The Wisconsin Economic Future Study Statewide and Regional Analysis DISCLAIMER This publication was prepared for the Wisconsin Economic Development Corporation (WEDC). The statements, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the view of the WEDC.
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Table of Contents and Table of Tables 1 Executive Summary ................................................................................................. 1-1 1.1 Wisconsin Economy ............................................................................................................................... 1-1 1.2 Key Study Findings ................................................................................................................................ 1-2 1.2.1 Wisconsin Economic Performance ..................................................................................................... 1-2 1.2.2 Statewide Driver Industries ................................................................................................................ 1-2 Figure 1-1 Overview of Wisconsin’s Statewide Drivers ................................................................. 1-5 1.2.3 Wisconsin Regional Drivers ................................................................................................................ 1-6 1.2.4 Industry Clusters ................................................................................................................................. 1-6 Figure 1-2 Structure of a Competitive Industry Cluster ................................................................ 1-7 Table 1-1 Statewide Driver Industries ........................................................................................... 1-8 Table 1-2 Matrix of Wisconsin’s Driver Industries in the State and by Region ............................. 1-9 1.3 Wisconsin and Competitive States ...................................................................................................... 1-11 Table 1-3 Wisconsin performance, eight competitive, and the United States ........................... 1-11 1.4 Wisconsin Business Readiness, Climate, and Challenges .................................................................... 1-13 1.4.1 Readiness among Manufacturers ..................................................................................................... 1-13 Table 1-4 Strategy importance to organization success over the next five years ....................... 1-14 Table 1-5 Organization progress toward world-class status ....................................................... 1-15 1.4.2 Business Climate ............................................................................................................................... 1-15 1.5 Conclusion ........................................................................................................................................... 1-16 Table 1-6 Ranking of Driver Industries, Location Quotient ......................................................... 1-19 Table 1-7 Ranking of Driver Industries, Output Growth ............................................................. 1-20 Table 1-8 Ranking of Driver Industries, Gross Product ............................................................... 1-21 2 The Wisconsin Economic Future Study .................................................................... 2-1 2.1 The Analysis ........................................................................................................................................... 2-1 Figure 2-1 Structure of a Competitive Industry Cluster ................................................................ 2-2 2.2 Wisconsin and Its Eight Competing States ............................................................................................ 2-2 2.3 Wisconsin’s Seven Economic Regions ................................................................................................... 2-3 Figure 2-2 Economic Regions in the state of Wisconsin ................................................................ 2-4 2.4 Information Dating and Data Sets ......................................................................................................... 2-4 2.5 NAICS Definition and Hierarchical Structure ......................................................................................... 2-5 3 Statewide Historic Trends ....................................................................................... 3-1 3.1 Employment .......................................................................................................................................... 3-1 Figure 3-1 Historical Employment Trends for the State of Wisconsin and the United States, 1978-2011 ................................................ 3-1 3.2 Gross State Product ............................................................................................................................... 3-2 Figure 3-2 Historical Gross State Product for the State of Wisconsin and Gross Domestic Product in the United States, 1978-2011 ........................................... 3-2 Figure 3-3 Employment and Gross State Product ($Mil) Historical Trends for the State of Wisconsin, 1978-2011 ........................................................................ 3-3 3.3 Productivity ........................................................................................................................................... 3-4 Figure 3-4 Historical Productivity for the State of Wisconsin and the United States, 1978-2011 3-4 4 Wisconsin and Competing States ............................................................................ 4-1 4.1 Employment .......................................................................................................................................... 4-1 Table 4-1 Employment for Wisconsin, Competing States, and the United States, 2000, 2003, 2007-2011 ............................................................. 4-1
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Table 4-2 Percentage Change in Employment for Wisconsin, Competing States, and the United States .................................................................................................... 4-2 Table 4-3 Employment by Industry Sector for Wisconsin, Competing States, and the United States, 2011 .......................................................................................... 4-4 Table 4-4 Employment Shares by Industry Sector for Wisconsin, Competing States, and the United States, 2011 .......................................................................................... 4-5 Table 4-5 Employment Shares by Industry Sector for Wisconsin, 2000, 2003, 2007-2011 .......... 4-6 4.2 Gross State Product ............................................................................................................................... 4-7 Table 4-6 Gross State Product for Wisconsin, Competing States, and the United States, 2000, 2003, 2007-2011X ........................................................... 4-7 Table 4-7 Gross State Product Percentage Change for Wisconsin, Competing States, and the United States .................................................................................................... 4-7 Table 4-8 Gross State Product ($Mil) by Industry Sector for Wisconsin, Competing States, and the United States, 2011 .......................................................................................... 4-9 Table 4-9 Gross State Product Shares by Industry Sector for Wisconsin, Competing States, and the United States, 2011 ........................................................................................ 4-10 Table 4-10 Gross Product Shares by Industry Sector for Wisconsin, 2000, 2003, 2007-2011 .... 4-11 4.3 Productivity ......................................................................................................................................... 4-12 Table 4-11 Productivity for Wisconsin, Competing States, and the United States, 2000, 2003, 2007-2011 ......................................................... 4-12 Table 4-12 Productivity Change for Wisconsin, Competing States, and the United States ................................................................................................ 4-13 4.4 Capital Expenditures ............................................................................................................................ 4-14 Table 4-13 Total Value of Manufacturing Capital Expenditures ($Mil) for Wisconsin, Competing States, and the United States, 2005-2010 ............................................... 4-14 Table 4-14 Percentage Change in Total Value of Manufacturing Capital Expenditures for Wisconsin, Competing States, and the United States .......................................... 4-15 Table 4-15 Total Value of Manufacturing Capital Expenditures Normalized by Gross State Manufacturing Product, 2005-2010 ................................................... 4-15 4.5 Shipments ............................................................................................................................................ 4-16 Table 4-16 Total Value of Manufacturing Shipments ($Mil) for Wisconsin, Competing States, and the United States, 2004-2010 .............................................. 4-16 Table 4-17 Total Value of Manufacturing Shipments Normalized by Gross State Manufacturing Product, 2004-2010 ....................................................... 4-17 Table 4-18 Percent Change Total Value of Manufacturing Shipments for Wisconsin, Competing States, and the United States ............................................... 4-17 4.6 Detailed Tables .................................................................................................................................... 4-18 A.4-1 Employment by Industry Sector for Wisconsin, Competing States, and the United States, 2010 ...................................................................................... 4-18 A.4-2 Employment Shares by Industry Sector for Wisconsin, Competing States, and the United States, 2010 ...................................................................................... 4-19 A.4-3 Gross State Product by Industry Sector for Wisconsin, Competing States, and the United States, 2010 ...................................................................................... 4-20 A.4-4 Gross State Product Shares by Industry Sector for Wisconsin, Competing States, and the United States, 2010 ...................................................................................... 4-21 5 Wisconsin Statewide Driver Industries and Industry Clusters .................................. 5-1 5.1 Overview of Statewide Drivers .............................................................................................................. 5-1 Table 5-1 Matrix of Wisconsin’s Driver Industries in the State and by Region ............................ 5-3 5.2 Summary of Regional Driver Industries & Industry Clusters ................................................................ 5-5 Table 5-2 Statewide Driver Industries ........................................................................................... 5-5 5.2.1 How Are Wisconsin’s Statewide Drivers Doing? ................................................................................. 5-6
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Figure 5-1 Overview of Wisconsin’s Statewide Drivers ................................................................. 5-7 5.2.2 Driver and Industry Cluster Relationships in the State of Wisconsin ................................................ 5-8 Table 5-3 State & National Supplier Industries Common to State Driver Industries .................... 5-9 Table 5-4 National Supplier Industries Common to State Driver Industries ............................... 5-10 5.3 Profiles of the Driver Industries and Their Industry Clusters .............................................................. 5-11 5.3.1 Food Manufacturing—NAICS 311 ..................................................................................................... 5-12 5.3.1.1 NAICS 3114 Fruit & Vegetable Preserving & Specialty Food Manufacturing ................................ 5-13 5.3.1.2 NAICS 3115 Dairy Product Manufacturing .................................................................................... 5-15 5.3.2 Leather and Allied Product Manufacturing (Partial)—NAICS 316 ................................................... 5-18 5.3.2.1 NAICS 3161 Leather and Hide Tanning and Finishing .................................................................... 5-19 5.3.2.2 NAICS 3162 Footwear Manufacturing ........................................................................................... 5-20 5.3.3 Wood Product Manufacturing (Partial)—NAICS 321 ........................................................................ 5-21 5.3.3.1 NAICS 3212 Veneer, Plywood, and Engineered Wood Product Manufacturing ............................ 5-22 5.3.4 Paper Manufacturing (Complete)—NAICS 322 ............................................................................... 5-26 5.3.3.2 NAICS 3221 Pulp, Paper, and Paperboard Mills ............................................................................ 5-27 5.3.3.3 NAICS 3222 Converted Paper Product Manufacturing .................................................................. 5-29 5.3.5 Printing and Related Support Activities—NAICS 3231 (or 323) ....................................................... 5-31 5.3.6 Soap, Cleaning Compound, and Toilet Preparation Manufacturing—NAICS 3256 ......................... 5-35 5.3.7 Plastics Product Manufacturing—NAICS 3261 ................................................................................ 5-38 5.3.8 Nonmetallic Mineral Product Manufacturing (Partial)—NAICS 327 ................................................ 5-41 5.3.8.1 NAICS 3272 Glass and Glass Product Manufacturing .................................................................... 5-42 5.3.8.2 NAICS 3279 Other Nonmetallic Mineral Product Manufacturing .................................................. 5-44 5.3.9 Foundries—NAICS 3315 ................................................................................................................... 5-46 5.3.10 Fabricated Metal Product Manufacturing (Partial)—NAICS 332 ................................................... 5-49 5.3.10.1 NAICS 3321 Forging and Stamping .............................................................................................. 5-50 5.3.10.2 NAICS 3322 Cutlery and Handtool Manufacturing ...................................................................... 5-52 5.3.10.3 NAICS 3324 Boiler, Tank, and Shipping Container Manufacturing .............................................. 5-52 5.3.10.4 NAICS 3325 Hardware Manufacturing ........................................................................................ 5-53 5.3.10.5 NAICS 3326 Spring and Wire Product Manufacturing ................................................................. 5-54 5.3.10.6 NAICS 3327 Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing ........... 5-55 5.3.10.7 NAICS 3328 Coating, Engraving, Heat Treating, and Allied Activities ......................................... 5-57 5.3.10.8 NAICS 3329 Other Fabricated Metal Product Manufacturing ..................................................... 5-59 5.3.11 Machinery Manufacturing (Complete)—NAICS 333 ....................................................................... 5-61 5.3.11.1 NAICS 3331 Agriculture, Construction, and Mining Machinery Manufacturing ......................... 5-62 5.3.11.2 NAICS 3332 Industrial Machinery Manufacturing ....................................................................... 5-63 5.3.11.3 NAICS 3333 Commercial and Service Industry Machinery Manufacturing ................................. 5-64 5.3.11.4 NAICS 3334 Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing ................................................................ 5-65 5.3.11.5 NAICS 3335 Metalworking Machinery Manufacturing ............................................................... 5-67 5.3.11.6 NAICS 3336 Engine, Turbine, and Power Transmission Equipment Manufacturing ................... 5-68 5.3.11.7 NAICS 3339 Other General Purpose Machinery Manufacturing ................................................. 5-69 5.3.12 Electrical Equipment, Appliance, and Component Manufacturing—NAICS 335 ............................ 5-71 5.3.12.1 NAICS 3352 Household Appliance Manufacturing ...................................................................... 5-72 5.3.12.2 NAICS 3353 Electrical Equipment Manufacturing ....................................................................... 5-74 5.3.13 Transportation Equipment Manufacturing—NAICS 336 ............................................................... 5-76 5.3.13.1 NAICS 3362 Motor Vehicle Body and Trailer Manufacturing ...................................................... 5-77 5.3.13.2 NAICS 3369 Other Transportation Equipment Manufacturing ................................................... 5-78 5.3.14 Furniture and Related Product Manufacturing (Complete)—NAICS 337 ...................................... 5-80 5.3.14.1 NAICS 3371 Household and Institutional Furniture and Kitchen Cabinet Manufacturing .......... 5-82 5.3.14.2 NAICS 3372 Office Furniture (including Fixtures) Manufacturing ............................................... 5-83 5.3.14.3 NAICS 3379 Other Furniture Related Product Manufacturing .................................................... 5-84 5.3.15 Electronic Shopping and Mail-Order Houses—NAICS 4541 .......................................................... 5-85 Appendix .................................................................................................................................................... 5-87
