Central Minnesota Manufacturers Highlighted During DEED Grant Announcement

(KNSI) – Two central Minnesota manufacturers were showcased as the state announced a loan program to help manufacturers introduce robots in their facilities.

The Minnesota Department of Employment and Economic Development has $97 million available through the State Small Business Credit Initiative. DEED loans can be up to $500,000 and must be matched by the company. The money is to help companies automate production for manufacturing, distribution, technology, and warehousing businesses with 500 or fewer employees.

Minnesota DEED

SNX Technologies Sauk Rapids owner Mike Noelting is one of those businesses benefitting from the program. “We’re still learning this system, but the first go around we were looking at a 50 to 60% labor reduction and we still have not really maximized the use of this piece of equipment.”

Pete Rogers, with robot maker Central McGowan in St. Cloud, says companies that automate are still looking for workers. “We’ve got some manufacturers that are putting in automation in certain areas and they’re doubling their throughput. They’re actually having to hire individuals to feed these machines and to keep them running. The robots are not only increasing their production but they’re also increasing job openings in certain areas.”

Rogers says the production’s future is changing, so they can hire a broader range of people with different skills. “Manufacturing is highly technical these days. It used to be dumb, dirty and dangerous. You go into some of these manufacturing facilities these days, and they make a Best Buy look like a kindergarten toy set.”

Minnesota DEED Commissioner Steve Grove says automation is essential to the growth of the state’s manufacturing sector. “There’s a time when scary headlines screaming ‘the robots are coming to take our jobs’ had people shaking in their boots. But I think today, in many ways, what I hear is manufacturers saying we need more robots to take our jobs and make them better.”

The SSBCI is meant to complement the Automation Training Incentive Program, which gives grants to small businesses to train workers on new automation technology. Up to $35,000 is available.

___