Wisconsin’s economy is known beyond its borders for some good things – a diverse agricultural economy, growing technology sectors and statewide tourism appeal – but the brightest marquee is manufacturing.
Keeping that light shining means adjusting to change faster than competitors at home and abroad.
First, some baseline statistics: Wisconsin is one of the nation’s most manufacturing-intensive states, with $71.5 billion in gross domestic product, about 9,000 companies of all sizes and nearly 500,000 manufacturing jobs – which equates to one in six workers in the state’s total workforce.
Those are all facts worth celebrating during October’s “Manufacturing Month,” which is being marked by events such as the “Coolest Thing Made in Wisconsin” contest produced by Wisconsin Manufacturers & Commerce; the Wisconsin Manufacturing Report by the Wisconsin Center for Manufacturing & Productivity; and the Future of Manufacturing Town Hall in Milwaukee.
Despite the robust nature of Wisconsin manufacturing – from metal goods to food and beverage products, and from industrial machinery to vehicles that ply waterways and highways – there are challenges on the horizon.
The biggest is finding enough workers as the current workforce matures and retires, which is not unlike the problem facing other states. It’s perhaps more urgent in Wisconsin, however, because the per capita share of the total workforce involved in manufacturing is higher. In fact, it’s second among the 50 states.
The WCMP Manufacturing Report released Oct. 2 polled hundreds of industry executives statewide and 79% reported it is difficult to find qualified workers and 52% are looking to fill open jobs right now.
“We will not have enough people to fill our open positions for the next decade,” predicted Buckley Brinkman, executive director of the WCMP.
That’s on par to what national groups such as The Manufacturing Institute say about the looming labor shortage; it has predicted 2.1 million manufacturing jobs in the United States could go unfilled by 2030. That doesn’t bode well in a political environment in which Republicans and Democrats alike are clamoring to “bring jobs home to America.”
With demographics working against the industry, technology and automation must become part of the solution for manufacturers. That means investing for growth versus just cutting costs; embracing ways to conserve water, energy and other resources; and attracting and retaining young talent in a tight market.
Manufacturers must also embrace automation where it makes sense. Artificial intelligence will be a part of that approach – which could become a homegrown advantage for Wisconsin as Microsoft invests $3.3 billion in its Racine County data center. It is destined to become the only Microsoft AI data center tied to manufacturing productivity and training.
“Our leading manufacturers (must) harness creative workforce approaches and new technologies like AI to maintain their competitive edge,” Brinkman said.
Still, there are some who believe AI will cost more jobs than it creates. That was part of the International Longshoremen’s Association strike on the East and Gulf coasts, and a concern for other unions within the AFL-CIO. However, most experts believe AI and automation will only eliminate jobs that are “dull, dirty or dangerous,” leaving plenty of room for high-value work.
From the production line to the back office and across the supply chain, AI has the potential to keep U.S. and Wisconsin manufacturing competitive in a world where options abound. In some nations, such as China, direct government subsidies for such technology are boosting exports that compete with American-made goods and jobs.
Large Wisconsin-based companies such as Rockwell Automation, Husco International, Stoughton Trailers, Harley-Davidson and more are moving ahead with strategies that include both well-trained workers and automation. At the end of the day, there really isn’t much of a choice: Adapt or fade away.
Tom Still is president of the Wisconsin Technology Council.
