25 10%

50 19%

25 16%

4 21%

2 8%

58 36%

7 38%

5 20%

8 5%

73 46% 3 2%

4 19%

7 27%

14 9%

3 14%

2 8%

40 25%

2 2%

7 16%

13 8%

5.3

5.0

1 2%

4.6

5.0

17 10%

16 10%

21 13%

17 68%

2 11%

7 17%

2 4%

8 41%

1 6%

14 9%

10 12%

7 8%

2 10%

1 6%

3 16% 1 6%

1 2%

24 9%

49 19%

113 43%

10 20%

4 15%

11 23%

22 19%

15 30%

10 40%

16 32%

37 32%

2 5%

24 48% -

8 15%

1 4%

10 42% 2 8%

1 4%

12 11%

12 24%

1 4%

5 10%

3 13%

5 10%

3 12%

2 1%

1 3%

1 2%

5.2

5 10%

6 24%

6 11%

5.0

15 13%

14 28% 2 4%

5.4

5.0

3 5%

5.2

5.0

4 15%

4.7

5.0

3 2%

3 7%

8 31%

2 8%

55 49%

13 11%

7 14%

3 6%

6 6%

6 13%

2 10%

2 8%

5.0

1 2%

7 14%

2 10%

5.0

22 45%

3 10%

10 7%

2 8%

4 9%

4 8%

2 4%

5.5

5.0

9 8%

32 28%

12 11%

3 2%

10 9%

5.3

5.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 93 Table 19-1 QUESTION 14: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Getting your products to market BANNER 1

BASE=SAMPLE B

64 32%

43 21%

28 14%

24 12%

43 21%

108 53%

95 47%

79 39%

57 28%

54 27%

103 51%

59 29%

40 20%

47 23%

45 22%

28 14%

26 13%

48 24%

154 76%

76 38%

49 24%

8 - 10 ------

21 10%

7 11%

7 17%

1 4%

5 11%

14 13%

7 7%

13 16%

6 10%

2 3%

15 15%

5 8%

1 3%

9 19%

3 6%

1 3%

2 10%

8 17%

13 8%

8 10%

8 16%

1 - 4 -----

127 63%

40 62%

27 63%

15 64%

29 69%

67 62%

60 64%

46 58%

41 71%

35 64%

64 62%

38 65%

25 62%

26 55%

34 77%

16 55%

15 57%

36 74%

91 59%

43 56%

31 63%

12 72%

29 67%

6 3%

2 4%

2 5%

1 2%

5 4%

1 1%

4 5%

2 3%

5 5%

1 2%

2 6%

2 5%

3 2%

3 4%

2 4%

1 2%

4 5%

1 2%

10 - VERY CONCERNED -------------------

5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

7 3%

51 25% 9 4%

9 4%

8 4%

4 6%

16 25% 1 1%

3 4%

2 5%

9 21% 3 7%

11 41%

15 55% 1 4%

2 5%

3 12% 2 8%

6 27% 1 4%

1 4%

34 17%

10 15%

6 14%

6 22%

27 13%

11 17%

6 14%

3 12%

15 7%

28 14%

3 4%

8 13%

3 7%

4 10%

2 6%

3 9%

5 19%

3 12% 2 9%

1 2%

9 20% 3 7%

1 2%

6 5%

25 23% 4 4%

5 4%

8 18%

16 15%

4 10%

17 16%

4 10%

11 25%

6 5%

13 12%

1 1%

26 28% 5 5%

4 4%

5 6%

19 25% 4 5%

4 5%

1 2%

11 19% 3 5%

2 4%

1 2%

18 19%

12 15%

8 14%

10 11%

8 11%

10 18%

9 10%

15 16%

2 3%

11 14%

5 9%

8 14%

1 1%

17 32% 1 2%

2 4%

3 5%

5 5%

22 22% 6 6%

5 5%

4 4%

2 3%

16 28% 2 3%

3 5%

4 6%

13 24%

13 13%

10 16%

9 16%

14 14%

10 17%

7 13%

9 17%

4 4%

17 16%

13 32% 1 3%

1 2%

4 8%

12 26% 4 9%

1 3%

3 7%

1 2%

7 17% 1 2%

11 38% 1 3%

2 4%

3 10%

1 2%

2 7%

9 33% 1 3%

3 6%

3 7%

4 2%

48 31% 6 4%

25 32% 2 3%

2 4%

9 33%

1 2%

33 21%

14 19%

7 5%

3 4%

8 5%

4 5%

6 8%

11 27%

8 17%

5 11%

6 22%

3 8%

8 17%

8 18%

2 6%

4 15%

6 13%

21 13%

7 10%

2 4%

8 20%

3 5%

8 20%

4 8%

3 7%

2 4%

11 26%

7 25%

4 17% 2 7%

3 7%

8 16%

11 7%

20 13%

4 5%

7 9%

3 6%

10 21% 3 6%

16 8%

43 21%

2 12%

3 7%

1 6%

3 16% 1 6%

10 23% 2 5%

1 2%

1 7%

3 6%

9 19%

1 9%

7 17%

7 15%

2 12%

7 15%

5 10%

7 14%

4 25% 1 6%

2 4%

7 16%

58 28%

18 28%

14 33%

8 28%

8 32%

10 24%

32 30%

25 27%

25 31%

17 30%

10 18%

29 28%

23 39%

5 14%

11 24%

13 30%

7 24%

5 19%

19 39%

39 25%

25 33%

12 24%

5 30%

13 31%

3.6

3.7

3.8

3.3

3.5

3.7

3.5

3.9

3.4

3.6

3.8

3.4

3.6

4.4

3.0

3.5

3.9

3.4

3.7

3.8

3.9

3.8

3.2

3 1%

3.0

2 2%

3.0

4.0

1 4%

3.0

2 1%

3.0

1 1%

3.0

1 1%

3.0

M E E T I N G S T R E E T

147

3.0

1 1%

3.0

R E S E A R C H

2 4%

4.0

2.0

1 4%

2.0

4.0

1 2%

2.0

2 1%

3.0

1 1%

3.0

4.0

2 4%

3.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 94 Table 19-2 QUESTION 14: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Getting your products to market BANNER 2

BASE=SAMPLE B

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- -----

202 100%

106 52%

83 41%

189 93%

8 4%

8 - 10 ------

21 10%

10 10%

11 13%

21 11%

1 - 4 -----

127 63%

69 65%

50 60%

119 63%

5 65%

65 64%

51 62%

5 54%

67 67%

11 45%

47 64%

79 65%

7 71%

39 61%

64 65%

9 76%

53 61%

29 50%

21 60%

76 72%

6 3%

1 1%

4 5%

6 3%

4 3%

1 1%

1 12%

2 2%

2 8%

2 3%

5 4%

1 1%

3 3%

2 3%

2 6%

2 2%

4 4%

2 21%

5 5%

1 4%

5 6%

2 20%

10 - VERY CONCERNED -------------------

5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

7 3%

51 25% 9 4%

4 4%

25 24% 5 5%

3 3%

22 27% 4 5%

7 4%

48 25% 9 5%

9 4%

4 4%

5 6%

9 5%

34 17%

19 18%

13 16%

32 17%

27 13%

16 15%

10 12%

26 14%

8 4%

15 7%

28 14%

3 2%

4 5%

5 5%

9 10%

16 15%

9 11%

3 35% -

7 3%

2 24%

14 7%

1 11%

25 13%

2 20%

101 50%

82 40%

9 5%

100 49%

25 12%

73 36%

122 60%

10 5%

65 32%

98 49%

12 6%

87 43%

58 28%

36 18%

106 52%

23 11%

114 56%

3 1%

79 39%

13 13%

5 6%

1 12%

11 11%

2 8%

6 8%

16 13%

5 7%

12 12%

9 11%

7 12%

5 14%

9 9%

10 9%

1 37%

9 11%

18 80%

69 61%

2 63%

54 69%

2 2%

4 5%

6 6%

22 22% 4 4%

5 5%

3 3%

1 1%

25 30% 3 4%

4 5%

1 11%

14 13%

17 21%

1 11%

15 15%

11 14%

8 8%

11 11%

13 16%

3 33% -

5 5%

21 21% 5 5%

6 6%

11 43% -

20 27% 4 6%

1 5%

2 3%

3 4%

6 5%

26 21% 6 5%

6 5%

2 18%

16 13%

1 8%

15 21%

13 11%

15 15%

1 3%

11 16%

20 16%

11 11%

4 15%

13 18%

1 2%

21 32% 3 4%

11 9%

9 34%

5 7%

1 10%

10 10%

2 7%

3 29%

6 5%

1 12%

6 6%

3 4%

1 2%

3 3%

23 23% 6 6%

3 24% -

7 7%

1 8%

7 7%

1 11%

6 10%

15 15%

2 14%

10 12%

7 12%

24 28%

12 20%

2 3%

10 15%

7 7%

14 14%

3 25%

31 31%

22 27%

3 35%

34 34%

5 20%

17 24%

32 26%

3 34%

22 33%

28 28%

5 37%

3.6

3.5

3.9

3.7

3.4

3.7

3.4

4.0

3.5

4.0

3.5

3.8

3.1

3.4

3.7

2.6

3.0

4.0

3.0

1 1%

3.0

2 2%

3.0

4.0

2 2%

3.0

1 4%

5.0

3.0

1 1%

3.0

3 5%

21 24%

2 22%

2 2%

5 8%

2 16%

54 29%

1 1%

3 5%

9 10%

22 27% -

3 3%

22 39%

17 26%

32 30% 1 1%

24 27%

2 3%

2 19%

58 28% 3 1%

4 4%

3.0

2.0

7 8%

11 13% 1 1%

3.7

3.0

14 25%

9 26% 3 8%

4 10%

4 4%

2 2%

34 30% 5 4%

8 7% 6 5%

4 20%

21 18%

3 8%

17 16%

3 11%

14 12%

4 8%

3 10%

4.3

3 3%

4 20%

4 3%

12 11%

4 10%

5.0

18 17%

6 16%

6 10%

5 4%

11 31% -

3.8

4.0

5 5%

20 19%

34 32% 3 2%

3.2

2.0

8 7%

1 37%

3 4%

16 20% 2 3%

1 1%

3 4%

12 16%

7 9%

5 21%

15 13%

1 40%

12 15%

11 48%

2.2

2.0

33 29%

3.7

3.0

1 23%

4.4

2.0

23 29%

3.5

3.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 95 Table 19-3 QUESTION 14: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Getting your products to market BANNER 3

BASE=SAMPLE B

44 22%

153 76%

93 46%

81 40%

65 32%

49 24%

55 27%

8 - 10 ------

21 10%

3 7%

18 12%

13 14%

7 9%

7 10%

8 16%

1 - 4 -----

127 63%

32 73%

91 59%

50 53%

46 56%

40 62%

6 3%

6 4%

3 3%

1 1%

10 - VERY CONCERNED -------------------

5 - 7 ----9

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

7 3%

51 25% 9 4%

2 4%

9 21% 1 2%

9 4%

1 2%

34 17%

5 12%

27 13%

5 3%

41 27% 8 5%

28 30% 7 7%

2 2%

28 34% 5 6%

4 4%

8 10%

29 19%

19 21%

3 7%

23 15%

12 13%

58 28%

19 43%

37 24%

17 19%

3.6

3.1

3.8

4.2

8 4%

15 7%

28 14% 3 1%

3.0

3 7%

5 11%

5 12% -

2.0

8 5%

4 4%

5 3%

10 6%

21 14% 3 2%

3.0

5 5%

9 10%

11 12% 2 2%

4.0

2 3%

18 28% 4 6%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----136 67%

85 42%

82 41%

88 44%

3 5%

19 14%

12 14%

10 13%

8 9%

23 47%

40 72%

80 59%

50 59%

50 61%

1 2%

1 1%

6 4%

3 3%

2 2%

3 5%

19 38% 4 8%

12 21% 2 4%

35 26% 9 7%

22 26% 7 8%

5 10%

15 19%

12 19%

10 20%

8 15%

23 17%

15 18%

10 13%

8 12%

7 14%

7 13%

19 14%

18 22%

14 22%

9 18%

21 38%

4.1

3.9

4.7

2.8

10 13%

7 8% -

4.0

3 5%

9 14%

9 13% -

4.0

4 8% 4 8%

3 6% -

5.0

2 3% 1 2%

10 19% 1 2%

2.0

7 5%

3 3%

3 5%

5 6%

1 2%

5 4%

3 4%

2 2%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----35 18%

74 36%

73 36%

1 2%

6 8%

7 9%

8 11%

49 67%

43 59%

1 2%

2 2%

3 4%

22 27%

21 24%

8 23%

19 25%

17 24%

6 7%

4 5%

2 3%

2 2%

49 66%

2 3%

38 19%

40 20%

35 17%

100 50%

97 48%

1 4%

3 7%

4 10%

5 14%

10 10%

25 66%

23 59%

21 61%

59 59%

64 66%

2 2%

4 4%

1 4%

2 5%

21 29%

8 28%

10 27%

3 4%

18 68%

1 2%

2 6%

2 5%

1 2%

2 5%

2 6%

1 3%

6 6%

2 2%

12 13%

4 12%

12 17%

12 16%

14 20%

6 22%

7 18%

9 22%

8 23%

18 18%

16 17%

11 12%

11 14%

13 15%

4 11%

11 14%

11 15%

4 15%

6 14%

4 11%

4 10%

14 14%

13 13%

36 26%

26 31%

25 30%

29 33%

13 35%

20 27%

19 27%

16 22%

8 31%

11 29%

11 28%

11 30%

21 21%

36 37%

3.9

3.8

3.7

3.4

3.0

3.5

3.6

4.0

3.1

3.6

3.8

3.7

3.9

8 6%

17 12% 2 1%

3.0

3 3%

11 13% -

3.0

2 2%

12 15% -

3.0

M E E T I N G S T R E E T

148

4 4%

13 15% -

3.0

4 11%

6 17% -

2.0

6 9%

13 17% -

3.0

R E S E A R C H

7 9%

12 16% -

3.0

2 3%

8 12%

9 12% -

4.0

1 3%

5 19% -

2.0

4 10%

5 12% -

3.0

2 4%

4 10%

4 11% -

4.0

1 3%

6 17% -

3.0

7 6%

22 22%

13 16%

2 2%

30 30%

5 5%

5 7%

2 5%

9 25%

2 2%

5 7%

6 6%

2 5%

12 31%

2 6%

5 6%

7 8%

1 3%

2 5%

5 6%

2 2%

27 75%

27 13%

4 4%

5 4%

2 3%

59 67%

3 4%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

5 5%

8 8%

16 16% 2 2%

3.0

2 2%

3 3%

5 5%

11 11% 1 1%

3.4

3.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 96 Table 19-4 QUESTION 14: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Getting your products to market BANNER 4

BASE=SAMPLE B 10 - VERY CONCERNED ------------------8 - 10 ------

5 - 7 -----

44 22%

151 75%

47 23%

22 11%

76 37%

34 17%

24 12%

3 1%

60 30%

44 22%

83 41%

5 3%

114 56%

82 41%

69 34%

61 30%

60 29%

92 45%

62 31%

58 29%

46 23%

25 13%

21 10%

4 9%

17 11%

4 9%

2 9%

8 11%

2 6%

2 8%

7 11%

8 18%

5 6%

14 12%

7 8%

6 8%

4 7%

6 10%

7 8%

4 6%

7 12%

7 15%

4 15%

23 51%

15 60%

7 3%

51 25%

1 2%

9 21%

6 4%

37 25%

1 2%

13 29%

1 4%

6 26%

2 2%

19 25%

1 3%

9 25%

1 4%

6 26%

1 35%

2 3%

20 33%

3 6%

10 23%

1 1%

19 23%

2 40%

4 3%

31 27%

1 1%

24 30%

1 1%

19 28%

2 3%

19 31%

1 2%

14 23%

3 3%

27 30%

3 4%

18 28%

2 3%

11 18%

1 - 4 -----

127 63%

31 70%

97 64%

29 62%

14 65%

48 63%

22 64%

16 65%

2 65%

34 56%

26 58%

58 70%

3 60%

69 61%

51 62%

44 64%

37 61%

38 64%

57 62%

41 66%

41 70%

6 3%

4 3%

1 2%

2 2%

1 3%

1 5%

2 3%

3 6%

1 1%

3 3%

2 3%

1 1%

1 2%

2 2%

1 2%

1 1%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

9 4%

3 6%

9 4%

1 2%

34 17%

7 17%

27 13%

8 18%

8 4%

15 7%

1 2% 3 8%

7 4%

6 4%

2 4%

1 4%

5 6%

7 6%

4 5%

3 4%

2 3%

4 6%

3 3%

4 7%

4 9%

1 2%

1 3%

3 6%

1 2%

4 4%

1 18%

5 4%

3 4%

2 3%

4 4%

3 5%

2 4%

25 16%

9 18%

5 22%

13 18%

6 17%

4 15%

14 22%

8 19%

11 13%

1 22%

20 18%

16 20%

14 20%

14 23%

11 19%

20 21%

12 20%

7 13%

10 21%

4 14%

22 14%

6 12%

11 14%

3 8%

5 21%

5 9%

4 9%

15 18%

2 42%

15 13%

11 14%

10 14%

11 18%

9 15%

12 13%

7 11%

6 11%

5 11%

2 8%

9 26%

7 28%

2 65%

20 34%

15 34%

19 32%

11 25%

3.2

3.6

3.1

3.8

4.0

3.4

4.2

7 4%

14 9%

2 4% 1 2%

3 14%

3 13%

3 4%

8 10%

2 5% -

10 29%

3 1%

2 5%

40 27%

3.7 3.0

17 36%

3.5 3.0

5 22%

3.7 3.0

20 27%

3.7 3.0

2.0

2 7% 2 8%

2 8%

3.0

1.0

3 5%

3 4%

5 9%

3.0

1 2%

4 8%

5 6%

7 9%

6 5%

8 7%

5 6%

7 9%

4 5%

6 8%

3 5%

5 9%

1 1%

7 12%

4 4%

7 8%

2 4%

5 8%

1 2%

5 8%

3 6%

16 20%

1 18%

21 18%

9 11%

12 18%

8 13%

12 19%

15 17%

10 16%

11 19%

2 3%

3.4

4.0

20 24%

3.0

25 22%

3.9 3.0

24 29%

3.6 3.0

17 24%

3.6 3.0

13 21%

3.7 3.0

11 18%

3.7 3.0

23 25%

3.6 3.0

19 31%

3.4 3.0

2.0

1 3%

2 8%

1 35%

9 13%

3.0

1 4%

3 16%

3.4

3 4%

1 4%

5 12%

3.0

3 6%

3 4%

22 14%

3.6

3 5%

6 25%

1 4%

8 18%

12 26%

15 32%

1 4%

3 6%

28 14%

58 28%

2 4%

4 8%

3 6%

2 8%

1 3%

3 10%

4 9%

5 20%

1 2%

4.0

6 23%

4.1 4.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 97 Table 19-5 QUESTION 14: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Getting your products to market BANNER 5

BASE=SAMPLE B 10 - VERY CONCERNED ------------------8 - 10 ------

106 53%

78 39%

55 27%

49 24%

46 22%

45 22%

159 78%

44 22%

31 15%

47 23%

74 37%

45 22%

162 80%

24 12%

29 11%

50 19%

27 11%

51 19%

105 40%

21 10%

12 11%

8 10%

8 14%

5 9%

6 12%

5 11%

18 11%

3 7%

1 3%

9 20%

6 8%

4 8%

20 12%

1 4%

8 17%

1 4%

4 8%

14 13%

7 3%

4 3%

1 1%

4 7%

2 4%

7 4%

1 3%

1 2%

5 6%

7 4%

3 7%

1 2%

6 5%

5 - 7 -----

51 25%

30 28%

20 25%

15 27%

12 24%

9 21%

11 25%

39 24%

13 29%

4 14%

11 24%

22 30%

12 26%

38 24%

6 26%

9 30%

11 23%

7 26%

10 21%

25 24%

9 4%

6 6%

3 4%

2 4%

1 2%

7 4%

2 5%

4 9%

1 1%

3 6%

8 5%

1 4%

3 6%

1 4%

1 2%

4 4%

1 - 4 ----8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

127 63%

6 3%

9 4%

8 4%

62 58%

2 2%

5 5%

48 62%

4 4% 1 2%

4 5%

31 56%

2 4% 4 7%

2 3%

33 66%

3 6% 1 2%

3 6%

31 67%

2 4% 1 3%

2 4%

27 61%

2 4% 1 2%

2 5%

99 63%

4 3% 8 5%

7 5%

28 64%

1 3%

3 8%

7 14%

8 25%

8 17%

6 14%

8 18%

24 15%

10 24%

27 13%

12 12%

8 10%

5 10%

9 19%

9 21%

5 11%

22 14%

5 12%

58 28%

29 27%

25 32%

13 23%

7 15%

11 25%

47 30%

11 24%

28 14% 3 1%

3.6

3.0

12 11% 3 2%

3.8

3.0

11 15% 3 3%

3.4

3.0

8 15% 1 2%

4.1

4.0

5 11%

7 15%

11 22%

3.6

3.0

5 12%

9 20% -

3.9

3.0

3 6%

9 19% 2 4%

3.6

3.0

12 7%

19 12% 3 2%

3.7

3.0

1 1%

4 6%

9 17%

5 8%

4 9%

3 6%

14 18%

4 5%

46 62%

2 6%

1 2%

20 19%

8 8%

24 53%

1 3%

34 17%

15 7%

25 83%

3 7%

9 21%

3.4

3.0

4 12%

3 9%

11 36%

2.9

3.0

102 63%

1 2%

6 3%

17 70%

20 70%

29 59%

2 4%

18 66%

36 71%

64 61%

2 4%

5 4%

2 7%

1 2%

5 4%

8 5%

1 4%

2 8%

1 2%

1 3%

16 22%

7 16%

23 14%

4 18%

5 17%

8 17%

5 17%

9 19%

16 15%

6 13%

8 11%

3 8%

24 15%

2 8%

6 22%

9 17%

3 10%

10 19%

15 14%

12 25%

22 30%

12 26%

52 32%

4 15%

8 27%

13 27%

8 28%

9 18%

31 30%

3.2

4.1

3.4

3.3

3.8

2 4%

5 11%

2 4%

2 3%

4.4

4.0

M E E T I N G S T R E E T

149

28 63%

2 2%

2 3%

5 11% 4 8%

13 18%

10 22%

1 2%

3.5

3.0

3.5

3.0

8 5%

6 4%

1 4%

6 26%

20 12%

5 21%

1 1%

3.6

3.0

R E S E A R C H

3.6

4.0

1 4%

2 6%

4 16%

3.0

2 4%

5 10% 2 5%

1 2%

4.0

5 17% 3 11%

1 4%

3.0

4 7%

14 27% -

3.0

5 4%

5 5%

13 12% 2 2%

3.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 98 Table 20-1 QUESTION 15: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Developing future leaders BANNER 1

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

140 35%

92 23%

32 23%

32 8%

177 44%

13 9%

62 44%

87 22%

48 12%

43 11%

82 20%

24 27%

10 21%

10 24%

16 19%

10 12%

35 41%

4 9%

18 37%

1 2%

22 52%

3 4%

40 49%

228 57%

172 43%

56 24%

36 21%

23 10%

97 43%

9 5%

79 46%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

36 21%

26 24%

26 26%

41 20%

30 26%

21 26%

16 10%

64 38%

8 7%

7 7%

51 48%

49 49%

18 9%

81 40%

9 8%

56 48%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

22 23%

19 31%

6 13%

17 17%

75 25%

37 24% 55 35%

5 6%

10 11%

9 10%

39 50%

33 36%

46 47%

24 27%

4 7%

30 50%

1 2%

21 44%

6 6%

44 44%

26 9%

12 8%

133 44%

61 39%

11 4%

8 5%

1 - 4 -----

123 31%

45 32%

25 29%

18 37%

9 20%

26 32%

70 31%

53 31%

63 38%

28 26%

26 26%

75 37%

29 25%

19 24%

33 36%

27 28%

9 15%

18 40%

35 35%

88 29%

47 12%

15 11%

9 11%

3 6%

9 22%

11 13%

24 11%

23 13%

14 8%

13 12%

16 16%

16 8%

16 14%

15 18%

12 13%

9 9%

10 16%

5 11%

9 9%

38 13%

17 11%

5 5%

5 9%

5 10%

4 4%

20 7%

9 6%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

13 3%

4 3%

4 5%

46 12%

19 13%

8 10%

106 27%

40 28%

23 26%

23 6%

6 4%

24 6%

18 5%

26 7%

55 14%

8 2%

5.3

5.0

4 3%

9 6%

21 15%

2 1%

5.2

5.0

3 6%

2 2%

8 4%

7 16%

10 12%

27 12%

9 18%

11 25%

25 30%

4 5%

8 17%

1 2%

4 5%

14 16%

5 10%

4 5%

1 1%

6 7%

3 3%

5.4

5.0

2 4%

7 15% 4 8%

1 3%

2 4%

5.2

5.0

5 11% 1 2%

2 4%

5 12%

2 4%

5.5

6.0

5 6%

4 4%

8 10%

10 13%

5.0

5 3%

6 3%

5 5%

2 2%

7 3%

5 4%

2 2%

3 3%

4 4%

19 11%

18 11%

12 11%

15 15%

23 11%

13 12%

10 12%

15 16%

11 11%

62 27%

44 25%

37 22%

34 31%

29 28%

49 24%

33 28%

24 31%

14 16%

30 31%

10 4%

13 8%

7 4%

9 9%

5 5%

12 6%

8 7%

3 4%

7 7%

6 6%

7 7%

41 20%

8 3%

9 4%

15 7%

35 15%

5 2%

5.3

5.0

17 10% 9 5%

11 6%

20 12%

4 2%

5.2

5.0

10 6% 7 4%

11 7%

37 22%

4 3%

4.9

5.0

6 6%

4 3%

5 5%

6 6%

9 9%

9 8%

2 2%

5.5

5.6

5.0

9 5%

10 5%

12 6% 6 3%

4.9

5.0

10 9%

5 7%

5 4%

3 4%

7 6%

7 9%

8 7%

6 7%

2 2%

5.6

5.0

4 4%

5 5%

6 7%

15 17%

1 1%

5.4

5.0

6 6%

4 7%

6 9%

2 2%

77 19%

30 28%

4 12%

16 20%

28 26%

8 25%

21 27%

13 12%

46 43% 3 3%

15 14%

20 60% -

2 7%

39 51% 2 2%

11 14%

12 26%

27 27%

79 26%

38 25%

21 20%

10 32%

28 37%

3 7%

6 6%

18 6%

11 7%

8 7%

1 4%

2 2%

3 5%

7 16%

4 4%

12 4%

22 7%

5 3%

13 8%

6 6%

4 3%

4 13%

3 4%

19 32%

7 7%

19 17%

2 6%

12 12%

3 6%

14 9%

33 8%

4 8%

1 1%

34 11%

107 27%

5 15% 3 9%

8 11% 3 3%

6 7%

5 6%

10 10%

5 8%

5 10%

18 18%

37 12%

26 17%

13 12%

4 12%

9 11%

5.4

6.0

4.6

4.9

5.4

5.1

5.8

5.2

1 1%

5.0

2 4%

6.0

1 2%

5.0

4 4%

5.0

4 1%

5.0

3 2%

5.0

2 2%

6.0

1 3%

5.0

2 2%

5.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 99 Table 20-2 QUESTION 15: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Developing future leaders BANNER 2

BASE=TOTAL SAMPLE 10 - VERY CONCERNED -------------------

8 - 10 ------

5 - 7 -----

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

92 23%

49 24%

35 20%

84 22%

32 8%

177 44%

18 9%

93 46%

11 6%

78 45%

3 13%

170 46%

6 27%

1 - 4 -----

123 31%

56 28%

56 33%

112 30%

47 12%

25 12%

19 11%

44 12%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

13 3%

6 3%

5 3%

44 12%

106 27%

57 28%

45 26%

102 27%

23 6%

13 7%

9 6%

23 6%

55 14%

25 13%

23 13%

48 13%

5.3

5.4

5.1

18 5%

26 7%

8 2%

5.0

7 3%

11 5%

3 1%

5.0

14 8% 10 6%

14 8%

3 2%

5.0

24 7% 17 5%

25 7%

196 49%

155 39%

21 5%

181 45%

45 23%

39 25%

6 27%

42 23%

14 7%

88 45%

16 10%

65 42%

2 9%

10 48%

150 37%

236 59%

15 25%

32 22%

50 21%

8 13%

86 48%

19 33%

12 8%

66 44%

49 33%

70 30%

2 10%

26 13%

17 11%

2 10%

26 14%

4 7%

14 10%

28 12%

17 9%

4 7%

10 7%

17 7%

4 2%

3 5%

6 4%

34 26%

36 20%

8 6%

51 40%

22 12%

3 8%

20 11%

2 9%

5 4%

16 9%

11 31%

13 8%

6 4%

13 7%

4 6%

6 4%

18 8%

4 3%

11 6%

12 7%

11 6%

7 11%

1 1%

4 7%

6 2%

2 11%

3 15%

22 12%

5.3

5.8

5.3

5.7

5.3

5.0

3 2%

5.0

1 1%

5.0

1 5%

5.0

9 6%

11 5%

2 7%

13 10%

1 5%

2 2%

8 13%

26 17%

30 13%

4 18%

5.2

5.3

5.8

5.0

2 1%

5.0

M E E T I N G S T R E E T

150

4 2%

5.0

6.0

16 9%

27 12%

1 41%

17 12%

10 5%

3 6%

14 6%

10 7%

2 4%

16 8%

1 5%

6 12%

12 9%

14 9%

19 9%

6 3%

45 26%

22 14%

53 36%

15 24%

3 8%

6 17%

9 5%

2 59%

2 4%

51 28%

25 13%

64 28%

6 3%

36 29%

14 22%

34 27%

1 4%

20 40%

3 5%

4 16%

7 4%

33 22%

14 11%

64 27%

7 6%

1 41%

5 4%

33 22%

55 24%

24 14%

14 23%

11 5%

9 19%

7 4%

55 30%

9 6%

39 19%

3 8%

6 30%

3 5%

23 38%

19 38%

38 25%

7 4%

148 37%

91 44%

53 27%

3 1%

23 37%

5 22%

6 4%

233 58%

58 47%

54 31%

2 3%

10 5%

49 12%

71 42%

21 12%

1 4%

208 52%

7 11%

4 18%

10 6%

62 15%

10 8%

21 14%

12 9%

28 23%

4 10%

18 14%

3 13%

44 26%

3 2%

1 3%

30 13%

10 29%

12 34%

54 30%

8 6%

123 31%

88 49%

42 32%

3 13%

172 43%

4 11%

6 25%

3 1%

36 9%

14 8%

18 9%

6 4%

23 16%

7 32%

8 38%

21 35%

2 8%

181 45%

111 47%

52 29%

6 4%

129 32%

4 16%

4 19%

5 3%

22 6%

20 9%

50 32%

4 18%

5.0

59 15%

12 7%

60 30%

1 4%

19 11%

5 26%

3 13%

25 13%

11 5%

8 36%

10 3%

46 12%

24 6%

21 5%

29 8%

2 5%

2 4%

20 12%

9 5%

15 13%

14 7%

71 34%

6 10%

24 11%

30 25%

14 23%

8 7%

1 2%

7 6%

8 6%

1 2%

5 7%

38 26%

13 6%

4 9%

14 6%

9 6%

10 5%

14 7%

6 11%

6 3%

1 2%

8 12%

34 17%

5.2

5.4

5.3

5.4

5.9

5.0

R E S E A R C H

5.0

6.0

1 2%

5.0

9 18%

4.6

5.0

11 5%

17 7%

22 10%

2 1%

5.5

5.0

4 3%

63 27%

13 11%

1 2%

60 40%

12 25%

24 14%

1 1%

9 4%

12 8%

57 27%

8 22%

2 1%

110 47%

33 14%

22 12%

2 6%

19 8%

3 7%

17 13%

3 2%

2 3%

2 59% -

3.9

1.0

12 8%

7 4%

9 6%

28 19% 3 2%

4.9

5.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 100 Table 20-3 QUESTION 15: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Developing future leaders BANNER 3

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 ------

5 - 7 -----

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

92 23%

22 24%

69 23%

49 24%

34 23%

32 27%

25 26%

19 19%

32 8%

177 44%

5 6%

43 46%

27 9%

130 44%

19 9%

93 46%

5 3%

71 47%

9 8%

60 51%

7 8%

43 45%

9 9%

45 45%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

62 23%

47 28%

48 28%

19 7%

117 43%

17 10%

61 36%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

20 28%

31 21%

28 19%

24 16%

19 11%

16 10%

7 10%

64 38%

65 38%

36 51%

51 30%

7 5%

78 53%

7 5%

76 52%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

8 6%

77 52%

47 12%

72 18%

74 18%

73 18%

196 49%

7 15%

12 16%

14 19%

17 23%

46 24%

45 23%

4 9%

6 8%

21 44%

5 6%

34 48%

32 43%

6 8%

31 43%

14 7%

96 49%

18 9%

76 39%

1 - 4 -----

123 31%

26 28%

93 31%

58 29%

45 30%

26 22%

26 27%

33 32%

88 32%

57 34%

54 32%

52 30%

15 21%

36 24%

41 28%

46 31%

19 40%

26 36%

25 34%

23 32%

51 26%

69 35%

47 12%

15 16%

32 11%

24 12%

25 16%

18 15%

15 16%

7 7%

34 13%

24 14%

23 13%

25 15%

9 13%

20 14%

17 12%

12 8%

3 6%

3 4%

7 10%

10 13%

27 14%

20 10%

5 5%

18 6%

15 7%

2 3%

1 2%

3 4%

15 8%

9 5%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

13 3%

46 12%

24 6%

3 3%

8 9%

10 4%

38 13%

6 3%

26 13%

5 3%

19 13%

9 6%

4 4%

17 14%

9 7%

3 3%

12 13%

12 12%

8 8%

6 6%

9 3%

34 12%

20 7%

6 3%

14 8%

13 8%

7 4%

18 11%

9 5%

9 6%

21 12%

11 7%

4 5%

11 15%

4 6%

3 2%

22 15%

9 6%

3 2%

23 16%

19 13%

13 9%

10 7%

3 4%

2 3%

8 12%

2 3%

6 8%

1 1%

3 4%

6 3%

25 13%

8 4%

20 10%

106 27%

30 33%

73 25%

53 26%

42 28%

35 29%

23 24%

28 27%

63 23%

34 20%

37 22%

32 19%

21 30%

47 32%

40 28%

47 32%

19 41%

24 33%

25 34%

55 28%

46 24%

23 6%

5 6%

18 6%

15 7%

13 8%

6 5%

6 6%

4 3%

16 6%

12 7%

4 3%

2 3%

3 2%

6 4%

13 9%

4 9%

7 10%

4 6%

6 8%

12 6%

11 6%

11 8%

12 25%

14 19%

15 20%

13 19%

18 9%

36 19%

5.2

4.3

4.9

4.7

4.9

5.5

5.1

18 5%

26 7%

3 3%

6 6%

15 5%

18 6%

9 4%

15 8%

6 4%

8 5%

3 2%

5 4%

6 6%

4 4%

7 7%

14 5%

20 7%

9 6%

8 5%

7 4%

10 6%

55 14%

12 13%

42 14%

19 10%

18 12%

12 10%

10 11%

19 18%

37 14%

27 16%

25 15%

5.3

5.2

5.3

5.5

5.2

5.7

5.6

5.0

5.2

5.3

5.4

8 2%

5.0

2 2%

5.0

6 2%

5.0

3 1%

5.0

1 1%

5.0

1 1%

5.0

1 1%

5.0

4 4%

5.0

7 3%

5.0

4 2%

5.0

3 2%

5.0

7 4%

4 5%

6 4%

11 7%

3 4%

15 10%

4 2%

2 2%

29 17%

5.5

5.0

6 8%

5.9

5.0

11 7%

5.4

5.0

11 7%

11 8%

13 9%

1 -

5.4

5.0

10 7%

12 8%

1 1%

5.0

2 3%

3 6%

1 1%

3 4%

5 7%

5.0

3 4%

5.0

1 2%

3 4%

2 2%

5.0

9 5%

12 6% 3 1%

5.0

8 4%

14 7% 6 3%

5.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 101 Table 20-4 QUESTION 15: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Developing future leaders BANNER 4

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 ------

5 - 7 -----

87 22%

285 71%

103 26%

31 36%

75 26%

15 14%

32 8%

15 18%

177 44%

34 39%

133 47%

2 2%

12 4%

92 23%

1 - 4 -----

123 31%

21 24%

47 12%

7 6 5 4 3 2 1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

13 3%

46 12%

24 6%

25 9%

43 11%

144 36%

83 21%

42 11%

7 2%

122 31%

13 31%

37 26%

16 20%

10 24%

1 13%

24 20%

6 6%

6 14%

40 39%

22 52%

13 9%

69 47%

5 6%

30 36%

1 1%

24 56%

2 30%

8 7%

59 48%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

30 32%

32 22%

1 12%

56 26%

38 25%

36 28%

36 29%

30 28%

62 32%

26 22%

19 17%

14 18%

12 25%

10 11%

35 38%

12 8%

70 47%

6 59%

16 8%

97 45%

11 7%

79 53%

9 7%

61 47%

12 26%

3 4%

4 10%

4 57%

38 31%

26 28%

46 31%

3 29%

60 28%

33 22%

30 24%

26 21%

21 20%

37 19%

34 29%

46 41%

14 16%

38 13%

7 7%

5 12%

21 14%

10 12%

6 13%

11 9%

14 16%

18 12%

1 12%

30 14%

23 15%

25 19%

21 17%

18 17%

33 17%

12 10%

11 10%

8 9%

21 7%

3 8%

10 7%

16 9%

8 6%

6 6%

9 10%

36 13%

10 10%

4 4%

2 4%

4 10%

3 2%

19 13%

2 3%

10 12% 2 3%

4 10%

1 13%

5 4%

6 6%

3 2%

10 4%

4 3%

3 2%

13 11%

11 12%

16 11%

3 29%

26 12%

21 14%

14 11%

16 13%

14 13%

25 13%

39 32%

22 23%

40 27%

2 19%

58 27%

45 30%

37 28%

36 29%

34 31%

50 26%

10 8%

5 5%

7 5%

1 10%

9 4%

7 4%

7 5%

4 3%

5 5%

11 8%

7 6%

4 8%

1 14%

7 6%

3 3%

13 9%

1 12%

14 6%

13 8%

10 8%

16 37%

23 6%

7 8%

14 5%

9 9%

1 3%

7 5%

6 7%

1 2%

55 14%

8 9%

29 10%

23 22%

3 7%

15 11%

13 15%

4 9%

3 41%

17 14%

10 11%

20 13%

1 10%

27 13%

9 6%

8 6%

5.5

4.9

5.6

3.9

5.1

5.8

5.2

5.5

5.7

3 3% 1 1%

6.1

6.0

20 7% 4 1%

5.6

5.0

7 7%

7 6% 3 3%

4.4

5.0

2 5%

1 2% -

6.1

5.0

4 3%

12 8% 2 1%

5.0

7 8%

8 10% 4 5%

5.0

8 4%

1 16%

17 21%

11 4%

3 2%

5 11%

40 27%

3 3%

5 4%

3 6%

1 2% -

5.0

1 16%

2.0

4 4%

7 6%

2 1%

5.0

7 7%

4 5%

2 2%

5.0

M E E T I N G S T R E E T

151

5 3%

14 9%

1 1%

5.0

1 9%

6.0

10 4%

14 7%

1 -

5.0

R E S E A R C H

10 6%

7 5%

1 1%

5.0

8 7%

8 6%

1 1%

5.0

10 8%

5 4%

6 5% 1 -

5.8

6.0

9 8%

3 3%

6 6% -

5.8

5.0

7 6%

22 29% 6 8%

22 49% 3 7%

8 7%

15 19%

39 32%

31 27%

19 25%

7 15%

9 5%

5 4%

3 3%

5 7%

3 6%

14 7%

15 13%

6 3%

8 4% 1 1%

6.0

11 9%

4 9%

39 50%

8 20%

1 1%

5 6%

46 40%

33 40%

14 34%

5.3

57 47%

8 7%

37 26%

26 25%

5.0

91 48%

7 6%

7 17%

76 27%

8 2%

56 53%

20 11%

46 45%

17 20%

26 7%

62 50%

9 9%

73 26%

106 27% 18 5%

10 8%

5 4%

9 8% 3 2%

5.2

5.0

8 7%

5 6%

4 5%

13 11%

6 8%

2 2%

2 3%

23 20%

4.6

5.0

7 9%

5.4

5.0

3 6% 2 5%

4 8%

12 26%

4.7

5.0

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 102 Table 20-5 QUESTION 15: Now, I would like to read you a list of factors that some companies are concerned about. For each one, please rate how concerned your company is about that particular factor using a scale from 1 to 10, where one means that your company is NOT AT ALL CONCERNED about it and where ten means your company is VERY CONCERNED about it. You can choose any number between one and ten depending on how strongly you feel about it. Developing future leaders BANNER 5

BASE=TOTAL SAMPLE 10 - VERY CONCERNED ------------------8 - 10 ------

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

92 23%

50 23%

35 24%

21 20%

21 23%

9 12%

23 32%

79 25%

13 16%

11 17%

21 26%

35 23%

123 31%

63 30%

42 29%

37 34%

27 29%

31 39%

11 16%

95 30%

28 35%

25 40%

24 30%

46 30%

47 12%

20 9%

19 13%

13 12%

14 16%

5 6%

13 18%

14 7%

16 11%

8 4%

9 6%

32 8%

5 - 7 -----

177 44%

13 3%

1 - 4 ----8 7 6 5 4 3 2

1 - NOT AT ALL CONCERNED DON'T KNOW/REFUSED MEAN

MEDIAN

20 9%

93 44% 10 5%

46 12%

26 12%

106 27%

53 25%

23 6%

24 6%

11 8%

65 45% 5 3%

13 9%

4 4%

45 41% 4 4%

15 14%

6 5%

5 5%

43 47% 2 2%

3 3%

36 45% 2 2%

8 8%

9 11%

8 9%

3 4%

6 8%

27 9%

38 53%

139 44%

4 5%

10 3%

12 17%

4 6%

42 13% 41 13%

20 6%

4 5%

38 47% 4 4%

5 7% 5 6%

4 5%

1 1%

26 42% 1 2%

9 14% 10 15%

3 5%

8 9%

34 42% 4 5%

10 12%

7 8% 4 5%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

22 25%

71 22%

12 29%

12 23%

29 29%

12 24%

104 32%

9 21%

18 33%

35 35%

11 22%

33 33%

68 31%

32 10%

8 18%

6 12%

15 15%

11 22%

11 11%

21 10%

3 8%

5 10%

8 8%

5 9%

6 6%

8 4%

1 3%

1 2%

14 9%

9 11%

72 47%

39 45%

137 43%

2 2%

12 4%

6 4%

15 10%

22 14% 11 7%

22 26%

11 12%

7 8% 5 6%

27 8%

36 11% 19 6%

3 7%

21 50% 2 4%

5 11%

36 25%

25 23%

27 29%

24 30%

21 29%

78 24%

28 35%

13 21%

24 29%

39 25%

27 31%

81 25%

13 31%

15 7%

7 5%

7 7%

5 5%

4 5%

3 5%

21 6%

3 4%

2 3%

4 5%

11 7%

7 8%

20 6%

55 14%

28 13%

19 13%

18 16%

10 10%

12 15%

4 6%

39 12%

17 20%

13 22%

8 10%

23 15%

9 10%

49 15%

5.3

5.4

4.9

5.3

6.1

5.4

4.7

5.4

5.3

5.5

5.2

18 5% 26 7%

8 2%

5.0

12 6%

6 3%

5.0

7 5%

4 3%

5.0

3 2% 9 9%

5 5%

5.0

8 8%

6 7%

5 6%

9 12%

1 1%

3 4%

5.0

4.6 5.0

4 5%

6.0

13 4%

22 7%

7 2%

5.0

5 6%

4 5%

2 2%

5.0

7 11%

4 5%

3 5%

8 10%

1 1%

2 3%

5.0

4 2%

8 5%

2 1%

5.0

2 2%

5 6%

3 4%

5.0

15 5%

19 6%

8 2%

5.0

4 7%

22 41% 2 4%

2 4%

8 8%

36 36% 6 6% 8 8%

22 10%

26 51%

42 42%

95 43%

9 19%

20 20%

12 23%

2 4%

6 10%

11 11%

1 2%

3 6%

8 15%

8 8%

7 14%

5.8

5.0

4 8%

5.0

3 6%

2 3%

5.0

10 10%

1 1%

5.4

5.0

218 42%

12 12%

15 28%

6 6%

100 19%

1 2%

23 23%

1 1%

12 12%

5 5%

9 4%

12 12%

34 16%

3 5%

4 4%

5.5

27 12%

60 27%

12 12%

6.0

8 4%

25 25%

1 2%

2 3%

51 24%

1 1%

5.4

5.0

9 4%

15 7%

4 2%

5.3

5.0

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 21-1 QUESTION 16: What would you say are the one or two biggest challenges your company is facing that might negatively impact future growth? BANNER 1

BASE=TOTAL SAMPLE ATTRACTING AND RETAINING A QUALIFIED WORKFORCE

COST OF HEALTH CARE INSURANCE

PAGE 103

120 30%

140 35%

68 49%

41 29%

87 22%

40 46%

24 28%

48 12%

18 37%

14 30%

43 11%

24 56%

11 26%

82 20%

41 50%

30 36%

228 57%

109 48%

65 29%

172 43%

82 48%

55 32%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

50 30%

41 38%

25 24%

69 34%

35 30%

16 20%

23 25%

30 31%

16 26%

15 32%

27 28%

92 31%

55 35%

49 30%

59 55%

72 71%

64 32%

67 57%

59 74%

37 40%

53 55%

41 67%

17 36%

30 30%

160 54%

107 27%

33 8%

77 19%

66 42%

49 46%

22 67%

38 50%

49 31%

27 25%

7 21%

21 27%

27 25%

9 28%

24 31%

INCREASING COSTS OF ENERGY AND MATERIALS FOR YOUR PRODUCTS

114 28%

34 24%

23 26%

12 26%

10 24%

34 42%

57 25%

57 33%

70 42%

24 22%

15 15%

75 37%

26 22%

13 16%

26 28%

30 31%

14 23%

17 36%

37 37%

77 26%

LOWER SALES FOR YOUR PRODUCTS

77 19%

46 12%

28 20%

19 13%

17 19%

6 13%

11 25%

16 20%

44 19%

33 19%

29 17%

18 17%

23 23%

36 18%

23 20%

18 23%

27 29%

14 14%

11 18%

10 21%

22 22%

55 18%

33 21%

23 21%

6 20%

12 15%

COMPETITION/FOREIGN COMPETITION

5 1%

1 1%

3 2%

4 5%

5 11%

1 1%

4 4%

5 3%

3 3%

2 2%

1 2%

3 3%

7 2%

5 3%

4 4%

DON'T KNOW/NOT SURE

7 2%

5 4%

3 2%

3 3%

2 4%

1 3%

UNFAVORABLE BUSINESS CLIMATE

REGULATIONS/GOVERNMENT REGULATIONS OTHER

REFUSED

10 3%

12 3%

3 1%

2 1%

5 6% -

3 4%

5 10%

7 16%

11 13%

24 10%

22 13%

27 16%

10 10%

1 2%

3 1%

2 1%

3 2%

1 1%

2 2% -

5 2%

8 3%

6 2%

2 1%

5 3%

4 3%

2 1%

1 1%

5 3%

4 2%

3 2% -

2 2%

1 1%

M E E T I N G S T R E E T

152

9 9%

30 15%

1 1%

3 1%

6 6%

1 1% -

5 2%

5 2% -

10 8%

2 2%

6 8%

17 19%

11 12%

1 1%

7 8%

1 1%

2 2%

3 2%

R E S E A R C H

4 4%

1 1% -

3 3%

1 1%

2 2% -

6 10% -

3 5%

1 2% -

6 13%

1 2%

2 4%

2 4% -

15 15%

2 2%

4 4%

3 3% -

31 10%

3 1%

9 3%

4 1%

3 1%

19 12%

1 1%

4 2%

1 1%

14 14%

4 4%

6 6%

2 2% -

5 15%

7 9%

1 1%

5 6%

2 3%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 21-2 QUESTION 16: What would you say are the one or two biggest challenges your company is facing that might negatively impact future growth? BANNER 2

BASE=TOTAL SAMPLE ATTRACTING AND RETAINING A QUALIFIED WORKFORCE

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 191 48%

201 50%

108 54%

171 43%

76 44%

372 93%

183 49%

21 5%

6 28%

PAGE 104

155 39%

98 50%

79 51%

21 5%

181 45%

59 15%

150 37%

4 21%

97 54%

21 36%

68 45%

236 59%

128 54%

22 6%

129 32%

181 45%

5 22%

53 41%

89 49%

36 9%

172 43%

123 31%

62 15%

208 52%

59 34%

31 25%

24 39%

65 31%

10 29%

87 51%

64 52%

COST OF HEALTH CARE INSURANCE

120 30%

62 31%

53 31%

115 31%

5 22%

55 28%

50 32%

6 29%

54 30%

21 36%

43 29%

64 27%

9 43%

46 36%

50 27%

11 32%

14 39%

45 27%

38 31%

UNFAVORABLE BUSINESS CLIMATE

77 19%

37 18%

30 18%

67 18%

8 40%

30 15%

36 24%

5 26%

31 17%

17 29%

29 20%

44 19%

7 33%

25 20%

36 20%

9 24%

31 18%

24 19%

10 3%

8 4%

1 1%

1 4%

5 3%

9 4%

3 2%

5 4%

12 3%

8 4%

5 3%

12 3%

3 1%

INCREASING COSTS OF ENERGY AND MATERIALS FOR YOUR PRODUCTS

114 28%

LOWER SALES FOR YOUR PRODUCTS

46 12%

COMPETITION/FOREIGN COMPETITION

5 1%

REGULATIONS/GOVERNMENT REGULATIONS

OTHER

DON'T KNOW/NOT SURE REFUSED

7 2%

48 24%

59 34%

106 29%

4 21%

55 28%

46 29%

17 8%

25 15%

42 11%

4 20%

20 10%

21 14%

1 -

3 2%

4 1%

1 5%

2 1%

1 1%

4 2%

2 1%

3 2%

10 3%

6 2%

8 4%

6 3%

4 3%

1 6%

2 1%

3 1%

3 2%

7 34%

1 4%

52 29%

14 24%

41 27%

61 26%

13 7%

7 11%

26 18%

26 11%

1 2%

4 2%

3 5%

2 1%

6 25%

43 33%

52 29%

2 8%

18 14%

21 12%

7 19%

4 2%

1 1%

7 4%

18 10% 1 -

8 6%

2 2%

27 44%

49 12%

10 20%

59 25%

16 25%

37 18%

10 20%

43 19%

5 2%

1 2%

7 3%

8 14% -

30 15% 2 1%

3 7% -

2 8%

3 2%

5 2%

6 4%

4 3%

2 3%

7 3%

3 5%

2 1%

3 1%

1 4%

4 3%

5 3%

3 1%

1 1%

45 30%

57 28%

6 3% 3 1%

17 27%

4 3% 2 1%

75 32%

134 58%

24 48%

4 6% 2 3%

148 37%

21 43%

5 3% 3 2%

3 1%

93 45%

2 9%

2 10%

233 58%

2 3%

5 2%

2 3%

BASE=TOTAL SAMPLE ATTRACTING AND RETAINING A QUALIFIED WORKFORCE COST OF HEALTH CARE INSURANCE

INCREASING COSTS OF ENERGY AND MATERIALS FOR YOUR PRODUCTS UNFAVORABLE BUSINESS CLIMATE

LOWER SALES FOR YOUR PRODUCTS

REGULATIONS/GOVERNMENT REGULATIONS COMPETITION/FOREIGN COMPETITION OTHER

DON'T KNOW/NOT SURE REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

120 30%

34 36%

84 28%

54 27%

42 28%

31 26%

191 48%

114 28%

56 61% 16 17%

130 44% 93 31%

110 54% 53 26%

86 57% 39 25%

70 59% 26 22%

95 24%

147 37%

27 35 88 51 54R E 53 18 49 M28% E E T35% I N G32% S T R30% E E T32% S E A26% R C H33% 31%

44 30%

47 32%

29 20%

30 20%

12 26%

6 4%

1 2%

124 45%

31 18%

35 21%

16 23%

32 21%

2 1%

3 2%

48 17%

10 3%

2 2%

8 3%

7 4%

4 3%

4 4%

2 2%

1 1%

9 3%

12 3%

7 2% 3 1%

3 4%

3 3%

4 1%

1 -

9 3%

8 4%

3 1%

2 1%

4 1%

3 1%

1 1%

9 6%

4 3%

1 1%

9 7%

3 2%

87 59% 36 24%

19 18%

1 1%

46 64%

19 26%

27 28%

5 1%

71 18%

43 25%

26 22%

13 11%

85 50%

50 30%

33 22%

16 11%

171 43%

50 30%

44 22%

24 12%

74 44%

79 29%

59 20%

41 14%

169 42%

30 30%

16 17%

5 5%

77 45%

27 28%

77 19%

46 12%

170 42%

12 12%

1 1%

6 6%

3 3%

14 14%

2 2%

37 14%

24 14%

19 11%

22 13%

3 1%

1 1%

2 1%

2 3%

2 1%

1 1%

11 4%

3 1%

1 1%

4 1%

6 4%

2 1%

1 1%

M E E T I N G S T R E E T

153

7 4%

3 2%

1 1%

7 4% 1 1%

3 5%

2 3%

R E S E A R C H

87 60% 37 25%

75 51% 42 28%

12 8%

17 12%

16 11%

2 1%

3 2%

2 1%

3 2%

2 1%

3 2%

49 33%

31 21%

1 28%

27 18%

3 1%

1 1%

7 3%

5 2%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

146 36%

36 36%

274 68%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

2 48%

3 2%

5 3%

1 1%

1 24%

PAGE 105

147 37%

53 55%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

53 36%

18 8%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 21-3 QUESTION 16: What would you say are the one or two biggest challenges your company is facing that might negatively impact future growth? BANNER 3

47 12%

72 18%

74 18%

73 18%

196 49%

13 28%

19 26%

19 25%

19 27%

49 25%

69 35%

18 38%

14 29%

25 35%

25 35% 12 17%

28 37%

22 30% 16 21%

29 39%

25 35% 9 13%

104 53%

45 23%

29 15%

4 2%

6 3%

8 12%

8 11%

9 12%

20 10%

2 3%

1 1%

2 1%

2 4%

3 4%

2 3%

1 1%

3 4%

2 3%

3 4%

63 32%

46 24%

4 9%

1 1%

84 43%

10 5%

5 2%

2 1%

26 13%

3 1%

2 1%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 21-4 QUESTION 16: What would you say are the one or two biggest challenges your company is facing that might negatively impact future growth? BANNER 4

BASE=TOTAL SAMPLE ATTRACTING AND RETAINING A QUALIFIED WORKFORCE

COST OF HEALTH CARE INSURANCE

120 30%

87 22%

63 72%

28 32%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

98 35%

19 18%

16 37%

42 29%

21 26%

164 57%

26 26%

28 66%

90 62%

35 42%

7 2%

122 31%

93 23%

149 37%

17 40%

3 43%

27 22%

34 37%

51 34%

2 27%

23 19%

20 22%

21 50%

INCREASING COSTS OF ENERGY AND MATERIALS FOR YOUR PRODUCTS

114 28%

15 17%

74 26%

38 36%

12 29%

33 23%

26 31%

11 27%

LOWER SALES FOR YOUR PRODUCTS

77 19%

46 12%

14 16%

58 20%

18 17%

7 17%

25 17%

24 29%

9 21%

10 3%

2 2%

6 2%

4 4%

1 2%

1 1%

UNFAVORABLE BUSINESS CLIMATE

REGULATIONS/GOVERNMENT REGULATIONS

COMPETITION/FOREIGN COMPETITION

OTHER

DON'T KNOW/NOT SURE REFUSED

PAGE 106

5 1%

12 3% 7 2%

3 1%

5 6%

1 1%

3 4%

1 1%

27 9%

16 16%

3 1%

1 1%

6 2%

2 1%

7 6%

6 5%

4 8%

16 11%

1 1%

1 2%

2 2% 5 3%

1 1%

12 14%

1 2%

3 3%

2 4%

3 3%

2 28% -

55 45%

31 25%

47 50%

21 23%

3 3%

1 1%

1 8%

62 29%

52 34%

36 28% 31 24%

36 29%

33 31%

49 23%

33 22%

1 -

1 11%

1 1% 7 6%

106 27%

29 19%

1 16%

125 31%

4 43%

17 11%

128 32%

50 33%

9 10%

2 2%

151 38%

4 40%

17 14%

5 4%

214 54%

79 53%

1 13%

1 16%

10 2%

3 2%

1 10%

61 28%

26 12%

2 1%

1 12%

4 3%

122 57%

1 -

6 3%

1 8%

3 1%

99 65%

36 24%

81 63%

114 28%

56 29%

120 100%

25 22%

191 100%

30 24%

25 23%

25 13%

29 22%

29 23%

21 20%

2 2%

3 2%

14 11%

1 1%

9 6%

1 1%

120 30%

76 72%

11 7%

84 67%

191 48%

13 10% -

5 5% -

20 25%

11 23%

25 20%

114 100%

13 16%

11 24%

20 10%

10 8%

13 11%

77 100%

1 1%

5 4%

BASE=TOTAL SAMPLE ATTRACTING AND RETAINING A QUALIFIED WORKFORCE COST OF HEALTH CARE INSURANCE

INCREASING COSTS OF ENERGY AND MATERIALS FOR YOUR PRODUCTS UNFAVORABLE BUSINESS CLIMATE LOWER SALES FOR YOUR PRODUCTS

REGULATIONS/GOVERNMENT REGULATIONS COMPETITION/FOREIGN COMPETITION OTHER

DON'T KNOW/NOT SURE REFUSED

212 53%

145 36%

108 27%

120 30%

57 27%

53 37%

31 28%

191 48%

114 28%

93 44%

67 32%

84 58%

42 29%

92 23%

79 20%

44 41%

56 61%

38 47%

37 34%

28 30%

27 35%

33 36%

25 31%

71 18%

319 80%

81 20%

62 16%

82 20%

53 74%

152 48%

39 48%

29 46%

40 49%

11 16%

88 28%

25 31%

29 46%

11 13%

12 19%

1 1%

154 39%

87 22%

79 51%

38 43%

23 28%

34 22%

12 15%

32 21%

2 2%

7 5%

320 80%

43 11%

2 1%

100 19%

51 10%

100 19%

218 42%

24 44%

32 32%

15 29%

38 38%

61 28%

34 79%

24 44%

24 27%

101 31%

4 10%

16 29%

18 21%

59 19%

7 17%

7 12%

8 3%

2 4%

30 95 26 11 35R E 53 19 104 M41% E E T30% I N G32% S T R17% E E T42% S E A22% R C H32% 34%

10 23%

40 40%

27 54%

34 34%

55 25%

23 23%

12 24%

23 23%

43 20%

26 18%

24 23%

16 17%

21 26%

14 20%

66 21%

10 3%

6 3%

3 2%

3 3%

1 1%

1 2%

9 3%

3 2%

4 4%

1 1%

9 3%

3 4%

2 3%

4 5%

3 2%

2 2%

6 2%

2 4%

3 3%

2 4%

1 2%

2 2%

3 1%

2 2%

1 1%

1 -

1 2%

5 1%

12 3% 7 2%

3 1%

1 -

9 4%

2 1%

3 1%

10 7% 2 1%

2 1%

1 1%

3 2%

23 21% 2 2%

1 1% -

5 5% -

2 2%

13 17% 1 1% -

1 1% 1 1%

1 1%

33 10%

13 16%

3 1%

2 2%

5 2%

2 2%

6 9%

9 11%

1 1%

M E E T I N G S T R E E T

154

1 1%

14 9%

16 19%

40 13%

2 1%

1 1%

5 1%

2 1%

4 4%

R E S E A R C H

7 2%

3 6%

104 48%

15 29%

41 20%

33 16%

50 50%

28 28%

77 19%

46 12%

5 9%

15 15%

8 17%

11 11%

24 11%

2 2%

1 2%

3 1%

2 2%

6 3%

10 13%

5 10%

4 8%

4 5%

46 100%

PAGE 107

54 10%

131 41%

1 1%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 21-5 QUESTION 16: What would you say are the one or two biggest challenges your company is facing that might negatively impact future growth? BANNER 5

1 1%

6 5% -

11 10%

4 3%

1 1%

46 12%

25 22%

11 6%

56 46%

77 19%

5 5%

1 1%

2 2%

5 2%

7 3%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 22-1 QUESTION 17: Thinking ahead, what would you say are the two or three most important drivers of your company's future growth? BANNER 1

BASE=TOTAL SAMPLE NEW CUSTOMERS/RETAINING CUSTOMERS

MAXIMIZING PRODUCTIVITY NEW PRODUCTS

ELIMINATING TIME AND ENERGY WASTE INSIDE YOUR COMPANY

BETTER STRATEGIC PLANNING AND IMPLEMENTATION

DEVELOPING COMPANY MANAGERS AND LEADERS

OTHER

DON'T KNOW/NOT SURE REFUSED

PAGE 108

145 36%

108 27%

92 23%

79 20%

140 35%

67 48%

44 31%

41 29%

31 22%

33 24%

87 22%

48 55%

23 27%

26 29%

15 17%

13 15%

48 12%

33 70%

21 44%

10 20%

12 26%

6 13%

43 11%

17 39%

20 46%

13 31%

11 27%

82 20%

47 57%

38 47%

18 23%

20 24%

15 18%

228 57%

115 51%

67 29%

66 29%

46 20%

47 21%

172 43%

97 56%

79 46%

41 24%

46 26%

33 19%

166 42%

96 58%

55 33%

49 29%

29 18%

26 15%

108 27%

60 55%

40 37%

22 20%

26 24%

3 2%

2 2%

1 2%

4 5%

5 2%

5 3%

6 3%

1 1%

1 2%

1 -

1 1%

8 4%

2 1%

2 2%

BASE=TOTAL SAMPLE NEW CUSTOMERS/RETAINING CUSTOMERS

MAXIMIZING PRODUCTIVITY NEW PRODUCTS

ELIMINATING TIME AND ENERGY WASTE INSIDE YOUR COMPANY

BETTER STRATEGIC PLANNING AND IMPLEMENTATION

DEVELOPING COMPANY MANAGERS AND LEADERS

OTHER

DON'T KNOW/NOT SURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

212 53%

94 47%

104 61%

108 27%

60 30%

42 25%

145 36% 92 23%

77 38%

52 26%

372 93%

21 5%

55 52%

15 46%

49 63%

35 22%

37 35%

10 31%

18 24%

25 16%

22 20%

8 25%

15 19%

58 37%

26 33%

15 16%

27 28%

13 22%

5 10%

19 19%

73 24%

35 23%

24 25%

10 17%

8 17%

15 15%

56 19%

24 15%

24 23%

6 20%

12 15%

3 3%

2 3%

1 2%

3 3%

6 2%

5 3%

2 2%

2 6%

1 1%

21 26%

28 31%

17 18%

21 27% -

14 15% 2 2%

1 1%

17 28%

7 12% 1 2%

19 40%

13 28% 1 2%

26 26%

17 17% 1 1%

1 1%

82 27%

62 21% 7 3%

1 -

5 3%

1 1%

27 25%

22 21%

3 3%

1 1%

196 49%

155 39%

89 24%

3 13%

50 26%

34 22%

5 23%

29 19%

4 20%

3 2%

73 20%

6 31%

39 20%

32 20%

9 2%

5 2%

3 2%

7 2%

1 4%

5 2%

2 1%

10 2% 2 1%

5 2%

1 1%

4 2%

172 43%

123 31%

62 15%

208 52%

49 12%

7 20%

57 33%

37 30%

21 34%

85 41%

16 32%

97 42%

7 19%

39 23%

26 21%

18 29%

47 23%

11 22%

53 23%

10 21%

45 19%

13 36%

33 19% 24 14%

36 9%

49 27%

40 20% 40 20%

181 45%

M38 E E T 4 I N G 45 S T R 14 E E T 47R E 65 S E A R6C H 31 25% 18% 25% 24% 31% 28% 29% 24%

64 17%

9 2%

1 -

4 18%

1 4%

34 17%

6 3%

1 1%

49 27%

13 22%

53 35%

27 18%

95 40%

58 24%

16 71%

129 32%

56 28%

19 32%

116 49%

22 6%

4 20%

70 39%

81 54%

236 59%

103 28%

4 19%

35 59%

150 37%

20 58%

45 29%

92 51%

59 15%

84 46%

86 44%

14 66%

181 45%

71 55%

79 20% 71 18%

21 5%

93 60%

37 22%

5 25%

8 35%

40 31%

25 19%

76 42%

46 25%

97 57%

43 25%

63 51%

37 30%

1 7%

37 20%

10 18%

30 20%

50 21%

4 17%

23 18%

40 22%

6 16%

33 19%

29 23%

1 4%

4 2%

1 1%

3 2%

6 2%

1 4%

3 2%

6 3%

3 8%

1 -

3 2%

39 22%

6 3%

5 9%

2 4%

1 2%

25 17% 2 1%

1 1%

45 19% 6 3% 1 -

1 4% -

24 19% 3 2%

1 1%

33 18% 6 3%

4 11% -

33 19%

4 2%

1 1%

23 19%

1 1%

2 2%

37 59%

15 25%

8 14% 7 11% 2 3%

2 3% -

108 52% 53 25%

42 20% 41 20% 4 2%

6 3% -

27 55%

10 21%

8 16% 1 1%

1 2% -

233 58%

BASE=TOTAL SAMPLE NEW CUSTOMERS/RETAINING CUSTOMERS

MAXIMIZING PRODUCTIVITY NEW PRODUCTS ELIMINATING TIME AND ENERGY WASTE INSIDE YOUR COMPANY BETTER STRATEGIC PLANNING AND IMPLEMENTATION

DEVELOPING COMPANY MANAGERS AND LEADERS OTHER

DON'T KNOW/NOT SURE REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

145 36%

31 33%

110 37%

81 40%

48 32%

40 34%

32 33%

31 30%

212 53%

108 27%

92 23% 79 20%

71 18%

9 2%

10 2%

2 1%

42 45%

28 30%

24 26% 20 22%

17 19%

4 4%

2 2%

165 56%

78 26%

65 22% 57 19%

54 18%

5 2%

8 3%

2 1%

108 53%

64 32%

47 23% 33 17%

38 19%

5 3%

2 1%

75 49%

51 33%

45 30% 28 18%

26 17%

3 2%

62 52%

39 33%

29 25% 25 21%

23 19%

2 2%

1 1%

44 46%

54 54%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

96 35%

70 41%

65 38%

67 39%

149 55%

90 53%

88 52%

95 56%

71 18%

147 37%

146 36%

147 37%

32 46%

55 37%

57 39%

73 49%

32 20 76 47 45 50 17 42 M33% E E T20% I N G28% S T R27% E E T27%R E29% S E A23% R C H29%

72 49%

45 31%

3 76%

39 26%

47 20%

1 30%

32 21%

7 3%

2 1%

5 2%

72 18%

74 18%

73 18%

196 49%

49 34%

15 31%

17 23%

19 26%

25 34%

70 36%

73 37%

38 26%

22 46% 13 27%

40 56% 17 23%

42 56% 15 20%

36 50% 19 25%

60 22%

35 21%

37 22%

35 21%

22 31%

40 27%

38 26%

7 14%

13 18%

16 22%

20 21%

19 19%

46 17%

26 15%

27 16%

25 14%

14 20%

33 23%

31 21%

33 22%

10 21%

10 14%

11 16%

13 17%

2 2%

1 1%

2 2%

4 4%

2 2%

55 20%

6 2%

8 3%

2 1%

33 19%

3 2%

5 3%

1 1%

155

32 19%

3 2%

8 5%

1 1%

31 18%

6 4%

4 2%

1 1%

15 22%

35 23%

4 3%

3 2% -

34 23% 4 3%

1 1%

40 27%

63 27%

47 12%

73 49%

20 20% 23 23%

1 30%

2 70%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

30 32% 19 20%

148 37%

84 57%

35 23%

24 16% 5 3% -

PAGE 110

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----35 50%

3 1%

115 49%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 22-3 QUESTION 17: Thinking ahead, what would you say are the two or three most important drivers of your company's future growth? BANNER 3

18 23%

7 33%

9 26%

33 42%

12 56%

136 37%

15 46%

PAGE 109

198 53%

59 35%

77 19%

83 53%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 22-2 QUESTION 17: Thinking ahead, what would you say are the two or three most important drivers of your company's future growth? BANNER 2

33 8%

114 38%

1 1%

10 2%

153 51%

107 27%

31 32%

3 3%

25 21%

59 59%

157 39%

16 35%

3 4%

25 12%

22 48%

299 75%

23 39%

23 23%

36 60%

100 25%

41 42%

5 3%

29 27%

2 1%

48 50%

46 12%

27 30%

3 3%

18 11%

4 2%

30 25%

53 58%

60 15%

30 38%

1 1%

28 16%

4 2%

28 24%

35 44%

20 21%

43 19%

5 2%

36 18%

55 47%

22 25%

16 19%

58 29%

67 57%

97 24%

19 24%

7 17%

3 8%

31 30%

61 30%

91 23%

29 25%

5 11%

1 2%

29 29%

110 54%

79 20%

31 15%

18 20%

3 4%

41 40%

117 29%

27 27%

26 18%

2 1%

42 41%

202 51%

22 20%

71 18%

9 2%

101 25%

35 23% -

5 3% -

9 19%

3 6%

1 2% -

12 17%

2 3%

1 1%

1 2%

12 17%

2 2%

2 2% -

12 17%

3 4%

1 1%

1 2%

107 55% 52 27%

48 24%

43 22%

37 19%

6 3%

4 2% -

101 51%

52 27%

39 20%

35 18%

31 16%

3 2%

6 3%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 22-4 QUESTION 17: Thinking ahead, what would you say are the two or three most important drivers of your company's future growth? BANNER 4