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Table 5-5 Ranking of Driver Industries, Location Quotient ......................................................... 5-87 Table 5-6 Ranking of Driver Industries, Output Growth ............................................................. 5-88 Table 5-7 Ranking of Driver Industries, Gross Product ............................................................... 5-89 6 Wisconsin’s Business Climate .................................................................................. 6-1 6.1 Exports in Wisconsin’s Driver Industries ............................................................................................... 6-1 Table 6-1. Food Manufacturing Exports—NAICS 311 (Drivers 3114, 3115) .................................. 6-2 Table 6-2 Leather and Allied Product Manufacturing Exports—NAICS 316 (Drivers 3161, 3162) ............................................ 6-2 Table 6-3 Wood Product Manufacturing Exports—NAICS 321 (Drivers 3212, 3219) .................... 6-3 Table 6-4 Paper Manufacturing Exports—NAICS 322 (Drivers 3221, 3222) .................................. 6-3 Table 6-5 Printing and Related Support Activities Exports—NAICS 323 (Driver 3231) ................. 6-4 Table 6-6 Chemical Manufacturing Exports—NAICS 325 (Driver 3256) ........................................ 6-4 Table 6-7 Plastics and Rubber Products Manufacturing Exports—NAICS 326 (Driver 3261) ........ 6-5 Table 6-8 Non-Metallic Mineral Product Manufacturing Exports—NAICS 327 (Drivers 3272, 3279) ............................................ 6-5 Table 6-9 Primary Metal Manufacturing Exports—NAICS 331 (Driver 3315) ............................... 6-6 Table 6-10 Fabricated Metal Products Manufacturing Exports—NAICS 332 (Drivers 3321, 3322, 3324, 3325, 3326, 3327, 3328, 3329) .......................................... 6-6 Table 6-11 Machinery Manufacturing Exports—NAICS 333 (Drivers 3331, 3332, 3333, 3334, 3335, 3336, 3339) .................................................... 6-7 Table 6-12 Electrical Equipment, Appliance, and Component Manufacturing Exports—NAICS 335 (Drivers 3352, 3353) ........................ 6-7 Table 6-13 Transportation Equipment Manufacturing Exports— NAICS 336 (Drivers 3362, 3369) .................................................................................... 6-8 Table 6-14 Furniture and Related Product Manufacturing Exports— NAICS 337 (Drivers 3371, 3372, 3379) .......................................................................... 6-8 Table 6-15 Total Export by Wisconsin in 2011, by 3-digit NAICS .................................................. 6-9 6.2 Innovation Analysis ............................................................................................................................. 6-10 6.2.1 Analysis of Technology-Intensive Industries .................................................................................... 6-10 Table 6-16 Definition of Technology-Intensive Industries .......................................................... 6-11 Table 6-17 Wisconsin’s Share of GSP from Technology-Intensive Industries, 2011 ................... 6-12 Figure 6-1 Share of GSP from Technology-Intensive Manufacturing Industries, 2011 ............... 6-13 Table 6-18 GSP Produced by Technologically-Intensive Industries in Wisconsin, Eight Competing States, and the United States ......................................................... 6-14 Figure 6-2 Percentage of GSP by Technologically-Intensive Industries in Wisconsin, Eight Competing States, and the United States .......................................................... 6-14 Table 6-19 Wisconsin’s Share of Employment from Technology-Intensive Industries, 2011 ..... 6-15 Table 6-20 Employment of Wisconsin, Eight Competing States, and the United ....................... 6-15 Figure 6-3 Percentage of Employment in Wisconsin, Eight Competing States, and the United States ................................................................................................. 6-16 Figure 6-4 Level of Specialization among Technology-Intensive Industries in Wisconsin ........... 6-17 Table 6-21 GDP of Very Technology-Intensive Industries in Wisconsin’s Seven Regions ........... 6-19 Figure 6-5 GDP of Very Technology-Intensive Industries in Wisconsin’s Seven Regions ............ 6-19 Table 6-22 Employment of Very Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-20 Figure 6-6 Percentage of Employment of Very Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-20 Table 6-23 GDP of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-21 Figure 6-7 GDP of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-21
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Table 6-24 Employment of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-22 Figure 6-8 Employment of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-22 Table 6-25 GDP of Low Technology-Intensive Industries in Wisconsin’s Seven Regions ............ 6-23 Figure 6-9 GDP of Low Technology-Intensive Industries in Wisconsin’s Seven Regions ............. 6-23 Table 6-26 Employment of Low Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-24 Figure 6-10 Employment of Low Technology-Intensive Industries in Wisconsin’s Seven Regions...................................................................................... 6-24 6.2.2 Analysis of Patenting ........................................................................................................................ 6-25 6.2.2.1 Patent Data .................................................................................................................................... 6-25 Table 6-27 Annual Number of Patent Applications, 2001-2011 ................................................. 6-25 6.2.2.2. Geography and Ownership ........................................................................................................... 6-26 Table 6-28 Matrix of Patents by Geography and Ownership ...................................................... 6-26 Table 6-29 Ownership of Patents by Geography ........................................................................ 6-26 Table 6-30 Industrial and Academic R&D Funds and Patenting in WI, 2001-2009 ..................... 6-27 Table 6-31 Correlation between the Number of Patents and R&D Funds, 2001-2009 ............... 6-28 6.2.2.3. Patenting and R&D ....................................................................................................................... 6-27 Table 6-30 Industrial and Academic R&D Funds and Patenting in WI, 2001-2009 ..................... 6-27 Table 6-31 Correlation between the Number of Patents and R&D Funds, 2001-2009 ............... 6-28 6.2.2.4 Patenting Profile of Wisconsin ...................................................................................................... 6-28 Table 6-32 Frequencies and Description of the Top 25 IPC Codes of Patents, 2001-2011 ......... 6-29 Table 6-33 Top 25 IPC Codes of Company-owned Patents, 2001-2011 ...................................... 6-30 Table 6-34 Top 50 Patenting Companies, 2001-2011 ................................................................. 6-31 Table 6-35 Top 15 Companies in WI and their top 3 IPC Codes, 2001-2011 ............................... 6-33 6.3 Wisconsin Workforce .......................................................................................................................... 6-35 6.3.1 Educational Attainment .................................................................................................................... 6-35 Table 6-36 Percent Distribution of Educational Attainment of WI and U.S. Adults (age 25 and older) ..................................................................................... 6-35 6.3.2 Wisconsin Employment by Sector .................................................................................................... 6-36 6.3.3 Analysis of Manufacturing Jobs ........................................................................................................ 6-37 Table 3-37 Percentage Change in the Number of Jobs by Sector and Skill Level, 2000-2011 .... 6-39 Table 6-38 Jobs in Wisconsin by Sector and Occupational Skill Level, 2000, 2006, 2008, & 2011 ............................................ 6-40 Table 6-39 Percent distribution of jobs in Wisconsin by Sector and Occupational skill level, 2000, 2006, 2008, 2011 ........................................................ 6-41 Table 6-40 Number of Manufacturing Jobs in Wisconsin by Occupational Skill Category and Level of Educational Attainment, 2011 ................................................................ 6-42 Table 6-41 Percentage Breakdown of Skill and Educational Composition of Wisconsin’s Manufacturing Occupations, 2011 ...................................................... 6-43 6.3.4 Higher Education Appropriations ..................................................................................................... 6-44 Table 6-42 Wisconsin and Eight Competitive States — Appropriations for Colleges and Financial Aid, FY2013 .............................................. 6-44 6.4 Wisconsin Manufacturing Growth Strategies ...................................................................................... 6-45 6.4.1 NGM Strategy Importance and Execution ........................................................................................ 6-46 Table 6-43 Strategy Importance to Organization Success Over the Next Five Years .................. 6-46 Table 6-44 Organization Progress Toward World-class Status.................................................... 6-46 6.4.2 Key NGM Success Factors ................................................................................................................. 6-47 Table 6-45 Sufficient Talent and Development Program in Place to Drive NGM Strategy ......... 6-47 Table 6-46 State-of-the-Art Business Systems and Equipment to Support NGM Long-term Strategy .......................................................................... 6-47 Table 6-47 Generic or No NGM Strategy ..................................................................................... 6-48
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6.4.3 Key NGM Performances ................................................................................................................... 6-48 Table 6-48 Generic or No NGM Strategy ..................................................................................... 6-48 6.4.4 Generational Leadership and Outside Support ................................................................................ 6-48 Table 6-49 Outside Support — Ongoing or as Needed ............................................................... 6-49 6.4.5 NGM Conclusion and Profile Characteristics of NGM Manufacturers .............................................. 6-49 Table 6-50 Key NGM Profile Characteristics ............................................................................... 6-50 6.5 Business Climate Factors ..................................................................................................................... 6-51 6.5.1 Overall Business Competitiveness .................................................................................................... 6-51 Table 6-51 Wisconsin and Eight Competitive States — America’s Top States for Business 2012 ..................................................................... 6-51 Table 6-52 Wisconsin and Eight Competitive States — Best States for Business 2012 ..................................................................................... 6-52 Table 6-53 Wisconsin and Eight Competitive States — Site Selection’s Top 2012 State Business Climate Rankings ........................................ 6-53 6.5.2 Taxes and Competitiveness .............................................................................................................. 6-53 Table 6-54 Wisconsin and Eight Competitive States — 2013 State Tax Business Climate Index ....................................................................... 6-54 Table 6-55 Wisconsin and Eight Competitive States — Tax and Spend Criteria ......................... 6-55 6.5.3 Broadband Coverage ........................................................................................................................ 6-55 Table 6-56 Wisconsin and Eight Competitive States — Broadband Coverage ............................ 6-56 6.5.4 Healthcare ........................................................................................................................................ 6-56 Table 6-57 Wisconsin and Eight Competitive States — Healthcare Expenditures per Capita by State of Residence, 2009 .............................. 6-57 6.6 Wisconsin Challenges and Issues ......................................................................................................... 6-58 6.6.1 Workforce ......................................................................................................................................... 6-58 6.6.2 Global Competitors........................................................................................................................... 6-59 6.6.3 Regulatory Pressure .......................................................................................................................... 6-60 6.6.4 Infrastructure ................................................................................................................................... 6-60 7 Central Region ........................................................................................................ 7-1 7.1 Introduction ........................................................................................................................................... 7-1 7.2 Summary of Regional Driver Industries & Industry Clusters ................................................................. 7-2 7.2.1 How Are the Central Region’s Driver Industries Doing? ..................................................................... 7-3 Figure 7-1 Overview of the Central Region Drivers ....................................................................... 7-3 7.2.2 Driver and Industry Cluster Relationships in the Central Region ....................................................... 7-5
Table 7-1 Regional & National Supplier Industries Common to Regional Driver Industries ......... 7-6 Table 7-2 National Supplier Industries Common to Regional Driver Industries ............................ 7-7 7.3 Detailed Descriptions of the Regional Driver Industries ........................................................................ 7-8 7.3.1 Driver Industry Definitions ................................................................................................................. 7-8 7.3.2 Industry Clusters ............................................................................................................................... 7-11
Figure 7-2 Industry Clusters ........................................................................................................ 7-11 7.3.3 Top Firms by Driver Industry in the Central Region ......................................................................... 7-24 7.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, Central Region ................. 7-33
Table 7-3 Employment in the Central Region’s Driver Industries, 2000-2011 ............................ 7-33 Table 7-4 Percentage Change for Employment in the Central Region’s Driver Industries, 2000-2011 ................................................. 7-34 Table 7-5 Labor Location Quotients* - Central Region’s Driver Industries, 2003-2011 .............. 7-35 Table 7-6 Gross Product in the Central Region’s Driver Industries, 2000-2011 .......................... 7-36
Table 7.7 Percentage Change for Growth Product in the Central Region’s Driver Industries, 2000-2011 ................................................. 7-37
Table 7-9 Productivity (Gross Product per Employee) of Driver Industries, Central Region, 2000-2011 .......................................................................................... 7-39
8 East Central Region ................................................................................................. 8-1 8.1 Introduction ........................................................................................................................................... 8-1 8.2 Summary of Regional Driver Industries & Industry Clusters ................................................................. 8-1 8.2.1 How Are the East Central Region’s Driver Industries Doing? ............................................................. 8-3 Figure 8-1 Overview of the East Central Region Drivers ............................................................... 8-3 8.2.2 Driver and Industry Cluster Relationships in the East Central Region ................................................ 8-6
Table 8-1 Regional & National Supplier Industries Common to Regional Driver Industries ......... 8-7 Table 8-2 National Supplier Industries Common to Regional Driver Industries ............................ 8-8 8.3 Detailed Descriptions of the Regional Driver Industries ........................................................................ 8-9 8.3.1 Driver Industry Definitions ................................................................................................................. 8-9 8.3.2 Industry Clusters ............................................................................................................................... 8-12
Figure 8-2 Industry Clusters ........................................................................................................ 8-12 8.3.3 Top Firms by Driver Industry in the East Central Region ................................................................. 8-29 8.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, East Central Region .......... 8-49
Table 8-3 Employment in the East Central Region’s Driver Industries, 2000-2011 .................... 8-49 Table 8-4 Percentage Change for Employment in the East Central Region’s Driver Industries, 2000-2011.......................................... 8-50 Table 8-5 Labor Location Quotients* - East Central Region’s Driver Industries, 2003-2011 ...... 8-51 Table 8-6 Gross Product in the East Central Region’s Driver Industries, 2000-2011 .................. 8-52
Table 8.7 Percentage Change for Growth Product in the East Central Region’s Driver Industries, 2000-2011 ......................................... 8-54
