Manufacturing in Wisconsin: An Industry Perspective
Manufacturing in Wisconsin: An Industry Perspective
DWSI-15233-P (N. 07/2006)
Foreword This report provides a descriptive overview of the manufacturing industry in Wisconsin. It is designed as an informational report for employers, Workforce Development Boards, Job Center partners, workers considering careers in the industry, and job seekers skilled in the manufacturing trades. We hope you will find it useful. It is the second in a series of industry perspectives planned for release over the next year. Your feedback on this publication is welcome. Please contact us weekdays, 8:30 am to 4:30 pm, at (608) 267-9613. The information reported here is for private sector firms only.
What is in the Manufacturing Industry? According to the North American Industrial Classification System (NAICS): “The manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products ... The subsectors in the Manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills.” Advanced manufacturing deserves special mention as a subcategory of manufacturing. According to The National Council for Advanced Manufacturing: “Advanced manufacturers make extensive use of computer, high precision, and information technologies integrated with a high performance workforce in a production system capable of furnishing a heterogeneous mix of products in small or large volumes, with both the efficiency of mass production and the flexibility of custom manufacturing in order to respond rapidly to customer demands.” Advanced manufacturing is not directly identifiable from the NAICS coding scheme.
Wisconsin Manufacturing Summary
2001
2004
565,166
507,827
-10.1%
Number of Firms
9,972
9,576
-4.0%
Avg Weekly Wage
$751
$853
13.6%
Employment
Older Workers Portion (age 45 & older)
38%
43%
Male Worker Portion
68%
70%
% Change
Source: Quarterly Census of Employment and Wages (QCEW), 2001-2004, Bureau of Workforce Information (BWI), Division of Workforce Solutions (DWS), Wisconsin Department of Workforce Development (DWD).
Note: Employment and Wage figures in this report reflect non-economic NAICS code changes, in addition to actual economic events. Non-economic code changes generally result from previous classification errors, and thus do not represent actual economic changes. Quarterly Census of Employment and Wages (QCEW) and Local Employment Dynamics (LED) data presented in this publication are based on annual averages. Suggested citation: Wisconsin Department of Workforce Development, Division of Workforce Solutions, Bureau of Workforce Information. Manufacturing: A Wisconsin Industry Perspective, June 2006. DWSI -15233-P (N. 07/2006)
Manufacturing in Wisconsin Manufacturing Employment, Wisconsin, 2004 Food Beverage and tobacco products Textile mills Textile product mills Apparel Leather and allied products Wood products Paper Printing and related support activities Petroleum and coal products Chemicals Plastics and rubber products Nonmetallic mineral products Primary metal Fabricated metal products Machinery Computer and electronic products Electrical equipment and appliances Transportation equipment Furniture and related products Miscellaneous
61,951 3,154 1,686 2,053 1,606 1,321 26,351 39,454 34,832 376
● ● ● ●
33,675
11,046 19,960
69,211 68,838 22,641 24,689 37,048 16,712 16,011 0
●
15,214
10,000
20,000
30,000
40,000 50,000 Employment
60,000
70,000
80,000
Source: Local Employment Dynamics (LED), 2004, U.S. Census Bureau
In 2004, manufacturing employment in Wisconsin averaged 507,827 workers. Employment ranged from a high of 516,034 in the third quarter to a low of 498,242 in the first quarter. Five subsectors employed over half of the state’s manufacturing workers. The Fabricated Metal Products and Machinery Manufacturing subsectors together employed more than 27% of manufacturing workers. Food, Paper, and Transportation Equipment combined employed an additional 27% of manufacturing workers. A high proportion of manufacturing workers (43%) were 45 years or older. This represented a five-percentage point increase between 2001 