An annual survey by a Minnesota manufacturing industry organization shows the sector may face labor shortages.

The Star Tribune reports that the Enterprise Minnesota survey says manufacturers are concerned about finding enough workers to fill positions as baby boomers retire and job availability increases. The survey released Thursday included about 400 respondents and 60 focus group participants.

The report says 65 percent of respondents expect to expand this year, double the amount in 2016.

But the report says the anticipated workforce shortage will counter the industry’s otherwise optimistic view.

About half of respondents said hiring and retention is the biggest challenge they face.

Enterprise Minnesota CEO Bob Kill says smaller firms are less likely to prepare for the anticipated shortage through improved leadership training, increased productivity or strategic planning.