Manufacturers in Northeast Wisconsin Have "Bullish" Outlook for 2023

Thursday, January 5th, 2023 -- 10:00 AM

(By Joe Schulz, Wisconsin Public Radio) Despite fears of a possible recession, manufacturers in northeast Wisconsin have a "bullish" outlook for 2023. 

According to Joe Schulz with Wisconsin Public Radio, the Northeast Wisconsin Manufacturing Alliance released its 2023 Manufacturing Vitality Index report last month, which surveyed 122 companies.

It found that 99 percent believe their business will be financially healthy this year, and 71 percent think sales will increase. A majority of the companies surveyed also reported plans to make investments in facilities and recruitment in 2023 and beyond.

But respondents also pointed to supply chain constraints and labor shortages as areas for concern. "Overall, I think companies are still pretty bullish," said Ann Franz, executive director for the Northeast Wisconsin Manufacturing Alliance.

"We can feel very comfortable with 2023, and I'm really excited about 2023." Buckley Brinkman, CEO of the Wisconsin Center for Manufacturing & Productivity, said the northeast Wisconsin survey results broadly mirror statewide sentiments.

He said fears of a recession have had a large impact on the tech sector, but not manufacturing. "So far, this recession has not impacted manufacturing to any great extent," he said. "What it's done is taken some of the activity off of an all-time high, and brought it down to a more sustainable level."

Manufacturers’ optimism is reflected in the number of respondents who said their company plans to invest in facility upgrades. In the 2023 outlook report, 75 percent of respondents said they plan to invest in plant modernization or facility upgrades, up from 46 percent in 2013, the first year the survey was conducted.

Similarly, about 1-in-3 respondents said their company plans to expand in Wisconsin in the next 12 to 24 months. The upgrades largely aim to address the workforce shortage by incorporating more automation, Franz and Brinkman said.

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