and 2004 (see inside front cover). Thirty percent of manufacturing workers were females in 2004, a decrease of two percentage points since 2001 (see inside front cover) In three of the largest manufacturing subsectors (Food, Fabricated Metal Products, and Machinery), employment as a percent of total manufacturing was higher in Wisconsin compared to U.S. figures. These three subsectors together constituted 40% of Wisconsin’s total manufacturing employment and 29% of U.S. manufacturing employment in 2004. Manufacturing: United States and Wisconsin Food Beverage and tobacco products Textile mills Textile product mills Apparel Leather and allied products Wood products Paper Printing and related support activities Petroleum and coal products Chemicals Plastics and rubber products Nonmetallic mineral products Primary metal Fabricated metal products Machinery Computer and electronic products Electrical equipment and appliances Transportation equipment Furniture and related products Miscellaneous
10.5% 0.6% 0.4% 0.4%
1.7%
United States
1.2%
0.3% 0.3% 0.3%
2.0%
Wisconsin 3.8%
5.2%
3.5%
7.7%
4.6% 0.1%
12.2%
1.4%
6.6%
0.8%
6.2%
2.9%
2.2%
5.6%
3.5% 3.3%
6.6%
4.0%
10.4%
13.8%
8.0%
3.1%
3
9.2%
4.5% 4.9%
4.0% 3.4% 4.6% 3.2%
0
13.6%
12.4%
7.3%
6 9 Percent of Total Manufacturing
12
15
Source: QCEW, 2004, Bureau of Labor Statistics (BLS) and BWI, DWS, DWD.
A Wisconsin Industry Perspective
●
Number of Manufacturing Firms by Size Category, Wisconsin, 2004 Manufacturing subsectors (n = 9,576)
1-19
Food
20-99 100-249
485
288
103
52
Beverage and tobacco product
49
18
4
2
Textile mills
11
8
8
0
114
15
4
1
Textile product mills Apparel
71
17
2
1
Leather and allied product
24
13
2
0
377
181
36
21
73
124
48
42
695
187
47
23
7
3
1
0
190
112
17
7
Plastics and rubber products
210
187
65
29
Nonmetallic mineral product
256
86
18
7
52
61
35
22
1,179
541
122
33
Machinery
734
388
92
46
Computer and electronic products
172
94
31
20
81
65
36
26
125
66
25
40
Wood product Paper Printing and related support activities Petroleum and coal products Chemicals
Primary metal Fabricated metal product
Electrical equipment and appliances Transportation equipment Furniture and related product
385
106
19
9
Miscellaneous
469
128
27
6
5,759
2,688
742
387
Totals (n = 9,576)
●
250+
●
● ●
● ●
Overall, manufacturing is dominated by small firms. Firms with less than 100 employees account for nearly 90% of manufacturing firms. Paper, Primary Metal, Electrical Equipment, and Transportation Equipment manufacturing subsectors are dominated by larger-than-average size firms. Paper, Primary Metals, Electrical Equipment, and Transportation Equipment together constituted only 10% of manufactuiring firms, but 24% of manufacturing employment. During 2004, the average weekly wage in all manufacturing industries amounted to $853 per week for full-time equivalent employment. Average weekly wages varied considerably among manufacturing subsectors. Average wages ranged from $522 per week in the Apparel subsector to over $1,200 per week in the Chemicals subsector. Employment in the over $1,000-per-week subsectors make up about 23% of manufacturing employment. The Transportation Equipment, Machinery, and Paper subsectors make up about 29% of all manufacturing employment. The average wage in each of these three subsectors is over $900 per week.
Source: QCEW, 2004, BWI, DWS, DWD.
Wisconsin Average Weekly Wage in Manufacturing, 2004 ALL MANUFACTURUING
$853
Food
$701
Beverage and tobacco products
$817 $829
Textile mills Textile product mills
$594
Apparel
$522
Leather and allied products
$596 $592
Wood products Paper
$1,009
Printing and related support activities
$766
Petroleum and coal products
$1,071
Chemicals
$1,217
Plastics and rubber products
$721
Nonmetallic mineral product
$806 $858 $792
Primary metal Fabricated metal products Machinery
$970
Computer and electronic products
$1,108 $962 $1,025
Electrical equipment and appliances Transportation equipment Furniture and related products
$693 $735
Miscellaneous
$0
$300
$600
$900
Average Weekly Wage
$1,200
$1,500
Source: LED, 2004, U.S. Census Bureau.