Table 8-8 Output Location Quotients* - East Central Region’s Driver Industries, 2003-2011 .... 8-55 Table 8-9 Productivity (Gross Product per Employee) of Driver Industries, East Central Region, 2000-2011 .................................................................................. 8-56 9 North Region ........................................................................................................... 9-1 9.1 Introduction ........................................................................................................................................... 9-1 9.2 Summary of Regional Driver Industries & Industry Clusters ................................................................. 9-1 9.2.1 How Are the North Region’s Driver Industries Doing? ....................................................................... 9-2 Figure 9-1 Overview of the North Region Drivers ......................................................................... 9-2 9.2.2 Driver and Industry Cluster Relationships in the North Region .......................................................... 9-4
Table 9-1 Regional & National Supplier Industries Common to Regional Driver Industries ......... 9-4 Table 9-2 National Supplier Industries Common to Regional Driver Industries ............................ 9-5 9.3 Detailed Descriptions of the Regional Driver Industries ........................................................................ 9-6 9.3.1 Driver Industry Definitions ................................................................................................................. 9-6 9.3.2 Industry Clusters ................................................................................................................................. 9-9
Figure 9-2 Industry Clusters .......................................................................................................... 9-9 9.3.3 Top Firms by Driver Industry in the North Region ........................................................................... 9-23 9.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, North Region .................... 9-30
Table 9-3 Employment in the North Region’s Driver Industries, 2000-2011 .............................. 9-30 Table 9-4 Percentage Change for Employment in the North Region’s Driver Industries, 2000-2011 ................................................... 9-31 Table 9-5 Labor Location Quotients* - North Region’s Driver Industries, 2003-2011 ................ 9-32 Table 9-6 Gross Product in the North Region’s Driver Industries, 2000-2011 ............................ 9-33
Table 9.7 Percentage Change for Growth Product in the North Region’s Driver Industries, 2000-2011 ................................................... 9-34
Table 9-8 Output Location Quotients* - North Region’s Driver Industries, 2003-2011 .............. 9-35 Table 9-9 Productivity (Gross Product per Employee) of Driver Industries, North Region, 2000-2011 ............................................................................................ 9-36
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10 South Region ....................................................................................................... 10-1 10.1 Introduction ....................................................................................................................................... 10-1 10.2 Summary of Regional Driver Industries & Industry Clusters ............................................................. 10-1 10.2.1 How Are the South Region’s Driver Industries Doing? ................................................................... 10-2 Figure 10-1 Overview of the South Region Drivers ..................................................................... 10-2 10.2.2 Driver and Industry Cluster Relationships in the South Region ...................................................... 10-4
Table 10-1 Regional & National Supplier Industries Common to Regional Driver Industries ..... 10-4 Table 10-2 National Supplier Industries Common to Regional Driver Industries ........................ 10-4 10.3 Detailed Descriptions of the Regional Driver Industries .................................................................... 10-5 10.3.1 Driver Industry Definitions ............................................................................................................. 10-5 10.3.2 Industry Clusters ............................................................................................................................. 10-7
Figure 10-2 Industry Clusters ...................................................................................................... 10-7 10.3.3 Top Firms by Driver Industry in the South Region ....................................................................... 10-16 10.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, South Region ................ 10-22
Table 10-3 Employment in the South Region’s Driver Industries, 2000-2011 .......................... 10-22 Table 10-4 Percentage Change for Employment in the South Region’s Driver Industries, 2000-2011 ................................................. 10-23 Table 10-5 Labor Location Quotients* - South Region’s Driver Industries, 2003-2011 ............ 10-24 Table 10-6 Gross Product in the South Region’s Driver Industries, 2000-2011 ........................ 10-25
Table 10-7 Percentage Change for Growth Product in the South Region’s Driver Industries, 2000-2011 ................................................. 10-26
Table 10-8 Output Location Quotients* - South Region’s Driver Industries, 2003-2011 .......... 10-27 Table 10-9 Productivity (Gross Product per Employee) of Driver Industries, South Region, 2000-2011 .......................................................................................... 10-28 11 Southeast Region ................................................................................................ 11-1 11.1 Introduction ....................................................................................................................................... 11-1 11.2 Summary of Regional Driver Industries & Industry Clusters ............................................................. 11-1 11.2.1 How Are the Southeast Region’s Driver Industries Doing? ............................................................ 11-3 Figure 11-1 Overview of the Southeast Region Drivers .............................................................. 11-3 11.2.2 Driver and Industry Cluster Relationships in the Southeast Region ............................................... 11-5
Table 11-1 Regional & National Supplier Industries Common to Regional Driver Industries ..... 11-6 Table 11-2 National Supplier Industries Common to Regional Driver Industries ........................ 11-7 11.3 Detailed Descriptions of the Regional Driver Industries .................................................................... 11-8 11.3.1 Driver Industry Definitions ............................................................................................................. 11-8 11.3.2 Industry Clusters ........................................................................................................................... 11-12
Figure 11-2 Industry Clusters .................................................................................................... 11-12 11.3.3 Top Firms by Driver Industry in the Southeast Region ................................................................ 11-51 11.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, Southeast Region ....... 11-114
Table 11-3 Employment in the Southeast Region’s Driver Industries, 2000-2011.................. 11-114 Table 11-4 Percentage Change for Employment in the Southeast Region’s Driver Industries, 2000-2011 ......................................... 11-116 Table 11-5 Labor Location Quotients* - Southeast Region’s Driver Industries, 2003-2011 ... 11-117 Table 11-6 Gross Product in the Southeast Region’s Driver Industries, 2000-2011 ............... 11-118
Table 11-7 Percentage Change for Growth Product in the Southeast Region’s Driver Industries, 2000-2011 ......................................... 11-120
12 West Central I Region .......................................................................................... 12-1 12.1 Introduction ....................................................................................................................................... 12-1 12.2 Summary of Regional Driver Industries & Industry Clusters ............................................................. 12-1 12.2.1 How Are the West Central I Region’s Driver Industries Doing? ...................................................... 12-3 Figure 12-1 Overview of the West Central I Region Drivers ........................................................ 12-3 12.2.2 Driver and Industry Cluster Relationships in the West Central I Region ........................................ 12-5
Table 12-1 Regional & National Supplier Industries Common to Regional Driver Industries ..... 12-6 Table 12-2 National Supplier Industries Common to Regional Driver Industries ........................ 12-7 12.3 Detailed Descriptions of the Regional Driver Industries .................................................................... 12-8 12.3.1 Driver Industry Definitions ............................................................................................................. 12-8 12.3.2 Industry Clusters ........................................................................................................................... 12-13
Figure 12-2 Industry Clusters .................................................................................................... 12-13 12.3.3 Top Firms by Driver Industry in the West Central I Region ......................................................... 12-38 12.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, West Central I Region .. 12-49
Table 12-3 Employment in the West Central I Region’s Driver Industries, 2000-2011 ............. 12-49 Table 12-4 Percentage Change for Employment in the West Central I Region’s Driver Industries, 2000-2011 .................................... 12-51 Table 12-5 Labor Location Quotients* - West Central I Region’s
Driver Industries, 2003-2011 .................................................................................... 12-52 Table 12-6 Gross Product in the West Central I Region’s Driver Industries, 2000-2011 ........... 12-53
Table 12.7 Percentage Change for Growth Product in the West Central I Region’s Driver Industries, 2000-2011 .................................... 12-55
Table 12-8 Output Location Quotients* - West Central I Region’s Driver Industries, 2003-2011 .............................................. 12-57
Table 12-9 Productivity (Gross Product per Employee) of Driver Industries, West Central I Region, 2000-2011 ............................................................................ 12-59 13 West Central II Region ......................................................................................... 13-1 13.1 Introduction ....................................................................................................................................... 13-1 13.2 Summary of Regional Driver Industries & Industry Clusters ............................................................. 13-1 13.2.1 How Are the West Central II Region’s Driver Industries Doing? ..................................................... 13-3 Figure 13-1 Overview of the West Central II Region Drivers ....................................................... 13-3 13.2.2 Driver and Industry Cluster Relationships in the West Central II Region ....................................... 13-5
Table 13-1 Regional & National Supplier Industries Common to Regional Driver Industries ..... 13-5 Table 13-2 National Supplier Industries Common to Regional Driver Industries ........................ 13-6 13.3 Detailed Descriptions of the Regional Driver Industries .................................................................... 13-7 13.3.1 Driver Industry Definitions ............................................................................................................. 13-7 13.3.2 Industry Clusters ........................................................................................................................... 13-10
Figure 13-2 Industry Clusters .................................................................................................... 13-10 13.3.3 Top Firms by Driver Industry in the West Central II Region ........................................................ 13-26 13.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, West Central II Region . 13-33
Table 13-3 Employment in the West Central II Region’s Driver Industries, 2000-2011 ............ 13-33 Table 13-4 Percentage Change for Employment in the West Central II Region’s Driver Industries, 2000-2011 ................................... 13-34 Table 13-5 Labor Location Quotients* - West Central II Region’s Driver Industries, 2003-2011 ............................................. 13-35 Table 13-6 Gross Product in the West Central II Region’s Driver Industries, 2000-2011 .......... 13-36
Table 13.7 Percentage Change for Growth Product in the West Central II Region’s Driver Industries, 2000-2011 ................................... 13-37
Table 13-8 Output Location Quotients* - West Central II Region’s Driver Industries, 2003-2011 .................................................................................... 13-38
Wisconsin Economic Future Study xii
Table 13-9 Productivity (Gross Product per Employee) of Driver Industries, West Central II Region, 2000-2011 ........................................................................... 13-39 14 About the Study .................................................................................................. 14-1 14.1 Methodology ..................................................................................................................................... 14-1 14.1.1 Detailed Methodology .................................................................................................................... 14-1 14.1.2 Defining Drivers and Clusters ......................................................................................................... 14-1 Figure 14-1 Structure of a Cluster (from Hill & Brennan, 2000) .................................................. 14-2 14.1.3 Variable Definitions ........................................................................................................................ 14-2 14.1.4 Identifying Driver Industries ........................................................................................................... 14-3 14.1.5 Mathematical Cluster Analysis ....................................................................................................... 14-3 14.1.6 Discriminant Analysis ...................................................................................................................... 14-4 14.1.7 Filtering and Refining Driver Industries .......................................................................................... 14-6 14.1.8 Identifying Industry Clusters ........................................................................................................... 14-6 Figure 14-2 Three Components of an Industry Cluster ............................................................... 14-7 14.1.9 Special Classifications for Industry Clusters ................................................................................... 14-7 14.1.10 Prioritizing Industries in the Industry Clusters ............................................................................ 14-8 14.1.11 Identifying Firms ........................................................................................................................... 14-8 14.1.12 Data Sources for Driver and Cluster Analysis ............................................................................... 14-9 14.2 Glossary of Technical Terms .............................................................................................................. 14-9 14.3 About the Authors ........................................................................................................................... 14-12
Wisconsin Economic Future Study 1-1
1. Executive Summary 1.1 Wisconsin Economy Wisconsin’s economy has weathered the recession and, led by manufacturing industries, rebounded to a position of competitiveness vs. other states. But just as in sluggish economies around the globe, businesses in Wisconsin must continually adapt to emerging trends, to new best business practices, and, most important, to the markets they serve. The Wisconsin Economic Future Study was designed to help the state identify industries that drive economic growth in the state, as well as clearly connect those driver industries with countless others — statewide and within seven Wisconsin regions — that allow the drivers to thrive and deliver economic prosperity to the state and its population. Understanding the connection of industries and how they flourish — or languish — together is critical information upon which to build future economic growth. The Wisconsin Economic Future Study does that by:
• Establishing a pragmatic framework by which to evaluate Wisconsin industries and then identifying industries that drive Wisconsin’s economy based on application of that framework (Chapter 2).
• Examining historical trends in Wisconsin’s business community in recent years (Chapter 3). • Comparing key Wisconsin economic measures with the performances of eight competitive
states (Chapter 4). • Identifying specific Wisconsin driver industries and industry clusters (the establishments that
contribute to drivers) that lead the state’s economy (Chapter 5). • Assessing Wisconsin competitiveness by examining export, innovation, and workforce
performances of Wisconsin’s driver industries compared to competitive states and the United States as a whole, and reviewing the state’s business climate and the challenges it poses for business and government (Chapter 6).
• Identifying driver industries and industry clusters within seven Wisconsin economic regions (Chapters 7-13).
As with many state and regional economies, this study finds that manufacturing is the engine that drives the Wisconsin economy across the state and within regions of the state. Each dollar of manufactured goods in the United States creates another $1.43 of activity in other sectors, and two-thirds of U.S. research and development capacity is concentrated in the manufacturing sector.1 All but one driver industry identified by the Wisconsin Economic Future Study is within manufacturing. But that does not mean that manufacturing alone drives the Wisconsin economy. Manufacturing in the state is inextricably linked to non-manufacturing sectors — financial, legal, logistics, health, accounting, transportation, etc. — for myriad supports, services, and buy-sell relationships.
