Wisconsin manufacturers have the chance to become a critical epicenter of the global supply chain for electric vehicles, according to
a new report from the
Wisconsin Economic Development Corp. The chance to seize that opportunity relies heavily on public and private investments being made over the next several years.
“There is a tremendous opportunity for Wisconsin to develop a globally competitive cluster centered on the manufacturing of EVs and EV-related equipment, which in turn can help revitalize Wisconsin’s automotive manufacturing industry and drive statewide economic development,” reads the report, which was funded through a $1 million U.S Economic Development Administration grant.
It states there are several challenges in reaching this goal, including addressing “below-average” productivity in the state’s manufacturing sector and a shortage of qualified workers. The state would also need to strengthen innovation and entrepreneurship around electrically powered technologies and have the infrastructure in place for widespread EV adoption.
The WEDC report brings forth six strategies that, if adopted, could help Wisconsin become an epicenter for EV manufacturing. The first strategy is to enhance productivity through automation and upskilling. Some methods for reaching this goal could include launching an accelerator program for small/rural manufacturers (with an estimated cost of in between $100,000 and $500,000) and refocusing incentive programs to encourage capital investments made by manufacturers that increase productivity, which is estimated to cost over $500,000.
Scaling up the middle-skill workforce pipeline is the WEDC report’s second strategy, followed by improving manufacturers’ access to regional, national and global markets. This could be done through the creation of an automotive industry liaison to strengthen supply chain relationships with nearby EV original equipment manufacturer plants. The creation of this liaison would cost in between $100,000 and $500,000.
Remaining strategies include building connections between innovators and industry, aligning EV policymaking with economic development interests, and preparing for the future of mobility and sustainability.
The report concludes that for Wisconsin to stay competitive as the world transitions from internal combustion engine vehicles to electric vehicles and electrically powered technologies, the sector must keep pace and reinvent itself to become part of the growing EV supply chain.
“(This report) calls for Wisconsin to do what it does best – bring together the longstanding relationships between state government, private businesses, and educational institutions – to assess and meet the demands of this growing market,” said
Missy Hughes, WEDC secretary. “As our businesses explore these new markets, we need to have the tools to help them invest and mitigate the risk associated with leaping into transitioning markets.”
Several manufacturers in Wisconsin have already started leaning more heavily into EV work. Waukesha-based
Husco International, Inc. cancelled a $113 million contract as one of its customers shifted to EV work last summer. Husco then replaced it with
a $50 million yearly EV contract.
In recent weeks,
Foxconn Technology Group said it plans to manufacture EV battery cells and packs
at its Mount Pleasant facility.
