RECOGNIZED INDUSTRY LEADERSHIP DRIVES MANUFACTURING ADVANCEMENTS IN WISCONSIN. ® WHY MANUFACTURERS CHOOSE WISCONSIN We build things in Wisconsin. And we’re good at it. We established our manufacturing leadership in the industrial age, and that leadership continues in today’s knowledge economy. Technological advancements made by Wisconsin manufacturers have kept Wisconsin at the forefront of industry trends, in both productivity and sustainability. A fundamental part of Wisconsin’s manufacturing performance is an integrated supply chain that combines ingenuity, versatility and responsiveness. Wisconsin’s manufacturers keep production lines humming not only in our state, but throughout the world. INDUSTRY ADVANTAGES With more than 9,400 manufacturers in the state employing over 450,000 workers (nearly 17 percent of the state’s entire employees),1 Wisconsin consistently ranks among the nation’s top states for manufacturing jobs per capita. Wisconsin has demonstrated its resiliency in manufacturing by continuing to add jobs in the sector, ranking 5th in the nation for manufacturing job creation from 2009 through 2012.2 Wisconsin manufacturers produced nearly $50 billion worth of output in 2012, accounting for over 19 percent of the state’s gross domestic product.3 Tapping Wisconsin’s unique infrastructure assets to create exceptional business growth are companies in the electrical equipment, dairy product, converted paper, glass and glass product, and soap, cleaning, and toiletry manufacturing subsectors, all of which grew by more than 20 percent from 2008 to 2011.4 9 453 ,419 MANUFACTURERS ,819 EMPLOYED 17% 1 5 4 17+83 ENTIRE STATE’S EMPLOYEES A critical component of Wisconsin’s manufacturing strength is the 2 3 state’s unique geography and the infrastructure that was literally built to support the industry. Wisconsin’s central location and its access to 23 ports and three international airports—all connected by a reliable interstate highway system—have produced a transportation and logistics capability that delivers a competitive advantage for manufacturers operating in the state. Wisconsin’s proximity to Chicago, the national epicenter of rail, highway, and air transportation, provides yet another avenue for both inbound and outbound manufacturing shipments. Of course, such growth would not be possible without a capable and adaptable workforce. Wisconsin possesses one of the highest quality manufacturing workforces in the nation. Wisconsin’s electrical equipment manufacturing industry location quotient, for example, is 6.65,4 meaning there are more than six times the number of workers in that industry in Wisconsin than the national average. This industry is by no means an outlier when it comes to demonstrated workforce readiness. Dairy product; turbine and power transmission equipment; and industrial machinery manufacturing all have employment numbers well over four times the national average. These employees are driven by a Midwestern work ethic that stresses responsibility and productivity and an education that focuses on workplace readiness. Wisconsin ranks second in the nation in its high school Bureau of Labor Statistics, Quarterly Census of Employment and Wages, Annual 2012 Employment Bureau of Labor Statistics, Quarterly Census of Employment and Wages, Annual 2012 Employment 3 Bureau of Economic Analysis 4 Manufacturing Performance Institute, The Wisconsin Economic Future Study Statewide and Regional Analysis, June 2013 1 2 graduation rate and the University of Wisconsin System (UW System) is consistently ranked as one of the nation’s top public university systems. It consists of 26 universities spanning the state, enrolling approximately 181,000 students each year. Complementing this public university system are 20 private universities and 16 technical colleges. The state’s 100-year-old technical college system—the first and top-rated system in the nation—serves one out of every eight adults in the state (twice the national average) with more than 500 technical outreach training locations. TOP WISCONSIN MANUFACTURING EMPLOYMENT CATEGORIES WISCONSIN MANUFACTURING HEADLINES RANK Milwaukee-Waukesha-West Allis area was named by Forbes as one of the “Top 10 Cities Leading the U.S. Manufacturing Revival” after the machine tools and precision equipment industry boosted