A Hopeful Outlook: The 2025 State of Wisconsin Manufacturing Report

Manufacturing has had its challenges in recent years. But things are looking up, according to Ann Franz, Executive Director of the Northeast Wisconsin Manufacturing Alliance (NEWMA). I had the pleasure of interviewing Ann for a recent episode of The Changeover Podcast where we discussed the findings in the 15th annual Manufacturing Vitality Index Report. For example:

• 93% of manufacturers report being financially healthy
• 66% expect higher sales in 2025

Despite a hopeful outlook, manufacturers still struggle to find skilled workers and adopt new technologies. And there are a lot of disruptors in the industry, including AI.

To face these headwinds requires a mindshift. As Ann noted, “If you want to go fast, go alone; but if you want to go far, go together.”

Read on for the top takeaways from our conversation — or watch the full episode for all the details:

Check out episode 13 of The ChangeOver now, then subscribe on Apple, YouTube, Spotify, Weidert.com, or your favorite podcast app.

Same Story, New Strategies: Workforce Challenges

There’s still a worker shortage in manufacturing. That’s not news to those still struggling to hire (and keep) good workers. The good news is there has been a decline in companies reporting difficulty finding talent — 58% vs. 84% last year — and technology is helping to fill the gap. Ann stressed the importance of:

• Investing in existing employees to ensure they feel valued and empowered to succeed in their roles
• Knowledge and education will need to be leveraged more than ever
• Efforts need to be made to attract K-12 students to manufacturing careers as many older workers retire

“We don’t have enough human beings for all the jobs, so technology and collaboration are critical.”

 The Rise of Industry 4.0

Industry 4.0 has gained a lot of traction in recent years, and manufacturers are investing heavily in the latest technologies including cybersecurity, cloud computing, IoT, and automation. They’re not just investing in the technology, however, they’re also investing in the people who use it.

NEWMA has trained 600+ employees in data analytics over the past four years, and over 500 employees from member companies have participated in AI training programs within just one year.

The report indicates other initiatives to strengthen their technologies:

• 67% of companies plan to invest in generative AI, up from almost no awareness of the technology just a few years ago
• 53% of manufacturers are investing in plant modernization
• Cybersecurity is the #1 investment focus among manufacturers adopting Industry 4.0 technologies

“Companies have all these systems, but Industry 4.0 is about connecting them—and using that connection to drive better outcomes."

Collaboration as a Competitive Advantage

Each company still needs to guard its secret sauce, but Ann suggests that collaboration among manufacturers will be a key to success moving forward. Manufacturers compete on a global scale and not necessarily with their neighbors. By working together, manufacturers can share resources, knowledge, and best practices, fostering innovation and efficiency. 

Organizations like NEWMA can help by bringing manufacturers, educators, and workforce development leaders together to solve common challenges, proving that no company has to navigate these shifts alone. What might that look like?

• Shared Knowledge and Resources: Manufacturers can learn from each other’s successes and challenges, reducing trial-and-error efforts
• Stronger Workforce Development: Partnerships with schools and training organizations help address skill gaps and attract new talent
• Collective Innovation: Collaborative efforts can drive advancements in technology adoption, such as AI, IoT, and automation
• Global Competitiveness: Working together strengthens the region’s manufacturing ecosystem
• Efficient Problem-Solving: By leveraging a network of peers, manufacturers can tackle issues they face

“We're so much better together than trying to do everything in a silo and doing it on your own.”

Actionable Takeaways for Manufacturers

Starting small with Industry 4.0 investments, such as adopting data analytics or automation tools, allows manufacturers to build a foundation for larger technological advancements. Simultaneously, focusing on training and upskilling current teams ensures that employees are prepared to work with new technologies and adapt to industry changes. 

Organizations like NEWMA provide valuable resources, connections, and guidance to help manufacturers navigate these transitions effectively. To thrive in the coming years, they’ll need to:

• Leverage technology and data to identify inefficiencies and prioritize improvements
• Invest in AI to remain competitive
• Build cross-functional teams to foster a culture of collaboration and learning
• Strengthen partnerships with local schools to develop a talent pipeline
• Collaborate with others in the industry

“The first step leads to the next—don’t wait to move your company forward.”

Move Boldly Into the Future

Embracing innovation and collaboration is critical for the future of manufacturing. My conversation with Ann Franz of NEWMA underscores the challenges facing today’s manufacturers, but also the opportunities. As manufacturers plan for the future, embracing innovation and partnerships will be critical to staying competitive in an increasingly globalized and technology-driven industry.

To learn more and dive deeper into these insights, listen to the full podcast episode, and subscribe to future episodes to continue learning. And if you’d like to work with a collaborative partner to help boost your sales and marketing efforts, reach out!