BASE=TOTAL SAMPLE NEW CUSTOMERS/RETAINING CUSTOMERS

MAXIMIZING PRODUCTIVITY NEW PRODUCTS

ELIMINATING TIME AND ENERGY WASTE INSIDE YOUR COMPANY

BETTER STRATEGIC PLANNING AND IMPLEMENTATION

DEVELOPING COMPANY MANAGERS AND LEADERS OTHER

DON'T KNOW/NOT SURE REFUSED

PAGE 111

87 22%

285 71%

103 26%

36 42%

112 39%

26 26%

212 53%

42 48%

108 27%

17 19%

145 36%

150 52%

28 34%

19 44%

3 43%

45 37%

35 38%

58 39%

2 29%

31 25%

56 20%

20 19%

6 14%

31 22%

20 24%

10 24%

19 15%

7 2%

2 2%

4 4%

5 2% 1 -

22 21%

10 23%

36 25%

20 24%

19 45%

149 37%

11 27%

68 24%

41 49%

93 23%

26 32%

10 2%

1 1%

61 42%

79 55%

122 31%

33 23%

60 21%

2 1%

14 33%

7 2%

16 37%

21 24% 4 4%

42 11%

31 30%

72 25%

71 18% 9 2%

83 21%

20 47%

21 24% 8 9%

144 36%

53 51%

92 23%

79 20%

43 11%

11 26%

2 28%

1 12%

66 54%

31 25%

45 49%

44 41%

84 44%

53 44%

42 37%

28 19%

2 18%

45 21%

27 18%

26 20%

27 22%

22 21%

4 2%

31 21%

1 1%

2 4%

4 3%

6 4%

2 2%

47 37%

25 27%

23 25%

3 2%

52 40%

31 29%

62 41%

34 28%

5 5%

88 41%

34 26%

27 18%

1 1%

114 28%

37 25%

18 19%

120 30%

61 29%

22 18%

1 1%

191 48%

6 60%

2 27%

3 2%

106 27%

36 24%

8 19%

125 31%

26 28%

11 13%

128 32%

113 53%

36 25%

3 4%

151 38%

5 52%

9 21%

3 2%

214 54%

80 54%

9 9%

1 2%

10 2%

2 2% -

2 21%

62 29%

76 50%

45 30%

64 50%

40 31%

63 50%

39 31%

53 50%

29 27%

93 49% 44 23%

56 29%

38 20%

57 48% 31 25%

33 28%

25 21%

77 19%

67 59%

41 54%

33 72%

37 32%

24 31%

23 49%

28 24%

27 24%

26 33%

16 21%

4 5%

40 27%

31 24%

29 23%

25 24%

53 28%

30 25%

11 10%

14 18%

4 2%

5 3%

1 1%

2 2%

2 1%

1 1%

4 3%

2 3%

1 -

2 1%

1 1%

3 3%

1 1%

3 3%

1 1%

4 2%

2 1%

4 3% -

1 1% -

BASE=TOTAL SAMPLE NEW CUSTOMERS/RETAINING CUSTOMERS MAXIMIZING PRODUCTIVITY NEW PRODUCTS ELIMINATING TIME AND ENERGY WASTE INSIDE YOUR COMPANY BETTER STRATEGIC PLANNING AND IMPLEMENTATION

DEVELOPING COMPANY MANAGERS AND LEADERS OTHER

DON'T KNOW/NOT SURE REFUSED

BASE=TOTAL SAMPLE GROWING REVENUE AND PROFITABILITY

MAXIMIZING PRODUCTIVITY

SYSTEMS AND TECHNOLOGY STAFF DEVELOPMENT AND CULTURE

400 100%

212 53%

145 36%

69 33%

145 100%

92 23%

24 11%

42 29%

71 18%

22 11%

22 15%

212 53%

212 100%

108 27%

58 27%

145 36%

79 20% 9 2%

10 2%

2 1%

30 14% 1 -

69 48%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

22 31%

110 34%

36 44%

26 41%

33 40%

52 34%

33 38%

116 36%

15 34%

20 37%

14 20%

72 22%

20 25%

17 28%

21 26%

32 21%

20 23%

65 20%

15 34%

12 22%

16 20%

71 100%

57 18%

14 17%

10 16%

13 16%

27 17%

19 22%

50 16%

10 24%

12 23%

12 12%

7 15%

25 25%

40 18%

1 2%

3 3%

5 2%

58 54%

24 26%

30 38%

22 15%

108 100%

19 21%

22 27%

22 15%

22 20%

1 1%

22 20%

42 46%

19 18%

92 100%

9 8%

14 15%

2 2%

22 28%

12 15%

12 13%

79 100%

2 2%

22 31%

169 53%

43 53%

32 52%

52 64%

75 49%

42 49%

176 55%

M E9E T 90 I N G 18 S T R 13 E E T 28R E 36 S E A 22 R C H 86 12% 28% 22% 21% 34% 24% 26% 27% 16 22% 2 3% -

55 17% 8 3%

8 2%

2 1%

25 30% 1 1%

2 2% -

14 23% 1 2%

2 3% -

17 20% 1 1%

1 1% -

32 21%

4 2%

5 3% -

13 15%

3 3%

2 2%

1 1%

60 19%

5 2%

10 3%

2 1%

20 47%

16 36%

8 18%

3 7%

33 61%

13 24%

51 10%

100 19%

41 41%

24 47%

45 45%

66 30%

22 22%

15 30%

28 28%

44 20%

57 57%

23 23% 23 23% 3 3%

1 1%

23 45%

16 31% 11 22% 3 6% -

52 52%

23 23% 21 21% 1 1% -

218 42%

110 50%

64 29% 43 20% 5 2%

1 1%

PAGE 113

140 35%

218 54%

76 54%

232 58%

150 37%

147 37%

87 22%

48 12%

43 11%

82 20%

85 60%

57 65%

22 46%

24 55%

45 55%

61 43%

29 34%

12 26%

21 49%

27 33%

57 41%

47 54%

29 33%

23 48%

14 30%

28 65%

18 42%

45 55%

28 35%

228 57%

172 43%

166 42%

108 27%

101 25%

123 54%

95 55%

76 46%

65 60%

62 62%

141 62%

90 44%

77 65%

46 12%

100 25%

299 75%

157 39%

107 27%

56 58%

39 64%

24 53%

57 57%

160 53%

85 55%

53 50%

111 37%

49 31%

42 40%

18 55%

35 45%

27 28%

14 23%

16 36%

34 34%

96 32%

47 30%

42 40%

9 28%

26 33%

36 12%

8 5%

17 16%

7 20%

12 16%

38 39%

10 11%

15 15%

23 38%

44 32%

27 31%

16 32%

13 31%

29 36%

71 31%

58 34%

50 30%

40 37%

36 35%

57 28%

39 33%

33 42%

43 48%

ISO BUSINESS MANAGEMENT SYSTEMS

45 11%

21 15%

12 14%

2 4%

4 9%

7 8%

33 14%

13 7%

10 6%

12 11%

19 19%

12 6%

19 16%

14 18%

6 6%

21 21%

8 13%

NONE OF THE ABOVE

42 11%

12 8%

11 13%

11 14%

23 10%

31 19%

3 3%

6 6%

31 16%

8 7%

2 3%

10 11%

7 7%

7 12%

DON'T KNOW/REFUSED

54 13% 1 -

8 2%

22 16% -

3 2%

12 14%

1 1%

2 2%

5 11%

5 10% 3 6%

5 12%

3 7%

9 12%

34 15%

1 -

5 2%

19 11%

3 2%

18 11%

1 1% -

9 8%

2 2%

156

24 23%

3 3%

22 11%

1 1%

2 1%

16 13%

1 1%

16 21%

5 6%

1 1%

3 3%

4 7% -

17 36%

37 37%

11 23%

20 20%

1 1%

6 14% 3 6% -

10 10% 9 9% -

167 56%

110 37%

34 11% -

33 11% 8 3%

82 52%

34 21% 13 9%

1 1%

20 13% 2 1%

72 67%

48 62%

39 39%

37 41%

65 65%

24 74%

9 20%

53 67%

52 57%

25 55%

77 19%

24 40%

56 48%

50 63%

34 57%

33 8%

46 47%

37 18%

72 62%

60 15%

33 36%

63 62%

109 54%

97 24%

M E90 E T I60 N G S49 T R E42 E T 51 R E S60 E A R47 C H 43 39% 35% 29% 39% 50% 30% 40% 54% 38 35%

67 66%

91 23%

57 59%

36 22%

62 57%

79 20%

58 64%

60 35%

92 55%

117 29%

51 64%

86 38%

91 53%

202 51%

130 32%

OTHER

EXPANDING WITHIN THE UNITED STATES/NEW CUSTOMERS

EXPANDING GLOBALLY

PAGE 112

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 23-1 QUESTION 18: Looking ahead to 2019, do you plan to increase investment in any of the following areas? BANNER 1

1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 22-5 QUESTION 17: Thinking ahead, what would you say are the two or three most important drivers of your company's future growth? BANNER 5

5 10%

13 29%

39 18%

10 22%

21 27%

1 8%

2 1%

46 12%

45 42%

20 19% -

14 13% -

22 68%

19 58%

7 20% -

2 6%

46 60%

39 51%

11 14% -

3 4%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 23-2 QUESTION 18: Looking ahead to 2019, do you plan to increase investment in any of the following areas? BANNER 2

BASE=TOTAL SAMPLE GROWING REVENUE AND PROFITABILITY

MAXIMIZING PRODUCTIVITY SYSTEMS AND TECHNOLOGY STAFF DEVELOPMENT AND CULTURE

EXPANDING WITHIN THE UNITED STATES/NEW CUSTOMERS

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 232 58%

201 50%

120 60%

102 59%

86 43%

218 54%

119 59%

147 37%

83 42%

150 37%

171 43%

372 93%

5 22%

65 33%

48 31%

8 37%

49 27%

26 13%

12 8%

3 12%

23 13%

17 10%

44 12%

NONE OF THE ABOVE

42 11%

13 7%

18 11%

31 8%

DON'T KNOW/REFUSED

8 2%

1 1%

181 45%

123 33%

27 14%

1 1%

21 5%

4 18%

140 38%

45 11%

1 -

155 39%

145 39%

57 33%

ISO BUSINESS MANAGEMENT SYSTEMS OTHER

196 49%

59 35%

57 33%

35 18%

9 42%

206 55%

66 33%

54 13%

222 60%

86 50%

130 32%

EXPANDING GLOBALLY

21 5%

15 9% -

4 2%

50 13% 1 -

5 1%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

15 42%

91 53%

71 57%

33 54%

110 53%

25 51%

144 62%

5 14%

63 37%

55 45%

22 36%

66 32%

8 17%

101 56%

32 54%

96 64%

161 68%

8 37%

59 46%

122 67%

13 37%

70 36%

64 42%

4 18%

72 40%

16 28%

60 40%

104 44%

3 14%

37 29%

74 41%

7 19%

18 30%

58 39%

81 34%

6 29%

39 30%

62 34%

12 32%

4 6%

15 10%

33 14%

2 10%

8 6%

25 14%

3 9%

8 3%

8 36%

75 38%

2 9%

236 59%

9 45%

6 27%

150 37%

88 57%

113 58%

8 39%

59 15%

123 63%

10 48%

3 14%

PAGE 114

28 15%

13 7% 3 2%

86 55%

56 36%

16 11%

18 11% 2 1%

7 35%

8 39%

3 15%

1 5%

5 25% 1 4%

109 60%

61 34%

24 13%

1 1%

18 10% 6 4%

27 45%

17 28%

6 10%

79 52%

66 44%

22 15%

10 17%

12 8%

1 2%

1 1%

142 60%

103 44%

43 18%

1 -

2 1%

10 46%

5 21%

1 5%

60 47%

36 28%

8 6%

24 18%

4 3%

107 59%

75 41%

29 16%

9 5%

4 2%

2 6%

11 30%

95 55%

65 38%

54 32%

20 12%

15 9% -

21 12% 2 1%

83 67%

53 43%

35 57%

22 36%

52 42%

15 24%

20 16%

3 5%

18 15% -

3 3% 1 1%

4 7% -

13 20% -

110 53%

BASE=TOTAL SAMPLE GROWING REVENUE AND PROFITABILITY

MAXIMIZING PRODUCTIVITY

SYSTEMS AND TECHNOLOGY STAFF DEVELOPMENT AND CULTURE

EXPANDING WITHIN THE UNITED STATES/NEW CUSTOMERS EXPANDING GLOBALLY

92 23%

298 74%

202 50%

151 38%

119 30%

218 54%

58 62%

157 53%

130 65%

101 67%

85 71%

232 58%

150 37%

57 62%

138 68%

38 42%

109 37%

104 51%

28 31%

101 34%

81 40%

147 37%

43 47%

54 13%

19 20%

130 32%

174 58%

103 35%

34 11%

107 71%

73 48%

85 71%

61 52%

90 44%

71 47%

61 51%

35 18%

23 15%

24 20%

59 39%

50 42%

95 24%

147 37%

71 44 141 83 80 87 53 100 74% 44% 52% 49% 47% 51% 75% 68% M E E T I N G S T R E E T R E S E A R C H 52 17 100 62 59 65 34 68 55% 17% 37% 37% 35% 38% 47% 46%

99 68%

94 64%

50 53%

27 26%

18 18%

6 5%

36 38%

61 29%

14 29%

79 34%

20 10%

4 9%

30 14% 1 1%

25 12% 5 3%

3 7% -

13 26% -

106 45%

35 15%

35 15% -

12 5%

2 1%

20 27%

87 45%

23 32%

15 21%

9 6%

11 7%

3 3%

26 25%

18 25%

11 8%

3 3%

2 2%

20 27%

14 30%

3 4%

4 3%

2 1%

16 34%

69 47%

16 9%

7 3%

2 2%

31 11%

4 2%

14 8%

1 1%

M E E T I N G S T R E E T

157

14 9%

1 1%

2 1%

2 2%

R E S E A R C H

3 2%

97 49%

66 44%

75 51%

10 22%

26 18%

118 61%

73 50%

20 42%

24 17%

11 15%

196 49%

126 64%

22 15%

24 14%

196 49%

35 48%

25 17%

22 13%

73 18%

33 44%

12 17%

21 12%

74 18%

34 48%

11 7%

1 1%

36 13%

72 18%

24 50%

14 8%

35 12%

4 2%

47 12%

12 7%

5 6%

5 2%

69 47%

23 16% -

3 2%

39 27%

109 47%

99 67%

21 8%

42 11%

37 52%

102 70%

12 25%

NONE OF THE ABOVE

8 2%

56 33%

94 64%

56 38%

3 3%

DON'T KNOW/REFUSED

42 60%

58 40%

12 12%

71 18%

95 56%

50 34%

17 14%

56 33%

171 43%

24 34%

18 12%

94 56%

54 31%

32 16%

60 35%

169 42%

53 32%

29 10%

1 -

101 59%

54 32%

16 17%

94 34%

170 42%

91 33%

45 11%

1 -

162 59%

11 23%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

23 23%

ISO BUSINESS MANAGEMENT SYSTEMS OTHER

274 68%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----146 36%

46 45%

70 47%

75 50%

40 27%

49 33%

10 7%

2 48% -

17 12% -

24 16% 4 3%

PAGE 115

147 37%

75 78%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

2 52%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 23-3 QUESTION 18: Looking ahead to 2019, do you plan to increase investment in any of the following areas? BANNER 3

148 37%

150 64%

72 34%

16 33%

3 1%

20 13% -

2 1%

31 44% 17 23%

34 46%

33 45%

19 26%

96 49%

45 23%

18 9%

17 23%

70 36%

7 10%

8 11%

10 13%

35 18%

1 2%

1 1%

6 13%

2 4%

12 17%

3 4%

59 30%

14 19%

7 15%

6 8%

102 52%

7 10%

16 21%

3 4%

8 11%

12 17%

3 4%

56 29%

31 16%

12 6%

11 5%

30 15%

7 4%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 23-4 QUESTION 18: Looking ahead to 2019, do you plan to increase investment in any of the following areas? BANNER 4

BASE=TOTAL SAMPLE GROWING REVENUE AND PROFITABILITY

MAXIMIZING PRODUCTIVITY SYSTEMS AND TECHNOLOGY STAFF DEVELOPMENT AND CULTURE

EXPANDING WITHIN THE UNITED STATES/NEW CUSTOMERS EXPANDING GLOBALLY

87 22%

285 71%

43 11%

144 36%

83 21%

42 11%

40 48%

30 72%

122 31%

93 23%

149 37%

4 59%

68 55%

42 46%

94 63%

174 61%

55 53%

28 66%

85 59%

41 50%

150 37%

31 35%

118 41%

29 28%

22 53%

59 41%

31 37%

15 34%

3 47%

41 34%

32 35%

46 32%

31 38%

11 27%

2 29%

40 32%

4 9%

18 13%

9 11%

8 18%

1 14%

9 8%

2 4%

9 6%

47 54%

147 37%

35 40%

54 13%

13 15%

130 32%

24 27%

172 60%

18 42%

67 47%

37 13%

15 14%

4 10%

16 11%

NONE OF THE ABOVE

42 11%

10 12%

24 8%

8 2%

1 1%

89 62%

22 22%

100 35% 34 12%

27 63%

122 43%

14 16%

1 -

42 40%

2 1%

26 26% 10 9%

16 15%

4 4%

11 27%

4 2%

29 35%

14 17% -

10 12%

3 3%

30 70%

7 2%

47 54%

218 54%

45 11%

DON'T KNOW/REFUSED

103 26%

232 58%

ISO BUSINESS MANAGEMENT SYSTEMS OTHER

PAGE 116

19 44%

6 14% -

3 6%

5 74%

2 27%

1 16% -

63 52%

41 34%

17 14% 1 1%

54 58%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

108 71%

94 73%

93 74%

68 64%

128 67%

71 59%

53 47%

38 32%

33 29%

35 45%

15 32%

11 14%

6 12%

7 74%

149 69%

112 74%

66 44%

6 62%

96 45%

80 53%

66 52%

66 53%

53 50%

86 45%

46 38%

30 32%

51 35%

2 24%

75 35%

54 36%

45 35%

45 36%

38 35%

60 31%

39 32%

12 13%

16 11%

4 44%

34 16%

29 19%

19 14%

8 9%

11 8%

32 34%

14 15% -

14 11%

2 2%

98 66%

10 2%

60 40% 14 9% -

4 3%

5 54%

157 73%

5 54%

101 47%

5 52%

31 15%

14 7%

2 1%

88 58%

24 16% -

8 5% 1 1%

85 66%

65 51%

93 75%

77 62%

73 69%

64 60%

123 64%

101 53%

71 59%

BASE=TOTAL SAMPLE GROWING REVENUE AND PROFITABILITY

MAXIMIZING PRODUCTIVITY SYSTEMS AND TECHNOLOGY STAFF DEVELOPMENT AND CULTURE

EXPANDING WITHIN THE UNITED STATES/NEW CUSTOMERS EXPANDING GLOBALLY

212 53%

145 36%

108 27%

92 23%

79 20%

218 54%

111 52%

103 71%

61 57%

65 71%

52 66%

147 37%

75 35%

63 44%

43 40%

44 48%

36 45%

54 13%

33 16%

17 12%

23 21%

8 9%

10 13%

232 58% 150 37% 130 32%

127 60% 78 37%

78 37%

93 64% 61 42%

46 31%

74 68% 43 40%

38 35%

61 66% 41 45%

29 32%

52 65% 31 39%

30 38%

71 18%

45 63%

319 80%

81 20%

62 16%

82 20%

190 60%

42 52%

42 67%

54 67%

43 60%

115 36%

32 40%

32 51%

11 15%

47 15%

7 9%

10 16%

41 48%

34 42%

50 32%

26 30%

14 17%

15 10%

9 11%

29 41%

108 34%

22 27%

24 39%

24 29%

27 13%

17 12%

12 11%

12 13%

10 13%

11 16%

35 11%

10 12%

9 15%

17 20%

NONE OF THE ABOVE

42 11%

24 12%

9 6%

7 6%

7 8%

2 3%

6 8%

30 9%

12 15%

3 5%

7 9%

DON'T KNOW/REFUSED

8 2%

1 1%

3 1%

1 1%

6 4%

3 4%

320 80% 181 57%

40 173 45 41 50 82 37 166 57% 54% 55% 65% 61% 53% 42% 52% M E E T I N G S T R E E T R E S E A R C H 33 121 29 25 33 58 31 107 46% 38% 36% 39% 40% 37% 36% 34%

45 11% 1 -

87 22%

84 55%

ISO BUSINESS MANAGEMENT SYSTEMS OTHER

154 39%

2 2%

1 -

7 2%

2 2%

M E E T I N G S T R E E T

158

2 2%

50 32%

13 8%

18 12%

1 1%

23 27%

43 11%

27 63%

1 1%

7 5% 3 2%

7 5% 1 1%

4 4% 2 2%

11 6% 3 1%

16 13% 1 1%

27 50%

100 19%

72 72%

51 10%

27 53%

100 19%

65 65%

218 42%

136 62%

118 54%

94 29%

31 73%

20 36%

40 40%

20 39%

43 43%

81 37%

37 12%

11 27%

5 10%

13 13%

5 10%

10 23%

12 14%

40 12%

1 2%

4 5%

54 10%

64 64%

31 10%

1 1%

R E S E A R C H

1 -

3 1%

48 63%

31 40%

10 9%

7 10%

12 10%

7 9%

2 1%

2 3%

24 53%

17 38% 4 8%

3 7%

PAGE 117

31 61%

4 5%

39 34%

61 61%

16 38%

19 40%

11 10%

12 10%

27 51%

96 30%

33 42%

17 14%

32 17%

29 67%

23 53%

42 37%

26 14%

33 71%

22 20%

25 23%

46 12%

52 68%

26 21%

77 19%

64 56%

17 13%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 23-5 QUESTION 18: Looking ahead to 2019, do you plan to increase investment in any of the following areas?

BANNER 5

114 28%

18 33% 19 35% 4 8%

8 16%

1 2%

38 38%

39 39%

8 8%

10 10%

2 2%

24 48%

15 30%

42 42%

33 33%

11 11%

88 40%

68 31%

33 15%

4 7%

12 12%

31 14%

5 9%

8 8%

19 9%

1 1% 5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 24-1 QUESTION 19: Have or will wages for your employees increase for 2019, or will they decrease or stay about the same? BANNER 1

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) INCREASE DECREASE STAY ABOUT THE SAME DON'T KNOW REFUSED

PAGE 118

140 35%

88 63%

87 22%

51 58%

48 12%

20 42%

43 11%

24 55%

82 20%

46 56%

228 57%

139 61%

172 43%

90 52%

166 42%

69 42%

108 27%

101 25%

67 62%

79 78%

202 51%

93 46%

117 29%

79 20%

78 66%

58 74%

91 23%

43 47%

97 24%

68 70%

60 15%

44 72%

46 12%

100 25%

299 75%

157 39%

25 55%

44 45%

185 62%

77 49%

107 27%

70 66%

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) INCREASE DECREASE STAY ABOUT THE SAME DON'T KNOW REFUSED

21 63%

47 61%

1 3%

88 63%

52 60%

20 42%

25 58%

47 57%

141 62%

92 53%

72 43%

67 62%

79 78%

96 47%

78 66%

58 74%

45 49%

68 70%

44 72%

25 55%

46 46%

186 62%

78 50%

70 66%

22 66%

148 37%

49 35%

28 33%

27 56%

12 28%

32 39%

77 34%

71 41%

83 50%

38 35%

21 20%

91 45%

37 32%

19 24%

44 48%

24 25%

14 23%

19 41%

47 47%

101 34%

68 43%

33 31%

10 31%

28 36%

6 1%

2 1%

1 1%

2 5%

1 1%

3 1%

3 2%

4 2%

2 2%

1 1%

1 2%

2 2%

3 1%

3 2%

1 1%

2 2%

3 1%

10 2%

2 1%

2 2%

4 4%

1 2%

3 7%

1 1%

2 1%

5 2%

2 1%

5 3%

3 2%

5 3%

2 2%

3 2%

7 4%

3 2%

2 2%

1 1%

3 3%

2 3%

2 4%

2 2%

2 1%

8 3%

1 1%

6 4%

2 2%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

233 58%

138 68%

89 52%

226 61%

148 37%

55 28%

76 44%

6 1%

2 1%

1 -

229 57% 3 1%

10 2%

136 68% 1 1%

5 2%

87 51% 2 1%

4 2%

6 27%

129 66%

132 35%

13 62%

58 30%

3 1%

1 5%

3 1%

9 2%

5 24% 1 3%

1 3%

127 65% 2 1%

4 2%

21 5%

181 45%

22 6%

129 32%

181 45%

82 53%

9 42%

156 66%

6 29%

62 48%

119 66%

9 25%

98 57%

87 71%

32 51%

110 53%

67 43%

9 42%

71 30%

12 55%

63 49%

57 32%

21 59%

68 39%

35 28%

25 41%

85 41%

24 49%

2 1 2 2 1 2 2 M1% E E T5% I N G 1% S T R 4% E E T 1%R E 1% S E A R-C H 2%

1 3%

3 2%

6 3%

1 2%

82 53% 1 1%

3 2%

9 42% -

2 10%

92 23%

298 74%

202 50%

151 38%

119 30%

66 72%

163 55%

138 68%

94 62%

85 72%

148 37%

24 25%

121 41%

59 29%

52 34%

31 26%

6 1%

4 1%

2 1%

229 57%

66 71%

3 1%

1 1%

233 58%

10 2%

2 2%

161 54%

2 1% 7 2%

138 68%

3 2%

93 62%

1 1%

4 2%

1 1%

196 49%

224 60%

21 5%

47 61%

PAGE 119

59 15%

150 37%

236 59%

113 62%

28 48%

85 57%

61 34%

26 44%

58 39%

112 62% 1 -

5 3%

27 46% 1 1%

2 3%

83 55% 2 1%

4 2%

155 66% 1 -

6 2%

6 26%

1 3%

3 13%

61 48%

1 1%

118 65%

1 1%

4 2%

36 9%

7 21%

2 5%

3 8%

172 43%

98 57%

1 -

2 1%

123 31%

87 71%

1 1%

62 15%

29 47%

2 4%

3 5%

208 52%

49 12%

109 53%

24 49%

1 -

6 3%

24 49%

233 58%

3 1%

148 37%

233 100%

233 -3 100% -100% -

3 100%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 24-3 QUESTION 19: Have or will wages for your employees increase for 2019, or will they decrease or stay about the same? BANNER 3

77 19%

233 58%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 24-2 QUESTION 19: Have or will wages for your employees increase for 2019, or will they decrease or stay about the same? BANNER 2

33 8%

95 24%

101 25%

67 70%

39 38%

151 55%

101 59%

52 52%

109 40%

59 35%

85 72%

67 70%

2 2%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

26 27%

3 3%

37 36%

2 2%

5 5%

274 68% 147 54%

3 1%

6 2%

170 42%

169 42%

98 57%

88 52%

3 2%

4 2%

171 43%

147 37%

146 36%

147 37%

99 67%

108 74%

48 32%

47 66%

99 67%

3 2%

91 54%

105 62%

68 40%

56 33%

5 3%

71 18%

4 3%

47 66%

24 34%

3 4 2 1 1 M E-E T 3% I N G 2% S T R 1% E E T 1%R E 1% S E A R-C H

159 M E E T I N G S T R E E T

R E S E A R C H

1 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

92 62%

32 67%

32 44%

30 41%

33 46%

130 66%

98 50%

37 25%

54 37%

13 29%

37 52%

40 54%

36 49%

59 30%

87 44%

1 1%

2 1%

4 2%

108 74%

1 1%

148 100%

PAGE 120

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

102 60%

92 62%

2 1%

32 67%

2 4%

32 44%

3 4%

30 41%

3 4%

33 46% -

3 4%

129 66% 1 -

5 2%

196 49%

96 49% 3 1%

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 24-4 QUESTION 19: Have or will wages for your employees increase for 2019, or will they decrease or stay about the same? BANNER 4

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) INCREASE DECREASE STAY ABOUT THE SAME DON'T KNOW REFUSED

PAGE 121

87 22%

285 71%

103 26%

55 63%

182 64%

47 46%

148 37%

29 33%

97 34%

6 1%

1 -

229 57%

55 63%

3 1%

1 1%

233 58%

10 2%

2 3%

181 63% 1 -

4 2%

43 11%

144 36%

27 64%

100 69%

47 46%

13 31%

42 29%

40 48%

17 40%

3 39%

47 39%

31 33%

2 2%

1 2%

2 2%

1 1%

44 43%

27 64%

3 3%

4 4%

1 2%

83 21%

42 11%

7 2%

122 31%

4 61%

70 57%

99 69%

38 45%

26 60%

4 61%

1 1%

2 1%

38 46%

3 3%

26 60%

93 23%

149 37%

59 64%

89 60%

68 55%

58 63%

2 2%

1 1%

2 2%

10 2%

214 54%

151 38%

128 32%

6 59%

134 62%

116 76%

88 69%

56 38%

4 41%

76 35%

36 24%

39 30%

39 31%

1 -

88 59%

6 59%

1 -

3 2%

133 62%

1 -

3 1%

116 76%

125 31%

106 27%

191 48%

120 30%

134 70%

75 62%

59 52%

43 56%

18 39%

26 24%

53 28%

45 37%

49 43%

31 40%

27 59%

2 1%

1 -

1 1%

88 69%

86 69%

78 73%

134 70%

1 1%

86 69%

78 73%

1 1%

2 1%

75 62%

1 1%

114 28%

57 50% 2 1%

3 3%

77 19%

43 56% -

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 24-5 QUESTION 19: Have or will wages for your employees increase for 2019, or will they decrease or stay about the same? BANNER 5

BASE=TOTAL SAMPLE **D/S (INCREASE - DECREASE) INCREASE DECREASE STAY ABOUT THE SAME DON'T KNOW REFUSED

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/UNSURE REFUSED

17 37% 1 2% -

PAGE 122

212 53%

145 36%

108 27%

233 58%

115 54%

97 66%

63 58%

148 37%

84 40%

40 28%

39 36%

35 38%

32 40%

6 1%

5 2%

4 2%

1 1%

229 57%

3 1%

10 2%

113 53%

2 1% 5 3%

96 66%

1 1% 4 3%

92 23%

79 20%

71 18%

319 80%

45 64%

188 59%

24 33%

116 36%

60 56%

53 58%

46 57%

45 64%

3 2%

1 1%

2 2%

53 58%

3 3%

47 59%

81 20%

62 16%

82 20%

154 39%

52 64%

95 62%

186 58%

44 54%

35 55%

52 64%

2 1%

1 1%

2 3%

94 61%

41 48%

1 -

1 1%

43 11%

54 10%

100 19%

28 52%

51 51%

28 56%

63 63%

3 1%

1 1%

1 2%

2 2%

128 40%

9 21%

23 43%

43 43%

2 5 1 2 4 4 M 2% E E T 1% I N G 1% S T R E-E T 2%R E S-E A 5% R C H 1%

1 2%

2 2%

23 37%

1 1%

27 33%

1 1%

57 37%

2 1%

6 7%

100 19%

34 79%

33 38%

33 40%

51 10%

170 53%

174 54%

8 3%

36 58%

320 80%

42 49%

1 1%

45 55%

87 22%

10 3%

34 79%

29 53%

1 1%

52 52%

4 4%

29 58%

218 42%

135 62%

65 65%

136 62%

16 31%

32 32%

74 34%

2 4%

3 1%

3 6%

1 1%

1 -

5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 25-1 QUESTION 20: Does your company have a structured leadership development program for employees at all levels at your company? BANNER 1

46 12%

PAGE 123

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

33 8%

77 19%

-205 -51%

-74 -52%

-55 -63%

-21 -44%

-16 -38%

-39 -48%

-128 -56%

-77 -45%

-118 -71%

-63 -58%

-15 -15%

-133 -66%

-59 -50%

-12 -15%

-51 -56%

-56 -57%

-29 -48%

-27 -58%

-69 -70%

-135 -45%

-85 -54%

-74 -69%

-10 -30%

-28 -37%

298 74%

107 76%

68 78%

34 71%

30 69%

59 73%

175 77%

123 71%

140 84%

84 78%

56 56%

165 82%

88 75%

44 55%

71 78%

75 77%

44 73%

36 79%

84 84%

213 71%

120 76%

89 84%

21 65%

53 68%

2 -

2 2%

2 1%

92 23%

8 2%

33 24%

1 1%

13 15%

4 4%

2 2%

13 27%

1 3% -

13 31%

20 24%

2 3% -

46 20%

5 2%

46 27%

4 2%

22 13%

5 3%

21 20%

2 2 1% 2% M E E T I N G S T R E E T

41 41%

4 4%

32 16%

5 2%

29 24%

1 1%

R E S E A R C H

160 M E E T I N G S T R E E T

R E S E A R C H

31 40%

2 3%

19 21%

1 1%

20 20%

2 2%

15 25%

1 2%

10 21%

15 15%

1 1%

78 26%

7 2%

34 22%

3 2%

15 14%

2 2% -

12 35%

25 32%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 25-2 QUESTION 20: Does your company have a structured leadership development program for employees at all levels at your company? BANNER 2

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/UNSURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

PAGE 124

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

3 1%

-205 -51%

-88 -44%

-102 -59%

-190 -51%

-8 -39%

-82 -42%

-88 -57%

-10 -49%

-81 -45%

-40 -67%

-80 -54%

-113 -48%

-8 -38%

-76 -59%

-83 -46%

-21 -58%

-93 -54%

-54 -44%

-22 -36%

-124 -60%

-33 -68%

-97 -41%

-1 -35%

-97 -66%

298 74%

143 71%

133 78%

277 74%

14 65%

136 70%

120 78%

15 72%

129 71%

48 82%

113 76%

172 73%

15 67%

100 77%

130 72%

27 77%

130 76%

87 71%

42 67%

164 79%

41 83%

163 70%

2 59%

121 81%

2 1%

92 23%

8 2% 2 -

55 28%

2 1% -

32 18%

4 2%

2 1%

87 23%

6 2%

2 1%

5 26%

2 8% -

54 28%

4 2%

2 1%

32 21%

2 2%

5 23%

1 5%

48 26%

3 2%

2 1%

9 15%

33 22%

2 4%

3 2%

59 25%

4 2% -

7 30%

1 3%

24 19%

3 3%

2 2%

47 26%

4 2% -

7 18%

37 22%

2 5%

33 27%

2 1%

20 32%

3 2%

2 1%

39 19%

1 1%

7 15%

5 2%

66 29%

1 2%

1 24%

4 2%

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/UNSURE REFUSED

-205 -51%

92 23%

92 -298 100% -100%

92 23%

92 100%

8 2%

298 74% 2 -

298 74% -

202 50%

151 38%

119 30%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

147 37%

146 36%

147 37%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

-96 -48%

-62 -41%

-24 -20%

-25 -26%

-60 -59%

-161 -59%

-94 -55%

-93 -55%

-96 -56%

-22 -31%

-60 -41%

-66 -46%

-69 -47%

-16 -35%

-43 -59%

-37 -51%

-32 -43%

-49 -25%

-153 -78%

50 25%

44 29%

46 39%

35 36%

20 19%

53 19%

36 21%

35 20%

23 33%

42 29%

39 27%

38 26%

15 31%

14 19%

17 22%

20 27%

70 36%

20 10%

298 100%

146 73%

106 70%

70 59%

60 63%

79 79%

214 78%

130 76%

129 76%

131 77%

46 64%

102 70%

105 72%

108 73%

31 66%

56 78%

54 73%

51 70%

118 61%

173 88%

2 1%

2 2%

2 1%

2 3%

2 1%

3 2%

2 1%

1 1%

2 2%

5 2%

4 3%

M E E T I N G S T R E E T

6 3%

2 3%

3 2%

1 1%

1 3%

1 2%

5 3%

3 1%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 25-4 QUESTION 20: Does your company have a structured leadership development program for employees at all levels at your company? BANNER 4

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/UNSURE REFUSED

2 1%

PAGE 125

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

24 16%

1 18%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 25-3 QUESTION 20: Does your company have a structured leadership development program for employees at all levels at your company? BANNER 3

148 37%

PAGE 126

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

-205 -51%

-46 -52%

-147 -51%

-47 -46%

-17 -41%

-76 -52%

-43 -52%

-19 -44%

-3 -39%

-61 -50%

-43 -47%

-82 -55%

-4 -39%

-103 -48%

-71 -47%

-48 -37%

-55 -44%

-56 -53%

-74 -39%

-51 -42%

-77 -67%

-44 -57%

-37 -79%

298 74%

66 75%

212 74%

74 71%

30 70%

109 76%

60 73%

30 72%

5 70%

91 74%

67 73%

112 75%

7 69%

157 73%

110 73%

86 67%

89 71%

81 76%

130 68%

84 70%

93 82%

59 77%

41 90%

2 1%

2 2%

2 1%

92 23%

8 2% 2 -

20 23%

2 2%

66 23%

7 3%

27 26%

1 1%

2 2%

13 30%

33 23%

17 21%

5 7%

12 28%

2 30%

29 24% 2 2%

24 26%

M E E T I N G S T R E E T

161

M E E T I N G S T R E E T

1 1%

31 21% 4 3%

3 31% -

54 25%

R E S E A R C H

3 2%

39 26%

2 2%

38 30%

1 1%

34 27% 2 2%

25 23% 1 1%

56 29% 2 1%

34 28% 2 2%

16 14% 5 4%

16 20% 2 3% -

5 10%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 25-5 QUESTION 20: Does your company have a structured leadership development program for employees at all levels at your company?

BANNER 5

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/UNSURE REFUSED

PAGE 127

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

61 19%

22 51%

6 2%

1 2%

-205 -51%

-123 -58%

-79 -55%

-50 -46%

-41 -44%

-37 -47%

-37 -52%

-162 -51%

-43 -53%

-29 -47%

-28 -34%

-96 -62%

-43 -50%

-192 -60%

298 74%

165 78%

110 76%

78 72%

65 71%

57 72%

54 76%

236 74%

61 76%

46 73%

54 66%

123 80%

63 73%

253 79%

2 -

2 1%

92 23%

8 2%

42 20%

5 2%

31 21%

3 2%

28 26%

2 2%

24 26%

20 25%

2 3%

17 24%

74 23%

7 2%

2 1%

19 23%

1 1% -

17 27%

26 32%

2 2%

27 18%

4 3% -

20 23%

2 2%

54 10%

100 19%

51 10%

100 19%

218 42%

1 3%

-19 -35%

-28 -28%

-23 -45%

-36 -36%

-125 -58%

20 47%

36 66%

63 63%

37 72%

67 67%

169 77%

17 31%

2 3% -

35 35%

2 2% -

14 28%

31 31%

1 1% -

43 20%

4 2%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 128 Table 26-1 QUESTION 21: And, how much of an investment is your company currently making in these leadership training programs? Is it a major investment, a modest investment or just a little investment currently? BANNER 1

BASE=YES IN Q.20 **D/S (MAJOR INVESTMENT LITTLE INVESTMENT)

MAJOR INVESTMENT

MODEST INVESTMENT JUST A LITTLE INVESTMENT DON'T KNOW

33 36%

13 14%

-40 -44%

-17 -51%

-6 -48%

-8 -60%

34 37%

13 38%

5 38%

3 3%

7 8%

48 52%

2 5%

19 56%

1 7%

7 55%

13 14%

20 22%

46 50%

22 24%

21 23%

41 44%

32 35%

29 31%

31 34%

19 21%

20 21%

15 16%

10 11%

15 16%

78 84%

34 37%

15 17%

12 12%

25 27%

-1 -8%

-8 -42%

-23 -50%

-17 -37%

-14 -66%

-11 -50%

-9 -23%

-23 -71%

-6 -21%

-11 -37%

-6 -32%

-5 -27%

-7 -49%

-4 -39%

-7 -46%

-34 -43%

-17 -48%

-7 -47%

-2 -21%

-13 -53%

2 16%

7 51%

7 37%

18 38%

16 35%

6 26%

9 41%

18 45%

6 18%

13 46%

15 47%

11 58%

5 27%

6 38%

4 40%

4 27%

30 38%

11 31%

4 28%

6 50%

10 40%

1 7%

2 11%

3 7%

2 6%

1 5%

2 9%

3 4%

1 8%

9 68%

3 21%

4 29%

1 5%

9 47%

3 6%

26 56%

5 10%

22 48%

1 4%

15 70%

1 5%

5 13%

12 54%

15 36%

M E E T I N G S T R E E T

2 6%

25 76%

4 13%

2 6%

10 34%

13 42%

6 32%

5 23%

10 50%

1 6%

8 55%

1 11%

5 50%

2 13%

9 59%

5 7%

39 50%

4 11%

20 59%

2 13% 9 59% -

1 8%

3 29%

1 12%

13 53% 2 7%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 129 Table 26-2 QUESTION 21: And, how much of an investment is your company currently making in these leadership training programs? Is it a major investment, a modest investment or just a little investment currently? BANNER 2

BASE=YES IN Q.20 **D/S (MAJOR INVESTMENT LITTLE INVESTMENT)

MAJOR INVESTMENT

MODEST INVESTMENT JUST A LITTLE INVESTMENT DON'T KNOW

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----92 100%

55 60%

32 34%

87 94%

5 6%

32 35%

5 5%

48 52%

9 9%

33 36%

59 64%

7 7%

24 26%

47 51%

7 7%

37 40%

33 36%

20 21%

39 43%

7 8%

-40 -44%

-17 -31%

-22 -71%

-40 -45%

-1 -17%

-18 -33%

-19 -60%

-2 -42%

-24 -51%

-7 -78%

-9 -28%

-18 -30%

-4 -58%

-16 -68%

-14 -30%

-5 -72%

-20 -54%

-8 -25%

-9 -45%

-23 -59%

-6 -76%

34 37%

22 40%

7 23%

29 34%

5 83%

21 40%

12 36%

1 19%

21 44%

2 22%

10 31%

25 42%

3 42%

6 26%

20 42%

2 28%

12 33%

13 39%

6 28%

15 39%

2 24%

3 3%

3 6%

3 4%

2 3%

1 4%

1 2%

2 7%

2 3%

1 6%

2 4%

1 4%

2 7%

7 8%

48 52%

6 12%

24 43%

1 3%

23 74%

7 9%

47 54%

1 17%

7 12%

24 45%

19 60%

1 19%

3 62%

1 2%

25 53%

7 78%

6 17%

15 45%

M E E T I N G S T R E E T

162

M E E T I N G S T R E E T

7 13%

25 42%

4 58%

16 68%

R E S E A R C H

6 12%

20 42%

5 72%

2 5%

22 58%

5 14%

13 40%

3 13%

12 59% -

23 59% 1 2%

6 76% -

66 72%

1 1%

6 10%

32 49%

1 100%

-26 -1 -39% -100% 25 38% 2 3%

24 25%

-13 -54% 1 4%

9 37%

14 59% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 130 Table 26-3 QUESTION 21: And, how much of an investment is your company currently making in these leadership training programs? Is it a major investment, a modest investment or just a little investment currently? BANNER 3

BASE=YES IN Q.20 **D/S (MAJOR INVESTMENT LITTLE INVESTMENT)

MAJOR INVESTMENT

MODEST INVESTMENT JUST A LITTLE INVESTMENT DON'T KNOW

92 100%

-40 -44%

34 37%

3 3%

7 8%

48 52%

50 54%

44 47%

46 50%

35 38%

20 21%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----53 58%

36 39%

35 37%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----23 25%

42 46%

39 42%

38 41%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----15 16%

14 15%

17 18%

20 21%

70 75%

20 22%

-18 -37%

-20 -46%

-18 -40%

-17 -48%

-14 -71%

-25 -47%

-17 -47%

-19 -52%

-11 -31%

-10 -43%

-13 -31%

-11 -27%

-19 -51%

-4 -30%

-10 -72%

-10 -63%

-11 -54%

-28 -40%

-11 -54%

21 43%

19 43%

21 45%

13 37%

6 29%

20 38%

14 40%

13 35%

17 48%

9 38%

20 47%

21 53%

14 36%

5 34%

1 5%

3 16%

27 39%

6 28%

3 6%

3 7%

3 9%

2 4%

1 3%

2 5%

1 4%

2 5%

2 6%

1 4%

7 8%

48 52%

4 7%

22 44%

1 2%

21 48%

2 4%

20 44%

1 3%

18 51%

14 71%

3 6%

28 52%

2 5%

19 52%

21 57%

3 8%

13 38%

2 8%

12 51%

4 9%

17 39%

3 7%

13 34%

2 5%

21 55%

3 18%

2 14%

7 48%

3 16%

12 86%

3 15%

13 79%

13 69%

6 8%

34 48%

3 5%

2 9%

13 63% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 131 Table 26-4 QUESTION 21: And, how much of an investment is your company currently making in these leadership training programs? Is it a major investment, a modest investment or just a little investment currently? BANNER 4

BASE=YES IN Q.20 **D/S (MAJOR INVESTMENT LITTLE INVESTMENT)

MAJOR INVESTMENT

MODEST INVESTMENT JUST A LITTLE INVESTMENT DON'T KNOW

20 22%

66 71%

27 29%

-40 -44%

-16 -78%

-27 -41%

-14 -51%

34 37%

4 22%

31 47%

3 10%

7 8%

48 52% 3 3%

16 78% -

3 4%

30 45% 2 3%

13 14%

17 19%

12 13%

2 2%

29 32%

24 26%

31 33%

3 3%

54 58%

39 42%

38 42%

34 36%

25 27%

56 61%

34 36%

16 17%

5 5%

-2%

-16 -48%

-11 -67%

-3 -24%

-1 -46%

-13 -44%

-8 -33%

-16 -51%

-2 -73%

-21 -39%

-10 -27%

-12 -31%

-12 -35%

-3 -14%

-21 -37%

-15 -44%

-9 -56%

-2 -14%

-2 -37%

9 68%

12 36%

6 33%

3 24%

1 54%

9 30%

11 44%

11 36%

1 27%

23 43%

17 44%

16 41%

20 59%

14 57%

24 42%

12 35%

7 44%

10 64%

1 19%

5 18%

2 15%

18 69%

2 17%

1 3%

33 36%

2 6%

18 54%

1 4%

11 67%

3 22%

5 46%

1 7%

1 46%

3 9%

3 11%

16 53%

11 44%

2 8%

M E E T I N G S T R E E T

2 7%

18 57%

2 73%

5 9%

26 47%

R E S E A R C H

1 2%

5 12%

15 39%

2 6%

5 12%

17 43%

1 4%

1 3%

13 38% -

4 15%

7 28% -

5 8%

26 46% 2 4%

3 8%

18 53% 1 4%

9 56%

2 11%

4 25%

1 22%

3 59%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 132 Table 26-5 QUESTION 21: And, how much of an investment is your company currently making in these leadership training programs? Is it a major investment, a modest investment or just a little investment currently? BANNER 5

BASE=YES IN Q.20 **D/S (MAJOR INVESTMENT LITTLE INVESTMENT)

MAJOR INVESTMENT

MODEST INVESTMENT JUST A LITTLE INVESTMENT DON'T KNOW

42 45%

31 33%

28 30%

24 26%

20 22%

17 19%

74 80%

19 20%

17 18%

26 28%

27 29%

20 21%

61 66%

22 24%

17 12%

35 25%

-40 -44%

-23 -54%

-6 -20%

-13 -46%

-15 -63%

-7 -35%

-6 -33%

-30 -40%

-11 -57%

-8 -51%

-14 -56%

-15 -55%

-4 -19%

-29 -47%

-9 -39%

-10 -60%

-14 -39%

34 37%

16 38%

14 45%

8 30%

7 27%

11 55%

6 37%

28 38%

6 33%

4 25%

7 25%

10 39%

11 54%

19 31%

13 61%

6 35%

3 3%

1 3%

1 4%

1 8%

3 4%

2 14%

1 3%

2 3%

1 5%

7 8%

48 52%

1 2%

24 56%

4 12%

10 33%

3 10%

16 56%

1 3%

16 66%

1 5%

8 40%

2 11%

8 44%

7 9%

36 49%

1 5%

11 62%

1 5%

9 56%

2 8%

16 64%

M E E T I N G S T R E E T

163

M E E T I N G S T R E E T

1 3%

16 58%

3 13%

6 33%

6 9%

35 57%

R E S E A R C H

9 39%

10 60%

14 10%

31 22%

43 31%

-1 -7%

-9 -28%

-22 -51%

16 46%

8 54%

10 31%

16 37%

1 3%

2 8%

2 6%

16 45%

3 19%

4 27%

5 16%

14 45%

3 6%

25 57%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 27-1 QUESTION 22: When your company uses automation do you do so because of: BANNER 1

BASE=TOTAL SAMPLE PRODUCTIVITY QUALITY OF THE PRODUCT SAFETY OF THE WORKFORCE DON'T USE AUTOMATION, AND AM NOT CONSIDERING IT

140 35%

151 38%

60 43%

202 50%

119 30%

101 25%

87 22%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

90 39%

62 36%

47 28%

44 41%

48 48%

63 31%

45 39%

42 53%

37 40%

33 34%

25 42%

14 31%

34 34%

117 39%

55 35%

23 54%

42 51%

121 53%

39 28%

28 32%

8 17%

18 42%

25 31%

67 29%

25 18%

21 24%

17 19%

DON'T KNOW/UNSURE

8 2%

4 3%

2 2%

4 1%

82 20%

16 34%

30 34%

35 25%

REFUSED

43 11%

47 54%

95 24% 32 8%

48 12%

74 52%

ENHANCING THE WORK ENVIRONMENT

DON'T USE AUTOMATION, BUT AM CONSIDERING IT

PAGE 133

12 9%

1 1%

13 27%

18 37%

17 39%

11 27%

32 39%

26 32%

46 20%

81 47%

52 30%

55 32%

7 14%

14 33%

22 27%

52 23%

43 25%

1 3%

1 1%

6 3%

2 1%

6 7%

6 13%

1 1%

1 2%

4 9%

1 2%

4 5%

18 8%

2 1%

63 38%

29 18%

64 38%

64 59%

35 32%

19 18%

64 63%

49 48%

11 11%

30 18%

23 22%

35 35%

5 3%

2 2%

14 8%

17 10%

2 1%

3 2%

10 9%

85 42%

39 19%

66 33%

39 19%

59 51%

50 55%

46 58%

29 25%

27 34%

22 24%

24 25%

2 2%

1 1%

29 24%

20 10%

12 10%

1 1%

3 1%

1 1%

6 7%

31 34%

51 52%

33 28%

5 5%

6 3%

57 72%

24 27%

6 6%

2 2%

26 27%

31 51%

24 39%

19 42%

10 21%

41 41%

21 22%

161 54%

97 32%

107 27%

BASE=TOTAL SAMPLE PRODUCTIVITY QUALITY OF THE PRODUCT SAFETY OF THE WORKFORCE

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

76 38%

68 39%

202 50%

105 52%

119 30%

61 31%

151 38%

372 93%

86 50%

191 51%

50 29%

111 30%

64 60%

17 53%

39 51%

37 23%

34 32%

7 21%

33 42%

39 36%

101 25%

48 24%

43 25%

91 24%

DON'T USE AUTOMATION, BUT AM CONSIDERING IT

32 8%

22 11%

10 6%

32 9%

4 1%

1 -

DON'T KNOW/UNSURE

REFUSED

95 24%

8 2%

54 27%

2 1%

36 21%

4 2%

2 1%

90 24%

6 2%

3 1%

196 49%

7 32%

66 34%

155 39%

79 51%

21 5%

6 29%

98 54%

29 48%

236 59%

70 47%

134 57%

37 25%

82 35%

7 30%

100 55%

28 22%

60 33%

21 11%

2 1%

7 33% 5 22%

36 28%

41 26%

2 10%

54 30%

12 21%

27 18%

69 29%

2 9%

22 17%

2 1%

1 5%

1 -

3 5%

3 2%

2 1%

2 8%

3 2%

5 3%

2 1%

3 14% -

18 10% 2 1%

3 5% -

11 7% 2 1%

24 10% 2 1%

1 4%

181 45%

55 42%

1 6%

49 25%

102 43%

129 32%

39 6 39 16 46 47 9 42 M E E 29% T I N G21% S T R26% E E T31%R E20% S E A42% R C H33% 25%

16 27%

49 32%

22 6%

45 23%

64 35%

20 33%

150 37%

10 46%

5 24%

79 44%

59 15%

64 41% 44 29%

7 32%

181 45%

71 36%

4 21%

22 23%

14 23%

15 32%

33 33%

68 23%

44 28%

28 26%

6 18%

17 22%

11 11%

2 3%

7 14%

13 13%

20 7%

15 9%

4 4%

5 15%

5 7%

1 2%

1 1%

1 3%

15 25% 1 1%

11 23% 3 6%

24 24%

72 24%

8 3%

3 1%

36 23%

5 3%

3 2%

28 26%

3 2%

BASE=TOTAL SAMPLE PRODUCTIVITY QUALITY OF THE PRODUCT SAFETY OF THE WORKFORCE DON'T USE AUTOMATION, AND AM NOT CONSIDERING IT

92 23%

298 74%

151 38%

44 47%

106 36%

202 50% 119 30% 101 25%

50 54% 46 50%

20 21%

202 50%

151 38%

119 30%

95 24%

101 25%

114 56%

151 100%

87 74%

81 84%

146 49%

202 100%

70 23%

99 49%

79 27%

114 75%

99 83%

87 58%

119 100%

86 90% 75 78%

8 6%

1 1%

95 24%

35 38%

60 20%

86 43%

81 53%

75 63%

95 100%

DON'T KNOW/UNSURE

8 2%

1 1%

7 2%

REFUSED

32 8%

4 1%

4 4% -

27 9%

4 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

36 9%

21 27%

1 1% -

12 34%

172 43%

83 48%

123 31%

65 53%

62 15%

28 46%

208 52%

103 50%

49 12%

233 58%

3 1%

148 37%

94 41%

1 41%

52 35%

19 39%

138 59%

12 23%

85 37%

274 68%

170 42%

169 42%

171 43%

107 39%

62 37%

60 36%

62 36%

140 51% 79 29%

87 51% 47 28%

78 46% 40 23%

86 50%

60 35%

52 42%

21 34%

74 36%

14 28%

39 21%

16 46%

43 25%

26 21%

17 28%

58 28%

17 35%

39 17%

2 59%

52 35%

17 9%

1 3%

14 8%

14 12%

1 1%

17 8%

4 8%

21 9%

11 7%

3 2%

1 1%

52 29% 1 1%

4 11%

4 10% 2 5%

1 3%

53 31%

38 22% 4 3%

45 36%

37 30% 2 2%

12 19%

10 15% 2 3%

59 28%

48 23% 4 2%

3 1%

9 19% 2 4%

1 2%

67 29% 6 2%

46 27%

146 36%

147 37%

28 39%

66 45%

70 48%

69 47%

26 37%

57 38%

68 25%

38 22%

33 19%

5 2%

5 3%

23 8%

3 1%

16 9%

2 1%

164

41 24%

21 29%

45 30%

5 3%

1 1%

2 1%

15 9%

18 11%

2 1%

3 2%

4 5% -

10 6% -

97 66% 62 43%

84 57% 56 38%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

14 29%

19 27%

18 24%

18 25%

90 46%

59 30%

22 46%

10 22%

25 34%

13 19%

21 28%

13 18%

28 38%

15 21%

114 58%

76 39%

83 42%

40 20%

24 16%

29 20%

12 26%

27 38%

27 37%

29 40%

37 19%

62 32%

9 6%

8 5%

5 11%

7 10%

8 11%

5 7%

12 6%

20 10%

1 2%

2 3%

1 -

3 1%

50 34% 1 1% -

31 21%

26 17% 3 2%

3 2%

PAGE 135

147 37%

86 58%

59 40%

12 32%

71 18%

36 51%

75 41%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

101 74 41 44 38 14 28 M E-E 100% T I N G27% S T R24% E E T26%R E22% S E A19% R C H19%

ENHANCING THE WORK ENVIRONMENT

DON'T USE AUTOMATION, BUT AM CONSIDERING IT

7 22%

PAGE 134

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 27-3 QUESTION 22: When your company uses automation do you do so because of: BANNER 3

38 49%

7 32%

14 42%

8 37%

143 39%

DON'T USE AUTOMATION, AND AM NOT CONSIDERING IT ENHANCING THE WORK ENVIRONMENT

21 5%

77 19%

69 44%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 27-2 QUESTION 22: When your company uses automation do you do so because of: BANNER 2

33 8%

47 32% 2 1%

6 14% 2 4%

13 18% 2 3%

11 15% 3 4%

8 11% 2 3%

1 1%

63 32% 1 -

32 17% 7 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 27-4 QUESTION 22: When your company uses automation do you do so because of: BANNER 4

BASE=TOTAL SAMPLE PRODUCTIVITY QUALITY OF THE PRODUCT SAFETY OF THE WORKFORCE DON'T USE AUTOMATION, AND AM NOT CONSIDERING IT ENHANCING THE WORK ENVIRONMENT

DON'T USE AUTOMATION, BUT AM CONSIDERING IT DON'T KNOW/UNSURE REFUSED

PAGE 136

87 22%

285 71%

103 26%

43 11%

144 36%

151 38%

36 41%

115 40%

35 34%

22 53%

57 40%

101 25%

17 19%

68 24%

30 29%

4 10%

37 26%

22 26%

8 19%

1 12%

37 30%

19 21%

37 25%

2 18%

43 20%

27 18%

25 19%

32 8%

4 5%

19 7%

10 10%

3 6%

9 6%

4 5%

7 17%

9 8%

10 11%

9 6%

1 12%

12 6%

11 7%

8 6%

2 1%

2 2%

202 50%

119 30% 95 24% 8 2%

4 1%

48 55%

28 32%

25 28% 3 3%

1 1%

157 55% 92 32%

74 26% 3 1%

41 40%

25 24%

19 19% 4 4%

28 67%

19 45%

13 31% -

1 2%

83 21%

42 11%

7 2%

122 31%

5 74%

39 32%

77 54%

41 50%

22 53%

5 74%

53 37%

15 17%

12 28%

4 59%

41 28% -

30 36%

17 21% 3 4%

1 1%

17 40%

9 22% -

1 16% -

93 23%

149 37%

34 36%

63 42%

65 53%

50 54%

31 25%

27 29%

28 23% 1 1%

1 1%

19 21% 4 4%

10 2%

214 54%

151 38%

128 32%

6 60%

95 45%

73 48%

58 45%

70 47%

6 61%

51 34%

4 42%

40 27% 2 1%

2 1%

4 42% -

132 61%

79 37%

64 30% -

1 -

96 63%

61 40%

55 36% 2 1% -

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

39 34%

33 42%

16 36%

81 63%

81 65%

68 64%

110 57%

54 45%

53 46%

55 43%

53 42%

42 40%

70 37%

31 26%

26 23%

26 33%

13 28%

27 22%

27 24%

27 35%

12 25%

45 35% 1 1% -

66 53%

19 15% 50 40% 5 4%

2 1% -

51 48%

16 15% 34 32% 10 9%

1 1%

86 45%

36 19% 53 28%

42 35%

35 29%

30 27%

15 8%

12 10%

2 1%

1 1%

4 3%

4 4%

44 57%

19 24% 5 6%

2 2% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 27-5 QUESTION 22: When your company uses automation do you do so because of: BANNER 5

BASE=TOTAL SAMPLE PRODUCTIVITY QUALITY OF THE PRODUCT SAFETY OF THE WORKFORCE DON'T USE AUTOMATION, AND AM NOT CONSIDERING IT ENHANCING THE WORK ENVIRONMENT

DON'T USE AUTOMATION, BUT AM CONSIDERING IT DON'T KNOW/UNSURE REFUSED

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM

A MANAGER OR SUPERVISOR

14 31% 3 7%

1 2% -

PAGE 137

212 53%

145 36%

108 27%

151 38%

75 35%

48 33%

51 47%

202 50% 119 30%

108 51% 62 29%

81 55% 40 27%

92 23%

79 20%

39 36%

29 32%

25 32%

23 32%

45 49%

28 35%

20 19%

20 22%

23 29%

32 8%

18 8%

20 14%

9 9%

6 6%

8 10%

8 2%

4 1%

5 2%

3 1%

1 1%

122 38%

38 53%

31 21% 32 22%

26 37%

33 42%

54 26% 44 21%

319 80%

47 51%

101 25% 95 24%

71 18%

64 60%

32 30% 2 2%

30 33% 1 1%

1 1%

19 23% 3 4%

81 20%

62 16%

82 20%

154 39%

87 22%

171 54%

30 38%

28 45%

47 57%

79 51%

43 49%

98 31%

21 26%

17 27%

35 43%

39 25%

24 28%

29 35%

28 45%

36 44%

52 34%

30 35%

320 80%

114 52%

72 23%

28 65%

14 26%

38 38%

21 42%

29 29%

62 28%

13 29%

27 27%

15 29%

27 27%

50 23%

109 34%

28 34%

30 19%

19 22%

68 21%

1 1%

8 2%

1 1%

3 3%

2 1%

4 4%

8 3%

4 1%

7 4%

3 2%

4 5%

1 1%

218 42%

52 52%

17 27%

8 10%

100 19%

28 56%

21 26%

10 16%

51 10%

48 48%

74 23%

5 6%

100 19%

26 47%

20 29%

27 9%

54 10%

29 68%

19 70 31 15 13 43 24 95 M27% E E T22% I N G38% S T R24% E E T16%R E28% S E A28% R C H30% 5 7%

43 11%

144 45%

32 10%

4 1%

24 56%

17 31%

40 40%

2 5%

21 39%

29 29%

3 6%

9 9%

13 24% 2 4% -

1 1%

21 41% 13 26% 5 9%

1 2%

41 41% 22 22% 6 6%

1 1% -

84 38% 45 21% 18 8%

6 3%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 28-1 Summary of Roles: % Significant Impact BANNER 1

24 51%

PAGE 138

140 35%

171 43%

65 46%

274 68%

170 42%

169 42%

91 65%

64 46%

60 42%

87 22%

65 74%

31 35%

27 31%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

34 41%

96 42%

75 43%

86 52%

47 43%

29 29%

34 71%

30 70%

54 66%

25 52%

11 27%

38 47%

22 47%

30 63%

19 44%

14 33%

38 46%

156 68%

95 42%

118 69%

75 43%

135 81%

83 50%

76 70%

50 46%

47 46%

29 29%

202 51%

117 29%

106 52%

46 39%

161 80%

107 53%

79 20%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

128 43%

84 53%

131 44%

75 48%

38 48%

64 70%

57 59%

37 61%

36 78%

77 78%

196 65%

43 36%

20 25%

39 43%

37 38%

25 42%

21 45%

39 39%

131 44%

19 24%

87 82 89 48 24 108 45 15 M 38% E E T 48% I N G 54% S T R 44% E E T 23% R E 53% S E A 39% R C H 19%

165

91 23%

75 64%

39 42%

40 43%

45 47%

37 38%

24 41% 21 36%

20 43% 20 43%

42 42% 38 38%

122 78%

74 47%

33 8%

77 19%

34 32%

12 37%

28 36%

43 40%

9 29%

31 40%

75 71%

45 42%

21 63%

16 48%

42 54%

27 34%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 28-2 Summary of Roles: % Significant Impact BANNER 2

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM

A MANAGER OR SUPERVISOR

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

274 68%

134 67%

121 71%

170 42%

91 45%

72 42%

171 43%

169 42%

96 48%

90 45%

63 37%

70 41%

372 93%

255 68%

159 43%

163 44%

160 43%

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM A MANAGER OR SUPERVISOR

196 49%

155 39%

84 43%

64 41%

6 31%

66 43%

7 35%

15 70%

144 74%

5 25%

96 49%

9 42%

7 34%

83 42%

96 62%

57 37%

21 5%

151 38%

119 30%

95 24%

101 25%

171 43%

35 37%

131 44%

86 43%

62 41%

46 39%

41 43%

38 38%

169 42%

36 39%

76 42%

25 43%

65 43%

75 41%

28 47%

63 42%

76 42%

202 50%

170 42%

150 37%

5 22%

298 74%

53 58%

59 15%

128 70%

92 23%

274 68%

181 45%

14 67%

400 100%

214 72%

130 44%

129 43%

140 69%

87 43%

78 39%

42 72%

30 51%

236 59%

22 6%

129 32%

97 41%

11 48%

57 44%

99 42%

11 48%

54 41%

99 66%

159 67%

62 41%

103 43%

14 64%

8 35%

181 45%

36 9%

172 43%

123 31%

77 43%

18 49%

71 41%

46 38%

24 39%

79 44%

15 42%

69 40%

53 43%

25 40%

91 70%

127 70%

53 41%

83 46%

29 81%

110 64%

14 38%

68 39%

85 69% 51 41%

62 15%

39 63% 27 44%

208 52%

49 12%

233 58%

98 47%

26 53%

105 45%

90 43%

27 54%

91 39%

145 70% 91 44%

36 74%

151 65%

25 52%

101 43%

3 1%

148 37%

3 100%

56 38%

3 100%

107 71%

62 41%

60 40%

79 67%

47 40%

40 33%

68 72%

38 40%

33 34%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

137 50%

108 64%

112 67%

171 100%

169 100%

112 66%

74 73%

274 100%

41 40%

142 52%

44 44%

139 51%

142 84%

170 100%

131 77%

139 82%

131 78%

137 80%

108 64%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

19 27%

42 28%

41 28%

13 18%

16 23%

87 59%

23 16%

92 63%

31 21%

109 73%

59 40%

68 46%

PAGE 140

147 37%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

13 27%

17 24%

15 20%

44 30%

14 29%

91 62%

45 31%

15 32%

40 56%

12 17%

38 51%

6 8% -

73 18%

196 49%

71 36%

100 51%

41 56%

16 21%

12 16%

129 66%

71 36%

68 35%

144 73%

99 50%

98 50%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 141

M E E T I N G S T R E E T R E S E A R C H NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER SHORTAGE GREATEST EMPLOYEE NEED WORKER SHORTAGE FUTURE CHALLENGES ================= ============================== ======================= =============================== ============================== ATTUNFAV TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK RACT BIZ VERY TOTAL NOT AUTOM CURR OUT- PROC NO TECH/ PROD INCR TRAIN -SIVE TECH WORK- HLTH RISING CLIM LOWER TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL FORCE COSTS COSTS -ATE SALES ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----- ----- ----- ------ ----- ----400 100%

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

171 43%

50 57%

130 46%

35 34%

22 52%

53 37%

43 52%

169 42%

47 54%

126 44%

40 39%

18 43%

62 43%

39 47%

274 68% 170 42%

63 72%

56 65%

197 69% 122 43%

69 67%

43 42%

31 74%

20 48%

90 62%

62 43%

61 73%

39 47%

7 2%

122 31%

93 23%

149 37%

17 40%

3 39%

46 37%

50 54%

9 21%

5 71%

51 42%

41 44%

27 64%

8 20%

6 86%

4 57%

81 66%

51 42%

59 64%

48 52%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

62 42%

3 30%

96 45%

61 40%

52 40%

51 41%

44 41%

66 44%

3 30%

84 39%

57 38%

50 39%

44 35%

36 34%

109 73% 60 40%

6 62%

2 21%

138 64% 88 41%

99 65%

60 40%

86 67%

51 39%

83 67%

50 40%

191 48%

120 30%

114 28%

85 44%

53 44%

43 38%

74 39%

54 45%

50 44%

69 64%

124 65%

41 39%

77 40%

88 73%

51 42%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 28-5 Summary of Roles: % Significant Impact BANNER 5

Table 28-4 Summary of Roles: % Significant Impact BANNER 4

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 28-3 Summary of Roles: % Significant Impact BANNER 3

21 5%

PAGE 139

212 53%

145 36%

108 27%

171 43%

95 45%

67 46%

50 46%

274 68% 170 42%

169 42%

149 70%

90 43% 88 41%

96 66%

70 48% 65 44%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

10 24%

24 45%

37 37%

21 42%

40 40%

76 71%

60 66%

55 69%

46 65%

221 69%

53 66%

40 64%

59 72%

109 71%

56 64%

235 74%

18 42%

47 43%

35 38%

33 41%

26 36%

140 44%

30 37%

30 48%

32 39%

61 40%

40 46%

150 47%

10 24%

45 42%

35 39% 37 40%

31 39% 32 41%

25 35% 27 38%

139 44% 134 42%

32 39%

35 43%

29 47%

28 45%

31 38%

35 43%

M E E T I N G S T R E E T

166

64 42%

64 41%

40 47%

36 41%

151 47% 153 48%

R E S E A R C H

9 20%

46 12%

79 69%

48 62%

37 81%

50 44%

31 40%

24 51%

35 46%

31 40%

22 48%

19 41%

PAGE 142

M E E TGENDER I N G S T R E E T AGE R E S E A R C EMPLOYEES H GROWTH DRIVERS COMBINED INITIATIVE REGIONS ==================================== =========== ======================= =========== ============================= NORTH SW/ DEV-LAND WEST NEW MAX NEW ELIM STRTGY ELOP UNDER IF /NW SOUTH CENT TOTAL CUST PROD PROD WASTE PLAN MGRS MEN WOMEN 18-44 45-54 55-64 65+ 50 101+ INIT MN MN INIT NONE ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----400 100%

77 19%

36 67%

25 46% 27 50%

73 73%

49 49% 52 52%

36 71%

14 28% 17 33%

218 42%

65 65%

147 68%

40 40%

92 42%

40 40%

93 43%

84 39%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 29-1 Summary of Roles: % Total Impact BANNER 1

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM A MANAGER OR SUPERVISOR

140 35%

120 86%

318 80%

114 81%

315 79%

106 75%

317 79%

109 78%

87 22%

72 83%

66 76%

66 75%

67 77%

48 12%

43 89%

34 71%

40 83%

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM A MANAGER OR SUPERVISOR

400 100% 345 86%

318 80%

317 79% 315 79%

201 50%

175 87%

161 80%

170 85% 172 86%

171 43%

146 85%

140 82%

130 76% 125 73%

372 93%

322 86%

300 81%

298 80%

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM A MANAGER OR SUPERVISOR

37 87%

35 82%

37 87%

82 20%

72 89%

228 57%

192 84%

172 43%

153 89%

166 42%

146 88%

67 83%

180 79%

138 80%

129 77%

65 80%

173 76%

142 82%

122 73%

68 83%

175 77%

142 83%

119 72%

108 27%

101 25%

96 89%

82 81%

85 79%

89 82%

174 86%

84 83%

159 78%

84 83%

147 73%

87 86%

88 82%

202 51%

147 73%

117 29%

79 20%

102 87%

69 87%

91 23%

78 86%

97 24%

78 81%

92 93%

63 80%

74 81%

80 83%

48 79%

38 81%

76 76%

98 84%

68 86%

74 82%

79 81%

40 67%

39 85%

71 72%

100 86%

69 86%

73 80%

79 81%

48 80%

40 86%

71 72%

299 75%

252 84%

241 81%

245 82%

242 81%

157 39%

107 27%

33 8%

137 87%

95 89%

28 86%

121 77%

81 76%

30 90%

122 78%

83 78%

115 73%

86 81%

21 5%

18 87%

15 72%

196 49%

171 87%

153 78%

162 83%

161 82%

155 39%

21 5%

135 87%

16 75%

122 79%

10 47%

129 84% 120 78%

13 64%

12 55%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

318 80%

73 79%

238 80%

170 84%

131 87%

102 86%

87 92%

68 67%

77 83%

78 84%

75 81%

260 87%

232 78%

234 79%

176 87%

173 86%

175 87%

135 89%

128 85% 130 86%

60 78%

29 87%

65 84%

87 22%

78 89%

317 79%

78 90%

318 80% 315 79%

78 89%

75 86%

285 71%

103 26%

247 87%

65 63%

254 89% 243 85%

242 85%

43 11%

83 80%

37 86%

68 66%

34 80%

68 66%

36 85%

33 77%

66 85%

PAGE 144

181 45%

59 15%

159 88%

52 88%

146 81%

48 81%

146 80% 143 79%

47 79%

43 72%

150 37%

129 86%

119 80%

124 83%

236 59%

22 6%

206 88%

18 80%

192 82%

13 60%

192 81% 195 83%

17 79%

15 69%

129 32%

110 85% 99 77%

101 78%

95 74%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

157 86%

30 86%

149 87%

106 86%

57 92%

177 85%

42 85%

146 81%

25 69%

138 81%

96 78%

50 80%

167 81%

40 82%

147 81% 153 85%

24 68%

141 82%

23 66%

130 76%

100 81%

46 75% 45 73%

169 81%

166 80%

233 58%

198 85%

3 1%

3 100%

106 89%

104 87% 102 86%

89 93%

83 86% 83 87%

274 68%

170 42%

169 42%

171 43%

228 83%

154 90%

157 93%

171 100%

169 100%

154 90%

87 86%

274 100%

68 68%

229 84%

68 68%

231 84%

155 91%

170 100% 162 95%

155 92%

147 37%

146 36%

147 37%

61 86%

124 84%

122 84%

146 100%

71 100%

150 88%

60 85% 56 78%

134 91%

147 100% 130 88%

131 90%

137 94%

144 36%

83 21%

42 11%

7 2%

122 31%

6 84%

92 75%

126 87%

71 85%

37 87%

6 86%

122 85%

65 78%

37 88%

6 87%

116 80% 120 83%

68 82%

67 81%

36 85%

35 82%

7 100%

93 23%

104 85%

81 88%

98 80%

80 87%

98 80%

84 91%

79 86%

M E E T I N G S T R E E T

167

149 37%

10 2%

132 88%

7 72%

117 79%

6 61%

122 82% 116 78%

5 52%

7 71%

214 54% 188 88%

188 88%

182 85% 182 85%

R E S E A R C H

151 38% 133 88%

128 85%

131 86% 129 85%

133 90%

197 85%

3 100%

110 74%

37 76%

199 86%

3 100%

105 71%

200 86%

3 100%

107 72%

PAGE 145

71 18%

157 92%

148 37%

41 84%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

147 100%

27 57%

37 52%

35 47%

125 85%

28 59%

21 29%

133 90%

127 86%

28 59%

50 70%

52 71%

24 32%

73 18%

196 49%

153 78%

161 82%

50 69%

39 54%

35 48%

173 88%

160 82%

158 81%

171 87%

153 78%

151 77%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

345 86%

66 85%

29 89%

PAGE 146

NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER WORKER SHORTAGE FUTURE CHALLENGES M E ESHORTAGE T I N G S TGREATEST R E E T EMPLOYEE R E S ENEED A R C H ================= ============================== ======================= =============================== ============================== ATTUNFAV TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK RACT BIZ VERY TOTAL NOT AUTOM CURR OUT- PROC NO TECH/ PROD INCR TRAIN -SIVE TECH WORK- HLTH RISING CLIM LOWER TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL FORCE COSTS COSTS -ATE SALES ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----- ----- ----- ------ ----- ----400 100%

