Wisconsin's future is manufacturing

Posted: Oct. 25, 2011

Echoing the oft-heard slogan "Wisconsin is open for business," state business representatives noted that manufacturing is one of the state's great strengths.

But that very strength could pose a danger, as the state is especially vulnerable if manufacturing industries took a downturn.

Lt. Gov. Rebecca Kleefisch and representatives from various economic groups spoke to an audience of businesspeople about Wisconsin's economic future at a luncheon Oct. 19 at Country Springs Hotel in Pewaukee. The event also recognized the Wisconsin Manufacturers and Commerce's (WMC) 100th anniversary.

"Manufacturing is Wisconsin's ticket in the future," Kleefisch said.

Kleefisch explained that as part of Gov. Scott Walker's goal to create 250,000 jobs in Wisconsin, she has spent many hours speaking with business owners statewide. She said that at the beginning of this summer, 88 percent of people thought that Wisconsin is moving in the right direction.

"We started to feel a sense of stability during those roundtables," Kleefisch said.

Fast stats

Panel members outlined their vision for economic prosperity in Wisconsin, and spoke on where Wisconsin stands economically compared to the other 50 states, using figures from a report titled "Enterprising States" released the same day by the U.S. Chamber's National Chamber Foundation and prepared by the Praxis Group.

The report was done "to see where some states are leading and some are lagging," explained panel speaker, co-founder and president of Praxis Strategy Group Delore Zimmerman.

The report states that "Wisconsin is one of only two states in the nation with more than 16 percent of the total jobs in the state attributed to the manufacturing industry."

It adds that "Wisconsin ranks 19th in seasonally adjusted job growth in the first seven months of the year, with a growth rate one-third higher than the national rate."

Wisconsin's employment growth from January through August was up 0.82 percent, compared to Minnesota with a 1.46-percent increase, Illinois with a 0.21-percent increase and Indiana with a 0.78 percent decrease. Nationwide, employment growth stood at 0.62 percent during that period.

Wisconsin shows "promise in its export economy and in the quality of its workforce and training system. Both areas present an opportunity to build sustainable, long-term economic stability in Wisconsin," the report states.

Wisconsin has outperformed the nation in several arenas, resulting in jobs added. Between 2009 and 2011, 14,803 jobs were added in manufacturing and 14,358 in administrative and support, waste management and remediation.

While many positives are listed in the report, it states that "of greatest concern is the state's lack of competitiveness in the transportation and warehousing and professional and technical services industries."

Manufacturing the future

"Economic activity generated by manufacturing supports nearly 1.1 million jobs and $53 billion in earnings to Wisconsin workers and business owners. That's 32 percent of the state's jobs and 35 percent of all earnings," the report states.

Wisconsin has had an 88-percent higher manufacturing job concentration than a typical state economy during 2011. "This increase in concentration makes the overall state economy even more dependent upon manufacturing to be an economic engine," the report states.

But reliance on manufacturing heightens Wisconsin's vulnerability when manufacturing takes a downturn. The report suggests that "state leaders should do everything possible to support current manufacturers …"

Kleefisch explained that laws are in the works to give high schools the ability to grant occupational diplomas, and to allocate more grant money for technical schools.

"We are very excited about legislation coming through the pipeline," Kleefisch said.

"We are committed to helping you grow," Kleefisch said to the audience. "We know you are about to grow under the great leadership of Gov. Scott Walker."