2010 State of Manufacturing survey shows more hope among manufacturers
Health care remain top concern

More than a quarter of Minnesota manufacturing executives polled in the recent State of Manufacturing project believe the economy will grow in 2010 while only 19-percent anticipate continued recession. This is a dramatic improvement since last year’s survey, when only eight-percent predicted growth and 56-percent predicted recession. Additionally, the number of manufacturers who anticipate increased profitability more than doubled this year compared to last, rising from 17- to 36-percent.

Though optimism has improved, there remain issues of intense concern, with health care costs rising to the top for the second year in a row. Employers are struggling to maintain control over these costs while continuing to provide health and welfare benefits to their employees.

There are options to help manufacturer and non-manufacturers alike gain a grip on these costs. Some are available for no or low cost.

Measure, Benchmark, Compare
Employers should work with a broker who is able to review several years of health care utilization and benchmark existing plans with others in the region. These types of data help employers evaluate potential changes to plan design and ensure the benefits offered are fair and competitive within the marketplace. A broker who is able to model potential plan changes prior to implementation further helps an employer seeking balance between cost and employee satisfaction.

Culture Drives Costs
Studies show that employees who are engaged and happy use less health care. A wellness program alone is not the answer. The key is to identify and remedy core cultural issues affecting employees. How do you start? Ask them, but be certain that you can rely on the truthfulness of their answers. Discovering what really drives employee behavior can help any employer structure sound organization-wide initiatives to correct these issues, which can drive down health care costs while simultaneously boosting productivity.

About the State of Manufacturing

RJF has sponsored the State of Manufacturing Survey, conducted by Enterprise Minnesota, for the past two years. This survey connects with owners and leaders of Minnesota manufacturing companies and asks them to reflect on the past year and make predictions on the year to come.

For the 2010 survey, the State of Manufacturing polled manufacturing executives and conducted 13 focus groups across the state. RJF Agencies contributed a chapter, Healthy Culture, Health Company, to the book. This chapter discusses in depth how company culture is more predictive of employee health than previously thought. Engaged employees do better work, take better care of themselves, and are generally happier, leading to more fulfilling lives. Although this may sound like common sense, supporting a healthy company culture takes work and investment from company leaders at every level.

• Download the chapter Healthy Culture, Healthy Company.
• Learn more about the State of Manufacturing.
• Benchmark your benefits for free with RJF's Fifth-Annual Employee Benefits Benchmark Survey.
• Learn about your employees with an RJF Culture Survey.