its employment by 3.6 percent, to 118,000 jobs, in 2012. (Forbes, 2012) Area Development magazine recognized Wisconsin as a Top 10 state for manufacturing gross state product and overall manufacturing jobs. Wisconsin ranked No. 2 in the country for manufacturing share of non-farming manufacturing employment at 16.3 percent. (Area Development, 2012) MANUFACTURING CATEGORY ANNUAL 2012 EMPLOYMENT AVERAGE ANNUAL PAY 1 Fabricated Metal Product Mfg. (332) 72,232 $48,378 2 Machinery Mfg. (333) 66,531 $60,235 3 Food Mfg. (311) 62,239 $42,875 4 Paper Mfg. (322) 30,797 $60,320 5 Plastics and Rubber Products Mfg. (326) 29,298 $45,893 6 Printing and Related Support Activities (323) 28,968 $45,212 7 Transportation Equipment Mfg. (336) 26,484 $60,071 8 Electrical Equipment, Appliance Mfg. (335) 22,468 $65,353 9 Computer and Electronic Product Mfg. (334) 19,920 $69,986 10 Primary Metal Mfg. (331) 17,625 $53,404 Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages Annual 2012 Employment Recognizing the importance of manufacturing to the state’s economy and the role that continuous innovation plays in the industry, Wisconsin state government provides specific incentives to manufacturers to help maximize their production in the state. Chief among them is the Manufacturing and Agriculture Credit, which virtually eliminates the tax on income from manufacturing activity in Wisconsin. 201 W Washington Avenue, Madison, WI 53703 • 855-INWIBIZ • INWISCONSIN.COM 2 GLOBAL LEADERSHIP Wisconsin’s global leadership in manufacturing was built and is sustained by synergistic relationships between industry participants and the economic and professional development organizations serving them—all of whom share a commitment to continuous improvement. The WISCONSIN MANUFACTURING EXTENSION PARTNERSHIP (WMEP) enhances the success of Wisconsin’s small to midsize manufacturers through innovative and accessible services that draw upon the organization’s deep expertise in areas ranging from supply chain management to export strategy development. Notable programs WMEP provides include: • The State of Wisconsin made Hanna’s decision to relocate from Illinois overwhelmingly clear. —Kimball — Bradley President Hanna Cylinders WISCONSIN PROFITABLE SUSTAINABILITY INITIATIVE (PSI) – Only program of its kind in the U.S., helps small and midsize manufacturers develop sustainable practices that save money and improve competitiveness. PSI uses a multidisciplinary approach to sustainability, using partners with specialized expertise to help drive improvements. On average, companies realize annual savings of $147,783. • EXPORTECH™ – Three-session training and proven follow-up method to develop or expand an export program for small to midsize manufacturers. Targeted training focuses on a company’s specific needs and increases speed-tomarkets for products. Within the first year of completion, companies on average increase sales by $900,000. • ACCELERATE – Proven supplier improvement solution which involves a customizable blend of high-level strategic consulting and hands-on assistance designed to make suppliers faster, leaner, and more flexible to OEM’s across the country. On average, reduces manufacturing critical-path time by 43 percent, helping companies cut costs and increase revenue. The UW−STOUT MANUFACTURING OUTREACH CENTER (MOC), a partnership between UW−Stout and five technical schools (Chippewa Valley, Nicolet Area, North-Central Western, Wisconsin Indianhead), is dedicated to increasing manufacturing efficiency and decreasing waste. The partnership, established in 1994, provides services in the areas of energy management, lean manufacturing, PSI, ExportTech, and much more. The UW−EXTENSION DIVISION OF ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT fosters, supports, and coordinates entrepreneurship and economic development activities occurring at the University of Wisconsin campuses and the communities they serve. In order to accomplish this goal, UW−Extension utilizes three major centers: • University of Wisconsin–Extension SMALL BUSINESS DEVELOPMENT CENTER – Works with business owners and entrepreneurs throughout the state to facilitate business growth and improvement and to launch successful new companies. • CENTER FOR TECHNOLOGY COMMERCIALIZATION – Provides support and resources to bring innovations to market through assistance with funding acquisition efforts. • CENTER FOR COMMUNITY TECHNOLOGY SOLUTIONS – Works across all four UW−Extension divisions to bring the potential and economic benefit of broadband (high speed Internet) to communities across Wisconsin. 