Opinion: Manufacturing is Wisconsin’s fastball. Opportunities abound for economic growth.

Opportunity is knocking in our region.

As our Milwaukee Brewers are headed to the playoffs a baseball analogy seems appropriate.

Fans know a successful pitcher needs a repertoire of weapons in his arsenal. A potent curveball or slider are nice for any pitcher to have in his back pocket. But that overpowering fastball is typically what gets the job done.

The same holds true for a regional economy. A diverse make-up of business sectors defines any successful economic climate, but you need that one sector to drive the region forward. For generations here, it’s been manufacturing.

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Manufacturing is our fastball in Wisconsin. We have the highest concentration of these jobs in the country. We are makers and producers here.  

Manufacturing jobs pay about 20% higher than service industry

Have the jobs changed? Yes. Advances in technology provide efficiencies that help companies increase productivity while protecting the bottom line.

Has the volume of manufacturing jobs decreased? Again, yes. Over the past quarter century, those same efficiencies coupled with the offshoring of jobs, have caused the overall volume to decrease. In the four-county Milwaukee metro, the latest figures showed about 114,000 area residents employed in manufacturing compared to about 165,000 in 2000.

That said, the loss of manufacturing jobs is not indicative of a post-manufacturing economy here. Quite the contrary. We need to continue growing the sector through expansion and attraction efforts as well as advocating for common-sense policy at the local, state and federal levels.

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Growing our manufacturing base is vital for a strong local economy. These are good jobs – paying about 20 percent more on average compared to those in the service industry. We can lift the fortunes of this generation and those that follow by providing the right opportunities.

On a macro level, investing in manufacturing is also in the best interest of our national well-being. Growing a resilient supply chain will ensure parts are made right here in the United States. Countries like China are cheating by stealing intellectual property and knowhow while providing direct government support to bolster manufacturing and exports. This is a clear threat to the rules of international free trade and presents a substantial threat to national security, our economy and, therefore, our way of life.

Milwaukee is fast becoming home to advanced manufacturing

The cliché about manufacturing floors being dirty, dark and dangerous is a relic of decades past. Today, Milwaukee is fast becoming home to advanced manufacturing. Our density of advanced manufacturing jobs is nearly twice the national average.

Look no further than Rockwell, a global leader in industrial automation, manufacturing products that help businesses optimize their production. Rockwell’s operations paint a perfect picture of advanced manufacturing, conducting it themselves while helping clientele move in the same direction. 

At the same time, Microsoft’s historic $3.3 billion investment in a cutting-edge data center will drive AI-powered production in the region. Having forward-thinking manufacturers in an environment where an investment like this is being made makes it clear that Milwaukee is a place where the information technology economy is intersecting with the manufacturing sector. It’s a good spot to be in.

There’s more good news. This spring, the region was named one of 12 U.S. Regional Technology and Innovation Hubs. The designation, focused here on biohealth and personalized medicine, is expected to create more than 30,000 direct jobs, 110,000 indirect jobs and produce a $9 billion economic impact over the next decade.

But the work is just beginning.

Organizations like MMAC, it’s economic development arm – the Milwaukee 7 Regional Partnership (M7) – and partner organizations driving economic growth are working on a number of fronts to create an environment welcoming to manufacturers moving to or expanding in our region. We have a story to tell, this region is where the software economy is intersecting with the traditional hardware economy. 

We need to recruit and retain talent. And welcome immigrants.

One of the demands this will place on southeastern Wisconsin is a workforce ready to meet the moment. We already hear our manufacturing members say attracting and retaining talent is a huge challenge. That said, MMAC is working to bring real-world manufacturing programming, such as robotics and other advanced manufacturing education, to high school classrooms in our area. Sparking an interest in our students and making them realize they can thrive in this sector is the first step in getting them into a manufacturing career.  

In a region where population has stagnated, we also need to be welcoming to an immigrant population that can help us meet the staffing needs necessary to be competitive. Smart immigration policy is paramount in building a strong, growing workforce in southeastern Wisconsin so the history of manufacturing brainpower and muscle is intertwined with the story of immigration.

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Lastly, our tax policy needs to be economically feasible for companies looking to move, or even stay here. That’s why it’s critical Wisconsin retains the Manufacturing and Agricultures Activities Credit – which allows business to keep income derived from manufacturing tax free. Losing this credit would force many to look elsewhere – most likely states with no income taxes – to do business.   

Opportunity is knocking in our region. In getting back to baseball, one could liken our current situation to being at the plate with the bases loaded. If we take the right approach, it could be a really productive at bat.  

Dale Kooyenga is president of the Metropolitan Milwaukee Association of Commerce.