77 19%

92 23%

315 79%

43 93%

100 25%

400 100%

317 79%

52 87%

46 12%

95 81%

LEADERSHIP SIGNIF IMPACT SOME IMPACT DEVLP PROG USING AUTOMATION M E E T I N G S OF T RDEPARTURE E E T R E S E A R OF C HDEPARTURE =========== ============================== ======================= ======================= PRODNOT SKILL SKILL UCTIV QUAL ENHAN CONS CEO/ MGMT MGR/ -ED CEO/ MGMT MGR/ -ED TOTAL YES NO -ITY -ITY SAFETY -CING AUTO OWNER TEAM SPV WORK OWNER TEAM SPV WORK ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----345 86%

60 15%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 29-4 Summary of Roles: % Total Impact BANNER 4

38 88%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- -----

Table 29-3 Summary of Roles: % Total Impact BANNER 3

43 11%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 29-2 Summary of Roles: % Total Impact BANNER 2

PAGE 143

128 32% 115 90%

108 84%

110 86% 110 86%

125 31%

106 27%

102 82%

87 82%

111 89% 107 86%

105 84%

92 86% 92 86%

90 84%

191 48%

120 30%

114 28%

77 19%

46 12%

160 84%

100 83%

85 75%

65 84%

38 82%

170 89% 163 86%

161 84%

106 88% 100 83%

98 82%

97 86% 86 76%

87 76%

64 83%

63 81%

59 77%

41 88%

36 78%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 29-5 Summary of Roles: % Total Impact BANNER 5

BASE=TOTAL SAMPLE THE CEO/OWNER A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM A MANAGER OR SUPERVISOR

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

318 80%

168 79%

116 80%

88 82%

73 80%

66 83%

57 80%

259 81%

59 73%

345 86% 317 79%

315 79%

185 87% 163 77%

160 75%

129 88% 124 86%

121 83%

93 86%

89 83%

90 83%

BASE=TOTAL SAMPLE A MANAGER OR SUPERVISOR A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM THE CEO/OWNER

400 100%

140 35%

73 18%

22 16%

74 18%

72 18%

47 12%

30 21%

27 19%

17 12%

87 22%

18 21%

BASE=TOTAL SAMPLE A MANAGER OR SUPERVISOR A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM THE CEO/OWNER

75 82%

67 84%

75 82%

66 83%

20 23%

19 22%

14 16%

48 12%

43 11%

14 29%

4 9%

8 17%

5 11%

60 85%

59 83%

58 82%

276 86% 250 78%

249 78%

62 16%

82 20%

154 39%

68 83%

123 80%

69 85%

53 85%

76 93%

67 83%

52 83%

68 83%

66 81%

51 82% 51 82%

69 85%

87 22%

320 80%

66 76%

254 79%

137 89%

68 79%

123 80%

63 73%

123 80%

60 69%

43 11%

54 10%

100 19%

51 10%

100 19%

276 86%

36 83%

48 89%

93 93%

45 88%

89 89%

248 78%

37 87%

45 84%

87 87%

43 85%

84 84%

246 77%

32 75%

38 89%

39 73%

86 86%

44 81%

81 81%

44 87% 44 87%

80 80% 82 82%

218 42%

182 84%

172 79%

166 76%

164 75%

PAGE 148

4 9%

6 14%

3 6%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

73 18%

38 19%

27 16%

66 18%

74 18%

72 18%

47 12%

28 14%

27 14%

25 12%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

13 16%

42 18%

31 18%

32 19%

20 19%

17 17%

39 19%

21 18%

14 17%

12 15%

8 10%

48 21%

46 20%

31 14%

26 15%

16 9%

39 23%

40 24%

16 10%

16 15%

17 17%

16 15%

14 14%

8 8%

19 19%

48 24%

49 24%

24 12%

79 20%

18 15%

8 10%

13 16%

15 13%

8 10%

14 12%

9 11%

91 23%

97 24%

38 22%

36 21%

20 12%

21 5%

66 18%

5 23%

64 17%

5 23%

44 12%

5 23%

3 13%

196 49%

155 39%

39 20%

22 14%

31 16%

30 15% 21 11%

202 50%

151 38%

119 30%

73 18%

20 21%

51 17%

28 14%

18 12%

15 13%

47 12%

15 16%

157 39%

107 27%

32 21%

17 11%

25 25%

49 16%

37 24%

17 19%

12 13%

10 17%

7 14%

25 25%

47 16%

31 20%

16 17%

13 14%

14 14%

16 16%

11 18%

5 8%

9 19%

3 7%

21 22%

5 5%

51 17%

42 14%

33 8%

77 19%

19 18%

4 11%

15 19%

8 8%

4 14%

11 14%

15 14%

20 19%

54 18%

56 19%

31 11%

21 10%

25 12%

22 11%

18 12%

19 13%

14 9%

4 13%

3 10%

11 14%

10 12%

PAGE 149

29 19%

29 19% 18 12%

21 5%

181 45%

59 15%

150 37%

236 59%

5 26%

34 19%

9 15%

28 19%

40 17%

8 39%

9 43% 4 19%

33 18%

31 17% 21 11%

13 22%

8 14% 4 7%

25 17%

28 19% 19 13%

22 6%

129 32%

181 45%

2 9%

29 22%

33 18%

38 16%

5 22%

39 17%

6 27%

26 11%

2 11%

30 23%

26 20% 17 13%

26 14%

31 17% 21 12%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

7 21%

30 17%

21 17%

14 23%

34 16%

8 16%

33 14%

3 9%

20 12%

15 12%

3 5%

27 13%

7 14%

9 26%

8 22%

37 22%

31 18%

20 16%

24 20%

15 25%

10 16%

36 17%

35 17%

11 22%

9 18%

30 13%

32 14%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

298 74%

14 15%

299 75%

6 13%

92 23%

72 18%

100 25%

18 30%

MN BUSINESS CAPITAL STATUS ECONOMYMIN PROFITABILITY EXPENDITURES QUO EMPLOYEE WAGES E 2019 E T I N G SCLIMATE T R E E T R GROSS E S E REVENUES A R C H ================= ================== ================= ================= ================= ====== =================

400 100%

17 18%

46 12%

13 14%

13 11%

13 11% 10 9%

95 24%

101 25%

274 68%

170 42%

169 42%

8 8%

29 29%

41 15%

16 9%

12 7%

15 9%

14 8%

11 11%

13 14% 6 7%

27 27%

12 12%

38 14%

40 15%

6 4%

M E E T I N G S T R E E T

168

12 7%

171 43%

71 18%

147 37%

146 36%

10 14%

24 16%

23 16%

13 9%

14 10%

15 9%

17 10%

13 7%

15 21%

10 15%

18 12%

R E S E A R C H

9 6%

3 1%

148 37%

36 24%

40 27%

37 25% 13 9%

PAGE 150

60 15%

16 17%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 30-3 Summary of Roles: % Total Not Impact BANNER 3

70 89%

Table 30-2 Summary of Roles: % Total Not Impact BANNER 2

82 90%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 30-1 Summary of Roles: % Total Not Impact BANNER 1

PAGE 147

147 37%

20 14%

14 10%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

20 41%

33 45%

19 39%

19 40%

47 100%

74 18%

73 18%

196 49%

37 50%

73 100%

40 21%

30 15%

19 25%

20 27%

50 70%

74 100%

72 100%

50 68%

19 26%

37 51%

33 45%

34 18%

32 16%

22 11%

39 20%

38 19%

21 11%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 30-4 Summary of Roles: % Total Not Impact BANNER 4

BASE=TOTAL SAMPLE A MANAGER OR SUPERVISOR A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM THE CEO/OWNER

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

73 18%

8 10%

34 12%

36 35%

6 15%

26 18%

11 14%

6 15%

1 16%

30 24%

7 8%

25 17%

47 12%

7 8%

10 12%

5 11%

74 18%

72 18%

10 12% 7 8%

36 13%

37 13%

28 10%

34 33%

33 32%

18 17%

BASE=TOTAL SAMPLE A MANAGER OR SUPERVISOR A SKILLED WORKER A MEMBER OF YOUR MANAGEMENT TEAM THE CEO/OWNER

10 23%

8 20%

6 14%

21 14%

20 14%

17 12%

13 16%

15 18%

7 15% 4 9%

1 13%

1 14%

23 19%

23 18%

19 15%

11 12%

10 11%

9 9%

29 19%

30 20%

13 9%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

5 48%

25 12%

21 14%

21 16%

21 17%

16 15%

29 15%

19 16%

3 29%

4 39%

3 28%

28 13%

30 14%

23 11%

20 13%

19 13%

16 11%

17 14%

18 14%

13 10%

17 14%

15 12% 11 9%

13 12%

11 11% 13 12%

28 14%

25 13% 18 9%

19 15%

19 16% 13 11%

114 28%

22 20%

77 19%

16 21%

46 12%

8 18%

25 22%

9 12%

9 18%

14 12%

12 16%

4 10%

25 22%

12 16%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 30-5 Summary of Roles: % Total Not Impact BANNER 5

PAGE 151

8 18%

PAGE 152

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

73 18%

36 17%

25 17%

19 17%

16 18%

12 16%

13 18%

51 16%

22 27%

9 14%

12 15%

29 19%

18 20%

60 19%

9 21%

15 27%

13 13%

5 9%

17 17%

40 18%

38 12%

6 14%

74 18%

72 18%

47 12%

42 20%

40 19%

22 10%

19 13%

17 12%

15 10%

15 14%

17 15%

13 12%

13 15% 13 14%

7 7%

12 16% 12 16%

9 11%

11 16% 10 15%

10 14%

61 19%

60 19%

35 11%

13 16% 12 15%

12 15%

10 16% 9 14%

8 13%

10 12% 12 15%

6 7%

31 20%

29 19%

17 11%

20 23% 17 20% 12 14%

66 21% 64 20%

3 7%

4 10%

9 16% 7 13% 5 9%

18 18%

12 12% 7 7%

5 9%

6 12% 4 7%

16 16%

14 14%

10 10%

47 22%

46 21%

31 14%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 153 Table 31-1 QUESTION 23A: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have say impact, some impact, not much of an impact or no impact at all? M Eon E your T I Nfirm? G S T Would R E E you T R E a S significant E A R C H The CEO/owner BANNER 1

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT

SOME IMPACT NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

140 35%

345 86%

120 86%

298 74%

103 74%

87 22%

58 66%

72 83%

48 12%

38 79%

38 88%

34 71%

30 70%

17 12%

14 16%

5 11%

71 18%

29 21%

7 9%

25 6%

10 7%

5 1%

2 2%

22 6% 3 1%

91 65% 7 5%

1 1%

35 81%

43 89%

47 12%

274 68%

43 11%

82 20%

64 78%

72 89%

3 6%

8 10%

9 18%

8 18%

18 23%

8 9%

4 8%

2 4%

2 2%

1 1%

1 2%

1 1%

65 74% 6 7% -

1 3% -

1 2%

2 4%

54 66% 7 8% -

228 57%

161 71%

172 43%

137 79%

192 84%

153 89%

156 68%

118 69%

31 14%

36 16%

16 9%

35 20%

166 42%

130 78%

108 27%

88 81%

146 88%

96 89%

135 81%

76 70%

16 10%

11 7%

101 25%

63 62%

202 51%

150 74%

117 29%

88 75%

1 -

2 1%

1 1%

3 2%

40 86%

100 25%

87 87%

299 75%

210 70%

157 39%

107 27%

120 77%

86 81%

78 86%

78 81%

52 87%

43 93%

92 93%

252 84%

137 87%

95 89%

47 46%

161 80%

75 64%

38 48%

64 70%

57 59%

37 61%

36 78%

77 78%

196 65%

122 78%

75 71%

35 35%

169

47 79%

46 12%

69 87%

20 19%

M E E T I N G S T R E E T

63 64%

60 15%

102 87%

19 19%

2 2%

65 72%

97 24%

174 86%

8 8%

1 1%

60 75%

91 23%

82 81%

24 12% 13 6%

14 12%

27 23%

13 9 7 4 10 11 6 6% 5% 4% 3% 10% 5% 5% M E18 E T I 7 N G S 9 T R E 5 E T R E S13 E A R 8 C H 9 8% 4% 5% 4% 9% 7% 7% 4 2%

79 20%

1 1%

3 1%

1 1%

R E S E A R C H

9 11%

13 14%

16 16%

5 8%

3 7%

5 5%

42 14%

17 11%

8 23%

24 30%

1 3%

7 8%

15 25%

7 16%

15 15%

57 19%

15 10%

19 18%

4 4%

8 9%

8 8%

1 2%

3 5%

4 4%

21 7%

10 7%

4 4%

2 2%

2 3%

1 1%

4 1%

2 1%

1 1%

4 6% 2 3%

1 2% -

1 1% 1 1%

21 7% 1 -

6 4% 2 1%

66 85%

55 71%

11 14%

21 22% 8 8%

28 86%

24 73%

4 14%

14 16% 5 5%

77 19%

8 8%

31 39% 6 7%

33 8%

21 63%

5 4%

3 11%

1 1%

3 2%

42 54% 4 5% -

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 154 Table 31-2 QUESTION 23A: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all?

The CEO/owner BANNER 2

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT

SOME IMPACT NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 298 74%

201 50%

150 75%

171 43%

127 74%

372 93%

277 74%

21 5%

15 74%

150 76%

155 39%

116 75%

21 5%

12 56%

181 45%

138 76%

59 15%

48 81%

150 37%

109 73%

236 59%

180 77%

22 6%

129 32%

15 70%

93 72%

181 45%

136 75%

36 9%

27 77%

172 43%

123 31%

62 15%

129 75%

91 74%

54 87%

208 52%

49 12%

150 72%

233 58%

3 1%

148 37%

35 70%

166 71%

3 100%

119 81%

7 14%

32 14%

13 9%

345 86%

175 87%

146 85%

322 86%

18 87%

171 87%

135 87%

16 75%

159 88%

52 88%

129 86%

206 88%

18 80%

110 85%

157 86%

30 86%

149 87%

106 86%

57 92%

177 85%

42 85%

274 68%

134 67%

121 71%

255 68%

15 70%

144 74%

96 62%

14 67%

128 70%

42 72%

99 66%

159 67%

14 64%

91 70%

127 70%

29 81%

110 64%

85 69%

39 63%

145 70%

36 74%

151 65%

3 100%

109 73%

22 6%

13 6%

8 4%

20 5%

2 9%

10 5%

9 6%

2 10%

12 7%

3 6%

6 4%

14 6%

7 5%

11 6%

2 5%

10 6%

2 5%

16 7%

6 4%

1 1%

1 3%

1 -

47 12%

71 18%

25 12%

41 21%

20 12%

25 15%

44 12%

67 18%

3 13%

4 17%

21 11%

26 14%

25 6%

12 6%

12 7%

24 7%

1 4%

11 5%

5 1%

4 2%

4 1%

3 2%

3 1%

1 1%

2 1%

3 1%

1 1%

18 12%

39 25% 9 6%

1 1%

4 19%

2 9%

2 10%

1 5%

21 11%

31 17% 8 5%

2 1%

4 7%

19 13%

10 16%

29 20%

1 1%

2 3%

1 2%

26 11%

2 11%

17 13%

21 12%

47 20%

4 17%

19 14%

14 9%

12 5%

1 3%

10 8%

10 6%

2 1%

1 4%

2 2%

4 2%

2 1%

1 -

2 8% 1 5%

1 -

30 16%

3 9% 2 5%

2 4%

1 3%

20 12%

15 12%

3 5%

27 13%

198 85%

40 23%

22 17%

18 29%

32 15%

5 11%

10 6%

8 7%

1 1%

14 7%

5 10%

16 7%

2 1%

3 1%

2 1%

1 -

7 6%

2 1%

3 4%

2 3%

13 6%

3 1%

1 1%

47 20%

3 100%

133 90%

24 16% 7 5%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 155 Table 31-3 QUESTION 23A: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? The CEO/owner BANNER 3

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

345 86%

77 83%

260 87%

176 87%

135 89%

106 89%

274 68%

53 58%

140 69%

107 71%

79 67%

68 72%

12 6%

6 4%

7 6%

3 3%

298 74% 47 12%

71 18%

22 6%

25 6%

3 1%

5 1%

62 67% 15 16%

23 25%

8 8%

7 8%

1 1%

228 77% 31 11%

214 72%

46 15%

13 4%

18 6%

3 1%

4 1%

155 77% 22 11%

36 18%

10 5%

2 1%

121 80%

14 9%

28 18%

7 5%

2 1%

95 80%

10 9%

26 22%

4 3%

3 2%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

83 75 274 140 141 144 71 121 100% 100% M86% E E T74% I N G S T R82% E E T84%R E84% S E A R C H82% 89 87 274 155 155 157 71 134 93% 86% 100% 91% 92% 92% 100% 91% 6 7%

12 12%

21 22%

14 13%

4 4%

15 9%

14 8%

13 7%

19 11%

71 100%

4 2%

74 73%

274 100%

142 84%

139 82%

137 80%

3 3%

8 5%

6 4%

8 5%

9 8%

1 1%

13 7%

16 10%

7 4%

M E E T I N G S T R E E T

170

8 5%

2 1% -

13 9%

87 59%

7 5%

48 32%

R E S E A R C H

6 4%

1 -

146 36%

147 37%

131 90%

133 90%

92 63%

91 62%

117 81%

14 10%

39 27%

8 5%

6 4%

1 -

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

50 70%

52 71%

50 69%

173 88%

171 87%

119 -47 81% -100% 14 10%

47 100%

42 28%

6 4%

8 6%

22 47%

32 44%

19 26%

40 56%

10 14%

6 9%

25 53%

12 17%

3 4%

34 46%

19 25%

38 51%

15 20%

7 10%

11 16%

3 4%

31 42%

20 27%

41 56%

10 14%

7 10%

13 17%

3 4%

151 77%

22 11%

129 66%

43 22%

11 5%

11 6%

1 1%

149 76%

21 11%

144 73%

27 14%

9 5%

12 6%

3 1%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 156 Table 31-4 QUESTION 23A: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all?

The CEO/owner BANNER 4

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

78 89%

274 68%

63 72%

47 12%

SOME IMPACT NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

71 81%

345 86%

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT

87 22%

285 71%

226 79%

254 89%

103 26%

65 63%

83 80%

43 11%

31 73%

37 86%

144 36%

109 76%

126 87%

83 21%

61 73%

71 85%

42 11%

32 76%

37 87%

7 2%

5 72%

6 86%

122 31%

85 70%

132 88%

81 66%

59 64%

109 73%

9 7%

4 5%

6 4%

18 17%

6 14%

17 12%

10 12%

5 11%

71 18%

15 17%

57 20%

14 13%

5 13%

36 25%

10 12%

9 22%

25 6%

4 4%

11 4%

12 12%

1 2%

10 7%

4 4%

3 7%

1 14%

10 8%

3 1%

3 3%

2 1%

22 6%

3 1%

5 1%

4 4%

1 1%

17 6%

2 1%

5 5% -

31 74%

5 11% -

90 62% 6 4% -

61 73% 7 8%

1 1%

2 2%

27 64% 2 4%

1 2%

1 14%

19 15%

23 18%

6 86% -

149 37%

119 80%

81 88%

28 10%

69 67%

72 78%

104 85%

7 8%

197 69%

93 23%

9 9%

22 24%

4 44%

7 72%

214 54%

165 77%

188 88%

151 38%

117 78%

133 88%

128 32%

102 79%

12 16%

4 10%

48 62%

37 81%

6 5%

5 4%

4 4%

10 5%

5 4%

7 6%

9 11%

2 3%

1 1%

27 22%

23 22%

18 9%

46 24%

7 5%

7 6%

6 4%

9 8%

8 4%

2 1%

3 2%

2 1%

3 1%

14 12%

79 69%

13 12%

12 5% 1 -

36 79%

88 73%

11 9%

1 8% -

46 12%

52 67%

124 65%

29 23%

4 3%

77 19%

84 74%

69 64%

35 23%

1 1%

114 28%

83 67%

51 24%

7 5%

93 77%

86 67%

1 9%

9 6%

120 30%

97 86%

23 16%

12 5%

152 80%

106 88%

13 10%

2 20%

191 48%

170 89%

16 11% 99 65%

79 74%

92 86%

23 11% 138 64%

106 27%

111 89%

3 28% 6 62%

125 31%

100 80%

115 90%

13 9%

5 5%

2 2%

10 2%

1 -

13 11%

18 15%

19 16%

8 7%

7 6%

2 2%

1 1%

64 83%

16 21% 3 5% -

41 88%

3 7%

3 6%

1 2% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 157 Table 31-5 QUESTION 23A: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? The CEO/owner BANNER 5

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

212 53%

145 36%

108 27%

345 86%

185 87%

129 88%

93 86%

82 90%

70 89%

274 68%

149 70%

96 66%

76 71%

60 66%

55 69%

6 6%

3 3%

298 74%

47 12%

71 18%

22 6%

25 6%

3 1%

5 1%

163 77%

22 10%

35 17%

9 4%

12 6%

2 1%

4 2%

114 78%

15 10%

32 22%

5 4%

9 7%

1 1%

80 75%

13 12%

17 15%

6 6%

2 2% -

92 23%

76 83% 7 7%

22 24% 4 4%

3 3%

79 20%

61 77%

9 11%

15 19% 5 7%

4 5%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

50 240 57 45 69 120 56 238 70% 75% 71% 72% 85% 78% 65% 74% M E E T I N G S T R E E T R E S E A R C H 60 276 69 53 76 137 68 276 85% 86% 85% 85% 93% 89% 79% 86% 10 14%

35 11%

12 15%

8 13%

14 20%

55 17%

16 20%

13 21%

46 65%

6 9%

4 6%

1 1%

221 69%

18 6%

53 66%

4 5%

17 5%

8 10%

5 2%

3 1%

6 7%

17 11%

12 14%

38 12%

17 20%

28 18%

13 15%

40 13%

40 64%

59 72%

7 11%

1 1%

1 1% -

2 3%

M E E T I N G S T R E E T

171

109 71% 6 4%

5 7%

11 7%

56 64% 6 7%

235 74%

6 7%

2 2%

4 4%

R E S E A R C H

17 5%

43 11%

54 10%

100 19%

36 83%

48 89%

18 42% 4 9%

30 69%

6 14%

17 41%

51 10%

100 19%

218 42%

93 93%

45 88%

89 89%

182 84%

36 67%

73 73%

36 71%

65 65%

147 68%

3 5%

3 3%

2 4%

43 79% 5 9%

12 22%

86 86%

7 7%

19 19%

22 7%

2 5%

2 4%

4 4%

4 1%

2 4%

1 2%

2 1%

41 81%

4 7%

8 17%

2 4%

2 3% 1 2%

79 79%

10 10% 25 25%

6 6%

152 69%

31 14% 35 16%

13 6%

4 4%

18 8%

4 2%

1 1%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 158 Table 32-1 QUESTION 23B: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A member of your management team BANNER 1

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

317 79%

140 35%

82 59%

109 78%

87 22%

47 54%

66 75%

48 12%

32 66%

40 83%

43 11%

29 68%

35 82%

82 20%

56 68%

68 83%

228 57%

129 57%

175 77%

172 43%

116 67%

142 83%

166 42%

79 47%

119 72%

108 27%

101 25%

72 67%

73 72%

89 82%

87 86%

202 51%

98 48%

147 73%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

86 73%

61 77%

55 61%

67 69%

37 62%

33 72%

46 46%

100 86%

69 86%

73 80%

79 81%

48 80%

40 86%

71 72%

299 75%

198 66%

245 82%

157 39%

107 27%

121 77%

81 76%

90 57%

33 8%

77 19%

61 57%

26 80%

56 73%

20 19%

3 10%

10 12%

30 90%

66 85%

TOTAL NOT IMPACT ----------------

72 18%

27 19%

19 22%

8 17%

6 14%

12 15%

46 20%

26 15%

40 24%

16 15%

14 14%

49 24%

15 13%

8 10%

17 19%

12 13%

10 17%

7 14%

25 25%

47 16%

31 20%

SOME IMPACT

147 37%

45 32%

35 40%

15 31%

23 55%

29 36%

80 35%

68 39%

36 22%

39 36%

58 58%

40 20%

58 49%

48 61%

34 37%

42 43%

23 38%

19 40%

32 33%

114 38%

47 30%

36 34%

14 42%

39 51%

40 10%

17 12%

11 12%

4 9%

2 5%

6 8%

28 12%

13 7%

23 14%

9 8%

7 7%

31 15%

6 5%

3 4%

9 10%

8 8%

7 12%

3 6%

16 16%

24 8%

21 14%

12 11%

1 4%

2 3%

5 1%

3 2%

1 2%

1 1%

3 1%

2 1%

1 -

1 1%

3 4%

1 1%

2 2%

1 2%

1 1%

4 1%

1 1%

3 2%

SIGNIFICANT IMPACT

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

170 42% 32 8% 6 1%

64 46% 10 7% 1 1%

31 35% 8 9%

3 3%

25 52% 4 8% -

11 27% 4 9%

1 2%

38 47% 6 7%

1 1%

95 42% 18 8%

4 2%

75 43% 14 8%

2 1%

83 50%

17 10%

5 3%

50 46%

29 29%

7 7%

1 1%

107 53% 18 9%

5 2%

43 36%

20 25%

9 8%

5 6%

1 1%

39 43%

9 10%

37 38% 4 5%

4 4%

25 42%

3 5% 1 2%

21 45%

4 8% -

39 39%

9 9%

2 2%

131 44%

22 7%

3 1%

74 47%

10 6%

3 2%

45 42%

9 8%

3 3%

16 48%

2 6% -

27 34%

8 10% -

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 159 Table 32-2 QUESTION 23B: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all?

A member of your management team BANNER 2

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 245 61%

201 50%

171 43%

372 93%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

300 81%

15 72%

162 83%

170 42%

91 45%

72 42%

163 44%

5 25%

96 49%

57 37%

11 5%

18 11%

29 8%

2 1%

147 37% 32 8%

40 10% 6 1%

5 1%

79 39% 17 8% 1 1%

58 34%

18 10% 3 1%

138 37%

5 23%

10 47% 2 9%

34 9%

3 14%

4 1%

5 1%

1 5%

132 67%

155 39%

130 76%

64 17%

10 49%

196 49%

170 85%

36 21%

237 64%

21 5%

317 79%

27 14%

94 55%

EXPAN RECES INC- DECINC- DECINC- DECINC- DEC-SION FLAT -SION BETTER WORSE SAME REASE REASE SAME REASE REASE SAME REASE REASE SAME 3/3 REASE REASE SAME ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ------ ----- ----- ----93 1 115 39 91 153 7 75 60% 3% 63% 66% 61% 65% 33% 58% M E E T I N G S T R E E T R E S E A R C H 122 10 146 48 119 192 13 101 79% 47% 81% 81% 80% 82% 60% 78%

72 18%

143 71%

30 15%

66 34%

13 7%

29 19%

9 43%

31 17%

65 42%

5 24%

70 39%

13 9%

17 9%

16 10%

3 1%

3 2%

1 1%

5 22%

5 24%

4 20%

2 10%

8 14%

28 19%

39 17%

6 27%

26 20%

181 45%

116 64%

36 9%

17 47%

172 43%

107 62%

123 31%

72 58%

62 15%

40 64%

208 52%

132 64%

49 12%

31 63%

146 81%

25 69%

138 81%

96 78%

50 80%

167 81%

40 82%

31 17%

8 22%

31 18%

24 20%

10 16%

35 17%

8 35%

53 41%

83 46%

14 38%

68 39%

51 41%

27 44%

91 44%

25 52%

14 8%

5 8%

10 7%

19 8%

2 8%

11 9%

17 9%

3 8%

12 7%

8 7%

6 10%

15 7%

3 5%

17 9% 1 1%

3 1%

57 38%

4 7%

18 12%

1 2%

2 4%

M E E T I N G S T R E E T

172

2 1%

90 38%

6 25%

48 37%

20 8%

4 19%

15 12%

3 1%

1 4%

2 1%

2 9%

R E S E A R C H

2 2%

63 35%

11 31%

71 41%

46 37%

14 8%

5 14%

19 11%

16 13%

3 1%

1 3%

3 2%

2 1%

2 6%

2 1%

22 36%

77 37%

4 6%

19 9%

7 13%

1 1%

2 1%

2 3%

4 2%

70 47%

101 43%

3 100%

59 40%

14 6%

17 11%

99 42%

103 43%

148 37%

107 72%

15 30%

62 41%

3 100%

32 14%

30 51%

3 1%

200 86%

9 18%

76 42%

17 29%

233 58%

168 72%

37 25%

48 32%

17 7%

21 14%

2 1%

1 1%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 160 Table 32-3 QUESTION 23B: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A member of your management team BANNER 3

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

78 84%

232 78%

173 86%

128 85%

104 87%

36 39%

130 44%

87 43%

62 41%

47 40%

245 61%

64 70%

72 18%

14 15%

147 37%

42 46%

40 10%

317 79% 170 42% 32 8%

6 1%

5 1%

176 59%

56 19%

148 73%

25 12%

109 72%

19 13%

95 24%

70 73%

41 41%

13 11%

13 14%

27 27%

28 27%

87 32%

17 17%

22 8%

83 86% 38 40%

86 42%

66 44%

57 48%

45 47%

7 7%

33 11%

11 5%

8 5%

4 3%

7 7%

5 2%

1 1%

23 8%

4 1%

14 7%

1 1%

3 2%

12 8%

2 1%

274 68%

90 76%

102 34%

7 8%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

10 8%

2 1%

40 15%

229 84%

41 40%

10 10%

4 4%

170 100%

68 68%

6 6%

2 2%

170 42%

189 69%

169 42%

143 84%

171 43%

133 78%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18% 50 70%

147 37%

147 100%

146 36%

128 88%

147 37%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

107 72%

47 12%

170 100%

155 92%

150 88%

60 85%

147 100%

137 94%

127 86%

28 59%

142 52%

170 100%

131 78%

108 64%

13 18%

31 21%

45 31%

15 32%

18 7%

6 3%

2 1%

3 1%

12 7%

23 14%

7 4%

1 1%

17 10%

42 24%

10 15%

9 6%

20 14%

48 67%

147 100%

106 73%

82 56%

9 5%

7 10%

2 1%

9 6%

1 1%

8 5%

3 2%

4 5%

1 1%

7 5%

72 18%

9 -72 19% -100%

19 40%

74 18%

73 18%

196 49%

24 32%

39 54%

160 82%

153 78%

-26 -35%

7 9%

115 59%

72 100%

50 68%

33 45%

32 16%

38 19%

18 24%

24 33%

89 46%

54 27%

21 28%

15 8%

23 12%

3 1%

1 -

13 27%

6 8%

16 21%

12 8%

8 18%

32 44%

20 27%

12 16%

1 2%

1 1%

129 66%

10 22%

40 56%

30 41%

71 36% 17 8%

1 -

99 50% 15 7%

5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 161 Table 32-4 QUESTION 23B: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A member of your management team BANNER 4

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

78 90%

170 42%

56 65%

32 8%

2 2%

72 18%

SOME IMPACT

147 37%

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

72 82%

317 79%

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT

87 22%

40 10% 6 1%

5 1%

285 71%

103 26%

243 85%

68 66%

206 72%

35 34%

43 11%

26 61%

34 80%

144 36%

102 71%

122 85%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

65 78%

37 88%

6 87%

98 80%

80 87%

117 79%

6 61%

182 85%

131 86%

110 86%

39 47%

8 20%

7 9%

2 4%

50 33 5 75 70 87 2 152 M60% E E T79% I N G74% S T R62% E E T76%R E58% S E A22% R C H71%

7 8%

37 13%

33 32%

8 20%

20 14%

15 18%

22 25%

121 42%

25 24%

14 33%

61 42%

26 32%

5 6%

19 7%

19 19%

6 13%

3 1%

1 1%

122 43% 18 6%

3 1%

43 42% 13 13% 2 2%

20 48% 3 6% -

62 43% 11 8%

191 48%

120 30%

114 28%

92 72%

92 74%

81 76%

139 73%

81 67%

61 54%

107 86%

92 86%

163 86%

100 83%

77 19%

50 65%

46 12%

28 60%

86 76%

63 81%

36 78%

50 44%

31 40%

24 51%

1 13%

23 18%

10 11%

30 20%

4 39%

30 14%

19 13%

18 14%

15 12%

11 11%

25 13%

19 16%

25 22%

29 69%

2 30%

47 39%

33 35%

58 39%

4 41%

94 44%

71 47%

60 46%

57 46%

51 48%

87 45%

49 41%

36 32%

32 41%

12 27% 3 6%

7 9%

2 5%

2 1%

3 3%

1 1%

106 27%

4 9%

9 6%

111 74%

125 31%

1 2%

4 57% 1 13%

51 42% 9 8%

13 11%

1 1%

48 52%

1 -

M E E T I N G S T R E E T

173

5 6%

60 40% 14 9%

2 21% 3 29%

5 5%

16 11%

1 10%

1 1%

2 1%

1 1%

88 41%

R E S E A R C H

17 8%

13 6% 1 -

2 1%

60 40% 13 9%

51 39% 9 7%

50 40%

7 6%

41 39%

4 4%

77 40%

12 6%

51 42%

6 5%

10 9%

12 16%

4 6%

6 4%

9 7%

8 6%

7 7%

13 7%

13 11%

15 13%

8 10%

2 1%

3 2%

3 3%

3 1%

2 1%

1 1%

2 1%

1 1%

8 18%

6 12% 2 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 162 Table 32-5 QUESTION 23B: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A member of your management team BANNER 5

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

317 79%

163 77%

124 86%

89 83%

75 82%

67 84%

59 83%

250 78%

67 83%

52 83%

68 83%

123 80%

63 73%

248 78%

37 87%

45 84%

87 87%

43 85%

84 84%

166 76%

170 42%

90 43%

70 48%

47 43%

35 38%

33 41%

26 36%

140 44%

30 37%

30 48%

32 39%

61 40%

40 46%

150 47%

10 24%

25 46%

49 49%

14 28%

40 40%

92 42%

4 5%

12 8%

9 10%

27 8%

3 6%

2 4%

7 7%

4 8%

5 5%

18 8%

245 61%

72 18%

147 37%

32 8%

123 58%

40 19%

73 34%

18 8%

108 74%

17 12%

55 38%

6 4%

72 67%

17 15%

42 39%

9 9%

62 67%

13 14%

40 44%

5 6%

55 69%

12 16%

35 43%

4 5%

49 69%

10 15%

33 47% 5 6%

190 60% 60 19%

110 35%

29 9%

55 68%

12 15%

37 46%

3 4%

43 69%

9 14%

22 35%

4 7%

55 68%

12 15%

36 44%

93 61% 29 19%

61 40%

46 53% 17 20%

24 27%

184 57% 64 20%

98 31%

33 77% 4 10%

27 63%

38 71%

7 13%

21 38%

75 75%

12 12%

38 38%

37 73%

6 12%

29 57%

70 70%

14 14%

44 44%

120 55%

46 21%

74 34%

40 10%

23 11%

11 8%

7 7%

8 9%

9 11%

6 8%

31 10%

9 11%

5 8%

9 11%

17 11%

8 10%

37 12%

1 3%

5 9%

5 5%

2 4%

9 9%

28 13%

5 1%

4 2%

3 2%

3 3%

2 2%

5 2%

2 3%

2 2%

1 1%

2 1%

2 4%

1 2%

2 2%

3 1%

6 1%

5 2%

2 1%

2 2%

1 1%

4 1%

2 2%

1 -

5 6%

6 2%

1 3%

1 1%

1 2%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 163 Table 33-1 QUESTION 23C: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A manager or supervisor BANNER 1

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

315 79%

140 35%

76 54%

106 75%

87 22%

49 56%

67 77%

48 12%

43 11%

82 20%

40 83%

37 87%

65 80%

30 63%

14 33%

2 5%

2 4%

31 65%

74 18%

30 21%

18 21%

8 17%

146 36%

46 33%

40 46%

9 20%

169 42%

28 7%

60 42%

9 7%

27 31%

7 8%

33 78%

51 63%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

173 76%

142 82%

122 73%

88 82%

84 83%

147 73%

98 84%

68 86%

74 82%

79 81%

40 67%

39 85%

71 72%

242 81%

115 73%

37 38%

21 36%

20 43%

38 38%

131 44%

75 48%

43 40%

7 7%

9 14%

2 5%

7 7%

21 7%

13 8%

6 5%

125 116 83 73 67 100 80 60 M 55% E E T 67% I N G 50% S T R 67% E E T 66% R E 49% S E A 68% R C H 75%

4 9%

14 17%

48 21%

26 15%

39 23%

16 15%

17 17%

23 54%

27 33%

86 38%

60 35%

32 20%

41 38%

60 60%

38 46%

8 9%

87 38%

16 7%

82 48%

12 7%

89 54%

13 8%

48 44%

5 5%

24 23%

8 8%

58 64%

65 68%

48 24%

18 15%

8 10%

16 17%

13 14%

39 19%

53 45%

53 67%

35 38%

42 43%

108 53%

13 7%

45 39%

10 8%

15 19%

5 6%

40 43%

3 3%

22 37%

18 30%

19 31%

33 72%

6 13%

19 41%

46 46% 25 25%

34 34%

194 65% 49 16%

112 37%

24 74%

55 70%

37 24%

15 14%

4 13%

11 14%

40 26%

12 13%

6 12%

2 5%

6 8%

32 14%

14 8%

26 16%

11 10%

9 9%

34 17%

8 7%

3 4%

13 14%

7 7%

9 16%

4 8%

19 19%

27 9%

24 15%

7 2%

3 2%

1 2%

3 3%

3 1%

4 2%

3 2%

4 2%

3 4%

2 3%

1 2%

7 2%

3 2%

2 2%

1 2%

4 2%

1 1%

4 2%

1 1%

M E E T I N G S T R E E T

174

4 2%

1 1%

R E S E A R C H

1 1%

2 2%

1 2%

3 3%

2 1%

77 19%

70 66%

20 14%

2 1%

33 8%

78 50%

46 11%

5 1%

107 27%

2 1%

86 81%

29 87%

9 29%

65 84%

31 40%

43 40%

19 59%

34 44%

10 9%

3 10%

7 9%

3 2%

3 3%

1 3%

4 5%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 164 Table 33-2 QUESTION 23C: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A manager or supervisor BANNER 2

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

315 79%

172 86%

125 73%

298 80%

241 60%

145 72%

87 51%

232 62%

21 5%

10 49%

15 72%

155 39%

161 82%

120 78%

130 67%

91 59%

21 5%

181 45%

12 55%

143 79%

3 16%

110 61%

59 15%

150 37%

236 59%

43 72%

124 83%

195 83%

30 50%

99 66%

157 66%

22 6%

129 32%

181 45%

15 69%

95 74%

153 85%

10 47%

65 50%

128 70%

36 9%

14 40%

23 66%

172 43%

93 54%

130 76%

123 31%

62 15%

208 52%

49 12%

100 81%

45 73%

166 80%

37 76%

199 86%

3 100%

27 54%

91 39%

3 100%

68 46%

5 10%

14 6%

14 9%

80 65%

30 48%

130 63%

26 53%

233 58%

169 73%

TOTAL NOT IMPACT ----------------

74 18%

28 14%

38 22%

66 18%

5 23%

31 16%

29 19%

8 39%

33 18%

13 22%

25 17%

38 16%

5 22%

30 23%

26 14%

9 26%

37 22%

20 16%

15 25%

36 17%

11 22%

SOME IMPACT

146 36%

82 41%

55 32%

138 37%

8 38%

78 40%

54 35%

4 20%

68 37%

15 26%

61 40%

96 41%

5 21%

41 32%

74 41%

8 24%

61 35%

47 38%

20 33%

76 37%

10 21%

46 11%

18 9%

22 13%

39 11%

4 18%

19 10%

16 10%

7 34%

16 9%

10 16%

19 13%

21 9%

5 22%

19 15%

15 8%

7 21%

21 12%

14 11%

9 15%

22 11%

6 13%

16 7%

5 3%

5 1%

2 1%

3 2%

4 2%

1 2%

2 1%

1 4%

2 1%

1 3%

2 1%

3 3%

1 1%

2 1%

SIGNIFICANT IMPACT

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

169 42% 28 7% 5 1%

7 2%

90 45% 10 5% 1 1%

70 41%

16 10% 3 1%

160 43% 26 7% 4 1%

7 34% 1 4%

1 5%

83 42% 12 6% 1 1%

66 43% 13 9% 2 1%

7 35% 1 5%

1 5%

75 41% 16 9% 2 1%

28 47%

63 42%

4 6%

6 4%

2 4%

1 1%

99 42%

16 7%

2 1%

11 48%

1 5%

54 41%

12 9%

2 2%

79 44% 11 6% -

15 42% 2 5%

2 6%

69 40% 16 9%

3 2%

53 43% 6 5% -

25 40%

6 10% 1 1%

90 43% 14 7%

4 2%

1 2%

30 13%

108 46%

1 -

3 1%

148 37%

3 100%

65 44%

40 27%

105 71%

37 25%

26 18%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 165 Table 33-3 QUESTION 23C: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A manager or supervisor BANNER 3

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

315 79%

75 81%

234 79%

175 87%

130 86%

102 86%

169 42%

36 39%

129 43%

78 39%

60 40%

40 33%

241 60% 74 18%

146 36% 28 7%

58 63%

17 18%

39 42% 7 8%

180 61% 54 18%

105 35% 18 6%

46 11%

10 10%

36 12%

7 2%

1 1%

6 2%

5 1%

4 1%

154 77% 21 10%

97 48%

11 5%

112 74% 18 12%

70 46%

8 5%

10 5%

10 7%

4 2%

3 2%

2 1%

1 1%

89 75%

13 11%

62 53%

8 6%

6 5%

1 1%

3 2%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

72 41 193 156 169 139 41 112 75% 41% 71% 92% 100% 81% 57% 76% M E E T I N G S T R E E T R E S E A R C H 83 68 231 162 169 154 56 130 87% 68% 84% 95% 100% 90% 78% 88% 11 11%

27 27%

38 14%

50 52%

24 24%

92 34%

33 34%

4 4%

44 44%

9 9%

15 9%

15 21%

18 12%

169 100%

112 66%

16 23%

23 16%

14 5%

1 1%

5 3%

6 9%

11 8%

18 18%

24 9%

1 1%

3 3%

3 1%

3 3%

131 77%

7 7%

1 1%

6 4%

139 51%

2 1%

31 18%

5 3%

1 1%

M E E T I N G S T R E E T

175

41 24%

39 55%

9 5%

9 12%

3 1%

146 36%

147 37%

146 100%

125 85%

28 59%

44 30%

14 29%

146 100%

106 72%

146 100%

6 4%

1 1%

R E S E A R C H

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

105 71%

20 14%

81 55%

9 6%

11 7% -

2 1%

47 12%

9 19%

19 39%

14 29%

8 17%

10 22% -

1 2%

72 18%

74 18%

73 18%

196 49%

21 29%

35 48%

158 81%

151 77%

12 16%

-29 -74 -41% -100% 50 70%

12 17%

9 12%

16 22%

34 48% -

1 1%

74 100%

28 38%

46 62% -

-2 -3%

37 51%

23 32%

13 18%

123 63%

34 18%

68 35% 89 46%

15 8%

112 57%

39 20%

98 50% 53 27%

13 6%

24 33%

19 10%

26 13%

1 1%

2 1%

3 1%

1 -

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 166 Table 33-4 QUESTION 23C: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all?

A manager or supervisor BANNER 4

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

315 79%

87 22%

285 71%

103 26%

75 86%

242 85%

68 66%

64 74%

206 72%

35 34%

43 11%

23 53%

33 77%

144 36%

83 21%

42 11%

120 83%

67 81%

100 69%

54 65%

7 2%

122 31%

93 23%

149 37%

35 82%

7 100%

98 80%

79 86%

116 78%

7 71%

9 21%

5 71%

51 42%

41 44%

66 44%

4 9%

8 6%

6 6%

12 8%

28 67%

TOTAL NOT IMPACT ----------------

74 18%

10 12%

36 13%

34 33%

10 23%

21 14%

13 16%

7 15%

SOME IMPACT

146 36%

27 32%

116 41%

29 28%

15 34%

59 41%

28 34%

26 61%

SIGNIFICANT IMPACT

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

169 42% 28 7%

47 54% 2 2%

46 11%

9 10%

7 2%

1 1%

5 1%

1 1%

126 44% 12 4%

40 39%

15 14%

18 43%

4 10%

62 43%

7 5%

39 47%

7 8%

24 8%

19 19%

6 13%

14 10%

7 8%

4 2%

1 1%

2 2%

3 3%

3 1%

1 1%

3 7%

1 2% -

7 100% -

2 29%

75 61%

23 19%

48 39%

16 13%

68 73%

11 12%

38 41%

1 -

87 58%

29 19%

50 34%

10 2%

151 38%

128 32%

125 31%

106 27%

191 48%

182 85%

129 85%

110 86%

105 84%

90 84%

161 84%

98 82%

87 76%

3 30%

84 39%

57 38%

50 39%

44 35%

36 34%

74 39%

54 45%

50 44%

31 40%

19 41%

2 20%

14 7%

10 7%

12 9%

5 4%

6 6%

14 7%

7 6%

4 6%

3 5%

4 41%

3 29%

4 41%

6 6%

17 11%

1 10%

1 1%

3 2%

1 1%

214 54%

154 72% 28 13%

97 45% 14 7%

2 1%

109 72% 20 13%

72 48% 9 6%

1 1%

2 1%

93 72%

17 14%

60 47%

88 71%

17 14%

62 49%

6 5%

12 9%

3 2%

1 1%

77 72%

13 12%

53 50%

133 70% 28 14%

87 46%

7 6%

13 7%

3 3%

3 1%

1 1%

120 30%

80 66% 19 15%

44 36%

114 28%

77 19%

46 12%

64 57%

44 56%

28 61%

22 20%

16 21%

8 18%

37 32%

59 77%

29 37%

36 78%

17 37%

11 9%

15 13%

12 15%

6 12%

2 2%

3 3%

1 2%

2 1%

1 1%

2 3%

1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 167 Table 33-5 QUESTION 23C: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A manager or supervisor BANNER 5

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

212 53%

145 36%

108 27%

315 79%

160 75%

121 83%

90 83%

169 42%

88 41%

65 44%

241 60%

74 18%

146 36% 28 7%

118 56%

42 20%

72 34% 14 6%

46 11%

28 13%

7 2%

6 3%

5 1%

5 2%

102 70%

92 23%

79 20%

75 70%

61 67%

54 68%

19 13%

15 14%

13 15%

12 16%

57 39%

45 42%

38 42%

34 43%

9 6%

10 7%

2 1%

3 2%

45 42% 5 5% 9 9%

3 3% -

75 82% 37 40% 5 6%

66 83% 32 41% 5 6%

71 18%

319 80%

81 20%

62 16%

87 22%

320 80%

61 19%

13 16%

10 16%

10 12%

31 20%

20 23%

66 21%

31 44%

115 36%

31 38%

23 37%

34 42%

59 38%

24 28%

92 29%

27 38% 4 6%

134 42% 25 8%

35 43% 3 3%

28 45% 3 5%

8 10%

7 10%

35 11%

11 13%

7 11%

3 4%

1 1%

2 2%

5 2%

2 2%

2 3%

154 39%

11 16%

8 9%

82 20%

47 188 53 41 60 92 40 180 66% 59% 65% 66% 73% 60% 46% 56% M E E T I N G S T R E E T R E S E A R C H 58 249 66 51 69 123 60 246 82% 78% 81% 82% 85% 80% 69% 77%

5 1%

35 43%

M E E T I N G S T R E E T

176

3 4%

64 41% 12 8%

7 8%

19 12%

3 3%

1 -

36 41% 8 10%

43 11%

35 81%

38 89%

81 81%

44 87%

52 52%

17 33%

13 13%

2 4%

18 18%

30 69%

17 32%

29 29%

23 7%

43 13%

3 7%

3 3%

4 1%

2 4%

R E S E A R C H

44 81%

62 62%

9 16%

9 20%

5 1%

100 19%

35 65%

3 7%

153 48%

12 13% 4 5%

54 10%

27 50% 5 8%

4 8%

1 1%

1 2%

6 6% -

1 1%

51 10%

40 78%

100 19%

66 66%

82 82%

218 42%

117 54%

164 75%

5 9%

16 16%

47 22%

28 54%

42 42%

80 37%

40 40%

6 6%

84 39%

16 7%

3 6%

10 10%

32 15%

1 2%

2 2%

3 1%

1 2%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 168 Table 34-1 QUESTION 23D: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all?

A skilled worker BANNER 1

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

318 80%

140 35%

92 65%

114 81%

87 22%

46 53%

66 76%

48 12%

20 41%

37 87%

22 47%

19 44%

73 18%

22 16%

20 23%

14 29%

SOME IMPACT

147 37%

49 35%

35 40%

33 8%

11 8%

6 2%

4 3%

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

171 43% 40 10% 3 1%

65 46%

33 78%

34 71%

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT

43 11%

82 20%

54 66%

67 83%

228 57%

138 61%

180 79%

172 43%

107 62%

138 80%

166 42%

97 58%

129 77%

108 27%

101 25%

65 61%

67 67%

85 79%

84 83%

202 51%

120 59%

159 78%

117 29%

79 20%

74 63%

51 64%

95 81%

63 80%

91 23%

97 24%

60 15%

46 12%

100 25%

58 64%

66 68%

37 62%

29 63%

54 55%

74 81%

80 83%

48 79%

38 81%

76 76%

299 75%

190 63%

241 81%

157 39%

107 27%

122 78%

83 78%

90 58%

64 60%

77 19%

29 89%

60 78%

26 79%

13 16%

42 18%

31 18%

32 19%

20 19%

17 17%

39 19%

21 18%

13 16%

16 17%

14 14%

11 18%

9 19%

21 22%

51 17%

32 21%

11 24%

18 43%

34 41%

84 37%

63 37%

43 26%

39 36%

55 54%

53 26%

49 42%

44 56%

35 38%

35 36%

23 39%

18 38%

34 34%

113 38%

39 25%

49 46%

17 52%

32 42%

6 7%

9 18%

6 7%

18 8%

15 9%

18 11%

4 8%

13 13%

20 7%

18 11%

9 9%

1 4%

4 5%

2 1%

3 2%

6 2%

1 1%

4 3%

10 7%

13 15%

1 1%

5 11% -

4 9%

1 2%

34 41%

96 42%

7 9%

24 11%

2 1%

1 1%

4 2%

75 43% 16 9%

1 1%

86 52%

47 43%

29 29%

14 8%

11 10%

13 13%

2 1%

1 1%

9 9%

2 1%

106 52%

46 39%

15 7%

14 12%

2 1%

1 1%

4 4%

24 12%

3 1%

19 24%

11 14%

7 6%

6 7%

1 2%

9 10%

3 4%

2 2%

39 42%

45 47%

24 41%

8 8%

9 15%

1 1%

1 2%

6 6%

2 2%

2 3%

1 2%

20 43%

5 11% -

42 42%

8 9% 2 2%

128 43%

32 11% 1 -

84 53%

14 9% 1 1%

34 32%

10 9% 1 1%

4 11%

46 59%

4 9%

31 35%

19 18%

33 8%

12 37%

2 6%

15 19%

28 36%

11 14%

1 1%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 169 Table 34-2 QUESTION 23D: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A skilled worker BANNER 2

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 245 61%

318 80%

201 50%

122 61%

161 80%

171 43%

113 66%

140 82%

372 93%

235 63%

300 81%

21 5%

10 49%

15 72%

MN BUSINESS CAPITAL STATUS ECONOMY IN 2019 CLIMATE GROSS REVENUES PROFITABILITY EXPENDITURES QUO EMPLOYEE WAGES ================= ================== ================= ================= ================= ====== ================= EXPAN RECES INC- DECINC- DECINC- DECINC- DEC-SION FLAT -SION BETTER WORSE SAME REASE REASE SAME REASE REASE SAME REASE REASE SAME 3/3 REASE REASE SAME ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ------ ----- ----- ----196 49%

115 59%

153 78%

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

129 84%

13 64%

146 80%

47 79%

119 80%

192 81%

17 79%

99 77%

147 81%

24 68%

141 82%

100 81%

46 75%

169 81%

41 84%

97 41%

11 48%

57 44%

77 43%

18 49%

71 41%

46 38%

24 39%

98 47%

26 53%

15 12%

19 11%

3 8%

16 9%

11 9%

8 12%

17 8%

107 112 38 91R E152 15 70 M E E 38% T 8 I N G62% S T R64% E E T61% S E A69% R C H55% 69% 64%

TOTAL NOT IMPACT ----------------

73 18%

38 19%

27 16%

66 18%

5 23%

39 20%

22 14%

5 26%

34 19%

9 15%

28 19%

40 17%

SOME IMPACT

147 37%

65 32%

77 45%

141 38%

6 30%

70 36%

65 42%

7 33%

69 38%

22 37%

54 36%

95 40%

SIGNIFICANT IMPACT

NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

171 43%

96 48%

40 10%

24 12%

3 1%

1 1%

33 8% 6 2%

14 7% 1 1%

63 37%

15 9%

12 7% 1 -

3 2%

159 43%

39 11%

9 42%

26 7%

5 23%

5 1%

2 -

1 5%

84 43%

26 13%

64 41%

9 6%

12 6%

13 8%

3 1%

3 2%

1 1%

6 31%

2 11%

3 15%

1 5% 1 5%

76 42%

20 11%

14 8%

2 1%

25 43%

6 11%

65 43%

12 8%

3 5%

16 10%

1 2%

2 1%

2 4%

M E E T I N G S T R E E T

177

1 1%

23 10%

2 9%

29 22%

7 30%

43 33%

17 7%

2 9%

13 10%

3 1%

2 8%

1 -

1 4%

R E S E A R C H

1 1%

181 45%

115 63%

33 18%

70 39%

36 9%

17 47%

7 21%

7 19%

172 43%

111 65%

30 17%

70 41%

123 31%

79 64%

21 17%

53 43%

62 15%

32 52%

14 23%

22 36%

208 52%

135 65%

34 16%

71 34%

49 12%

3 1%

148 37%

3 100%

110 74%

105 45%

3 100%

56 38%

4 8%

23 10%

16 11%

1 -

33 68%

164 70%

3 100%

8 16%

33 14%

15 31%

92 39%

13 7%

5 13%

14 8%

10 8%

6 10%

17 8%

4 8%

2 1%

2 5%

3 2%

1 1%

3 1%

2 5%

1 1%

2 1%

233 58%

197 85%

10 4%

2 1%

74 50%

36 24%

54 36%

20 13%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 170 Table 34-3 QUESTION 23D: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A skilled worker BANNER 3

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

318 80%

73 79%

238 80%

170 84%

131 87%

102 86%

87 92%

171 43%

35 37%

131 44%

86 43%

62 41%

46 39%

41 43%

15 13%

6 6%

245 61% 73 18%

147 37%

40 10%

33 8% 3 1%

6 2%

53 58% 20 21%

38 41%

14 15%

6 6%

187 63% 51 17%

108 36%

25 8%

27 9%

2 1%

6 2%

142 70% 28 14%

84 42%

23 11%

5 3%

1 -

3 2%

113 75% 18 12%

69 46%

13 8%

5 3%

1 1%

2 1%

87 73% 15 13%

56 47%

2 1%

79 83% 8 8%

47 49%

274 68%

170 42%

169 42%

68 67%

228 83%

154 90%

157 93%

38 38%

137 50%

108 64%

112 67%

171 100%

23 8%

10 6%

8 5%

39 38%

29 29%

9 8%

2 2%

21 20%

2 2%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

2 2%

188 69%

41 15%

91 33%

18 6%

1 -

4 1%

138 81%

16 9%

45 27%

171 43%

145 86%

171 100%

12 7%

44 26%

6 3%

3 2%

1 -

171 100%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

61 86%

124 84%

122 84%

19 27%

42 28%

41 28%

51 72%

10 14%

42 59%

4 6%

5 8%

100 68%

24 16%

82 56%

18 12%

6 4%

147 37%

99 68%

147 100%

23 16%

147 100%

81 56%

147 100%

5 4%

18 12%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

47 12%

72 18%

74 18%

27 57%

37 52%

35 47%

13 27%

17 24%

15 20%

7 15%

5 7%

20 41%

33 45%

14 30%

37 50%

20 28%

11 23%

20 28%

1 2%

196 49%

153 78%

161 82%

2 3%

112 57%

40 21%

71 36%

14 19%

40 55%

23 32%

196 49%

73 100%

20 27%

12 17%

9 19%

73 18%

-2 -73 -3% -100%

82 42%

26 13%

33 45%

2 3%

131 67%

30 15%

100 51%

61 31%

12 6%

15 8%

18 9%

1 -

2 1%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 171 Table 34-4 QUESTION 23D: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A skilled worker BANNER 4

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT

SOME IMPACT NOT MUCH IMPACT NO IMPACT DON'T KNOW REFUSED

87 22%

285 71%

103 26%

318 80%

78 89%

247 87%

171 43%

50 57%

130 46%

245 61%

73 18%

147 37%

40 10%

33 8%

3 1%

6 2%

69 80%

8 10%

214 75%

34 12%

28 32%

117 41%

5 6%

15 5%

3 4% -

1 1%

19 7%

2 1%

3 1%

43 11%

144 36%

65 63%

36 85%

116 80%

35 34%

22 52% 2 4%

29 28%

36 35%

30 29%

21 20%

30 70%

6 15%

14 34%

15 15%

4 10%

2 2%

90 63%

83 42 7 122 93 149 10 214 21% 11% 2% 31% 23% 37% 2% 54% M 57 E E T 30 I N G S5T R 62 E E T 77R E 97 S E A R-C H163 69% 70% 67% 51% 83% 65% 4% 76%

151 38%

128 32%

107 71%

87 68%

125 31%

81 65%

106 27%

71 67%

191 48%

120 30%

114 28%

77 19%

46 12%

85 75%

65 84%

38 82%

131 69%

80 67%

60 52%

29 15%

19 16%

25 22%

9 12%

9 18%

42 37%

30 39%

16 34%

68 82%

36 85%

6 84%

92 75%

84 91%

122 82%

5 52%

188 88%

128 85%

108 84%

102 82%

87 82%

160 84%

53 37%

43 52%

17 40%

3 39%

46 37%

50 54%

62 42%

3 30%

96 45%

61 40%

52 40%

51 41%

44 41%

85 44%

53 44%

43 38%

15 11%

9 11%

4 9%

1 16%

18 15%

4 5%

14 10%

3 28%

18 8%

13 9%

15 12%

14 11%

15 14%

21 11%

11 9%

13 12%

26 18%

63 44% 10 7%

1 1%

2 1%

11 14%

25 30%

6 15%

19 46%

2 2%

3 6%

3 4%

1 16%

3 44%

30 24%

46 38%

7 8%

35 38%

12 10%

3 3%

1 1%

M E E T I N G S T R E E T

178

25 17%

60 40%

5 48%

2 22%

10 7%

2 20%

3 2%

25 12%

92 43%

R E S E A R C H

7 3% -

2 1%

21 14%

67 44%

7 5%

1 1% 2 1%

21 16%

56 44%

5 4% -

21 17%

51 41%

8 6% -

2 1%

16 15%

43 41%

1 1% -

4 4%

75 39%

7 4% -

3 1%

100 83%

47 39%

9 7%

12 11%

3 2%

1 1%

56 72%

35 46% 3 4%

29 63%

22 48% 2 4%

6 8%

7 14%

1 1%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 172 Table 34-5 QUESTION 23D: I am going to read you a few different roles within manufacturing and I would like to know how well you feel your company is prepared to handle the departure of someone in that role. What impact, if any, would the departure of [INSERT] have on your firm? Would you say a significant impact, some impact, not much of an impact or no impact at all? A skilled worker BANNER 5

BASE=TOTAL SAMPLE **D/S (IMPACT - NOT IMPACT) TOTAL IMPACT ------------

TOTAL NOT IMPACT ----------------

SIGNIFICANT IMPACT SOME IMPACT NOT MUCH IMPACT NO IMPACT

DON'T KNOW REFUSED

212 53%

145 36%

108 27%

318 80%

168 79%

116 80%

88 82%

73 80%

171 43%

95 45%

67 46%

50 46%

35 39%

245 61%

73 18%

147 37% 40 10%

33 8% 3 1%

6 2%

131 62%

36 17%

73 34% 18 9%

18 8% 3 1%

5 2%

91 63%

25 17%

49 34% 16 11%

9 6%

2 1%

3 2%

70 65%

19 17%

38 35% 11 10%

7 7%

1 1% -

92 23%

79 20%

57 62%

71 18%

319 80%

66 83%

57 80%

259 81%

59 73%

31 39%

25 35%

139 44%

32 39%

53 67%

16 18%

12 16%

38 41%

35 44%

12 13%

5 6%

4 5%

8 10%

3 3%

1 1%

45 63%

13 18% 33 46% 8 12%

4 6%

2 2%

208 65%

51 16% 120 38% 29 9%

22 7%

3 1%

6 2%

81 20%

37 46%

22 27% 27 34%

62 16%

82 20%

154 39%

51 82%

68 83%

29 47%

31 38%

42 68%

9 14% 22 35%

11 14%

6 10%

1 1%

11 13% -

3 5%

2 3%

55 68%

12 15% 37 45%

87 22%

320 80%

123 80%

66 76%

254 79%

32 75%

39 73%

86 86%

44 87%

80 80%

172 79%

64 42%

40 47%

151 47%

10 24%

24 45%

37 37%

21 42%

40 40%

93 43%

94 61%

29 19% 59 38%

7 9%

17 11%

5 6%

2 2%

48 56%

18 20% 26 30% 7 8%

194 61%

60 19% 102 32%

23 53%

9 21% 22 51%

1 1%

3 1%

73 73%

13 13%

10 18%

4 4%

2 4%

2 1%

15 27%

100 19%

1 3%

3 1%

31 10%

25 46%

49 49%

8 18%

11 12%

54 10%

15 28%

29 9%

12 8%

2 3%

43 11%

5 9%

9 9%

1 1% -

51 10%

40 78%

5 9%

23 45%

100 19%

62 62%

17 17%

40 40%

218 42%

132 61%

40 18%

79 36%

5 9%

13 13%

22 10%

1 2%

1 1%

2 1%

1 2%

5 5%

2 2%

18 8%

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 35-1 QUESTION 24: What is the impact of your inability to attract qualified candidates having on your company growth? BANNER 1

BASE=TOTAL SAMPLE **D/S (DIFFICULT - NOT DIFFICULT) TOTAL DIFFICULT ---------------

TOTAL NOT DIFFICULT ------------------VERY DIFFICULT

SOMEWHAT DIFFICULT NOT TOO DIFFICULT NOT DIFFICULT AT ALL DON'T KNOW REFUSED

PAGE 173

140 35%

87 22%

48 12%

43 11%

82 20%

182 46%

63 45%

25 28%

21 43%

28 66%

45 55%

103 26%

36 25%

30 35%

13 26%

7 16%

18 22%

198 50%

63 45%

41 47%

20 42%

28 66%

46 12%

11 8%

12 14%

8 18%

3 2%

1 2%

285 71%

87 22% 57 14% 8 2%

3 1%

99 70%

35 25% 25 18% 4 3%

55 63%

14 16% 18 20% 2 2%

33 69%

13 27% 4 8%

1 3%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

67 69%

45 75%

34 73%

61 61%

223 75%

106 67% 34 22%

28 26%

5 16%

17 21%

68 33%

59 50%

55 69%

46 51%

42 43%

66 29%

37 22%

51 30%

25 23%

16 16%

64 31%

28 24%

11 14%

21 23%

25 26%

14 23%

12 25%

34 34%

69 23%

45 29%

46 56%

104 46%

94 55%

80 48%

55 51%

54 53%

91 45%

67 57%

39 49%

52 57%

44 45%

29 48%

24 52%

46 47%

151 50%

72 46%

51 48%

4 9%

11 13%

23 10%

23 13%

28 17%

8 8%

6 6%

32 16%

12 10%

2 2%

12 13%

10 10%

3 5%

3 6%

15 15%

31 10%

26 16%

11 11%

3 1%

1 1%

2 1%

1 1%

7 16% 3 7%

1 2%

18 22% 8 9% -

50 22% 42 19% 6 3%

37 22% 15 8% 2 1%

29 17% 22 14% 5 3%

24 22% 17 15% 3 3%

31 31% 10 10% -

40 20% 31 15% 6 3%

20 17% 16 14%

2 2%

28 35% 10 12%

2 2%

15 17% 9 10%

2 2%

1 1%

23 24% 16 16%

4 4% -

16 27%

10 17%

1 2% -

10 21%

9 19%

1 2%

15 15%

19 19%

3 3%

1 1%

72 24%

38 13%

5 2%

2 1%

60 39%

56 72%

69 68%

67 74%

154 52%

28 84%

55 51%

154 132 109 80 85 131 87 66 M 67% E E T 76% I N G 66% S T R 74% E E T 84% R E 65% S E A 74% R C H 84%

27 27%

78 74%

59 35%

63 78%

22 48%

77 19%

94 55%

35 82%

32 53%

33 8%

88 39%

19 12%

5 3%

53 50%

25 24%

BASE=TOTAL SAMPLE **D/S (DIFFICULT - NOT DIFFICULT)

TOTAL DIFFICULT ---------------

TOTAL NOT DIFFICULT ------------------VERY DIFFICULT

SOMEWHAT DIFFICULT NOT TOO DIFFICULT NOT DIFFICULT AT ALL DON'T KNOW REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 182 46%

285 71%

201 50%

92 46%

144 72%

171 43%

76 44%

121 71%

372 93%

168 45%

266 71%

21 5%

14 65%

4 13%

14 18%

2 2%

1 1%

196 49%

75 38%

155 39%

98 63%

21 5%

6 28%

181 45%

76 42%

59 15%

33 56%

150 37%

70 47%

236 59%

107 46%

22 6%

12 54%

129 32%

65 50%

181 45%

79 44%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

182 78%

16 44%

90 53%

48 77%

144 69%

34 69%

4 18%

42 22%

35 22%

5 22%

42 23%

17 28%

29 19%

49 21%

9 39%

27 21%

38 21%

11 31%

36 21%

25 20%

17 27%

43 21%

13 26%

22 13%

17 13%

6 10%

30 15%

6 12%

31 13%

4 2%

8 4%

2 3%

3 1%

8 40%

84 46%

29 49%

80 53%

119 51%

8 37%

69 54%

90 50%

15 41%

93 54%

46 12%

22 11%

20 12%

41 11%

2 10%

27 14%

10 7%

5 23%

24 13%

5 9%

15 10%

27 12%

3 14%

13 10%

26 14%

2 6%

16 10%

2 -

2 1%

3 1%

2 1%

69 46%

92 75%

90 58%

7 2%

129 75%

92 47%

3 2%

127 54%

26 72%

13 61%

4 2%

21 44%

128 71%

1 6%

32 16% 1 1%

1 -

16 11% 2 1%

2 1%

2 10% 1 5%

26 14% 4 2%

2 1%

8 13% 1 2%

179

23 15% 2 1%

1 1%

33 14% 5 2%

2 9%

18 14%

2 1% -

23 13%

2 1%

10 28%

8 22%

39 23%

30 25% 67 54%

14 11% 1 1%

14 23% 31 49%

8 13% -

54 26%

101 48%

23 11% 2 1%

97 66%

47 32%

96 74%

49 27%

1 18%

3 82%

17 77%

M27 E E T 7 I N G 49 S T R 13 E E T 38R E 61 S E A R5C H 31 17% 33% 27% 21% 26% 26% 23% 24%

148 37%

47 20%

168 71%

59 30%

3 1%

13 27%

109 73%

185 50%

8 2%

2 2%

-2 -65%

46 77%

1 4%

5 7%

135 58%

125 69%

88 51%

56 15%

21 42%

13 61%

98 49%

26 15%

90 43%

125 81%

198 50%

31 15%

33 54%

135 69%

3 14%

57 14%

61 50%

17 80%

98 26%

80 22%

1 3%

45 26%

34 20%

39 50%

52 26%

47 23%

23 69%

19 25%

PAGE 174

103 26%

87 22%

5 16%

37 47%

14 13%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 35-2 QUESTION 24: What is the impact of your inability to attract qualified candidates having on your company growth? BANNER 2

23 69%

7 15% -

55 24%

1 18% -

50 34%

29 19% 24 16%

16 7%

3 82%

23 16%

1 -

1 1%

3 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 35-3 QUESTION 24: What is the impact of your inability to attract qualified candidates having on your company growth?

