Despite recent setbacks, Hutchinson’s manufacturing sector is growing.
Hutchinson Economic Development Authority director Miles Seppelt delivered the news to the Hutchinson City Council during his annual report in late April. The update comes a few months after 3M announced 94 layoffs at its Hutchinson plant.
“We’ve had some layoffs with 3M, Uponor and HTI. I think those will probably turn around here. By the second half of the year they’ll probably get back into hiring mode. But we’ll just have to wait and see how it goes,” Seppelt said. “Even with that, there’s eight or nine or 10 companies I know that are still looking for people even today.”
Tracking and supporting the creation of jobs at existing, local manufacturers is a major role of the EDA, Seppelt said, as it is the most effective economic development strategy. Part of that work has him visit about 10 of 30 local manufacturers each year for an update. This year, he visited Resonetics, Hillyard, Clay Coyote, Goebel Fixture Co., Heartland Ag Systems, Curtiss-Wright NDT, Rath Racing, Hutch Iron and Metal, Hutchinson Manufacturing, Minnesota Specialty Yeast.
“Work force is still the No. 1 concern,” Seppelt said. “That’s the biggest thing they’re worried about. A whole bunch of companies are still hiring. Even still, they need more people.”
The EDA’s annual report says some manufacturers have had to turn away business when lacking the workforce to handle it.
The pandemic brought about supply chain issues with material from Canada, China and elsewhere delayed due to COVID restrictions.
“That issue is kind of resolving,” Seppelt said. “I think they’re doing better there. Most of the companies I talk with are pretty busy.”
Since 2017, 18 local manufacturers have expanded. Most of that work has been from 2020-2023. For instance, in 2022, FireLake Manufacturing moved into a new building, growing from 8,000 square feet to 20,000 square feet. The EDA partnered with the Southwest Initiative Foundation and the Mid-Minnesota Development commission to provide a loan of $105,000. RD Machine is in the midst of an expansion, adding 21,000 square feet. The EDA offered tax incentives to offset the cost of soils.
“We’ve added over 850,000 square feet of manufacturing in the last six years, and that’s a huge number,” Seppelt said. “That’s half of the 3M plant that’s added. That would be either new companies coming in to take up vacant space, or companies doing a physical addition to their current facility, things like that.”
The EDA was involved in about half the projects, which Seppelt felt was a good position. The companies involved account for 622 local jobs.
All three tenants in Hutchinson’s manufacturing business incubator, the Hutchinson Enterprise Center, are set to “graduate” from the building this year.
“We’re in the process now of recruiting new tenants. I’m optimistic,” Seppelt said.
In 2022, Milk Specialties Global became a new addition to Hutchinson. The business, which is headquartered in the Twin Cities, signed a long-term lease for 95,000 square feet in the HTI building. The company produces human and animal nutrition products.
“They’re going to be setting up a warehouse and also packing lines. They’ll be bringing in product in bulk, then it’s going to get packed into containers for retail,” Miles said. “Once it ramps up it will probably be about 60 employees.”
