Wisconsin Manufacturers Less Pessimistic About The Economy

Saturday, October 7th, 2023 -- 6:30 AM

(By Joe Schulz, Wisconsin Public Radio) Wisconsin manufacturers are less pessimistic about the economy than last year and remain optimistic about their companies, but workforce challenges continue to be a top concern even as inflation and supply chain worries lessen.

That's according to a new report from the Wisconsin Center for Manufacturing & Productivity, a public-private partnership that connects companies with resources. It surveyed 415 manufacturing executives from across the state and also took input from focus groups in Madison, Milwaukee, Green Bay and Menomonie. Manufacturing stakeholders on Wednesday discussed the results at Titletown Tech in Green Bay. The survey found that 51 percent of manufacturers believe the business climate is headed in the right direction, but it's not quite back to levels seen in 2021. That year, 55 percent said it was going in the right direction. The survey shows that manufacturers are split regarding opinions on the health of Wisconsin's economy. Twenty-three percent believe the state economy is growing; 36 percent say it's mostly flat; 26 percent think it's slowing down; and 12 percent believe it's in a recession. According to the U.S. Bureau of Economic Analysis, America's gross domestic product grew in the first two quarters of 2023 with annualized growth around 2 percent each quarter. After some forecasters predicted recessions in 2022 and 2023, forecasters at UCLA are predicting 2024 will be a weak year for economic growth, before rebounding in 2025.

"We heard from the focus groups (that) there's a sense that we're not really sure where the economy is right now and what it's going to do," said Rob Autry, president of market research firm Meeting Street Insights, who helped compile data for the manufacturing report. "I think that leads to why we see a higher percentage of manufacturers who kind of feel that (it’s) stagnating." At the same time, manufacturers were very optimistic when asked about their individual business, with 85 percent saying they were confident in their company's financial future. "Manufacturers are the most confident group I've ever polled," Autry said. "This is a consistent finding over the last three years that we've done the survey." While manufacturers are confident about their firm overall, they presented a less rosy picture when asked specifics by surveyors. According to the report, their revenue predictions fell by 6 percent from the previous year and expected capital expenses fell by 4 percent.

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