BANNER 3

BASE=TOTAL SAMPLE **D/S (DIFFICULT - NOT DIFFICULT) TOTAL DIFFICULT ---------------

TOTAL NOT DIFFICULT ------------------VERY DIFFICULT

SOMEWHAT DIFFICULT NOT TOO DIFFICULT NOT DIFFICULT AT ALL DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

66 71%

212 71%

157 78%

115 76%

92 78%

182 46%

39 42%

103 26%

27 29%

198 50%

46 50%

147 49%

109 54%

12 13%

33 11%

13 7%

285 71% 87 22%

20 22%

57 14%

14 15%

8 2%

46 12%

3 1%

139 47% 74 25%

66 22%

41 14%

8 3%

3 1%

116 57% 41 20%

48 24%

80 53%

95 24%

101 25%

274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

57 79%

121 82%

116 80%

117 79%

15 21%

22 15%

27 19%

28 19%

67 57%

55 57%

37 37%

128 47%

79 47%

86 51%

95 56%

35 23%

25 21%

19 20%

30 30%

69 25%

43 25%

40 24%

35 21%

14 19%

79 53%

64 54%

49 52%

51 50%

134 49%

81 47%

41 58%

20 20%

30 11%

36 24%

28 24%

74 78% 25 26%

68 67% 17 17%

28 14%

25 16%

16 14%

13 14%

10 10%

2 1%

1 1%

2 2%

3 3%

2 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

10 7%

8 7%

6 6%

197 72% 63 23%

122 72% 56 33%

66 39%

126 75% 47 28%

79 47%

130 76%

50 29%

PAGE 175

43 60%

96 65%

25 17%

99 67%

87 60%

29 20%

89 61%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

87 59%

47 12%

72 18%

74 18%

73 18%

196 49%

28 59%

37 52%

36 49%

34 46%

137 70%

141 72%

10 21%

5 6%

2 3%

-3 -3%

85 43%

30 20%

18 37%

33 45%

34 46%

36 50%

53 27%

89 60%

20 43%

30 42%

26 35%

25 35%

96 49%

21 11%

24 12%

2 1%

7 15%

7 9%

10 14%

8 12%

41 21%

39 14%

27 16%

21 12%

19 11%

9 12%

18 12%

20 14%

21 14%

8 17%

12 17%

16 21%

16 22%

31 16%

5 2%

5 3%

2 1%

5 3%

1 1%

2 4%

1 2%

3 4%

2 3%

4 2%

2 1%

16 10%

19 11%

1 1%

17 10%

5 7%

1 1%

7 4%

1 1%

8 6%

91 46%

9 6%

1 1%

9 20%

20 28%

1 1%

18 24%

20 27%

1 1%

50 25%

45 23%

26 13% 4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 35-4 QUESTION 24: What is the impact of your inability to attract qualified candidates having on your company growth? BANNER 4

BASE=TOTAL SAMPLE **D/S (DIFFICULT - NOT DIFFICULT) TOTAL DIFFICULT ---------------

TOTAL NOT DIFFICULT ------------------VERY DIFFICULT

SOMEWHAT DIFFICULT NOT TOO DIFFICULT NOT DIFFICULT AT ALL DON'T KNOW REFUSED

PAGE 176

87 22%

87 100%

285 71%

87 100%

285 100%

87 22%

87 100%

87 31%

57 14%

103 26% 198 50%

46 12% 8 2%

3 1%

103 26%

43 11%

144 36%

36 84%

112 78%

285 -103 100% -100% -

198 69%

81 56%

103 100%

7 16%

31 22%

19 44%

77 54%

17 40%

35 24%

83 21%

42 11%

62 74%

13 16%

43 52%

7 2%

122 31%

93 23%

149 37%

34 81%

6 84%

84 69%

73 78%

9 20%

2 26%

24 19%

24 26%

27 64%

5 67%

48 58%

26 61%

4 57%

5 11%

21 14%

13 16%

5 13%

1 16%

1 1%

1 2%

46 45%

2 5% -

11 7% -

48 39%

56 60%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 77%

6 57%

171 80%

127 84%

96 75%

110 88%

88 82%

164 86%

98 82%

38 25%

51 24%

81 55%

1 14%

130 61%

M 19 E E T I7N G S1T R 36 E E T 17R E 33 S E A R4C H 41 22% 17% 16% 29% 18% 22% 43% 19%

57 55%

29 68%

5 6%

2 2%

2 4% -

61 49%

49 53%

76 51%

20 16%

11 12%

20 13%

2 2%

1 1%

16 13%

6 7%

1 1%

6 57%

121 56%

104 69%

65 51%

11 23%

BASE=TOTAL SAMPLE **D/S (DIFFICULT - NOT DIFFICULT) TOTAL DIFFICULT ---------------

TOTAL NOT DIFFICULT ------------------VERY DIFFICULT

SOMEWHAT DIFFICULT NOT TOO DIFFICULT NOT DIFFICULT AT ALL DON'T KNOW REFUSED

212 53%

145 36%

108 27%

92 23%

79 20%

285 71%

150 71%

112 77%

72 67%

68 75%

56 71%

182 46% 103 26%

87 22%

97 46% 53 25%

42 20%

198 50%

108 51%

46 12%

25 12%

57 14%

8 2%

3 1%

86 59% 26 18%

36 25%

76 52%

41 38% 31 29%

17 16%

55 51%

46 51% 22 24%

21 23%

47 52%

37 46%

16 36%

84 56%

66 52%

70 56%

56 53%

101 53%

71 59%

59 52%

44 57%

22 47%

11 9%

3 2%

7 4%

8 7%

17 15%

8 10%

7 14%

1 1%

43 28%

29 23%

2 1%

2 2%

4 3% -

40 32%

31 30%

63 33%

11 8%

12 11%

19 10%

1 1%

2 2%

1 1%

4 3%

2 1%

28 23% 11 9%

2 2%

20 25%

8 10%

48 61%

28 13%

17 12%

21 20%

12 13%

12 15%

7 3%

4 3%

4 4%

3 4%

3 1%

9 6%

2 2%

10 9%

1 1%

10 11%

1 1%

8 10%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

60 85%

231 72%

54 67%

44 71%

63 77%

114 74%

54 63%

218 68%

40 93%

39 73%

70 70%

43 85%

80 80%

145 67%

12 21%

25 25%

7 13%

27 27%

46 21%

154 48%

28 35%

26 42%

46 57%

75 49%

28 32%

126 40%

M E9E T 77 I N G 26 S T R 18 E E T 16R E 38 S E A 26 R C H 92 13% 24% 32% 29% 20% 25% 30% 29% 21 29%

67 21%

20 25%

15 23%

17 21%

39 25%

40 12%

17 22%

11 18%

11 14%

17 11%

14 17%

7 2%

1 1%

6 7%

39 55%

164 51%

4 5%

38 12%

5 8%

2 2%

3 1%

34 42%

8 10%

30 48%

7 11%

180

46 56% 5 6%

2 2%

75 49%

21 14%

1 1%

15 17%

60 19%

37 87%

3 7%

18 41%

26 49%

13 25%

39 45%

158 50%

22 52%

28 52%

12 14%

44 14%

9 17%

47 15%

8 3%

2 1%

3 7%

15 13%

20 18% 2 2%

14 18%

10 13% 2 3%

5 11%

10 21% 3 6%

PAGE 177

71 18%

51 72%

27 58%

18 23%

58 75%

38 33%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 35-5 QUESTION 24: What is the impact of your inability to attract qualified candidates having on your company growth? BANNER 5

74 65%

19 16%

2 1% -

46 12%

40 52%

26 14%

77 19%

37 32%

15 14%

19 15%

1 1%

114 28%

80 66%

14 11%

19 12%

10 5%

137 72%

30 24%

31 15%

1 10%

73 68%

23 15%

3 33%

13 9%

97 78%

47 47%

23 23%

37 72%

7 13%

45 45%

37 72%

11 11%

4 7%

4 8%

12 12%

1 2%

3 3%

62 62%

19 19%

53 53%

81 37%

64 30%

99 45%

3 6%

11 11%

41 19%

1 2%

1 1%

6 3%

8 8%

23 11%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 36-1 QUESTION 25: How are you navigating around the worker shortage? BANNER 1

BASE=TOTAL SAMPLE DEVELOPING CURRENT EMPLOYEE SKILLS/OFFERING INCENTIVES

140 35%

54 38%

87 22%

27 31%

48 12%

16 34%

43 11%

17 39%

82 20%

31 38%

228 57%

80 35%

172 43%

64 37%

166 42%

108 27%

16 14%

FINDING NEW EMPLOYEES

4 1%

1 1%

1 2%

1 1%

1 -

3 2%

1 -

3 3%

32 8%

12 9%

9 10%

4 8%

4 9%

5 5%

3 2%

1 1%

2 4%

1 2%

DON'T KNOW REFUSED ALL OF THE ABOVE NOTHING/NO SHORTAGE

14 4%

7 2%

19 5%

4 3%

5 3%

5 6%

1 1%

6 12%

5 6%

3 7%

Table 36-2 QUESTION 25: How are you navigating around the worker shortage? BANNER 2

BASE=TOTAL SAMPLE DEVELOPING CURRENT EMPLOYEE SKILLS/OFFERING INCENTIVES

OUTSOURCING THROUGH SUPPLIERS

ACCELERATING AUTOMATION TOOLS DEPLOYING LEAN PROCESS IMPROVEMENT EFFORTS OVERTIME/LONGER HOURS

FINDING NEW EMPLOYEES OTHER DON'T KNOW REFUSED ALL OF THE ABOVE NOTHING/NO SHORTAGE

1 2%

144 36%

201 50%

171 43%

372 93%

11 6%

23 14%

1 1%

4 2%

1 1%

3 4%

5 6%

21 5%

196 49%

67 34%

43 11%

29 14%

12 7%

41 11%

2 8%

26 13%

4 1%

2 1%

3 2%

4 1%

1 1%

42 11% 4 1%

7 2%

24 12% 2 1%

1 1%

14 8% 2 1%

5 3%

32 8%

14 7%

15 9%

7 2%

6 3%

1 1%

14 4% 19 5%

4 2%

8 4%

39 10% 4 1%

6 2%

10 4%

9 5%

13 13%

1 1%

11 7%

1 1%

13 8%

2 2%

17 14%

3 1%

1 1%

6 3%

25 12%

6 6%

1 -

2 2%

16 14%

18 9%

2 2%

1 1%

53 26%

14 18%

8 10%

1 1%

7 6%

11 6%

3 3%

11 6%

6 5%

6 8%

1 1%

16 17%

8 9%

7 15%

7 7%

35 12%

17 11%

1 1%

2 2%

1 2%

2 4%

1 1%

3 1%

4 2%

9 9%

5 5%

2 2%

6 7%

2 2%

3 3%

8 8%

25 41%

10 16% 1 2%

1 2%

2 4%

1 2%

36 36%

12 12% -

2 2%

2 3%

6 14%

11 11%

1 1%

3 5%

3 3%

4 4%

14 31%

2 5%

1 2%

5 5%

7 7%

108 36%

31 10% 4 1%

5 2%

21 7%

10 3%

7 2%

12 4%

36 23%

19 12% 2 1%

4 3%

7 21%

6 8%

1 1% -

2 2%

2 10%

4 18%

1 4%

1 1% -

5 4%

2 2%

10 6%

7 7%

3 3%

2 6%

4 5%

PAGE 179

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

39 20%

66 4 67 17 56 84 6 48 43% M E E 20% T I N G37% S T R28% E E T37%R E36% S E A27% R C H37% 35 4 29 16 35 45 6 28 23% 18% 16% 27% 23% 19% 29% 22%

22 11%

15 10%

2 1%

4 2%

12 8%

3 13%

26 14%

4 7%

3 2%

1 1%

1 2%

2 1%

2 9%

1 4%

21 11%

2 1%

4 2%

11 7%

32 14%

2 2%

2 1%

5 8%

17 11%

1 2%

1 1%

3 2%

26 11%

2 1%

2 9%

172 43%

123 31%

62 15%

208 52%

49 12%

11 32%

30 17%

20 16%

15 24%

49 23%

8 16%

38 17%

1 24%

40 27%

4 10%

17 10%

15 12%

7 11%

21 10%

6 12%

26 11%

17 11%

2 1%

4 3%

3 1%

1 1%

7 19%

8 6%

24 13%

2 6%

2 1%

13 10%

2 1%

36 9%

61 33%

4 17%

181 45%

5 4%

38 21%

22 12%

2 1%

2 6%

2 5%

73 43% 15 9%

2 1%

3 2%

44 36%

16 13%

1 1%

2 2%

24 38%

8 13%

1 1%

72 35% 17 8%

3 1%

4 2%

20 41% 1 2%

1 2%

3 14%

10 8%

14 8%

6 16%

11 6%

7 5%

4 6%

21 10%

3 7%

7 2%

3 1%

5 3%

1 1%

3 5%

4 2%

4 3%

2 1%

5 3%

5 4%

3 1%

2 3%

13 7%

4 2%

1 5%

4 2%

12 7%

2 3%

3 5%

M E E T I N G S T R E E T

181

9 6% 4 2%

9 4%

13 6%

1 3%

R E S E A R C H

5 4%

7 4%

9 5%

1 3%

1 4%

5 3%

8 5%

7 6%

3 2%

1 1%

3 6%

7 3%

12 6%

3 1%

4 2%

17 7%

2 8%

27 12%

3 7%

8 6%

2 1%

100 43%

4 2%

8 14%

8 4%

233 58%

2 4%

15 8%

1 3%

5 6%

1 1%

7 5%

5 22%

2 9%

4 12%

4 5%

10 6%

18 5%

12 12%

12 11%

1 3%

11 6%

10 6%

12 16%

43 56%

11 10%

3 16%

12 3%

7 21%

12 37%

14 9%

29 8%

8 5%

15 14%

39 37%

7 33%

76 20%

5 2%

14 14%

77 19%

137 37%

37 22%

5 3%

21 9%

64 38%

39 19%

2 1%

3 4%

72 36%

83 21%

5 2%

3 2%

16 15%

33 8%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

2 2%

7 11%

11 7%

7 2%

14 15%

22 13%

OTHER

43 28%

3 2%

21 9%

1 -

63 21%

1 1%

11 13%

4 2%

20 20%

10 10%

7 15%

1 1%

11 23%

9 10%

5 9%

11 19%

8 10%

10 11%

17 18%

15 13%

11 8%

1 1%

107 27%

20 10%

42 11%

3 2%

157 39%

13 12%

DEPLOYING LEAN PROCESS IMPROVEMENT EFFORTS

4 1%

299 75%

17 15%

44 26%

OVERTIME/LONGER HOURS

100 25%

13 8%

32 18%

16 9%

46 12%

36 37%

51 23%

26 12%

60 15%

35 38%

14 17%

10 12%

97 24%

41 52%

9 21%

4 9%

91 23%

51 43%

9 19%

3 5%

79 20%

52 26%

20 23%

8 10%

117 29%

46 46%

31 22%

18 13%

202 51%

47 44%

83 21%

43 11%

101 25%

42 25%

OUTSOURCING THROUGH SUPPLIERS

ACCELERATING AUTOMATION TOOLS

PAGE 178

3 6%

3 1%

1 30% -

148 37%

42 28% 13 9%

2 1%

3 2%

13 6%

1 28%

13 9%

7 3%

1 18%

10 7%

9 6%

Table 36-3 QUESTION 25: How are you navigating around the worker shortage? BANNER 3

BASE=TOTAL SAMPLE DEVELOPING CURRENT EMPLOYEE SKILLS/OFFERING INCENTIVES OUTSOURCING THROUGH SUPPLIERS

ACCELERATING AUTOMATION TOOLS DEPLOYING LEAN PROCESS IMPROVEMENT EFFORTS OVERTIME/LONGER HOURS

FINDING NEW EMPLOYEES OTHER DON'T KNOW REFUSED ALL OF THE ABOVE NOTHING/NO SHORTAGE

92 23%

298 74%

202 50%

151 38%

119 30%

17 19%

60 20%

41 20%

30 20%

15 12%

144 36%

33 36%

43 11%

13 14%

30 10%

28 14%

1 1%

4 1%

1 1%

83 21% 42 11%

4 1%

7 2%

12 13%

2 2%

32 8%

9 10%

7 2%

1 1%

14 4%

19 5%

5 5%

109 37%

30 10%

4 1%

5 2%

22 7%

14 5%

6 2%

12 4%

77 38%

22 11%

2 1%

5 3%

8 4%

2 1%

7 4%

Table 36-4 QUESTION 25: How are you navigating around the worker shortage? BANNER 4

BASE=TOTAL SAMPLE DEVELOPING CURRENT EMPLOYEE SKILLS/OFFERING INCENTIVES

OUTSOURCING THROUGH SUPPLIERS

ACCELERATING AUTOMATION TOOLS

400 100% 144 36%

83 21%

43 11%

87 22%

35 40%

13 15%

17 20%

285 71%

112 39%

103 26%

31 30%

13 14%

1 1%

12 10%

9 10%

3 2%

2 2%

5 3%

4 3%

3 4%

5 3%

1 1%

3 2%

7 4%

4 3%

5 4%

1 1%

4 4%

37 37%

274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

72 18%

74 18%

73 18%

196 49%

26 18%

28 19%

25 17%

10 21%

15 20%

13 18%

11 16%

35 18%

45 23%

19 13%

5 10%

4 6%

7 9%

6 9%

22 11%

20 10%

1 1%

62 36%

62 37%

53 31%

36 51%

61 41%

4 4%

31 11%

20 12%

18 11%

22 13%

5 8%

14 9%

15 10%

14 10%

2 2%

4 1%

1 1%

2 1%

2 2%

1 1%

8 8%

27 10%

4 1%

39 23% 8 5%

39 23% 9 5%

2 1%

43 25% 17 10%

9 13%

29 20%

3 2%

1 1%

6 2%

4 2%

5 3%

3 2%

6 6%

10 4%

5 3%

6 4%

3 2%

16 16%

5 5%

20 7%

5 2%

16 6%

14 8%

3 2%

11 7%

10 6%

10 14%

1 1%

2 1%

59 40%

47 12%

90 33%

61 22%

26 18%

2 1%

63 43%

1 1%

3 2%

14 8%

4 6%

5 4%

6 4%

5 4%

3 2%

2 3%

3 2%

5 3%

4 3%

8 5%

1 1%

2 1%

3 4%

3 2%

6 4%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

4 3%

7 5%

17 36%

20 29%

6 12%

8 12%

1 1%

2 2%

1 2%

1 1%

21 28%

26 36%

10 13%

81 41%

6 9%

3 4%

18 9%

1 1%

1 2%

61 31%

23 12%

3 2%

3 1%

2 1%

5 2%

6 13%

9 13%

9 12%

11 15%

14 7%

17 9%

1 1%

7 4%

3 6%

7 10%

3 4%

8 11%

6 8%

3 4%

4 2%

4 5%

10 5%

9 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

2 2%

4 1%

1 1%

7 2%

2 2%

14 4%

2 2%

32 8% 7 2%

19 5%

4 2%

6 2%

1 1%

11 4%

16 16%

4 5%

7 3%

2 2%

5 2%

4 2%

144 36%

4 1%

43 11%

FINDING NEW EMPLOYEES

NOTHING/NO SHORTAGE

19 16%

17 11%

43 100%

19 18%

36 13%

7 7%

REFUSED

22 22%

22 15%

7 7%

62 22%

34 12%

ALL OF THE ABOVE

17 18%

41 43%

144 100%

9 10%

DON'T KNOW

101 25%

53 45%

42 11%

OTHER

57 38%

95 24%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 180

PAGE 181

DEPLOYING LEAN PROCESS IMPROVEMENT EFFORTS

OVERTIME/LONGER HOURS

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

8 8%

14 14%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

26 22%

17 19%

29 20%

3 32%

43 20%

26 17%

22 17%

10 8%

12 13%

18 12%

2 18%

34 16%

21 14%

20 15%

16 13%

15 14%

21 11%

1 1%

3 2%

1 1%

2 2%

1 1%

1 -

6 3%

3 2%

5 4%

2 1%

M E-E T I-N G S-T R 47 E E T 32R E 61 S E A R2C H 89 38% 34% 41% 18% 41%

83 100% -

42 100%

13 10%

1 1%

7 100%

1 1%

5 4%

9 9%

1 1%

2 2%

4 2%

2 21%

5 4%

3 2%

4 4%

182

2 1%

10 11%

M E E T I N G S T R E E T

3 2%

1 12%

4 4%

8 6%

9 7%

18 12%

2 2%

6 4%

1 1%

29 14%

R E S E A R C H

4 2%

1 -

5 2%

4 2%

73 48%

17 11% 3 2%

57 44%

17 13% 1 1%

4 3%

2 1%

1 1%

5 3%

1 1%

6 4%

1 1%

125 31%

50 40%

24 19%

16 13% -

2 2%

6 5%

1 1%

106 27%

53 49%

15 14%

10 10% 2 2%

191 48%

90 47%

35 18%

28 15% 3 1%

120 30%

42 35%

21 18%

17 14%

11 10%

9 11%

1 2%

2 2%

3 2%

9 7%

15 13%

3 2%

2 2%

2 1%

3 3%

1 1%

5 4%

2 2%

16 35%

12 25%

3 2%

6 3%

25 32%

46 12%

24 32%

2 1%

3 3%

33 29%

77 19%

26 23%

16 13%

2 2%

3 2%

114 28%

12 11% 2 2%

7 9% -

2 2%

4 3%

2 3%

9 8%

4 8% -

1 2%

4 6%

7 16%

2 2%

1 2%

2 3%

1 3%

3 6%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 36-5 QUESTION 25: How are you navigating around the worker shortage? BANNER 5

BASE=TOTAL SAMPLE DEVELOPING CURRENT EMPLOYEE SKILLS/OFFERING INCENTIVES OUTSOURCING THROUGH SUPPLIERS

ACCELERATING AUTOMATION TOOLS DEPLOYING LEAN PROCESS IMPROVEMENT EFFORTS OVERTIME/LONGER HOURS FINDING NEW EMPLOYEES OTHER DON'T KNOW REFUSED ALL OF THE ABOVE NOTHING/NO SHORTAGE

PAGE 182

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

83 21%

41 19%

28 20%

26 24%

20 22%

20 25%

11 15%

67 21%

16 20%

19 13%

11 10%

11 12%

10 13%

8 11%

31 10%

12 14%

1 1%

3 1%

1 1%

144 36% 43 11% 42 11%

4 1%

79 37% 20 9% 19 9%

2 1%

61 42% 14 10%

33 31%

16 15% -

2 1%

1 1%

32 8%

24 11%

7 5%

13 12%

7 2%

5 2%

5 3%

7 2%

14 4%

19 5%

2 1% 9 4%

10 5%

3 2% 2 1%

5 3%

36 39%

10 11%

6 8%

1 1%

2 2%

1 1%

3 3%

5 4%

31 39%

1 1%

5 6%

3 3%

9 13%

1 1%

2 3%

109 34% 42 13%

4 1%

6 2%

36 44% 1 1%

1 1%

154 39%

87 22%

320 80%

14 22%

20 24%

29 19%

18 21%

68 21%

4 10%

10 19%

6 10%

12 15%

15 10%

7 9%

34 11%

5 11%

3 6%

12 12%

2 2%

1 1%

5 9%

28 44%

7 11%

1 2%

32 39%

9 11%

1 1%

53 34% 13 9%

4 2%

5 3%

28 32%

12 14%

1 1%

4 5%

2 3%

25 8%

7 9%

2 4%

3 4%

14 9%

12 14%

3 4%

5 2%

2 2%

6 4%

2 2%

1 1%

3 3%

36 50%

82 20%

5 6%

1 1%

13 4%

16 5%

2 2%

3 4%

1 1%

4 7%

3 4%

6 4%

10 6%

4 5%

2 2%

103 32%

34 11% 4 1%

4 1%

7 2%

43 11%

22 51%

6 15% -

7 13% 1 2%

1 2%

4 7%

1 -

5 11%

17 5%

20 36%

32 10%

14 5%

54 10%

1 2%

3 5%

100 19%

51 10%

40 40%

19 38%

8 8%

6 11%

13 13%

11 21%

100 19%

218 42%

39 39%

75 34%

9 9%

26 12%

1 1%

4 2%

5 2%

17 17%

50 23%

7 15%

17 17%

1 1%

1 2%

2 2%

8 8%

4 8%

6 6%

21 10%

3 3%

1 2%

1 1%

4 2%

3 3%

8 8%

4 4%

1 2%

3 3%

5 5%

20 9% 1 -

5 2%

9 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 37-1 QUESTION 26: When looking to hire new employees, where is your need greatest? BANNER 1

BASE=TOTAL SAMPLE EMPLOYEES WITH ON THE JOB EXPERIENCE

ENTRY LEVEL EMPLOYEES EMPLOYEES WITH FORMAL TECHNICAL TRAINING

EMPLOYEES WITH FOUR-YEAR COLLEGE DEGREES

OTHER

DEPENDS DON'T KNOW REFUSED NOT APPLICABLE/NOT HIRING

PAGE 183

140 35%

122 31%

28 20%

149 37%

87 22%

48 12%

43 11%

82 20%

50 36%

27 31%

14 29%

20 46%

38 47%

93 23%

41 29%

19 22%

10 21%

8 19%

15 18%

2 1%

2 2%

10 2%

4 1%

10 3%

5 1%

4 1%

6 5%

3 2%

4 3%

2 1%

33 38% 2 2% -

1 2%

22 46% -

2 2%

2 4%

1 1%

14 33% -

1 2%

25 30% 1 1% -

2 2%

1 1%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

78 72 65 43 35 82 38 28 34% 42% 39% 40% 35% 41% 33% 36% M E E T I N G S T R E E T R E S E A R C H 61 61 46 38 29 53 44 26 27% 35% 28% 35% 29% 26% 37% 32% 60 26%

9 4%

2 1%

4 2%

33 19%

1 1% -

5 3% -

1 1%

1 -

3 2%

6 3%

4 2%

3 1%

1 1%

5 2%

36 22%

6 3% 4 2%

23 21%

28 28%

2 2%

46 23%

28 24%

18 23%

1 1%

2 2%

6 3%

2 2%

1 1%

2 2%

4 2%

1 1% -

7 3% 4 2%

3 2%

1 1%

2 1%

1 2%

2 2%

2 2% -

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

22 22%

9 15%

9 19%

31 31%

92 31%

44 28%

2 2%

1 2%

4 9%

4 4%

5 2%

3 2%

33 36%

40 41%

13 14%

27 28%

1 1%

37 40% 1 1% -

3 3%

4 4%

1 1%

2 2%

2 2% -

2 2%

32 53%

15 26% -

1 1%

14 30%

19 41% -

36 36%

19 19% -

3 3%

112 37% 73 24% 2 1%

2 1%

72 46%

26 17% -

1 1%

33 8%

77 19%

29 27%

12 37%

30 39%

4 4%

1 3%

1 1%

33 31%

33 31% -

2 2%

1 1%

1 2%

2 2%

8 3%

6 4%

2 2%

1 2%

3 3%

1 -

1 1%

4 1%

3 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 37-2 QUESTION 26: When looking to hire new employees, where is your need greatest? BANNER 2

BASE=TOTAL SAMPLE EMPLOYEES WITH ON THE JOB EXPERIENCE ENTRY LEVEL EMPLOYEES EMPLOYEES WITH FORMAL TECHNICAL TRAINING

EMPLOYEES WITH FOUR-YEAR COLLEGE DEGREES OTHER

DEPENDS DON'T KNOW REFUSED NOT APPLICABLE/NOT HIRING

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

11 32%

7 22%

25 32%

17 22%

2 3%

2 6%

PAGE 184

155 39%

21 5%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

17 35%

70 30%

148 37%

2 59%

47 32%

73 47%

46 36%

74 41%

12 34%

62 36%

45 37%

26 42%

74 36%

19 40%

93 23%

43 22%

43 25%

86 23%

5 26%

45 23%

33 18%

9 26%

50 29%

31 25%

18 30%

43 21%

8 16%

59 25%

1 24%

31 21%

2 1%

36 3 36 21 34 53 6 34 23% 13% 20% 35% 22% 22% 25% 26% M E E T I N G S T R E E T R E S E A R C H 3 1 4 1 5 6 1 3 2% 5% 2% 2% 3% 3% 5% 2%

2 1%

10 2%

4 1%

10 3%

5 1%

4 1%

7 3%

1 1%

3 1%

4 2%

2 1%

3 2%

4 2%

2 1%

1 1%

10 3%

4 1%

6 2%

2 12%

3 1%

1 5%

5 1%

5 3%

1 1%

3 1%

2 1%

35 22%

6 27%

54 30%

18 30%

6 3%

1 3%

3 2%

4 3%

5 3%

4 2%

2 6%

2 1%

1 1%

1 2%

8 4%

2 3%

1 1%

1 5%

1 1%

2 4%

1 1%

3 1%

1 1%

1 3%

3 2%

4 2%

3 2%

2 1%

2 3%

183

2 1%

4 2%

2 1%

3 1%

1 3%

1 -

2 1%

1 1%

3 2%

2 3%

3 3%

68 33%

2 10%

3 1%

2 2%

16 26%

2 1%

2 2%

1 -

36 29%

3 2%

49 28%

2 3%

1 1%

2 1%

9 25%

4 2%

2 1%

58 32%

2 10%

38 29%

3 2%

1 -

2 1%

6 27%

2 1%

1 7%

1 1%

70 30%

1 1%

49 33%

3 1%

89 38%

3 1%

63 32%

72 37%

7 32%

129 32%

7 32%

5 25%

94 40%

22 6%

138 37%

117 31%

54 36%

236 59%

70 41%

46 27%

14 24%

150 37%

68 34%

71 35%

78 43%

59 15%

149 37%

122 31%

7 33%

181 45%

6 2%

4 2%

2 4%

2 1%

1 -

1 18%

56 38%

4 3% -

5 3%

2 1%

3 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 37-3 QUESTION 26: When looking to hire new employees, where is your need greatest? BANNER 3

BASE=TOTAL SAMPLE EMPLOYEES WITH ON THE JOB EXPERIENCE ENTRY LEVEL EMPLOYEES

EMPLOYEES WITH FORMAL TECHNICAL TRAINING

EMPLOYEES WITH FOUR-YEAR COLLEGE DEGREES OTHER

DEPENDS DON'T KNOW REFUSED NOT APPLICABLE/NOT HIRING

92 23%

298 74%

202 50%

151 38%

119 30%

91 30%

65 32%

39 26%

31 26%

149 37%

31 33%

112 38%

93 23%

24 26%

67 23%

122 31%

10 2%

2 1%

4 1%

29 32%

3 3%

2 2%

1 1%

7 2%

1 -

3 1%

70 35%

50 25%

6 3%

1 -

4 2%

63 42%

34 22%

6 4%

2 1%

95 24%

101 25%

28 29%

37 37%

51 43%

40 42%

27 23%

19 20%

4 3%

2 1%

1 1%

4 4%

1 1%

37 37%

19 19%

2 2%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

81 30%

51 30%

46 27%

109 40%

59 22%

6 2%

2 1%

3 1%

60 35%

48 28%

2 1%

2 1% 1 -

66 39%

41 24%

3 2%

2 1% -

2 1%

4 3%

1 1%

38 26%

4 3%

35 24%

2 1%

3 2%

4 2%

4 1%

3 1%

1 1%

2 2%

3 1%

2 1%

1 1%

33 22%

2 2%

4 2%

2 1%

1 1%

7 3%

3 1%

46 31%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

60 41%

3 2%

3 3%

1 1%

48 33%

50 34%

4 3%

2 2%

47 32%

58 39%

3 2%

1 1%

3 2%

23 32%

1 1%

3 2%

147 37%

1 1%

3 2%

2 1%

146 36%

22 31%

8 3%

5 2%

147 37%

50 29%

3 3%

71 18%

23 33%

10 3%

5 1%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

62 36%

3 2%

PAGE 185

47 12%

72 18%

74 18%

73 18%

196 49%

19 39%

23 31%

23 32%

30 41%

60 31%

59 30%

13 27%

30 42%

9 19%

29 39%

10 14%

3 6%

11 15%

4 5%

5 6%

2 3%

5 6%

3 4%

1 2%

7 10%

3 4%

3 7%

25 34%

5 7%

3 4%

2 2%

70 36%

43 22%

9 5%

77 39%

46 24%

1 -

2 1%

3 1%

2 1%

5 3%

3 1%

1 -

3 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 37-4 QUESTION 26: When looking to hire new employees, where is your need greatest? BANNER 4

BASE=TOTAL SAMPLE EMPLOYEES WITH ON THE JOB EXPERIENCE

ENTRY LEVEL EMPLOYEES

EMPLOYEES WITH FORMAL TECHNICAL TRAINING

EMPLOYEES WITH FOUR-YEAR COLLEGE DEGREES

OTHER

DEPENDS DON'T KNOW REFUSED NOT APPLICABLE/NOT HIRING

PAGE 186

87 22%

285 71%

149 37%

38 44%

93 23%

24 27%

73 25%

2 1%

2 2%

2 1%

10 3%

4 1%

122 31% 10 2%

4 1%

5 1%

24 27% -

114 40%

84 30% 6 2%

3 1%

2 1%

103 26%

33 32%

36 35%

43 11%

18 41%

13 30%

144 36%

61 42%

47 32%

17 16%

9 21%

32 22%

2 4%

1 1%

4 4%

1 3%

2 1%

2 2%

1 2%

1 1%

4 4%

2 1%

7 6%

2 1%

1 1%

83 21%

29 35%

42 11%

7 2%

122 31%

93 23%

1 14%

122 100%

125 31%

106 27%

191 48%

120 30%

BASE=TOTAL SAMPLE EMPLOYEES WITH ON THE JOB EXPERIENCE ENTRY LEVEL EMPLOYEES EMPLOYEES WITH FORMAL TECHNICAL TRAINING

EMPLOYEES WITH FOUR-YEAR COLLEGE DEGREES

OTHER

DEPENDS DON'T KNOW REFUSED NOT APPLICABLE/NOT HIRING

212 53%

145 36%

108 27%

92 23%

29 37%

17 36%

17 12 4 93 47 21% 29% 56% - 100% 22% M E E T I N G S T R E E T R E S E A R C H 3 2 10 5 4% 4% - 100% 2%

31 21%

37 29%

33 27%

33 31%

47 24%

34 29%

21 19%

20 26%

9 20%

2 2%

2 1%

2 2%

2 1%

4 2%

27 22% 1 1%

2 1%

3 2%

2 1%

1 1%

2 2%

1 1%

149 37%

80 38%

58 40%

36 34%

31 34%

28 35%

93 23%

45 21%

35 24%

26 24%

23 25%

25 31%

2 2%

122 31% 10 2%

2 1%

66 31% 5 2% 1 -

4 1%

2 1%

5 1%

3 1%

10 3% 4 1%

8 4%

3 1%

45 31% -

31 29% 6 5%

1 1%

2 1%

6 4%

1 1%

2 2%

1 1%

31 33% 2 2%

19 24% 2 2% -

1 1%

1 2%

3 3%

1 1%

2 3% -

27 38%

22 31%

120 38%

93 29%

81 20%

29 35%

30 37%

62 16%

24 39%

25 40%

82 20%

35 42%

19 24%

154 39%

52 34%

54 35%

1 -

87 22%

2 1% -

1 1%

35 41%

18 21%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

97 30%

16 37%

19 34%

37 37%

14 28%

30 30%

60 28%

120 38%

8 2%

2 2%

1 2%

3 3%

1 2%

3 1%

1 1%

5 1%

1 1%

2 3% -

2 1%

8 3%

4 1%

2 2%

2 3%

184

2 1%

2 2%

9 3%

3 2%

2 2%

3 1%

1 1%

4 2%

3 3% -

2 2% -

1 1%

5 6%

1 1%

3 4%

13 31%

10 23%

1 2%

1 -

2 4%

9 3%

4 1%

2 4% -

3 2%

1 1%

23 30% 1 1% -

17 36% 1 2% -

2 2%

2 4%

1 1%

1 2%

2 2%

PAGE 187

320 80%

18 75 17 10 21 37 20 74 M25% E E T24% I N G21% S T R16% E E T26%R E24% S E A23% R C H23% 1 1%

2 2%

319 80%

4 4%

3 2%

71 18%

31 27%

3 2%

3 3%

55 29%

2 2%

21 20%

3 2%

2 2%

37 30%

2 1%

34 26%

3 2%

2 1%

49 32%

4 2%

4 5%

1 1%

61 28%

79 20%

46 12%

50 44%

77 19%

51 42%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 37-5 QUESTION 26: When looking to hire new employees, where is your need greatest? BANNER 5

114 28%

79 41%

128 32%

41 39%

149 100%

151 38%

46 37%

214 54%

50 39%

1 1%

10 2%

61 41%

10 24%

2 30%

149 37%

92 43%

26 32%

18 43%

18 34%

12 22%

1 3%

33 33%

24 24% -

3 5%

4 4%

1 1%

1 2%

26 51%

44 44%

74 34%

10 19%

21 21%

56 26%

1 1%

2 1%

1 2%

3 3%

2 2%

9 4%

3 1%

6 3%

5 2%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 38-1 QUESTION 27: What types of manufacturing jobs or positions are in most demand at your company? BANNER 1

BASE=TOTAL SAMPLE MACHINE OPERATOR ASSEMBLER/MANUFACTURER/ FABRICATOR

WELDER

FRONT OFFICE OR ADMINISTRATIVE HELP

ENGINEER

SUPERVISOR SENIOR LEADERSHIP POSITION ENTRY LEVEL/GENERAL LABORER/LABORER

TECHNICAL/SKILLED LABORER SALES NONE/NOT APPLICABLE OTHER DON'T KNOW REFUSED

PAGE 188

140 35%

55 39%

87 22%

31 36%

48 12%

23 48%

43 11%

19 43%

82 20%

25 31%

111 28%

36 26%

25 28%

18 4%

6 4%

4 5%

8 2%

4 3%

2 2%

1 3%

1 2%

3 3%

3 4%

1 2%

2 2%

30 7% 17 4%

7 2%

4 1%

6 4%

9 6%

1 1%

8 9%

5 5%

1 2%

7 17%

27 32%

3 7%

4 5%

4 1%

4 3%

5 1%

2 1%

2 2%

1 3%

8 6%

5 5%

4 7%

4 1%

11 3%

7 5%

8 2%

3 2%

21 5%

17 35%

2 2%

3 8%

13 16%

228 57%

86 38%

172 43%

67 39%

166 42%

45 27%

108 27%

40 37%

61 27%

51 29%

50 30%

36 34%

10 5%

8 4%

13 8%

4 3%

13 6%

16 9%

10 6%

101 25%

58 57%

17 17%

8 8%

10 10% -

202 51%

55 27%

117 29%

49 42%

58 28%

35 30%

17 8%

1 1%

18 9%

79 20%

48 61%

6 5%

91 23%

30 33%

97 24%

18 31%

7 14%

8 8%

21 7%

10 6%

3 4%

4 4%

2 3%

10 10%

4 4%

3 3%

11 5%

5 4%

1 1%

4 4%

7 7%

1 2%

5 10%

3 7%

2 2%

2 1%

5 3%

2 2%

5 3%

2 2%

3 3%

2 2%

2 3%

4 2%

1 1%

3 2%

1 1%

5 3%

2 5%

1 2%

2 3%

3 3%

1 -

3 2%

3 1%

1 1%

7 3%

4 2%

13 6%

5 2%

8 4%

4 2%

1 1%

2 1%

1 1%

6 3%

3 3%

14 8%

6 3%

2 2%

3 3%

1 -

3 1%

2 2%

6 3%

3 3%

1 1%

2 2%

3 1%

1 1%

5 2%

13 7% 6 3%

5 4%

1 1%

2 1%

1 2%

2 1%

1 1%

1 2%

1 1%

1 2%

2 2%

1 1%

5 5%

3 3%

2 3%

2 2%

1 1%

2 2%

5 5% 1 1%

2 4%

2 2%

1 1%

5 4%

1 1%

2 2%

4 3%

2 2%

1 1%

3 5% 2 3%

26 26%

1 2%

6 6%

2 2%

21 19%

2 2%

7 4%

3 3%

51 33%

4 2%

3 2%

107 27%

126 42%

15 32%

13 6%

2 1%

157 39%

27 27%

9 15%

2 2%

6 3%

299 75%

11 23%

24 25%

2 5%

100 25%

20 34%

33 36%

46 12%

52 53%

19 23% 5 6%

60 15%

85 28%

8 3%

6 4%

4 4%

13 4%

7 5%

2 2%

5 2%

5 3%

1 1%

5 2%

3 1%

2 1%

2 6%

7 7%

6 5%

3 3%

1 1%

2 2%

3 1%

1 -

3 6% 1 2%

7 7% 3 3%

14 5% 5 2%

7 4%

11 7% 4 3%

BASE=TOTAL SAMPLE MACHINE OPERATOR ASSEMBLER/MANUFACTURER/ FABRICATOR

WELDER

FRONT OFFICE OR ADMINISTRATIVE HELP ENGINEER

SUPERVISOR SENIOR LEADERSHIP POSITION

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

111 28%

56 28%

49 29%

105 28%

18 4%

9 5%

18 5%

152 38% 30 7% 17 4% 8 2%

7 2%

88 44% 12 6% 8 4% 1 1%

3 1%

54 31% 16 9% 7 4% 6 4%

3 2%

ENTRY LEVEL/GENERAL LABORER/LABORER

4 1%

3 2%

1 1%

SALES

4 1%

2 1%

TECHNICAL/SKILLED LABORER

NONE/NOT APPLICABLE OTHER DON'T KNOW REFUSED

4 1%

1 -

372 93%

142 38% 28 7%

21 5%

6 31%

60 31%

12 6%

74 38%

12 6%

21 5%

181 45%

42 27%

6 27%

2 1%

2 9%

4 3%

2 1%

62 40%

15 10%

15 4%

1 4%

9 5%

7 5%

5 1%

1 3%

4 2%

2 1%

7 2%

4 1%

3 2%

4 1%

1 5%

4 2%

1 1%

1 -

1 1%

3 2%

6 30%

1 5%

59 15%

150 37%

236 59%

55 30%

14 24%

40 27%

70 30%

4 2%

3 5%

11 8%

74 41%

16 9%

25 42%

3 5%

1 1%

2 2%

1 3%

1 1%

4 4%

2 6%

1 1%

3 3%

PAGE 189

33 25%

47 26%

15 6%

3 14%

11 5%

12 9%

5 4%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

5 15%

70 41%

50 40%

26 43%

73 35%

19 39%

111 48%

12 7%

6 17%

11 7%

7 5%

5 8%

17 8%

5 10%

17 7%

11 6%

9 26% 3 8%

53 31% 4 2%

41 33% 6 5%

13 21% 4 7%

55 26% 8 4%

10 21% 1 2%

3 1%

1 24%

148 37%

38 26%

58 25%

1 28%

50 34%

6 3%

1 30%

10 6%

5 2%

3 2%

1 3%

12 5%

1 1%

4 3%

5 2%

2 1%

3 2%

2 2%

1 1%

4 2%

2 4%

3 1%

3 2%

2 2%

2 1%

3 2%

2 1%

2 2%

2 1%

1 2%

3 1%

1 1%

1 -

1 3%

3 2%

4 10%

1 1%

4 2%

1 18%

3 2%

9 5%

4 11%

1 1%

5 7%

6 2%

1 -

1 2%

1 1%

2 1%

2 10%

7 4%

6 4%

2 9%

9 5%

4 6%

1 5%

2 9%

5 3%

4 2%

1 1%

2 4%

M E E T I N G S T R E E T

185

4 3%

3 2%

5 3%

7 4%

2 1%

5 2%

1 -

2 1%

1 4%

5 2%

1 4%

10 4% 4 2%

3 13% -

R E S E A R C H

3 2%

3 2% 1 1%

5 4%

6 5%

4 3%

4 2%

1 1% 2 1%

5 3%

4 2%

1 3%

1 2%

4 2%

3 2% 1 1%

4 3%

6 4%

4 2%

4 3%

1 1% 1 1%

1 1%

3 2%

1 2%

1 2% -

1 2%

1 1%

3 2%

2 1% 3 1%

9 4%

15 7%

5 2%

2 3% -

3 5%

3 7%

2 4%

3 1% 2 1%

3 1%

5 2%

11 8%

8 4%

18 5%

2 2%

5 25%

36 9%

70 39%

4 6%

8 5%

3 1%

181 45%

42 33%

5 4%

10 5%

3 2%

129 32%

6 25%

5 3%

21 5%

5 2%

9 6%

22 6%

98 42%

3 8%

3 5%

1 1%

9 5%

2 1%

8 2%

4 5%

6 5%

1 5%

6 4%

1 1%

3 13%

2 1%

8 3%

2 1%

8 2%

8 5%

2 8%

51 34%

1 2%

3 1%

10 3%

1 1%

3 5%

3 2%

2 1%

5 3%

3 4%

5 3%

1 1%

5 2%

3 3%

5 1%

11 3%

3 4%

4 5%

MN BUSINESS CAPITAL STATUS ECONOMY IN 2019 CLIMATE GROSS REVENUES PROFITABILITY EXPENDITURES QUO EMPLOYEE WAGES M E E T I ================== N G S T R E E T R================= E S E A R C H ================= ================= ================= ====== =================

196 49%

8 38%

37 48%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 38-2 QUESTION 27: What types of manufacturing jobs or positions are in most demand at your company? BANNER 2

3 3%

1 2%

7 2%

1 3%

2 7%

1 1%

4 4%

1 3%

2 2%

1 1%

2 5%

20 25%

12 11%

3 1%

1 1%

10 29%

14 43%

1 1%

3 1%

77 19%

41 39%

1 1%

33 8%

4 3%

2 1% 2 1%

7 5%

12 8% 2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 38-3 QUESTION 27: What types of manufacturing jobs or positions are in most demand at your company? BANNER 3

BASE=TOTAL SAMPLE MACHINE OPERATOR ASSEMBLER/MANUFACTURER/ FABRICATOR WELDER

FRONT OFFICE OR ADMINISTRATIVE HELP ENGINEER

SUPERVISOR SENIOR LEADERSHIP POSITION

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

111 28%

23 25%

84 28%

58 29%

39 26%

32 27%

24 25%

36 36%

18 4%

2 2%

15 5%

6 3%

8 2%

1 1%

152 38% 30 7% 17 4%

7 2%

42 45% 3 3% 5 6%

1 1%

109 37% 25 8% 12 4%

7 2%

6 2%

90 45%

14 7%

8 4%

4 2%

65 43%

13 9%

8 8%

5 3%

1 1%

2 2%

7 5%

3 2%

3 1%

3 2%

1 1%

SALES

4 1%

1 -

NONE/NOT APPLICABLE OTHER DON'T KNOW REFUSED

5 1%

11 3%

1 1%

8 2%

3 3%

21 5%

7 8%

2 1%

3 1%

2 1%

1 1%

5 4%

3 3%

5 5%

2 2%

169 42%

171 43%

80 29%

49 29%

45 27%

41 24%

90 33%

22 8%

17 6%

13 5%

7 2%

5 2%

56 33%

13 8%

60 36%

14 8%

9 5%

7 4%

9 5%

3 2%

5 3%

3 2%

65 38%

15 9%

8 4%

71 18%

147 37%

146 36%

147 37%

18 26%

42 28%

43 30%

7 5%

40 56%

4 6%

8 5%

7 4%

2 3%

4 2%

1 1%

4 2%

69 47%

6 4%

1 1%

3 2%

1 1%

64 44% 6 4%

6 4%

4 3%

3 2%

72 18%

74 18%

73 18%

196 49%

48 32%

13 27%

21 29%

21 28%

22 30%

54 28%

58 29%

5 4%

1 2%

3 4%

5 7%

12 6%

6 3%

60 41% 10 7%

8 5%

3 2%

2 1%

3 1%

1 1%

2 1%

1 1%

3 2%

2 2%

2 1%

1 1%

2 1%

1 1%

2 2%

5 2%

2 1%

3 3%

1 1%

2 2%

4 4%

2 2%

3 3%

10 10% 3 3%

2 1%

5 2%

8 3%

16 6% 4 2%

2 1%

4 2%

3 2%

4 2%

13 8%

3 2%

2 1%

3 2%

15 9% 3 2%

1 1%

3 2%

4 2%

1 1%

2 1%

2 2%

2 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

1 1%

3 3%

4 2%

6 4%

170 42%

3 3%

3 2%

4 2%

5 2%

4 4%

274 68%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

1 1%

10 3%

13 4%

8 8%

3 3%

1 2%

2 3%

7 8%

21 20%

2 1%

4 1%

8 7%

42 45%

4 2%

ENTRY LEVEL/GENERAL LABORER/LABORER

TECHNICAL/SKILLED LABORER

56 48%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 190

19 41%

23 32%

2 4%

7 10%

9 12%

2 4%

5 6%

3 4%

2 3%

1 2%

2 3%

1 2%

2 2%

1 2%

3 5%

2 4%

3 5%

1 2%

3 4%

3 7%

1 2%

1 1%

1 2%

3 2%

2 3%

1 2%

4 3%

4 5%

1 1%

2 3%

24 33%

1 2%

1 1%

2 2%

3 2%

23 32%

2 3%

9 5%

5 6%

3 1%

5 3%

1 1%

2 1%

4 2%

3 4%

7 4%

2 1%

4 5%

21 10%

6 3%

2 1%

1 1%

66 34%

10 5%

2 3%

5 6%

83 43%

1 -

2 1%

1 -

4 2%

7 4%

12 6%

5 3%

4 2%

5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 38-4 QUESTION 27: What types of manufacturing jobs or positions are in most demand at your company? BANNER 4

BASE=TOTAL SAMPLE MACHINE OPERATOR ASSEMBLER/MANUFACTURER/ FABRICATOR WELDER

FRONT OFFICE OR ADMINISTRATIVE HELP

ENGINEER

SUPERVISOR SENIOR LEADERSHIP POSITION ENTRY LEVEL/GENERAL LABORER/LABORER

TECHNICAL/SKILLED LABORER

SALES NONE/NOT APPLICABLE OTHER DON'T KNOW REFUSED

PAGE 191

NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER SHORTAGE GREATEST EMPLOYEE NEED WORKER SHORTAGE FUTURE CHALLENGES M E E T I N G S T======================= R E E T R E S E A R C=============================== H ================= ============================== ============================== ATTUNFAV TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK RACT BIZ VERY TOTAL NOT AUTOM CURR OUT- PROC NO TECH/ PROD INCR TRAIN -SIVE TECH WORK- HLTH RISING CLIM LOWER TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL FORCE COSTS COSTS -ATE SALES ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----- ----- ----- ------ ----- ----400 100%

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

111 28%

19 22%

78 27%

31 30%

7 17%

41 28%

27 33%

11 25%

18 4%

1 1%

9 3%

9 9%

1 2%

4 3%

6 7%

5 12%

1 2%

152 38% 30 7%

40 46%

13 15%

17 4%

3 3%

7 2%

3 3%

8 2% 4 1%

121 42% 23 8%

14 5%

7 7%

3 3%

1 2%

2 1%

2 2%

4 1%

1 1%

9 9%

1 2%

1 -

2 2%

11 3%

1 1%

6 2%

4 4%

8 2%

2 1%

4 4%

21 5%

5 6%

8 3%

3 2%

2 1%

1 2%

4 3%

1 1%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

3 39%

48 39%

15 16%

43 29%

1 12%

63 29%

43 29%

38 30%

29 23%

25 24%

57 30%

3 2%

6 6%

2 20%

11 5%

3 2%

5 4%

3 44%

149 37%

1 1%

2 4%

5 4%

93 23%

1 16%

2 2%

122 31%

4 10%

1 1%

2 2%

9 10%

17 40%

1 2%

4 1%

5 1%

7 5%

20 24%

4 4%

1 1%

3 1%

67 47%

5 3%

1 1%

6 14% 4 9%

8 3% 4 2%

21 50%

3 3%

4 1%

29 28%

7 2%

44 36% 4 4%

41 44%

2 2%

61 41%

1 8%

7 8%

16 11%

5 6%

5 4%

3 32%

4 3%

7 4%

1 12%

3 2%

3 3%

3 2%

1 2%

3 3%

1 1%

2 2%

1 1%

5 6%

1 2%

4 3%

3 3%

3 2%

1 8%

1 1%

1 2%

2 1%

1 8%

1 1%

7 9%

2 1%

6 5%

2 1%

M E E T I N G S T R E E T

186

1 1%

2 3% 1 1%

6 7%

1 1%

2 1% 2 1%

2 1%

94 44%

69 45%

11 5%

15 10%

8 4%

4 3%

55 43%

51 41%

5 12%

1 2%

1 3%

1 1%

1 2%

2 5%

9 7%

2 2%

1 1%

3 3%

2 1%

1 1%

3 2%

2 2%

1 1%

3 2%

3 3%

1 1%

5 2%

R E S E A R C H

1 1%

7 4%

3 2%

2 1%

8 7%

5 4%

2 1%

5 3%

5 4%

7 6%

2 1%

10 22%

3 3%

1 1%

26 34%

2 2%

3 1%

2 2%

2 1%

2 2%

2 1%

3 3%

2 1%

1 1%

3 3%

1 1%

2 1%

2 2%

1 1%

3 2%

2 1%

3 2%

2 2%

1 1%

11 9%

28 37%

12 10%

3 3%

5 2%

36 32%

40 35%

20 10%

4 3%

33 28%

45 37%

10 10%

5 4%

3 2%

1 -

46 12%

15 12%

3 1%

2 1%

85 45%

77 19%

10 8%

6 3%

51 48%

114 28%

4 5%

3 4% 3 3%

16 36% 2 4%

1 2% -

1 -

1 1%

2 2%

3 1%

1 1%

2 2%

3 4%

2 4%

1 1%

3 3%

4 2%

2 1%

1 1% 5 4%

1 1%

4 4%

4 5%

1 3% 4 8%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 38-5 QUESTION 27: What types of manufacturing jobs or positions are in most demand at your company? BANNER 5

BASE=TOTAL SAMPLE MACHINE OPERATOR ASSEMBLER/MANUFACTURER/ FABRICATOR WELDER

FRONT OFFICE OR ADMINISTRATIVE HELP ENGINEER

SUPERVISOR SENIOR LEADERSHIP POSITION

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

111 28%

53 25%

41 28%

29 27%

29 31%

28 35%

20 28%

87 27%

24 30%

22 35%

23 28%

18 4%

9 4%

4 3%

8 7%

3 3%

6 7%

4 5%

12 4%

6 7%

2 3%

5 6%

2 1%

1 1%

3 4%

1 1%

152 38% 30 7% 17 4%

8 2%

7 2%

89 42% 13 6% 4 2%

5 2%

2 1%

65 44% 14 10% 3 2%

2 1%

29 27% 8 7% 6 6%

3 3%

39 42% 7 7% 3 3%

2 2%

3 4% 1 1%

2 2%

4 1%

4 2%

2 2%

SALES

4 1%

4 2%

1 1%

3 3%

2 2%

1 1%

11 3%

7 3%

4 3%

3 3%

1 1%

7 3%

1 1%

4 4%

NONE/NOT APPLICABLE OTHER DON'T KNOW REFUSED

4 1%

5 1%

21 5%

8 2%

2 1%

5 2%

9 4%

7 5%

4 4%

1 1%

6 6%

29 37%

ENTRY LEVEL/GENERAL LABORER/LABORER

TECHNICAL/SKILLED LABORER

PAGE 192

2 2% -

4 5%

2 3% -

5 7%

1 1%

24 33%

8 11% 3 5%

5 7%

3 4%

2 3% -

118 37% 24 7% 16 5%

8 3%

34 42% 6 7%

1 1%

5 6%

6 8%

21 25%

92 29%

8 19%

16 30%

26 26%

10 19%

25 25%

59 27%

5 4%

5 5%

18 6%

2 3%

6 6%

4 8%

1 1%

10 5%

4 3%

2 3%

16 10%

8 5%

3 3%

104 33%

1 1%

16 5% 7 2%

2 2%

2 3%

5 1%

2 2%

6 4%

6 7%

19 6%

3 1%

1 1%

1 2%

15 5%

6 7%

10 3% 7 2%

1 1% 2 2%

1 1%

6 9%

5 6% 1 1%

2 1%

3 2% 1 1%

1 1%

24 8%

4 1%

4 3%

37 43%

2 3%

4 1%

43 28%

57 37%

1 1%

4 1%

1 1%

6 9%

32 39%

320 80%

6 2%

1 1%

23 36%

87 22%

1 1%

2 2% 5 5%

7 2%

3 1%

4 1%

10 3% 8 3%

43 11%

27 62% 3 8%

1 2%

54 10%

21 39%

5 10%

1 3%

100 19%

34 34% 7 7%

2 2%

1 3%

2 2%

7 7%

1 2%

1 1%

2 3%

1 1%

2 5%

3 6%

4 4%

1 2% -

1 2%

51 10%

21 42% 4 8%

2 4%

36 36%

19 19%

3 3%

1 2%

3 3%

4 4%

4 7%

1 1%

1 2%

6 6%

1 2%

2 2%

100 19%

2 4%

1 2%

218 42%

82 38% 13 6%

13 6% 6 3%

1 -

4 2%

3 1%

2 2%

7 3%

5 5%

2 2%

3 1%

12 6%

5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 39-1 QUESTION 28: What are some of the things you are doing to navigate around the worker shortage challenges? BANNER 1

BASE=TOTAL SAMPLE MAXIMIZING PRODUCTIVITY INCREASING COMPENSATION TRAINING INTERNS TO BECOME EMPLOYEES/ON-THE-JOB TRAINING

BEING MORE AGGRESSIVE IN MARKETING YOUR COMPANY TO POTENTIAL EMPLOYEES

WORKING DIRECTLY WITH AREA TECH COLLEGES/HIGH SCHOOLS

PART TIME/TEMPORARY HELP NONE/NOT APPLICABLE/NO SHORTAGE OF WORKERS

OTHER

DON'T KNOW REFUSED

REGION REGION M E E TII I N G S REVENUES T R E E T R ============================== ============ ================= $1 REST UNDER MILL COLLAR TWIN OF $1 - $5 $5 TOTAL MSP COS NE S W/NW CITIES STATE MILL MILL MILL+ ----- ----- ------ ----- ----- ----- ------ ----- ----- ----- ----400 100%

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

PAGE 193

YEARS IN PRIMARY BUSINESS OPERATION JOB TITLE E S EMPLOYEES E A R C H ================= ======================= =========== ======================= UNDER PROC PREC1-15 16+ PRES/ MGMT MANAG 10 11-50 51+ -ESS ISION METAL OEM YRS YRS OWNER CEO TEAM -ER ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

44 28%

46 44%

77 19%

14 42%

38 49%

214 54%

76 54%

45 51%

22 45%

25 58%

47 57%

121 53%

93 54%

80 48%

63 59%

61 60%

96 48%

65 56%

53 66%

56 62%

59 61%

34 56%

18 39%

55 56%

159 53%

79 51%

128 32%

47 33%

24 27%

15 32%

14 33%

28 34%

71 31%

57 33%

35 21%

44 41%

43 43%

50 25%

40 34%

38 47%

27 30%

40 41%

17 27%

10 23%

29 29%

100 33%

46 29%

33 31%

10 32%

32 41%

125 31%

49 35%

25 28%

12 26%

13 31%

26 32%

74 32%

51 30%

34 20%

29 27%

56 55%

36 18%

44 37%

44 56%

30 33%

27 28%

21 35%

15 33%

33 33%

91 30%

27 17%

46 43%

15 45%

30 38%

106 27%

40 29%

21 25%

5 10%

15 35%

25 30%

62 27%

45 26%

20 12%

29 27%

49 49%

33 16%

32 27%

41 52%

19 21%

36 37%

24 40%

12 25%

25 25%

82 27%

23 15%

31 29%

10 31%

32 42%

15 4%

4 3%

3 3%

3 7%

2 5%

3 3%

7 3%

8 5%

7 4%

2 2%

4 4%

8 4%

6 5%

1 1%

5 5%

4 4%

1 1%

2 4%

3 3%

12 4%

5 3%

4 4%

2 6%

3 4%

8 6%

10 11%

3 7%

2 4%

5 6%

18 8%

10 6%

22 13%

3 2%

3 3%

26 13%

1 1%

2 2%

5 6%

6 6%

3 4%

5 12%

10 9%

1 3%

151 38%

3 1%

4 1%

28 7%

15 4%

59 42%

3 2%

1 1%

3 2%

29 33%

3 4%

17 36%

2 5%

4 9%

16 38%

1 2%

30 37%

1 1%

4 5%

88 39%

3 2% 1 -

6 3%

63 37%

3 2%

9 5%

37 22%

2 1%

11 7%

48 44%

1 1%

2 2%

M E E T I N G S T R E E T

187

59 59%

1 1% -

2 2%

49 24%

2 1%

3 2%

12 6%

55 47%

2 1%

1 1%

4 3%

R E S E A R C H

48 60%

30 32%

5 5%

43 45%

2 2% -

24 41%

2 3%

14 30%

2 3% -

1 2%

34 34%

1 1%

7 7%

5 5%

117 39%

3 1%

21 7%

10 3%

2 2%

2 1%

16 10% 8 5%

53 50%

33 8%

1 1%

7 7%

19 56%

49 64%

1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 39-2 QUESTION 28: What are some of the things you are doing to navigate around the worker shortage challenges? BANNER 2

BASE=TOTAL SAMPLE MAXIMIZING PRODUCTIVITY

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

85 42%

60 35%

214 54%

112 56%

128 32%

69 34%

BEING MORE AGGRESSIVE IN MARKETING YOUR COMPANY TO POTENTIAL EMPLOYEES

125 31%

PART TIME/TEMPORARY HELP

3 1%

21 5%

155 39%

75 38%

60 39%

200 54%

13 62%

101 52%

52 31%

121 33%

7 35%

66 33%

50 29%

116 31%

106 27%

61 31%

37 22%

NONE/NOT APPLICABLE/NO SHORTAGE OF WORKERS

15 4%

9 4%

DON'T KNOW

28 7%

11 6%

INCREASING COMPENSATION TRAINING INTERNS TO BECOME EMPLOYEES/ON-THE-JOB TRAINING

WORKING DIRECTLY WITH AREA TECH COLLEGES/HIGH SCHOOLS

OTHER

REFUSED

151 38%

4 1%

15 4%

1 -

3 2%

5 3%

87 51%

372 93%

21 5%

181 45%

59 15%

150 37%

16 26%

59 39%

92 59%

8 39%

103 57%

26 43%

63 32%

58 37%

2 10%

63 35%

7 34%

56 29%

54 35%

5 22%

99 26%

4 20%

53 27%

40 26%

6 3%

14 4%

1 3%

12 6%

3 2%

14 8%

25 7%

2 11%

11 5%

9 6%

3 2% -

9 5%

145 39%

3 1%

14 4%

5 26%

1 6% -

PAGE 194

2 1% 1 -

9 5%

1 1% -

3 2%

236 59%

22 6%

129 32%

181 45%

6 29%

40 31%

70 39%

82 55%

129 55%

11 50%

16 28%

47 31%

78 33%

7 34%

55 30%

21 36%

45 30%

85 36%

6 30%

42 23%

13 22%

47 32%

7 4%

1 2%

10 6%

9 15%

8 39%

4 21%

1 4%

74 41%

1 1%

6 3%

1 1%

68 40%

42 32%

61 34%

4 20%

33 26%

70 30%

6 25%

6 4%

9 4%

1 3%

7 5%

11 5%

3 14%

2 1%

3 5%

8 23%

15 42%

3 2%

172 43%

93 52%

6 4%

100 42%

2 1% 1 -

11 5%

67 52%

36 9%

123 31%

62 15%

208 52%

49 12%

233 58%

14 29%

116 50%

99 58%

66 54%

37 60%

108 52%

29 58%

9 24%

58 34%

43 35%

22 36%

60 29%

67 37%

7 20%

48 28%

43 35%

17 28%

27 21%

51 28%

5 15%

43 25%

39 32%

5 4%

7 4%

1 2%

7 4%

11 6%

5 14%

11 6%

2 1%

2 2%

13 10%

4 3%

3 2%

1 1% 7 4%

1 3%

2 1% 7 4%

BASE=TOTAL SAMPLE MAXIMIZING PRODUCTIVITY INCREASING COMPENSATION

92 23%

298 74%

202 50%

151 38%

119 30%

151 38%

39 42%

110 37%

96 47%

73 48%

61 51%

214 54%

54 58%

TRAINING INTERNS TO BECOME EMPLOYEES/ON-THE-JOB TRAINING

128 32%

38 42%

BEING MORE AGGRESSIVE IN MARKETING YOUR COMPANY TO POTENTIAL EMPLOYEES

125 31%

WORKING DIRECTLY WITH AREA TECH COLLEGES/HIGH SCHOOLS PART TIME/TEMPORARY HELP

3 1%

157 53%

132 65%

95 63%

79 67%

95 24%

101 25%

55 57%

27 27%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

99 36%

60 35%

57 34%

61 36%

71 18%

147 37%

146 36%

147 37%

35 49%

71 48%

72 49%

88 38%

39 26%

62 30%

11 22%

86 37%

39 26%

11 17%

53 26%

8 16%

78 34%

26 18%

2 2%

3 4%

11 5%

2 5%

7 3%

1 18%

7 4%

8 7%

7 11%

7 3%

1 28%

1 1% -

6 5%

1 1% -

1 1%

2 1%

3 2%

13 6%

9 4%

3 1%

2 4%

1 1%

4 7%

2 1%

4 8%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

67 45%

16 34%

19 27%

20 27%

21 29%

84 43%

71 36%

65 33%

55 28%

92 62%

96 49%

86 31%

51 30%

50 30%

52 30%

29 41%

34 36%

89 30%

81 40%

66 44%

53 45%

50 52%

19 19%

83 30%

50 30%

44 26%

51 30%

27 38%

57 39%

62 42%

51 35%

11 23%

15 21%

17 23%

21 29%

85 44%

37 19%

106 27%

25 27%

81 27%

68 34%

51 34%

42 36%

34 36%

16 16%

69 25%

41 24%

36 21%

44 26%

23 33%

51 35%

53 37%

43 29%

13 28%

11 16%

13 17%

16 21%

68 35%

34 17%

NONE/NOT APPLICABLE/NO SHORTAGE OF WORKERS

15 4%

5 5%

9 3%

6 3%

7 4%

6 5%

4 4%

5 5%

9 3%

5 3%

4 2%

2 3%

6 4%

7 5%

6 4%

5 10%

4 5%

3 3%

5 7%

9 5%

6 3%

DON'T KNOW

28 7%

6 7%

9 6%

2 3%

2 1%

5 3%

5 10%

12 16%

11 6%

17 9%

OTHER

REFUSED

4 1%

15 4%

1 1%

2 2%

3 1%

21 7% 12 4%

1 -

6 3%

3 1%

1 1%

4 2%

3 2%

1 1%

3 4%

1 1%

2 2%

12 12%

7 7%

3 1%

19 7%

11 4%

1 1%

2 1%

14 8%

6 3%

M E E T I N G S T R E E T

188

1 1%

2 1%

13 8%

7 4%

3 2%

2 1%

4 2%

1 1%

R E S E A R C H

1 1%

3 2%

2 1%

1 1%

5 3%

1 3%

2 4%

2 2%

1 1%

8 11%

7 9%

2 2%

1 1%

11 14%

8 10%

21 28%

113 58%

25 25%

1 1%

17 24%

25 34%

45 47%

1 1%

18 25%

28 38%

55 47%

1 1%

13 28%

30 41%

58 38%

2 1%

56 38%

23 50%

81 40%

3 1%

60 41%

36 24%

15 31%

71 34%

86 29%

60 40%

97 67%

1 30%

21 34%

1 24%

76 51%

1 1%

3 2%

15 10% 9 6%

PAGE 195

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

64 43 88 84R E 96 51 94 M67% E E T43% I N G138 S T R52% E E T50% S E A71% R C H64% 50% 56%

148 37%

134 58%

56 45%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 39-3 QUESTION 28: What are some of the things you are doing to navigate around the worker shortage challenges? BANNER 3

3 1%

1 1%

2 3%

4 6%

1 -

4 2%

3 2%

10 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 39-4 QUESTION 28: What are some of the things you are doing to navigate around the worker shortage challenges? BANNER 4

BASE=TOTAL SAMPLE MAXIMIZING PRODUCTIVITY INCREASING COMPENSATION TRAINING INTERNS TO BECOME EMPLOYEES/ON-THE-JOB TRAINING

PAGE 196

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

151 38%

43 49%

127 44%

23 22%

17 40%

73 51%

26 32%

21 50%

214 54%

51 58%

171 60%

41 40%

29 69%

89 61%

43 52%

34 81%

7 2%

122 31%

4 56%

4 53%

93 23%

149 37%

49 40%

31 34%

61 41%

2 23%

61 49%

47 51%

151 38%

128 32%

110 51%

151 100% 73 48%

73 57%

128 100%

76 61%

68 63%

99 52%

5 51%

214 100%

2 23%

94 44%

110 73%

94 74%

125 31%

85 68%

68 64%

122 64%

114 28%

77 19%

46 12%

52 43%

36 31%

31 27%

33 43%

29 37%

11 24%

14 31%

62 52%

49 63%

26 56%

57 39%

22 27%

20 46%

2 26%

34 28%

BEING MORE AGGRESSIVE IN MARKETING YOUR COMPANY TO POTENTIAL EMPLOYEES

125 31%

40 46%

110 39%

14 13%

16 39%

50 34%

24 28%

16 38%

2 33%

37 30%

33 36%

46 31%

2 22%

85 40%

76 50%

56 43%

125 100%

58 54%

84 44%

36 30%

30 26%

29 37%

13 28%

PART TIME/TEMPORARY HELP

106 27% 3 1%

31 36%

88 31%

15 15%

10 24%

53 36%

15 18%

15 36%

2 30%

21 17%

33 35%

41 28%

3 36%

68 32%

68 45%

49 38%

58 46%

106 100%

76 40%

33 27%

25 22%

21 27%

5 11%

15 4%

1 1%

7 3%

8 7%

3 4%

1 2%

5 4%

4 2%

3 26%

1 1%

5 4%

2 3%

5 11%

10 4%

15 15%

5 6%

1 2%

7 5%

3 4%

5 10%

NONE/NOT APPLICABLE/NO SHORTAGE OF WORKERS OTHER

DON'T KNOW REFUSED

4 1%

28 7%

15 4%

2 2%

1 1%

3 1% 2 1%

11 10%

1 2%

1 1%

6 4%

1 1%

2 3%

2 2%

2 1%

2 2%

1 1%

10 8%

5 5%

3 2%

4 4%

2 1%

4 3%

1 1%

2 1%

1 -

4 2%

36 30%

61 53%

17 39%

81 42%

120 30%

30 30%

49 46%

191 48%

96 34%

2 1%

56 45%

106 27%

29 34%

50 34%

214 54%

128 32%

WORKING DIRECTLY WITH AREA TECH COLLEGES/HIGH SCHOOLS

37 40%

92 62%

10 2%

2 1%

2 2%

11 9% 4 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 39-5 QUESTION 28: What are some of the things you are doing to navigate around the worker shortage challenges? BANNER 5

BASE=TOTAL SAMPLE MAXIMIZING PRODUCTIVITY INCREASING COMPENSATION TRAINING INTERNS TO BECOME EMPLOYEES/ON-THE-JOB TRAINING

212 53%

145 36%

108 27%

92 23%

79 20%

151 38%

76 36%

62 43%

37 35%

45 49%

27 34%

214 54%

113 53%

88 60%

61 57%

62 68%

45 57%

128 32%

64 30%

52 36%

34 31%

40 44%

26 33%

BEING MORE AGGRESSIVE IN MARKETING YOUR COMPANY TO POTENTIAL EMPLOYEES

125 31%

63 30%

47 32%

34 32%

39 42%

PART TIME/TEMPORARY HELP

106 27%

53 25%

44 30%

31 28%

NONE/NOT APPLICABLE/NO SHORTAGE OF WORKERS

3 1%

15 4%

6 3%

2 1%

DON'T KNOW

28 7%

20 10%

9 6%

WORKING DIRECTLY WITH AREA TECH COLLEGES/HIGH SCHOOLS

OTHER

REFUSED

4 1%

15 4%

2 1%

3 2%

11 5%

1 1%

2 1%

3 2%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

39 171 43 36 49 82 41 162 M54% E E T54% I N G53% S T R58% E E T59%R E53% S E A47% R C H51% 40 120 31 25 39 61 22 104 57% 38% 39% 40% 48% 40% 26% 32%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

