GRAND CHUTE, WI (WTAQ-WLUK) — An annual report shows that Northeast Wisconsin manufacturers expect increased sales and strong hiring in 2024 but worry about not finding the talent they need.
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 Wednesday.
Jeff Berg, vice president operations at Voith US Inc. and vice chair of the NEW Manufacturing Alliance, says one out of two manufacturers plan to hire in the first quarter of 2024, adding the hardest roles to fill are machinist and general labor/production occupations.
“The manufacturing industry from 20, 40 years ago is not what it is today, it’s full of automation, it’s full of opportunities, it’s full of career growth and it’s jobs that pay very well and can deliver for your family and make the community a better place to live in,” Berg said.
The University of Wisconsin-Oshkosh’s Center for Customized Research and Services administered 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.
Officials say respondents said their companies are financially solid, with 98% 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 also 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 online.
