The Wisconsin Center for Manufacturing & Productivity fourth annual report shows manufacturers are more optimistic about the economy and their businesses despite ongoing concerns about worker shortages and inflationary pressures.
The WCMP, in collaboration with WMEP Manufacturing Solutions and the University of Wisconsin-Stout Manufacturing Outreach Center, gathered these insights from 400 in-depth interviews with manufacturers across Wisconsin and five focus groups.
“Manufacturing is the largest sector in Wisconsin’s economy and strong manufacturers are critical to the state’s long-term health,” said Buckley Brinkman, WCMP’s executive director/CEO. “They survived and thrived during the Pandemic and came to grips with new challenges in a changing world. This report shows our manufacturers are preparing for the future.”
The report still shows workforce issues atop the list of concerns for most manufacturers with 79 percent of participants saying it is difficult to find qualified workers while 52 percent are currently looking to fill open positions. Larger manufacturers struggle with workforce issues more than smaller firms and lean into technology to maintain their growth in the face of these shortages.
“We will not have enough people to fill our open positions for the next decade,” said Brinkman. “Our leading manufacturers harness creative workforce approaches and new technologies like AI to maintain their competitive edge. The data show an industry ready for new growth opportunities.”
Manufacturers are beginning to realize the extent to which new technology exposes their operations to more cyber-attacks. Focus group discussions showed that most manufacturers understand the threat and are taking countermeasures. None in the group said that these threats would slow their technology adoption efforts.
Manufacturers report that they expect finding new customers and markets to be their main source of future growth, with over half investing a significant or modest amount in sales and marketing efforts.
The report also found that, despite these investments, referrals or word of mouth are the primary source of new customer acquisition across manufacturers of all sizes.
“For the first time in several years, manufacturers have excess capacity and are looking for new markets,” Brinkman added. “Companies want new customers, and we were surprised to see the leading role that word-of-mouth plays in their sales efforts.”
Find the full report on the WCMP website (wicmp.org) or receive a copy by emailing Brinkman at brinkman@wicmp.org.