201 W Washington Avenue, Madison, WI 53703 • 855-INWIBIZ • INWISCONSIN.COM 3 The N.E.W. MANUFACTURING ALLIANCE partners with manufacturers throughout northeast Wisconsin to strengthen the region’s position as a world leader in advanced manufacturing capabilities. The NORTH COAST MARINE MANUFACTURERS ALLIANCE brings together seven shipbuilding companies and three educational partners to develop and promote the region as a leader in marine design, engineering, and production. Among the many Wisconsin-based companies contributing to the state’s manufacturing leadership are some of the world’s most recognized brands: • Brady Corporation • Kohler Company • Briggs & Stratton Corporation • Menasha Corporation • Epic Systems Corporation • Plexus Corporation • Foremost Farms USA • Quad Graphics, Inc. • Harley Davidson, Inc. • Rockwell Automation, Inc. • Johnson Controls, Inc. • SC Johnson & Son, Inc. CUTTING-EDGE ACADEMIC PROGRAMS AND INDUSTRY-ACADEMIC COLLABORATIONS In addition to the economic development resources available to help Wisconsin manufacturers succeed, companies operating here benefit from a rich history and ongoing tradition of collaboration between the private sector, state government and academia—all of whom share a commitment to industry advancement. In partnership with manufacturers across the state, the University of Wisconsin System has achieved center-of-excellence status for more than 100 programs geared toward maximizing the state’s manufacturing capabilities—from developing new technologies to improving logistics efficiency and response time. The statewide economic impact of these centers of excellence is $15 billion per year, underscoring the value they add to Wisconsin’s manufacturing industry. MIT-CERTIFIED FABRICATON LABS IN WISCONSIN Five fabrication labs (fab labs) in Wisconsin have received worldrenowned MIT certification. These labs provide widespread access to state-of-the-art facilities where academia and industry come together to devise new solutions to market challenges. These labs provide companies an economical means to conduct product testing and prototyping while also serving as high-tech business incubation centers. Among the technologies Wisconsin’s MIT-certified fab labs offer to businesses looking to test new ideas are the following: • Computer-controlled laser cutter, for press fit-assembly of 3D structures from 2D parts • Large numerically controlled milling machine for furniture and house-sized parts • Sign cutter, to produce printing masks, flexible circuits, and antennas • Precision (micron resolution) milling machine to make three dimensional molds and surface mount circuit boards • Programming tools for low-cost high-speed embedded processors 1 Wisconsin’s manufacturing ecosystem brings together the public and private sectors, including school administrators, teachers and students, to ensure that the right resources are made available to continue the industry’s positive momentum. 5 4 2 1 2 3 4 5 3 University of Wisconsin–Stout Stoughton High School Gateway Technical College Fox Valley Technical College – Oshkosh Fox Valley Technical College – Appleton 201 W Washington Avenue, Madison, WI 53703 • 855-INWIBIZ • INWISCONSIN.COM 4 UW−MADISON • QUICK RESPONSE MANUFACTURING CENTER (QRM) – Not-for-profit consortium of companies, faculty and students at UW-Madison that researches and implements lead time reduction principles. • ENGINE RESEARCH CENTER – World leading research and educational center performing research on spark ignitions and diesel engines. The Energy Research Center’s work includes groundbreaking low temperature combustion research. • WISCONSIN ELECTRIC MACHINES AND POWER ELECTRONICS CONSORTIUM (WEMPEC) – Fosters the growth of advanced electrical energy conversion technologies and their many applications in Wisconsin industry. Since its founding in 1981, the Consortium has drawn sponsorship from such companies as Boeing, Mercury Marine, and Chrysler. • ADVANCED MATERIALS INDUSTRIAL CONSORTIUM – Partnership between commercial partners and the University