27 62%

20 37%

47 47%

16 31%

51 51%

83 38%

28 65%

27 50%

31 38%

48 31%

29 34%

91 28%

27 34%

29 40%

98 31%

27 33%

22 36%

29 36%

51 33%

17 19%

79 25%

30 70%

15 28%

35 35%

14 28%

44 44%

68 31%

29 31%

22 28%

25 36%

84 26%

22 27%

15 24%

29 36%

39 26%

17 20%

65 20%

23 55%

12 23%

20 20%

17 33%

42 42%

57 26%

7 7%

3 3%

6 8%

1 1%

10 3%

5 6%

2 3%

4 5%

6 4%

3 3%

14 4%

1 2%

6 10%

4 4%

2 4%

7 3%

8 7%

5 6%

6 7%

3 4%

22 7%

6 7%

2 3%

10 6%

10 12%

26 8%

4 8%

5 5%

3 5%

4 4%

1 1%

4 4%

1 2%

1 1%

2 3%

2 2%

3 1%

14 4%

1 1%

2 2%

1 1%

3 5%

M E E T I N G S T R E E T

189

1 1%

2 1% 7 4%

3 3%

1 1% 5 5%

R E S E A R C H

3 1%

4 1% 15 5%

2 4% 3 6%

1 1% -

8 8%

2 4%

41 41%

114 52%

16 25%

16 31%

66 66%

24 30%

1 1%

31 31%

30 59%

104 33%

16 29%

57 57%

31 43%

2 2%

17 41%

1 1%

6 5%

2 3%

13 11%

2 4% -

PAGE 197

1 1%

3 3%

67 31%

3 2% 1 -

17 8%

6 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 198 Table 40-1 QUESTION 29: When it comes to improving production and efficiency, is it more important for your company to focus on process improvement only, or focus on people development and process improvement equally? BANNER 1

BASE=TOTAL SAMPLE **D/S (PROCESS ONLY PEOPLE AND PROCESS)

PROCESS IMPROVEMENT ONLY PEOPLE DEVELOPMENT AND PROCESS IMPROVEMENT EQUALLY

DON'T KNOW REFUSED

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

33 8%

77 19%

-230 -57%

-89 -63%

-41 -48%

-26 -54%

-24 -55%

-50 -61%

-130 -57%

-100 -58%

-68 -41%

-70 -65%

-78 -78%

-82 -41%

-78 -66%

-69 -87%

-44 -49%

-65 -67%

-32 -54%

-26 -56%

-43 -43%

-186 -62%

-62 -40%

-70 -65%

-23 -70%

-59 -77%

306 76%

111 79%

61 70%

36 75%

33 78%

64 78%

173 76%

133 77%

112 68%

88 82%

89 88%

136 67%

96 82%

73 92%

65 71%

79 82%

45 75%

36 77%

70 70%

235 79%

105 67%

87 81%

26 80%

67 86%

5 1%

4 3%

1 2%

4 2%

1 1%

2 1%

1 1%

2 2%

1 3%

76 19% 13 3%

23 16% 3 2%

20 23% 6 7%

10 21% 1 2%

10 22%

14 17%

4 4%

43 19%

9 4%

34 20%

4 3%

44 27%

9 5%

18 16%

11 11%

1 1%

54 26% 11 6%

19 16%

4 5%

1 1%

21 23% 4 4%

14 14% 4 4%

13 22% 2 3%

10 21% 1 2%

27 27% 1 1%

2 2%

50 17% 12 4%

2 1%

43 28%

7 4%

1 1%

17 16%

3 3%

3 9%

3 8%

8 10%

3 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 199 Table 40-2 QUESTION 29: When it comes to improving production and efficiency, is it more important for your company to focus on process improvement only, or focus on people development and process improvement equally? BANNER 2

BASE=TOTAL SAMPLE **D/S (PROCESS ONLY PEOPLE AND PROCESS)

PROCESS IMPROVEMENT ONLY PEOPLE DEVELOPMENT AND PROCESS IMPROVEMENT EQUALLY

DON'T KNOW REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

3 1%

148 37%

-230 -57%

-118 -59%

-101 -59%

-219 -59%

-10 -49%

-113 -58%

-92 -60%

-9 -44%

-111 -61%

-27 -46%

-84 -56%

-143 -61%

-16 -71%

-62 -48%

-105 -58%

-17 -47%

-105 -61%

-82 -66%

-34 -55%

-107 -52%

-21 -44%

-162 -70%

-1 -35%

-70 -47%

306 76%

158 79%

131 77%

290 78%

14 66%

153 78%

120 77%

13 63%

142 79%

41 70%

114 76%

187 79%

18 80%

92 71%

141 78%

25 70%

133 78%

102 83%

46 74%

151 72%

33 67%

196 84%

2 59%

104 70%

5 1%

2 1%

1 4%

1 -

3 2%

1 4%

3 1%

2 1%

3 1%

1 -

2 1%

1 1%

2 1%

76 19% 13 3%

41 20% 2 1%

30 18% 8 5%

71 19% 10 3%

4 17%

3 13%

40 21% 1 1%

28 18% 5 3%

4 19%

3 14%

32 17% 5 3%

14 24%

30 20%

4 6%

4 3%

M E E T I N G S T R E E T

43 18% 3 1%

2 9%

2 11%

29 23% 8 6%

R E S E A R C H

36 20% 3 2%

8 23% 3 7%

28 17%

8 4%

21 17%

12 19%

4 6% -

43 21%

9 4%

5 2%

11 23%

5 10%

34 15%

2 1%

1 24%

1 18%

34 23%

8 6%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 200 Table 40-3 QUESTION 29: When it comes to improving production and efficiency, is it more important for your company to focus on process improvement only, or focus on people development and process improvement equally? BANNER 3

BASE=TOTAL SAMPLE **D/S (PROCESS ONLY PEOPLE AND PROCESS)

PROCESS IMPROVEMENT ONLY PEOPLE DEVELOPMENT AND PROCESS IMPROVEMENT EQUALLY DON'T KNOW REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

-230 -57%

-62 -67%

-166 -56%

-125 -62%

-104 -69%

-89 -75%

-70 -73%

-46 -46%

-155 -57%

-87 -51%

-95 -56%

-98 -57%

-52 -74%

-112 -76%

-112 -77%

-111 -75%

-23 -50%

-28 -40%

-20 -27%

-19 -26%

-126 -65%

-100 -51%

306 76%

75 82%

226 76%

162 80%

126 83%

103 87%

83 87%

70 69%

209 76%

127 74%

129 76%

131 77%

61 86%

127 86%

127 87%

127 86%

33 70%

49 68%

45 61%

44 60%

158 81%

143 73%

5 2%

3 1%

1 1%

4 1%

1 1%

1 2%

1 1%

76 19%

13 3%

5 1%

14 15%

3 4%

59 20%

8 3%

37 18%

1 -

22 15%

2 1%

14 12%

2 2%

13 13%

23 23%

7 7%

54 20%

7 3%

39 23%

3 2%

34 20%

M E E T I N G S T R E E T

190

M E E T I N G S T R E E T

5 3%

33 19%

6 3%

9 12%

2 2%

15 10%

R E S E A R C H

4 3%

15 10%

3 2%

16 11%

3 2%

10 20%

4 7%

20 28%

2 3%

25 34%

3 4%

25 34%

3 5%

1 1%

32 16%

1 1%

5 2%

43 22%

11 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 201 Table 40-4 QUESTION 29: When it comes to improving production and efficiency, is it more important for your company to focus on process improvement only, or focus on people development and process improvement equally? BANNER 4

BASE=TOTAL SAMPLE **D/S (PROCESS ONLY PEOPLE AND PROCESS)

PROCESS IMPROVEMENT ONLY PEOPLE DEVELOPMENT AND PROCESS IMPROVEMENT EQUALLY DON'T KNOW REFUSED

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

-230 -57%

-52 -60%

-188 -66%

-38 -37%

-18 -43%

-120 -83%

-35 -43%

-29 -70%

-1 -15%

-62 -50%

-66 -72%

-91 -61%

-5 -56%

-127 -59%

-107 -71%

-98 -77%

-98 -78%

-81 -76%

-145 -76%

-83 -69%

-45 -39%

-46 -59%

-22 -48%

306 76%

69 79%

232 81%

68 66%

30 71%

131 91%

57 69%

35 83%

4 57%

91 74%

78 85%

117 78%

8 78%

168 79%

128 85%

113 88%

111 89%

93 87%

167 88%

99 82%

75 66%

60 78%

33 71%

5 1%

2 1%

1 1%

2 2%

2 1%

1 1%

76 19%

13 3%

17 19%

2 2%

44 15%

7 2%

29 28%

5 5%

12 27%

1 2%

11 8%

1 -

22 27%

2 2%

5 13%

2 4%

3 43%

29 24%

12 13%

2 2%

26 17%

4 3%

2 22%

42 20%

3 1%

21 14%

1 1%

15 11%

13 10%

1 1%

12 11%

23 12%

1 -

2 1%

16 13%

5 4%

1 1%

30 27%

7 6%

1 1%

14 18%

2 2%

1 1%

11 23%

3 6%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 PAGE 202 Table 40-5 QUESTION 29: When it comes to improving production and efficiency, is it more important for your company to focus on process improvement only, or focus on people development and process improvement equally? BANNER 5

BASE=TOTAL SAMPLE **D/S (PROCESS ONLY PEOPLE AND PROCESS)

PROCESS IMPROVEMENT ONLY PEOPLE DEVELOPMENT AND PROCESS IMPROVEMENT EQUALLY DON'T KNOW REFUSED

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

-230 -57%

-123 -58%

-88 -61%

-68 -63%

-68 -75%

-57 -71%

-53 -74%

-172 -54%

-58 -71%

-37 -60%

-57 -70%

-89 -58%

-43 -49%

-160 -50%

-40 -94%

-29 -53%

-71 -71%

-27 -53%

-70 -70%

-125 -57%

306 76%

163 77%

115 79%

87 81%

79 86%

67 84%

61 86%

238 75%

68 84%

48 77%

68 83%

119 77%

62 71%

232 73%

41 96%

40 73%

85 85%

39 76%

84 84%

166 76%

5 1%

3 1%

3 2%

2 2%

5 1%

1 2%

2 2%

1 1%

3 1%

4 2%

76 19%

13 3%

40 19%

6 3%

26 18%

2 1%

19 18%

2 1%

10 11%

2 3%

10 13%

2 3%

9 12%

66 21%

10 3%

10 12%

3 4%

11 18%

2 3%

11 13%

M E E T I N G S T R E E T

1 1%

30 20%

4 2%

19 22%

5 5%

72 23%

12 4%

1 2%

11 20%

4 7%

14 14%

1 1%

11 22%

1 2%

14 14% 2 2%

41 19% 7 3%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 41-1 QUESTION 30: In what part of the world do you see greatest increase in prospective business? BANNER 1

BASE=TOTAL SAMPLE UNITED STATES/USA CANADA CHINA EUROPE MEXICO INDIA SOUTH AMERICA NORTH AMERICA ASIA (NON SPECIFIC) SOME OTHER PLACE NONE OF THE ABOVE DON'T KNOW/NOT SURE REFUSED

PAGE 203

140 35%

43 11%

9 6%

12 14%

6 12%

10 7%

10 12%

2 4%

5 3%

5 6%

3 7%

3 6%

2 2%

4 3%

3 4%

4 9%

1 1%

75 19%

32 23%

42 11%

18 13%

19 5%

11 8%

16 4%

9 6%

30 8%

18 4% 13 3%

87 22%

14 15% 7 8%

1 1%

48 12%

10 20%

1 2%

78 19%

19 13%

20 23%

9 20%

2 -

21 15% -

10 11% 1 1%

166 42%

108 27%

101 25%

202 51%

117 29%

8 18%

9 11%

21 9%

22 13%

18 11%

16 15%

9 9%

21 11%

17 14%

3 7%

5 6%

20 9%

10 6%

12 7%

10 9%

6 6%

17 8%

10 9%

6 15%

2 5%

50 13%

172 43%

3 5%

1 1% 2 2%

228 57%

7 16%

3 2% 1 1%

82 20%

4 7%

6 1% 8 2%

43 11%

10 20% 1 2%

1 2% 1 2%

3 7%

14 17% 7 9%

25 11%

2 3%

12 5%

4 5% 1 1%

3 3%

2 5%

27 33%

3 6%

45 20%

7 9%

30 18%

17 10% 7 4%

34 21%

17 10% 5 3%

19 18%

9 8%

13 12%

2 2%

11 11%

10 8 5 3 4% 5% 3% 3% M E E T I N G S T R E E T 10 6 5 4 4% 3% 3% 4% 8 3%

4 2%

3 1%

39 17%

31 13%

1 -

5 3%

2 1%

5 3%

39 23%

20 11%

1 1%

5 3% 1 -

3 2%

40 24%

20 12%

1 1%

18 18%

2 2%

3 3%

2 2%

24 22%

13 13%

191

M E E T I N G S T R E E T

44 22%

19 10% 6 3%

2 2%

10 10%

11 11%

1 1%

5 2%

4 2%

5 2%

44 22%

24 12%

1 -

91 23%

19 16%

12 16%

22 24%

11 9%

12 15%

13 14%

4 3%

9 11%

5 5%

6 7 8 6% 3% 7% R E S E A R C H 6 5 4 6% 3% 4% 5 5%

79 20%

2 2%

3 2%

22 19%

14 12%

1 1%

R E S E A R C H

5 7%

24 25%

60 15%

12 20%

46 12%

7 15%

100 25%

12 12%

299 75%

157 39%

107 27%

33 8%

77 19%

14 9%

14 13%

3 9%

10 13%

64 21%

36 23%

28 9%

15 9%

19 18%

5 6%

9 15%

9 21%

13 13%

30 10%

5 6%

11 12%

2 3%

5 11%

10 10%

20 7%

7 4%

14 13%

3 4%

1 1%

8 8%

3 4%

2 4%

2 2%

16 5%

4 3%

7 6%

6 7%

3 3%

2 2%

2 4%

1 2%

7 7%

6 2%

5 4%

3 3%

3 4%

6 7%

1 1%

11 14%

12 15%

8 9%

97 24%

4 4%

1 1%

18 20%

10 11%

2 2%

5 5%

3 5%

3 3%

6 10%

4 4%

1 1%

1 2%

21 22%

10 17%

3 3%

9 10%

11 19% -

5 12% 1 2%

4 9% 2 4%

3 5%

14 14% 4 4%

2 2% 2 2%

3 3%

4 8%

21 21%

3 7%

9 9%

15 5%

14 5% 4 1%

5 2%

56 19%

41 14% 2 1%

2 1%

5 3% 3 2%

2 1%

3 9%

11 14%

9 9%

5 15%

10 13%

7 7%

4 12%

6 7%

8 7%

1 1%

1 3%

1 1%

1 3%

2 6% -

1 2%

6 8%

4 5%

4 6%

3 4%

37 24%

14 13%

10 31%

8 10%

2 1%

24 15%

9 9%

3 10%

13 16%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 41-2 QUESTION 30: In what part of the world do you see greatest increase in prospective business? BANNER 2

BASE=TOTAL SAMPLE UNITED STATES/USA CANADA CHINA EUROPE MEXICO INDIA SOUTH AMERICA NORTH AMERICA ASIA (NON SPECIFIC) SOME OTHER PLACE NONE OF THE ABOVE DON'T KNOW/NOT SURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

PAGE 204

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

3 1%

148 37%

5 10%

21 9%

2 48%

18 12%

16 7%

12 8%

75 19%

37 18%

32 19%

69 19%

5 22%

36 19%

30 19%

5 24%

38 21%

15 26%

22 15%

41 17%

5 21%

28 22%

29 16%

5 15%

39 23%

29 23%

13 22%

32 16%

13 25%

42 11%

23 11%

14 8%

37 10%

5 24%

15 8%

22 14%

4 19%

19 11%

5 9%

17 12%

30 13%

2 8%

9 7%

19 11%

4 12%

18 10%

13 11%

5 7%

24 12%

2 5%

24 10%

8 4%

9 6%

1 6%

11 6%

6 9%

3 2%

1 2%

12 5%

7 4%

6 4%

43 11%

22 11%

30 8%

20 10%

18 4%

15 7%

13 3%

6 3%

19 5% 16 4%

6 1%

8 2%

19 11% 9 5%

40 11% 29 8%

1 4%

16 8%

14 9% 14 9%

10 6%

18 5%

9 4%

5 3%

14 4%

2 9%

11 6%

5 3%

6 2%

4 2%

1 1%

3 1%

4 2%

2 1%

6 4%

3 2%

17 4% 12 3%

7 2%

32 16%

46 27%

78 21%

2 -

1 -

1 1%

2 1%

24 12%

20 12%

44 12%

1 6%

28 14%

8 4%

78 19%

50 13%

3 15%

1 4% -

3 16%

7 4%

5 2%

37 19%

21 11%

1 -

7 4%

1 4%

4 3%

1 5%

1 1%

1 4%

18 12%

6 28%

31 20% 1 1%

2 9% -

15 8%

13 7%

9 5%

7 12% 2 4%

2 3%

4 2%

1 2%

34 19%

20 11%

1 -

14 9%

1 2%

6 3%

3 2%

20 13%

8 13%

12 20%

27 11% 17 7%

1 1%

15 8%

3 9%

17 10%

13 10%

7 4%

4 4%

3 9%

6 4%

12 5%

1 4%

3 2%

11 6%

2 5%

1 1%

1 3%

30 23%

36 20%

6 17%

1 1%

4 2%

7 3%

41 18%

23 10%

1 -

4 3%

1 4%

4 3%

6 25%

4 17%

2 1%

1 1%

18 14%

9 5%

8 4%

6 3%

16 9%

2 5% -

3 9%

13 10%

12 7%

9 5%

8 3%

16 11%

11 8%

6 16%

5 4%

5 3%

3 2%

2 9%

21 11%

1 5%

12 5%

33 22%

14 10%

13 6%

8 5%

3 2%

2 7%

9 15%

2 3%

21 10%

15 7%

1 2%

8 4%

3 6%

BASE=TOTAL SAMPLE UNITED STATES/USA CANADA CHINA EUROPE MEXICO INDIA SOUTH AMERICA NORTH AMERICA ASIA (NON SPECIFIC) SOME OTHER PLACE NONE OF THE ABOVE DON'T KNOW/NOT SURE REFUSED

400 100%

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

274 68%

170 42%

169 42%

171 43%

71 18%

147 37%

146 36%

147 37%

43 11%

7 7%

35 12%

15 8%

11 7%

10 8%

6 6%

16 16%

32 12%

19 11%

20 12%

15 9%

9 12%

17 11%

12 8%

18 12%

17 18%

58 19%

38 19%

36 24%

25 21%

20 21%

42 11%

10 11%

31 10%

22 11%

21 14%

16 13%

13 14%

19 5%

8 8%

12 4%

12 6%

6 4%

6 5%

16 4%

6 7%

10 5%

6 4%

6 1%

1 1%

3 1%

1 1%

30 8% 18 4% 13 3%

8 2%

4 4% 2 2% 6 7%

3 3%

26 9% 16 5% 9 3%

6 2%

5 2%

13 7% 12 6% 7 3%

7 3%

9 6% 7 5% 6 4%

5 3%

17 17%

53 19%

8 8%

30 11%

8 8%

6 6%

11 4%

8 6%

3 3%

2 2%

1 1%

2 2%

5 4% 4 3% 4 3%

4 3%

7 7% 5 5% 3 3%

3 3%

6 6% 3 3% 3 3%

2 2%

41 24%

10 6%

36 21%

21 14%

18 12%

2 1%

3 2%

5 6%

10 7%

11 7%

13 9%

4 3%

5 7%

9 6%

7 5%

2 1%

1 1%

3 2%

2 1%

5 3%

7 4%

8 3%

2 1%

4 2%

5 2%

2 1%

6 3%

3 2%

5 3%

15 9% 10 6% 6 3%

5 3%

3 4%

10 7%

3 4%

7 5%

2 3%

2 2%

5 3%

2 1%

12 8% 6 4% 8 5%

2 2%

78 19%

15 16%

60 20%

36 18%

24 16%

19 16%

13 13%

25 25%

55 20%

38 22%

33 19%

37 22%

14 20%

28 19%

2 -

2 1%

1 -

1 1%

1 -

1 1%

50 13%

15 16%

33 11%

26 13%

18 12%

17 15%

14 15%

12 11%

34 12%

25 15%

27 16%

M E E T I N G S T R E E T

192

30 20%

22 15%

11 4%

6 2%

25 17%

8 11%

14 8%

5 3%

22 15%

18 10%

13 7%

9 3%

10 14%

16 9%

20 7%

5 3%

33 19%

23 13%

12 16%

R E S E A R C H

13 9%

12 8%

17 12%

3 2%

6 5%

5 8%

5 2%

1 2%

13 6%

3 2%

4 2%

2 2%

4 2%

2 1%

36 21%

20 16%

15 31%

40 17%

1 28%

35 23%

1 2%

1 -

1 1%

3 2%

2 1%

24 14% 1 1%

4 3% -

13 10% -

2 3%

1 2%

10 15%

9 15% -

7 3%

46 22%

28 13% 2 1%

1 2% -

6 13%

11 5%

7 3%

5 2%

28 12%

1 24%

7 5% 6 4%

6 4%

3 2%

17 12%

PAGE 205

LEADERSHIP SIGNIF IMPACT SOME IMPACT DEVLP PROG USING AUTOMATION OF DEPARTURE OF DEPARTURE =========== ============================== ======================= ======================= PRODNOT SKILL SKILL UCTIV QUAL ENHAN CONS CEO/ MGMT MGR/ -ED CEO/ MGMT MGR/ -ED TOTAL YES NO -ITY -ITY SAFETY -CING AUTO OWNER TEAM SPV WORK OWNER TEAM SPV WORK M E E T I N G S T R E E T R E S E A R C H ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----75 19%

22 15%

3 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 41-3 QUESTION 30: In what part of the world do you see greatest increase in prospective business? BANNER 3

6 5%

3 5%

9 5%

51 22%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

2 4%

7 10%

10 14%

8 11%

16 8%

27 14%

10 22%

12 16%

13 17%

4 9%

10 14%

4 8%

4 6%

6 9%

6 4%

2 4%

4 5%

2 1%

12 8%

6 13%

1 1%

4 8%

2 1%

3 2%

1 2%

25 17%

9 18%

1 2%

19 13%

4 9%

6 9%

6 8%

3 4%

1 1%

9 12%

9 13%

1 1%

5 7%

3 4%

11 16% 7 9%

26 14%

4 5%

14 7%

4 5%

6 3%

3 5%

5 6%

7 10%

2 3%

5 7%

2 2%

2 3%

15 20%

16 23%

1 1%

8 11%

35 18%

5 6%

13 7%

9 5%

10 5%

3 2%

6 3%

34 18%

22 11%

38 20% 15 8%

17 8%

5 3%

8 4%

3 1%

41 21%

28 14%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 41-4 QUESTION 30: In what part of the world do you see greatest increase in prospective business?

BANNER 4

BASE=TOTAL SAMPLE UNITED STATES/USA CANADA CHINA EUROPE MEXICO INDIA SOUTH AMERICA NORTH AMERICA ASIA (NON SPECIFIC) SOME OTHER PLACE NONE OF THE ABOVE DON'T KNOW/NOT SURE REFUSED

PAGE 206

87 22%

285 71%

103 26%

43 11%

11 13%

27 9%

15 15%

30 8%

5 6%

21 7%

9 9%

75 19%

42 11%

18 21%

63 22%

8 9%

32 11%

19 5%

9 10%

16 6%

16 4%

18 4%

7 8%

11 4%

13 3%

5 6%

10 3%

8 2%

2 2%

5 2%

6 1%

2 1%

43 11%

144 36%

3 8%

16 11%

11 11%

9 21%

9 8%

3 3%

122 31%

9 7%

8 20%

2 30%

5 11%

17 11%

9 10%

6 13%

1 2%

8 6%

3 4%

5 11%

2 2%

3 7%

2 2%

1 2%

1 16%

5 11%

3 3%

7 2%

14 17%

6 14%

3 3%

42 11%

24 16%

7 7%

5 4%

83 21%

3 8%

10 7% 6 4%

3 2%

6 4%

2 1%

3 2%

9 11% 8 9% 3 3%

3 3%

2 2%

4 8%

2 5% -

3 7%

1 2%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

13 14%

18 12%

1 10%

23 11%

14 9%

14 11%

14 12%

23 25%

1 13%

12 10%

6 7%

20 13%

4 38%

26 12%

7 6%

3 3%

8 5%

11 5%

7 6%

10 11%

7 6%

5 5%

4 4%

4 3%

4 4%

4 3%

4 4%

2 2%

3 3%

29 20%

11 7% 6 4%

7 5%

4 3%

1 1%

1 8%

1 12%

40 19%

20 9%

11 5%

8 4%

5 2%

2 1%

4 2%

31 20%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

15 8%

15 12%

17 15%

8 11%

5 11%

11 6%

8 6%

11 9%

4 5%

7 15%

26 20%

25 20%

26 24%

41 22%

17 11%

14 11%

15 12%

6 6%

25 13%

9 6%

6 4%

13 10%

6 5%

7 5%

6 5%

5 5%

9 6% 7 5%

8 6%

3 2%

4 3%

3 2%

8 6% 7 6%

3 2%

2 2%

8 6%

9 7% 10 8%

7 6%

2 2%

3 2%

7 6%

7 7% 7 7%

6 5%

2 2%

4 4%

34 28%

BASE=TOTAL SAMPLE UNITED STATES/USA CANADA CHINA EUROPE MEXICO INDIA SOUTH AMERICA NORTH AMERICA ASIA (NON SPECIFIC) SOME OTHER PLACE NONE OF THE ABOVE DON'T KNOW/NOT SURE REFUSED

19 24%

7 6%

13 12%

12 6%

8 6%

1 1%

4 6%

8 4%

5 4%

6 6%

3 4%

14 7%

5 3%

2 1%

3 1%

2 2%

3 2%

4 3%

2 2%

1 1%

3 3%

6 7%

5 7%

5 10%

9 19% 1 2%

1 2%

2 3%

2 4%

78 19%

10 11%

52 18%

24 23%

7 16%

32 22%

14 17%

7 17%

1 14%

31 26%

12 13%

25 17%

2 20%

37 17%

26 17%

25 19%

15 12%

19 18%

38 20%

21 17%

27 23%

13 17%

11 23%

2 -

1 -

1 1%

50 13%

12 14%

35 12%

11 11%

4 10%

18 13%

14 17%

3 7%

2 26%

17 14%

8 9%

19 13%

1 12%

27 12%

20 13%

14 11%

12 9%

11 11%

16 9%

12 10%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 41-5 QUESTION 30: In what part of the world do you see greatest increase in prospective business? BANNER 5

21 19%

400 100%

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

43 11%

26 12%

16 11%

15 14%

7 7%

10 13%

7 10%

32 10%

11 14%

7 11%

8 10%

17 11%

9 10%

38 12%

2 4%

6 11%

20 20%

9 17%

11 11%

18 8%

2 4%

3 3%

42 11%

30 8% 19 5% 18 4% 16 4% 13 3%

6 1%

8 2%

41 20%

24 11% 18 8% 10 5% 9 4% 6 3%

8 4%

3 1%

2 1%

27 18%

8 5% 7 5% 5 4% 6 4% 6 4%

2 1%

5 3%

17 16%

17 19%

20 19%

10 11%

2 2%

4 5%

8 7% 6 5%

4 4% 5 5%

6 6%

9 10%

2 2%

3 3%

2 2%

1 1%

16 20%

7 8% 5 6% 3 4%

4 5% 5 6%

4 5%

2 2%

1 1%

21 30%

5 8%

65 21%

10 12%

8 13%

14 17%

28 18%

33 10%

9 11%

10 16%

10 12%

15 10%

10 3%

9 11%

4 6%

6 7%

7 5%

2 3%

15 5%

1 1%

4 1%

5 7% 5 7%

5 7% 1 2% 2 3%

27 9% 14 5%

11 3%

5 2%

3 4% 3 4% 2 3%

2 2%

3 4%

5 8%

4 5%

2 3%

3 4%

2 3%

5 6%

2 3%

4 5%

1 2%

2 3%

1 2%

12 7%

10 6% 5 3%

4 3%

3 2%

4 3%

22 26%

5 6%

63 20%

30 9%

8 20%

10 3%

5 13%

4 5%

10 3%

6 14%

6 2%

8 9%

27 9%

1 1% 2 2%

15 5%

3 3%

2 2%

7 2%

78 19%

33 16%

36 25%

15 14%

22 24%

11 14%

14 20%

61 19%

17 20%

13 21%

11 14%

29 19%

23 27%

67 21%

2 -

2 1%

1 1%

2 1%

1 1%

2 1%

50 13%

29 14%

24 16%

11 11%

11 12%

12 15%

3 5%

38 12%

12 15%

9 14%

14 17%

M E E T I N G S T R E E T

193

19 12%

4 10%

8 9%

38 12%

R E S E A R C H

1 3%

3 7%

4 9%

1 2%

15 27% 3 5%

3 5% 3 6%

1 2% -

1 3%

20 20%

7 14%

12 12%

42 19%

7 7%

7 13%

14 14%

25 11%

3 3%

2 5%

4 4%

12 6%

4 4%

4 4% -

3 3%

4 7% 3 5%

1 2%

4 8%

1 2%

3 6%

5 5% 1 1%

8 8%

1 1%

2 2%

20 9% 10 4%

10 4%

8 4%

4 2%

2 1%

3 6%

10 18%

19 19%

6 12%

30 30%

37 17%

1 1%

1 -

5 13%

6 8%

7 14%

PAGE 207

GROWTH DRIVERS GENDER AGE EMPLOYEES COMBINED INITIATIVE REGIONS M E E=========== T I N G S T======================= R E E T R E S E A R C=========== H ==================================== ============================= NORTH SW/ DEV-LAND WEST NEW MAX NEW ELIM STRTGY ELOP UNDER IF /NW SOUTH CENT TOTAL CUST PROD PROD WASTE PLAN MGRS MEN WOMEN 18-44 45-54 55-64 65+ 50 101+ INIT MN MN INIT NONE ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----75 19%

10 9%

10 19%

16 16%

5 9%

8 8%

29 13%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 42-1 QUESTION 31: On a different topic, does your company have a formal strategic plan for profitable growth? BANNER 1

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/NOT SURE REFUSED

PAGE 208

140 35%

196 49%

71 50%

6 1%

3 2%

-1 -

196 49% 2 1%

7 5%

64 45% 2 2%

87 22%

48 12%

43 11%

42 48%

21 45%

1 2%

-4 -4%

45 52% -

-4 -9%

26 53% -

82 20%

228 57%

172 43%

22 52%

39 48%

113 49%

83 48%

1 2%

3 1%

2 1%

2 4%

20 48% -

-2 -2%

41 50% -

3 1%

109 48% 2 1%

166 42%

-4 -2%

-63 -38%

87 50%

114 69%

51 31%

1 1% -

108 27%

101 25%

-3 -3%

67 33%

61 52%

1 1%

-67 -33%

22 22%

134 66%

74 74%

5 5%

2 2%

117 29%

52 52%

51 47%

54 50%

202 51%

79 20%

6 5%

91 23%

97 24%

60 15%

67 85%

42 46%

51 52%

32 53%

4 5%

2 2%

1 1%

60 76%

55 47%

7 8%

1 1%

2 2%

-5 -5%

47 52% -

7 8%

43 45% 2 2%

5 8%

27 45% -

46 12%

-4 -8%

100 25%

299 75%

17 17%

96 61%

50 47%

12 36%

27 35%

1 1%

2 1%

1 1%

5 2%

54 51%

4 3%

2 1%

8 25%

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/NOT SURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% -1 -

201 50%

73 43%

187 50%

-19 -11%

87 43%

113 56%

6 1%

1 -

2 1%

372 93%

27 13%

196 49%

171 43%

21 5%

1 1%

1 3%

196 49%

155 39%

98 50%

77 50%

92 54%

179 48%

14 65%

95 49%

74 48%

2 1%

2 -

2 1%

5 1%

1 4%

PAGE 209

3 1%

3 2%

4 2%

21 5%

181 45%

9 44%

91 50%

-2 -8%

59 15%

150 37%

25 42%

75 50%

132 56%

3 2%

1 -

3 2%

-8 -13%

11 52%

88 49%

32 54%

72 48%

1 -

1 4%

1 -

4 2%

2 4%

236 59%

22 6%

129 32%

31 13%

-10 -45%

-21 -16%

100 43%

16 71%

73 57%

2 1%

6 25%

1 4%

181 45%

36 9%

172 43%

62 15%

73 60%

31 50%

3 2%

1 1%

33 18%

-19 -54%

71 39%

27 76%

93 54%

46 37%

2 1%

52 40%

104 57%

4 3%

4 2%

-15 -9%

123 31%

8 22%

78 45%

1 3%

1 -

28 23%

208 52%

49 12%

1 1%

-30 -15%

-19 -39%

30 49%

117 57%

34 69%

87 42%

2 1% 1 -

233 58%

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/NOT SURE REFUSED

92 23%

196 49%

70 75%

6 1%

3 3%

-1 -

196 49% 2 1%

298 74%

202 50%

151 38%

119 30%

95 24%

118 40%

114 56%

90 60%

76 64%

63 66%

3 1%

1 1%

50 54%

-55 -18%

20 22%

173 58%

2 1%

31 15% 83 41% 2 1%

31 20% 59 39% 2 1%

36 31% 40 33% 2 1%

101 25%

31 32%

-25 -25%

32 34%

62 62%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

169 42%

171 43%

-2 -53%

-28 -19%

98 42%

3 76%

87 59%

130 56%

1 2%

3 1%

1 24%

2 1%

147 37%

71 42%

43 61%

89 61%

82 55%

22 46%

32 44%

34 46%

1 1%

4 3%

3 2%

4 3%

4 8%

2 2%

144 52%

99 58%

98 58%

100 58%

2 2%

1 -

71 42%

68 40%

2 1%

16 23% 27 38%

35 24% 54 37%

37 25% 53 36% -

20 14% 61 42% -

47 12%

21 45% -

72 18%

-6 -9%

38 53% 1 1%

74 18%

-4 -6%

39 52% 1 1%

73 18%

196 49%

40 56%

196 100%

1 2%

10 14%

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/NOT SURE REFUSED

30 41%

196 -196 100% -100%

1 1%

196 100%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 42-4 M E E T I N G S T R E E T R E S E A R C H QUESTION 31: On a different topic, does your company have a formal strategic plan for profitable growth? BANNER 4

3 2%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

146 36%

-29 -17%

129 47%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----147 37%

-30 -18%

59 40%

PAGE 210

71 18%

-28 -16%

37 37%

170 42%

-14 -5%

148 37%

32 14%

14 29%

3 1%

2019 STATE OF 2, 2019 M MANUFACTURING E E T I N G S STUDY T R E / E 19172 T R / E MARCH S E A 5-APRIL R C H Table 42-3 QUESTION 31: On a different topic, does your company have a formal strategic plan for profitable growth? BANNER 3

1 2%

-7 -35%

4 2%

49 64%

7 2%

6 30%

22 29%

20 61%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 42-2 QUESTION 31: On a different topic, does your company have a formal strategic plan for profitable growth? BANNER 2

77 19%

155 52%

137 46%

60 38%

33 8%

-37 -23%

58 58% 41 41%

107 27%

-18 -6%

21 46% 25 54%

157 39%

PAGE 211

87 22%

-4 -4%

285 71%

103 26%

-3 -1%

3 3%

-5 -12%

50 48%

23 55%

196 49%

41 47%

137 48%

53 51%

6 1%

1 1%

6 2%

196 49% 2 1%

45 52% -

141 49% 2 1%

43 11%

1 1%

144 36%

42 11%

35 42%

22 53%

20 14%

-10 -13%

61 42%

2 1%

18 43%

81 56%

1 2%

1 1%

83 21%

7 2%

122 31%

2 30%

60 49%

10 2%

214 54%

70 47%

9 92%

113 53%

4 2%

-3 -39%

45 54%

20 47%

5 70%

59 48%

46 50%

77 52%

1 1%

2 2%

3 3%

-3 -3%

149 37%

2 6%

2 3%

1 1%

93 23%

43 47%

M E E T I N G S T R E E T

194

3 3%

-7 -5%

8 84% 1 8%

18 8%

151 38%

19 13%

84 56%

128 32%

16 13%

71 55%

125 31%

48 39%

85 68%

106 27%

33 31%

68 64%

191 48%

120 30%

114 28%

21 11%

-20 -17%

-18 -16%

104 55%

49 41%

34 32%

84 44%

69 58%

63 55%

2 1%

R E S E A R C H

3 3%

1 1%

2 1%

26 56%

2 2%

37 30% 1 1%

29 38%

4 4%

55 43%

3 2%

-6 -12%

46 60%

65 43%

46 12%

17 22%

45 40%

96 45%

77 19%

20 44% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 42-5 QUESTION 31: On a different topic, does your company have a formal strategic plan for profitable growth?

BANNER 5

BASE=TOTAL SAMPLE **D/S (YES - NO) YES NO DON'T KNOW/NOT SURE REFUSED

PAGE 212

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

196 49%

107 51%

70 48%

52 48%

48 52%

43 54%

37 52%

155 48%

41 50%

36 57%

44 54%

72 47%

6 1%

2 1%

2 2%

3 3%

2 2%

2 3%

4 1%

1 2%

3 4%

-1 -

196 49% 2 1%

6 3%

101 48% 2 1%

-3 -2%

73 50%

52 48%

8 9%

8 10%

39 43%

35 44%

2 2%

6 9%

31 43%

1 1%

-3 -1% 158 49% 2 1%

2 3%

39 48% -

11 18%

25 40% 2 3%

10 12%

34 42%

87 22%

320 80%

43 11%

128 40%

36 83%

2 1%

2 5%

-11 -7%

-13 -15%

-61 -19%

82 53%

49 56%

189 59%

36 41%

1 2%

1 1%

1 -

54 10%

100 19%

51 10%

100 19%

218 42%

24 44%

47 47%

27 53%

53 53%

106 49%

2 2%

1 1%

3 2%

33 76%

-6 -11%

3 8%

30 56%

2 4%

-5 -5%

51 51%

3 5%

24 47%

7 7%

46 46%

106 49%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 43-1 QUESTION 32: How does your company plan to grow? I'll read you a few options below and please tell me which comes closest to your current strategy?

PAGE 213

We have a 1 to 3 year written plan and all staff know their roles and actions to achieve the plan. We have a written plan, but that needs to be further communicated with staff

Our company has some ideas, but has not yet worked through what our primary focus is, and is not. The strategy is strictly the role of the CEO. BANNER 1

BASE=TOTAL SAMPLE WRITTEN PLAN/STAFF KNOW THEIR ROLES

WRITTEN PLAN/NEEDS TO BE COMMUNICATED

NOT YET WORKED THROUGH STRICTLY ROLE OF CEO OTHER DON'T KNOW/NOT SURE REFUSED NONE/NO PLANS

62 15%

140 35%

41 29%

26 18%

87 22%

48 12%

43 11%

82 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

17 17%

14 23%

5 10%

14 14%

48 16%

24 15%

8 10%

61 39%

31 29%

7 21%

19 25%

8 5%

3 3%

3 4%

2 1%

2 2%

38 48%

20 22%

30 31%

28 12%

35 20%

36 22%

15 14%

10 10%

38 19%

19 16%

6 8%

18 19%

14 15%

6 11%

8 16%

11 12%

51 17%

30 19%

2 2%

2 3%

4 1%

3 2%

15 19%

2 2%

31 36%

19 41%

12 29%

4 5%

4 7%

2 5%

1 1%

1 2%

1 1%

26 31% 2 2%

1 1%

37 16%

25 14%

19 12%

15 14%

25 25%

26 13%

17 15%

19 23%

73 57 66 40 17 81 34 14 M 32% E E T 33% I N G 40% S T R 37% E E T 16% R E 40% S E A 29% R C H 18% 3 2 4 4 1% 1% 3% 2% 10 4%

6 2%

3 1%

7 4%

1 1%

2 1%

10 6%

2 1%

3 2%

5 5%

1 1%

2 2%

12 6%

3 1%

4 2%

6 5%

1 1%

3 3% -

12 13%

35 39% 4 4%

2 2% -

24 25% 6 6%

1 1%

2 2%

17 28%

14 31%

2 3%

3 6%

1 2%

36 36% 4 5%

2 2% -

81 27%

5 14%

39 33%

9 22%

31 31%

24 22%

36 18%

14 31%

77 19%

47 47%

12 13%

20 33%

33 8%

30 28%

3 2%

2 1%

79 20%

26 16%

4 1%

5 1%

117 29%

44 25%

16 19%

4 3%

202 51%

69 30%

8 18%

6 4%

101 25%

20 24%

11 24%

7 2%

108 27%

11 25%

11 13%

18 4%

166 42%

13 28%

17 12%

42 30%

172 43%

27 31%

63 16%

130 32%

228 57%

93 31% 13 4%

4 1%

5 2%

27 17%

3 2%

35 33%

11 10% 1 1% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 43-2 QUESTION 32: How does your company plan to grow? I'll read you a few options below and please tell me which comes closest to your current strategy?

14 42%

7 20% -

1 3%

31 40%

13 17% -

4 5% -

PAGE 214

We have a 1 to 3 year written plan and all staff know their roles and actions to achieve the plan. We have a written plan, but that needs to be further communicated with staff

Our company has some ideas, but has not yet worked through what our primary focus is, and is not.

The strategy is strictly the role of the CEO. BANNER 2

BASE=TOTAL SAMPLE WRITTEN PLAN/STAFF KNOW THEIR ROLES

WRITTEN PLAN/NEEDS TO BE COMMUNICATED NOT YET WORKED THROUGH

STRICTLY ROLE OF CEO OTHER DON'T KNOW/NOT SURE REFUSED NONE/NO PLANS

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

112 28%

75 37%

33 19%

63 16%

29 15%

30 17%

62 15%

24 12%

372 93%

108 29%

21 5%

3 16%

EXPAN RECES INC- DECINC- DECINC- DECINC- DEC-SION FLAT -SION BETTER WORSE SAME REASE REASE SAME REASE REASE SAME REASE REASE SAME 3/3 REASE REASE SAME M E ----E T I -----N G S T----R E E----T R----E S E----A R C----H ----- --------- ----- ----- ----- ----- ----- ------ ----- ----- ----196 49%

63 32%

155 39%

40 26%

21 5%

6 28%

181 45%

52 29%

59 15%

14 24%

150 37%

42 28%

236 59%

78 33%

22 6%

4 19%

129 32%

27 21%

181 45%

64 35%

36 9%

27 18%

8 24%

28 16%

15 12%

9 14%

39 19%

9 18%

37 16%

2 59%

24 16%

1 1%

1 -

3 2%

10 17%

23 15%

43 18%

6 25%

13 10%

27 15%

6 16%

28 18%

34 15%

3 13%

22 17%

25 14%

29 17%

18 14%

10 15%

34 16%

8 15%

42 18%

130 32%

60 30%

59 34%

119 32%

9 43%

57 29%

56 36%

6 29%

60 33%

20 34%

48 32%

69 29%

8 34%

51 40%

60 33%

14 40%

53 31%

32 26%

25 41%

69 33%

21 43%

18 4%

9 4%

7 4%

16 4%

1 5%

7 4%

6 4%

2 10%

10 5%

5 8%

3 2%

6 3%

2 9%

9 7%

3 2%

3 8%

10 6%

5 4%

1 2%

11 5%

2 5%

8 3%

5 1%

2 1%

3 1%

5 1%

2 1%

1 1%

1 -

3 2%

2 1%

1 -

4 2%

1 1%

3 1%

1 -

4 1%

7 2%

1 1% 1 -

3 2%

4 2%

4 1%

5 1%

3 1%

1 1%

1 -

4 3%

2 1%

4 2%

1 2%

195

2 1%

3 2%

2 1% -

148 37%

1 18%

28 16%

8 13%

3 1%

82 35%

3 13%

25 14%

233 58%

6 12%

27 17%

4 20%

49 12%

45 22%

31 16%

19 13%

208 52%

16 26%

4 21%

32 17%

62 15%

50 40%

57 15%

3 15%

123 31%

42 25%

33 19%

59 16%

172 43%

4 10%

1 3% -

2 1%

5 3%

3 2%

1 1%

1 1% -

1 -

6 3%

3 6%

59 25%

3 1%

1 24%

18 12%

65 44%

5 3%

4 3%

2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 43-3 QUESTION 32: How does your company plan to grow? I'll read you a few options below and please tell me which comes closest to your current strategy?

PAGE 215

We have a 1 to 3 year written plan and all staff know their roles and actions to achieve the plan. We have a written plan, but that needs to be further communicated with staff

Our company has some ideas, but has not yet worked through what our primary focus is, and is not. The strategy is strictly the role of the CEO. BANNER 3

BASE=TOTAL SAMPLE WRITTEN PLAN/STAFF KNOW THEIR ROLES

WRITTEN PLAN/NEEDS TO BE COMMUNICATED NOT YET WORKED THROUGH STRICTLY ROLE OF CEO OTHER DON'T KNOW/NOT SURE REFUSED NONE/NO PLANS

92 23%

298 74%

202 50%

151 38%

119 30%

11 12%

51 17%

35 17%

31 20%

25 21%

112 28%

53 57%

63 16%

8 9%

62 15%

57 19%

53 18%

130 32%

17 19%

18 4%

2 2%

15 5%

5 1%

1 1%

4 1%

7 2%

107 36% 4 1%

7 2%

68 34% 25 12%

52 34% 13 9%

59 29%

46 30%

8 4%

5 4%

2 1%

1 1%

4 2%

1 -

1 1%

95 24%

101 25%

47 39%

40 42%

12 10%

8 8%

20 19%

2 2%

17 18%

31 26%

26 27%

4 3%

5 5%

1 1%

21 21% 8 8%

40 40%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

39 14%

29 17%

26 15%

27 16%

70 26%

48 17%

94 34%

3 1%

40 23%

2 1%

11 4%

11 6%

2 2%

3 1%

1 1%

7 2%

60 35%

9 5%

2 1%

146 36%

18 25%

30 20%

31 21%

10 14%

33 19%

55 33%

147 37%

26 36%

35 20%

56 33%

71 18%

38 23%

30 18%

6 6%

2 2%

39 23%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

2 1%

147 37%

47 12%

72 18%

74 18%

73 18%

196 49%

4 9%

3 4%

4 6%

5 7%

31 16%

30 15%

33 46%

47 24%

79 40%

4 6%

2 1%

56 39%

54 37%

26 18%

17 12%

19 13%

5 12%

1 1%

1 -

1 2%

32 21%

6 4%

2 3%

2 2%

2 1%

15 21%

53 36%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

3 2%

36 25%

28 19% 35 24%

2 1%

5 3%

1 1%

2 1%

2 2%

3 2%

14 29%

18 25%

10 14%

2 3%

2 2%

1 1%

40 56%

4 8%

2 3%

36 49%

5 7%

2 4%

18 25%

5 7%

17 37%

15 21%

1 1%

98 50% 11 6%

1 1%

12 6%

50 25%

3 2%

15 8%

4 2%

1 1%

3 1%

1 -

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 43-4 QUESTION 32: How does your company plan to grow? I'll read you a few options below and please tell me which comes closest to your current strategy?

PAGE 216

We have a 1 to 3 year written plan and all staff know their roles and actions to achieve the plan. We have a written plan, but that needs to be further communicated with staff

Our company has some ideas, but has not yet worked through what our primary focus is, and is not. The strategy is strictly the role of the CEO. BANNER 4

BASE=TOTAL SAMPLE WRITTEN PLAN/STAFF KNOW THEIR ROLES

NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER SHORTAGE GREATEST EMPLOYEE NEED WORKER SHORTAGE FUTURE CHALLENGES ================= ============================== ======================= =============================== ============================== ATTUNFAV TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK RACT BIZ VERY TOTAL NOT AUTOM CURR OUT- PROC NO TECH/ PROD INCR TRAIN -SIVE TECH WORK- HLTH RISING CLIM LOWER M E E T I N G S T R E E T R E S E A R C H TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL FORCE COSTS COSTS -ATE SALES ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----- ----- ----- ------ ----- ----400 100% 112 28%

87 22%

27 31%

285 71%

88 31%

103 26%

22 22%

43 11%

13 31%

144 36%

44 31%

83 21%

23 27%

42 11%

7 2%

122 31%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

26 20%

22 17%

21 20%

39 21%

14 11%

14 12%

12 16%

5 11%

10 24%

3 47%

36 30%

28 31%

38 25%

4 43%

68 32%

52 34%

43 33%

7 17%

2 28%

24 20%

15 16%

22 14%

31 14%

22 15%

22 17%

10 12%

7 16%

STRICTLY ROLE OF CEO

130 32%

24 28%

82 29%

46 45%

12 29%

43 30%

25 31%

18 43%

1 13%

37 30%

28 31%

55 37%

3 29%

67 31%

37 24%

34 26%

32 25%

27 25%

53 28%

47 39%

47 42%

19 25%

16 34%

18 4%

3 3%

11 4%

5 5%

4 10%

2 2%

1 1%

5 4%

2 2%

4 3%

5 2%

4 3%

2 1%

1 1%

2 2%

4 2%

3 2%

8 7%

3 4%

2 4%

5 1%

1 1%

2 1%

3 3%

1 2%

2 2%

2 1%

1 1%

1 -

1 1%

2 2%

3 6%

OTHER DON'T KNOW/NOT SURE REFUSED NONE/NO PLANS

4 1%

7 2%

1 1%

2 2%

4 1%

5 2%

1 2%

22 15% -

3 2%

20 24% 1 1%

2 2%

1 12% -

2 1% 2 2%

M E E T I N G S T R E E T

196

1 1% 2 2%

2 1% 1 1%

R E S E A R C H

2 1% 3 2%

32 21%

8 17%

30 21%

2 4%

38 18%

30 39%

8 20%

14 13%

3 28%

22 19%

13 12%

45 16%

27 18%

32 26%

49 17%

12 13%

16 18%

61 32%

18 20%

63 16%

15 12%

41 38%

62 15%

NOT YET WORKED THROUGH

54 43%

WRITTEN PLAN/NEEDS TO BE COMMUNICATED

2 1% 2 2%

1 1%

16 13% -

1 1%

14 13% -

2 1%

31 16% 1 -

2 1%

21 18% 2 2% 2 1%

17 15% 2 2% 2 2%

11 14% 1 1% 1 1%

12 26% 1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 43-5 QUESTION 32: How does your company plan to grow? I'll read you a few options below and please tell me which comes closest to your current strategy?

PAGE 217

We have a 1 to 3 year written plan and all staff know their roles and actions to achieve the plan. We have a written plan, but that needs to be further communicated with staff

Our company has some ideas, but has not yet worked through what our primary focus is, and is not. The strategy is strictly the role of the CEO. BANNER 5

BASE=TOTAL SAMPLE WRITTEN PLAN/STAFF KNOW THEIR ROLES

WRITTEN PLAN/NEEDS TO BE COMMUNICATED NOT YET WORKED THROUGH STRICTLY ROLE OF CEO OTHER

DON'T KNOW/NOT SURE REFUSED NONE/NO PLANS

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

62 15%

27 13%

27 18%

16 15%

23 26%

13 16%

16 22%

51 16%

11 14%

7 12%

7 9%

29 19%

17 20%

43 14%

5 11%

4 8%

10 10%

12 23%

20 20%

35 16%

112 28% 63 16%

130 32% 4 1%

18 4%

7 2% 5 1%

60 28% 36 17% 73 35% 1 -

11 5%

4 2% 1 -

39 27% 29 20% 37 25% 2 2%

29 27% 17 16% 36 33% 1 1%

22 24% 11 12% 29 31% 2 2%

23 29% 16 20% 24 30%

21 29% 13 18%

93 29% 41 13%

18 25%

107 34%

4 1%

20 25%

22 27% 23 28%

20 32%

8 12% 23 36%

28 35%

15 19% 27 33%

42 28%

25 16%

48 31% 3 2%

16 19%

15 17%

75 23%

57 18%

1 2%

2 2%

2 3%

5 3%

8 9%

18 5%

1 1%

2 1%

3 3%

2 1%

3 3%

5 1%

6 2%

1 1%

3 5%

2 2%

1 1%

1 2%

3 3%

16 5%

2 2%

3 6%

4 1%

2 3%

1 1%

4 1%

1 3%

18 33%

25 25%

2 2%

3 4%

12 23%

4 10%

1 1%

2 2%

3 7%

27 27%

115 36%

8 7%

14 26%

25 29%

6 4%

30 69%

34 34% -

13 25%

23 23%

8 15%

20 20%

1 1%

15 30%

66 30%

26 12%

32 32%

70 32%

2 4%

4 4%

10 5%

1 2%

3 1%

6 3%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 44-1 QUESTION 33: How many people does your company employ in all its facilities in Minnesota? BANNER 1

BASE=TOTAL SAMPLE UNDER 50 --------

51-150 ------

151+ ----

UNDER 10 11-25

26-50 51-100 101-150 151 TO 250 MORE THAN 250 DON'T KNOW/NOT SURE REFUSED

PAGE 218

140 35%

60 15%

30 21%

320 80% 20 5%

202 51%

172 43%

38 17%

22 13%

44 54%

119 52%

4 5%

68 83%

8 5%

4 5%

1 3%

3 7%

3 4%

71 51%

4 1%

1 1%

228 57%

31 73%

18 13%

1 -

82 20%

43 90%

36 9%

16 4%

43 11%

75 86%

24 17%

23 6%

48 12%

103 73%

82 20% 36 9%

87 22%

8 9%

48 55%

18 20%

4 8%

21 43%

14 30%

7 17%

18 43%

3 3%

3 7%

3 4%

1 2%

40 37%

17 7%

19 11%

1 -

9 9%

22 22%

15 7%

8 5%

2 1%

20 20%

14 14%

2 1%

2 4%

153 92%

4 8%

83 48%

3 4%

1 3%

49 49%

23 10%

12 8%

3 4%

5 5%

12 5%

8 10%

6 15%

1 1%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

60 75%

10 11%

19 20%

11 18%

3 7%

10 10%

50 17%

7 5%

24 22%

49 53%

40 42%

30 50%

25 55%

66 67%

136 45%

114 73%

48 45%

178 142 165 103 35 202 117 M 78% E E T 82% I N G 99% S T R 95% E E T 35% R E100% S E A100% R C H

5 13%

8 17%

6 5%

101 25%

19 23%

9 10%

108 27%

7 16%

8 6%

5 5%

11 13%

166 42%

42 18%

10 4% -

8 4%

40 23% 14 8% 1 1%

6 4% -

1 1%

12 7% -

1 1%

16 16%

54 50%

10 10%

4 3% -

M E E T I N G S T R E E T

197

4 4%

202 100%

20 25%

82 70%

36 30%

3 3%

29 29%

77 85% 4 4%

17 19%

73 75% 5 5%

21 21%

10 10%

8 13%

2 4%

8 8%

23 29%

3 4%

9 9%

16 20%

4 4%

R E S E A R C H

4 5%

12 25%

12 12%

7 7%

2 4%

90 90%

12 20%

11 12%

36 46%

1 2%

41 89%

21 21%

47 78%

5 8%

4 9%

1 2%

2 4%

1 2%

4 4%

21 19%

28 9%

5 3%

13 13%

16 5%

5 5%

78 73%

29 19%

21 7%

2 2%

149 95%

61 20%

33 11%

1 3%

20 7%

3 3%

3 5%

230 77%

4 1%

6 4%

33 8%

24 73%

4 13%

77 19%

53 68%

16 21%

5 14%

8 11%

9 27%

20 26%

10 29%

21 27%

9 9%

6 17%

11 15%

2 1%

10 10%

1 4%

8 11%

3 3%

2 6%

8 11%

1 -

1 1%

1 -

3 9%

3 8%

8 10% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 44-2 QUESTION 33: How many people does your company employ in all its facilities in Minnesota? BANNER 2

BASE=TOTAL SAMPLE UNDER 50 --------

51-150 ------

151+ ----

UNDER 10

11-25 26-50 51-100 101-150 151 TO 250 MORE THAN 250 DON'T KNOW/NOT SURE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 320 80%

60 15% 20 5%

201 50%

156 78%

31 15% 14 7%

171 43%

140 81%

26 15% 5 3%

372 93%

296 80%

56 15% 19 5%

21 5%

18 88%

2 8%

1 4%

164 84%

21 11% 10 5%

202 51%

86 43%

99 58%

185 50%

12 59%

92 47%

36 9%

25 12%

10 6%

35 9%

1 5%

26 13%

82 20%

36 9% 23 6% 4 1%

45 22%

16 8%

17 10%

3 1%

1 1%

15 7%

16 4%

11 6%

1 -

31 18%

9 5%

76 20%

33 9% 23 6% 4 1%

5 23%

2 8%

PAGE 219

47 24%

155 39%

114 74%

31 20% 8 5%

17 80% 3 15% 1 4%

181 45%

150 83% 22 12% 10 5%

59 15%

47 79% 10 17% 2 3%

150 37%

115 77% 26 17% 8 6%

236 59%

188 80% 40 17% 8 4%

22 6%

20 88% 2 8%

1 4%

129 32%

106 82% 13 10%

9 7%

181 45%

147 81% 27 15%

7 4%

36 9%

172 43%

123 31%

62 15%

34 94%

133 77%

89 72%

50 81%

2 6%

10 6%

7 6%

4 7%

27 16%

28 22%

7 11%

208 52%

49 12%

46 93%

174 75%

9 4%

1 2%

14 6%

21 10%

2 3%

16 75%

83 46%

33 56%

80 54%

104 44%

15 67%

78 61%

81 45%

30 84%

86 50%

56 45%

30 49%

114 55%

36 72%

8 5%

1 5%

19 10%

3 6%

12 8%

27 12%

8 7%

23 13%

13 7%

12 10%

7 12%

17 8%

4 7%

9 6%

2 9%

10 5%

7 11%

30 20%

23 15%

1 1%

2 2%

1 7%

48 27% 12 6%

1 1%

10 17%

22 15%

56 24%

4 6%

21 14%

23 10%

2 2%

3 1%

5 3%

5 21%

19 14%

10 8%

42 23%

16 9%

17 7%

2 8%

3 2%

11 6%

1 1%

4 10%

34 20%

17 10%

1 3%

1 1%

21 17%

15 12%

10 6%

13 10% -

13 21%

5 8%

2 3%

1 2%

233 58%

178 85%

76 49%

10 5%

11 6%

21 5%

47 23%

14 7%

7 3%

3 1%

44 19%

BASE=TOTAL SAMPLE UNDER 50 -------51-150 -----151+ ----

UNDER 10

11-25 26-50 51-100 101-150 151 TO 250 MORE THAN 250 DON'T KNOW/NOT SURE REFUSED

92 23%

320 80%

61 66%

20 5%

12 13%

82 20%

16 17%

36 9%

10 10%

60 15%

202 51% 36 9%

20 21%

23 10%

11 7%

2 3%

25 11% 20 8%

4 2%

1 1%

2 2%

1 4%

8 4%

2 3%

6 4%

6 2%

1 4%

8 6%

6 3%

1 3%

9 5%

7 6%

3 5%

6 3%

1 2%

13 6%

3 2%

1 1%

1 -

1 1%

1 -

1 1%

1 -

1 1%

1 -

298 74%

202 50%

151 38%

119 30%

33 22%

36 30%

253 85%

144 71%

109 72%

7 2%

16 8%

9 6%

37 12%

165 56%

13 14%

22 7%

41 21% 85 42%

63 42%

72 61% 10 9%

39 33%

22 23% 6 6%

39 41%

3 3%

30 11%

18 11%

13 8%

15 9%

66 66%

161 59%

107 63%

108 64%

106 62%

5 5%

19 7%

9 6%

13 7%

10 6%

2 2%

43 21%

31 21%

23 19%

19 19%

23 23%

23 8%

28 14%

18 12%

18 15%

15 15%

3 3%

3 1%

1 1%

3 3%

1 1%

8 9% -

17 8%

14 9%

11 9%

13 7%

15 10%

18 15%

7 2%

13 6%

8 5%

9 8%

1 -

1 1%

1 -

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

10 11% 7 7%

3 3%

8 3%

55 20%

33 20%

20 7%

10 6%

1 -

1 1%

10 4%

1 1%

7 3%

1 -

2 1%

33 19%

8 5%

7 4%

7 4% -

20 29%

33 22%

146 36%

147 37%

36 25%

33 22%

92 63%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

48 25%

66 89%

60 82%

11 8%

1 2%

2 3%

1 2%

5 6%

19 10%

16 21%

40 20%

5 7%

7 9%

128 65%

10 15%

15 10%

16 11%

36 21%

19 27%

36 24%

35 24%

29 20%

5 11%

10 14%

9 5%

13 19%

21 14%

23 16%

23 15%

3 7%

4 5%

5 7%

4 5%

31 16%

3 4%

1 1%

2 2%

1 1%

1 2%

2 3%

4 2%

7 4%

8 11% 7 10%

40 27% 22 15% 12 8%

39 27% 18 12% 13 9%

53 36% 20 14%

24 52% 9 18%

11 7%

5 11%

49 69%

48 65%

39 53%

5 6%

5 7%

6 8%

2 3%

8 11%

14 10%

10 7%

1 2%

1 1%

1 -

1 1%

1 -

198

8 11%

64 89%

8 17%

4 2%

M E E T I N G S T R E E T

196 49%

38 81%

2 1%

73 18%

102 70%

1 1%

74 18%

4 2%

13 18%

R E S E A R C H

PAGE 220

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

95 101 274 170 169 171 71 147 24% 25% 68% 42% 42% 43% 18% 37% M E E T I N G S T R E E T R E S E A R C H 68 95 235 150 153 151 40 98 71% 94% 86% 88% 91% 89% 57% 66%

66 22%

16 4%

10 7%

6 4%

13 4%

26 18%

9 5%

10 11%

1 -

1 4%

32 35%

4 4%

5 4%

15 4%

23 6% 4 1%

4 2%

14 9%

128 87%

91 62%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 44-3 QUESTION 33: How many people does your company employ in all its facilities in Minnesota?

BANNER 3

3 100%

55 24%

148 37%

96 41%

7 14%

3 1%

13 17%

2 2%

5 6%

2 3% -

196 49%

189 96% 7 3%

67 34%

134 68%

21 11%

14 7%

40 21% 3 2%

17 9%

3 2%

15 8%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 44-4 QUESTION 33: How many people does your company employ in all its facilities in Minnesota? BANNER 4

BASE=TOTAL SAMPLE UNDER 50 --------

51-150 -----151+ ----

UNDER 10 11-25

26-50 51-100 101-150 151 TO 250 MORE THAN 250 DON'T KNOW/NOT SURE REFUSED

PAGE 221

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

7 2%

122 31%

93 23%

15 12%

13 14%

53 43%

46 49%

320 80%

60 68%

218 76%

92 89%

34 81%

103 71%

68 82%

34 81%

7 100%

20 5%

9 10%

19 7%

1 1%

3 7%

6 4%

3 4%

3 7%

60 15%

202 51% 82 20% 36 9%

19 22%

20 46%

52 36%

6 7%

24 9%

11 11%

4 8%

19 13%

21 7%

2 2%

3 8%

15 11%

2 3%

1 -

35 24%

64 62%

4 1%

5 12%

131 46%

14 16% 10 11%

16 4%

11 10%

40 46%

36 9%

23 6%

48 17%

9 10%

63 22% 26 9% 4 1%

17 16% 9 8%

11 26% 2 4%

1 3%

32 22%

11 13%

5 12%

5 4%

5 5%

1 1%

5 3%

2 2%

3 7%

1 -

1 1%

29 23%

33 26%

32 30%

41 22%

15 12%

11 7%

1 3%

2 4%

36 24%

13 6%

1 1%

120 30%

1 9%

9 10%

10 8%

191 48%

3 2%

13 11%

106 27%

5 5%

1 14%

4 9%

125 31%

104 69%

5 11%

10 12%

31 25%

128 32%

162 75%

3 4%

19 13%

151 38%

9 91%

6 86%

12 28%

214 54%

120 81%

18 41%

13 16%

15 5%

11 9%

10 2%

74 80%

53 63%

6 7%

97 79%

149 37% 25 17%

82 55%

6 63%

39 18%

96 45%

19 21%

26 18%

3 27%

46 22%

9 9%

15 10%

25 11%

2 2%

1 1%

12 8%

10 7%

49 32%

38 25%

91 71% 8 6%

50 39%

24 19%

79 64% 12 9%

36 28%

31 25%

65 61% 9 9%

33 31%

20 19%

131 69% 18 9%

64 34%

4 5%

1 2%

69 57%

18 15%

14 13%

16 9%

4 2%

9 7%

8 7%

4 4%

3 2%

1 9%

12 6%

10 7%

7 5%

8 6%

8 8%

14 7%

1 1%

1 -

1 1%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 44-5 QUESTION 33: How many people does your company employ in all its facilities in Minnesota? BANNER 5

BASE=TOTAL SAMPLE UNDER 50 -------51-150 -----151+ ----

UNDER 10 11-25 26-50 51-100 101-150 151 TO 250

MORE THAN 250 DON'T KNOW/NOT SURE REFUSED

TOTAL ----400 100% 320 80%

60 15%

20 5%

27 13%

8 4%

116 79% 21 15%

9 6%

86 80% 15 14%

6 5%

65 71% 20 21%

7 7%

60 76% 16 21%

3 3%

50 70% 17 23%

5 7%

258 81% 46 14% 14 4%

62 76% 14 17% 5 7%

49 78% 11 18% 2 4%

64 78% 11 14% 6 8%

125 81%

20 13% 9 6%

72 83%

14 16% 1 1%

320 100%

24 47%

43 43%

115 53%

6 12%

13 13%

6 12%

13 13%

16 7%

31 39%

25 35%

162 51%

41 50%

32 51%

35 43%

83 54%

46 53%

202 63%

36 9%

12 6%

17 12%

12 11%

12 13%

10 13%

7 10%

30 9%

6 7%

7 11%

11 13%

11 7%

6 7%

36 11%

36 9% 23 6%

4 1%

15 7% 12 6%

38 26%

15 10%

16 15%

5 5%

6 4%

10 9%

1 1%

18 20%

12 13% 8 9%

3 3%

19 23%

11 14% 5 6%

17 24%

66 21%

11 16%

30 9%

1 2%

2 1%

5 7%

16 5%

15 19%

7 8% 7 9%

1 2%

10 16%

8 13%

18 22%

3 5%

1 2%

32 21%

20 23%

5 6%

12 7%

10 12%

1 1%

7 8%

9 6%

3 4%

16 4%

8 4%

7 5%

6 5%

4 5%

3 3%

4 5%

12 4%

4 5%

1 2%

5 6%

7 5%

1 1%

1 -

M E E T I N G S T R E E T

199

82 26%

R E S E A R C H

20 46% -

23 54%

16 37%

2 4%

11 21%

3 5%

1 2%

6 6%

23 23%

8 8%

5 5%

4 9%

1 3%

2 2%

1 2%

3 6%

8 15%

7 14%

2 4% -

4 4%

3 6%

1 2%

18 18%

172 79%

42 42%

36 39%

9 18%

74 74%

30 55%

58 54%

13 13%

38 74%

61 42%

4 7%

79 79%

23 54%

110 52%

54 26%

48 88%

202 51%

82 20%

30 65%

5 4%

4 4%

6 8%

3 4%

4 8%

2 3%

4 5%

1 2%

1 -

PAGE 222

GROWTH DRIVERS GENDER AGE EMPLOYEES COMBINED INITIATIVE REGIONS ==================================== =========== ======================= =========== ============================= NORTH SW/ DEV-LAND WEST NEW MAX NEW ELIM STRTGY ELOP UNDER IF /NW SOUTH CENT CUST PROD PROD WASTE PLAN MGRS MEN WOMEN 18-44 45-54 55-64 65+ 50 101+ INIT MN MN INIT NONE ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----E E T319 I N G 81 S T R 62 E E T 82R E154 S E A 87 R C H320 212 145 108 92 79 M 71 43 54 100 51 100 218 53% 36% 27% 23% 20% 18% 80% 20% 16% 20% 39% 22% 80% 11% 10% 19% 10% 19% 42% 176 83%

36 47%

3 7%

11 9%

75 66%

10 14%

9 7%

1 1%

8 7%

15 10%

4 3%

1 1%

5 11%

6 5%

15 7%

1 1%

40 87%

14 18%

25 13%

20 11%

1 1%

59 77%

13 11%

6 13%

12 11%

1 1%

101 88%

17 22%

13 10%

18 17%

104 86%

21 19%

16 13%

15 12%

46 12%

24 20%

17 11%

20 16%

77 19%

47 24%

19 9%

21 14%

114 28%

7 7%

19 19%

12 12%

6 6%

1 1%

34 16% 12 5%

41 19%

20 9%

14 6%

2 1%

6 6%

10 4%

1 1%

Table 45-1 QUESTION 34: What are your annual business revenues? BANNER 1

BASE=TOTAL SAMPLE **D/S (UNDER $1M - $1M OR MORE)

UNDER $1 MILLION

$1 MILLION OR MORE ------------------

MORE THAN $1 MILLION TO $5 MILLION

MORE THAN $5 MILLION TO $10 MILLION

MORE THAN $10 MILLION TO $20 MILLION

MORE THAN $20 MILLION

DON'T KNOW/NOT SURE/REFUSED

BASE=TOTAL SAMPLE **D/S (UNDER $1M - $1M OR MORE)

UNDER $1 MILLION

$1 MILLION OR MORE ------------------

MORE THAN $1 MILLION TO $5 MILLION

MORE THAN $5 MILLION TO $10 MILLION

MORE THAN $10 MILLION TO $20 MILLION MORE THAN $20 MILLION

DON'T KNOW/NOT SURE/REFUSED

400 100%

140 35%

-42 -11%

-21 -15%

209 52%

77 55%

166 42%

108 27%

56 40%

BASE=TOTAL SAMPLE **D/S (UNDER $1M - $1M OR MORE)

UNDER $1 MILLION

$1 MILLION OR MORE ------------------

MORE THAN $1 MILLION TO $5 MILLION

MORE THAN $5 MILLION TO $10 MILLION

MORE THAN $10 MILLION TO $20 MILLION MORE THAN $20 MILLION

DON'T KNOW/NOT SURE/REFUSED

Just stop me when I get to the category that includes your company's total annual revenues.