Manufacturing
Wages and Employment, 2001-2004 ●
From 2001 to 2004, the average weekly wages for manufacturing increased. The wage growth for workers in All Manufacturing amounted to nearly 14% during the threeyear period.
●
The increase in manufacturing wages (13.6%) aligned inversely with an overall drop in statewide manufacturing employment (-10.1%).
●
The most dramatic wage increases over the two-year period were in the Computer and Electronic Products (by 23%) subsector, and Elecrical Equipment, Appliance & Components (by 22%) subsector. Average weekly wages in these two subsectors were high and well above the average for all manufacturing subsectors.
Percent Change in Manufacturing Employment and Wages, Wisconsin, 2001-2004 -10%
ALL MANUFACTURUING
14% -3%
Food
6% +23%
-15%
+26% Textile mills
15% -26%
Apparel
-9%
-53%
Leather and allied products
17% -10%
Wood products
10%
-20%
Paper
7% -12%
Printing and related support activities
12%
-12%
Petroleum and coal products
4% 0%
Employment (% change)
+1% +2%
Plastics and rubber products
13%
Nonmetallic mineral products
10%
-8%
Fabricated metal products
14%
-18%
Electrical equipment and appliances
22% -8%
-8% -10
Transportation equipment
19%
-6%
-20
Computer and electronic products
23%
-20%
-30
Machinery
18%
-14%
-40
Primary metal
20%
-7%
-50
Chemicals
18%
Wages (% change)
-60
Textile product mills
21%
-41%
Beverage and tobacco products
0
10
15%
Furniture and related products
15%
Miscellaneous
20
30
Source: LED, 2001-2004, U.S. Census Bureau.
A Wisconsin Industry Perspective
Gender by Age Number and Percentage Workers in Manufacturing by Gender, Age, Wisconsin, 2004
DWSI-15233-P (N. 07/2006)
Foreword This report provides a descriptive overview of the manufacturing industry in Wisconsin. It is designed as an informational report for employers, Workforce Development Boards, Job Center partners, workers considering careers in the industry, and job seekers skilled in the manufacturing trades. We hope you will find it useful. It is the second in a series of industry perspectives planned for release over the next year. Your feedback on this publication is welcome. Please contact us weekdays, 8:30 am to 4:30 pm, at (608) 267-9613. The information reported here is for private sector firms only.
What is in the Manufacturing Industry? According to the North American Industrial Classification System (NAICS): “The manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products ... The subsectors in the Manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills.” Advanced manufacturing deserves special mention as a subcategory of manufacturing. According to The National Council for Advanced Manufacturing: “Advanced manufacturers make extensive use of computer, high precision, and information technologies integrated with a high performance workforce in a production system capable of furnishing a heterogeneous mix of products in small or large volumes, with both the efficiency of mass production and the flexibility of custom manufacturing in order to respond rapidly to customer demands.” Advanced manufacturing is not directly identifiable from the NAICS coding scheme.
Wisconsin Manufacturing Summary
2001
2004
565,166
507,827
-10.1%
Number of Firms
9,972
9,576
-4.0%
Avg Weekly Wage
$751
$853
13.6%
Employment
Older Workers Portion (age 45 & older)
38%
43%
Male Worker Portion
68%
70%
% Change
Source: Quarterly Census of Employment and Wages (QCEW), 2001-2004, Bureau of Workforce Information (BWI), Division of Workforce Solutions (DWS), Wisconsin Department of Workforce Development (DWD).
