|
|
On the rebound
|
|
Northeast Wisconsin manufacturers are optimistic and the numbers bear them out
|
|
By Rick Berg, November, 2009
|
-
Dan Kostrova, machinist at Lindquist Machine in Green Bay
-
-
-
-
A lot of reliable signs point to a rebound in the manufacturing economy nationwide, and manufacturers in Northeast Wisconsin reflect that with a somewhat unexpected level of optimism, according to one survey of manufacturing leaders.
Nicolet National Bank’s most recent Business Pulse survey found that 72 percent of manufacturing CEOs and owners are somewhat or very optimistic about the future of manufacturing in Northeast Wisconsin.
“Given the current economic context, the results from the manufacturing sector were more positive and upbeat than I was anticipating,” says David Wegge, president of IntellectualMarketing, which conducted the survey for Nicolet National Bank. “They show the optimism and resilience of the manufacturers in the New North.”
There’s reason for the optimism. According to the Institute for Supply Management, based in Tempe, Ariz., manufacturing nationwide expanded in August after 18 consecutive months of contraction. The Federal Reserve reports that manufacturing production began to increase in July.
ISM says there’s reason to believe that the expansion has staying power, since manufacturer inventories have been steadily declining, requiring manufacturers to pump up production to meet any new demand.
In the Business Pulse survey, 72 percent of manufacturers say their inventory levels are about right and 12 percent say their inventories are lower than they would prefer, and 68 percent expect to increase production in 2010.
Paul Rauscher, president of EMT International in Green Bay and a founding member of the Northeast Wisconsin Manufacturing Alliance, says most of the manufacturers he talks with would agree with the Business Pulse survey findings.
“It’s a mixed bag, of course,” says Rauscher. “A lot of people have taken hits over the last couple of years, but manufacturing people I talk to around here are pretty optimistic. Part of that is because pretty much everyone agrees that the economy has bottomed out.”
Jim Golembeski, executive director of the Bay Area Workforce Development Board, says he’s not surprised at all by the level of optimism expressed in the survey.
“Although we’ve been through a rough patch, the impression I get from manufacturers I talk to around here is that many of them have done better than the manufacturing sector as a whole,” says Golembeski.
“I think that’s true for a number of reasons. Number one, the ones who have held their own are those who have been fairly diversified and not put all their eggs in one basket,” he adds. “Second, many of our local manufacturers have become highly evolved in terms of upgrading their technology and processes and also upgrading the skills of their employees through training.”
Rauscher’s company fits Golembeski’s description pretty well and has more than held its own during the downturn.
“We’re extremely optimistic about the future, because EMT International has actually been able to grow and increase our workforce during a down market,” says Rauscher.
James Denis, business development manager for Velocity Machine in Green Bay, says his company has managed modest growth this year, in part because of a contract with Oshkosh Corp., which has several large military orders in its pipeline.
“The Oshkosh contract really helped us out,” says Denis. “We’ll likely end up with 2 or 3 percent growth this year, and we expect about the same next year, with a lot of things picking up in the third or fourth quarter of next year.”
Rauscher was among those driving the creation of the NEW Manufacturing Alliance in 2006 because of concerns that manufacturers were going to need to replace their retiring workforce and also upgrade the skills of their workers. The workforce development focus of the Alliance might have lacked urgency for manufacturers who were laying off workers in the past year or so, but Rauscher says the need is still there.
“A lot of people probably haven’t been thinking about that lately, but we’re still going to be facing a worker and talent shortage and this is something that can come back and bite us if we don’t continue to develop a workforce with the skills we need to continue to grow,” he says.
|
|
|
|
|
|
|
|