1 The Economic Overview of Manufacturing, Working for America Institute, 2013.
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1.2 Key Study Findings 1.2.1 Wisconsin Economic Performance Since 2007, Wisconsin has exhibited employment performance comparable to the overall United States.2 But two other statewide indicators — gross state product and productivity (output per worker) — have underperformed vs. national benchmarks.3 Compared to eight states — Georgia, Illinois, Indiana, Michigan, Minnesota, North Carolina, Ohio, and Pennsylvania — that are of a size, industry composition, and competitiveness similar to Wisconsin, the state outperforms some and underperforms others on these key measures, with variations in performance from year to year. Understanding the industries that “drive” the Wisconsin economy and how to better support those industries can help to improve the state’s economic performance. For Wisconsin to take advantage of economic opportunities and improve the state’s performance vs. the country and competitive states, public and private entities must focus on those industries that are most competitive and have the greatest potential for national and global prominence — the state’s driver industries. 1.2.2 Statewide Driver Industries The fundamental methodology for discovering driver industries, the primary economic forces in an economy, is based on an analytical tool developed by Ned Hill and John Brennan; Hill is part of the research team that created this report.4 The statistical methodology of Hill and Brennan differs markedly from other approaches in that it is far more comprehensive and analytical. For the Wisconsin Economic Future Study, the analysis used for identifying driver industries is based on the characteristics of each of the region’s 4-digit NAICS5 industry groups with at least 100 employees in 2011. For each 4-digit industry, a diverse set of 12 variables is used to characterize the individual industry. Each of the variables is an indicator of the past or present economic performance of the industry and represented in two groups: measures of competitiveness (including productivity) and measures of export orientation and regional centrality (including output location quotient). (See Chapter 5 and Chapter 14 for more details.) In contrast to the Hill and Brennan methodology, other common approaches to this type of research are most often limited by oversimplification. Typically, they may look only at (1) a select group of industries instead of all possible industries, (2) case studies with their associated quantitative industry profiles, (3) quantitative analyses that cannot capture industry dynamics, and/or (4) one or very few variables as indicators of industry strength. In short, these other approaches are simply not as robust in scope or as concentrated in economic analysis as the Hill and Brennan methodology.
2 Moody’s Economy.com. 3 Moody’s Economy.com. 4 E. Hill & J. Brennan (2000). A Methodology for Identifying the Drivers and Clusters: The Foundation of Regional Competitive Advantage. Economic Development Quarterly, 14, pp. 65-69. 5 Throughout the Wisconsin Economic Future Study, businesses in the state are, with a few exceptions, described by North American Industry Classification System (NAICS) coding nomenclature (see section 2.5 for details).
Wisconsin Economic Future Study 1-3
Wisconsin is home to 37 statewide driver industries; all but one of the statewide driver industries is manufacturing in nature (the exception is the Electronic Shopping and Mail-order Houses industry group). This should not be surprising given that Wisconsin’s manufacturers employed more than 400,000 workers, carried payrolls of more than $21 billion, and spent more than $91 billon on materials and more than $4 billion on capital expenditures in 2011.6 The gross state product of Wisconsin manufacturing is $51.3 billion.7 While there are many other important non-manufacturing industries throughout Wisconsin that are necessary for the ongoing success of the state’s economy, this study found only one of them to be a driver industry. The 37 statewide driver industries indicate concentrations that afford them a competitive advantage over those industries in other states. From an economic perspective, driver industries are relatively concentrated in a region and produce more goods than can be consumed locally. These companies sell their products outside of the region, thereby bringing new monies back into the region. Thus, they drive regional economic growth.8 It is important to note that a single firm does not comprise an “industry.” Even a small, highly successful firm does not generate enough business volume to meet the threshold for the designation of driver industry. However, such an organization may eventually become or form the catalyst of a driver industry in the future. Remember, too, that even a group of strong product- or service-specific companies, such as local restaurants, are necessary for a vibrant economy but do not typically have the buy-sell relationships outside of the state or outside of the region to constitute a driver industry. Other complex, emerging, and/or evolving industries have not yet been classified within broad government or independent systems in a manner that adequately approximates their economic impact. For example, electronic devices such as smartphones and tablets are as much reliant on downloadable applications that enhance their value as the hardware within these devices, but no one classification has yet to adequately address these combined traits. Similar issues exist with medical equipment as well as the publishing industry (i.e., books viewed on electronic readers). Figure 1-1 expresses the economic health of the driver industries in Wisconsin by two primary factors — their “competitiveness” in terms of export orientation or specialization on the X axis (i.e., the horizontal axis)9 and their “growth” on the Y axis (vertical).
• Competitiveness is measured in terms of the output location quotients, which is a ratio of the industry’s concentration in the state compared to the industry’s concentration nationally. In general, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in Wisconsin than it is nationally. This concentration suggests that the industry exports its products, and that Wisconsin offers competitive advantages to the industry over other states throughout the country. An industry is increasingly more competitive as it moves to the right on the X axis. And the more competitive it is, the more it sells goods outside of Wisconsin, thereby generating revenues for the state’s economy.
6 Annual Survey of Manufactures, United States Census Bureau, 2011 data released in 2012. 7 Moody’s Economy.com. 8 E. Hill & J. Brennan (2000). A Methodology for Identifying the Drivers and Clusters: The Foundation of Regional Competitive Advantage. Economic Development Quarterly, 14, pp. 65-69. 9 The “competitiveness” values appear just below the “0.0%” line on the Y-axis (i.e., vertical axis). “Competitiveness” is marked in even increments—2, 4, 6, 8, 10, and ending with 12 at the far right of the chart.
Wisconsin Economic Future Study 1-4
• Growth is measured in terms of compound annual growth rates, 2008-2011, and is shown
on the Y axis. An industry is growing faster as it moves upward from 0.0%; it is declining if it is below 0.0%. The area (size) of each circle in Figure 1-1 represents the gross product of each industry and indicates the industry’s size compared to the other industries.
Since all of Wisconsin’s 37 driver industries have a location quotient greater than 1.2, indicating competitiveness, they are all more concentrated in the state than in the rest of the nation. This is a significant competitive advantage. And 31 of the 37 driver industries have been growing, 2008-2011.
• Other Nonmetallic Mineral Products has the highest growth rate (34.6%). • Other Wood Product Manufacturing has the lowest growth rate (-27.5%). • Other Transportation Equipment Manufacturing has the highest LQ (9.06), but the industry
has relatively low growth rate (2.8%) compared to Wisconsin’s other driver industries. • Electrical Equipment Manufacturing has both relatively high LQ (6.7) and growth rate
(31.1%). In addition, Electrical Equipment Manufacturing is shown by the largest circle on the chart, which represents the highest gross product among Wisconsin’s industries in 2011.
A comparison of driver industries in this year’s study to 2004 study drivers for Location Quotient, Output Growth, and Gross Product can be found on page 1-19 and in Chapter 5. The 37 statewide driver industries represent Wisconsin’s economic future, not only for the driver industries themselves but for the industry clusters they depend upon when purchasing inputs and selling outputs. They represent a future grounded in manufacturing with the potential for growth and global competitiveness — but not a guaranteed future. Indeed, each of these driver industries faces challenges and opportunities, both within Wisconsin and around the country. Each of the statewide driver industries are analyzed in Chapter 5 of this report, which examines:
o Driver industry definition o Driver challenges o Export changes o Gross product o Employment o Top establishments o Associated industry clusters
Through this analysis of the state’s driver industries, overall strategies and services that will be needed to secure Wisconsin’s economic future can begin to emerge.
Methodology Used to Define Drivers and Clusters A thorough description of the research process and techniques used to identify the drivers and clusters in Wisconsin can be found in the Methodology section of Chapter 14 (About the Study).
Wisconsin Economic Future Study 1-5
Figure 1-1 Overview of Wisconsin’s Statewide Drivers
1.2.3 Wisconsin Regional Drivers Of the 37 statewide driver industries, 30 also are identified as a driver industry in two or more of seven Wisconsin regions (Table 1-1). Some statewide drivers are present in multiple regions. For example, the statewide driver Dairy Product Manufacturing is a driver in all but one region. The boundaries of seven county-based economic regions have been retained from a similar Wisconsin study on manufacturing, conducted in 2004 by the same research team. These economic regions are believed to best represent “economic” rather than political or geographic regions and are inclusive of all counties within the state. For cohesiveness of regional economies, two out-of-state counties were included for studying economic regions: Winnebago County (IL) in the South region and Houston County (MN) in the West Central II region. The seven regions and the counties that comprise each (detailed in Chapters 7-13) are as follows:
Rock, Saulk, Winnebago (IL) • Southeast: Dodge, Fond du Lac, Green Lake, Jefferson, Kenosha, Manitowoc, Milwaukee,
Ozaukee, Racine, Sheboygan, Walworth, Washington, Waukesha • West Central I: Barron, Buffalo, Chippewa, Dunn, Eau Claire, Pepin, Pierce, Polk, St. Croix • West Central II: Jackson, La Crosse, Monroe, Trempealeau, Vernon, Houston (MN)
Wisconsin regions ranked by the number of regional drivers they contain are as follows (Table 1-1):
• Southeast: 41 driver industries in the region. • East Central: 29 driver industries in the region. • West Central I: 29 driver industries in the region. • Central: 20 driver industries in the region. • West Central II: 19 driver industries in the region. • North: 16 driver industries in the region. • South: 12 driver industries in the region.
1.2.4 Industry Clusters The driver industries form the heart of a linked group of companies — industry clusters. Many non-driver industries and their firms are critical components within industry clusters. Clusters are a geographic concentration of firms in the same industry that have close buy-sell relationships with other industries in the region, use common technologies, or share a specialized labor pool that, together, provide the driver-industry firms with a competitive advantage over the same industry in another region, state, or country.
Wisconsin Economic Future Study 1-7
Figure 1-2 Structure of a Competitive Industry Cluster10
Statewide, the cluster-discriminant analysis assembled 287 4-digit NAICS industries into 10 groups (clusters). Each industry is described with 12 economic indicators. Among the economic indicators there are measures that point to industries that are part of the regional base11 (driver industries). These economic indicators include high concentration of industry employment and output in the state (location quotient12 of employment and location quotient of output), high regional wages relative to U.S. wages, large regional industry’s share of national industry output, and high labor productivity. Two of the 10 clusters comprise 37 driver industries. A number of the 37 statewide drivers are closely related by a product they deliver and, as a result, by the use of inputs, shared technology, and labor talent. These industries are grouped under the 3-digit NAICS code and constitute a group of 16 statewide drivers presented in Table 1-1.
10 Hill & Brennan, 2000. 11 Economic base analysis divides all industries in a region into two categories: basic and non-basic. Basic industries are those that are exporting from the region and bringing wealth from outside. These industries comprise the economic base of the region. 12 LQ = (gi/g) / (Gi/G) gi = State of Wisconsin Gross Product in industry g = Total Gross Product in The State of Wisconsin Gi= US Gross Product in industry G = Total U.S. Gross Product. A location quotient > 1.2 indicates specialization in an industry.
Customer Industries (sell)
Driver Industries Technology Labor
Supplier Industries (buy)
Wisconsin Economic Future Study 1-8
Table 1-1 Statewide Driver Industries State
Drivers NAICS Industry Description Statistical Cluster
1 3114 Fruit and vegetable preserving and specialty 5 2 3115 Dairy product manufacturing 6 3 316 Leather and allied product manufacturing (partial) 3161 Leather and hide tanning and finishing 5 3162 Footwear manufacturing 5
4 321 Wood product manufacturing (partial) 3212 Plywood and engineered wood product mfg. 5 3219 Other wood product manufacturing 5
5 322 Paper manufacturing (complete) 3221 Pulp, paper, and paperboard mills 6 3222 Converted paper product manufacturing 5
6 3231 Printing and related support activities 5 7 3256 Soap, cleaning compound, and toiletry mfg. 5 8 3261 Plastics product manufacturing 5 9 327 Nonmetallic mineral product manufacturing (partial) 3272 Glass and glass product manufacturing 5 3279 Other nonmetallic mineral products 5
14 336 Transportation equipment manufacturing (partial) 3362 Motor vehicle body and trailer manufacturing 5 3369 Other transportation equipment manufacturing 6
15 337 Furniture and related product manufacturing (complete) 3371 Household and institutional furniture mfg. 5 3372 Office furniture and fixtures manufacturing 5 3379 Other furniture related product manufacturing 5
16 4541 Electronic shopping and mail-order houses 5 Industries italicized in the table are positively related to both a function of the discriminant analysis that points to the economic base industries and to the function that discriminates industries of high labor productivity.
