Wisconsin Manufacturers Confident About Economy
State Manufacturers Report Skilled Workers in Demand

MADISON—Wisconsin manufacturers are expressing confidence in the state’s economy with 43 percent predicting new hires and 47 percent predicting increased capital investments, according to a new survey conducted by Wisconsin Manufacturers & Commerce.

“Wisconsin manufacturers are investing in their plants to increase efficiency, and they’re hiring workers to get the job done,” said James S. Haney, WMC president.

WMC conducted the online survey of 400 manufacturing CEOs from among its 4,000 members to celebrate May is Manufacturing Month, with 68 completing the survey at www.wmc.org.

Respondents included small, medium, large and mega manufacturers. Wisconsinhas the second most manufacturing-intensive economy in the U.S., with nearly one in five workers directly employed in manufacturing.

Some 47 percent of the survey respondents said they would increase capital spending in 2007, with more than half citing modernization and increased efficiency and 48 percent citing increased capacity. Other recent surveys of manufacturers have found similar results.

Over 43 percent said they would increase hiring, with 43 percent reporting their employment would stay the same and only 13 percent making cuts. The survey found the greatest demand for workers in the area of skilled production, and nearly 58 percent reported they could not find qualified candidates to fill job openings.

Over 55 percent report involvement in education and training partnerships in their communities.

Highly trained manufacturing professionals are in demand. The Wisconsin Department of Workforce Development reports that Wisconsin manufacturers will have 7,620 job openings each year through 2014.

Manufacturers offer high-skill, high-wage jobs that pay an average of 23 percent more than the average wage earner in other sectors of the economy, according to the National Association of Manufacturers. The annual average wage for Wisconsin manufacturing jobs is $44,457, not including benefits.

Nearly 54 percent said they export to other countries with almost 58 percent predicting growing their exports this year. The findings are consistent with two other recent surveys.

“Manufacturers are good corporate citizens, and help keep our communities strong and that means better jobs and brighter futures for our families,” Haney said. “If Wisconsin is going to continue to lead the nation and maintain its competitive edge in the global marketplace, we must do a better job promoting manufacturing as a career choice.”

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Wisconsin Economic Outlook -- Key Findings from Recent Surveys

Growth/Expansion

• According to the Milwaukee 7 Manufacturing Survey, 62 percent of the survey respondents expect to increase employment, capital investment or facility space in the next 12 months. Forty-five percent expect to hire workers, 50 percent plan capital investments, and 28 percent plan to expand their facilities. (Milwaukee 7 Manufacturing Survey, August, 2006)

• Some 47 percent of the survey respondents said they would increase capital spending in 2007, with more than half citing modernization and increased efficiency and 48 percent citing increased capacity. (WMC, May is Manufacturing Month Survey, April 2007)

Workforce

Workforce deficiencies and shortages are clear threats to manufacturing’s future viability.

• Some 25 percent report recruiting and retaining employees as a most critical workforce challenges over the next three years, while 16 percent report finding skilled workers as the most critical workforce challenge. (Milwaukee 7 Manufacturing Survey, August, 2006)

• Over 43 percent said they would increase hiring, with 43 percent reporting their employment would stay the same and only 9 percent making cuts. The survey found the greatest demand for workers in the area of skilled production, and nearly 58 percent reported they could not find qualified candidates to fill job openings. (WMC, May is Manufacturing Month Survey, April 2007)

Wisconsin Manufacturer Growth Tactics

In a survey from the Wisconsin Manufacturing Extension Partnership, Wisconsin manufacturers were surveyed on tactics they plan to implement to promote growth. Among the findings:

• 95% plan to build business with existing customers
• 69% plan to enter new markets
• 67% plan to develop new products
• 49% plan to develop new technologies
• 21% plan to acquire another business

(Wisconsin Manufacturing Extension Partnership, December 2006)

FOR FURTHER INFORMATION, CONTACT:
James S. Haney, (608) 258-3400
Jim Pugh, (608) 258-3400