37 43%

44 51%

43 11%

82 20%

13 29%

40 49%

-2 -4%

-14 -32%

23 48%

26 61%

21 44%

13 28%

11 27%

13 9%

3 3%

2 4%

8 19%

4 8%

4 9%

38 10%

15 10%

25 6%

-7 -8%

48 12%

29 33%

14 10%

27 7%

87 22%

35 25%

35 9%

8 6%

7 8%

6 6%

4 9%

4 8%

3 7%

4 9%

400 100%

171 43%

67 33%

85 49%

-54 -27%

209 52%

35 9%

166 42%

108 27%

27 7%

38 10% 25 6%

372 93%

7 4%

-47 -13%

121 60%

78 45%

199 53%

16 8%

19 11%

35 10%

66 33%

15 7%

24 12% 12 6%

2 2%

-28 -12%

38 47%

121 53%

19 24% 7 9%

1 1%

11 13% 4 4%

93 41%

64 28% 22 9%

16 7%

20 9%

14 6%

172 43%

-14 -8%

74 43%

88 51%

44 26% 14 8%

11 7%

18 11% 11 6%

36 21%

10 6%

12 7% 9 5%

22 24%

140 47%

21 23%

84 28%

209 52%

63 68%

166 42%

108 27%

35 9%

27 7%

38 10%

25 6%

12 13%

9 10%

20 21%

8 9%

166 100%

166 -108 -101 100% -100% -100% -

108 100%

101 100%

35 35%

108 100% -

27 27%

38 38% -

202 51%

117 29%

79 20%

91 23%

1 1%

44 49%

109 54%

-82 -70%

-70 -88%

43 21%

95 81%

71 89%

2 1%

21 18%

12 16%

1 1%

2 2%

153 76%

40 20% 1 -

6 3%

12 11%

63 54% 8 7%

10 9%

5 6%

18 22%

35 45%

8 10%

97 24%

60 15%

46 12%

1 1%

-30 -31%

-17 -29%

-6 -12%

43 48%

59 61%

37 61%

24 53%

29 30%

24 26%

28 29%

4 5%

14 15%

3 4%

9 10%

5 6%

10 11%

8 8%

8 9%

19 32%

19 41%

18 29%

36 36%

173 58%

1 1%

6 11%

4 9%

4 7%

-65 -22%

58 58%

26 26%

6 13%

3 6%

299 75%

22 22%

13 29%

7 11%

6 10%

100 25%

108 36%

-31 -40%

56 36%

63 59%

23 71%

48 62%

6 4%

36 12% 18 6%

77 19%

-18 -54%

26 9%

3 3%

33 8%

-22 -20%

96 61%

44 28%

29 10%

107 27%

40 26%

82 27%

6 6%

157 39%

4 3%

2 1%

5 3%

41 39%

24 22%

6 17%

11 33%

17 22%

25 32%

14 13%

6 19%

8 11%

11 10%

4 13%

15 19%

15 14% 3 2%

2 6%

4 12%

12 16%

PAGE 224

152 41%

103 28%

21 5%

196 49%

155 39%

1 5%

-33 -17%

-21 -14%

9 43%

109 56%

14 7%

10 48%

4 21%

25 7%

2 10%

21 6%

2 9%

36 10%

3 12%

77 39%

64 33%

12 6%

20 10%

10 5%

21 5%

181 45%

7 35%

-35 -19%

84 54%

6 29%

103 57%

21 13%

1 5%

17 9%

63 41%

13 63%

67 37%

59 15%

7 12%

150 37%

236 59%

22 6%

129 32%

14 62%

64 50%

-13 -8%

-56 -24%

24 41%

76 51%

141 60%

3 4%

15 10%

24 10%

11 9%

8 14%

17 11%

25 11%

3 12%

11 8%

31 52%

64 43%

84 36%

5 24%

8 38%

-40 -22%

56 44%

106 59%

M36 E E T 1 I N G 60 S T R E8E T 36R E 69 S E A R6C H 30 23% 4% 33% 14% 24% 29% 26% 23% 12 8%

16 10%

8 5%

1 7%

13 7%

2 8%

11 6%

3 13%

13 7%

5 8%

4 7%

8 5%

10 6%

22 9% 11 5%

181 45%

8 6%

5 4%

9 7%

36 9%

172 43%

-7 -12%

9 26%

90 52%

71 58%

33 53%

101 49%

4 6%

22 10%

55 31%

6 16%

43 25%

13 7%

14 8%

9 5%

208 52%

-23 -19%

26 74%

19 10%

62 15%

-19 -11%

66 37%

19 10%

123 31%

17 47%

3 8%

1 3%

71 41%

14 8%

19 11% 11 6%

48 39% 33 26%

10 8%

26 41% 17 27%

7 6%

7 11%

5 4%

3 5%

21 17%

6 9%

-9 -4%

49 12%

-74 -32%

16 33%

146 63%

3 5%

22 9%

92 44%

29 59%

55 27%

11 23%

13 6%

12 6% 14 7%

233 58%

13 26%

2 5%

4 8%

202 50%

151 38%

119 30%

95 24%

101 25%

30 32%

64 63%

-1 -

-64 -32%

-46 -30%

-54 -46%

-28 -30%

141 47%

128 63%

93 61%

83 70%

59 61%

23 8%

24 12%

16 5%

17 6%

63 31%

64 32%

15 8%

24 12%

11 5%

47 31%

29 25%

44 29%

35 29%

11 7%

12 10%

12 8%

6 5%

15 10%

22 15%

11 9%

26 22%

34 33% 30 30%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

135 49%

83 49%

89 53%

86 50%

13 5%

123 45%

4 2%

79 46%

18 11% 71 42%

147 37%

16 21%

27 58%

17 12%

4 4%

16 6%

9 6%

10 6%

16 23%

25 17%

200

16 23%

94 63%

10 10%

9 5%

32 45%

101 69%

18 12%

8 5%

39 52%

97 66%

36 25%

8 12%

16 6%

40 56%

55 78%

10 6%

7 7%

16 34%

76 44%

10 6%

7 7%

73 18%

-11 -24%

11 6%

4 2%

74 18%

-51 -34%

18 7%

9 5%

72 18%

-69 -47%

6 6%

13 5%

47 12%

-60 -41%

16 16%

2 2%

147 37%

-44 -62% 11 16%

9 5%

11 15%

5 7%

16 11%

14 10%

32 22%

43 29%

41 28%

39 26%

18 12%

13 9%

26 18%

12 8%

148 37%

24 16%

3 76%

83 56%

67 29%

38 26%

25 11%

32 14% 15 6%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

10 6%

23E T I 19N G S 76T R E 50E T 48R E S 47E A R 20C H 39 M E 24% 19% 28% 29% 28% 27% 28% 26% 10 10%

146 36%

3 76% -

1 24%

59 40%

12 8% 2 2%

6 4%

7 5%

PAGE 225

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

3 1%

72 31%

Just stop me when I get to the category that includes your company's total annual revenues.

298 74%

-41 -44%

101 25%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

92 23%

-42 -11%

108 27%

166 42%

Just stop me when I get to the category that includes your company's total annual revenues.

201 50%

-42 -11%

228 57%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- -----

Table 45-3 QUESTION 34: What are your annual business revenues? BANNER 3

PAGE 223

Table 45-2 QUESTION 34: What are your annual business revenues? BANNER 2

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

18 12%

23 16%

11 7%

8 18%

9 19%

4 8%

6 14%

4 8%

10 14%

31 42%

7 10%

3 4%

4 6%

1 1%

6 8%

33 45%

9 12%

5 7%

3 4%

2 3%

196 49%

-5 -6%

-74 -38%

37 51%

125 64%

20 28%

8 11%

4 6%

5 7%

3 5%

196 49%

38 19%

51 26%

114 58%

51 26%

54 28%

22 11%

19 10%

33 17%

19 10%

76 39%

13 6%

8 4%

1 1%

6 3%

Table 45-4 QUESTION 34: What are your annual business revenues? BANNER 4

BASE=TOTAL SAMPLE **D/S (UNDER $1M - $1M OR MORE)

UNDER $1 MILLION

$1 MILLION OR MORE ------------------

400 100%

87 22%

**D/S (UNDER $1M - $1M OR MORE)

UNDER $1 MILLION

$1 MILLION OR MORE ------------------

MORE THAN $1 MILLION TO $5 MILLION

MORE THAN $5 MILLION TO $10 MILLION

MORE THAN $10 MILLION TO $20 MILLION MORE THAN $20 MILLION

DON'T KNOW/NOT SURE/REFUSED

109 38%

51 49%

209 52%

55 64%

165 58%

29 33%

24 28%

10 12%

35 12%

25 6%

3 3%

41 40%

29 68%

93 65%

6 6%

38 10%

9 11%

-52 -36%

21 7%

29 10%

12 4%

144 36%

-16 -37%

25 24%

12 14%

43 11%

10 9%

80 28%

35 9%

Table 45-5 QUESTION 34: What are your annual business revenues?

BASE=TOTAL SAMPLE

103 26%

-55 -19%

27 7%

BANNER 5

285 71%

-27 -31%

166 42%

MORE THAN $10 MILLION TO $20 MILLION

DON'T KNOW/NOT SURE/REFUSED

Just stop me when I get to the category that includes your company's total annual revenues.

-42 -11%

108 27%

MORE THAN $20 MILLION

PAGE 226

MORE THAN $1 MILLION TO $5 MILLION

MORE THAN $5 MILLION TO $10 MILLION

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

13 31%

17 39%

42 29%

6 15%

13 9%

9 6%

122 31%

93 23%

-20 -16%

-15 -17%

29 69%

2 30%

66 54%

51 56%

5 6%

4 10%

1 14%

12 9%

9 10%

5 6%

5 11%

1 16%

11 9%

12 13%

4 5%

4 4%

31 37%

7 2%

3 39%

16 11%

17 12%

12 11%

-18 -42%

44 53%

16 20%

6 15%

42 11%

13 15%

47 33%

6 6%

83 21%

8 10%

11 27%

16 37%

4 11%

2 4%

5 70%

46 38%

36 39%

38 31%

23 25%

6 5%

7 8%

9 8%

5 5%

149 37%

-14 -9%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

2 17%

-44 -21%

-70 -46%

-52 -40%

-51 -41%

-59 -55%

-82 -43%

-15 -12%

78 53%

3 36%

124 58%

107 71%

87 68%

85 68%

78 74%

131 69%

12 8%

1 8%

18 9%

24 16%

12 9%

21 17%

13 13%

25 13%

27 12%

18 12%

65 43%

43 29% 12 8%

11 7%

6 4%

5 53%

2 18% -

1 9%

1 11%

80 37%

63 29% 16 7% 11 5%

37 24%

48 31% 18 12% 8 5%

35 28%

44 34% 12 10%

19 15%

6 4%

34 27% 29 23% 12 9%

23 19% 7 5%

20 19% 29 27% 11 11%

25 23% 8 8%

49 26% 59 31% 21 11%

26 14% 10 5%

-42 -11%

212 53%

8 17%

65 54%

39 34%

41 54%

19 42%

9 7%

6 6%

41 34% 7 6%

9 7% 5 4%

-25 -18%

209 52%

102 48%

35 9%

166 42%

108 27% 27 7%

38 10%

25 6%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

82 20%

43 50%

165 52%

81 56%

51 47%

57 62%

49 62%

52 73%

169 53%

18 8%

15 10%

9 8%

10 11%

9 11%

7 10%

28 9%

8 9%

5 8%

10 12%

13 8%

16 8%

15 10%

16 15%

13 14%

11 14%

5 7%

30 10%

8 10%

4 7%

13 16%

12 8%

60 28% 8 4%

14 7%

40 28% 11 8%

9 6%

22 20% 5 4%

8 7%

26 29% 8 9%

5 6%

26 32%

22 28%

8 10%

5 6%

18 25%

133 42%

33 41%

40 49%

54 67%

68 44%

-36 -11%

29 32%

30 49%

320 80%

-35 -48%

49 46%

-30 -36%

87 22%

-24 -30%

55 38%

-5 -7%

154 39%

-28 -30%

96 45%

-7 -8%

62 16%

-2 -2%

26 41%

25 30%

-10 -6%

78 50%

3 4%

2 2%

20 6%

17 5%

7 9%

8 10%

1 1%

6 10%

M E E T I N G S T R E E T

201

4 5% 3 3%

54 10%

1 3%

27 49%

-37 -85%

40 46%

138 43%

38 88%

5 6%

23 7%

4 10%

3 1%

29 67%

29 91 17 20 28 39 19 103 M41% E E T29% I N G21% S T R32% E E T34%R E26% S E A22% R C H32% 11 15%

43 11%

27 9%

13 8%

9 11%

9 6%

3 4%

6 7%

R E S E A R C H

9 3% 16 5%

100 19%

51 10%

100 19%

218 42%

2 3%

-14 -14%

-13 -25%

-24 -24%

-23 -11%

25 46%

51 51%

30 58%

60 60%

114 52%

37 37%

17 34%

36 36%

91 42%

2 4%

15 28%

25 25%

13 26%

25 25%

61 28%

3 7%

3 6%

5 5%

8 16%

9 9%

14 6%

4 10%

70 61%

29 38%

24 21%

18 24%

3 2%

6 8%

6 5%

5 5%

12 15%

5 7%

7 9%

27 58%

10 23% 2 4%

7 15%

PAGE 227

Just stop me when I get to the category that includes your company's total annual revenues.

145 36%

46 12%

-12 -16%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

-6 -3%

77 19%

31 27%

50 42%

114 28%

5 9%

2 4%

12 12% 9 9%

12 12%

3 6%

6 11%

4 8%

6 6%

19 19%

4 4%

20 9%

19 9%

13 6%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 46-1 QUESTION 35: Which one of the following best describes your company's primary business? BANNER 1

BASE=TOTAL SAMPLE PRECISION MANUFACTURING PROCESS MANUFACTURING METAL FABRICATION AN ORIGINAL EQUIPMENT MANUFACTURER, OEM

PLASTICS PRINTING

ELECTRONICS COMPONENTS WOODWORKING/WOOD MANUFACTURING

TEXTILE MANUFACTURING CABINET MANUFACTURING/ CUSTOM CABINETS

INFORMATION TECHNOLOGY, IT

FOOD MANUFACTURING AUTOMOTIVE ANIMAL/AGRICULTURAL MANUFACTURING

RECYCLING

SOMETHING ELSE

PAGE 228

91 23%

60 15%

140 35%

36 25%

33 23%

20 14%

87 22%

27 31%

13 28% 5 11%

13 15%

5 10%

2 4%

3 4%

3 7%

7 5%

3 3%

14 3%

5 5%

4 8%

2 2%

3 5%

1 1%

5 3%

6 1%

3 2%

6 2%

5 1%

2 1%

1 1%

3 1%

1 1%

2 2%

2 1%

1 1%

2 1%

12 3%

1 2%

1 1%

6 2%

5 3%

8 20%

5 5%

15 4%

6 4%

9 20%

9 10%

14 4%

43 11%

1 3%

16 11% 7 5%

10 20%

14 16%

46 12% 19 5%

48 12%

2 3%

82 20%

16 19%

23 28%

18 22%

32 14%

34 20%

44 26%

28 16%

29 17%

44 27%

19 12%

108 27%

101 25%

28 26%

31 30%

24 22%

19 19%

18 16%

19 19%

202 51%

40 20%

49 24%

30 15%

117 29%

32 28%

5 6%

11 11%

25 12%

16 14%

1 2%

4 4%

10 4%

5 3%

9 5%

5 5%

1 1%

10 5%

4 4%

1 2%

1 1%

2 2%

2 5%

2 4%

2 5% -

2 5%

9 4%

6 2%

5 3%

8 5%

5 3%

6 4%

2 2%

4 2%

1 1%

2 2%

3 3%

4 2%

2 1%

4 2%

2 1%

3 1%

1 1%

1 -

2 3% -

7 3%

1 1%

5 3%

4 4%

4 3%

2 1%

3 1%

4 4%

2 2%

5 2%

4 2%

4 4%

9 5%

2 1%

8 8%

3 2%

1 1%

6 4%

2 2%

7 3%

8 4%

3 3%

3 1%

2 2%

4 2%

1 1%

4 2%

91 100%

8 7%

13 12%

7 4%

14 18%

12 15%

19 11%

12 5%

91 23%

17 15%

22 13%

1 1%

79 20%

24 30%

28 24%

25 11%

3 7%

47 21%

166 42%

14 17%

2 2%

63 28%

172 43%

3 6%

3 7%

228 57%

5 6%

1 2%

3 3%

3 2%

3 4%

1 1%

3 3%

2 2%

1 -

1 2%

3 2%

4 5%

3 1%

1 1%

6 3%

1 1%

100 25%

299 75%

157 39%

23 24%

68 23%

40 26%

60 100%

1 1%

46 12%

97 100%

1 1%

60 15%

2 2%

3 1%

97 24%

18 18%

3 3%

46 100% -

79 26%

41 14%

37 23%

25 16%

107 27%

24 22%

24 23%

17 16%

9 9%

37 12%

16 10%

13 12%

6 6%

10 3%

8 5%

4 4%

5 5%

2 2%

16 5%

9 3%

12 4%

6 4%

3 2%

6 4%

2 2%

5 5%

4 3%

4 4%

2 1%

3 2%

3 3%

1 1%

2 1%

3 2%

2 1%

1 1%

1 -

1 1%

2 1%

2 2%

10 3%

1 1%

2 2%

BASE=TOTAL SAMPLE PRECISION MANUFACTURING PROCESS MANUFACTURING METAL FABRICATION AN ORIGINAL EQUIPMENT MANUFACTURER, OEM

PLASTICS PRINTING

ELECTRONICS COMPONENTS WOODWORKING/WOOD MANUFACTURING

TEXTILE MANUFACTURING

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----171 43%

372 93%

91 23%

44 22%

38 22%

82 22%

46 12%

23 11%

22 13%

45 12%

15 4%

9 4%

5 3%

14 4%

7 4%

12 3%

2 9%

5 2%

6 4%

3 13%

8 4%

4 6%

3 2%

3 1%

3 12%

6 5%

3 2%

6 2%

5 2%

2 1%

3 2%

1 2%

2 1%

3 1%

1 3%

3 2%

5 1%

5 2%

60 15% 19 5%

14 4%

14 3%

SOMETHING ELSE

6 3%

5 3%

6 2%

3 1%

3 2%

3 1%

4 2%

2 1%

1 1%

12 3%

7 4%

2 1%

1 -

1 1%

4 2%

9 44%

41 21%

1 4%

1 3%

2 12%

1 4%

1 1%

4 2%

155 39%

13 4%

6 1%

3 1%

196 49%

3 14%

1 6%

6 2%

5 1%

ANIMAL/AGRICULTURAL MANUFACTURING

5 2%

21 5%

16 4%

2 1%

FOOD MANUFACTURING

RECYCLING

7 4%

56 15%

5 2%

6 2%

AUTOMOTIVE

9 5%

26 15%

92 25%

6 2%

CABINET MANUFACTURING/ CUSTOM CABINETS

INFORMATION TECHNOLOGY, IT

29 15%

40 23%

2 1%

11 3%

21 5%

181 45%

40 26%

7 33%

22 11%

20 13%

8 4%

6 4%

51 26% 31 16% 11 5%

7 4%

2 1%

1 1%

5 3%

1 1%

1 -

1 4%

11 14%

8 11%

2 6%

1 2%

3 4%

5 6%

1 1%

1 1% -

1 4%

4 3%

3 3%

1 1% 3 4%

PAGE 229

201 50% 53 26%

15 20%

400 100% 97 24%

19 24%

9 12%

1 1% -

77 19%

2 7%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 46-2 QUESTION 35: M E E T I N G S T R E E T R E S E A R C H Which one of the following best describes your company's primary business? BANNER 2

5 14%

2 1%

3 2%

5 16%

1 1%

4 1%

5 2%

7 23%

1 3%

2 2%

1 1%

9 27%

2 2%

33 8%

29 19% 25 16% 6 4%

6 4%

4 2%

7 35% 1 5%

59 15%

150 37%

236 59%

34 19%

14 24%

42 28%

16 9%

10 17%

9 5%

1 1%

51 28% 31 17%

11 6%

3 2%

1 1%

4 2%

1 5%

3 2%

1 1%

1 -

1 5%

2 2%

5 3%

1 4%

4 2% -

1 1%

6 4%

12 20% 8 14% 1 1%

22 6%

129 32%

181 45%

59 25%

6 26%

26 20%

20 14%

27 11%

3 12%

4 3%

10 4%

1 3%

31 21% 20 13%

1 2%

4 6%

7 4% 9 6%

2 1%

56 24%

33 14% 12 5% 8 4%

4 2%

3 2%

5 2%

2 4%

2 1%

1 2%

2 2%

6 4%

1 2%

M E E T I N G S T R E E T

202

1 -

8 3%

3 14%

5 22% 1 4%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

43 24%

10 29%

35 20%

29 23%

14 23%

48 23%

9 18%

17 13%

23 13%

6 17%

17 10%

17 13%

3 5%

27 13%

5 4%

11 6%

1 2%

4 2%

2 1%

6 9%

8 4%

35 27% 20 16%

1 4% -

3 2% 4 3%

2 1%

43 24%

25 14% 9 5% 4 2%

R E S E A R C H

4 3%

1 1%

6 5%

4 7%

1 2%

3 2%

1 1%

4 2%

1 1%

2 1%

6 5%

3 1%

3 2%

1 1%

8 4%

13 21%

3 4%

1 1%

3 8%

7 4%

19 16%

12 20%

5 4%

4 2%

1 2%

27 16%

30 24%

11 6%

1 1%

6 16%

43 25%

7 20%

1 1%

2 1%

3 2%

4 2%

2 1%

1 1%

12 6% 4 2%

3 1%

148 37%

45 19%

2 52%

44 29%

6 12%

25 11%

19 13%

3 6%

7 3%

1 18%

6 4%

4 2%

10 7%

68 29%

8 16%

44 19%

3 5%

10 4%

8 4%

3 7%

1 1%

2 1%

1 2%

1 1%

1 2%

3 1%

1 1%

2 2%

1 1%

1 2%

1 1%

1 2%

1 3%

8 5%

3 2%

2 3%

26 12%

233 58%

13 26%

6 3%

52 25%

5 2%

4 2%

1 2%

1 -

1 2%

2 1%

7 3%

2 5%

1 30%

24 16%

14 10% 8 6%

3 2%

5 2%

2 1%

4 3%

3 2%

2 1%

7 3%

5 3% 2 1% -

4 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 46-3 QUESTION 35: Which one of the following best describes your company's primary business? BANNER 3

BASE=TOTAL SAMPLE PRECISION MANUFACTURING PROCESS MANUFACTURING METAL FABRICATION AN ORIGINAL EQUIPMENT MANUFACTURER, OEM PLASTICS

PRINTING ELECTRONICS COMPONENTS WOODWORKING/WOOD MANUFACTURING

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

91 23%

19 21%

71 24%

50 25%

37 24%

31 26%

22 23%

24 24%

97 24%

60 15%

20 21%

15 16%

75 25%

44 15%

46 12%

10 11%

36 12%

15 4%

1 1%

14 5%

19 5%

14 4%

5 6%

6 7%

13 4%

7 2%

51 25%

31 15% 19 9%

13 6%

11 5%

7 4%

33 22%

25 17% 14 9%

6 4%

8 5%

26 22%

24 20%

24 25%

15 16%

22 22%

14 13%

4 3%

2 2%

2 1%

1 2%

1 1%

RECYCLING

SOMETHING ELSE

2 1%

12 3%

2 2% 6 7%

6 2%

3 1%

3 2%

1 -

3 7%

7 9%

6 8%

9 12%

21 11%

25 13%

23 16%

5 3%

4 3%

2 2%

47 24%

6 4%

5 2%

1 1%

42 22%

4 3%

4 1%

1 1%

16 21%

2 3%

1 1%

16 22%

9 5%

5 1%

1 -

17 24%

7 4%

FOOD MANUFACTURING

2 1%

13 27%

8 5%

1 1%

19 13%

35 24%

11 4%

6 6%

2 2%

3 1%

23 15%

196 49%

1 1%

3 4%

2 2%

1 1%

AUTOMOTIVE

15 21%

196 49%

6 6%

3 3%

2 2%

2 1%

ANIMAL/AGRICULTURAL MANUFACTURING

24 14%

73 18%

3 3%

4 3%

3 1%

3 2%

21 13%

35 24%

42 29%

74 18%

18 12%

1 2%

1 -

25 15%

34 23%

42 28%

72 18%

19 13%

6 2%

37 14%

14 20%

21 30%

2 2% -

1 1%

3 3%

2 2% 1 1%

1 1%

2 2%

15 6%

10 4%

12 7%

13 8%

5 3%

8 5%

8 4%

4 2%

2 3%

1 2%

10 4%

7 4%

6 3%

5 3%

3 4%

3 3%

6 2%

3 2%

2 1%

4 1%

2 1%

1 1%

2 2% 2 2%

1 1%

6 2% 6 2%

3 1%

2 1%

6 6%

7 2%

1 1%

2 1%

3 2%

4 2%

1 1%

2 1%

4 2%

3 2%

2 1%

1 1%

4 2%

5 3%

1 1%

2 2%

4 3%

1 1%

4 3%

5 3%

6 4%

2 3%

1 2%

3 5%

8 5%

1 1%

2 1%

1 2% -

3 2%

2 1%

3 2%

1 1%

2 2%

5 4%

2 1%

1 1%

5 10%

2 1%

1 1%

16 34%

4 3%

4 2%

3 2%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

19 13%

CABINET MANUFACTURING/ CUSTOM CABINETS

39 23%

45 26%

147 37%

7 10%

3 3%

6 1%

40 23%

37 22%

146 36%

20 12%

1 1%

INFORMATION TECHNOLOGY, IT

39 23%

37 22%

147 37%

20 12%

5 4%

3 2%

64 23%

57 21%

71 18%

21 12%

4 2%

3 1%

171 43%

36 13%

4 2%

6 2%

169 42%

15 15%

10 3%

170 42%

11 11%

4 5%

6 2%

274 68%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

10 8%

14 3%

TEXTILE MANUFACTURING

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 230

1 1%

1 2%

12 17%

13 18%

10 14%

14 19%

18 24%

3 5%

11 15%

3 3%

3 4%

1 1%

2 3%

8 4%

10 5%

7 4%

4 2%

10 5%

3 2%

3 1%

4 2%

2 3%

1 1%

1 2%

1 1%

2 1%

1 2%

2 3%

2 1%

4 8%

3 1%

27 14%

5 3%

2 2%

43 22%

5 2%

4 6%

5 7%

2 2%

11 6%

2 2%

2 3%

3 4%

32 16%

4 6%

2 2%

5 7%

51 26%

1 1%

3 4%

2 1%

3 1%

3 4%

4 2%

2 1%

1 1%

5 7%

1 -

8 4%

5 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 46-4 QUESTION 35: M E E T I N G S T R E E T R E S E A R C H Which one of the following best describes your company's primary business? BANNER 4

BASE=TOTAL SAMPLE PRECISION MANUFACTURING PROCESS MANUFACTURING METAL FABRICATION AN ORIGINAL EQUIPMENT MANUFACTURER, OEM PLASTICS

PRINTING ELECTRONICS COMPONENTS WOODWORKING/WOOD MANUFACTURING

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

91 23%

15 17%

67 24%

21 20%

9 21%

35 24%

16 19%

8 19%

97 24% 60 15%

23 27% 16 19%

46 12%

10 11%

15 4%

6 7%

19 5%

14 4%

5 6%

2 3%

67 24% 45 16%

34 12%

12 4%

9 3%

25 25% 14 13%

12 11%

5 5%

3 3%

CABINET MANUFACTURING/ CUSTOM CABINETS

6 2%

1 1%

3 1%

3 3%

FOOD MANUFACTURING

5 1%

INFORMATION TECHNOLOGY, IT

AUTOMOTIVE ANIMAL/AGRICULTURAL MANUFACTURING

RECYCLING

SOMETHING ELSE

6 1%

3 1%

2 1%

12 3%

2 2%

1 1%

6 2%

1 2%

4 4%

6 7%

4 4%

1 2%

4 4%

1 2%

7 5%

2 2%

1 16%

9 7%

10 8%

15 17%

19 20%

4 3%

3 3%

151 38%

128 32%

1 12%

56 26%

30 20%

27 21%

32 22%

1 12%

14 9%

2 1%

10 6%

4 41%

1 1%

3 2%

1 1%

7 6%

M E E T I N G S T R E E T

203

1 1%

3 2%

2 3%

1 1%

2 1%

21 17%

24 22%

41 21%

16 13%

14 12%

11 14%

6 13%

19 18%

10 8%

15 12%

12 11%

5 4%

5 5%

37 19%

23 19%

26 23%

27 35%

15 12%

17 15%

10 12%

6 13% 1 2%

7 4%

5 4%

5 5%

3 4%

7 4%

2 1%

3 2%

2 2%

6 3%

4 4%

4 3%

4 5%

7 4%

9 7%

3 3%

4 2%

1 -

4 2%

3 2%

3 3%

4 2%

3 1%

5 3%

1 1%

3 2%

2 1%

1 1%

1 8%

R E S E A R C H

2 1% 2 1% 1 -

5 2%

2 1% -

4 3% -

2 2%

1 1%

3 2%

2 2%

1 1%

1 1% 1 1%

1 1%

5 4%

1 1% -

6 5%

7 6%

3 3%

4 2%

3 2%

1 1%

1 -

2 2%

3 2% 1 1%

2 1%

1 1%

6 3%

17 38%

17 9%

6 3%

4 3%

17 13%

30 24%

2 2%

11 24%

1 1%

9 4%

46 12%

14 18%

5 4%

1 2%

77 19%

30 26%

6 5%

3 2%

114 28%

30 25%

6 3%

1 10%

1 2%

120 30%

53 28%

2 2%

4 3%

191 48%

36 34%

5 4%

1 1%

14 9%

106 27%

27 22%

7 5%

5 4%

1 1%

7 3%

24 16%

125 31%

40 31%

6 4%

4 4%

18 8%

43 29%

10 5%

7 6%

34 16%

59 27%

4 3%

1 1%

33 22%

214 54%

2 18%

5 5%

2 3%

1 1%

13 14%

10 2%

40 27%

5 4%

2 5%

37 30%

27 29%

1 1%

2 27%

22 18%

1 2%

149 37%

1 16%

7 16%

2 3%

2 2%

8 3%

4 3%

6 7%

93 23%

7 16%

3 2%

1 1%

5 4%

11 13%

1 2%

8 5%

11 14%

122 31%

3 41%

2 4%

1 1%

2 1%

14 10%

7 2%

14 33%

2 2%

2 1%

1 1%

25 17%

17 21%

6 4%

2 4%

4 1%

36 25%

1 2%

3 7%

4 4%

4 1%

2 4%

3 3%

10 4%

1 1%

10 22%

4 10%

4 4%

6 2%

10 23%

5 5%

14 3%

TEXTILE MANUFACTURING

PAGE 231

2 1%

2 2%

1 1%

4 3%

3 4%

1 2%

1 1%

1 2%

1 1%

1 2%

1 1% -

3 4%

1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019 Table 46-5 QUESTION 35: Which one of the following best describes your company's primary business? BANNER 5

BASE=TOTAL SAMPLE PRECISION MANUFACTURING PROCESS MANUFACTURING METAL FABRICATION AN ORIGINAL EQUIPMENT MANUFACTURER, OEM PLASTICS

PRINTING ELECTRONICS COMPONENTS WOODWORKING/WOOD MANUFACTURING

TEXTILE MANUFACTURING CABINET MANUFACTURING/ CUSTOM CABINETS

INFORMATION TECHNOLOGY, IT FOOD MANUFACTURING AUTOMOTIVE ANIMAL/AGRICULTURAL MANUFACTURING

RECYCLING

SOMETHING ELSE

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

91 23%

53 25%

27 19%

28 26%

15 16%

22 28%

14 19%

78 24%

97 24% 60 15%

48 23% 36 17%

41 28% 23 16%

17 16% 17 16%

46 12%

22 10%

16 11%

19 17%

15 4%

8 4%

4 3%

4 4%

19 5%

14 4%

13 6%

6 3%

11 7%

3 2%

5 4%

8 7%

BASE=TOTAL SAMPLE **D/S (LESS THAN 15 YRS 16 YRS OR MORE)

TOTAL LESS THAN 15 YEARS -----------------------1 - 3 YEARS

4 - 6 YEARS 7 - 10 YEARS 11 - 15 YEARS 16 YEARS OR MORE REFUSED

27 29% 13 15%

12 15%

4 5%

6 2%

2 1%

4 3%

1 1%

2 3%

5 1%

3 1%

6 1%

9 15%

11 3%

5 6%

3 3%

9 11%

3 4%

3 3%

4 6%

2 3%

1 1%

13 4%

11 3%

1 1%

13 4%

6 2%

4 1%

6 7%

3 4%

1 2%

1 1%

1 2%

4 5%

3 4%

2 2%

4 5%

4 1%

2 2%

3 1%

1 1%

2 1%

1 1%

2 1%

1 1%

2 1%

1 1%

2 1%

12 3%

1 1%

6 3%

2 2%

3 2%

1 1%

2 2%

1 2%

2 3%

3 4%

5 2%

2 1%

8 2%

6 4%

2 2%

1 1%

3 4%

6 8%

1 2%

6 4%

3 2%

61 28%

47 15%

4 9%

6 11%

12 12%

13 26%

26 26%

31 14%

41 13%

5 6%

14 4%

15 5%

3 3%

11 4%

2 1%

3 3%

4 1%

3 2%

1 1%

2 3%

2 2%

4 1%

7 17%

8 15%

4 8%

3 7%

1 3%

8 3%

1 1%

2 4%

1 1%

2 1%

1 2%

3 3%

1 1%

3 3%

5 5%

5 3%

2 4%

1 2%

3 1%

4 9%

3 5%

2 4%

3 5%

1 1%

11 22%

4 4%

1 1%

1 -

13 13%

1 1%

1 2%

2 4%

4 8%

30 30%

3 7%

4 1%

11 20%

3 8%

1 1%

218 42%

20 20%

4 2%

100 19%

10 19%

11 3%

2 2%

51 10%

22 22%

3 3%

100 19%

13 25%

6 4%

4 2%

54 10%

14 33%

8 9% 3 4%

43 11%

73 23%

2 2%

77 24%

11 12%

1 2%

19 22%

25 16%

19 13%

6 8%

320 80%

26 29%

10 12%

4 6%

87 22%

36 24%

4 6%

3 5%

3 3%

1 1%

17 27%

1 1%

32 21%

51 16%

1 1%

6 6%

3 5%

19 23%

17 21%

5 5%

4 5%

154 39%

16 26%

13 16%

12 14%

6 6%

82 20%

23 28%

35 11%

1 1%

2 1%

10 14%

62 16%

74 23%

8 11%

4 3%

2 1%

7 9%

24 34%

13 16%

9 4%

6 2%

20 26%

81 20%

5 5%

14 3%

1 2%

6 6% -

2 2%

1 2%

25 25% 10 10% 4 4% 4 4%

3 6%

2 2%

3 3%

2 4%

1 1%

3 3%

2 4%

46 21% 23 11% 11 5% 7 3%

9 4%

5 2%

2 1%

4 2%

3 1%

1 1%

2 2%

3 1%

1 1% 7 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 47-1 QUESTION 36: How many years has your company been in operation? BANNER 1

PAGE 232

M E E T I N G S T R E E T

PAGE 233

R E S E A R C H

140 35%

87 22%

-200 -50%

-66 -47%

-36 -41%

7 2%

1 1%

100 25% 17 4%

37 27% 7 5%

42 10%

20 14%

299 75%

103 73%

34 9%

1 -

9 6%

26 29%

48 12%

-47 -58%

2 5%

3 3%

10 20% 3 7%

10 12%

5 10%

62 71%

82 20%

-23 -53%

4 5%

10 11%

43 11%

-28 -59%

1 3%

38 80%

9 22% -

17 21% 2 2%

228 57%

-98 -57%

2 1%

5 3%

63 28% 11 5%

2 5%

8 10%

30 13%

32 76%

64 79%

165 72%

5 12%

1 2%

5 6%

172 43%

-102 -45%

19 9%

37 21% 5 3%

11 7%

15 9%

135 78%

1 1%

166 42%

108 27%

101 25%

-50 -30%

-57 -53%

-80 -80%

5 3%

1 1%

58 35%

26 24%

10 10%

10 6%

3 3%

2 2%

17 10%

15 14%

1 1%

26 16%

108 65%

6 5%

82 76%

M E E T I N G S T R E E T

204

6 6%

91 90%

202 51%

-70 -35% 66 33%

7 3%

117 29%

-71 -60% 23 20%

79 20%

-44 -49%

2 2%

10 13%

11 6%

3 3%

2 2%

20 10%

13 11%

1 2%

28 14%

136 67%

91 23%

-59 -75%

7 6%

94 80%

R E S E A R C H

23 26%

299 75%

9 20%

100 100%

2 4%

17 17%

2 5%

34 35%

1 2%

8 9%

68 74%

100 25%

18 19%

7 8%

69 87%

46 12%

-28 -60%

1 1%

10 11%

60 15%

-23 -39%

4 4%

7 8%

97 24%

-60 -62%

9 9%

79 81%

18 30% 2 3%

7 12%

4 10%

41 68%

37 80%

8 13%

1 2%

100 -299 100% -100% 7 7%

42 42% -

157 39%

33 8%

77 19%

-50 -47%

-17 -52%

-44 -57%

2 1%

3 3%

1 3%

44 28% 9 6%

28 27% 5 5%

16 10%

13 12%

112 72%

78 73%

17 11%

1 -

299 100%

107 27%

-69 -44%

8 7%

1 -

8 24% 1 3%

17 22% 1 1%

3 9%

9 12%

25 76%

61 78%

3 9%

7 9%

Table 47-2 QUESTION 36: How many years has your company been in operation? BANNER 2

BASE=TOTAL SAMPLE **D/S (LESS THAN 15 YRS 16 YRS OR MORE)

TOTAL LESS THAN 15 YEARS -----------------------1 - 3 YEARS

4 - 6 YEARS 7 - 10 YEARS 11 - 15 YEARS 16 YEARS OR MORE REFUSED

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

-200 -50%

-86 -43%

-99 -58%

7 2%

5 2%

2 1%

100 25% 17 4%

57 28% 7 4%

35 21% 9 5%

372 93%

-186 -50% 93 25% 7 2%

17 4%

BASE=TOTAL SAMPLE **D/S (LESS THAN 15 YRS 16 YRS OR MORE)

TOTAL LESS THAN 15 YEARS -----------------------1 - 3 YEARS

4 - 6 YEARS 7 - 10 YEARS 11 - 15 YEARS 16 YEARS OR MORE REFUSED

BASE=TOTAL SAMPLE **D/S (LESS THAN 15 YRS 16 YRS OR MORE)

TOTAL LESS THAN 15 YEARS -----------------------1 - 3 YEARS

4 - 6 YEARS 7 - 10 YEARS 11 - 15 YEARS 16 YEARS OR MORE REFUSED

5 3%

2 1%

5 22%

299 75%

144 72%

135 79%

279 75%

15 72%

1 -

9 5%

1 1%

33 9%

1 -

155 39%

36 10%

24 12%

196 49%

-92 -60%

15 9%

34 9%

6 28%

1 5%

54 27%

9 5%

21 11%

19 10%

142 73%

21 5%

-93 -51%

4 2%

10 48%

5 3%

1 5%

14 9%

10 7%

123 80%

1 -

92 23%

298 74%

202 50%

181 45%

-1 -4%

31 20%

5 25%

4 17%

11 52%

44 24%

59 15%

-38 -65%

-61 -41%

3 2%

10 17%

7 4%

3 4%

19 11%

2 4%

14 8%

137 76%

150 37%

44 29% 7 5%

5 9%

21 14%

49 82%

105 70%

13 9%

1 1%

1 -

236 59%

-88 -37% 74 31% 6 3%

15 6%

22 6%

-14 -62% 4 19% -

129 32%

-87 -67% 20 16% -

2 1%

181 45%

36 9%

-61 -34%

-17 -48%

6 3%

1 3%

60 33% 12 7%

9 26%

4 19%

7 5%

26 15%

6 17%

162 69%

18 81%

108 83%

121 67%

26 74%

12 9% 1 1%

16 9% -

123 31%

49 12%

233 58%

-33 -54%

-95 -46%

-39 -79%

-140 -60%

3 2%

1 2%

3 1%

28 23%

14 23%

3 2%

56 27%

3 4%

5 10%

11 5%

-54 -36%

3 1%

1 30%

3 2%

21 14%

2 46%

101 68%

26 12%

1 2%

19 8%

142 83%

95 77%

47 76%

151 73%

44 89%

186 80%

1 1%

17 8%

1 1%

4 8%

1 -

1 1%

151 38%

119 30%

95 24%

101 25%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----274 68%

170 42%

169 42%

171 43%

147 37%

146 36%

147 37%

47 12%

72 18%

74 18%

73 18%

196 49%

-83 -55%

-76 -64%

-48 -50%

-34 -34%

-118 -43%

-92 -54%

-93 -55%

-86 -50%

-42 -59%

-82 -55%

-78 -54%

-79 -54%

-37 -78%

-22 -30%

-24 -32%

-30 -41%

-79 -41%

-115 -58%

7 2%

2 1%

1 1%

2 2%

6 2%

5 3%

6 4%

3 2%

1 1%

3 2%

1 1%

1 2%

4 2%

3 2%

17 4%

2 2%

34 9%

7 8%

42 10% 299 75%

1 -

14 5%

4 2%

34 22%

5 4%

5 5%

36 12%

22 11%

17 11%

78 84%

213 71%

161 80%

117 77%

26 9%

1 -

12 6%

1 -

10 6%

1 -

21 18%

3 2%

11 9%

7 6%

97 82%

24 25%

33 33%

77 28%

39 23%

38 22%

42 25%

15 21%

32 22%

8R E S9E A R3C H 6 M 2% E2E T 3% I3N G 13 S T R 5% E9E T 4% 5% 5% 5% 4% 14 15%

13 13%

8 8%

14 14%

1 -

72 75%

68 67%

32 12%

17 10%

16 9%

19 11%

5 7%

196 72%

131 77%

128 75%

57 79%

26 10%

1 -

8 5%

9 5%

1 -

11 6% 1 -

5 7% -

34 23%

4 3%

11 7%

14 9%

15 10%

114 77%

112 77%

12 8% 1 1%

34 23%

7 5%

13 9%

1 -

196 49%

-120 -60% 41 20%

12 8%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

-129 -43% 84 28%

1 -

-63 -69% 15 16%

11 7%

PAGE 235

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

47 32%

1 24%

20 9%

-200 -50% 100 25%

2 54%

5 2%

5 8% 6 9%

148 37%

11 9% 11 9%

3 1%

46 20%

7 4%

16 10%

208 52%

-67 -54%

5 3%

2 6%

62 15%

-114 -67% 28 16%

30 13%

23 10%

172 43%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 234

-9 -44%

21 10%

Table 47-4 QUESTION 36: How many years has your company been in operation? BANNER 4

21 5%

42 10%

Table 47-3 QUESTION 36: How many years has your company been in operation? BANNER 3

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

5 11%

25 35%

25 34%

2 3%

21 29%

2 3%

58 30%

3 4%

41 21%

6 3%

9 5%

13 9%

3 6%

10 14%

11 15%

9 13%

30 15%

12 6%

113 77%

42 89%

47 65%

49 66%

51 71%

137 70%

155 79%

1 -

2 5%

12 16%

8 11%

18 9%

1 -

16 8%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 236

87 22%

285 71%

103 26%

43 11%

144 36%

-200 -50%

-57 -66%

-162 -57%

-34 -33%

-19 -45%

-73 -50%

7 2%

1 1%

4 1%

3 3%

2 1%

100 25%

17 4%

42 10% 34 9%

299 75% 1 -

15 17%

6 7%

7 8%

1 1%

72 83% -

61 21%

11 4%

34 33%

4 4%

23 8%

17 17%

223 78%

69 67%

23 8% 1 -

10 9% -

12 28%

2 4%

4 9%

6 14%

31 72%

36 25%

2 2%

14 10%

17 12%

108 75%

1 -

83 21%

-43 -52%

42 11%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

-130 -68%

-65 -54%

-40 -35%

-32 -42%

-16 -35%

1 2 1 2 4 1 5 1% 5% 16% 2% 4% 1% 2% M E4E T I2N G S-T R E1E T 7R E S7E A R-C H 7 5% 5% 1% 7% 5% 3%

2 1%

3 2%

2 2%

1 -

4 3%

3 3%

1 1%

1 2%

12 14% 3 4%

63 76%

1 1%

2 4%

1 3%

35 83%

1 16%

5 67%

14 12%

13 11%

92 75%

205

6 7%

2 2%

73 79%

1 1%

36 24%

14 9%

14 10%

112 75%

1 -

-1 -10%

214 54%

-57 -53%

19 21%

-76 -51%

10 2%

-58 -46%

31 25%

-54 -58%

149 37%

-71 -55%

2 33%

-61 -50%

93 23%

-83 -55%

7 17%

-2 -35%

122 31%

-104 -48%

20 24%

-28 -67%

7 2%

4 45%

55 26%

3 33%

25 11%

5 55%

159 74%

1 12%

19 9%

34 22%

5 3%

11 7%

17 11%

117 78%

29 22%

2 1%

33 26% 4 3%

25 23% 1 1%

10 8%

17 13%

13 12%

100 78%

91 73%

82 77%

15 11% -

10 8%

1 1%

9 8%

30 16% 6 3%

12 6%

160 84%

1 -

27 23% 5 4%

8 7%

37 32% 5 5%

17 15%

22 29% 3 4%

10 14%

15 33% 1 2%

7 15%

10 8%

11 10%

8 11%

6 13%

1 -

92 77%

77 67%

55 71%

31 67%

Table 47-5 QUESTION 36: How many years has your company been in operation? BANNER 5

BASE=TOTAL SAMPLE **D/S (LESS THAN 15 YRS 16 YRS OR MORE)

TOTAL LESS THAN 15 YEARS -----------------------1 - 3 YEARS

4 - 6 YEARS 7 - 10 YEARS 11 - 15 YEARS 16 YEARS OR MORE REFUSED

BASE=TOTAL SAMPLE 18 - 34 35 - 44 45 - 54 55 - 64 65 AND ABOVE REFUSED

400 100%

-200 -50% 100 25%

7 2%

17 4%

212 53%

145 36%

-94 -45%

-83 -57%

-56 -52%

4 2%

5 4%

3 3%

59 28% 10 5%

31 22% 5 3%

42 10%

22 10%

12 8%

299 75%

153 72%

114 78%

34 9% 1 -

108 27%

23 11% 1 -

9 6%

26 24% 4 4%

BASE=TOTAL SAMPLE 18 - 34 35 - 44 45 - 54 55 - 64 65 AND ABOVE REFUSED

92 23%

79 20%

-54 -59%

-45 -56%

3 4%

19 21%

17 22%

4 5%

73 79%

62 78%

7 10%

82 76%

1 -

15 21%

2 3%

10 13%

4 5%

-41 -58%

3 4%

11 12%

9 9%

71 18%

2 2%

9 9%

319 80%

81 20%

62 16%

82 20%

154 39%

-152 -48%

-48 -60%

-7 -11%

-38 -46%

-96 -62%

3 1%

4 5%

2 3%

3 2%

83 26%

16 5%

16 20%

1 1%

28 44%

4 7%

22 27%

5 6%

29 19%

9 10%

13 21%

9 11%

11 7%

56 79%

235 74%

65 80%

35 56%

60 73%

125 81%

1 -

6 7% -

10 7%

10 12%

9 14%

16 18%

2 2%

32 10%

2 2%

-55 -64%

5 3%

5 7%

32 10%

87 22%

320 80%

-141 -44% 90 28%

7 2%

15 5%

5 6%

35 11%

71 82%

230 72%

33 10% -

43 11%

54 10%

100 19%

51 10%

100 19%

-39 -91%

-25 -45%

-65 -65%

-29 -57%

-57 -57%

1 2%

3 3%

2 4%

2 2%

2 4%

15 27%

2 4%

3 3%

6 11%

6 6%

5 10%

41 96%

39 73%

17 17%

4 4%

83 83% -

10 21% -

22 22% 6 6%

218 42%

-100 -46% 59 27% 2 1%

11 5%

2 4%

6 6%

28 13%

40 77%

78 78%

159 73%

6 12% 1 2%

8 8% -

18 8% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 238

140 35%

39 10%

17 12%

23 6%

82 20%

154 39%

87 22%

15 4%

7 5%

31 22%

47 33%

32 23%

6 5%

87 22%

48 12%

6 7%

4 5%

22 25%

37 43%

16 18%

2 3%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

2 4%

5 11%

10 12%

23 10%

16 9%

17 10%

11 10%

6 6%

19 9%

9 8%

11 14%

13 14%

9 10%

6 11%

1 2%

17 17%

22 7%

11 7%

21 43%

19 44%

19 42%

29 29%

3 7%

9 20%

11 23%

2 4%

4 10% 4 9%

10 24%

1 2%

5 6%

15 19%

31 37%

18 22%

4 5%

11 5%

12 7%

8 5%

10 9%

4 4%

13 6%

8 6%

3 3%

53 29 25 28 26 35 29 18 23% 17% 15% 26% 26% 18% 24% 22% M E84 E T I70 N G S68 T R E39 E T 38 R E S83 E A R43 C H 29 37% 41% 41% 37% 38% 41% 36% 36% 48 21%

9 4%

39 23%

7 4%

43 26%

5 3%

19 18%

1 1%

21 20%

6 6%

46 23%

6 3%

26 22%

4 3%

15 18%

5 6%

4 5%

19 21%

32 35%

19 21%

4 4%

7 7%

17 18%

36 37%

26 26%

2 2%

3 5%

12 20%

25 41%

11 18%

3 5%

3 6%

10 21%

8 17%

6 12%

11 11%

22 22%

16 16%

5 5%

13 4%

60 20%

125 42%

71 24%

9 3%

6 4%

29 18%

107 27%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

39 10%

24 12%

12 7%

36 10%

3 12%

23 6%

82 20%

154 39%

87 22% 15 4%

15 8%

45 22%

74 37%

37 18% 6 3%

7 4%

32 19%

74 43%

39 23% 7 4%

22 6%

76 21%

148 40%

76 20% 14 4%

3 14%

5 23%

9 42% 2 9%

33 8%

77 19%

6 18%

13 17%

1 1%

7 21%

18 17%

4 13%

7 6%

7 8%

25 32%

68 43%

41 38%

8 24%

28 36%

1 1%

9 9%

3 9%

1 1%

41 26%

30 28%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 48-2 QUESTION 37: Age. BANNER 2

PAGE 237

Table 48-1 QUESTION 37: Age. BANNER 1

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

5 14%

4 5%

PAGE 239

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

3 1%

148 37%

19 9%

16 10%

3 14%

17 9%

3 4%

17 11%

22 9%

1 4%

13 10%

13 7%

4 11%

19 11%

12 10%

9 15%

17 8%

3 7%

21 9%

2 54%

16 11%

70 38%

14 41%

66 39%

47 38%

20 32%

15 7%

38 20%

79 41%

37 19%

7 4%

14 8%

33 21%

6 29%

43 24%

13 22%

34 22%

6 29%

36 20%

17 29%

9 6%

21 9%

26 17%

48 20%

7 31%

31 21%

45 19%

7 30%

3 2%

26 20%

68 23 58R E 95 47 M62 E E 24% T 5 I N G38% S T R38% E E T39% S E A32% R7C H36% 40% 40% 3 2%

1 4%

3 2%

4 7%

206

8 6%

5 2%

1 4%

31 24% 9 7%

15 8%

40 22%

37 20% 7 4%

1 3%

6 16%

9 24% 2 5%

7 4%

35 20%

38 22%

6 3%

8 6%

30 24%

19 16%

8 6%

1 2%

15 25%

1 2%

15 7%

37 18%

2 4%

10 20%

15 6%

52 23%

8 5%

27 18%

84 41%

20 40%

95 41%

1 18%

57 38%

6 3%

3 6%

7 3%

9 6%

49 24%

11 23%

42 18%

1 28%

33 22%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 48-3 QUESTION 37: Age. BANNER 3

BASE=TOTAL SAMPLE 18 - 34 35 - 44 45 - 54 55 - 64 65 AND ABOVE REFUSED

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

39 10%

11 12%

28 9%

18 9%

18 12%

11 9%

12 13%

9 8%

23 6%

6 6%

82 20%

26 28%

87 22%

20 21%

154 39% 15 4%

18 6%

10 5%

BASE=TOTAL SAMPLE 18 - 34 35 - 44 45 - 54 55 - 64 65 AND ABOVE REFUSED

4 5%

6 6%

47 23%

36 24%

35 30%

28 30%

13 13%

63 21%

43 21%

30 20%

24 20%

19 20%

24 24%

123 41%

3 3%

12 4%

79 39% 6 3%

52 34% 6 4%

39 33% 3 3%

30 31% 2 2%

274 68%

170 42%

169 42%

171 43%

25 9%

16 9%

15 9%

15 6%

14 8%

13 8%

71 18%

147 37%

146 36%

147 37%

17 10%

7 10%

16 11%

64 37%

28 39%

61 42%

59 41%

13 7%

59 22%

32 19%

35 21%

31 18%

56 20%

40 23%

36 21%

40 24%

43 43%

109 40%

6 6%

10 4%

61 36%

64 38%

7 4%

6 4%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

6 4%

6 8%

17 23%

13 18%

1 1%

6 4%

36 24%

24 16%

5 3%

7 5%

34 23%

24 17%

5 4%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----47 12%

72 18%

74 18%

73 18%

196 49%

15 10%

5 11%

6 8%

7 9%

5 7%

22 11%

16 8%

59 40%

17 36%

29 40%

72 37%

7 5%

37 25%

26 17%

4 3%

3 5%

6 13%

12 26% 4 8%

3 4%

12 17%

29 41%

17 24% 4 5%

3 4%

10 13%

31 41%

20 27% 4 5%

4 5%

12 17%

18 24% 5 7%

14 7%

9 5%

44 22%

34 17%

36 18%

49 25%

8 4%

82 42% 6 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 241

23 6%

39 10%

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

7 8%

28 10%

11 11%

5 11%

17 12%

10 12%

39 45%

114 40%

38 37%

13 31%

53 37%

29 35%

8 9%

82 20%

17 19%

87 22%

15 17%

154 39% 15 4%

2 2%

16 6%

63 22%

54 19% 10 4%

7 7%

16 16%

26 25% 4 4%

2 5%

9 21%

12 27% 2 4%

10 7%

32 22%

28 19% 4 3%

4 5%

42 11%

7 2%

122 31%

3 7%

1 14%

19 16%

15 35%

5 70%

54 44%

3 7%

20 24%

12 28%

18 22%

7 18%

1 16% -

6 5%

93 23%

149 37%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

46 12%

5 6%

14 9%

1 12%

24 11%

13 9%

9 7%

10 8%

8 8%

20 10%

8 6%

15 13%

8 11%

4 8%

52 35%

2 21%

82 38%

39 37%

79 41%

53 44%

34 30%

32 42%

5 5%

11 7%

19 16%

21 23%

35 23%

18 15%

20 22%

35 24%

37 39%

3 29% 2 18%

13 6%

12 8%

6 5%

12 10%

7 6%

49 23%

39 26%

31 24%

29 24%

29 27%

41 19%

22 15%

29 23%

17 13%

17 16%

3 2 6 4 3 2 7 M 3% E E T 4% I N G S-T R 5% E E T 5%R E 2% S E A21% R C H 3%

61 40% 4 3%

48 37% 4 3%

51 41% 6 5%

6 6%

9 5%

3 2%

40 21%

35 29%

38 20%

19 16%

5 3%

3 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 48-5 QUESTION 37: Age. BANNER 5

6 5%

54 18%

27 29%

Table 48-4 QUESTION 37: Age. BANNER 4

10 6%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 240

400 100%

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

39 10%

21 10%

16 11%

4 4%

10 11%

9 11%

6 9%

34 11%

5 6%

39 62%

28 9%

3 6%

5 5%

6 13%

14 14%

22 10%

35 35%

21 40%

33 33%

1 2%

2 2%

82 20%

154 39%

87 22% 15 4%

11 5%

52 25%

75 36%

42 20% 10 5%

10 7%

33 22%

52 36%

33 23% 2 1%

9 9%

28 26%

36 34%

22 21% 8 8%

7 8%

21 23%

5 7%

17 21%

32 35%

32 40%

1 1%

4 5%

20 22%

13 16%

4 5%

13 19%

27 38%

19 26%

17 5%

64 20%

116 37%

73 23%

7 8%

17 22%

38 46%

14 17%

23 38%

82 100%

3 14 1 4% 4% 1% M E E T I N G S T R E E T

207

M E E T I N G S T R E E T

154 100% -

87 100%

21 6%

64 20%

125 39%

72 23%

10 3% R E S E A R C H

R E S E A R C H

3 6%

13 30%

17 40%

4 10% 3 7%

23 20% 24 21% 4 4%

3 4%

12 16%

18 24% 3 3%

2 4%

9 19%

14 30%

16 35% 2 4%

PAGE 242

13 12%

2 4%

9 16%

25 47%

13 24% 1 2%

5 5%

25 25%

22 22% 8 8%

4 8%

5 9%

14 28%

10 10%

32 32% 9 9%

11 5%

52 24%

79 36%

46 21% 8 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 49-1 QUESTION 38: Gender. BANNER 1

BASE=TOTAL SAMPLE **D/S (MALE - FEMALE) MALE FEMALE

140 35%

319 80%

115 82%

238 59% 81 20%

89 63%

26 18%

87 22%

58 66%

72 83%

15 17%

48 12%

24 50%

36 75%

12 25%

BASE=TOTAL SAMPLE **D/S (MALE - FEMALE) MALE FEMALE

400 100% 238 59%

319 80% 81 20%

201 50%

112 56%

156 78% 45 22%

171 43%

105 61%

138 81% 33 19%

372 93%

217 58%

295 79% 78 21%

BASE=TOTAL SAMPLE **D/S (MALE - FEMALE) MALE FEMALE

32 76%

10 24%

82 20%

46 56%

64 78%

18 22%

228 57%

172 43%

187 82%

132 77%

146 64% 41 18%

92 53%

40 23%

166 42%

108 27%

101 25%

133 80%

91 84%

78 77%

100 60%

33 20%

74 69%

55 55%

17 16%

23 23%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

162 80%

96 82%

60 76%

78 85%

74 76%

51 85%

35 75%

83 84%

235 78%

129 82%

91 85%

121 60% 41 20%

75 64%

41 52%

21 18%

19 24%

64 71%

13 15%

51 53%

23 24%

42 69%

9 15%

23 50%

12 25%

67 67%

16 16%

170 57%

65 22%

102 65%

27 18%

21 5%

14 68%

17 84%

3 16%

14 41%

40 52%

16 15%

10 29%

18 24%

196 49%

122 62%

159 81% 37 19%

155 39%

94 61%

124 80% 30 20%

21 5%

14 64%

17 82%

4 18%

181 45%

104 57%

143 79% 39 21%

59 15%

36 61%

48 81%

12 19%

150 37%

92 61%

121 81% 29 19%

236 59%

144 61%

190 81% 46 19%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

274 68%

170 42%

169 42%

171 43%

319 80%

74 80%

236 79%

171 85%

122 81%

98 83%

74 78%

70 69%

221 81%

140 82%

134 79%

139 81%

81 20%

19 20%

61 21%

141 70%

30 15%

94 62%

29 19%

22 6%

18 83%

20 92% 2 8%

129 32%

73 56%

101 78% 28 22%

181 45%

108 60%

145 80% 36 20%

36 9%

172 43%

23 64%

100 58%

6 18%

36 21%

29 82%

136 79%

123 31%

78 63%

101 82% 23 18%

62 15%

48 78%

55 89% 7 11%

208 52%

111 54%

160 77% 48 23%

49 12%

233 58%

77 65%

21 17%

53 55%

21 22%

39 38%

31 31%

167 61%

53 19%

110 65%

30 18%

99 59%

35 21%

147 37%

146 36%

147 37%

55 78%

110 75%

115 79%

120 81%

39 55%

32 19%

16 22%

73 49%

37 25%

83 57%

31 21%

1 39%

83 56%

10 20%

45 19%

1 30%

33 22%

39 80%

188 81%

2 70%

319 80%

81 20%

87 22%

285 71%

103 26%

67 77%

231 81%

77 75%

47 54%

20 23%

177 62%

54 19%

51 50%

26 25%

43 11%

144 36%

42 98%

109 75%

41 96%

1 2%

73 50%

36 25%

83 21%

50 61%

67 80%

16 20%

42 11%

19 45%

31 72%

12 28%

7 2%

122 31%

6 87%

93 76%

5 74%

1 13%

63 52%

30 24%

93 23%

149 37%

75 81%

120 81%

58 63%

17 19%

M E E T I N G S T R E E T

208

92 61%

29 19%

10 2%

47 12%

72 18%

74 18%

73 18%

196 49%

155 79%

158 80%

93 63%

24 50%

48 66%

47 64%

29 40%

114 58%

27 19%

12 25%

12 17%

13 18%

22 30%

41 21%

35 75%

60 83%

61 82%

51 70%

119 61% 39 20%

PAGE 246

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

171 80%

120 79%

104 81%

98 78%

84 79%

152 80%

95 79%

6 64%

128 60%

2 18%

43 20%

8 82%

R E S E A R C H

89 59%

31 21%

116 78%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER SHORTAGE GREATEST EMPLOYEE NEED WORKER SHORTAGE FUTURE CHALLENGES ================= ============================== ======================= =============================== ============================== ATTUNFAV TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK RACT BIZ VERY TOTAL NOT AUTOM CURR OUTINCR TRAIN -SIVE TECH WORK- HLTH RISING CLIM LOWER M E EPROC T I N G S T R E E NO T RTECH/ E S E A R CPROD H TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL FORCE COSTS COSTS -ATE SALES ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----- ----- ----- ------ ----- ----238 59%

148 37%

143 62%

PAGE 245

71 18%

107 63%

3 1%

29 60%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

400 100%

59 76%

92 23%

175 59%

23 71%

400 100%

55 60%

77 19%

PAGE 244

33 8%

75 70%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 49-4 QUESTION 38: Gender. BANNER 4

22 51%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- -----

Table 49-3 QUESTION 38: Gender. BANNER 3

43 11%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 49-2 QUESTION 38: Gender. BANNER 2

PAGE 243

80 62%

24 19%

71 57%

27 22%

62 58%

22 21%

113 59%

39 20%

69 57%

26 21%

114 28%

77 19%

46 12%

63 56%

55 72%

21 45%

25 22%

11 14%

13 28%

88 78%

66 86%

33 72%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 49-5 QUESTION 38: Gender. BANNER 5

BASE=TOTAL SAMPLE **D/S (MALE - FEMALE) MALE FEMALE

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

169 80%

110 75%

90 84%

72 78%

55 69%

57 80%

238 59%

81 20%

126 60%

43 20%

74 51%

36 25%

73 68%

18 16%

BASE=TOTAL SAMPLE OWNER PRESIDENT/CEO/CEO/CFO/COO MANAGER/GENERAL MANAGER MANAGEMENT TEAM MEMBER GENERAL OFFICE STAFF/SALES/ ADMINISTRATIVE

VICE PRESIDENT OTHER

DON'T KNOW/REFUSED

52 56%

30 38%

20 22%

25 31%

43 61%

14 20%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

319 100%

51 82%

64 79%

116 76%

73 84%

258 81%

31 71%

38 70%

76 76%

41 80%

83 83%

180 83%

319 -81 100% -100% -

81 100%

40 64%

11 18%

47 57%

17 21%

OWNER PRESIDENT/CEO/CEO/CFO/COO MANAGER/GENERAL MANAGER MANAGEMENT TEAM MEMBER

12 29%

21 40%

16 30%

53 53%

24 24%

30 59%

10 20%

66 66%

17 17%

142 65%

38 17%

PAGE 248

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

107 27%

41 29%

26 30%

11 23%

9 21%

20 24%

67 29%

40 23%

41 25%

24 22%

39 38%

48 24%

30 25%

28 35%

24 27%

24 25%

17 29%

13 28%

28 28%

78 26%

46 33%

36 42%

21 44%

77 19%

30 21%

14 16%

9 19%

12 3%

5 4%

1 3%

2 2%

1 2%

33 8%

3 1%

10 2% 1 -

11 8%

2 1%

5 4%

1 1%

7 8%

2 2% -

16 38%

82 36%

74 43%

96 58%

10 23%

15 18%

44 19%

34 19%

17 10%

3 7%

3 4%

5 2%

7 4%

2 1%

2 2%

7 3%

3 2%

4 9%

5 11%

37 45%

5 6% -

18 8%

3 1% 1 -

14 8% -

44 40%

12 12%

25 23%

23 23%

21 11%

9 8%

4 2%

6 3%

11 10%

13 12%

1 1%

2 2%

4 2% -

2 2%

3 3%

3 2%

114 56%

1 1%

35 30%

7 9%

31 27%

19 19%

11 18%

6 7%

1 1%

6 6%

1 2%

4 6%

2 2%

9 11%

2 1%

2 2%

2 1%

25 41%

15 17%

15 12%

4 2%

37 38%

25 31%

10 5%

3 3%

40 44%

1 1%

7 8% -

1 1%

9 9%

16 34%

2 4%

1 1%

11 4%

3 6%

2 2%

1 2%

33 8%

107 100%

61 20%

8 8%

107 27%

157 100%

17 17%

5 10%

157 39%

112 38%

8 18%

5 9%

2 2%

44 44%

25 8%

3 1%

8 3%

1 -

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

107 27%

48 24%

52 30%

100 27%

10 6%

32 9%

157 39% 77 19% 33 8%

OTHER

10 2%

3 1% 1 -

72 36%

72 42%

47 23%

24 14%

8 4%

3 1%

22 11% 1 -

1 -

144 39%

21 5%

10 46%

6 29%

196 49%

155 39%

49 25%

43 28%

80 41%

63 41%

21 5%

181 45%

59 15%

150 37%

236 59%

5 26%

40 22%

20 34%

43 28%

70 30%

8 38%

73 40%

26 44%

53 35%

22 6%

129 32%

181 45%

6 26%

28 22%

54 30%

82 35%

11 49%

60 47%

30 20%

3 14%

32 18%

10 17%

34 23%

41 18%

5 21%

26 20%

4 2%

12 3%

1 4%

8 4%

2 2%

1 4%

7 4%

5 3%

7 3%

4 3%

7 4%

10 3%

3 2%

5 2%

1 -

PAGE 249

38 19%

3 1%

3 16%

3 2%

77 100%

33 100%

77 19%

R E S E A R C H

71 19%

1 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

12 3%

DON'T KNOW/REFUSED

62 19%

18 42%

140 35%

157 39%

GENERAL OFFICE STAFF/SALES/ ADMINISTRATIVE

VICE PRESIDENT

14 16%

196 61%

400 100%

Table 50-2 QUESTION C: What is your job title?

BASE=TOTAL SAMPLE

38 24%

59 68%

M E E T I N G S T R E E T

BANNER 2

79 51%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 50-1 QUESTION C: What is your job title? BANNER 1

PAGE 247

17 9% -

3 1% 1 -

11 2 20 3 11 29 1 3 M7% E E T9% I N G11% S T R 5% E E T 7%R E12% S E A 4% R C H 3% 2 1%

3 2% -

1 5%

1 4% -

2 1%

6 3%

1 1%

209

M E E T I N G S T R E E T

1 1% -

1 -

R E S E A R C H

3 2%

4 3% -

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

12 34%

40 23%

38 31%

17 28%

49 24%

9 19%

70 30%

2 4%

22 9%

65 36%

16 45%

30 16%

5 13%

38 22%

23 19%

11 17%

5 3%

2 5%

5 3%

3 2%

1 2%

20 11% 1 -

5 2%

1 1%

1 3% -

70 41%

12 7%

3 2%

4 2% -

46 38%

8 7%

27 43%

83 40%

42 20%

7 14%

9 4%

2 4%

5 8%

20 10%

1 1%

1 2%

1 1%

4 3%

28 56%

3 2% -

1 1%

1 2% -

233 58%

78 33%

3 1%

148 37%

1 41%

68 46%

28 19%

7 3%

1 30%

4 2%

5 2%

5 3%

47 20%

3 1% 1 -

1 28% -

33 22% 10 7% 1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 50-3 QUESTION C: What is your job title? BANNER 3

BASE=TOTAL SAMPLE OWNER PRESIDENT/CEO/CEO/CFO/COO MANAGER/GENERAL MANAGER MANAGEMENT TEAM MEMBER

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

107 27%

15 17%

89 30%

64 32%

39 26%

34 29%

28 29%

28 27%

33 8%

12 12%

21 7%

17 9%

14 9%

7 6%

7 8%

6 6%

157 39% 77 19%

GENERAL OFFICE STAFF/SALES/ ADMINISTRATIVE

12 3%

OTHER

10 2%

VICE PRESIDENT

DON'T KNOW/REFUSED

3 1%

1 -

34 37% 25 27%

120 40% 53 18%

69 34% 39 19%

BASE=TOTAL SAMPLE OWNER PRESIDENT/CEO/CEO/CFO/COO MANAGER/GENERAL MANAGER

GENERAL OFFICE STAFF/SALES/ ADMINISTRATIVE VICE PRESIDENT

OTHER DON'T KNOW/REFUSED

9 6%

31 18%

19 27%

36 25%

43 29%

49 33%

12 7%

8 11%

14 9%

19 13%

17 12%

1 -

1 1%

2 1%

28 16%

6 3%

7 4%

3 3%

5 2%

7 3%

2 1%

3 2%

2 2%

6 2%

3 1%

3 2%

4 3%

1 1%

3 1%

2 1%

1 -

1 1%

3 3%

1 1%

2 1%

1 1%

15 21% 24 33%

47 32% 39 27%

4 6%

6 4%

1 1%

3 2%

1 1%

40 28% 34 24% 5 3%

4 3%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

39 26% 32 22% 5 3%

3 2%

47 12%

72 18%

74 18%

73 18%

196 49%

8 18%

20 28%

15 21%

19 26%

54 28%

50 26%

17 35%

31 44%

11 22%

37 50%

10 13%

4 9%

11 14%

3 5%

4 8%

2 3%

1 1%

3 5%

3 4%

49 25%

4 5%

20 10%

1 1%

1 -

1 1%

2 2%

5 6%

60 30%

15 20%

4 6%

2 3%

1 2%

32 44%

27 14%

12 6%

8 4%

2 3%

96 49%

5 2%

3 1%

4 2%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

PAGE 251

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

42 11%

107 27%

28 32%

78 27%

25 24%

12 28%

39 27%

15 18%

12 30%

157 39%

34 39%

33 8%

3 1% 1 -

106 37% 56 20%

19 18%

8 3%

5 4%

6 2%

4 3%

5 6%

28 10%

2 2%

3 1%

45 44%

1 -

19 44%

43 30%

9 6%

4 10%

1 1%

1 2%

36 25%

5 12%

5 5%

2 4%

12 8%

3 2%

2 1%

43 52%

12 15%

7 2%

122 31%

93 23%

149 37%

2 30%

29 23%

33 35%

33 22%

17 39%

4 57%

6 15%

44 36% 30 24%

26 28% 17 18%

10 2%

214 54%

151 38%

128 32%

125 31%

106 27%

191 48%

120 30%

4 47%

53 25%

46 31%

33 25%

46 37%

31 29%

49 26%

27 22%

72 48%

3 33%

25 17%

1 9%

79 37% 49 23%

7 7 12 7 11 1 19 8% 16% 10% 8% 7% 11% 9% M E E T I N G S T R E E T R E S E A R C H 3 1 4 4 4 7 3% 13% 3% 5% 3% 3% -

3 3%

1 1%

1 -

3 2% -

1 1%

3 4%

1 1%

2 1%

3 2% -

1 -

6 3% -

44 29%

46 36%

38 25%

32 25%

4 3%

2 2%

14 9%

3 2%

1 1%

27 21% 30 24%

23 21% 32 30%

66 35%

8 4%

2 2%

4 4%

3 4%

2 1%

1 1%

2 1%

5 2% 1 -

9 8%

2 1%

2 1% -

212 53%

145 36%

108 27%

107 27%

55 26%

27 18%

37 34%

157 39% 77 19% 33 8% 12 3%

3 1%

10 2% 1 -

83 39% 49 23% 15 7% 2 1%

2 1%

6 3%

58 40% 33 23% 15 10% 6 4%

2 1%

5 3%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

78 24%

14 34%

15 28%

26 26%

11 21%

17 17%

63 29%

35 32%

35 39%

25 31%

24 34%

129 41%

27 34%

17 28%

29 35%

68 44%

41 48%

149 47%

18 17%

18 19%

15 19%

12 16%

59 18%

18 23%

20 31%

25 31%

28 18%

4 5%

53 16%

2 1%

2 2%

1 1%

2 2%

3 1%

1 -

10 10%

22 24% 9 9%

2 2%

3 4%

4 4%

2 2%

1 1%

2 3% -

22 27% 8 10% 5 7%

3 4%

1 1%

24 34%

91 28%

16 20%

8 13%

18 22%

41 26%

30 35%

6 23 10 13 4 8 5 24 9% 7% 12% 21% 5% 5% 5% 8% M E E T I N G S T R E E T R E S E A R C H 3 5 8 4 1 4 3 7 4% 1% 10% 6% 1% 3% 4% 2% 1 1%

1 1%

10 3%

1 1% -

210

3 3%

1 1%

3 2% -

3 3% -

5 2% -

2 4%

21 39%

37 37%

22 43%

36 36%

80 37%

17 39%

10 19%

23 23%

11 21%

24 24%

42 19%

3 6%

1 2%

3 3%

3 6%

6 6%

5 2%

1 2%

6 13%

1 2%

7 6%

33 42%

6 8%

2 2%

1 1%

5 4%

19 41%

7 15%

5 11%

1 2%

PAGE 252

14 31%

12 15%

3 3%

23 29%

21 18%

22 12%

1 1%

27 23%

24 20%

10 10%

5 4%

46 12%

38 20%

15 12%

6 6%

77 19%

49 43%

10 8%

5 4%

114 28%

55 45%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 50-5 QUESTION C: What is your job title?