Wisconsin Economic Future Study 1-9
Table 1-2 Matrix of Wisconsin's Driver Industries in the State and by Region
NAICS Title State-wide Central
East Central North South
South-east
West Central
I
West Central
II 2123 Nonmetallic mineral mining and quarrying х 3111 Animal food manufacturing х х
3113 Sugar and confectionery product manufacturing х х
3114 Fruit and vegetable preserving and specialty х х х х х 3115 Dairy product manufacturing х х х х х х х 3116 Animal slaughtering and processing х х х х 3118 Bakeries and tortilla manufacturing х 3119 Other food manufacturing х 3132 Fabric mills х 3161 Leather and hide tanning and finishing х х 3162 Footwear manufacturing х х х 3211 Sawmills and wood preservation х х x
3212 Plywood and engineered wood product mfg. х х х х х
3219 Other wood product manufacturing х х х х х х 3221 Pulp, paper, and paperboard mills х х х х х 3222 Converted paper product manufacturing х х х х х 3231 Printing and related support activities х х х х х 3255 Paint, coating, and adhesive manufacturing х 3256 Soap, cleaning compound, and toiletry mfg. х х 3261 Plastics product manufacturing х х х х х 3262 Rubber product manufacturing х 3272 Glass and glass product manufacturing х х х х х
3273 Cement and concrete product manufacturing х х
3279 Other nonmetallic mineral products х х х 3315 Foundries х х х х 3321 Forging and stamping х х 3322 Cutlery and handtool manufacturing х х х 3323 Architectural and structural metals mfg. х х х 3324 Boiler, tank, and shipping container mfg. х х х х 3325 Hardware manufacturing х х 3326 Spring and wire product manufacturing х х х х 3327 Machine shops and threaded product mfg. х х х х х
3328 Coating, engraving, and heat treating metals х х х х х
3329 Other fabricated metal product manufacturing х х х х х х х
3331 Agriculture, construction, and mining machinery manufacturing х х х
3332 Industrial machinery manufacturing х х х х х х х 3333 Commercial and service industry machinery х х х
3334 HVAC and commercial refrigeration equipment х х х х х х
Wisconsin Economic Future Study 1-10
Table 1-1 Matrix of Wisconsin's Driver Industries in the State and by Region (continued)
NAICS Title State-wide Central
East Central North South
South-east
West Central
I
West Central
II 3335 Metalworking machinery manufacturing х х х х х х
3336 Turbine and power transmission equipment mfg. х х х х
3339 Other general purpose machinery manufacturing х х х х х х х
3341 Computer and peripheral equipment manufacturing х
3351 Electric lighting equipment manufacturing х 3352 Household appliance manufacturing х х х 3353 Electrical equipment manufacturing х х х
3359 Other electrical equipment and component manufacturing х
3361 Motor vehicle manufacturing х
3362 Motor vehicle body and trailer manufacturing х х х
3363 Motor vehicle parts manufacturing х 3366 Ship and boat building х
3369 Other transportation equipment manufacturing х х
3371 Household and institutional furniture mfg. х х х х х х 3372 Office furniture and fixtures manufacturing х
3379 Other furniture-related product manufacturing х х
3399 Other miscellaneous manufacturing х х
4233 Lumber and construction supply merchant wholesalers х
4246 Chemical merchant wholesalers х 4541 Electronic shopping and mail-order houses х х х 4841 General freight trucking х х х 4842 Specialized freight trucking х 4855 Charter bus industry х 4889 Other support activities for transportation х 5112 Software publishers х 5182 Data processing and related services х 5221 Depository credit intermediation х 5241 Insurance carriers х х 5511 Management of companies and enterprises х
6114 Business, computer, and management training х
6221 General medical and surgical hospitals х 7112 Spectator sports х 7113 Promoters of performing arts and sports х 7139 Other amusement and recreation industries х 7212 RV parks and recreational camps х
Wisconsin Economic Future Study 1-11
1.3 Wisconsin and Competitive States In addition to identifying the driver industries and their industry clusters, the study compares the performance of Wisconsin’s economy with those of a select group of states that are identified as “competitors.” In general, competitor states are those that have a significant concentration of firms and/or industries that compete with firms in the state of Wisconsin. The study identifies eight states that are primary competitors for the markets of the major driver industries in Wisconsin. These eight competitor states include two that border Wisconsin — Minnesota and Illinois — since, by their geographic location, they offer the same access to all non-governmental resources as locations within Wisconsin itself, and their proximity facilitates the flow of competing manufactured goods or access to services. Other nearby competitor states include Michigan, Indiana, and Ohio, which historically have had industrial bases similar to that of Wisconsin. Altogether, these five Great Lakes basin states offer many of same labor skills, natural resources, and transportation networks that manufacturers seek in Wisconsin’s driver industries. Three other states were included — Pennsylvania, Georgia, and North Carolina — because they are competitors of substantial size in many of Wisconsin’s driver industries. An aggregate of Wisconsin key economic performances compared to the eight states and the United States is shown in Table 1-3 (other performances and year-by-year and by-industry comparisons can be found in Chapter 4). For none of the measures (employment, gross state product, productivity, and 2000-2011 percentage changes for the three measures) does Wisconsin rank highest among the eight states; Wisconsin ranks lowest among the eight states in 2011 gross state product and 2011 productivity.13
Table 1-3 Wisconsin performance, eight competitive states, and the United States
2011
Employment
% change in employment
2000-2011
2011 Gross state product
($Mil)
% change gross state
product 2000-2011
2011 Productivity (gross state product per employee)
This report also examines Wisconsin’s exports from driver industries, grouped to 3-digit NAICS subsector manufacturing levels for access to data and then compared to the eight competing states and the U.S. total. There was an increase in Wisconsin’s exports in 13 out of 14 3-digit NAICS driver industries for 2010-2011, with the Transportation Equipment Manufacturing subsector (NAICS 336) the exception that experienced a decline.
13 Moody’s Economy.com.
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Details in Chapter 6 show the trends in a particular driver industry with dollar value exported; the state’s share in the U.S. market for 2009, 2010, and 2011; and the percentage change between 2010 and 2011.14 For example:
• Wisconsin increased its exports in the Wood Product Manufacturing subsector by 12% between 2010 and 2011, which almost doubled the growth rate of U.S. total exports in the industry.
• In the Paper Manufacturing subsector, the U.S. has increased its exports to the world by 24.3% from 2009 through 2011 with a 5.3% increase from 2010 to 2011. Wisconsin accounts for 3.7% of U.S. total exports in the Paper Manufacturing subsector and experienced the fastest growth rate, 43.7% since 2009 and 9.6% from 2010, among the competitor states.
• Between 2010 and 2011, Wisconsin increased its exports in the Printing and Related Support
Activities industry group by 20.7%, while overall U.S. exports in this industry decreased by 2.2%.
• Wisconsin has increased its exports in the Fabricated Metal Products subsector since 2009,
along with overall U.S. exports in this subsector. The growth rate of Wisconsin’s exports (16.6%) exceeded that of the U.S. total (10.5%) between 2010 and 2011. In 2011, Wisconsin was ranked 16th in the nation for exports in Fabricated Metal Products Manufacturing. Eight out of nine 4-digit NAICS level industry groups under the Fabricated Metal Products Manufacturing subsector are driver industries in Wisconsin.
• Between 2010 and 2011, Wisconsin showed a 15.1% increase in Electrical Equipment,
Appliance and Component Manufacturing, while U.S. total exports increased by 8.9%. Chapter 6 of the study also presents in-depth innovation analysis and comparisons vs. the eight competitive states and the United States, as well as a detailed review of Wisconsin workforce characteristics. Highlights include:
• Innovation: Research findings elsewhere suggest a correlation between a higher share of technology-intensive industries and an increasing rate of growth in gross state product (GSP) over time. The overall Wisconsin economy experienced growth of GSP by 7.1% between 2002 and 2011, compared to the growth of GSP in very technology-intensive industries of 39%. But technology-intensive GSP as a percentage of the Wisconsin private sector was only 15.0% vs. 17.2% among the eight competing states, and 18.8% nationwide.15
• Workforce: Disproportionately more (5.1 percentage points) Wisconsin adults age 25 and
older have only a high school education than adults 25 and older in the nation as a whole. Compared to the nation, disproportionately fewer (-4.5 percentage points) Wisconsin adults failed to finish high school. Compared to the nation, a slightly higher proportion (1.8 percentage points) of Wisconsin adults have completed some postsecondary education or have an associates degree. Compared to the nation, a slightly lower proportion of Wisconsin adults have college degrees (-0.6 percentage points for bachelor’s degrees and -1.6
14 Foreign Trade Division, U.S. Census Bureau. 15 Moody’s Economy.com.
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percentage points for graduate/professional degrees).16 When “high school/GED” and “less than high school” are combined into a single “low-attainment” category, the four-category distributions of educational attainment are similar for Wisconsin and the United States, with Wisconsin having a slightly higher proportion of low-attainment (0.6 percentage points) and middle attainment (1.5 percentage points) adults, and a slightly lower proportion of advanced-attainment (-0.6 percentage points) and high-attainment (-1.6 percentage points) adults.17
1.4 Wisconsin Business Readiness, Climate, and Challenges Since all but one driver industry in Wisconsin is manufacturing, this study also explores the strengths and weaknesses within the state’s manufacturing base in more detail. As with the entire United States, in general, Wisconsin manufacturing suffered through a reorganization of facilities and worker dislocations to other parts of the world. Globalization was a survival strategy for many manufacturers in search of lower labor costs, and this strategy moved from basic commodities to even more complex goods. And while globalization will not disappear, there are many signals that U.S. manufacturing is again thriving and that goods now are moving back to facilities in the United States (onshoring). States whose economies rely on manufacturing, such as Wisconsin, can be expected to thrive in the evolving global marketplace, provided organizations and the entities that govern and support them recognize the opportunities now emerging from the onshoring trend. 1.4.1 Readiness among Manufacturers Research by The MPI Group among manufacturers across the United States — the Next Generation Manufacturing (NGM) Study — sought to identify future-looking performances and practices in place among U.S. manufacturers, to determine how much progress U.S. manufacturers have made in implementing Next Generation strategies, and to measure manufacturers’ progress toward achieving world-class status in the 21st century. The most recent NGM Study was conducted in 2011 by the Manufacturing Performance Institute (MPI) with the American Small Manufacturers Coalition (ASMC), an association of manufacturing extension centers that work to improve the innovation and productivity of America’s manufacturing community. One ASMC program of primary focus is the National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) program. MPI, ASMC, and MEPs across the country promoted the NGM Study. The NGM Study assessed how well manufacturers recognize and execute key strategies that can help them to compete in the future:
• Customer-focused innovation: Develop, make, and market new products and services that meet customers’ needs at a pace faster than the competition.
16 2009-2011 American Community Survey Integrated Public Use Microdata Series (3-year estimate). 17 2009-2011 American Community Survey Integrated Public Use Microdata Series (3-year estimate).
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• Engaged people/human capital acquisition, development, and retention: Secure a competitive performance advantage by having superior systems in place to recruit, hire, develop, and retain talent.
• Superior processes/improvement focus: Record annual productivity and quality gains that exceed the competition through a companywide commitment to continuous improvement.
• Supply-chain management and collaboration: Develop and manage supply chains and partnerships that provide flexibility, response time, and delivery performance that exceed the competition.
• Sustainability: Design and implement waste and energy-use reductions at a level that provides superior cost performance and recognizable customer value.
• Global engagement: Secure business advantages by having people, partnerships, and systems in place capable of engaging global markets and talents better than the competition.
The study also examined best practices to support execution of those strategies and performance goals against which to measure their progress. Following an NGM path — or ignoring it — can be the difference between success and failure for individual manufacturers and for U.S. and Wisconsin manufacturing in general. The NGM Study findings show:
• Most Wisconsin manufacturers recognize the importance of the NGM strategies (rated 4 or 5 on a scale of 1-5 where 5 equals highly important) to their business success, and, with the exception of the global engagement strategy, a higher percentage of Wisconsin manufacturers than national manufacturers recognize the importance of the strategies. Wisconsin manufacturing executives see global engagement as the least important strategy among the six.
Table 1-4 Strategy Importance to Organization Success over the Next Five Years (% of manufacturers rated 4 or 5 on a scale of 1-5 where 5= highly important)
Wisconsin National Process improvement 91.6% 86.6% Human-capital management 88.4% 77.7% Customer-focused innovation 86.3% 84.0% Supply-chain management 76.3% 72.2% Sustainability 67.4% 59.2% Global engagement 41.5% 50.4%
• Many Wisconsin manufacturers are progressing toward world-class status with individual
NGM strategies (rated 4 or 5 on a scale of 1-5 where 5 equals world-class), but there is a large execution gap — the difference between the percentage of Wisconsin firms that recognize the importance of a particular NGM strategy and the percentage of firms near or at world-class status in that strategy. Wisconsin manufacturers are least likely to be at or near world-class capabilities with global engagement.
Wisconsin Economic Future Study 1-15
Table 1-5 Organization Progress toward World-Class Status (% of manufacturers rated 4 or 5 on a scale of 1-5 where 5= world-class)
Wisconsin National Process improvement 53.7% 42.7% Customer-focused innovation 48.4% 43.2% Human-capital management 33.0% 30.4% Supply-chain management 33.0% 29.4% Sustainability 32.6% 27.5% Global engagement 17.9% 25.3%
• Many Wisconsin manufacturers, like manufacturers across the country, lack key success
factors — talented people, business systems and equipment, company-specific strategies — necessary to achieve next-generation success, and, because of this, they face competitive disadvantage against those companies that do.
1.4.2 Business Climate Countless means are available to evaluate the business climate in Wisconsin, with some factors more likely to affect some companies more than others. This study also examined how independent organizations ranked Wisconsin’s business climate and compared those rankings vs. the rankings of the eight competitive states where possible:
• Wisconsin ranked 17th among the 50 states in CNBC’s “America’s Top States for Business 2012.” CNBC scored all 50 states on 51 measures of competitiveness developed with input from business groups including the National Association of Manufacturers and the Council on Competitiveness. Wisconsin’s overall business climate ranks in the middle of the pack when compared to its eight competitive states.18
• Forbes’ “Best States for Business” ranked Wisconsin 42nd in the nation. Forbes measures six
categories for businesses: costs, labor supply, regulatory environment, current economic climate, growth prospects, and quality of life, and the publication factors in 35 points of data to determine the ranks in the six main areas. Wisconsin’s business climate ranks below all but Michigan among the eight competitive states.19
• Site Selection’s “Top 2012 State Business Climate Rankings” ranked Wisconsin 13th in the
nation. The rankings are based 50% on a survey of corporate site selectors and 50% on five other criteria, three of which require states to demonstrate a strong record of attracting capital investment.20
• The nonprofit Tax Foundation measures how each state’s tax laws affect economic
performance with the 2013 State Tax Business Climate Index. The Index is a relative, hierarchical structure compiled from five weighted tax measures (individual income tax,
18 “America’s Top States for Business 2012,” CNBC, July 10, 2012. 19 “Best States for Business,” Forbes, Dec. 12, 2012. 20 Mark Arend, “Competition is Fun,” Top 2012 State Business Climate Rankings, Site Selection, November 2012.
