Despite Challenges, Wisconsin Manufacturers Optimistic

Tuesday, October 18th, 2022 -- 1:01 PM

(By Joe Schulz, Wisconsin Public Radio) Wisconsin manufacturers are cautiously optimistic about the future, despite hiring challenges, high inflation and energy costs.

According to Joe Schulz with Wisconsin Public Radio, that's according to a report released earlier this month by the Wisconsin Center for Manufacturing and Productivity, or WCMP. "Manufacturers are generally an optimistic bunch," said Buckley Brinkman, the CEO of WCMP.

The report surveyed 400 manufacturers from across the state, and conducted five focus groups. It found that hiring was the most common struggle. Those surveyed also expressed concern about inflation and high energy costs.

"Our focus groups told us they see more opportunities even in a tougher business environment," Brinkman said. "They also welcomed a bit of a slowdown as production was at unsustainable levels earlier in the year."

The report found that 84 percent of participants said it was difficult to find qualified workers, and 56 percent had open positions that needed to be filled. "More manufacturers now are seeing this as a chronic issue," Brinkman said. "They don't see it as cyclical, which I think is reflected in the demographic numbers. We just didn't have enough babies 18 years ago."

Larger employers reported struggling with workforce issues at a higher rate than smaller companies. The report said 81 percent of companies with fewer than 50 people had difficulty hiring, while 92 percent employing more than 50 people had staffing issues.

To recruit and retain employees, the report said 69 percent of manufacturers are increasing wages and while 47 percent are offering more competitive benefits. Larger companies are more likely to offer wage and benefit increases than smaller companies, while smaller companies put more emphasis on offering flexibility and work-life balance, according to the report.

Feel free to contact us with questions and/or comments.