The Northeast Wisconsin Manufacturing Alliance announced its 13th annual Northeast Wisconsin Manufacturing Vitality Index study at its quarterly membership meeting at UW-Green Bay’s STEM Innovation Center Dec. 16.
Mike Kawleski, public affairs manager for Georgia-Pacific and chair of the Alliance’s Communications Taskforce, shared the results of the study, which serves as an indication of the strength and vitality of manufacturing employers in the New North.
“This year’s report finds that manufacturers’ sales recovered from 2020, however supply chain constraints and lack of talent are strong concerns from companies in the region. The study found a record number of manufacturers planning on investing in modernization than any other year of the study,” Kawleski said. “In addition, over half are planning to hire in the first quarter of 2023. The biggest issue is that the skills shortage continues to be of great concern, especially in machinist and general labor/production occupations.”
The Alliance has commissioned the University of Wisconsin Oshkosh’s Center for Customized Research and Services to administer the study over the past 13 years. Presidents and CEOs of Northeast Wisconsin manufacturing companies with at least $3 million in revenue and 25 or more employees participated in the study. In total, 122 manufacturers participated in the survey conducted in fall 2022, answering questions related to financial health, business growth expansion, plant modernization, supply chain constraints, 2023 hiring intentions and potential skills shortages.
Respondents said their companies are financially solid, with 99% projecting their firms’ financial health in the next six to 12 months will be “healthy” or “quite healthy.” In 2022, sales continued to rebound from the pandemic with 76% reporting increased sales. Manufacturers believe that they will have strong growth in sales in 2023 with 71% expecting an increase in sales. A record number of three out of four companies report that they are investing in plant modernization. In addition, 33% report investing in expansion plans in the upcoming year.
The study found 98% of respondents stated they experienced supply chain constraints, which was higher than the previous year which was 96%.
“The first quarter of 2023 should be strong for hiring, with 60% of companies saying they plan on hiring in the first three months of next year. In subsequent quarters, over 60% plan on hiring,” said Ann Franz, the Alliance’s executive director. “However, 91% of manufacturers are concerned that they will not find the workforce they need in the new year.”
This tied with last year’s findings as being the highest percentage compared to the other years of the study. In fact, the first year of the study in 2011 had only 29% reporting a hiring concern.
Employees such as Computer Numerical Control (CNC) machinists, operators, general labor/production workers, engineers, welders, industrial maintenance/electro-mechanical technicians, assemblers and spray painters remain difficult to locate and are in high demand. Employability skills are also heavily in demand, especially attendance, communication, dependability and math skills.
A summary of the study can be found on the Alliance’s website: www.newmfgalliance.org.