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sales tax, corporate income tax, property tax, and unemployment insurance tax), and states are assigned a rating (0=worst and 10=best) in each. Each component consists of multiple variables, with 118 variables in all, and is based on taxes in place on July 1, 2012. The 2013 Index ranked Wisconsin 43rd among all states and Washington, D.C., the same as in the 2012 Index and down from a rank of 41st in the 2011 Index. Wisconsin’s tax climate ranks near the bottom of the eight competitive states.21
1.5 Conclusion Whether any of Wisconsin’s driver industries can sustain the performances that have helped them prosper to date depends, first and foremost, on how their leaders and workers embrace and manage the complexities of a highly competitive and changing global marketplace. After global recession, a global recovery — no matter how fitful — offers rare growth opportunities to the state’s driver industries. At the same time, state and regional policies, regulatory frameworks, and tax structures will have an impact on competitiveness, but they alone cannot be expected to drive organizations to succeed. Nonetheless, Wisconsin must create a business and social environment that fosters (or at least does not hinder) responsible growth-oriented business leadership. Wisconsin’s efforts to capitalize on global growth through changes in statewide policies, regulations, and tax structures should be addressed within the context of Wisconsin’s driver industries and industry clusters. Strategies for aiding an industry should also consider its growth/competitiveness positions within specific regions. In particular, the driver and cluster industry findings of this study can serve as the bases to convene working groups focused on the 37 statewide driver industry categories, with regional representation, to develop plans and recommendations specific to each industry. Notwithstanding regional differences, however, a number of statewide, cross-industry issues must be addressed by any new plans — reflecting statewide, collaborative actions required for Wisconsin to claim its place among the world’s elite business locations. Wisconsin can positively impact driver industries and the business climate in the state in four ways:
• Nurture driver industries, concentrating state and regional economic development efforts on strengthening driver industries and the industry clusters around them:
• Strengthen driver-industry supply chains and the systems (broadband) and infrastructure
(transportation hubs) that allow them to communicate and conduct commerce. • Further develop the research/technology/innovation centers that support Wisconsin’s 37
driver industries, helping them to create new technologies, implement new business processes, and commercialize new products and services.
• Develop regional purchasing and management cooperatives for driver industries with large footprints across many of the state’s economic regions.
• Continue to support Wisconsin exports from driver industries and help these businesses grow exports or begin their efforts to penetrate global markets.
21 Scott Drenkard and Joseph Henchman, 2013 State Business Tax Climate Index, Tax Foundation, October 2012, http://taxfoundation.org/article/2013-state-business-tax-climate-index
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• Create an ongoing “Economic Future” structure that helps businesses foster and sustain
improvement. Given the breadth of the business base and turnover among executives within it, ongoing efforts for improvement across industries often lose steam as executives retire, relocate, and transfer. Good ideas are forgotten, and plans are shelved. But by creating an ongoing “Economic Future” structure — incorporating stakeholders and organizations from across the state — focused on disciplined examination and promotion of success factors for driver industries and industry clusters, the state can improve its overall competitiveness:
• Regularly research and examine driver industries in the state, diving deeper into internal
management and operating processes of companies and inviting their executives to present success stories — and challenges — from their industries.
• Keep legislators focused on the performances of driver industries — supporting them as necessary and highlighting their successes as examples of what is possible within the state. It is often easy for legislators or executives to chase “the next big thing” in economic development; Wisconsin’s driver industries include firms that have carried the Wisconsin economy for decades.
• Collaborate as Wisconsin public leaders and institutions — Departments of Commerce, Workforce Development, Natural Resources, and the Wisconsin Economic Development Corp. — to coordinate actions that will support the growth of driver industries and industry clusters.
• Address the real and perceived skills shortages in the state. The availability of talent is a critical
factor for the long-term success of Wisconsin’s driver industries. The private, public, and nonprofit sectors must collaborate in developing innovative solutions to attract and train workers at all skills levels — from frontline employees to tooling specialists to R&D scientists to senior management:
• Strengthen ties between driver and industry cluster firms and the state’s workforce
development boards, technical schools, and universities to design workforce development strategies and encourage placement of management, engineering, and technical talent with Wisconsin firms.
• Incorporate manufacturing into academic and technical institutions’ curricula and into more K-12 education programs. Expand internship opportunities that can provide a first-hand look at manufacturing and provide evidence of the level of skills, technology, and education necessary to succeed in driver industries.
• Benchmark innovative workforce development models across the country, identifying best practices from other states and countries that support economic competitiveness and investment.
• Develop a cohesive, engaging “new story” about manufacturing in Wisconsin that promotes its viability as a career and strong future. Engage industry, government, and academic leaders in this effort, but also engage the target audience’s current role models (e.g., sports figures, musicians, artists), discussing the business roots in their families and their role in their connections to Wisconsin industry.
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• Establish a legislative approach that examines policies affecting driver industries and industry
clusters, identifying the programs that constituents can and will support, with the goal of developing a broad package that supports Wisconsin business. The first step: review the policies, practices, and issues identified by business executives as potential barriers and manage them in relation to all the state’s needs:
37. Other wood product mfg. -27.54% Moody’s Economy.com * Note: The gross state product (output) percentage change of 2008-2011 was calculated using only years 2008 and 2011. The output compound average growth rate between 1998 and 2003 is estimated from the previous 2004 report. The compound annual growth rate was calculated by taking the n-th root of the total percentage growth rate, where n is the number of years in the period being considered. This can be written as follows:
( _____1____ )
CAGR = ( Ending Value ) # of years
-1 Beginning Value
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Table 1-8 Ranking of Driver Industries, Gross Product
25. Coating, engraving, heat treating metals $511 26. Motor vehicle body and trailer mfg. $506 27. Commercial & service industry machinery $505 28. Glass and glass product mfg. $473 29. Other nonmetallic mineral products $332 30. Cutlery & handtool mfg. $270 31. Office furniture and fixtures mfg. $262 32. Spring and wire product mfg. $147 33. Hardware mfg. $146 34. Plywood & engineered wood product mfg. $141 35. Other furniture related product mfg. $119 36. Footwear mfg. $43 37. Leather and hide tanning & finishing $29
Moody’s Economy.com *Note: The Gross State Product 2003 data are inflated to 2011 dollars using the U.S. Consumer Price Index for all urban consumers.
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2 The Wisconsin Economic Future Study The MPI Group has partnered with a team of researchers led by Dr. Edward W. (Ned) Hill, professor and distinguished scholar of economic development, and Dr. Iryna Lendel, assistant director of the Center for Economic Development at the Maxine Goodman Levin College of Urban Affairs at Cleveland State University, to develop the Wisconsin Economic Future Study. The Wisconsin Economic Future Study was initiated to examine the:
Impact of Wisconsin business sectors relative to the statewide economy and compared to eight states with which the state’s main industries compete,
Economic driver industries within each of the state’s seven economic regions, and
Economic issues and recommendations for the future.
2.1 The Analysis The research team used the same analytical method of discriminant and cluster analyses used in a previous study of the state of Wisconsin’s manufacturing industry done in 2004. The analytical method is based on a technique developed by Ned Hill and John Brennan (2000). The method identifies “driver industries” and “industry clusters.” From an economic perspective, driver industries are relatively concentrated in a region and produce more goods than can be consumed locally. These companies sell their products outside of the region, thereby bringing new monies back into the region. Thus, they drive regional economic growth.1 The driver industries form the heart of a linked group of companies, the industry clusters. These are geographic concentrations of firms in the same industry that have close buy-sell relationships with other industries in the region, use common technologies, or share a specialized labor pool that, together, provide these firms with a competitive advantage over the same industry in another region, state, or country. A complete cluster consists of suppliers, the driver industry that produces the finished product, and the customer or consumer of that product or service. In this study, “industry clusters” refers to the binding of these three entities, unlike other researchers/authors who may use the word to refer to a group of industries that are similar in the product they make or the process they use to manufacture their output.2 This trio approach reveals the importance of Wisconsin suppliers to driver industries, without which many industry clusters simply would not be as effective. (See section 14 Methodology for more details.) The relationships among the three industry cluster components are depicted graphically in Figure 2-1.
1 E. Hill & J. Brennan (2000). A Methodology for Identifying the Drivers and Clusters: The Foundation of Regional Competitive Advantage. Economic Development Quarterly, 14, pp. 65-69. 2 E. Hill & J. Brennan (2000). pp. 65-69.
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Figure 2-1 Structure of a Competitive Industry Cluster3
+
2.2 Wisconsin and Its Eight Competing States In addition to identifying the driver industries and their industry clusters, the study compares the performance of Wisconsin’s economy with those of a select group of states that are identified as “competitors.” In general, competitor states are those that have a significant concentration of firms and/or industries that compete with firms in the state of Wisconsin. The study identifies eight states that are primary competitors for the markets of the major driver industries in Wisconsin. These eight competitor states include two that border Wisconsin — Minnesota and Illinois — since, by their geographic location, they offer the same access to all non-governmental resources as locations within Wisconsin itself, and their proximity facilitates the flow of competing manufactured goods or access to services (see Section 4). That proximity also makes it possible for the workforce in these contiguous states to cross state lines for employment. Other nearby competitor states include Michigan and Indiana, as well as Ohio, which historically have had an industrial base similar to that of Wisconsin. Altogether, these five Great Lakes Basin states offer many of same labor skills, natural resources, and transportation networks that manufacturers seek in Wisconsin’s driver industries. In addition, three other states were included for their clear competitiveness. These states are new in the benchmark group (compared to the previous report conducted on the competitiveness of Wisconsin’s manufacturing in 2004): Pennsylvania, Georgia, and North Carolina are competitors of
3 Hill & Brennan, 2000.
Customer Industries
(sell)
Driver Industries Technology Labor
Supplier Industries
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substantial size against many of Wisconsin’s driver industries, especially manufacturing and agriculture. In summary, the eight competitor states in this study are Illinois, Indiana, Georgia, Michigan, Minnesota, North Carolina, Ohio, and Pennsylvania.
2.3 Wisconsin’s Seven Economic Regions
In addition to addressing the state of Wisconsin’s economy as a whole, seven county-based economic regions of Wisconsin were differentiated for further economic analysis, as was also done in the 2004 study. Regions were initially identified by overlaying the current definitions of Metropolitan Statistical Areas from the U.S. Office of Management & Budget with the U.S. Bureau of Economic Analysis’s Economic Areas. This information was supplemented with employment and commuting-pattern data across the state to arrive at a final set of seven regions that is believed to best represent “economic” rather than political or geographic regions and was inclusive of all counties within the state. For cohesiveness of regional economies, two out-of-state counties were included for studying economic regions: Winnebago County (IL) in the South region and Houston County (MN) in the West Central II region. The seven regions and the counties that comprise each are as follows:
Southeast: Dodge, Fond du Lac, Green Lake, Jefferson, Kenosha, Manitowoc, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington, Waukesha
West Central I: Barron, Buffalo, Chippewa, Dunn, Eau Claire, Pepin, Pierce, Polk, St. Croix
West Central II: Jackson, La Crosse, Monroe, Trempealeau, Vernon, Houston (MN) The economic regions are presented graphically in Figure 2-2.
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Figure 2-2 Economic Regions in the State of Wisconsin
2.4 Information Dating and Data Sets
In the tables throughout this study, all data under a year column is historical for various data periods mainly defined by availability of data. The data on macrocomparison of Wisconsin and the United States reach back from 2010 to 1978 and include 2011 projected data. The data on comparison of macroeconomic indicators of Wisconsin and eight comparison states and the detailed analysis of the state economy and its seven economic regions are included from 2000 to 2010 as real data, and 2011 denotes projected data. The export data on Wisconsin and competitor states are from 2009 through 2011 (the latest year of data available at the time this report was compiled).
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2.5 NAICS Definition and Hierarchical Structure
Throughout the Wisconsin Economic Future Study, businesses in the state are, with a few exceptions, described by North American Industry Classification System (NAICS) coding nomenclature. NAICS is a 2- through 6-digit hierarchical classification system, offering five levels of detail. Each digit in the code is part of a series of progressively narrower categories, and more digits in the code signify greater classification detail:
First two digits designate the economic sector (e.g., 31-33 Manufacturing). Third digit designates the subsector (e.g., 311 Food Manufacturing). Fourth digit designates the industry group (e.g., 3118 Bakeries and Tortilla
Manufacturing). Fifth digit designates the NAICS industry (e.g., 31182 Cookie, Cracker, and Pasta
Manufacturing). Sixth digit designates the national industry (e.g., 311821 Cookie and Cracker
Manufacturing). The 5-digit NAICS code is the level at which there is comparability in code and definitions for most of the NAICS sectors across the three countries participating in NAICS (the United States, Canada, and Mexico). The 6-digit level allows for the United States, Canada, and Mexico each to have country-specific detail. A complete and valid NAICS code contains six digits. This report predominately identifies NAICS at the 3- and 4-digit level. Definitions of NAICS classifications are generally presented as reported by the U.S. Census Bureau.4
4 North American Industry Classification System, U.S. Census Bureau.
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3 Statewide Historic Trends This section examines the historic economic profile of the state of Wisconsin: total employment, gross state product, and productivity.
