THE COMPETITIVE EDGE

THE COMPETITIVE EDGE: How Employee Ownership Strengthens Minnesota Manufacturers

By Kirsten Kennedy, Executive Director, Minnesota Center for Employee Ownership

Found in the 2025 Central Minnesota Tour of Manufacturing October 2025 edition

In an era of workforce shortages, supply chain disruptions and increasing global competition, Minnesota manufacturers are turning to an unexpected strategy to stay ahead: employee ownership.

Companies that transition to Employee Stock Ownership Plans (ESOPs) consistently outperform their peers in productivity, innovation and resilience—qualities that are more vital than ever. A standout example is AbleNet, a Roseville-based manufacturer of assistive technology for individuals with disabilities. Founded in 1985, AbleNet began with a single product and has grown into a global leader in speech-generating devices, including its flagship QuickTalker Freestyle. The device gives people with communication challenges the ability to express themselves—often with delivery in weeks, not months.

Today, AbleNet is 100% employee-owned through an ESOP, a structure that has fueled its growth and innovation. Employee ownership has transformed AbleNet’s employee mindset: team members don’t just work for a company—they work for a shared mission. That commitment has paid off. On average, AbleNet’s roughly 35 employee-owners hold more than $1.7 million each in ESOP retirement assets, compared to the Minnesota average of just $75,000. That’s not only life-changing for individuals—it’s transformational for communities. In 2018, AbleNet received the Silver ESOP Award from the ESOP Association. But it’s far from the only success story among Minnesota’s more than 250 ESOPs, 16 Worker-Owned Cooperatives, and one Employee Ownership Trust.

Today, Minnesota is home to more than 70 employee-owned manufacturing companies. These firms specialize in everything from heavy equipment to plastics and precision components—many of which are featured in the Minnesota Employee-Owned Top 50 report. The data is compelling: employee-owned manufacturing firms tend to operate more efficiently, retain workers longer and deliver long-term stability. During the height of the pandemic, ESOP companies were up to eight times more likely to retain employees and consistently outperformed others in profitability and productivity.

Employee ownership also offers a powerful growth or succession strategy. Rather than selling to out-of-state buyers or private equity firms, business owners can sell to their employees—keeping jobs, leadership and investment rooted in Minnesota. At the Minnesota Center for Employee Ownership (MNCEO), we’re seeing increased interest from manufacturers who want to align long-term business success with employee engagement and retention. MNCEO and our partners provide the education, access to capital, and technical assistance needed to evaluate and implement employee ownership strategies that strengthen companies and secure their future.

AbleNet’s journey demonstrates what’s possible when employees own the outcome: stronger operations, faster innovation and deeper community impact. Employee ownership empowers individuals and builds real wealth. With more than 70 employee-owned manufacturers already thriving in Minnesota, the future of manufacturing is not just competitive—it’s employee-owned.

Ready to seize the competitive edge? Explore the Minnesota Employee-Owned Top 50, read success stories like AbleNet’s, and chart your path at mnceo.org. Check out our podcast Worker Co. MN Edition to hear more employee ownership stories.