Manufacturers look forward to positive growth in 2025

Manufacturers expect to have a good 2025 even through the uncertainty facing the economy. They respect and acknowledge the complications in today’s economy and still have faith in their ability to meet any changes and challenges. Reduction in pandemic-created inventories will clear the way for more production in the coming year. Manufacturers have the available production capacity to pursue new customers and find most of those new opportunities through word of mouth. For the first time in three years, manufacturers can pursue new market opportunities without disrupting incumbent customers. Many of these new opportunities result from direct connections with customers, suppliers, and peers. Ongoing worker shortages will drive investment and strategic decisions for the next decade. Workforce aging and fewer people to replace them means that manufacturers will face challenges to fill open positions far into the future. Leading companies will invest more resources to retain and upskill their present workforce while adopting the technologies necessary to grow and remain competitive in their markets. New technologies will make Wisconsin manufacturers more competitive. Artificial Intelligence (AI) and other Industry 4.0 technologies will enable Wisconsin manufacturers to meet future challenges effectively and creatively. New resources coming on-line will position the state as a leader in improving manufacturing competitiveness and resilience in world markets. Some manufacturers will be left behind. We still see a significant number of companies under stress and not ready to make the changes necessary to remain competitive. Unfortunately, these operations may not survive future economic shocks. Manufacturer Takeaways Companies that lean into change and adopt new technology will see their businesses improve. Cutting edge technology is becoming cheaper, easier to obtain, and less risky to implement. As a result, more manufacturers will experience transformational improvements to their operations, opening more markets and providing more paths to growth and profitability. New resources throughout Wisconsin will make technology adoption easier for our manufacturers. New coalitions will form, making it possible for smaller companies to experience the improvements normally only available to the largest organizations. The lower costs and risks involved with many AI implementations will encourage our manufacturers to embrace this new technology and use it to overcome labor shortages. Finances and available budget remain the top obstacles to implementing new technology. Many companies find it difficult to make their first investment in new technology because of financial risk. We see a pattern where companies that make their first investment quickly double down on future investments because they see obvious financial returns and resilience improvements. The workforce market is softening – but it’s still tough out there. Fewer companies find it “Very Difficult” to find employees and fewer companies are hiring. The companies that are hiring have fewer positions open. Still, employers are reluctant to reduce their workforce knowing that any quality employee they release will be quickly hired by another manufacturer. That produces a “sticky” employment environment where companies invest in developing their employees and upskill them to make the most of new implemented technologies. The tight market also causes most employers to be more realistic about the skills of new hires. They understand that the workers most available in the current market will require more time and training to become fully productive in their operations.