It’s been a year most businesses would like to forget.

With everyone from the president-elect to most economists saying the economy will get worse before it gets better, executives up and down the Minnesota River Valley are looking for efficiencies, creative approaches and ways to maintain and even grow as 2009 begins.

While the recession is causing pain in every sector of the local economy, all things are not equal. Some businesses are growing, some are more sheltered from the drop-off than others, and some are being battered.

Several leaders working in the primary economic engines of the area — health care, manufacturing, and higher education — give their views on the year ahead.

Manufacturing doing OK
With nearly one-third of the nine-county region’s payroll tied to manufacturing, the state of the industry is particularly important.

Although the manufacturing is being hurt, most companies are in a position to withstand the challenges.

“They’re looking at ’09 to be a pretty skinny year. They’re planning for the worst and hoping for the best,” said Greg Thomas, business development specialist with Enterprise Minnesota, formerly Minnesota Technology Inc.

“It’s obviously a challenging time, but most of the folks I talk to are doing OK and expect to do OK in 2009.”

Thomas said most manufacturers have added efficiencies to their operations in recent years and have been conservative.

“Most manufacturers in this area are cautious about labor expansion and investments. Most that we work with are cautiously optimistic and actively looking for ways for their business to grow.”

Thomas estimates about two of five manufacturers will face temporary layoffs if the recession is sustained long in 2009. “But I think once things improve, they’ll come back.”

Minnesota manufacturers are better weathering the storm because of a strong export market that has been developed in the state, Thomas said. Minnesota companies exported $15 billion of goods last year.

Commercial realty: Value counts
The decline in new home construction and sales of existing homes has been significant in the area, and the slow economy is hitting commercial real estate as well.

Tim Lidstrom of Lidstrom Commercial Realtors said they are still leasing and selling land and buildings for retail, industrial and offices, but at a slower pace than 2007 and 2006.

“Good sites or buildings, reasonably priced, will always generate interest and sales. Mankato has traditionally been a value market. Retailers and businesses alike have recognized the consumers that are spending the $1 billion in our market,” Lidstrom said.