of Wisconsin−Madison dedicated to the research of advanced materials. UW−STEVENS POINT • WISCONSIN INSTITUTE FOR SUSTAINABLE TECHNOLOGY (WIST) − Supports business development with applied research and laboratory services. UW−STOUT • DISCOVERY CENTER − Fulfilling UW-Stout’s polytechnic focus of multidisciplinary research, the Discovery Center provides transformative education, strategic collaboration and resultsfocused technical assistance to business and industry. MARQUETTE UNIVERSITY • CENTER FOR SUPPLY CHAIN MANAGEMENT − Nationally recognized supply chain management program that gives students real world experience while providing businesses access to the newest advances in supply chain management education. MILWAUKEE SCHOOL OF ENGINEERING • RAPID PROTOTYPING CENTER − Works with companies to cut costs in early-stage product development through the use of highly advanced machinery. UW−MILWAUKEE • ENERGY ADVANCEMENT CENTER – Provides ground-breaking collaboration between academia and industry in the city of Milwaukee. The University and Johnson Controls partnered to build a state-of-the-art dry lab, which opened in 2012 with technology far surpassing that found on a typical academic campus. 201 W Washington Avenue, Madison, WI 53703 • 855-INWIBIZ • INWISCONSIN.COM 5 GATEWAY TECHNICAL COLLEGE • IMET CENTER − 61,000 square foot educational fabrication lab and flexible manufacturing training center, built in partnership with Johnson Controls, provides training to enhance the skills of Wisconsin’s manufacturing workforce through a variety of programs, certifications and apprenticeships. WORLDWIDE IMPACT Manufactured goods account for 85% of all Wisconsin exports, demonstrating a healthy worldwide demand for products and technologies originating in the state. Mature markets as well as developing economies across the globe benefit from the proven expertise Wisconsin companies have developed and successfully applied both domestically and internationally. Consistently making Wisconsin’s top export rankings are Industrial Machinery, Electrical Machinery, and Medical and Scientific Instruments. These three categories accounted for more than 57% of Wisconsin’s total manufacturing exports in 2013 and will continue to be economic drivers well into the future. WISCONSIN MANUFACTURING EXPORT DESTINATIONS RANK COUNTRY 2012 WI MANUFACTURING EXPORTS 1 Canada $6,271,400,836 2 Mexico $2,078,767,482 3 China $1,381,286,920 4 Japan $820,407,325 5 Australia $634,167,382 6 United Kingdom $606,128,373 7 Germany $590,681,856 8 Chile $458,083,439 9 France $446,794,024 10 Brazil $426,687,397 WEDC subscribes to the World Trade Atlas, an online service of Global Trade Information Services, Inc., http://www.gtis.com/gta/, for trade data. The ultimate source for the data is the the Automated Export System (AES) that is used by U.S. exporters to electronically declare their international shipments to the U.S. Census Bureau. 201 W Washington Avenue, Madison, WI 53703 • 855-INWIBIZ • INWISCONSIN.COM 6 WHY WISCONSIN? Centrally located in the United States’ leading manufacturing and agricultural region, Wisconsin is one of the best places for business. Generations of business leaders have recognized the advantages our major ports provide, giving them quick access to markets throughout the country and around the world. Plus, our transportation infrastructure allows distribution of goods and services rapidly, reaching many markets within one day. Beyond location, Wisconsin’s highly skilled workforce has been recognized around the world for its industrious, Midwestern work ethic. We enjoy a high quality of life with one of the lowest cost-of-living indices in the country. And businesses located in Wisconsin face a very low risk of natural disasters—decreasing the risk of downtime and reduced productivity. It’s not just the people and ports that strengthen Wisconsin. Our business climate is attractive to companies looking to expand, relocate or establish North American operations. Our initiatives and policies are boosting our economy and creating an environment where businesses succeed. In addition, we offer a highly integrated, responsive network of public and private organizations ready to assist companies interested in Wisconsin. 201 W Washington Avenue, Madison, WI 53703 • 855-INWIBIZ • INWISCONSIN.COM 7