Note: Employment and Wage figures in this report reflect non-economic NAICS code changes, in addition to actual economic events. Non-economic code changes generally result from previous classification errors, and thus do not represent actual economic changes. Quarterly Census of Employment and Wages (QCEW) and Local Employment Dynamics (LED) data presented in this publication are based on annual averages. Suggested citation: Wisconsin Department of Workforce Development, Division of Workforce Solutions, Bureau of Workforce Information. Manufacturing: A Wisconsin Industry Perspective, June 2006. DWSI -15233-P (N. 07/2006)
Manufacturing in Wisconsin Manufacturing Employment, Wisconsin, 2004 Food Beverage and tobacco products Textile mills Textile product mills Apparel Leather and allied products Wood products Paper Printing and related support activities Petroleum and coal products Chemicals Plastics and rubber products Nonmetallic mineral products Primary metal Fabricated metal products Machinery Computer and electronic products Electrical equipment and appliances Transportation equipment Furniture and related products Miscellaneous
61,951 3,154 1,686 2,053 1,606 1,321 26,351 39,454 34,832 376
● ● ● ●
33,675
11,046 19,960
69,211 68,838 22,641 24,689 37,048 16,712 16,011 0
●
15,214
10,000
20,000
30,000
40,000 50,000 Employment
60,000
70,000
80,000
Source: Local Employment Dynamics (LED), 2004, U.S. Census Bureau
In 2004, manufacturing employment in Wisconsin averaged 507,827 workers. Employment ranged from a high of 516,034 in the third quarter to a low of 498,242 in the first quarter. Five subsectors employed over half of the state’s manufacturing workers. The Fabricated Metal Products and Machinery Manufacturing subsectors together employed more than 27% of manufacturing workers. Food, Paper, and Transportation Equipment combined employed an additional 27% of manufacturing workers. A high proportion of manufacturing workers (43%) were 45 years or older. This represented a five-percentage point increase between 2001 and 2004 (see inside front cover). Thirty percent of manufacturing workers were females in 2004, a decrease of two percentage points since 2001 (see inside front cover) In three of the largest manufacturing subsectors (Food, Fabricated Metal Products, and Machinery), employment as a percent of total manufacturing was higher in Wisconsin compared to U.S. figures. These three subsectors together constituted 40% of Wisconsin’s total manufacturing employment and 29% of U.S. manufacturing employment in 2004. Manufacturing: United States and Wisconsin Food Beverage and tobacco products Textile mills Textile product mills Apparel Leather and allied products Wood products Paper Printing and related support activities Petroleum and coal products Chemicals Plastics and rubber products Nonmetallic mineral products Primary metal Fabricated metal products Machinery Computer and electronic products Electrical equipment and appliances Transportation equipment Furniture and related products Miscellaneous
10.5% 0.6% 0.4% 0.4%
1.7%
United States
1.2%
0.3% 0.3% 0.3%
2.0%
Wisconsin 3.8%
5.2%
3.5%
7.7%
4.6% 0.1%
12.2%
1.4%
6.6%
0.8%
6.2%
2.9%
2.2%
5.6%
3.5% 3.3%
6.6%
4.0%
10.4%
13.8%
8.0%
3.1%
3
9.2%
4.5% 4.9%
4.0% 3.4% 4.6% 3.2%
0
13.6%
12.4%
7.3%
6 9 Percent of Total Manufacturing
12
15
Source: QCEW, 2004, Bureau of Labor Statistics (BLS) and BWI, DWS, DWD.