3.1 Employment Examining the historical trend of employment growth in the state of Wisconsin from 1978 through 2011, compared to the United States as a whole (Figure 3-1), illustrates that these two geographic regions have historically behaved in a similar pattern: total employment growth in Wisconsin has mirrored the changes in the United States. Both regions saw significant declines since 2007 but reported a rebound in employment projections for 2011. Excluding the most recent recession, the employment growth rate in Wisconsin from 1978 through 2007 was 46.5%, lagging behind the growth rate in the United States (52.3%).
Figure 3-1 Historical Employment Trends for the State of Wisconsin and the United States, 1978-2011
Not including the most recent recessionary period, the data paint a more optimistic picture than does examining the significant impact of the employment losses that occurred from 2007 through 2010. Employment in Wisconsin peaked in 2007 (with 3 million employees) and declined by roughly 125,000 employees to 2.88 million in 2011 (roughly equivalent to the employment level in 1998).
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3.2 Gross State Product Unlike the historical trends seen in employment in the state of Wisconsin, gross state product trends in Wisconsin have not tracked with the United States since the beginning of time series (Figure 3-2). The recession of the early 1980s had a significant impact on the gross state product (GSP) in Wisconsin, which did not return to 1978 levels until 1986. Since 1986, GSP has seen a steady positive trend until 2007. Excluding the most recent recession, the GSP growth rate in Wisconsin from 1978 through 2007 was 63.6% — but this fell well behind the growth rate of the United States (96.3%). Investigating the last few years of the time series in Figure 3-2 shows that the most recent recession made a considerable impact on Wisconsin GSP from 2007 through 2010.
Figure 3-2 Historical Gross State Product for the State of Wisconsin and Gross Domestic Product in the United States, 1978-2011
Comparing employment and GSP data in Wisconsin reveals notable points of interest (Figure 3-3). At the beginning of the series, 1978-1979, employment and GSP have divergent trends with GSP declining, while employment saw a sharp increase. After 1979, both series followed in similar paths with positive growth; this continued until 1989, when GSP experienced flat growth while employment continued its positive climb. In 2000, employment ceased growing and experienced a decline until 2002; this is in contrast to GSP, which continued its upward trend during this two-year period. During the most recent recession, 2008 to 2009, there was a precipitous decline in employment (-4.2%), while gross product trended modestly toward growth (0.5%).
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Source: Moody's Economy.com Note: Gross product is adjusted for inflation to 2011 dollars
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Figure 3-3 Employment and Gross State Product ($Mil) Historical Trends for the State of Wisconsin, 1978-2011
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3.3 Productivity Figure 3-4 assesses historical productivity trends in Wisconsin as compared to the United States.1 Productivity in Wisconsin increased marginally over the last 40 years:
Wisconsin did not regain 1978 productivity levels ($76,573) until 1998 ($77,774).
Since 1998, the state has seen a 14.7% growth in GSP per worker to a projected level of $89,242 in 2011.
Over the entire time series, the United States has significantly outperformed Wisconsin in output per worker. From 1978 through 2011, Wisconsin reported a 16.5% growth in productivity, but this was less than half of the increase reported by the United States (35.2%). The gap of productivity between Wisconsin and the United States is widening, from a gap of $5,795 in 1978 to a gap of $22,124 in 2011.
Figure 3-4 Historical Productivity for the State of Wisconsin and the United States, 1978-2011
1 We approximate productivity as the output (gross state product) per worker.
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4 Wisconsin and Competing States This section examines total employment, gross state product, and productivity in Wisconsin compared to a cohort of eight benchmark states. The cohort of competing states (Georgia, Illinois, Indiana, Michigan, Minnesota, North Carolina, Ohio, and Pennsylvania) was assembled based on size, industry composition, and competitiveness similar to Wisconsin in order to properly evaluate Wisconsin’s performance. The United States as a whole also was included in the benchmarking comparison. 4.1 Employment Table 4-1 displays employment data for Wisconsin, eight competing states, and the United States for 2000, 2003, and 2007 through 2011.
Table 4-1 Employment for Wisconsin, Competing States, and the United States, 2000, 2003, 2007-2011 Employment
United States -4.3% -0.5% 0.9% -0.6% 1.0% -4.3% -4.0%
Over an 11-year period, 2000-2011, all states compared in Table 4-2 suffered employment losses. Wisconsin lost 2.7% of its employment, a percentage higher than the United States, the employment of which declined 0.6%. Compared to the other competing states, Wisconsin employment performance was in the middle of the pack; the best performer over the long term was Pennsylvania, where employment declined 0.5%, and Michigan was the worst performer with an employment decline of 15.8%. Examining Wisconsin’s performance within the most recent recession reveals intriguing results. All states in the comparison group, as well as Wisconsin, lost employment since 2007 and kept losing through 2008. From 2007 (the employment peak of the last growth phase) until 2011, the estimated employment rebound of the recession, Wisconsin lost 4.1% of employment, which was roughly on par with the national performance (-4.3%) but better than Michigan (-7.8% and worse than Pennsylvania (-2.0%). Some states within the comparison group (Indiana, Michigan, and Pennsylvania) started to recover from employment losses in 2009, and all states, including Wisconsin, gained some employment in 2010-2011. Out of this group, the states that were hit the hardest by employment losses on a long-term basis (Ohio and Michigan) saw employment growth at a higher rate in 2010-2011. Wisconsin is on par with the United States’ averages in its losses and employment recovery in 2010-2011. Table 4-3 examines employment by two-digit NAICS categories for Wisconsin, eight competing states, and the United States for 2011, while Table 4-4 examines the employment shares of each of these industries in total employment. (For 2010 employment data and shares, see Detail Tables A.4-1. and A.4-2 at the end of this section.) In 2011, the highest industrial share for the state of Wisconsin was in Manufacturing (15.4%) with 443,020 employees; this sector is only slightly larger than Public Administration and Military (15.1%) with 436,542 employees. Only Indiana among competing states had a higher share of employment concentrated in the Manufacturing sector (15.6%) than Wisconsin. Most competitive states and the United States had Manufacturing employment shares in the 9-12% range. Public Administration
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employment, on the other hand, accounted for a sizable share in competing states, ranging from 13.4% in Pennsylvania to 20.5% in North Carolina, with Wisconsin being in the middle of this range (15.1%).1 Healthcare and Social Assistance was another important employment industry for the state of Wisconsin. In 2011, this sector accounted for 12.9% of employment (373,241 employees), which is similar to the shares in the United States (12.4%) and the eight competitive states, which ranged from 10.3% in Georgia to 16.0% in Pennsylvania. Wisconsin is higher than the majority of its competing states in Agriculture employment but somewhat lower than the majority in Professional and Technical Services.
1 Public Administration and Military includes all employees who are local, state, and federal employees, as well as those who work for the U.S. Military. These employment figures may include those employed for state universities, state hospitals, and other governmentally run institutions.
Table 4-3 Employment by Industry Sector for Wisconsin, Competing States, and the United States, 2011 2011 Employment*
NAICS NAICS Description Georgia Illinois Indiana Michigan Minnesota North Carolina Ohio Pennsylvania Wisconsin United
55 Management of Companies and Enterprises 57,619 92,863 30,457 53,066 76,731 78,474 110,924 118,222 49,555 1,956,420
56 Administrative and Support and Waste Management and Remediation Services 249,822 371,093 150,148 258,815 125,698 240,269 285,129 271,359 128,595 7,511,704
81 Other Services (except Public Administration) 4.0% 4.5% 3.7% 4.3% 4.2% 4.0% 4.2% 4.5% 5.3% 4.3%
Gov’t Public Administration and Military 19.1% 15.4% 15.5% 16.0% 15.7% 20.5% 15.5% 13.4% 15.1% 17.9%
Total All Industries 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: Moody’s Economy.com
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Table 4-5 displays employment shares by industry in Wisconsin for the years 2000, 2003, and 2007 through 2011; industry sectors are ranked by shares of total employment in 2011. As a percentage of total employment, the Manufacturing sector within Wisconsin has declined dramatically since 2000; it once represented one-fifth of the employment in the state. Projections for 2011 show Manufacturing surpassing Public Administration and Military as the largest employment share, but this was not the case in 2010. Moreover, Healthcare and Social Assistance has steadily increased its employment share within the Wisconsin economy over the last 11 years, reporting a 12.9% share up from 10.2% in 2000.
Table 4-5 Employment Shares by Industry Sector for Wisconsin, 2000, 2003, 2007-2011 Wisconsin Employment
21 Mining, Quarrying, and Oil and Gas Extraction 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 20
Total All Industries 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: * denotes projected data Source: Moody’s Economy.com
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4.2 Gross State Product Table 4-6 displays gross state product for Wisconsin, eight competing states, and the United States for 2000, 2003, and 2007 through 2011.
Table 4-6 Gross State Product for Wisconsin, Competing States, and the United States, 2000, 2003, 2007-2011 Gross State Product ($Mil) 2000 2003 2007 2008 2009 2010 2011*
United States $12,911,370.2 $13,530,260.2 $15,154,879.8 $14,909,132.6 $14,694,355.2 $15,011,067.4 $15,204,171.4 Note: * denotes projected data; gross product is adjusted for inflation to 2011 dollars Source: Moody’s Economy.com Table 4-7 shows various time periods of percentage change in gross product for Wisconsin, eight competing states, and the United States.
Table 4-7 Gross State Product Percentage Change for Wisconsin, Competing States, and the United States Gross State Product Percentage Change 2008-2009 2009-2010 2010-2011 2000-2011 2003-2011 2007-2011 2008-2011
Georgia -2.4% 0.6% 0.7% 8.8% 5.5% -3.6% -1.1%
Illinois -0.4% 1.4% 0.2% 8.6% 6.2% -1.4% 1.2%
Indiana -1.1% 4.4% 0.8% 10.8% 6.5% 0.6% 4.1%
Michigan -1.2% 2.2% 0.6% -9.4% -9.9% -5.1% 1.6%
Minnesota -1.3% 2.8% 1.8% 15.2% 9.2% 2.6% 3.3%
North Carolina 1.1% 2.7% 1.0% 20.5% 16.5% 2.6% 4.9%
Ohio -1.5% 1.7% 0.5% -0.5% -1.2% -2.6% 0.7%
Pennsylvania 0.6% 2.5% 0.7% 14.4% 9.6% 2.5% 3.9%
Wisconsin 0.5% 1.9% 0.5% 11.0% 6.3% 0.1% 3.0%
United States -1.4% 2.2% 1.3% 17.8% 12.4% 0.3% 2.0%
As shown earlier in this analysis, Wisconsin experienced employment decreases from 2000 through 2011, but this was not the case for gross state product (GSP) trends. Adjusting for inflation, Wisconsin GSP grew by 11.0% from 2000 to the projected values for 2011 (Table 4-7). GSP growth rates for Wisconsin were 10.9% from 2000 through 2007 and 11.0% from 2000 through 2011, indicating the
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impact of the recession on GSP growth. Wisconsin’s GSP long-term growth rate (2000-2011) was moderately high but less than North Carolina’s (20.5%) and not as severe as that of Michigan (-9.4%). The economic recovery marked by growth rates from the peak of GSP, 2007-2011, shows that Wisconsin did not have GSP growth over this period (0.1%). Over the same period of time, four states (Georgia, Illinois, Michigan, and Ohio) contracted their GSP, while the United States and Indiana had zero growth, similar to Wisconsin. Three states displayed GSP growth through this time — Minnesota, North Carolina, and Pennsylvania. Table 4-8 examines GSP by two-digit NAICS categories for Wisconsin, eight competing states, and the United States for 2011, while Table 4-9 examines the GSP shares of each of these industries from the GSP total. (For 2010 GSP data and shares see Detail Table A.4-3 and A.4-4 at the end of this section.) In 2011, the highest industrial GSP share for Wisconsin was in Manufacturing (19.0% of total GSP of $51 billion). In comparison to the competing cohort states, Wisconsin had one of the highest shares of Manufacturing in its economy, only surpassed by Indiana (27.2%; $80 billion) and North Carolina (19.3%; $87 billion). Most competing states and the United States had Manufacturing gross state product shares in the 11-16% range. The second-largest share of the GSP in Wisconsin was in the Real Estate and Rental and Leasing sector (11.6%; $27 billion), closely followed by Public Administration and Military (11.0%; $27 billion). Table 4-10 presents gross state product shares by industry in Wisconsin for the years 2000, 2003, and 2007 through 2011; industry sectors are ranked by the shares of GSP in 2011. Similar to the employment-share decline (Table 4-5) in 2000, GSP in Manufacturing represented almost one-quarter of the total GSP, but 11 years later this share declined to about one-fifth of the economy. More important, GSP was the lowest in 2009, and then it regained its shares in 2010 and 2011, unlike Manufacturing employment shares. Finance and Insurance and Healthcare and Social Assistance both grew considerably in their importance in the Wisconsin economy over the 11-year period (2000-2011).
