The Northeast Wisconsin (NEW) Manufacturing Alliance announced its 14th annual “Northeast Wisconsin Manufacturing Vitality Index Study” at its Quarterly Membership meeting at Fox Valley Technical College. Jeff Berg, vice president operations at Voith US Inc. and vice chair of the NEW Manufacturing Alliance, shared the results, which serves as an indication of the strength and vitality of manufacturing employers in the New North. “This year’s report finds that manufacturers expect increased sales and strong hiring in 2024”. Berg added, “One out of two manufacturers plan to hire in the first quarter of 2024 in which the hardest roles to fill are machinist and general labor/production occupations.”
The Alliance has commissioned the University of Wisconsin-Oshkosh’s Center for Customized Research and Services to administer the study over the past 14 years. Presidents and CEOs of northeast Wisconsin manufacturing companies with at least $3 million in revenue and 25 or more employees participated in the study. In total, 116 manufacturers participated in the survey conducted in fall 2023, answering questions related to financial health, business growth expansion, plant modernization, supply chain constraints, 2024 hiring intentions and potential skills shortages.
Respondents said their companies are financially solid, with 98 percent projecting their firms’ financial health in the next 6 to 12 months will be “healthy” or “quite healthy.” In 2023, sales continued to rebound from the pandemic with nearly half reported increased sales. Manufacturers believe that they will have strong growth in sales in 2024 with 60% expecting an increase in sales. Investment in their companies continues to be strong with over half reported that they are investing in plant modernization. In addition, 20% report they plan to expand.
The study found companies are having less issues with their supply chain in 2023. The previous year found 98% of respondents stated that they experienced supply chain constraints, compared to this year’s study had 61% had a concern.
“One of the greatest concerns from manufacturers is not finding the talent they need,” noted Ann Franz, the Alliance’s executive director. “The study found 84% of manufacturers are concerned that they will not find the workforce they need in the new year.” This is not as high as in past years in which 91% said they couldn’t find the talent they need. Franz added, “The difficulty in finding talent is great when you compare that the first year of the study had only 29% reporting a concern in finding talent”.
Employees such as Computer Numerical Control (CNC) machinists, operators, general labor/production workers, engineers, welders, industrial maintenance technicians, assemblers and skilled trades remain difficult to locate and are in high demand. Employability skills are also heavily in demand, especially attendance, communication, dependability and work ethic. The NEW Manufacturing Alliance created new videos called, ‘How to be successful in the workplace’ to spotlight how individuals can enhance their employability skills. The free videos and teacher lesson plans can be found at https://newmfgalliance.org/educators-students/employability-skills/.