MANAGEMENT TEAM MEMBER

16 9%

27 16%

34 20%

84 49%

5 3%

MANAGER/GENERAL MANAGER

21 8%

42 15%

147 37%

5 2%

10 2%

PRESIDENT/CEO/CEO/CFO/COO

43 25%

75 44%

146 36%

4 4%

OTHER

OWNER

45 26%

74 43%

147 37%

1 1%

2 2%

BASE=TOTAL SAMPLE

75 27%

122 45%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

3 3%

12 3%

BANNER 5

17 17%

171 43%

3 2%

GENERAL OFFICE STAFF/SALES/ ADMINISTRATIVE

DON'T KNOW/REFUSED

21 22%

44 43%

169 42%

3 2%

17 19%

VICE PRESIDENT

33 28%

36 38%

170 42%

6 2%

77 19%

MANAGEMENT TEAM MEMBER

38 25%

37 31%

274 68%

3 4%

Table 50-4 QUESTION C: What is your job title? BANNER 4

55 36%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 250

5 9%

1 1% -

5 5% 1 1%

5 5% -

5 9% -

11 11%

2 2%

3 3% -

17 8%

3 1%

7 3% 1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-1 QUESTION REG: Region. BANNER 1

BASE=TOTAL SAMPLE COLLAR ------

ANOKA

CARVER DAKOTA SCOTT WASHINGTON WRIGHT MINN-SP -------

HENNEPIN

RAMSEY NORTHEAST --------CARLTON

CASS CHISAGO COOK CROW WING ISANTI ITASCA Continued

PAGE 253

140 35%

30 8%

87 22% 5 1%

28 7%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

30 35%

30 13%

11 7%

13 12%

4 4%

17 8%

12 10%

28 12%

13 8%

8 7%

5 5%

15 7%

8 7%

5 6%

87 100%

5 6%

87 38% 5 2%

2 1%

29 26% 2 2%

16 16% 1 1%

48 24% 3 2%

27 23%

12 16%

14 15%

2 2%

1 1%

4 4%

9 9%

6 4%

3 3%

1 1%

6 3%

3 3%

2 3%

2 2%

3 3%

140 35%

140 100%

140 62%

56 33%

35 33%

42 41%

71 35%

32 27%

37 47%

33 36%

36 37%

36 9%

36 26%

1 -

104 26% 48 12% 1 -

104 74% -

5 1%

4 1%

1 -

6 2% 2 -

48 100%

1 3%

1 2%

5 10%

4 8%

1 2%

6 13% 2 4%

104 46%

36 16%

2 1%

38 23%

17 10%

48 28%

21 13%

1 1%

3 2%

36 36%

13 12%

12 11% -

5 3%

1 1%

4 2%

2 1%

1 1%

6 4%

2 1%

1 1%

5 3% -

5 5%

24 22%

1 1% -

M E E T I N G S T R E E T

211

3 2%

4 2%

2 2%

4 5%

1 1%

48 24%

23 19%

34 43%

24 27%

10 10%

21 10%

22 19%

5 6%

13 15%

1 1%

5 5% -

23 12% 1 1%

9 8% -

3 3%

1 1%

2 2%

2 1%

1 1%

1 -

5 2% 1 -

1 1%

R E S E A R C H

3 4% -

9 9% -

1 2%

1 1%

2 2%

14 9%

2 2%

10 4%

24 8%

11 5%

3 2%

7 7%

1 2%

157 39%

3 1%

299 75%

26 26%

10 11%

100 25%

9 19%

11 13%

46 12%

13 21%

12 12%

10 2%

60 15%

27 28%

5 6%

11 3%

3 4%

37 22%

97 24%

28 32%

91 23%

3 1%

79 20%

5 8%

11 34%

30 38%

103 34%

46 29%

41 38%

1 2%

3 3%

3 4%

37 38%

10 10%

1 1%

16 35%

2 3% -

11 23%

30 30%

5 11%

10 10%

5 11% -

1 3%

1 3% -

7 7%

1 1% -

2 1%

3 2%

74 25%

34 22%

38 13%

21 13%

1 -

1 1%

29 10% -

12 7%

1 1%

3 3%

29 27%

12 11%

11 10% -

5 2%

1 1%

4 1%

1 1%

2 2%

3 3% -

1 -

4 1%

2 1%

5 7%

20 33%

5 2%

1 3%

3 3%

4 4%

2 1%

14 18%

10 10%

5 3%

1 3%

1 1%

7 22%

9 6%

9 3%

18 29%

2 2%

77 19%

5 15%

2 2%

22 23%

1 1%

3 2%

33 8%

6 6%

2 5%

2 3%

19 6%

26 24%

2 2%

3 1%

36 23%

1 2%

9 9%

62 21%

4 7%

1 1%

13 14%

4 9%

107 27%

1 1%

2 2%

1 1%

1 1% -

1 4%

4 5%

2 3%

7 21%

23 30%

4 13%

9 12%

4 13% -

1 4%

6 8% -

1 2%

3 3%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-1 QUESTION REG: Region. BANNER 1

KANABEC MILLIE LACS MORRISON PINE ST. LOUIS SOUTH -----

BLUE EARTH

DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR MOWER OLMSTED RICE STEELE WABASHA WINONA Continued

PAGE 254

2 1% 1 -

1 -

43 11%

20 5%

5 1%

3 1% 1 -

2 -

2 5%

1 3%

6 2%

2 -

3 1%

4 1%

1 1%

7 7%

4 4%

18 9%

13 11%

10 13%

3 7%

3 2%

2 1%

1 1%

2 1%

1 1%

2 2%

3 3%

1 1%

2 1%

5 11% 1 2%

2 4%

7 15%

2 5%

1 1%

3 2%

1 1%

7 4%

1 1%

2 1%

1 1%

2 5%

1 1%

2 1%

4 10%

5 3%

6 3%

3 6%

20 12%

2 1%

4 2%

3 2%

6 5%

2 2% -

7 7%

3 3% -

2 2%

1 1%

6 3% -

1 -

3 2%

11 9%

3 2% -

4 5%

2 2% -

2 2%

4 5%

1 1%

15 15%

11 11%

1 1%

13 8%

43 25%

8 9%

2 3%

3 3%

1 2%

2 1%

2 2%

4 1%

1 1%

1 -

1 2%

1 1%

1 2%

2 2%

3 3%

1 2%

2 4%

2 1%

1 1%

1 -

1 1%

4 9%

4 2%

1 1%

2 2%

M E E T I N G S T R E E T

212

1 1%

2 1%

1 1%

2 2%

R E S E A R C H

1 1%

2 2% -

1 1%

1 2%

3 1%

3 3%

2 2%

2 1%

1 -

2 2%

4 1%

2 1%

3 1%

1 1%

3 3%

8 5%

2 1%

2 2%

3 2%

1 1%

2 1%

6 4%

1 1%

16 10%

3 8%

17 6%

1 1%

32 11%

1 1%

9 9%

6 15%

1 1%

3 3%

3 6%

2 3%

2 1%

3 6%

9 14%

2 1%

1 1%

9 9%

1 2%

1 1%

2 2%

1 1%

43 100%

2 1%

1 1%

20 42%

2 -

1 1%

4 1%

2 1%

1 3%

3 1%

7 2%

1 -

1 4%

1 1%

5 4%

2 5%

5 6%

9 8%

5 15%

10 12%

1 1%

2 2%

1 1%

1 -

3 3%

1 1%

2 1%

1 1%

2 1%

2 2% -

2 6% -

1 1%

2 3%

1 1%

2 3%

1 3%

6 2%

5 3%

1 3%

1 1%

2 1%

1 1%

2 1%

4 1%

1 1%

1 -

1 1%

1 3%

1 1% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-1 QUESTION REG: Region. BANNER 1

WEST-NW -------

BENTON

BROWN CHIPPEWA CLAY CLEARWATER COTTONWOOD DOUGLAS HUBBARD KANDIYOHI LAC QUI PARLE MCLEOD MAHNOMEN MARTIN MEEKER NICOLLET NOBLES NORMAN OTTER TAIL

4 1%

2 1%

1 -

6 1%

4 1% 1 -

PIPESTONE POLK POPE RED LAKE REDWOOD RENVILLE SHERBURNE SIBLEY STEARNS SWIFT TODD WILKIN

82 100%

4 5%

1 1%

7 9%

3 1%

4 5%

1 -

6 7%

1 1%

4 5%

2 3%

7 2%

3 3%

82 47%

40 24%

19 18%

19 19%

44 22%

23 20%

14 18%

23 25%

16 16%

18 29%

14 29%

17 17%

64 21%

37 23%

20 19%

5 16%

15 19%

4 2%

2 1%

2 2%

2 1%

2 2%

2 3%

1 1%

3 1%

2 1%

2 2%

1 -

1 1%

6 3%

4 2%

3 2%

1 1%

1 -

1 1%

6 2%

1 1%

6 7%

1 1%

6 3%

2 1%

1 1%

5 3%

1 1%

4 2%

1 1%

2 1%

1 1%

2 2%

1 1%

1 1% 2 2%

1 1%

2 2%

2 3%

1 1%

1 -

1 1%

2 2%

5 2%

1 1%

2 2%

2 3%

2 1%

1 1%

1 -

1 1%

4 2%

1 -

M E E T I N G S T R E E T

1 1%

1 -

1 1%

3 4%

2 1%

1 1%

2 1%

1 1%

3 3%

7 4%

1 1%

1 -

3 4%

2 1%

4 2%

1 1%

3 3%

3 1%

1 -

3 3%

1 -

3 1%

2 1%

1 1%

2 2%

1 1%

2 2%

1 1%

3 4%

2 3%

1 2%

1 1%

1 2%

2 4%

2 2%

3 1%

2 1%

1 -

2 1%

1 -

4 1%

2 2%

2 1%

1 2%

1 -

1 2%

1 1%

2 1%

3 2%

6 2%

3 2%

1 1%

3 1%

1 1%

1 2%

1 1%

1 3%

2 2%

1 -

3 1%

1 1 -

4 1%

1 1%

1 -

1 1% -

1 1%

2 1%

1 1%

2 1%

1 1% -

1 2%

1 1%

2 3%

1 1%

1 3%

1 4%

2 3%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-1 QUESTION REG: Region.

PENNINGTON

1 -

Continued

BANNER 1

PAGE 255

PAGE 256

2 -

1 -

2 2%

1 1%

2 1%

1 1%

2 2%

4 5%

2 2%

1 1%

8 5%

3 2%

2 2%

4 2%

3 2%

5 3%

3 3%

1 1%

7 4%

2 2%

1 -

9 2% 2 -

1 -

8 10%

9 11%

1 1%

3 2%

1 1%

1 1% -

1 1%

2 2%

2 1%

1 1%

1 -

1 1%

1 2%

1 1%

1 -

2 1%

8 2%

1 2%

2 3%

3 3%

3 6%

1 2%

1 1%

2 1%

3 1%

1 1%

9 5% 1 -

1 1% -

2 2%

1 1% -

1 1%

213

M E E T I N G S T R E E T

1 -

2 2%

1 1%

1 -

R E S E A R C H

2 2% -

1 1%

1 -

1 1%

1 1% -

1 -

2 1%

1 1%

1 1% -

2 3%

2 1%

1 1%

2 1%

1 1%

1 3%

2 1%

1 -

1 1%

2 2%

6 2%

5 10%

3 3%

6 2%

1 -

3 1% 1 -

1 1%

3 3%

1 1%

2 2%

1 1%

3 2%

2 1%

2 2%

1 1%

4 3%

1 1%

1 -

1 1%

1 -

1 1%

2 2%

1 3%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-2 QUESTION REG: Region. BANNER 2

BASE=TOTAL SAMPLE COLLAR ------

ANOKA CARVER DAKOTA SCOTT

WASHINGTON WRIGHT MINN-SP -------

HENNEPIN

RAMSEY NORTHEAST --------CARLTON CASS CHISAGO COOK CROW WING ISANTI ITASCA

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

30 8%

19 10%

11 6%

30 8%

28 7%

13 7%

87 22% 5 1%

3 1%

44 22% 3 2%

1 1%

39 22% 2 1%

13 8%

1 1%

83 22% 5 1%

MILLIE LACS MORRISON PINE ST. LOUIS SOUTH -----

BLUE EARTH

DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR MOWER OLMSTED RICE STEELE WABASHA WINONA

Continued

155 39%

18 9%

9 6%

49 25%

2 1%

1 5%

18 9%

2 1%

1 1%

21 5%

181 45%

59 15%

150 37%

236 59%

3 15%

17 9%

5 9%

7 5%

20 9%

24 16%

9 43%

2 1%

1 5%

5 3%

2 1%

41 22%

12 20%

33 22%

1 2%

3 2%

53 22% 3 1%

1 5%

14 8%

3 5%

10 7%

18 8%

3 2%

22 6%

129 32%

181 45%

10 8%

15 8%

5 20%

27 21%

2 2%

2 9%

1 4%

172 43%

123 31%

62 15%

208 52%

49 12%

233 58%

2 5%

13 8%

14 11%

1 2%

15 7%

2 4%

26 11%

10 6%

8 6%

4 7%

12 6%

2 4%

16 7%

1 1%

3 5%

7 3%

3 6%

2 1%

40 22%

7 19%

1 1%

6 5%

15 8%

2 2%

36 9%

1 1%

2 5%

37 21% 4 2% -

11 3%

4 2%

6 4%

10 3%

1 5%

5 3%

4 3%

2 10%

5 3%

2 4%

4 3%

5 2%

1 4%

5 4%

4 2%

2 6%

5 3%

140 35%

70 35%

60 35%

130 35%

7 35%

59 30%

63 41%

6 27%

65 36%

18 31%

54 36%

84 36%

7 34%

43 34%

60 33%

16 44%

60 35%

10 2%

3 2%

5 3%

8 2%

104 26%

52 26%

44 26%

96 26%

48 12%

23 12%

21 12%

44 12%

1 1%

36 9%

1 1 -

18 9%

5 1%

5 2%

4 1%

4 2%

2 -

1 -

6 2%

1 -

4 2%

16 9%

1 1%

34 9%

1 -

5 1%

4 1%

1 -

2 1%

1 -

6 2%

1 6%

5 3%

5 25%

43 22%

4 19%

23 12%

1 1%

2 11%

16 8%

2 1%

48 31%

15 10%

16 11%

1 1% -

4 2%

1 1%

1 4%

1 -

3 1%

1 7%

4 2%

4 17%

51 28%

3 13%

21 12%

2 11%

14 7%

1 1% -

4 2%

2 2%

3 2%

1 1%

5 3%

7 3%

10 17%

42 28%

63 27%

13 22%

13 8%

29 12%

1 1%

8 14%

12 8%

21 9%

1 1%

4 2%

1 1%

2 4%

2 1%

1 2%

1 1%

1 -

4 2%

1 2%

1 1%

M E E T I N G S T R E E T

1 -

3 1%

1 3%

2 1%

4 2%

4 19%

32 25%

46 26%

3 12%

15 11%

21 12%

1 1%

3 15%

12 9%

1 1%

4 3%

46 37%

22 13%

18 14%

5 9%

1 1%

16 9% 1 1%

10 8% -

1 1%

2 1%

1 3%

2 2%

1 -

1 1%

20 32%

3 8%

2 3%

14 23%

2 1%

36 30%

4 2%

1 1%

44 26%

6 18%

1 1%

4 3%

2 2%

10 16%

9 26%

14 8%

1 2%

28 22%

1 3%

5 3%

5 9% -

45 22% 3 1%

2 1%

5 3%

72 35%

1 2%

16 33%

1 -

1 1%

1 -

4 2%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----2 1%

2 1%

1 1%

1 -

1 6%

1 -

43 11%

26 13%

13 8%

39 10%

3 13%

28 14%

13 8%

3 1%

2 1%

1 4%

2 1%

1 1%

2 1%

2 -

2 1%

6 3%

1 -

5 1% 1 -

2 -

3 1% 1 -

3 1%

2 1%

2 -

2 1%

7 2% 2 -

1 1%

11 6%

2 1% -

1 1%

1 -

18 5%

5 1% 1 -

1 1%

7 4%

1 -

2 1%

1 1%

20 5%

2 9% -

1 1%

9 5%

6 4%

3 1% 1 -

35 24%

27 18%

1 1%

88 38%

23 10%

2 1%

1 1%

1 -

2 5%

4 2%

R E S E A R C H

1 1%

7 12%

1 1%

7 4%

2 1% -

1 1%

12 5%

1 1%

3 12%

5 4%

1 1%

9 5%

2 1%

1 1%

1 3%

11 6%

9 8%

2 1%

1 1%

3 4%

8 4%

1 1%

13 9%

2 1%

4 7%

7 3%

1 1%

2 5%

25 11%

1 30%

12 8%

2 1%

1 1%

2 1%

1 4%

2 1%

1 3%

2 2%

1 1%

1 -

2 1%

1 1%

1 -

1 1%

2 1%

1 1%

2 3%

3 2%

2 1%

1 1%

2 3%

4 2%

1 30%

1 1%

1 -

2 1%

21 10%

1 1%

2 1%

1 1%

11 18%

1 -

2 1%

10 8%

4 1%

3 2%

17 10%

2 1%

3 1%

1 1%

PAGE 258

6 17%

5 2%

2 1%

3 1%

3 2%

20 11%

1 1%

2 1%

4 1%

1 1%

9 7%

1 1%

3 1%

1 4%

3 2%

4 17%

3 2% -

2 1%

1 -

1 1%

27 12%

14 9%

18 12%

6 2%

49 33%

6 10%

2 1%

3 2%

18 10%

2 1%

7 5%

2 1%

3 2%

6 3%

3 2%

1 -

3 13%

3 1%

2 -

1 1%

3 2%

1 1%

3 2%

2 1%

4 2%

1 1%

1 4%

4 1%

6 2%

1 1%

2 -

7 2%

2 1%

1 1%

8 6%

1 -

3 2%

1 18%

20 9%

1 2%

1 28%

28 19%

5 2%

7 14%

1 1%

4 3%

25 12%

4 8%

2 1%

66 28%

21 10%

148 37%

2 46%

12 25%

4 2%

3 4%

1 2%

3 1%

52 23%

51 25%

9 19%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-2 QUESTION REG: Region.

KANABEC

3 16%

27 7%

Continued

BANNER 2

21 5%

PAGE 257

2 1%

1 1%

2 3% -

1 1%

5 2% 1 -

1 1%

2 1%

1 3%

1 1%

1 5%

1 -

2 1%

1 3%

1 -

1 1%

2 1%

1 1%

1 2%

214

2 1%

1 1%

2 1%

M E E T I N G S T R E E T

1 1%

3 1%

1 1%

6 4%

1 1%

2 1%

4 2%

1 4%

1 -

2 1%

1 4%

R E S E A R C H

2 1%

1 1%

2 1%

1 1%

2 1%

1 -

2 1%

3 2%

2 1%

1 1%

3 1%

1 2%

1 1%

3 2%

2 1%

1 1%

1 3% -

1 3%

4 3%

1 1% -

1 2%

1 -

5 2% -

1 -

2 1%

1 -

1 1%

4 2%

1 1%

3 4%

3 1%

1 2%

5 2%

1 1%

1 -

2 1%

1 1% -

1 2%

1 1% 1 1%

1 1%

1 2%

2 1%

3 1%

2 1% 3 1%

1 2%

2 1% 2 1%

1 1% -

1 1%

2 1%

1 -

2 1% 2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-2 QUESTION REG: Region. BANNER 2

WEST-NW -------

BENTON

BROWN CHIPPEWA CLAY CLEARWATER COTTONWOOD DOUGLAS HUBBARD KANDIYOHI LAC QUI PARLE MCLEOD MAHNOMEN MARTIN MEEKER NICOLLET NOBLES NORMAN OTTER TAIL

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----82 20%

38 19%

39 23%

76 21%

4 17%

4 1%

2 1%

4 1%

3 1%

4 1%

2 1%

1 1 -

6 1%

2 1%

1 -

3 2%

1 1%

1 -

1 1%

5 3%

3 1%

4 1%

2 1%

PENNINGTON PIPESTONE POLK POPE RED LAKE REDWOOD RENVILLE SHERBURNE SIBLEY STEARNS SWIFT TODD WILKIN

1 -

6 2%

1 -

39 25%

4 17%

36 20%

10 17%

33 22%

42 18%

4 17%

34 26%

40 22%

4 12%

36 21%

22 18%

16 26%

44 21%

14 29%

47 20%

1 24%

32 22%

4 2%

1 1%

2 1%

2 2%

4 2%

3 4%

1 1%

1 2%

3 1%

1 1%

2 1%

1 1%

2 1%

4 2%

1 -

1 1% -

5 3%

1 1%

1 -

3 2%

1 1%

2 4%

4 2%

1 1%

1 2%

1 -

1 1%

2 1%

3 1%

1 4%

2 1%

1 1%

1 4%

1 -

1 1%

1 -

1 1%

1 -

1 2%

2 1%

1 -

7 2% 1 -

3 1%

3 1% 1 -

1 -

6 2%

1 -

2 1% 1 -

1 -

4 2%

6 2%

2 1%

3 1%

1 -

1 5%

1 -

2 1%

3 1%

1 1%

1 -

4 2%

1 -

4 1%

2 8%

1 -

1 1%

1 -

3 2% -

3 2%

1 1%

1 5% -

4 2%

3 2% 1 -

1 1%

1 2%

1 1%

5 3%

2 1%

1 1%

2 2%

1 -

4 3%

2 1%

1 5%

1 -

2 1%

1 -

3 2%

1 1%

4 1%

1 -

3 1% 1 -

1 -

1 4%

1 1%

1 4% -

2 1%

1 -

4 2%

1 2%

4 3%

4 2%

1 3%

1 1%

2 2%

4 2%

1 1%

1 -

1 1% -

1 1%

1 -

3 2%

2 1%

1 2%

1 -

1 1%

2 3%

2 4%

2 1%

3 1%

1 1%

2 1%

1 1% -

2 2%

2 2% 1 1%

1 1%

1 -

1 3%

3 2%

2 1%

3 2%

3 1%

1 3%

1 1%

2 1%

1 1%

1 -

1 2%

1 -

2 1%

3 2%

1 2%

1 1%

2 1%

1 24%

1 -

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----2 -

2 -

2 1%

2 -

1 -

1 1%

2 1%

1 -

1 1%

8 2%

4 2%

3 2%

6 2%

9 2%

4 2%

5 3%

1 -

3 1% 1 -

1 -

2 -

1 -

2 1%

1 1%

1 -

1 1%

1 2%

3 2%

2 2%

1 2%

2 1%

5 2% 1 -

1 -

2 1%

1 1%

6 3%

9 2%

4 2%

1 -

3 1% 1 -

1 -

1 1%

2 1%

1 -

2 1%

1 -

4 2%

2 2%

1 -

PAGE 260

1 -

1 1%

1 -

4 2%

2 1%

1 -

1 1%

1 2%

1 -

2 1%

1 2%

1 1%

2 1%

3 1% 1 -

3 1%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 51-2 QUESTION REG: Region. BANNER 2

PAGE 259

1 -

1 1%

1 4%

5 3%

4 2%

1 4%

3 2%

1 1%

1 -

1 1%

1 -

1 2%

2 1%

1 1%

2 1%

1 1%

3 2%

1 1%

1 -

3 2%

5 2%

1 1%

4 2%

5 2%

1 2%

1 1%

1 -

1 1%

M E E T I N G S T R E E T

215

1 1%

2 1%

1 3%

1 1%

3 2%

1 1%

2 1%

1 -

2 1%

1 1%

3 3%

3 2%

4 3%

5 3%

1 1%

2 1%

1 -

1 1%

1 -

R E S E A R C H

1 -

1 1%

1 2%

2 1%

1 1%

2 3%

5 3%

4 2%

2 1%

1 1%

6 3%

1 1%

1 1% -

1 1%

5 3%

1 1%

1 -

2 1%

1 2%

1 1%

1 -

2 1%

1 1%

2 3%

6 2%

2 3%

3 1%

1 2%

1 -

2 1%

1 -

3 2%

5 4% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-3 QUESTION REG: Region. BANNER 3

BASE=TOTAL SAMPLE COLLAR ------

ANOKA CARVER DAKOTA SCOTT WASHINGTON WRIGHT

MINN-SP -------

HENNEPIN RAMSEY

NORTHEAST --------CARLTON

CASS CHISAGO COOK CROW WING ISANTI ITASCA

87 22%

30 8%

5 1%

92 23%

298 74%

202 50%

151 38%

119 30%

4 4%

26 9%

16 8%

8 5%

10 9%

13 14%

68 23%

4 1%

47 23%

3 2%

KANABEC MILLIE LACS MORRISON PINE ST. LOUIS SOUTH -----

BLUE EARTH DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR

MOWER OLMSTED RICE STEELE WABASHA WINONA

Continued

4 3%

28 7%

5 6%

21 7%

14 7%

11 3%

1 1%

8 3%

7 4%

3 2%

140 35%

33 36%

107 36%

74 36%

9 9%

28 9%

18 9%

3 1%

10 2%

104 26%

36 9%

3 3%

24 26%

48 12%

13 14%

1 -

1 1%

1 -

3 1%

6 2%

79 27%

34 11%

1 -

7 3%

56 28%

16 8%

8 5%

39 33%

35 37%

25 25%

91 33%

14 9%

7 6%

10 10%

6 6%

26 9%

46 30%

26 27%

1 1%

1 -

1 1%

1 -

1 1%

1 -

32 27%

1 1%

7 7%

1 1% 1 1%

19 18%

18 17%

1 1% -

2 1% 8 3%

65 24%

3 4%

1 2%

4 2%

64 38%

60 35%

16 9%

3 2%

48 29%

1 1% 3 1%

44 26%

2 1%

4 2%

2 1%

5 3%

2 1%

7 10%

3 4%

13 7%

17 9%

1 2%

1 1%

64 33%

15 9%

6 9%

11 7%

13 9%

3 7%

9 12%

8 10%

16 8%

20 10%

1 1%

1 2%

2 2%

1 1%

4 2%

2 1%

1 2%

3 2%

1 1%

2 3%

1 1%

1 2%

2 3%

5 3%

1 1%

36 24%

14 29%

11 8%

5 11%

1 1%

18 26%

8 11% 1 1% -

21 28%

8 11% 1 1% -

16 8%

4 2%

71 36%

9 7%

1 1%

22 30%

15 10%

11 16%

45 23%

30 40%

35 24%

6 9%

42 21%

27 38%

34 23%

6 4%

6 9%

20 27%

17 36%

6 4%

4 9%

18 25%

49 33%

1 1%

4 1%

8 12%

19 26%

46 32%

1 1%

2 1%

8 17%

14 30%

45 30%

23 32%

1 1%

4 2%

196 49%

29 41%

50 29%

1 1%

7 5%

196 49%

65 38%

1 -

4 1%

1 1%

73 18%

4 3%

2 2%

2 1%

17 12%

74 18%

5 4%

1 2%

1 1%

2 1%

35 24%

14 10%

72 18%

4 3%

3 2%

1 1%

40 27%

47 12%

2 3%

1 1%

10 7%

147 37%

12 9%

1 -

35 24%

146 36%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

12 8%

9 12%

1 -

147 37%

9 5%

22 13%

1 1%

4 2%

7 10%

30 18%

2 1%

1 1%

9 5%

71 18%

25 15%

2 2%

4 4%

2 1%

31 18%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

34 12%

1 1%

27 16%

3 2%

60 40%

1 1%

4 2%

3 3%

1 1%

10 6%

9 3%

5 4%

8 7%

9 5%

2 2%

4 1%

2 -

12 7%

31 18%

1 1%

6 4%

4 1%

18 7%

65 24%

3 3%

1 1%

4 1%

3 3%

2 2%

8 7%

171 43%

9 5%

1 1%

6 2%

1 1%

21 21%

169 42%

23 8%

2 1%

1 -

6 6%

17 18%

170 42%

10 10%

1 1%

8 8%

28 23%

274 68%

3 3%

5 1%

1 -

101 25%

13 9%

12 6%

1 2%

1 1%

2 1%

2 3%

7 3%

3 2%

14 20%

4 2%

55 28%

14 19%

21 11%

1 1%

7 4%

44 22%

26 13% -

1 1%

1 3%

3 4%

1 2%

4 5%

4 2%

1 1%

1 2%

4 2%

1 -

1 1%

1 3%

1 2%

4 2%

1 1% 1 -

2 1%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 51-3 QUESTION REG: Region. BANNER 3

30 20%

95 24%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 261

2 1%

1 1%

1 -

20 5%

6 6%

2 1%

1 1%

1 -

2 1%

2 2%

2 3%

1 -

1 1%

1 -

15 5%

5 2%

6 4%

3 2%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----2 1%

1 1%

11 7%

14 8%

19 11%

8 11%

23 16%

18 12%

1 1%

2 1%

3 2%

1 1%

5 5%

13 5%

18 15%

14 15%

11 11%

30 11%

3 1%

1 1%

2 1%

2 2%

1 1%

2 1%

2 2%

1 1%

2 1%

2 2%

4 1%

2 1%

6 2%

3 3%

4 1%

2 -

1 1%

1 -

2 -

3 1%

7 2%

2 2%

2 -

1 1%

4 1%

1 1%

2 -

3 1%

4 1%

2 2%

1 1%

1 -

3 1%

4 2%

1 -

2 1%

3 1%

2 1%

2 1% 1 -

3 1%

3 2%

4 3%

1 1%

7 4%

5 6%

7 5%

2 1%

1 1%

3 1%

2 1%

1 2%

1 -

3 2% -

2 1%

1 1%

3 2%

2 1%

4 2%

3 4%

4 2%

1 1%

1 1% -

2 2%

2 1%

2 2%

2 1%

1 1%

2 2%

2 1%

2 2% -

4 1% 1 -

1 1% 1 1%

M E E T I N G S T R E E T

216

2 1%

1 1%

1 1% -

1 1%

R E S E A R C H

1 -

2 1%

1 1%

1 2%

2 3%

1 1%

1 2%

1 1%

4 3%

3 2%

1 1%

4 3%

6 9%

1 1%

1 -

1 1%

5 6%

1 1%

2 1%

5 6%

1 1%

3 6%

1 1%

1 -

4 3%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

6 4%

3 2%

4 3%

5 3%

3 2%

2 1%

1 1%

2 1%

3 3%

5 2%

11 7%

1 1%

6 2%

8 5%

1 1%

2 2%

1 1%

3 3%

2 1%

3 1%

1 -

3 2%

2 2%

2 1%

1 -

2 2%

1 1%

17 11%

3 2%

1 1%

23 11%

2 1%

1 1%

30 10%

5 2%

1 1%

2 1%

13 14%

2 1%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

43 11%

5 1%

2 1%

PAGE 262

1 1%

3 6%

6 8%

1 1%

4 5%

1 -

1 1%

2 1%

1 1%

2 1%

1 1%

2 1% 3 2%

1 2%

2 1%

1 1%

2 1%

1 1%

2 1%

5 3%

2 3%

20 10%

1 -

2 4%

3 1%

1 1%

1 -

9 5%

3 1%

1 1%

10 5%

2 1%

1 1%

22 11%

2 1%

1 1%

4 5%

1 1%

1 -

5 3%

2 1%

1 -

1 1%

1 -

5 3%

1 -

2 1%

1 1%

2 1% 2 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-3 QUESTION REG: Region. BANNER 3

WEST-NW -------

BENTON BROWN CHIPPEWA CLAY

CLEARWATER COTTONWOOD DOUGLAS HUBBARD KANDIYOHI LAC QUI PARLE MCLEOD MAHNOMEN MARTIN MEEKER NICOLLET NOBLES NORMAN OTTER TAIL

20 22%

59 20%

42 21%

32 21%

25 21%

22 23%

26 26%

4 1%

1 1%

3 1%

2 1%

2 2%

1 1%

2 1%

1 1%

1 -

1 1%

3 1%

4 1% 1 -

1 -

1 1%

2 2% -

2 1%

2 1% 1 -

1 -

2 1%

PENNINGTON PIPESTONE POLK POPE RED LAKE REDWOOD RENVILLE SHERBURNE SIBLEY STEARNS SWIFT TODD WILKIN

2 1%

1 1%

2 2%

1 1%

2 1%

1 1%

1 -

7 2% 1 -

3 1%

1 1% -

3 1% 1 -

2 1%

1 1%

1 -

1 1%

1 -

1 2%

1 -

5 2%

1 -

4 2%

1 1%

4 3%

1 1%

3 3%

1 1%

1 -

2 1%

3 1%

2 1%

1 1%

4 1%

1 -

2 1%

1 1%

5 2%

1 1%

3 3%

1 1%

1 -

1 1%

1 -

1 1%

3 2%

1 1%

4 2%

2 1%

6 2%

1 1%

2 1%

5 2%

1 1%

1 -

2 1%

1 1%

2 2%

3 1% 1 -

2 1%

4 1%

1 -

1 1%

34 20%

4 1%

38 22%

3 1%

1 1%

38 23%

2 2%

1 1%

54 20%

1 1%

6 1%

4 1%

2 2%

1 -

2 1%

1 1%

2 1%

4 2%

1 1%

2 1%

34 23%

3 2%

1 1%

1 1% -

1 1%

1 2%

2 2%

1 1%

2 3%

4 2%

1 1%

27 19%

1 1%

29 20%

1 2%

2 1%

18 26%

1 1%

2 1%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

1 -

1 1%

1 -

1 1%

3 2%

1 1%

2 1%

1 1%

1 -

1 1%

4 3%

3 2%

4 3%

3 3%

1 1%

1 -

4 1%

1 1%

2 1%

1 1%

3 2%

1 1%

2 1%

2 2%

1 -

1 1%

3 2% -

1 -

1 1%

1 -

1 1%

3 1%

2 1%

1 1%

2 1%

1 2%

2 1%

1 1%

41 21%

2 1%

1 1%

39 20%

2 3%

13 18%

3 4%

2 1%

14 19%

1 1%

2 1%

12 17%

2 5%

1 1%

8 18%

2 1%

4 2%

1 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

1 2% -

2 3%

1 1%

3 4% -

2 1%

1 1%

2 1%

1 1%

1 2%

1 1%

1 2%

1 1%

1 -

3 1% 1 -

5 3% -

1 -

2 1%

1 -

5 2%

1 -

1 1%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 51-3 QUESTION REG: Region. BANNER 3

2 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 263

2 -

1 1%

2 1%

1 -

2 1%

3 1%

1 -

1 1%

1 -

1 1%

2 1%

1 1%

1 -

1 1%

1 1% -

3 3%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----2 1% 1 -

2 1%

3 2%

1 -

1 1%

3 3%

4 2%

2 1%

3 2%

4 2%

2 3%

4 2%

5 3%

4 5%

9 2%

3 3%

6 2%

3 1%

2 1%

2 2%

5 5%

5 2%

5 3%

1 -

1 1%

1 -

1 1%

1 -

1 1%

1 -

1 1 -

1 1% -

1 1%

1 -

M E E T I N G S T R E E T

217

1 1%

1 1% -

1 1%

1 1% -

1 -

2 2%

2 -

3 2%

1 -

3 1%

3 2%

1 1%

5 2% -

1 1%

1 -

4 1% 1 -

1 1%

4 4% -

1 1%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

1 -

2 1%

8 2% 1 -

1 1%

3 2% -

1 1%

1 -

1 1%

R E S E A R C H

3 2%

1 1%

1 1% -

4 2%

1 1% -

1 1%

PAGE 264

1 1% -

1 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

1 1%

3 2%

1 -

3 1%

1 -

1 1%

3 4%

4 2%

1 -

2 1%

1 2%

3 4%

3 2%

2 1%

1 2%

1 1%

2 2%

3 1%

6 3%

1 1%

1 -

1 1%

1 1% -

1 2% -

1 1% -

1 1% 1 1%

1 1% -

1 -

1 1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-4 QUESTION REG: Region. BANNER 4

BASE=TOTAL SAMPLE COLLAR ------

ANOKA

CARVER DAKOTA SCOTT WASHINGTON WRIGHT MINN-SP -------

HENNEPIN

RAMSEY NORTHEAST --------CARLTON CASS CHISAGO COOK CROW WING ISANTI ITASCA

87 22%

285 71%

103 26%

5 6%

21 7%

87 22%

14 16%

5 1%

1 1%

30 8%

28 7%

3 4%

43 11%

144 36%

9 9%

5 11%

6 4%

13 5%

12 12%

2 5%

10 7%

7 3%

4 4%

2 1%

55 19% 3 1%

3 1%

1 1%

2 1%

10 2%

3 4%

8 3%

11 3%

140 35%

104 26% 36 9%

48 12%

1 1 -

1 1%

35 41%

99 35%

30 29% 2 2%

1 1%

36 34%

KANABEC MILLIE LACS MORRISON PINE ST. LOUIS SOUTH -----

BLUE EARTH

DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR MOWER OLMSTED RICE STEELE WABASHA WINONA Continued

1 1%

18 42%

20 24%

2 1%

1 1%

1 1% 5 4%

54 37%

4 1%

2 3%

4 1%

2 -

1 1%

1 -

4 1%

9 7%

7 7%

16 8%

9 7%

9 8%

3 2%

1 1%

7 3%

5 3%

11 26%

28 23%

41 44%

50 34%

6 67%

76 36%

5 6%

2 3%

7 16%

4 10%

5 11%

22 18%

10 11%

14 9%

1 1%

2 2%

3 3%

1 1%

4 3%

22 18%

6 5%

1 1%

3 3%

2 1%

37 25%

31 34%

1 1%

3 2%

10 7%

45 21%

31 37%

1 1%

18 8%

2 22%

5 2%

1 1%

1 3%

3 3%

2 22%

27 18%

1 1%

114 28%

1 1%

1 14%

3 2%

120 30%

1 1%

191 48%

6 5%

1 1%

106 27%

1 -

4 1%

125 31%

1 2%

2 2%

9 11%

1 1%

128 32%

6 7%

16 11%

1 1%

151 38%

7 5%

3 6%

10 7%

19 21%

214 54%

5 5%

13 12%

1 1%

1 3%

9 10%

33 27%

10 2%

14 12%

33 12%

9 8%

5 75%

149 37%

4 61%

13 15%

10 23%

93 23%

1 2%

1 1%

26 31%

14 9%

122 31%

4 5%

40 28%

3 8%

7 2%

6 14%

15 34%

10 9%

42 11%

6 7%

26 25%

24 9%

1 2%

6 2%

1 2%

27 18%

74 26%

10 12%

5 1%

1 -

8 20%

83 21%

25 29%

10 10%

4 3%

11 5%

29 19%

6 5%

4 3%

3 2%

59 39%

47 37%

49 39%

45 30%

22 10%

17 11%

1 1%

1 -

1 1%

2 2%

1 1%

17 8%

1 -

1 1%

8 6%

59 28%

2 23%

25 20%

8 5%

4 44%

14 9%

24 19%

14 9%

4 3%

5 7%

5 5%

4 5%

34 30%

28 36%

1 1%

40 38%

68 36%

12 10%

5 5%

12 9%

4 2%

2 2%

1 1%

1 -

1 1%

41 34%

5 7%

4 4%

4 3%

15 12%

1 1%

5 3%

4 2%

54 28%

1 1%

5 5%

1 1%

34 32%

1 1%

5 4%

37 30%

5 11%

2 2%

34 27%

13 10%

8 7%

17 22%

1 1%

11 6%

1 1%

1 2%

24 32%

18 9%

14 12%

12 11%

6 8%

1 1%

1 -

3 1%

14 11%

1 1% -

19 41%

13 27%

6 13%

5 11%

1 1%

1 2%

1 3%

1 1%

1 -

3 1%

3 4%

2 2%

1 1%

9 8%

3 6%

1 2%

25 22%

15 8%

1 2%

28 23%

6 6%

46 12%

23 20%

2 1%

1 1%

3 1%

5 5%

2 1%

24 20%

2 2%

1 1%

40 21%

21 20%

77 19%

5 4%

3 2%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 51-4 QUESTION REG: Region. BANNER 4

PAGE 265

PAGE 266

2 1% 1 -

1 -

20 5%

8 9%

5 1%

2 2%

43 11% 3 1% 1 -

2 -

3 1%

1 -

1 1%

1 3%

14 5%

6 5%

5 2%

1 1%

1 -

7 8%

35 12%

3 1%

1 -

1 2%

1 1%

1 2%

1 1%

5 2%

1 1%

4 3%

2 3%

2 1%

1 2%

1 1%

1 2%

3 1%

2 1%

2 2%

1 1%

5 2%

2 1%

4 1%

1 2%

2 1%

4 1%

2 4%

1 1%

2 -

4 1%

1 1%

5 11%

2 1%

6 2%

1 1%

9 11%

1 1% -

7 5%

17 12%

2 -

4 9%

3 1%

1 1%

7 6%

7 2%

1 1%

3 2% -

2 3%

7 15%

1 1%

6 5%

2 2%

1 1%

2 1%

5 4%

1 1%

1 2%

7 5%

2 2%

6 7%

20 13%

2 1%

8 9%

3 6%

1 1%

14 12%

2 2%

1 1%

2 1%

1 1%

1 1% -

1 1%

4 2% -

2 1%

1 1%

2 1%

1 1%

10 5%

7 5%

1 1% -

9 7%

7 6%

3 3%

13 11%

15 14%

24 12%

2 1%

1 1%

2 1%

1 1%

2 1%

4 3%

1 1%

3 3%

2 1%

1 1%

1 -

1 1%

2 1% -

3 2% -

3 3% -

2 2%

R E S E A R C H

1 -

2 1%

1 1%

1 2%

1 1%

1 2%

1 1%

2 2%

1 1%

5 2%

1 1%

2 2%

1 1%

2 1%

7 14%

11 9%

1 -

1 1%

11 14%

5 4%

1 1%

2 2%

3 2%

10 9%

5 4%

2 2%

3 2%

1 3%

1 1%

1 -

2 1%

5 3%

2 2%

1 3%

1 1%

5 3%

1 -

2 2%

4 2%

1 -

4 4%

2 2%

8 4%

14 11%

4 3%

2 2%

2 1%

16 11%

3 1%

2 1%

4 2%

25 12%

3 1%

2 2%

1 1%

218

1 1%

3 2%

1 1%

M E E T I N G S T R E E T

1 1%

1 1% -

3 4%

2 2% -

1 1%

1 2%

1 2% -

3 3%

2 3%

1 2%

1 -

2 1%

1 -

1 2%

4 2%

1 1%

2 2% -

1 1%

2 4% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-4 QUESTION REG: Region. BANNER 4

WEST-NW -------

BENTON

BROWN CHIPPEWA CLAY CLEARWATER COTTONWOOD DOUGLAS HUBBARD KANDIYOHI LAC QUI PARLE MCLEOD MAHNOMEN MARTIN MEEKER NICOLLET NOBLES NORMAN OTTER TAIL

18 20%

63 22%

18 18%

10 23%

31 22%

14 16%

11 25%

2 25%

25 20%

15 16%

38 26%

1 12%

47 22%

30 20%

28 22%

26 21%

25 23%

41 21%

30 25%

34 30%

16 21%

11 23%

4 1%

2 4%

2 2%

4 3%

3 1%

2 1%

3 1%

1 1%

2 2%

2 4%

3 1%

4 1%

1 -

2 2%

2 1%

1 -

6 1%

1 1%

5 2%

1 -

1 1%

7 2%

2 3%

6 2%

3 1%

2 1% 1 -

1 -

4 1% 1 -

1 -

3 1%

3 1% 1 -

1 -

6 2%

1 1%

1 1% -

2 2%

1 -

3 1% 1 -

1 -

3 1% 1 -

1 -

5 2%

2 2%

1 3%

1 1%

PENNINGTON

POLK POPE RED LAKE REDWOOD RENVILLE SHERBURNE SIBLEY STEARNS SWIFT TODD WILKIN

1 1%

1 3%

1 1%

2 2%

3 4%

1 2%

1 1%

3 2%

2 1%

1 1%

1 1% -

2 1% -

1 1%

1 2%

5 3%

1 1%

1 3%

1 2%

2 5% -

1 2%

1 -

1 1%

1 12%

2 1%

1 1%

1 -

1 1%

2 2%

2 1%

3 1%

2 1%

1 1%

4 2%

3 2%

2 1%

1 1%

1 13%

2 2%

3 4%

1 1%

1 1% -

1 1%

1 -

2 1%

1 1%

2 2%

1 1%

4 4%

1 1%

M E E T I N G S T R E E T

4 3%

2 1%

3 2% -

2 1%

1 -

4 2% -

1 -

2 1%

1 -

2 1% -

2 2%

1 1%

3 2% -

3 3%

4 2%

1 1%

4 3%

1 1%

2 2%

1 1%

2 1%

3 2%

4 3%

1 1%

2 2%

5 2%

1 1%

4 2%

3 2%

1 2%

2 2%

1 1%

3 3%

2 2%

1 1%

2 1%

1 1%

2 2%

1 1%

1 -

1 1%

1 -

1 1%

4 4% -

4 3%

2 2%

2 3%

2 2%

1 1%

1 2%

3 3%

1 1%

1 -

1 2%

3 6% -

1 2%

1 1%

2 4%

1 1%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-4 QUESTION REG: Region.

PIPESTONE

1 1%

Continued

BANNER 4

PAGE 267

PAGE 268

1 1%

1 -

1 1%

2 -

2 1%

3 1% 1 -

1 -

1 1%

1 1% -

1 -

2 1%

3 1% -

1 1%

1 2%

1 1%

3 2%

1 1%

1 1% -

1 1%

1 -

8 2%

2 2%

5 2%

4 3%

2 4%

4 3%

9 2%

2 2%

7 3%

2 2%

2 4%

1 -

1 1%

1 -

2 -

1 -

1 3%

1 2%

1 1%

1 -

1 2%

1 1%

1 2%

1 1%

1 -

1 1%

1 1% -

1 1%

2 4%

1 12%

1 1%

4 4%

3 2%

1 1%

219

M E E T I N G S T R E E T

4 3%

1 1%

2 1%

3 3%

1 -

2 1%

1 -

2 1%

1 1%

1 1% -

1 1%

1 -

1 1%

1 -

2 2%

1 1%

1 -

2 2%

6 3%

4 2%

3 2%

2 2%

3 3%

4 2%

4 3%

3 2%

1 -

1 1%

2 1%

1 1%

2 2%

1 1%

2 1%

1 1%

1 -

1 1%

R E S E A R C H

1 1% -

1 2%

6 3%

1 1%

3 3%

2 2%

1 1%

4 3%

3 2%

1 1%

2 1%

1 1%

4 2%

4 3%

1 1%

2 2%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-5 QUESTION REG: Region. BANNER 5

BASE=TOTAL SAMPLE COLLAR ------

ANOKA

CARVER DAKOTA SCOTT WASHINGTON WRIGHT MINN-SP -------

HENNEPIN RAMSEY

NORTHEAST ---------

BELTRAMI

CARLTON CASS CHISAGO COOK CROW WING ISANTI

212 53%

145 36%

108 27%

30 8%

13 6%

8 6%

7 6%

87 22% 5 1%

28 7%

48 23% 2 1%

23 16% -

15 16%

2 2%

KANABEC KOOCHICHING LAKE MILLIE LACS MORRISON PINE ST. LOUIS SOUTH -----

BLUE EARTH

DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR MOWER OLMSTED RICE

Continued

5 5%

79 20%

13 17%

1 2%

11 10%

3 3%

4 5%

11 3%

8 4%

3 2%

2 2%

3 3%

2 3%

140 35%

67 32%

44 30%

41 38%

31 34%

33 42%

10 2%

3 1%

5 2%

1 1%

3 2%

2 2%

18 25%

9 13%

11 7%

3 1%

71 18%

4 5%

16 8%

3 4%

2 3%

319 80%

72 23% 25 8%

5 2%

81 20%

15 18% 5 6%

23 7%

5 6%

1 2%

9 3%

26 36%

115 36%

1 1%

3 5%

3 1%

7 2%

62 16%

82 20%

10 16%

22 27%

2 3%

5 8%

7 9%

2 3%

7 9%

2 2%

1 2%

26 32%

24 39%

3 3%

87 22%

37 24%

16 18%

2 1%

1 1%

14 9%

4 5%

11 7%

7 8%

4 5%

4 3%

31 38%

47 30%

1 2%

1 1%

154 39%

1 2%

1 1%

5 3%

320 80%

75 23%

29 9% 5 2%

43 11%

8 18%

1 3%

23 7%

3 7%

2 2%

9 3%

2 5%

32 37%

103 32%

19 45%

1 2%

3 1%

6 2%

54 10%

100 19%

51 10%

100 19%

218 42%

30 14%

28 13%

11 5%

10 18%

1 3%

10 18% -

78 36% 5 2%

3 1% -

140 64%

104 26%

50 24%

34 23%

32 30%

23 26%

28 36%

18 26%

87 27%

18 22%

19 30%

17 21%

36 23%

27 31%

70 22%

16 38%

104 48%

48 12%

33 16%

21 14%

10 9%

12 14%

6 8%

5 7%

36 11%

12 15%

5 8%

9 12%

21 13%

11 13%

43 13%

5 12%

24 44%

56 56%

1 1%

5 3%

36 9% -

1 -

17 8% -

1 -

1 1%

10 7% -

1 1%

5 1%

1 1%

4 3%

4 1%

2 1%

2 2%

1 -

6 2%

1 -

6 3%

8 8% -

5 6% -

7 10% -

1 2%

3 3%

1 2%

1 1%

1 2%

28 9% -

1 -

8 10% -

4 5%

5 9% -

1 1%

5 2%

1 1%

1 2%

4 1%

14 17%

M E E T I N G S T R E E T

11 7% -

5 6% -

1 1%

4 2%

1 1%

33 10%

1 -

3 8% -

1 2%

4 1%

1 3%

5 9%

1 1%

4 1%

4 7%

1 -

6 2%

6 6% -

36 17% -

2 2%

6 12%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-5 QUESTION REG: Region.

ITASCA

92 23%

26 24%

Continued

BANNER 5

PAGE 269

PAGE 270

2 1% -

2 1% 1 -

1 -

20 5%

43 11%

2 1% -

1 1%

14 7%

1 1%

1 1% -

10 7%

1 1%

1 1% -

2 2% -

4 3%

17 8%

20 13%

13 12%

3 1%

2 1%

1 1%

2 -

2 1%

7 2%

2 1%

2 -

5 1% 1 -

3 1% 2 -

4 1%

6 2%

4 2%

3 2%

1 1%

7 8%

2 2%

1 1%

3 1%

2 1%

4 3%

1 1% -

2 2%

3 3%

2 3%

1 1%

2 2%

1 1%

3 3%

2 2%

1 1% -

3 3%

1 1%

1 2%

1 1%

3 3%

1 2%

2 1%

11 14%

2 2%

1 1%

1 2%

13 15%

1 1%

2 1%

2 1% -

1 -

17 5%

1 1%

2 3% -

4 4%

7 10%

32 10%

10 13%

2 1%

1 1%

2 1%

1 1% -

1 1%

3 4%

3 1% 1 -

3 1%

2 2% -

3 4%

9 14% 2 3% -

1 1%

4 1%

2 3%

1 2%

2 1%

1 2%

2 1%

4 1%

5 1%

2 2%

1 1%

2 1%

1 2%

1 1% -

6 7%

1 1% -

6 4%

5 5%

1 -

1 3%

1 -

17 5%

2 1%

1 1%

3 1%

1 1%

2 1%

1 1%

4 3%

2 1%

2 2%

5 1%

1 1%

4 2%

1 1%

2 2% -

2 2%

R E S E A R C H

3 1%

4 8%

5 11% -

1 -

2 4%

2 5%

1 -

1 2%

4 1%

2 4%

1 3%

39 39%

3 6%

2 4%

43 84%

5 9%

1 2%

3 5%

7 13%

2 2%

1 1%

31 10%

10 12%

3 2%

5 5%

19 12%

2 4%

2 1%

1 2%

4 5%

1 2%

220

2 1%

1 1%

M E E T I N G S T R E E T

1 1%

2 4%

6 13%

4 8%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-5 QUESTION REG: Region. BANNER 5

STEELE WABASHA WINONA WEST-NW -------

BECKER

BENTON BROWN CHIPPEWA CLAY CLEARWATER COTTONWOOD DOUGLAS GRANT HUBBARD JACKSON KANDIYOHI KITTSON LAC QUI PARLE LAKE OF THE WOODS

4 1%

1 -

2 1%

1 1%

3 2%

1 -

1 1%

2 2%

LYON MCLEOD MAHNOMEN MARSHALL MARTIN MEEKER MURRAY NICOLLET NOBLES NORMAN OTTER TAIL PENNINGTON PIPESTONE POLK POPE RED LAKE REDWOOD RENVILLE

Continued

1 1%

2 -

1 -

3 1%

2 2%

1 1%

3 2%

1 1%

3 1%

3 3%

2 1%

4 1%

3 7%

2 4%

4 7%

47 22%

38 26%

18 17%

20 22%

15 19%

16 22%

64 20%

18 22%

14 23%

15 19%

31 20%

18 20%

68 21%

6 14%

20 38%

44 44%

8 16%

100 100%

3 1%

1 -

1 1%

3 2%

1 1%

2 1%

1 1%

3 1%

3 5%

4 1%

1 1%

2 1%

1 1%

4 5%

3 4%

2 1%

2 3%

1 2%

2 3%

1 1%

3 1%

1 3%

5 5%

1 -

1 1%

1 -

4 1%

2 1% 1 -

4 2% 1 -

1 -

1 1%

1 1% -

2 2% -

1 1% -

6 1%

3 1%

4 3%

1 1%

3 3%

4 1%

2 1%

2 2%

1 1%

1 -

1 1% -

1 -

1 1% -

1 2%

1 1%

3 1%

1 1%

1 -

4 1%

1 1%

4 1%

1 2%

1 1%

1 -

1 1%

1 1% -

1 1%

3 3% -

2 1%

2 1% 1 -

2 2%

2 1%

1 2%

3 1%

2 3%

1 1%

4 1%

1 2%

1 1%

M E E T I N G S T R E E T

1 1%

1 -

1 3%

1 1%

3 3%

2 2%

7 7% -

1 1%

4 7%

8 8%

5 5%

1 1%

12 12%

4 4%

1 1%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-5 QUESTION REG: Region.

LINCOLN

82 20%

Continued

BANNER 5

PAGE 271

PAGE 272

7 2%

5 2%

1 -

3 1%

3 1% -

1 -

2 2%

1 1%

1 -

1 1%

2 -

2 1%

1 -

3 2%

1 1%

1 -

2 2%

1 -

3 1%

1 -

5 2%

1 1%

1 2%

2 1%

1 1%

2 1%

1 -

2 2%

1 2%

2 3%

1 -

1 1%

2 2%

1 -

6 2%

1 -

2 1%

1 1%

2 1%

2 1% -

3 1% 1 -

1 1%

5 2%

2 2%

3 2%

2 1%

3 3%

3 1%

6 2%

2 1%

3 2%

1 1%

1 -

2 -

1 -

1 1%

2 3% -

1 -

1 1%

1 2%

1 -

1 2%

221

M E E T I N G S T R E E T

1 1%

2 2% -

1 -

3 1%

3 1% -

1 -

3 5%

1 1%

2 2%

14 14%

3 3%

4 4%

2 2%

3 1%

1 1%

8 8%

11 11%

3 3%

1 1%

1 -

1 3%

1 1%

1 -

R E S E A R C H

1 -

1 1%

2 2%

2 1%

2 2%

1 -

2 1%

3 2%

1 1%

12 12%

1 1%

1 -

1 1%

1 -

2 1%

1 1%

2 1%

3 5%

1 1%

1 3%

1 1%

6 2%

2 2%

1 1%

3 2%

1 1%

1 2%

8 8% -

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 51-5 QUESTION REG: Region. BANNER 5

ROCK ROSEAU SHERBURNE SIBLEY STEARNS STEVENS SWIFT TODD TRAVERSE WILKIN YELLOW MEDICINE

8 2%

4 2%

5 3%

2 2%

9 2%

5 3%

4 3%

1 1%

1 -

1 1%

1 -

2 -

1 -

1 1%

BASE=TOTAL SAMPLE IF INITIATIVE FOUNDATION -----------------------BENTON

CASS CHISAGO CROW WING ISANTI KANABEC MILLIE LACS MORRISON PINE SHERBURNE STEARNS TODD WRIGHT NORTHLAND FOUNDATION -------------------CARLTON

COOK ITASCA Continued

1 1%

3 3%

2 3%

6 2%

2 2%

3 3%

6 2%

3 3%

1 1%

2 1%

1 1% -

1 1%

1 -

1 1%

1 -

1 1%

5 3%

1 1%

7 2%

1 2%

8 15%

2 3%

2 2%

2 1%

4 4%

9 3%

9 17%

1 1%

2 1%

1 1%

1 -

1 2%

7 7% -

2 2%

1 2%

1 1%

3 3%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-1 QUESTION GREG: Greater MN Regions. BANNER 1

PAGE 273

PAGE 274

140 35%

3 1%

54 13% 1 -

5 1%

87 22%

1 3%

5 10%

6 13%

2 5%

2 1%

1 -

8 2%

9 2% 1 -

10 2%

24 6% 1 -

1 -

2 -

24 50%

1 -

10 11%

2 1%

43 11%

4 1%

6 2%

48 12%

20 25%

1 1%

2 1%

1 1%

1 3%

24 50%

1 2%

1 1%

2 5%

5 3%

1 1%

2 1%

15 14%

3 2 1% 1% M E E T I N G S T R E E T 1 1 1% 1% 4 2%

10 11%

27 16%

108 27%

44 26%

166 42%

1 3%

10 4%

172 43%

3 3%

228 57%

4 8%

82 20%

1 2%

2 4%

6 4%

5 3%

2 1%

1 1%

3 2%

2 2%

10 10%

202 51% 30 15%

117 29% 18 15%

2 1 1% 1% R E S E A R C H 1 1% -

3 3%

1 1%

2 2%

5 2%

1 1%

2 1%

1 1%

9 11%

9 5%

5 3%

3 3%

1 1%

7 4%

2 2%

10 4%

2 1%

3 2%

5 5%

4 2%

2 2%

8 10% 1 1% -

8 5% 1 -

24 14%

1 1%

2 1%

1 1%

101 25%

2 2% -

7 5%

6 5%

7 7%

1 1%

M E E T I N G S T R E E T

222

4 2% 1 -

3 2% -

79 20%

91 23%

97 24%

77 19%

39 13%

21 13%

15 14%

5 15%

10 13%

1 1%

1 -

1 1%

1 2%

1 1%

3 3%

1 1% -

1 1%

1 1% -

4 5%

1 1%

2 2%

4 5%

3 1%

1 1%

1 3%

5 2%

1 1%

1 3%

3 3%

4 1%

2 2%

4 1%

2 1%

6 2%

4 3%

1 1%

2 2%

3 3%

1 4%

2 3%

2 2%

2 3%

1 3%

4 4%

5 2%

3 2%

1 1%

2 2%

3 6%

4 4%

20 7%

1 -

1 1%

1 3%

1 1%

3 3%

2 2%

3 2%

1 -

6 2%

1 2%

1 1%

3 3%

1 4%

5 10%

1 1%

1 4%

2 2%

1 1%

2 2%

2 1%

2 2%

1 1%

2 3%

1 1%

1 2%

1 1%

R E S E A R C H

33 8%

15 15%

1 -

1 1%

107 27%

8 18%

5 5%

1 -

157 39%

6 10%

8 9%

299 75%

13 14%

1 1%

4 5%

100 25%

11 12%

12 10%

1 1%

46 12%

6 8%

8 4%

60 15%

2 2%

1 1%

2 2% -

11 7%

5 4%

2 5%

5 7%

1 1%

2 1%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-1 QUESTION GREG: Greater MN Regions. BANNER 1

ST. LOUIS NORTHWEST MINNESOTA FOUNDATION ------------------CLEARWATER

HUBBARD MAHNOMEN NORMAN PENNINGTON POLK RED LAKE SOUTHERN MINNESOTA INITIATIVE FOUNDATION --------------------BLUE EARTH BROWN DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR

12 3% 1 -

4 1%

20 42% -

MARTIN MOWER NICOLLET OLMSTED RICE SIBLEY STEELE WABASHA WINONA SOUTHWEST INITIATIVE FOUNDATION -------------------CHIPPEWA

COTTONWOOD KANDIYOHI LAC QUI PARLE MCLEOD MEEKER NOBLES PIPESTONE REDWOOD Continued

12 15%

1 1%

4 5%

1 1%

2 -

1 -

3 1%

1 -

20 12% 12 7%

7 4%

1 1%

4 2%

1 1%

2 2%

1 1%

3 3%

6 3%

1 1%

6 5%

2 2% -

7 7%

2 2% -

1 1%

3 2%

1 1%

1 1% -

1 1%

1 -

1 1%

2 1%

1 1%

2 2%

4 5%

4 3%

4 2%

11 9%

7 3%

1 1%

6 3%

1 -

1 1%

1 -

7 7%

2 2%

4 4%

1 1%

2 2%

1 1% -

4 4%

1 1% -

2 3% -

1 2%

1 1%

3 6%

4 8% -

9 3% 1 -

8 5%

1 1%

3 2%

1 1%

1 2%

3 6%

1 -

2 1%

1 1%

3 1%

1 -

2 5%

5 5%

2 1%

5 4%

5 3%

2 2%

3 3%

17 6%

3 3%

1 1%

3 3%

5 6%

1 1% -

51 13%

43 100%

8 10%

51 30%

17 10%

13 12%

17 16%

24 12%

14 12%

12 15%

11 12%

10 10%

13 22%

3 6%

10 11%

40 13%

22 14%

11 10%

5 15%

11 14%

5 1%

5 11%

5 3%

2 2%

3 3%

3 2%

2 2%

1 1%

2 3%

1 1%

4 1%

1 1%

2 2%

2 6%

3 7%

2 1%

1 1%

2 1%

1 1%

2 2%

1 1%

4 1%

3 1% 1 -

2 -

3 1%

2 -

7 2%

4 5%

1 2%

2 4%

4 2%

3 2%

2 1%

1 1%

2 1%

3 6%

3 2%

1 1%

2 5%

2 1%

7 15%

7 4%

2 2%

1 1%

2 2%

1 1%

3 3%

2 1% 1 -

1 -

2 2%

1 1%

2 2%

4 5%

2 2%

1 1%

2 3%

2 2%

1 2%

2 3%

1 1%

3 1%

2 1%

1 1%

2 1%

1 1%

2 2%

4 1%

1 -

3 1%

2 1%

1 1%

2 1%

1 1%

2 2%

2 2% -

1 1%

2 3%

3 3%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 52-1 QUESTION GREG: Greater MN Regions. BANNER 1

PAGE 275

1 1%

PAGE 276

1 -

3 3%

1 1%

6 15%

2 5%

4 1%

4 10%

1 -

6 2%

3 1% 2 -

4 1%

7 2%

3 1%

1 -

2 -

1 -

1 1%

4 2%

3 2%

1 1%

2 1%

1 1%

3 2%

1 1%

1 -

2 2%

3 3%

1 1%

2 2%

2 1%

1 1%

2 2%

1 1%

2 1%

3 1%

1 -

1 1% -

1 1%

3 3%

1 1%

3 3%

1 2%

2 2%

1 1%

1 2%

3 1% 1 -

1 -

2 1%

1 1%

1 -

1 1%

1 2%

1 1%

2 1%

1 1%

1 2%

4 1%

1 1%

2 1%

5 3%

7 8%

4 4%

6 10%

2 4%

3 3%

21 7%

12 8%

4 5%

4 2%

2 1%

1 1%

2 1%

1 1%

2 2%

2 3%

1 1%

3 1%

2 1%

1 1%

1 -

1 1%

2 2%

1 1%

7 9%

3 4%

2 2%

1 1% 1 1%

1 1%

7 4%

5 3%

1 1%

2 2%

1 1%

3 2%

1 1%

2 2%

2 1%

1 1%

1 1% 1 1%

1 1%

M E E T I N G S T R E E T

223

1 1%

1 -

5 2%

1 1%

3 1%

1 -

1 1%

R E S E A R C H

2 2%

1 1%

1 2%

2 3%

1 1%

6 2%

1 -

6 2%

1 1%

3 2%

1 -

1 1%

5 5%

2 6%

3 4%

1 3%

1 1%

2 1%

1 1%

2 3%

1 1%

1 3%

3 1%

1 1%

1 -

1 3%

2 1%

1 -

2 3%

1 2%

2 2%

1 1%

3 3%

2 2%

1 1%

2 2%

1 1%

8 7%

1 1%

4 2%

2 1%

1 1%

2 1%

14 7%

6 4%

2 1%

5 5%

6 5%

1 1%

13 8%

1 1%

24 14%

1 1%

4 1%

1 -

2 1%

24 29%

1 -

3 2%

4 9%

2 4%

24 6%

1 -

3 8%

1 1% -

1 3%

1 1%

2 3%

1 3%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-1 QUESTION GREG: Greater MN Regions. BANNER 1

RENVILLE SWIFT WEST CENTRAL INITIATIVE ----------------------CLAY

DOUGLAS OTTER TAIL POPE WILKIN NONE ----

ANOKA

CARVER DAKOTA HENNEPIN RAMSEY SCOTT WASHINGTON

2 -

17 4%

6 1%

2 1%

6 2%

2 1% 1 -

218 54%

140 100%

5 1%

30 8%

28 7%

78 89%

30 35%

28 32%

104 74%

3 1%

11 3%

104 26% 36 9%

36 26% -

5 6%

3 4%

11 13%

BASE=TOTAL SAMPLE IF INITIATIVE FOUNDATION -----------------------BENTON

CASS CHISAGO CROW WING ISANTI KANABEC MILLIE LACS MORRISON PINE SHERBURNE STEARNS TODD WRIGHT NORTHLAND FOUNDATION -------------------CARLTON

COOK ITASCA

Continued

1 1%

2 2%

17 21%

6 7%

2 3%

1 1% -

4 2%

6 3%

1 1%

2 1%

36 16%

11 5%

3 3%

2 1%

1 1%

1 -

5 2%

104 46%

3 1%

3 2%

5 5%

36 36%

12 11%

6 4%

3 3%

3 2%

4 4%

24 22%

17 10%

3 4%

2 2%

1 1%

8 7%

1 1%

2 2%

13 8%

4 4%

1 1%

115 57%

1 1%

7 9%

2 1%

53 52%

5 4%

3 3%

2 2%

1 1%

61 57%

13 12%

1 -

1 1%

11 7%

38 23%

4 2%

1 1%

91 55%

1 1%

1 -

7 7%

2 1%

28 12%

6 3%

1 1%

5 5%

1 1%

218 96%

1 -

2 1%

30 13%

2 1%

1 1%

17 10%

2 3%

2 1%

6 7%

1 1%

2 2%

1 1%

5 6%

1 1%

3 4%

2 3%

1 2%

18 29%

1 1%

1 2%

9 9%

13 14%

2 2%

3 3%

2 2%

4 1%

2 1%

1 -

1 1%

2 1%

1 1%

1 2%

1 1%

6 4%

4 1%

4 7%

1 1%

12 4%

2 2%

31 51%

22 23%

2 1%

1 1%

1 2%

61 63%

5 8%

1 -

2 1%

1 3%

1 1%

9 9%

3 3%

2 2%

4 4%

3 2%

6 3%

1 2%

12 12%

24 27%

1 1%

2 4%

5 6%

34 43%

9 8%

1 1%

23 19%

23 12%

5 5%

48 24%

5 5%

4 8%

46 51%

8 7%

2 4%

2 3%

46 58%

15 7%

4 4%

3 4%

57 49%

12 10%

1 2%

1 1%

1 2%

17 8%

1 1%

1 -

1 4%

2 3%

1 1%

23 50%

59 59%

159 53%

80 51%

63 59%

2 2%

3 1%

3 2%

2 2%

1 2%

9 9%

11 23%

30 30%

1 1%

2 3%

5 11%

2 5%

24 8%

19 6%

14 9%

2 2%

9 3%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100%

201 50%

171 43%

372 93%

21 5%

12 7%

12 11%

4 13%

5 3%

3 3%

1 1%

196 49%

155 39%

21 5%

181 45%

59 15%

150 37%

236 59%

22 6%

129 32%

181 45%

36 9%

172 43%

123 31%

62 15%

208 52%

49 12%

3 1%

1 1%

2 1%

2 3%

50 13%

2 12%

29 15%

17 11%

3 15%

29 16%

6 10%

18 12%

33 14%

1 3%

19 14%

24 13%

2 5%

1 -

1 1%

1 -

1 1%

4 1%

4 2%

4 1%

1 1%

2 2%

1 1%

2 4%

2 1%

1 1%

1 -

1 6%

1 1%

5 1%

6 2%

2 1%

5 2%

4 2%

2 1%

1 1%

1 -

8 2%

4 2%

1 -

10 2%

4 2%

3 2%

24 6%

9 5%

1 -

2 -

6 2%

2 1%

1 1%

9 2%

2 1%

5 1%

1 -

3 1%

3 2%

5 3%

1 -

5 3%

1 -

6 2%

9 2%

1 -

8 2%

2 1%

4 2%

3 1%

1 1%

4 2%

1 6%

5 3%

11 6%

1 -

1 4%

3 2%

1 1%

6 3%

3 13%

1 -

1 1%

21 6%

1 1%

12 7%

23 30%

6 8%

3 4%

23 14% 1 -

5 7%

7 21%

MN BUSINESS CAPITAL STATUS E 2019 E T I N G SCLIMATE T R E E T R GROSS E S E REVENUES A R C H ECONOMYMIN PROFITABILITY EXPENDITURES QUO EMPLOYEE WAGES ================= ================== ================= ================= ================= ====== =================

