As of July 2025, Wisconsin’s manufacturing sector remains a cornerstone of the state’s economy, contributing significantly to its GDP and employment. Even despite facing challenges such as workforce shortages and supply chain disruptions, Wisconsin’s Manufacturers have demonstrated resilience and adaptability.
- Economic Performance
The 2024–2025 Wisconsin Manufacturing Report, has Wisconsin’s manufacturing industry contributing $66 billion to the state’s GDP, making it the backbone of Wisconsin’s economy. Wisconsin’s manufacturers also employ nearly 480,000 workers. The first half of 2025 has seen continued strength in this sector, with steady demand across key industries such as food processing, machinery, and medical devices. However, growth has been tempered by persistent workforce shortages and supply chain challenges.
- Workforce Challenges
Workforce shortages remain one of the most pressing issues for Wisconsin manufacturers. The 2024–2025 Wisconsin Manufacturing Report also highlights that attracting and retaining skilled workers continues to be a significant challenge. This has led companies to invest in retention programs, training initiatives, and using automation to improve capacity.
The skills gap, particularly in areas requiring technical expertise, has prompted manufacturers to collaborate with technical colleges, universities and other educational institutions to develop targeted training programs. Additionally, there’s a growing emphasis on integrating younger generations into the workforce through apprenticeships and internships.
- Supply Chain Disruptions
Supply chain disruptions have been a challenge in 2025, affecting the timely procurement of raw materials and components. Manufacturers are adopting strategies such as diversifying suppliers and increasing local sourcing to mitigate these challenges. Trade policies, including tariffs, have further complicated supply chain logistics. Companies are responding by reassessing their supply chains, stockpiling materials, and considering price adjustments to offset increased costs.
- Embracing Automation and AI
To address workforce and supply chain challenges, Wisconsin manufacturers are increasingly turning to technology. The adoption of automation and artificial intelligence (AI) is on the rise, enhancing efficiency and productivity. Cybersecurity measures are also being strengthened to protect these technological investments. These technological advancements not only compensate for labor shortages but also position manufacturers to be more competitive in a global market.
Outlook for the end of 2025
Looking ahead, Wisconsin manufacturers are cautiously optimistic. The continued integration of technology is expected to yield productivity gains, while efforts to address workforce shortages may finally begin to fill the gap.
However, uncertainties remain, particularly with workforce shortages, supply chain issues and ever-changing technologies. Wisconsin Manufacturers need to keep pushing for technical training opportunities for the workforce, diversifying their supply chain and adopting and embracing technological advances. By staying adaptable and informed Wisconsin manufacturers can position themselves to sustain success in the 2nd half of the year and for years to come.
For additional information on the Outlook of Wisconsin Manufacturing visit:
wicmp.org – Wisconsin Center for Manufacturing & Productivity
