APPLETON – Most manufacturers responding to a regional survey say their companies are financially healthy and they plan on modernizing their facilities, but they’re concerned about the supply chain and finding talent.
The Northeast Wisconsin Manufacturing Alliance (NEWMA) announced results of its 12th annual “Northeast Wisconsin Manufacturing Vitality Index Study” at its Quarterly Membership meeting at Fox Valley Technical College on Thursday.
“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,” said Mike Kawleski, public affairs manager for Georgia-Pacific and chair of NEWMA’s Communications Taskforce.
More than half of local manufacturers are planning to hire in the first quarter of 2022, but the skills shortage is a concern, especially for those seeking machinists and general labor/production occupations, Kawleski said. Additionally, over 96% said that they have experienced supply chain constraints in 2021.
NEWMA has commissioned the University of Wisconsin-Oshkosh’s Center for Customized Research and Services to administer the study over the past 12 years. Survey participants are leaders of northeast Wisconsin manufacturing companies with at least $3 million in revenue and 25 or more employees participated in the study.
In total, 147 manufacturers participated in the survey conducted in fall 2021.
Of those surveyed, 98 percent project their firms’ financial health in the next 6 to 12 months will be “healthy” or “quite healthy.” In 2021, sales rebounded with almost 70% reporting increased sales. Seventy-five percent expect an increase in sales in 2022.
Seven out of 10 companies reported that they are investing in plant modernization and more than a third have expansion plans in the upcoming year.
“The first quarter of 2022 should be strong for hiring, with over half of companies (56.8%) saying they plan on hiring in the first three months of next year. In subsequent quarters, over 50% plan on hiring,” said Ann Franz, NEWMA executive director. “However, 91% of manufacturers are concerned that they will not find the workforce they need in the new year.”
In 2011, the first year of the study, only 29% reported a hiring concern.
Companies have a high need for Computer Numerical Control (CNC) machinists, operators, general labor/production workers, engineers, welders, industrial maintenance/electro-mechanical technicians, and assemblers. Machinists/machine operator positions were noted as hardest positions to fill.
Employability skills are also heavily in demand, especially attendance, communication, work ethic, teamwork and math skills.
Summary of the study can be found on the Alliance’s website: www.newmfgalliance.org