A Wisconsin Industry Perspective
●
Number of Manufacturing Firms by Size Category, Wisconsin, 2004 Manufacturing subsectors (n = 9,576)
1-19
Food
20-99 100-249
485
288
103
52
Beverage and tobacco product
49
18
4
2
Textile mills
11
8
8
0
114
15
4
1
Textile product mills Apparel
71
17
2
1
Leather and allied product
24
13
2
0
377
181
36
21
73
124
48
42
695
187
47
23
7
3
1
0
190
112
17
7
Plastics and rubber products
210
187
65
29
Nonmetallic mineral product
256
86
18
7
52
61
35
22
1,179
541
122
33
Machinery
734
388
92
46
Computer and electronic products
172
94
31
20
81
65
36
26
125
66
25
40
Wood product Paper Printing and related support activities Petroleum and coal products Chemicals
Primary metal Fabricated metal product
Electrical equipment and appliances Transportation equipment Furniture and related product
385
106
19
9
Miscellaneous
469
128
27
6
5,759
2,688
742
387
Totals (n = 9,576)
●
250+
●
● ●
● ●
Overall, manufacturing is dominated by small firms. Firms with less than 100 employees account for nearly 90% of manufacturing firms. Paper, Primary Metal, Electrical Equipment, and Transportation Equipment manufacturing subsectors are dominated by larger-than-average size firms. Paper, Primary Metals, Electrical Equipment, and Transportation Equipment together constituted only 10% of manufactuiring firms, but 24% of manufacturing employment. During 2004, the average weekly wage in all manufacturing industries amounted to $853 per week for full-time equivalent employment. Average weekly wages varied considerably among manufacturing subsectors. Average wages ranged from $522 per week in the Apparel subsector to over $1,200 per week in the Chemicals subsector. Employment in the over $1,000-per-week subsectors make up about 23% of manufacturing employment. The Transportation Equipment, Machinery, and Paper subsectors make up about 29% of all manufacturing employment. The average wage in each of these three subsectors is over $900 per week.
Source: QCEW, 2004, BWI, DWS, DWD.
Wisconsin Average Weekly Wage in Manufacturing, 2004 ALL MANUFACTURUING
$853
Food
$701
Beverage and tobacco products
$817 $829
Textile mills Textile product mills
$594
Apparel
$522
Leather and allied products
$596 $592
Wood products Paper
$1,009
Printing and related support activities
$766
Petroleum and coal products
$1,071
Chemicals
$1,217
Plastics and rubber products
$721
Nonmetallic mineral product
$806 $858 $792
Primary metal Fabricated metal products Machinery
$970
Computer and electronic products
$1,108 $962 $1,025
Electrical equipment and appliances Transportation equipment Furniture and related products
$693 $735
Miscellaneous
$0
$300
$600
$900
Average Weekly Wage
$1,200
$1,500
Source: LED, 2004, U.S. Census Bureau.
Manufacturing
Wages and Employment, 2001-2004 ●
From 2001 to 2004, the average weekly wages for manufacturing increased. The wage growth for workers in All Manufacturing amounted to nearly 14% during the threeyear period.
●
The increase in manufacturing wages (13.6%) aligned inversely with an overall drop in statewide manufacturing employment (-10.1%).
●
The most dramatic wage increases over the two-year period were in the Computer and Electronic Products (by 23%) subsector, and Elecrical Equipment, Appliance & Components (by 22%) subsector. Average weekly wages in these two subsectors were high and well above the average for all manufacturing subsectors.
Percent Change in Manufacturing Employment and Wages, Wisconsin, 2001-2004 -10%
ALL MANUFACTURUING
14% -3%
Food
6% +23%
-15%
+26% Textile mills
15% -26%
Apparel
-9%
-53%
Leather and allied products
17% -10%
Wood products
10%
-20%
Paper
7% -12%
Printing and related support activities
12%
-12%
Petroleum and coal products
4% 0%
Employment (% change)
+1% +2%
Plastics and rubber products
13%
Nonmetallic mineral products
10%
-8%
Fabricated metal products
14%
-18%
Electrical equipment and appliances
22% -8%
-8% -10
Transportation equipment
19%
-6%
-20
Computer and electronic products
23%
-20%
-30
Machinery
18%
-14%
-40
Primary metal
20%
-7%
-50
Chemicals
18%
Wages (% change)
-60
Textile product mills
21%
-41%
Beverage and tobacco products
0
10
15%
Furniture and related products
15%
Miscellaneous
20
30
Source: LED, 2001-2004, U.S. Census Bureau.
A Wisconsin Industry Perspective
Gender by Age Number and Percentage Workers in Manufacturing by Gender, Age, Wisconsin, 2004
