Workforce once again remains top of mind for the manufacturers participating in the fifth annual Wisconsin Manufacturing Report while the uncertainty and cost from new tariffs appeared near the top of the list of concerns. These pressures caused manufacturers to lean into technology to improve productivity and more creative approaches to attract and retain talent. At the same time, capacity increases and a softer economy make production capacity available for companies to attract new clients.
Forged Confidence
Manufacturers are a confident bunch and that confidence reached new highs in the 2025 report – both about the general economy and in their companies. This confidence positions them to grow and make the investments necessary to find and serve new markets; however, uncertainty around tariffs and policy hinders manufacturers’ ability to make larger commitments or make permanent decisions about their strategic direction.
(Less) Help Wanted
Productivity gains and softer product markets reduce the pressure on workforce requirements in manufacturing. As a result, the demand for workers fell as fewer companies find it very difficult to find employees and those hiring have fewer openings. Despite this softening, demographics ensure that we will see a worker shortage for the foreseeable future.
Bot to the Future
The workforce challenges push manufacturers to lean into new technology and processes to drive productivity. These solutions include unique approaches to automation and using AI to uncover new paths to improve performance and competitiveness. Financing and technical expertise often limit adoption of the more complicated approaches. The report also shows that a growing majority of manufacturers regard AI as an important technology, though many struggle to find a way to start with the technology or obtain an acceptable return on their investment.
Sale Away
Productivity improvements and softer markets open production capacity for many manufacturers. Those companies are leaning in to fill that capacity with new customers. These new customers usually come through word-of-mouth connections. This is especially true for smaller companies. Across companies of all sizes, manufacturers are also reducing risk by finding business closer to home.
Duty Calls
Tariffs affect most of the companies in the report – either through additional input costs or the uncertainty that changing policies add to their marketplaces. Manufacturers split on their support for or opposition to the tariffs. Manufacturers opposing the tariffs feel that they hurt their business, while supporters fall into three different categories. In the first, the tariffs help their business by driving demand without appreciably increasing costs. The second group of manufacturers will endure some pain in their business to see that China feels pain as well. Finally, the last group believes that tariffs will return manufacturing to the U.S.