26 13% 2 1%

4 5%

PAGE 278

54 13% 3 1%

1 3%

2 1%

42 54%

10 10%

29 27%

2 3%

17 52%

9 6%

2 1%

29 10%

5 15%

34 22%

7 7%

6 6%

74 25%

5 7%

1 1%

2 1%

7 7%

2 6%

1 2%

4 9%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-2 QUESTION GREG: Greater MN Regions. BANNER 2

PAGE 277

1 -

4 2%

1 2%

1 1%

2 1%

1 1%

4 2%

1 1%

4 2%

5 2%

4 2%

1 1%

4 2%

2 1%

1 1%

1 4%

5 3%

1 4%

5 3%

2 1%

1 7%

7 5%

3 13%

1 1%

1 -

1 1%

7 4%

9 15%

1 2%

1 1%

1 2%

M E E T I N G S T R E E T

224

4 2%

2 1%

1 1%

4 2%

1 1%

5 3%

2 1%

1 1%

2 1%

1 3%

1 1%

3 2%

1 1%

5 3%

5 2%

1 -

7 3%

1 1%

3 3%

1 -

1 1%

5 3%

1 1%

1 -

R E S E A R C H

4 3%

1 1%

2 1%

3 12%

1 1%

1 3%

14 6% -

7 5% -

4 3%

7 6% -

3 2% 1 -

4 2% 9 5% -

1 -

3 1%

26 15%

13 10% 1 1%

1 1%

3 4%

1 1%

5 3%

1 1%

1 2% 2 5%

4 2%

4 3%

12 7%

1 1%

1 3%

4 2%

2 2%

33 16%

8 13%

2 1%

10 8% -

1 1%

233 58%

3 1%

148 37%

9 18%

29 12%

1 18%

23 16%

1 1%

3 1%

2 1%

4 2%

2 5%

4 2%

1 1%

2 1%

1 1%

6 3%

3 1%

5 4%

2 3% -

1 1%

2 1% -

5 3% -

2 3%

2 3% -

2 3%

5 3%

1 2%

1 1%

1 2%

1 -

3 4% -

11 5% 1 -

3 2%

2 1%

1 1%

6 2% 1 -

5 2%

5 9%

8 4%

1 -

1 18%

1 1%

3 2% -

3 2%

15 10%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-2 QUESTION GREG: Greater MN Regions. BANNER 2

ST. LOUIS NORTHWEST MINNESOTA FOUNDATION ------------------CLEARWATER

HUBBARD MAHNOMEN NORMAN PENNINGTON POLK RED LAKE SOUTHERN MINNESOTA INITIATIVE FOUNDATION --------------------BLUE EARTH

BROWN DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR MARTIN

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----20 5%

7 4%

11 6%

18 5%

NICOLLET OLMSTED RICE SIBLEY STEELE WABASHA WINONA SOUTHWEST INITIATIVE FOUNDATION -------------------CHIPPEWA

COTTONWOOD KANDIYOHI LAC QUI PARLE MCLEOD MEEKER NOBLES PIPESTONE REDWOOD RENVILLE Continued

6 4%

3 13%

5 2%

6 4%

11 3%

1 4%

7 3%

4 2%

1 -

1 1%

1 -

1 4%

6 3%

7 12% 2 3%

1 -

4 1%

1 1%

2 1%

3 1%

1 4%

2 1%

1 1%

1 4%

4 2%

1 -

1 1%

1 -

1 1%

1 -

2 -

3 1%

1 -

2 1%

1 -

2 1%

1 -

2 -

3 1%

1 -

3 2%

7 4%

5 3%

12 5%

7 3%

3 12%

4 3%

9 5%

1 3%

2 1%

6 5%

1 1%

5 2%

1 2%

6 2%

5 4%

1 -

1 1%

2 1%

1 1%

1 -

1 2%

1 1%

2 1%

3 2%

1 -

5 4%

9 5%

1 3%

11 6%

9 8%

1 1%

2 1%

1 3%

1 1%

2 2%

1 1%

1 -

2 1%

3 2%

2 1%

1 1%

1 -

1 1%

3 4%

2 1%

1 -

1 1%

2 1%

1 1%

8 4%

1 -

4 7%

7 3%

2 1%

1 -

1 2%

1 -

13 9%

2 1%

1 1%

2 1%

51 13%

30 15%

17 10%

47 13%

3 13%

28 14%

20 13%

20 11%

7 12%

22 15%

31 13%

4 17%

14 11%

22 12%

6 17%

23 14%

11 9%

15 24%

25 12%

5 11%

29 13%

1 30%

16 11%

5 1%

3 1%

2 1%

5 1%

3 1%

2 1%

3 2%

2 3%

5 2%

3 2%

2 1%

1 1%

2 1%

5 2%

3 1%

2 1%

1 4%

2 1%

1 1%

2 1%

1 1%

2 1%

1 3%

2 2%

1 1%

1 -

2 1%

1 1%

2 1%

6 3%

1 -

4 1% 1 -

2 -

3 1%

7 2% 2 -

3 1%

2 1% 1 -

2 1%

1 -

2 1% -

2 1%

4 1% 1 -

2 -

1 4%

2 1%

7 2%

3 1%

Continued

MOWER

12 3%

1 -

2 1%

3 2%

2 1%

4 2% -

1 1%

3 2%

1 1% -

3 2%

2 1%

1 1%

2 1% 1 -

1 -

2 1%

2 3%

3 2%

3 1%

1 -

2 1%

1 -

2 1%

M E E T I N G S T R E E T

1 -

2 2%

1 4% -

1 1%

3 2%

4 2%

1 1%

2 1%

1 1%

2 1%

1 1%

1 3%

4 3%

2 1%

1 -

2 1%

R E S E A R C H

1 1%

3 4% -

1 1%

1 2%

1 -

2 1%

2 3%

4 2%

1 1%

1 -

1 2%

1 -

3 1%

1 -

2 1%

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----2 -

1 1%

2 1%

4 1%

2 1%

1 1%

3 1%

1 -

1 1%

3 2%

6 2%

5 2%

2 1%

3 1%

2 1%

3 1%

2 1%

4 1%

3 1%

1 1%

4 1%

2 1%

2 -

1 -

1 4%

1 -

1 5%

11 6%

4 2%

24 6%

10 5%

13 7%

23 6%

4 1%

3 2%

1 1%

4 1%

1 -

7 2%

2 1%

4 2%

6 2%

1 5%

1 -

3 1% 2 -

1 1 -

1 1%

1 -

2 1%

3 1%

1 -

1 1%

2 1%

1 1%

1 -

1 1%

1 -

1 1%

1 30%

1 -

1 1%

2 1%

PAGE 280

4 2%

1 -

2 1%

6 2%

1 -

1 1%

4 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-2 QUESTION GREG: Greater MN Regions. BANNER 2

2 9%

PAGE 279

1 1%

12 8%

1 1%

2 1%

1 2%

2 1%

3 1%

1 2%

2 1%

1 1%

1 2%

1 1%

1 4%

1 1%

1 2%

1 1%

1 -

1 1%

1 2%

1 1%

1 4%

3 1%

1 1%

2 1%

3 2%

2 1%

1 -

1 5%

1 -

3 2%

2 1%

3 2%

2 1%

1 1%

1 4%

1 1%

4 2%

1 1%

8 5%

3 2%

2 3%

1 1%

13 7%

1 1%

6 4%

1 -

1 5%

1 1%

1 2%

2 1%

1 3%

1 1%

1 2%

3 1%

1 1%

1 -

2 1%

1 3%

11 6%

2 6%

1 -

1 5%

2 2%

1 1%

1 3%

1 1%

3 2%

1 -

1 1%

2 1%

1 1%

1 -

R E S E A R C H

1 1%

1 1% -

2 1%

10 8%

1 4%

1 -

1 3%

3 14%

1 1%

2 2%

1 1%

2 1%

1 1%

10 6%

7 6%

2 1%

1 1%

4 2%

1 3%

11 5%

1 1%

2 1%

1 1%

225

1 1%

M E E T I N G S T R E E T

1 1%

1 3%

1 1%

1 -

2 1%

1 1%

2 1%

10 7%

2 1%

1 -

1 1%

2 1%

1 1%

5 8%

3 1%

12 6%

1 2%

4 8%

2 1%

14 6%

3 1%

2 4%

2 1%

1 -

1 2%

3 1%

1 2%

5 2%

1 -

1 2% -

1 2%

2 1%

1 2%

1 -

1 1%

5 2%

1 -

1 2%

1 1% -

1 -

3 1%

1 2%

3 2%

2 1%

3 4%

3 2%

1 2%

1 -

2 1%

1 -

1 1%

2 1%

1 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-2 QUESTION GREG: Greater MN Regions. BANNER 2

SWIFT WEST CENTRAL INITIATIVE ----------------------CLAY

DOUGLAS OTTER TAIL POPE WILKIN NONE ----

ANOKA

CARVER DAKOTA HENNEPIN RAMSEY SCOTT WASHINGTON

Table 52-3 QUESTION GREG: Greater MN Regions. BANNER 3

BASE=TOTAL SAMPLE IF INITIATIVE FOUNDATION -----------------------BENTON CASS CHISAGO CROW WING ISANTI KANABEC MILLIE LACS MORRISON PINE SHERBURNE STEARNS TODD WRIGHT NORTHLAND FOUNDATION -------------------CARLTON COOK ITASCA

Continued

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----2 -

17 4%

1 -

1 1%

2 1%

9 4%

7 4%

15 4%

1 -

5 3%

6 2%

2 1%

218 54%

111 55%

93 54%

5 1%

3 2%

2 1%

1 1%

6 2%

4 2%

6 1%

1 -

30 8%

28 7%

1 -

19 10%

13 7%

1 -

11 6%

13 8%

104 26%

52 26%

44 26%

3 1%

1 1%

36 9%

11 3%

18 9%

4 2%

16 9%

6 4%

2 1%

4 1%

2 8%

10 6%

1 -

5 3%

2 1%

2 8%

1 1%

2 1%

204 55%

9 45%

5 1%

1 -

30 8%

27 7%

96 26%

1 5%

4 6%

8 5%

2 4%

4 2%

1 1%

2 1%

1 1%

4 3%

10 4%

1 1%

2 1%

4 2%

1 3%

6 4%

4 3%

1 3%

1 1%

10 5%

1 4%

6 4%

4 2%

1 2%

2 1%

1 1%

2 1%

1 2%

96 53%

22 61%

92 54%

2 1%

1 5%

1 2%

3 2%

3 1%

2 2%

1 1%

4 2%

18 9%

9 6%

5 3%

48 31%

3 15%

1 5%

4 17%

16 8%

15 10%

2 11%

5 3%

4 3%

2 10%

2 1%

17 9%

14 8%

51 28%

5 9%

3 5%

10 7%

10 17%

42 28%

3 2%

14 7%

8 14%

5 3%

2 4%

7 5%

12 8%

4 3%

20 9%

18 8%

63 27%

2 9%

10 8%

6 5%

1 -

15 8%

4 19%

32 25%

46 26%

1 4%

2 2%

1 1%

21 9%

3 15%

5 2%

1 4%

12 9%

5 4%

2 5%

9 26%

14 8%

6 18%

4 2%

2 6%

2 5%

13 8%

10 6%

1 3%

2 2%

4 2%

1 1%

2 1%

1 1%

1 2%

1 -

2 1%

1 -

2 2%

3 1%

1 2%

8 6%

1 1%

10 8%

1 1%

1 2%

4 7%

15 7%

12 6%

14 23%

51 25%

2 1%

5 9%

3 5%

21 10% 7 3%

5 4%

4 2%

1 24%

1 1%

136 58%

1 28%

74 50%

2 1%

3 2%

4 2%

2 4%

1 -

26 11%

298 74%

202 50%

151 38%

119 30%

1 1%

2 1%

1 1%

54 13%

17 18%

1 -

1 1%

3 1%

36 12%

26 13%

2 1%

1 1%

2 1%

1 1%

1 -

4 1%

1 1%

4 4%

1 1%

1 -

4 1%

8 2%

1 1%

13 14%

1 1%

3 3%

1 -

2 2%

14 12%

1 1%

6 2%

1 -

169 42%

1 1%

2 1%

170 42%

1 1%

2 1%

4 1%

274 68%

1 1%

1 1% -

101 25%

1 1%

5 1% 4 1%

17 11%

95 24%

2 1%

1 1%

5 2%

2 2%

3 2%

2 2%

3 2%

4 1%

4 2%

2 -

1 1%

1 -

1 1%

2 3%

1 1%

4 2%

1 1%

3 3%

1 -

1 1%

2 2%

1 -

3 2%

1 1%

4 2%

5 5%

5 2%

3 3%

1 1%

8 3%

1 1%

1 -

2 2%

1 1%

7 7%

1 1%

1 -

17 6%

1 -

2 1%

1 1%

2 1%

5 3%

1 1%

3 2%

1 1%

1 -

1 2%

1 1%

4 2%

1 1%

2 1%

1 1%

2 2%

17 12%

1 2%

5 4%

1 -

146 36%

1 1%

6 4%

5 4%

1 1%

7 3%

8 5%

5 3%

21 14%

2 3%

6 2%

6 3%

4 2%

2 1%

1 1%

3 3%

18 6%

1 1%

2 1%

12 16%

2 1%

10 2%

6 7%

1 1%

2 1%

2 2%

24 6%

24 14%

147 37%

2 1%

2 2%

27 16%

71 18%

2 1%

4 2%

4 4%

3 1% -

4 1%

6 2%

1 -

1 1%

2 1%

2 2%

25 15%

1 -

2 2%

3 3%

36 13%

1 1%

9 2% 1 -

21 21%

171 43%

1 1%

3 2%

3 1%

3 2%

1 2%

6 4%

1 1%

11 7%

1 1%

2 1%

M E E T I N G S T R E E T

226

14 8%

1 1%

2 1%

11 6%

1 1%

2 1%

5 6%

R E S E A R C H

23 10%

3 6%

2 1%

1 -

7 5% -

47 12%

72 18%

74 18%

73 18%

196 49%

1 2%

1 1%

2 1%

1 -

5 11%

1 3%

1 1%

1 3%

1 1%

1 1% -

2 1%

7 10%

3 4% -

9 12%

1 2%

4 2%

2 1%

1 1%

1 2%

4 2%

2 1%

1 2%

3 4%

4 2%

1 -

1 2%

5 3%

1 1%

6 4%

3 6%

1 1%

6 4%

1 1%

2 2%

4 2%

30 15%

1 1%

5 3%

24 12%

4 5%

1 2%

1 1%

15 20%

2 1%

4 8%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

4 5%

1 1%

5 3%

1 1%

15 10%

1 1%

4 2%

1 1%

147 37%

3 2%

1 -

2 2%

1 -

4 3%

8 6%

35 24%

2 1%

14 9%

7 5%

PAGE 282

M E E T I N G S T R E E T R E S E A R C H LEADERSHIP SIGNIF IMPACT SOME IMPACT DEVLP PROG USING AUTOMATION OF DEPARTURE OF DEPARTURE =========== ============================== ======================= ======================= PRODNOT SKILL SKILL UCTIV QUAL ENHAN CONS CEO/ MGMT MGR/ -ED CEO/ MGMT MGR/ -ED TOTAL YES NO -ITY -ITY SAFETY -CING AUTO OWNER TEAM SPV WORK OWNER TEAM SPV WORK ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----92 23%

1 28%

66 28%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

400 100%

16 7%

12 25%

1 24%

24 50%

11 5%

1 1%

112 54%

14 11%

2 1%

28 45%

36 30%

5 3%

72 58%

44 26% 16 9%

10 5%

2 2%

69 53%

1 -

3 5%

3 2%

1 -

4 3%

1 1%

11 51%

1 -

1 1%

1 -

130 55%

1 1%

82 54%

1 1%

30 50%

1 -

2 1%

101 56%

1 1%

13 63%

2 1%

85 55%

1 -

1 1%

1 5%

2 1%

5 3%

103 52%

10 3%

5 3%

1 1%

43 22%

2 11%

5 25%

34 9%

1 1%

7 4%

PAGE 281

6 8%

2 2%

2 3%

1 1% 3 1%

7 3%

2 1% -

6 3%

3 2%

6 8%

6 9%

12 6%

11 6%

1 -

1 1%

1 1% 1 -

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-3 QUESTION GREG: Greater MN Regions. BANNER 3

ST. LOUIS NORTHWEST MINNESOTA FOUNDATION ------------------CLEARWATER

HUBBARD MAHNOMEN NORMAN PENNINGTON POLK RED LAKE SOUTHERN MINNESOTA INITIATIVE FOUNDATION --------------------BLUE EARTH BROWN DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR MARTIN

5 2%

12 3%

6 6%

1 1%

15 5% 10 3%

6 3%

5 3%

5 4%

3 3%

4 4%

12 4%

10 6%

8 5%

5 3%

1 -

1 1%

1 -

1 1%

NICOLLET OLMSTED RICE SIBLEY STEELE WABASHA WINONA SOUTHWEST INITIATIVE FOUNDATION -------------------CHIPPEWA

COTTONWOOD KANDIYOHI LAC QUI PARLE MCLEOD MEEKER NOBLES PIPESTONE REDWOOD RENVILLE Continued

5 5%

13 5%

8 5%

11 7%

5 3%

6 4%

1 1%

2 1%

2 2%

1 1%

4 1%

1 -

1 1%

1 -

1 1%

1 -

1 1%

1 -

2 -

1 -

3 1%

1 -

1 1% -

1 -

1 1%

2 1%

3 3%

3 1%

1 1%

2 1%

3 2%

1 1%

3 2%

1 1%

7 5%

2 1%

5 6%

3 1%

1 -

2 1%

7 4%

1 1%

1 1% 1 1% -

7 5%

3 2%

1 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----3 6%

5 6%

6 9%

10 5%

9 5%

1 -

2 3%

1 1%

3 2%

7 3%

5 3%

1 1%

3 1%

1 1%

1 -

1 1%

1 -

3 1%

1 -

51 13%

14 15%

37 12%

28 14%

21 14%

21 18%

15 16%

13 13%

36 13%

14 8%

17 10%

21 13%

8 12%

29 20%

28 19%

23 16%

4 8%

6 8%

5 6%

27 14%

24 12%

5 1%

5 2%

2 1%

3 2%

2 2%

5 2%

2 1%

3 2%

4 3%

3 2%

2 3%

1 1%

3 1%

2 1%

1 1%

2 1%

2 2%

1 1%

2 1%

1 1%

2 1%

3 2%

1 1%

3 1%

2 1%

2 2%

1 1%

2 1%

1 1%

2 2%

4 1%

3 1%

4 1%

3 1% 1 -

2 -

3 1%

7 2% 2 -

3 1%

1 1% -

2 2%

1 1%

3 1% 1 -

1 -

3 1% -

3 1%

4 2%

2 1%

Continued

MOWER

3 2%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

4 1%

2 1% -

3 2%

2 1%

2 2% -

3 2%

4 3%

2 2%

1 1%

3 3%

1 1% -

4 1%

1 1%

1 -

1 1%

3 1%

2 1%

1 1%

3 3%

2 2%

6 2%

2 1%

4 3%

1 1%

2 1%

1 1%

2 1%

1 1%

1 -

1 1%

M E E T I N G S T R E E T

1 1%

R E S E A R C H

3 2% -

3 2%

4 3%

1 1%

2 1%

3 2% -

3 2%

4 3%

1 1%

3 2%

1 1%

1 -

2 1%

1 -

1 1%

3 1%

1 -

5 3%

2 1%

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-3 QUESTION GREG: Greater MN Regions. BANNER 3

6 4%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 283

1 -

4 1%

2 1%

1 1%

3 1%

1 -

2 1%

1 1%

1 -

1 1%

2 1%

1 2% 2 4%

3 1%

2 1%

1 -

1 1%

2 2%

4 1%

2 2%

2 1%

2 2%

2 1%

3 2%

1 1%

2 1%

3 4%

2 1%

1 1%

1 -

1 1%

4 2%

5 3%

1 -

2 1%

1 1%

2 1%

1 -

3 2%

24 6%

7 8%

17 6%

12 6%

8 5%

5 4%

7 7%

8 8%

16 6%

12 7%

13 8%

10 6%

6 8%

6 4%

7 5%

8 5%

4 1%

2 2%

2 1%

1 1%

2 2%

3 1%

2 1%

1 1%

1 2%

2 2%

1 -

1 1%

3 3%

1 -

2 -

1 1%

1 -

3 2%

1 -

1 1%

1 -

1 1%

4 2%

1 -

1 1%

5 2%

2 1%

1 1%

2 2%

1 1%

1 -

7 2%

3 1%

1 1%

1 -

1 1%

4 1%

1 -

1 2%

2 1%

1 -

1 1%

2 1%

1 1%

2 1%

1 -

2 1%

2 2%

1 -

1 1%

2 2%

3 1%

1 1%

2 2%

3 1%

2 -

1 -

2 2%

4 1%

1 -

1 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

2 1%

3 3%

1 1%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

2 1%

6 2% 1 -

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 284

1 1%

5 2%

2 1%

4 2%

1 1%

2 1%

1 -

1 1%

1 1% -

1 1%

1 -

2 1%

1 -

2 1%

1 -

1 1%

1 -

227

M E E T I N G S T R E E T

1 1%

R E S E A R C H

1 -

1 1%

2 1%

1 1% -

1 -

5 3%

1 1%

2 1%

1 1%

3 4%

5 7%

2 1%

1 1%

3 2%

5 7%

2 1%

1 1%

2 3%

1 2%

1 1%

1 -

2 4%

1 1%

1 -

2 1%

10 5%

14 7%

2 1%

1 -

3 4%

1 1%

1 2%

2 1%

5 3%

1 -

1 1%

1 -

1 1%

2 1% 1 -

1 -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-3 QUESTION GREG: Greater MN Regions. BANNER 3

SWIFT WEST CENTRAL INITIATIVE ----------------------CLAY

DOUGLAS OTTER TAIL POPE WILKIN NONE ----

ANOKA CARVER DAKOTA HENNEPIN RAMSEY SCOTT WASHINGTON

1 1%

1 -

BASE=TOTAL SAMPLE IF INITIATIVE FOUNDATION -----------------------BENTON

CASS CHISAGO CROW WING ISANTI KANABEC MILLIE LACS MORRISON PINE SHERBURNE STEARNS TODD WRIGHT NORTHLAND FOUNDATION -------------------CARLTON

COOK ITASCA Continued

1 1%

17 4%

4 4%

12 4%

10 5%

8 5%

7 6%

6 1%

1 1%

4 1%

1 1%

2 1%

1 1%

2 1%

1 1%

2 1% 6 2% 1 -

1 1% 1 2%

1 1%

1 -

5 2% -

1 1% 4 2% 1 -

1 1% 4 3% -

1 1%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----1 1%

1 1%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- ----1 2%

1 1%

1 -

6 6%

2 2%

9 3%

6 3%

6 4%

7 4%

5 7%

10 7%

8 6%

3 6%

1 1%

3 4%

2 3%

10 5%

6 3%

1 1%

2 1%

2 3%

4 2%

1 1%

2 1%

2 5%

1 1%

3 4%

2 3%

2 1%

1 1%

2 1%

1 -

1 1%

1 -

1 1%

1 1% 3 3% -

1 1%

3 3% -

1 1% -

1 -

4 1% 1 -

1 1%

1 -

2 1% -

3 2% -

1 1% 2 1% 1 -

1 -

1 2%

1 -

2 2% -

4 3%

1 1%

1 1% 3 2%

1 1%

1 -

4 3% -

1 2%

1 1%

1 -

5 2%

1 -

1 1% -

218 54%

43 47%

169 57%

114 56%

84 55%

62 52%

50 52%

45 44%

147 54%

92 54%

84 50%

93 54%

35 49%

74 50%

80 55%

79 54%

31 66%

46 64%

47 64%

40 55%

106 54%

5 1%

4 1%

3 2%

4 3%

1 1%

2 2%

4 2%

3 2%

2 1%

4 2%

1 1%

2 1%

1 1%

1 2%

1 1%

4 2%

30 8%

28 7%

104 26%

36 9%

3 1%

11 3%

4 4%

5 6%

26 9%

21 7%

24 26%

79 27%

3 1%

9 9%

1 1%

28 9% 8 3%

16 8%

14 7%

8 5%

56 28%

46 30%

1 1%

18 9% 7 4%

14 9% 3 2%

10 9%

8 7%

32 27%

7 6%

3 3%

8 8%

6 6%

3 3%

10 10%

6 6%

26 27%

1 1%

18 7%

23 8%

19 18%

65 24%

1 1%

2 1%

2 2%

26 9% 9 3%

12 7%

9 5%

10 6%

9 5%

48 29%

44 26%

50 29%

1 1%

16 9%

4 2%

15 9% 4 2%

3 4%

1 2%

10 7%

12 8%

23 32%

34 23%

1 1%

6 9%

11 7%

2 3%

4 3%

14 10%

12 9%

17 12%

7 5%

8 17%

8 12%

4 9%

7 10%

6 9%

11 16%

9 12%

8 10%

35 24%

36 24%

14 29%

18 26%

21 28%

1 1%

1 2%

2 3%

11 7% 5 4%

13 9% 4 3%

3 7%

9 12%

1 1%

3 4%

1 1%

13 7%

16 8%

17 9%

12 6%

14 20%

55 28%

44 22%

1 2%

1 1%

2 1%

16 8%

2 3%

20 10%

4 2%

7 4%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-4 QUESTION GREG: Greater MN Regions. BANNER 4

1 1%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 285

PAGE 286

NAVIGATE AROUND ATTRACT EMPLOYEES NAVIGATE WORKER SHORTAGE GREATEST EMPLOYEE NEED WORKER SHORTAGE ================= ============================== ======================= =============================== M E E T I N G S T R E E T R E S E A R C H TOTAL ACCEL DEVLP LEAN TECH/ MAX AGGRES WORK VERY TOTAL NOT AUTOM CURR OUT- PROC NO TECH/ PROD INCR TRAIN -SIVE TECH TOTAL DIFF DIFF DIFF -ATE EMP SOURCE -ESS OTHER ENTRY EXP EXP COLL+ -UCT COMP INTERN MKTG COLL ----- ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ------ ------ ----400 100%

87 22%

285 71%

103 26%

43 11%

144 36%

83 21%

54 13%

12 13%

39 14%

13 13%

7 16%

20 14%

10 12%

1 -

1 1%

3 1%

1 -

2 2%

5 1%

1 2%

4 1%

1 1%

6 2%

4 1%

3 3%

1 -

1 1%

1 -

4 1%

2 1%

2 1% 1 -

1 -

2 3%

4 1%

1 -

1 1%

3 2%

2 3%

3 2%

1 1%

1 3%

1 3% -

1 1%

5 2%

4 3%

2 4%

4 3%

1 -

1 1%

1 -

10 2%

3 4%

24 6%

9 11%

1 -

2 -

1 1%

7 3%

2 2%

8 3%

1 1%

1 -

1 1%

16 5% 1 -

7 7% -

2 4%

1 1%

2 2%

1 1%

8 2%

9 2%

151 38%

1 -

1 1%

2 2%

4 2%

1 1%

4 3%

1 1%

2 2%

3 3%

1 1%

2 4%

1 12%

1 1%

4 4%

3 2%

1 1%

3 3%

4 3%

1 1%

8 7% -

M E E T I N G S T R E E T

228

3 3% -

7 8% -

1 1%

214 54%

5 11%

10 2%

18 12%

2 2%

149 37%

12 13%

2 2%

93 23%

19 15%

5 4%

122 31%

1 12%

1 2%

1 1%

7 2%

3 8%

1 1%

7 5%

42 11%

27 13%

1 1%

128 32% 16 12% -

1 1%

3 2%

2 2%

1 1%

4 2%

2 1%

3 2%

R E S E A R C H

6 3%

7 3%

13 6% 1 -

1 -

1 1%

4 2%

5 3%

8 5% -

1 1%

4 3%

9 7% -

2 1%

2 2%

1 1%

2 2%

1 1%

1 2%

5 4%

3 2%

2 2%

1 1%

77 19%

16 14%

1 1%

114 28%

24 20% 1 1%

1 1%

2 2%

120 30%

24 12% 1 1%

1 1%

2 2%

191 48%

3 1%

12 12%

1 1%

106 27%

1 1%

4 3%

7 5%

15 12%

1 1%

125 31%

20 13%

FUTURE CHALLENGES ============================== ATTUNFAV RACT BIZ WORK- HLTH RISING CLIM LOWER FORCE COSTS COSTS -ATE SALES ----- ----- ------ ----- -----

3 1%

3 1% -

1 1%

5 10%

1 2%

1 1%

1 -

1 1%

8 7% -

1 1%

5 5%

4 3% -

1 1%

5 3%

10 5% -

1 -

4 3%

5 4% -

1 1%

1 2%

1 1%

5 4% -

1 1%

3 2%

5 4%

1 3%

4 3%

3 2%

1 3%

6 3%

4 3%

1 3%

3 3%

4 2%

4 3%

3 3%

46 12%

7 8%

4 5%

1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-4 QUESTION GREG: Greater MN Regions. BANNER 4

ST. LOUIS NORTHWEST MINNESOTA FOUNDATION ------------------CLEARWATER

HUBBARD MAHNOMEN NORMAN PENNINGTON POLK RED LAKE SOUTHERN MINNESOTA INITIATIVE FOUNDATION --------------------BLUE EARTH

BROWN DODGE FARIBAULT FILLMORE FREEBORN GOODHUE LE SUEUR

4 1% 1 -

1 2 -

1 -

3 1%

8 9%

3 3%

14 5% 10 4%

1 -

6 5%

2 2%

3 1%

1 1%

1 -

1 1%

1 -

MARTIN MOWER NICOLLET OLMSTED RICE SIBLEY STEELE WABASHA WINONA SOUTHWEST INITIATIVE FOUNDATION -------------------CHIPPEWA

COTTONWOOD KANDIYOHI LAC QUI PARLE MCLEOD MEEKER NOBLES PIPESTONE REDWOOD Continued

7 5%

1 1%

2 1%

1 1%

1 2%

3 1%

1 -

7 5%

1 2%

1 -

1 1%

2 2% -

1 1%

3 2%

5 11%

6 5%

1 1%

1 13%

6 7%

4 3%

3 3% -

1 1%

5 4% -

2 1%

1 1%

2 1%

1 1%

7 5%

10 5%

7 5%

9 7%

7 6%

3 3%

8 4%

5 4%

3 4%

1 2%

1 -

1 1%

1 -

1 1%

2 2%

9 4%

6 4%

4 2%

1 -

1 1%

1 -

1 1%

1 -

2 1%

4 3%

1 1%

2 1%

3 1%

1 1%

2 2%

1 -

3 2%

1 1%

6 6%

4 5%

3 6%

1 1%

2 2%

3 6%

1 1%

2 2%

51 13%

7 8%

43 15%

7 6%

6 13%

19 13%

11 13%

7 18%

14 12%

10 11%

26 17%

30 14%

16 11%

16 12%

14 11%

17 16%

27 14%

15 12%

15 13%

12 16%

8 18%

5 1%

2 2%

5 2%

3 2%

2 4%

1 1%

4 2%

3 1%

4 3%

2 1%

3 2%

3 3%

4 2%

1 1%

2 2%

1 2%

1 1%

1 2%

1 1%

1 2%

4 3%

1 1%

3 3%

1 1%

4 1%

3 1% 1 -

2 -

3 1%

7 2% 2 -

4 1%

2 4%

1 1%

1 2%

1 1%

3 1%

1 -

1 1%

1 2%

5 2%

1 1%

3 1%

2 1%

2 2%

3 2%

4 3%

2 3%

1 1%

2 1%

1 1%

5 4%

4 3%

3 1%

1 -

2 2% -

1 1% -

2 1%

1 1%

2 1%

1 -

2 1%

1 1%

3 1%

1 1%

2 2%

1 -

2 2%

1 1%

4 4%

2 4%

1 -

2 2%

1 1%

2 2%

2 1%

2 2%

5 3%

1 1%

M E E T I N G S T R E E T R E S E A R C H 2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Continued Table 52-4 QUESTION GREG: Greater MN Regions. BANNER 4

PAGE 287

1 2%

PAGE 288

3 1%

2 1%

4 1%

1 1%

1 -

6 2%

3 1% 2 -

4 1%

1 1% -

1 1%

2 1%

1 1%

2 1%

1 1%

2 1%

1 2%

2 1%

1 1%

1 2%

1 -

5 2%

2 1%

4 1%

1 1%

2 2% -

1 2%

2 3%

2 2% -

3 6%

1 1%

1 2%

1 1%

2 2%

1 1%

2 1%

1 1%

2 1%

1 1%

2 2%

2 1%

1 1%

1 -

3 2%

3 1%

2 1%

2 2%

1 1%

2 2%

1 1%

2 2%

4 2%

2 1% -

5 3% 1 -

1 -

2 1%

3 2% -

1 1%

3 2%

2 2%

1 1%

1 1% 1 -

1 1%

2 2%

1 -

1 1%

5 2%

2 2%

1 -

4 2%

1 1%

2 2%

1 1%

3 3%

2 3%

1 2%

1 1%

2 1%

1 1%

2 2% 1 -

2 4%

1 2% -

24 6%

6 7%

17 6%

7 7%

2 5%

7 5%

6 7%

4 10%

9 8%

2 2%

12 8%

1 12%

12 6%

11 7%

7 6%

10 8%

7 7%

13 7%

7 6%

10 9%

5 6%

2 5%

4 1%

2 2%

2 1%

2 2%

1 3%

1 1%

1 3%

2 2%

1 1%

1 12%

2 1%

1 1%

2 2%

1 1%

3 3%

4 2%

2 2%

1 1%

1 -

1 1%

1 -

1 1%

7 2%

2 3%

4 2%

3 2%

3 3%

2 2%

3 2%

1 -

1 1%

1 -

3 2%

3 4%

1 -

1 1%

2 -

1 -

3 1%

1 -

1 1%

1 1% -

6 2%

3 1% 1 -

1 1%

1 3%

2 5%

1 1%

3 2%

1 1%

2 2%

1 1%

M E E T I N G S T R E E T

229

4 3% -

2 1%

1 -

R E S E A R C H

2 1%

1 1%

2 2%

1 1%

2 2%

1 1%

2 2%

1 1%

1 1% -

3 3%

2 3%

1 1%

1 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-4 QUESTION GREG: Greater MN Regions. BANNER 4

RENVILLE SWIFT WEST CENTRAL INITIATIVE ----------------------CLAY

DOUGLAS OTTER TAIL POPE WILKIN NONE ----

ANOKA

CARVER DAKOTA HENNEPIN RAMSEY SCOTT WASHINGTON

2 -

1 -

1 1%

17 4%

4 5%

15 5%

2 2%

6 1%

1 1%

5 2%

1 1%

2 1%

1 1%

1 -

1 1%

BASE=TOTAL SAMPLE IF INITIATIVE FOUNDATION -----------------------BENTON

CASS CHISAGO CROW WING ISANTI KANABEC MILLIE LACS MORRISON PINE SHERBURNE STEARNS TODD WRIGHT NORTHLAND FOUNDATION -------------------CARLTON

COOK ITASCA

Continued

1 1%

2 4%

9 6%

3 4%

3 7%

2 2%

3 4%

1 2%

1 2% -

1 1%

6 2%

2 2%

5 2%

1 1%

1 2%

5 3%

1 -

1 2%

2 1%

1 1%

2 1%

218 54%

46 53%

145 51%

64 62%

5 1%

1 1%

3 1%

2 2%

104 26%

25 29%

74 26%

26 25%

1 1%

2 1%

1 1%

30 8%

28 7%

5 6%

3 4%

36 9%

10 12%

11 3%

1 1%

3 1%

21 7%

13 5%

24 9%

7 3%

9 9%

12 12% 10 9%

4 4%

1 -

1 2%

1 3%

1 1%

7 4%

2 2%

2 1%

1 1% 56 61%

74 49%

1 1%

3 2%

4 4%

26 60%

75 52%

50 60%

20 47%

5 75%

60 49%

1 2%

2 1%

1 1%

1 3%

1 1%

15 34%

40 28%

26 31%

1 1%

5 11% 2 5%

3 8% -

6 4%

10 7%

14 9% 2 1%

6 7%

4 5%

6 14%

1 2%

4 61%

5 6%

4 10%

6 7%

1 2%

7 16% -

2 1%

9 4%

7 5%

3 1%

2 1%

1 -

1 1%

9 7%

2 2%

7 6%

1 1%

8 8%

2 1%

10 5%

1 1%

7 5%

7 6%

1 1%

1 2%

2 4%

3 2%

2 2%

4 3%

4 2%

5 2%

4 3%

1 1%

1 -

1 1%

7 5%

31 34%

37 25%

2 1%

6 5%

10 10%

6 5%

1 1%

M E E T I N G S T R E E T

1 1%

1 -

54 13% 3 1% 1 -

5 1%

4 1%

212 53%

145 36%

108 27%

1 -

1 1%

3 2%

33 16% 1 1%

1 1%

2 1%

20 14% 1 1%

4 3%

2 2%

92 23%

79 20%

1 2%

1 -

1 1%

1 2%

1 1%

2 1%

2 2%

1 2%

1 -

1 1%

8 2%

9 2% 1 -

10 2%

4 2%

5 3% 1 -

5 2%

5 3%

1 1%

67 52%

68 55%

57 53%

104 54%

61 51%

55 49%

43 56%

24 52%

3 2%

1 1%

2 1%

1 1%

4 44%

59 28%

45 30%

1 1%

2 22% -

2 23%

1 1%

18 8%

11 5%

17 8%

5 2%

10 7%

8 5%

9 7%

8 6%

9 7%

6 5%

7 7%

5 5%

16 8%

11 6%

34 27%

37 30%

34 32%

54 28%

2 2%

2 1%

14 9%

13 10%

4 3%

3 2%

12 9%

3 2%

6 6%

1 1%

9 7%

8 7%

1 -

1 1%

1 -

1 1%

1 2%

5 2%

1 1%

1 2%

1 1%

4 2%

2 3%

1 1%

1 -

2 1%

1 2%

3 5%

4 1%

1 3%

6 2%

6 12%

2 1%

2 4%

1 2%

1 -

4 1%

2 1%

4 7%

2 4%

1 2%

8 15%

1 1%

1 -

1 2%

3 3%

3 5%

7 2%

19 6% 1 -

2 1%

3 3%

5 6% -

1 1% -

1 1%

4 6% -

1 1%

M E E T I N G S T R E E T

230

2 2%

2 1%

1 2%

5 3%

1 1%

6 7% -

8 5%

1 1% -

4 4%

1 2%

5 5% -

R E S E A R C H

9 3%

6 2%

20 6% 1 -

1 -

2 1%

5 9%

7 2%

2 3%

1 -

1 1%

3 3%

5 3%

6 2%

5 3%

3 1%

1 1%

54 100%

1 1%

1 -

1 2%

1 1%

54 10%

4 8%

2 2%

3 4%

7 8%

43 11%

6 2%

2 2%

5 4%

48 15%

2 3%

3 2%

13 15%

3 3%

1 1%

25 17%

4 5%

4 1%

320 80%

9 11%

1 -

87 22%

6 9%

1 3%

4 8% -

9 8% 4 4%

5 7% 5 7%

28 23%

25 22%

24 32%

1 1%

2 2%

15 8%

14 11%

4 2%

1 1%

9 8%

5 5%

1 2% 3 6%

13 27%

3 4%

6 13%

4 5%

1 2%

PAGE 290

1 2%

3 3%

1 -

1 1%

2 1%

83 55%

14 9%

154 39%

1 1%

1 2%

114 53%

R E S E A R C H

82 20%

1 2%

9 88%

3 3%

11 8%

2 -

2 2%

1 2%

1 1%

16 7% 1 -

4 3%

24 6% 1 -

1 1%

3 3%

2 1%

1 1%

16 20%

1 2%

1 1%

38 12%

1 1%

1 -

62 16%

12 17%

1 1%

81 20%

13 16%

6 3%

2 1%

319 80%

12 13%

6 2%

2 1%

71 18%

13 12%

4 4%

2 2%

3 7%

1 1%

2 2%

10 7%

3 4%

1 1%

2 2%

2 1%

1 1%

4 3%

1 1%

3 2%

1 1%

1 -

2 1%

5 5%

1 1%

14 12%

1 14%

2 1%

9 10%

22 18%

1 -

9 8%

1 1%

2 3%

1 1%

8 7%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-5 QUESTION GREG: Greater MN Regions. BANNER 5

PAGE 289

1 3%

9 17%

100 19%

51 10%

100 19%

218 42%

50 50%

2 2%

10 18%

1 1%

5 5%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-5 QUESTION GREG: Greater MN Regions. BANNER 5

KOOCHICHING LAKE ST. LOUIS NORTHWEST MINNESOTA FOUNDATION ------------------BELTRAMI

CLEARWATER HUBBARD KITTSON LAKE OF THE WOODS MAHNOMEN MARSHALL NORMAN PENNINGTON POLK RED LAKE ROSEAU SOUTHERN MINNESOTA INITIATIVE FOUNDATION --------------------BLUE EARTH

BROWN

20 5%

14 7%

10 7%

4 3%

DODGE

FILLMORE FREEBORN GOODHUE LE SUEUR MARTIN MOWER NICOLLET OLMSTED RICE SIBLEY STEELE WABASHA WINONA SOUTHWEST INITIATIVE FOUNDATION -------------------CHIPPEWA

COTTONWOOD JACKSON Continued

7 8%

3 3%

17 5%

4 3%

2 2%

4 5%

9 3%

3 3%

4 1%

2 1%

2 2%

1 1%

3 1%

1 1%

1 -

1 1%

1 -

1 1%

2 -

1 1% -

1 -

2 1%

1 1%

2 1%

3 1%

2 1%

51 13%

23 11%

24 17%

5 1%

4 2%

3 2%

1 -

4 1%

4 2%

1 1%

1 -

2 3%

2 2%

6 7%

3 3%

3 4%

5 3%

1 -

4 4%

8 4%

6 6%

2 3%

1 1%

4 1%

1 1% -

1 1%

1 -

1 1%

5 6%

21 13%

14 16%

1 1%

2 2%

1 1%

3 1%

2 2%

2 3%

3 2%

4 1%

1 1%

2 2%

11 17%

M E E T I N G S T R E E T

2 1%

1 -

2 2%

8 8%

11 11%

38 12%

5 11%

7 7%

3 1%

3 3%

R E S E A R C H

2 1%

1 1%

7 7%

1 1%

10 13%

41 13%

1 1%

7 10%

2 2%

11 14%

1 1%

15 16%

1 -

16 15%

1 1%

1 -

3 3%

2 1%

2 3%

50 50%

2 2%

39 39%

1 1%

10 3%

3 3%

5 5%

4 8%

1 1%

17 5%

6 4%

Continued

FARIBAULT

12 3%

51 100%

5 9%

4 7%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-5 QUESTION GREG: Greater MN Regions. BANNER 5

PAGE 291

PAGE 292

2 1%

2 -

2 1%

7 2%

2 1%

3 3%

2 3%

4 1%

2 3%

3 1%

3 2%

1 1%

3 1%

1 -

1 1%

1 -

3 1%

2 2 -

1 1%

2 2%

1 1%

2 2%

1 1%

2 2%

2 1%

1 1%

1 -

3 2%

1 1%

2 2%

1 -

3 1%

2 1%

1 1%

2 1%

1 1%

4 1%

1 1%

4 1%

1 1%

3 4%

1 -

2 1%

3 3%

1 -

2 -

1 1%

2 2%

3 1%

1 1%

2 1% 4 3%

2 1%

1 1%

3 1% 2 1%

2 2%

4 1% 6 2%

1 1%

1 -

1 1%

1 2%

1 1%

4 3%

1 1%

3 1%

2 1%

2 5%

1 1%

3 1%

1 1%

4 2%

3 2%

1 1%

2 2%

1 1%

1 2%

1 1%

2 2%

1 1%

2 -

3 1%

2 1%

1 2%

2 2%

1 -

5 1%

1 -

1 1% -

1 -

2 1%

2 2%

4 1%

1 -

2 2%

5 1%

3 1%

3 3%

2 4%

1 2% -

3 5%

6 13%

3 7%

6 7%

4 7%

5 6%

10 6%

4 4%

22 7%

2 5%

4 1%

1 1%

2 1%

1 1%

4 5%

3 4%

2 1%

2 3%

1 2%

2 3%

1 1%

3 1%

1 3%

M E E T I N G S T R E E T

231

1 1% -

R E S E A R C H

1 -

1 2%

2 4%

18 6%

1 -

5 5%

4 6%

4 5%

6 7%

50 50%

6 6%

9 6%

4 7%

13 6%

1 -

4 8%

24 6%

1 -

2 4%

1 2%

2 1%

2 4%

3 5%

4 1%

2 4%

7 13%

1 2%

1 -

3 6%

1 1%

2 2%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-5 QUESTION GREG: Greater MN Regions. BANNER 5

KANDIYOHI LAC QUI PARLE LINCOLN LYON MCLEOD MEEKER MURRAY NOBLES PIPESTONE REDWOOD RENVILLE ROCK SWIFT YELLOW MEDICINE WEST CENTRAL INITIATIVE ----------------------BECKER CLAY DOUGLAS GRANT

1 -

7 2%

1 -

5 2%

3 1%

2 1%

1 -

2 -

3 2% -

2 2%

1 1%

3 3% -

1 -

1 1%

1 -

1 1%

17 4%

9 4%

11 7%

1 1%

2 1%

1 -

1 1%

1 -

2 -

6 1%

3 1%

4 3%

1 1%

OTTER TAIL

STEVENS TRAVERSE WILKIN NONE ----

ANOKA CARVER DAKOTA

HENNEPIN RAMSEY SCOTT WASHINGTON

2 2% -

1 -

1 2%

1 1%

6 2%

1 1%

1 -

2 2%

1 -

2 1%

1 -

3 4%

4 6%

14 4%

3 4%

1 1%

1 -

1 1%

3 3%

1 2% -

4 1% -

1 2% -

1 2%

1 1%

3 2%

1 -

2 2%

6 2%

1 1%

2 2%

3 1%

1 1%

1 -

6 6%

2 1%

1 1%

1 2%

1 1%

2 1%

1 1%

5 7%

4 5%

1 1%

2 2%

M E E T I N G S T R E E T

1 1%

2 1%

1 1%

2 1%

3 1% -

1 3%

2 2%

3 3%

1 1%

5 5%

2 2%

50 50%

2 2%

1 1%

8 8%

3 3%

1 1%

3 7%

10 3%

1 2%

12 12%

2 2%

2 1%

1 1%

7 4%

4 4%

1 3%

2 1%

1 1 -

8 8%

12 12%

3 3%

R E S E A R C H

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 52-5 QUESTION GREG: Greater MN Regions.

POPE

2 1%

1 1%

1 -

Continued

BANNER 5

PAGE 293

PAGE 294

5 2%

2 1% -

1 -

218 54%

30 8% 5 1%

28 7%

1 -

110 52%

13 6% 2 1%

16 8%

3 2%

2 1% -

1 1%

66 45%

8 6%

11 7%

2 3%

2 2% -

64 59%

44 48%

2 2%

7 6%

11 10%

5 5%

3 3%

2 3%

32 30%

23 26%

28 36%

3 1%

1 1%

11 3%

8 4%

3 2%

8 8%

2 2%

8 8%

3 3%

4 5%

34 23% 10 7%

40 56%

4 5%

50 24% 17 8%

1 1%

43 55%

104 26% 36 9%

1 2%

9 13% 1 2%

5 2%

1 1%

3 5%

2 1% -

1 -

180 56% 25 8%

5 2%

23 7%

18 26%

87 27%

1 1%

3 1%

5 6%

7 10%

2 3%

1 2%

38 47% 5 6%

5 6%

1 1%

2 3%

1 2%

2 2%

2 3%

9 3%

52 63%

5 8%

19 30%

8 10%

3 2%

34 54%

18 22%

28 9%

1 2%

7 9%

3 1%

1 1%

79 51%

46 53%

2 1%

1 1%

14 9%

11 7%

4 5%

7 8%

36 23%

27 31%

1 1%

14 17%

1 2%

4 5%

M E E T I N G S T R E E T

11 7%

4 3%

1 -

17 21%

5 9%

232

1 -

172 54%

29 9%

5 2%

23 7%

1 3% -

3 1%

2 2%

9 3%

R E S E A R C H

3 8%

2 5%

14 14%

1 1%

4 4%

1 1%

218 100%

3 7%

1 3%

26 60%

16 38%

33 10%

70 22%

5 6%

1 1% -

30 14% 5 2%

28 13%

104 48%

36 17%

11 5%

3 1%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 53-1 Date./Sample. BANNER 1

BASE=TOTAL SAMPLE DATE ----

WED, MAR 6

THU, MAR 7 FRI, MAR 8 SAT, MAR 9 MON, MAR 1 TUE, MAR 1 WED, MAR 1 THU, MAR 1 FRI, MAR 1 MON, MAR 1 TUE, MAR 1 WED, MAR 2 SAMPLE ------

SAMPLE A

SAMPLE B

140 35%

87 22%

48 12%

43 11%

82 20%

228 57%

172 43%

166 42%

108 27%

101 25%

202 51%

117 29%

79 20%

91 23%

97 24%

60 15%

46 12%

100 25%

299 75%

157 39%

107 27%

33 8%

77 19%

4 1%

1 1%

1 3%

1 1%

2 1%

3 2%

1 1%

4 2%

1 1%

1 2%

3 3%

1 -

3 2%

1 1%

43 11% 30 8%

5 1%

26 7%

41 10%

50 13%

7 5%

12 14%

6 13%

4 10%

14 17%

19 8%

24 14%

26 16%

9 8%

6 6%

28 14%

11 9%

4 5%

1 1%

5 2%

2 1%

1 1%

2 2%

3 1%

2 2%

8 6%

13 15%

8 5%

15 17%

14 10%

9 11%

4 3%

11 8%

6 13%

3 3%

4 7%

22 16%

50 13%

16 11%

17 19%

26 6%

18 13%

198 49%

76 54%

51 13%

202 51%

7 5%

27 19%

64 46%

2 5%

9 10%

42 11% 32 8%

4 7%

4 4%

3 6%

4 9%

7 14%

BASE=TOTAL SAMPLE DATE ----

WED, MAR 6 THU, MAR 7

FRI, MAR 8 SAT, MAR 9 MON, MAR 1 TUE, MAR 1 WED, MAR 1 THU, MAR 1 FRI, MAR 1 MON, MAR 1 TUE, MAR 1 WED, MAR 2 SAMPLE ------

SAMPLE A

SAMPLE B

2 5%

13 31%

5 11%

5 7%

22 10%

11 13%

23 10%

25 11%

7 8%

32 14%

27 16%

18 10%

17 10%

7 7%

5 5%

14 13%

16 16%

11 10%

8 8%

11 7%

11 11%

17 17%

21 13%

16 15%

10 10%

10 5%

100 49%

43 53%

108 47%

95 55%

79 48%

57 53%

54 53%

4 11%

1 1%

1 2%

3 3%

2 1%

3 2%

2 2%

10 11%

19 16%

47 47%

24 56%

12 11%

6 7%

26 13%

51 47%

39 47%

21 13%

14 15%

87 52%

19 44%

29 10%

3 3%

7 8%

18 22%

78 45%

20 42%

13 13%

9 12%

9 7%

11 9%

120 53%

44 50%

9 9%

5 12%

16 14%

14 7%

22 11%

6 6%

5 9%

25 12%

16 16%

8 5%

10 10%

9 10%

6 7%

14 13%

8 5%

5 5%

5 6%

4 5%

8 6%

20 12%

18 8%

10 9%

13 7%

25 13%

19 11%

18 11%

14 9%

15 8%

31 14%

5 6%

22 13%

8 5%

20 12%

7 7%

6 7%

28 58%

4 2%

21 12%

16 9%

9 11%

5 11%

10 5%

9 5%

8 20%

5 13%

43 50%

20 9%

9 12%

8 17% 3 6%

21 9%

2 2%

13 16%

4 5%

16 8%

103 51%

9 10%

3 3%

7 7%

6 9%

5 10%

4 6%

2 5%

10 10%

12 21%

4 8%

7 7%

4 7%

13 14%

9 15%

10 10% 3 3%

4 9%

11 11%

3 4%

7 16%

5 5%

20 7%

23 8%

30 10%

12 8%

9 6%

12 11%

9 6%

12 11%

41 14%

20 13%

10 10%

22 7%

16 10%

8 8%

12 13%

5 6%

10 11%

16 16%

7 11%

6 13%

17 17%

34 11%

23 15%

8 7%

8 10%

7 8%

6 9%

2 4%

8 8%

17 6%

8 5%

58 49%

39 49%

52 54%

32 53%

20 43%

51 52%

10 8%

17 14%

12 15%

59 51%

40 51%

15 16%

44 48% 47 52%

12 13%

45 46%

4 6%

28 47%

3 7%

7 15%

26 57%

7 7%

48 48%

43 14%

145 48%

154 52%

7 7%

15 10%

9 9%

37 12%

10 9%

M E E T I N G S T R E E T

FUTURE OF FIRM ======================= TOTAL VERY SMWT TOTAL NOT TOTAL CONF CONF CONF CONF ----- ----- ----- ----- ----400 100% 4 1%

43 11%

201 50% 2 1%

4 1%

21 5%

196 49%

155 39%

21 5%

3 2%

1 1%

181 45%

2 1%

59 15%

150 37%

2 1%

236 59%

3 1%

22 6%

129 32% 1 1%

181 45% 2 1%

36 9% -

172 43%

123 31%

62 15%

2 1%

1 1%

29 15%

9 6%

4 20%

18 10%

8 13%

18 12%

25 11%

2 9%

15 12%

21 12%

4 11%

16 10%

3 1%

2 1%

5 1%

3 1%

2 1%

4 2%

1 1%

4 2%

1 1%

4 2%

1 -

26 7%

7 4%

17 9%

16 9%

20 12%

23 6%

4 17%

37 10%

3 13%

4 12%

17 11%

14 13%

6 19% 1 4%

9 11%

80 51%

58 54%

17 50%

34 44%

76 49%

7 7%

49 46%

12 6%

10 5%

21 11%

14 9%

12 8%

2 9%

16 10%

1 4%

11 6%

2 3%

13 7%

6 10%

15 8%

5 8%

16 11% 7 5%

18 12%

22 9%

2 9%

10 4%

3 13% 2 8%

25 11%

3 12%

6 5%

11 9%

16 9%

2 6%

15 9%

8 7%

19 15%

20 11%

3 8%

26 15%

16 13%

9 14%

26 12%

8 17%

6 5%

14 8%

4 11%

14 8%

7 6%

8 13%

17 8%

2 4%

6 18%

13 7%

13 11%

5 8%

3 5%

32 8%

17 9%

13 7%

30 8%

2 11%

17 9%

14 9%

15 8%

6 11%

11 7%

23 10%

2 7%

23 13%

10 16%

29 12%

5 24%

15 11%

23 13%

5 15%

21 12%

23 19%

8 13%

81 45%

34 57%

114 48%

12 56%

64 50%

83 46%

23 65%

84 49%

66 53%

26 42%

50 13%

30 15%

17 10%

47 13%

2 10%

26 13%

26 6%

12 6%

11 7%

23 6%

3 13%

8 4%

183 49%

13 62%

198 49%

202 51%

95 47%

106 53%

88 51% 83 49%

49 13%

189 51%

1 4%

8 38%

14 9%

6 27%

26 14%

16 10%

10 6%

25 13%

17 11%

95 49%

73 47%

101 51%

82 53%

5 22%

12 56% 9 44%

100 55%

5 8%

11 7%

24 10%

4 7%

19 13%

29 12%

5 8%

11 7%

14 6%

25 43%

18 12%

77 51% 73 49%

M E E T I N G S T R E E T

233

122 52%

2 9% -

2 8%

10 44%

12 9%

19 15% 10 8%

65 50%

R E S E A R C H

20 11%

24 13% 9 5%

98 54%

4 11%

2 6% 2 5%

12 35%

15 9%

22 13%

15 9%

87 51%

2 2%

2 1%

9 7%

14 12%

9 8%

58 47%

8 14%

9 4%

2 4%

4 11%

22 12%

14 7%

5 3%

14 10%

2 1%

148 37%

3 1%

29 12%

25 14%

1 2%

3 1%

19 13%

2 1%

233 58%

3 1%

4 6%

9 16%

22 14%

49 12%

1 1%

12 10%

18 10%

16 8%

208 52%

1 1%

12 7%

4 18%

17 10%

43 56%

18 12%

18 11%

32 16%

16 50%

12 16%

1 30%

26 13%

51 13%

6 7%

22 10%

3 13% 3 15%

4 6%

7 14%

47 13% 37 10%

6 18%

27 13%

17 10% 15 9%

12 15%

11 14%

6 10%

30 15% 22 11%

4 13%

9 8%

50 13% 42 11%

9 12%

1 4%

29 8%

1 4%

41 11%

19 11%

4 5%

PAGE 296

24 14%

10 5%

41 10%

2 1%

372 93%

1 3%

6 6%

R E S E A R C H

18 9%

30 8%

5 1%

171 43%

5 7%

3 10%

10 9%

6 7%

2 7%

13 12%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 53-2 Date./Sample. BANNER 2

PAGE 295

24 12% 24 12%

6 10%

29 14%

3 5%

13 6%

36 58%

3 7%

16 7%

17 8%

26 11%

15 10%

18 12%

18 8%

1 18%

10 7%

23 10%

10 20%

30 13%

18 12%

17 11%

16 7%

8 6%

119 51%

1 24%

6 13%

29 12%

102 49%

26 54%

23 46%

8 6%

1 24%

19 9%

106 51%

12 8%

31 13%

3 7%

3 5%

1 28%

114 49%

3 76%

20 13%

69 47% 79 53%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 53-3 Date./Sample. BANNER 3

BASE=TOTAL SAMPLE DATE ----

WED, MAR 6

THU, MAR 7 FRI, MAR 8 SAT, MAR 9 MON, MAR 1 TUE, MAR 1 WED, MAR 1 THU, MAR 1 FRI, MAR 1 MON, MAR 1 TUE, MAR 1 WED, MAR 2 SAMPLE ------

SAMPLE A SAMPLE B

92 23%

298 74%

202 50%

151 38%

119 30%

95 24%

101 25%

4 1%

1 2%

3 1%

2 1%

1 1%

2 2%

1 1%

30 8%

8 8%

10 9%

4 4%

43 11%

9 9%

34 11%

23 8%

15 10%

11 5%

9 6%

BASE=TOTAL SAMPLE DATE ----

WED, MAR 6

THU, MAR 7 FRI, MAR 8 SAT, MAR 9 MON, MAR 1 TUE, MAR 1 WED, MAR 1 THU, MAR 1 FRI, MAR 1 MON, MAR 1 TUE, MAR 1 WED, MAR 2 SAMPLE ------

SAMPLE A SAMPLE B

2 1%

3 2%

12 7%

10 6%

11 6%

30 11%

24 9%

15 10%

12 10%

13 13%

12 11%

15 16%

27 9%

24 12%

11 7%

12 10%

9 9%

10 10%

26 10%

13 14%

32 8%

9 10%

42 11%

50 13%

17 8%

17 11%

10 7%

41 14%

24 12%

18 12%

6 6%

20 7%

17 9%

16 10%

10 11%

198 49%

49 53%

202 51%

21 7%

24 12%

7 8%

51 13%

26 6%

37 12%

44 47%

40 14%

144 48%

153 52%

23 12%

109 54%

93 46%

16 14%

12 10%

13 14%

10 10%

4 1%

17 10%

16 9%

5 3%

13 8%

3 2%

7 7%

19 7%

11 7%

12 7%

16 9%

14 14%

32 12%

18 11%

20 12%

21 12%

21 8%

16 9%

9 9%

26 9%

15 9%

14 8%

SOME IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- ----71 18%

147 37%

146 36%

147 37%

1 -

1 1%

4 5%

2 3%

16 11%

9 6%

2 2%

10 7%

17 11%

72 18%

74 18%

73 18%

196 49%

2 3%

1 1%

2 1%

7 14%

10 14%

2 1%

1 2%

11 8%

8 5%

5 3%

3 6%

6 12%

11 14%

7 9%

6 8%

4 6%

6 8%

13 8%

9 12%

16 11%

15 10%

18 12%

5 11%

9 12%

10 14%

4 8%

5 7%

3 5%

11 15%

23 16%

19 13%

21 14%

14 8%

18 10%

17 10%

12 17%

22 15%

20 13%

21 14%

14 8%

47 12%

13 9%

12 8%

NOT MUCH/ STRATEGIC NO IMPACT OF DEPARTURE GROWTH PLAN ======================= =========== SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK YES NO ----- ----- ----- ----- ----- -----

12 7%

9 13%

12 8%

13 9%

15 10%

8 16%

1 2%

8 12%

10 14%

3 4%

3 5%

16 22%

8 11%

6 9%

9 12%

8 11%

21 11%

15 7%

15 8%

1 -

11 5%

19 10%

4 2%

16 8%

19 10%

24 12%

25 13%

16 8%

3 4%

24 12%

5 6%

21 11%

16 8%

10 8%

12 13%

16 16%

35 13%

22 13%

7 10%

17 11%

15 10%

16 11%

8 16%

10 14%

12 17%

11 15%

19 10%

30 15%

12 10%

11 12%

4 4%

16 6%

17 10%

9 5%

16 9%

8 12%

6 4%

14 10%

8 5%

2 3%

3 4%

2 2%

2 3%

16 8%

10 5%

74 50%

73 50%

24 16%

14 12%

70 46%

54 45%

81 54%

3 3%

2 1%

23 11%

6 5%

1 1%

6 5%

4 1%

32 11%

50 13%

13 13%

171 43%

7 8%

17 6%

2 1%

7 7%

169 42%

41 10%

6 7%

1 -

13 11%

170 42%

1 1%

65 55%

12 12%

46 49%

49 51%

9 9%

46 46%

55 54%

37 14%

138 50%

136 50%

21 12%

85 50%

27 16%

87 51%

82 49%

24 14%

83 48%

88 52%

8 11%

36 50%

35 50%

16 11%

74 50%

13 9%

73 50%

18 12%

75 51%

73 49%

4 9%

20 43%

27 57%

11 15%

9 12%

34 47%

34 46%

38 53%

40 54%

6 8%

37 51%

35 49%

28 15%

95 49%

100 51%

22 11%

99 51%

97 49%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 53-4 Date./Sample. BANNER 4

13 9%

19 9%

274 68%

5 1%

26 7%

4 1%

18 9%

SIGNIF IMPACT OF DEPARTURE ======================= SKILL CEO/ MGMT MGR/ -ED OWNER TEAM SPV WORK ----- ----- ----- -----

PAGE 297

M E E T I N G S T R E E T

PAGE 298

R E S E A R C H

87 22%

4 1%

1 1%

43 11%

9 11%

5 1%

3 3%

30 8%

26 7%

41 10%

50 13%

5 6%

3 3%

10 12%

13 14%

285 71%

103 26%

43 11%

2 2%

1 2%

8 8%

6 13%

17 6%

9 9%

1 2%

34 12%

16 15%

4 10%

22 8%

9 9%

3 6%

14 10%

2 1%

31 11%

11 11%

4 1%

1 1%

21 7%

31 11%

42 11%

10 11%

33 12%

50 13%

10 12%

37 13%

32 8%

4 4%

9 9%

6 6%

13 12%

3 7%

4 9%

3 7%

6 15%

144 36%

13 9%

7 5%

83 21%

2 2%

12 14%

5 6%

12 9%

8 9%

21 14%

9 11%

19 13%

42 11%

7 17%

3 7%

1 2%

6 8%

5 13%

17 12%

15 18%

3 6%

15 11%

12 14%

5 6%

6 13% 1 2%

6 13%

7 2%

122 31% 1 1%

93 23% 1 2%

2 29%

15 12%

11 12%

1 1%

1 16% -

1 14%

8 7% 7 5%

6 7% 8 8%

149 37% 2 1%

14 9%

12 8% 3 2%

11 7%

13 10%

11 12%

12 10%

11 12%

15 10%

2 27%

17 14%

6 7%

21 14%

1 14%

16 13% 11 9%

8 9%

6 6%

15 10%

10 2% -

1 11%

1 10%

214 54% 1 -

1 12%

21 14%

2 18%

12 8%

22 10%

9 6%

1 -

2 1%

15 7%

151 38%

8 4%

25 12%

30 14%

6 4% 8 5%

16 11%

21 14%

128 32%

125 31%

106 27%

191 48%

120 30%

114 28%

77 19%

1 1%

2 2%

1 1%

8 7%

4 5%

7 15%

5 4%

4 5%

3 8%

14 12%

16 14%

9 12%

10 23%

10 8%

12 10%

5 6%

7 15%

9 8%

11 15%

5 10%

56 49%

31 41%

21 45%

10 7%

13 11%

3 2%

8 7% 8 6%

15 11%

10 8% 7 6%

13 10%

16 12%

8 8% 4 4%

4 4%

16 15%

19 10% 12 6%

3 1%

11 6%

23 12%

25 13%

16 13%

13 11%

2 2%

1 1%

6 5% 11 9%

11 9%

1 8%

28 13%

19 12%

17 13%

13 11%

12 11%

24 13%

13 11%

1 12%

29 14%

25 17%

12 10%

15 12%

13 13%

21 11%

20 9%

11 7%

12 9%

7 7%

16 8%

15 12%

15 13%

12 15%

4 4%

7 6%

36 13%

11 11%

5 13%

19 13% 7 5%

6 7%

4 5%

8 18%

3 7%

15 12% 7 5%

14 15%

9 10%

16 11%

3 30% -

16 8%

20 9%

22 14% 12 8%

13 10%

15 12%

13 10%

15 15%

23 12%

17 14%

198 49%

43 50%

134 47%

56 55%

21 49%

69 48%

49 59%

18 42%

4 59%

62 51%

48 52%

66 44%

5 47%

100 47%

69 45%

59 46%

64 51%

47 44%

99 52%

58 48%

202 51%

44 50%

17 6%

151 53%

7 7%

47 45%

3 7%

22 51%

76 52%

34 41%

24 58%

3 41%

60 49%

44 48%

M E E T I N G S T R E E T

234

7 5%

83 56%

5 53%

114 53%

R E S E A R C H

82 55%

69 54%

61 49%

10 9%

60 56%

13 7%

92 48%

7 9%

9 11%

12 14% 7 8%

11 9%

51 13% 26 6%

19 15%

6 5%

17 15%

6 8%

62 52%

58 51%

10 13%

46 59%

46 12% -

2 4%

1 2%

3 6%

4 8%

3 6% 2 4%

25 55%

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 53-5 Date./Sample. BANNER 5

BASE=TOTAL SAMPLE DATE ----

WED, MAR 6

THU, MAR 7 FRI, MAR 8 SAT, MAR 9 MON, MAR 1 TUE, MAR 1 WED, MAR 1 THU, MAR 1 FRI, MAR 1 MON, MAR 1 TUE, MAR 1 WED, MAR 2 THU, MAR 2 FRI, MAR 2 MON, MAR 2 TUE, MAR 2 WED, MAR 2 THU, MAR 2

212 53%

145 36%

108 27%

92 23%

79 20%

71 18%

319 80%

81 20%

62 16%

82 20%

154 39%

87 22%

320 80%

43 11%

54 10%

100 19%

51 10%

100 19%

218 42%

4 1%

2 1%

1 1%

2 3%

1 1%

4 1%

3 5%

1 1%

4 1%

2 4%

1 1%

1 -

6 4%

12 11%

5 5%

8 6%

11 10%

43 11%

30 8% 5 1%

19 9%

19 9% 1 -

20 14%

26 7%

17 8%

50 13%

29 14%

15 10%

32 8%

20 9%

10 7%

41 10% 42 11%

19 9%

23 11%

20 14% 18 13%

50 13%

26 12%

23 16%

26 6%

14 7%

8 5%

51 13%

23 11%

16 11%

9 9%

1 1%

8 8%

7 8%

8 11%

1 1%

3 4%

2 2%

3 3%

7 9%

13 12%

13 14%

10 13%

13 12%

8 9%

9 11%

8 7%

11 10%

11 12% 9 9%

10 10%

12 13%

5 4%

8 9%

14 13%

7 8%

13 16%

TUE, APR 2 SAMPLE ------

SAMPLE A SAMPLE B

5 1%

11 13%

2 2% -

6 10%

8 10%

1 1%

3 5%

7 5%

4 2%

11 13%

39 12%

4 8%

3 1%

2 4%

34 11%

5 12%

26 8%

4 9%

9 9%

18 8%

5 2%

4 7%

6 6%

20 9%

2 2%

5 10%

2 2%

16 31%

6 6%

22 10%

2 3%

31 10%

1 1%

4 6%

7 8%

14 9%

7 8%

26 8%

3 6%

7 12%

4 4%

8 17%

4 4%

10 4%

8 8%

5 11%

8 12%

41 13%

9 12%

10 16%

20 6%

6 7%

5 9%

40 13%

10 12%

4 5%

22 15%

11 13%

45 14%

8 10%

7 5%

5 6%

18 6%

9 14%

12 15%

M E E T I N G S T R E E T

16 11% -

10 12%

6 14% 2 5%

6 11% 8 14%

39 12%

9 21%

R E S E A R C H

2 5%

5 5% 4 4%

3 3%

5 9%

7 13%

20 9%

5 11%

24 8%

2 2%

41 13%

7 8%

9 16%

2 4%

8 9%

15 10%

7 8%

6 11%

7 7%

23 15%

12 14%

18 12%

4 8%

6 12%

10 12%

7 11%

8 10%

21 7%

5 10%

7 11%

10 12%

7 11%

7 8%

2 5%

16 19%

32 10%

8 10%

10 6%

12 13%

34 11%

14 19%

33 10%

6 8%

17 11%

11 15%

3 4%

6 8%

3 3%

30 14%

5 5%

18 8%

6 6%

29 29%

11 11%

15 15%

5 5%

15 15% 5 5%

5 5%

24 11%

2 2%

15 15%

21 9%

6 6%

4 4%

31 14% -

2019 STATE OF MANUFACTURING STUDY / 19172 / MARCH 5-APRIL 2, 2019

Table 53-5 Date./Sample.

MON, APR 1

28 9%

9 11%

3 5%

33 10%

17 5%

7 9%

15 19%

2 3%

8 12%

13 14%

2 3%

Continued

BANNER 5

PAGE 299

PAGE 300

3 3%

4 4%

198 49%

106 50%

67 46%

53 49%

43 47%

34 43%

27 37%

160 50%

37 46%

32 51%

35 43%

80 52%

42 48%

158 49%

19 44%

25 47%

50 50%

24 46%

49 49%

113 52%

202 51%

106 50%

78 54%

55 51%

49 53%

46 57%

45 63%

159 50%

44 54%

31 49%

235

47 57%

M E E T I N G S T R E E T

74 48%

45 52%

162 51%

R E S E A R C H

24 56%

29 53%

50 50%

27 54%

51 51%

105 48%

236

$15.95

Inside, you’ll find: • Topline results from a survey of 500 Minnesota manufacturing executives • Detailed analysis from pollster Rob Autry, founder, Meeting Street Research • Full transcripts from 13 manufacturing focus groups conducted across the state • Selected cross tabulations

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