Table 4-8 Gross State Product ($Mil) by Industry Sector for Wisconsin, Competing States, and the United States, 2011 2011 Gross State Product ($Mil)*
NAICS NAICS Description Georgia Illinois Indiana Michigan Minnesota North Carolina Ohio Pennsylvania Wisconsin United
55 Management of Companies and Enterprises $6,631 $16,869 $3,051 $7,638 $11,576 $9,651 $15,475 $17,484 $5,773 $275,944
56 Administrative and Support and Waste Management and Remediation Services $14,490 $21,609 $7,801 $13,400 $6,893 $12,533 $15,273 $14,734 $6,118 $445,276
21 Mining, Quarrying, and Oil and Gas Extraction 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 20
Total All Industries 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: * denotes projected data; gross product is adjusted for inflation to 2011 dollars Source: Moody’s Economy.com
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4.3 Productivity Productivity is a measure of efficiency of an overall economy. Productivity (approximated by gross state product per employee) varies for reasons both real and false: workers becoming more or less efficient (real); changes in productivity due to technologies, information technology, and equipment advances (real); improvements in production or service processes (real); or shedding of workers while maintaining minimal losses in gross product (false). In addition, U.S. statistics are incapable of correctly accounting for the impact of offshoring and global supply chains on productivity.2 Table 4-11 presents productivity for Wisconsin, eight competing states, and the United States for 2000, 2003, and 2007 through 2011.3
Table 4-11 Productivity for Wisconsin, Competing States, and the United States, 2000, 2003, 2007-2011 Productivity ($) 2000 2003 2007 2008 2009 2010 2011*
United States $93,962 $100,085 $106,184 $104,818 $107,979 $110,913 $111,366 Note: * denotes projected data; productivity is adjusted for inflation to 2011 dollars Source: Moody’s Economy.com
2 Mandel, Michael and Susan Houseman, “Not All Productivity Gains Are the Same. Here’s Why.” What Matters. June 2011. 3 Productivity is approximated by gross state product per employee.
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Overall, projected productivity for Wisconsin for 2011 was $89,242, the lowest productivity compared to all of the competing states and the United States ($111,366). The highest productivity among competing states in 2011 was in Illinois ($115,879). Wisconsin’s productivity grew over the long term (2000-2011; 14.0%) and the short term (2008-2011; 7.3%), with only one period of marginal decline (2010-2011; -0.3%) (Table 4-12). This pattern is similar to that of the other competing states and the United States. Table 4-12 contains productivity percentage changes for Wisconsin, eight competing states, and the United States for 2000, 2003, and 2007 through 2011.
Table 4-12 Productivity Change for Wisconsin, Competing States, and the United States Productivity Percentage Change 2008-2009 2009-2010 2010-2011 2000-2011 2003-2011 2007-2011 2008-2011
Georgia 3.0% 2.0% 1.1% 14.3% 6.5% 4.4% 6.2%
Illinois 4.6% 2.2% -0.9% 17.2% 8.9% 3.8% 5.9%
Indiana 4.7% 3.9% 0.7% 19.1% 10.1% 7.0% 9.6%
Michigan 6.1% 2.3% -0.9% 7.6% 1.0% 3.0% 7.5%
Minnesota 2.4% 2.9% 1.1% 16.4% 9.0% 6.5% 6.6%
North Carolina 6.6% 3.8% 0.6% 21.4% 13.6% 8.8% 11.2%
Ohio 4.0% 2.4% -0.8% 9.9% 4.6% 3.5% 5.7%
Pennsylvania 3.9% 2.5% -0.4% 15.0% 8.6% 4.6% 5.9%
Wisconsin 5.0% 2.5% -0.3% 14.0% 7.0% 4.4% 7.3%
United States 3.0% 2.7% 0.4% 18.5% 11.3% 4.9% 6.2%
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4.4 Capital Expenditures Capital expenditures represent manufacturing capital expenditures for new and used plants and equipment (i.e. new machinery, automation, computers, etc.). The data for this analysis come from the Annual Survey of Manufacturers and are available only for manufacturing industries. Adjusting this metric for inflation allows it to be used as an indicator of business investing in manufacturing, technology, and assets across time. Table 4-13 shows the total value of manufacturing capital expenditures for Wisconsin, competing states, and the United States for 2005 through 2010.4
Table 4-13 Total Value of Manufacturing Capital Expenditures ($Mil) for Wisconsin, Competing States, and the United States, 2005-2010
Total Value of Manufacturing Capital Expenditures ($Mil) 2005 2006 2007 2008 2009 2010
United States $151,624 $146,886 $167,660 $168,210 $131,355 $127,952 Note: Capital expenditures adjusted for inflation to 2010 dollars Source: U.S. Census Bureau, Annual Survey of Manufactures The highest level of capital expenditures in Wisconsin occurred in 2008. Most competing states’ highest levels of manufacturing capital expenditures were in 2007 or 2008. Wisconsin manufacturers reduced capital expenditures from 2008 to 2009 and, like most competing states, saw modest rebounds from 2009 to 2010. Capital expenditures in Wisconsin were the third lowest among competing states ($3.812 billion) in 2010. Table 4-14 displays the percentage changes in the total value of manufacturing capital expenditures in millions for Wisconsin, competing states, and the United States for various periods of time. The only time period with a positive-percent change in manufacturing capital expenditures in Wisconsin was 2009-2010, with a 6.9% increase, which followed a massive spending contraction in the year prior (-25.4%) (Table 4-14).
4 The data prior to 2005 and after 2010 are unavailable from the Annual Survey of Manufacturers.
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Table 4-14 Percentage Change in Total Value of Manufacturing Capital Expenditures for Wisconsin, Competing States, and the United States
Percentage Change in Total Value of Manufacturing Capital Expenditures 2008-2009 2009-2010 2005-2010 2007-2010 2008-2010
Georgia -22.9% 41.6% -3.3% 5.7% 9.2%
Illinois -6.2% -5.0% -2.6% -33.1% -10.9%
Indiana -25.9% 3.3% -12.7% -22.1% -23.4%
Michigan -27.1% 10.0% -7.5% -9.6% -19.8%
Minnesota -24.5% 26.3% -9.1% -14.6% -4.6%
North Carolina -16.8% -4.8% -24.0% -26.6% -20.7%
Ohio -25.5% -1.4% -30.7% -27.4% -26.5%
Pennsylvania -18.7% 0.3% -14.2% -26.2% -18.5%
Wisconsin -25.4% 6.3% -16.5% -18.9% -20.7%
United States -21.9% -2.6% -15.6% -23.7% -23.9%
Table 4-15 exhibits the total value of manufacturing capital expenditures normalized by gross state manufacturing product,5 annually from 2005 to 2010. Examining the total value of manufacturing capital expenditures normalized by gross state manufacturing product allows for cross-state comparison of this measure. Compared to other competitive states and the United States in 2010, Wisconsin (0.081) was in the middle of the pack for this metric. The highest normalized manufacturing capital expenditures in 2010 were in Georgia (0.094).
Table 4-15 Total Value of Manufacturing Capital Expenditures Normalized by Gross State Manufacturing Product, 2005-2010
Total Value of Manufacturing Capital Expenditures Normalized by Gross State Manufacturing Product
Source: U.S. Census Bureau, Annual Survey of Manufactures; Moody’s Economy.com
5 Normalization is standard procedure if there is a need to compare between economies of different size. The total manufacturing capital expenditures in the state were divided by gross state manufacturing product to control for the size of manufacturing industry in each state.
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4.5 Shipments Table 4-16 displays the total value of manufacturing shipments for Wisconsin, competing states, and the United States for 2004 through 2010. Manufacturing shipments are defined as total value of all manufacturing products produced and shipped by all producers within manufacturing industries. Controlling for inflation, these data create an indicator that shows the exporting capacity of manufacturing businesses located within the state.
Table 4-16 Total Value of Manufacturing Shipments ($Mil) for Wisconsin, Competing States, and the United States, 2004-2010
Total Value of Manufacturing Shipments ($Mil) 2004 2005 2006 2007 2008 2009 2010
United States $4,916,783 $5,294,615 $5,424,958 $5,614,153 $5,538,012 $4,491,994 $4,916,647 Note: Capital expenditures adjusted for inflation to 2010 dollars Source: U.S. Census Bureau, Annual Survey of Manufactures Of the years 2004 through 2010, the highest level of value of manufacturing shipments in Wisconsin occurred in 2007 (the peak of the last business cycle) at $172 billion. This pattern is mirrored in most of the competing states, which reported the highest value in shipments in 2007 or 2008. From the trough of 2008, all states reported a positive gain in shipments from 2009 to 2010. Table 4-17 demonstrates the total value of manufacturing shipments normalized by gross state manufacturing product from 2004 through 2010. Investigating the total value of manufacturing shipments normalized by gross state manufacturing product is another measure to examine this metric across states. Compared to other competing states and the United States, Wisconsin (3.2) was the one of the highest in this cohort, surpassed only by Ohio (3.3). This indicates that the manufacturing industry in Wisconsin has a strong exporting capacity. In 2010, disregarding the United States, the highest normalized manufacturing shipments figure was in Michigan.
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Table 4-17 Total Value of Manufacturing Shipments Normalized by Gross State Manufacturing Product, 2004-2010
Total Value of Manufacturing Shipments Normalized by Gross State Manufacturing Product 2004 2005 2006 2007 2008 2009 2010
Georgia 2.9 3.1 3.2 3.1 3.3 2.9 3.0 Illinois 2.9 3.1 3.2 3.3 3.6 2.8 2.9 Indiana 2.8 3.1 3.3 3.0 3.2 2.7 2.8 Michigan 3.1 3.2 3.3 3.4 3.5 2.7 3.0 Minnesota 2.8 2.9 3.0 3.3 3.5 3.0 3.0 North Carolina 2.5 2.7 2.5 2.6 2.6 2.3 2.2 Ohio 3.1 3.3 3.3 3.4 3.7 3.1 3.3 Pennsylvania 2.9 3.2 3.3 3.3 3.6 3.0 3.0 Wisconsin 3.2 3.3 3.3 3.5 3.6 3.1 3.2 United States 2.9 2.9 2.8 2.9 2.9 2.5 2.5 Source: U.S. Census Bureau, Annual Survey of Manufactures; Moody’s Economy.com Table 4-18 shows the percentage change in the total value of manufacturing shipments for Wisconsin, competing states, and the United States for various time periods.
Table 4-18 Percent Change Total Value of Manufacturing Shipments for Wisconsin, Competing States, and the United States
Percentage Change of Total Value of Manufacturing Shipments 2008-2009 2009-2010 2004-2010 2007-2010 2008-2010
Georgia -16.2% 8.1% -13.1% -13.1% -9.4%
Illinois -19.9% 10.2% -0.6% -11.1% -11.7%
Indiana -19.4% 15.1% -2.1% -11.1% -7.2%
Michigan -24.0% 20.5% -23.3% -20.9% -8.4%
Minnesota -14.4% 5.9% 5.0% -5.2% -9.3%
North Carolina -13.0% 0.9% -6.1% -17.9% -12.2%
Ohio -23.4% 13.9% -11.7% -15.3% -12.8%
Pennsylvania -18.7% 7.2% 0.1% -10.9% -12.8%
Wisconsin -14.4% 10.4% -4.5% -13.0% -5.5%
United States -18.9% 9.5% 0.0% -12.4% -11.2%
Detailed Tables A.4-1 Employment by Industry Sector for Wisconsin, Competing States, and the United States, 2010 2010 Employment
NAICS NAICS Description Georgia Illinois Indiana Michigan Minnesota North Carolina Ohio Pennsylvania Wisconsin United States
55 Management of Companies and Enterprises 57,200 91,715 30,993 53,298 75,226 76,628 110,828 116,931 49,688 1,933,421
56 Administrative and Support and Waste Management and Remediation Services 249,922 361,895 148,767 241,373 119,502 227,152 275,773 264,802 125,085 7,278,287
81 Other Services (except Public Administration) 2.3% 2.5% 2.3% 2.4% 2.3% 2.0% 2.4% 2.5% 2.4% 2.4%
Gov’t Public Administration and Military 13.9% 10.0% 10.1% 12.2% 10.5% 14.6% 11.5% 10.3% 11.0% 12.7%
Total All Industries 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: Moody’s Economy.com
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5 Wisconsin’s Statewide Driver Industries and Industry Clusters 5.1 Overview of the Statewide Drivers To identify the statewide and regional driver industries, the research team used the cluster and discriminant analyses within the methodology described in detail in section 14 (About the Study). Unlike in the previous study on Wisconsin’s manufacturing sector in 2004, we defined a statewide driver based on only the cluster and discriminant analyses for statewide data (i.e., the identified driver industry did not need to appear among regional drivers in at least two regions, a condition necessary to be identified as a statewide driver in the 2004 study). Industries that were identified as statewide drivers by statistical cluster-discriminant analysis were subjected to further analysis that looked into national and regional supplier industries and at the major companies within the drivers. In Wisconsin, 37 driver industries were identified (Table 5-1 on next page). All of these 37 industries are identified as statewide drivers, with 30 identified as driver industries in two or more of the state’s seven regions. Regions ranked by the number of regional drivers are as follows:
• Southeast: 41 driver industries in the region. • East Central: 29 driver industries in the region. • West Central I: 29 driver industries in the region. • Central: 20 driver industries in the region. • West Central II: 19 driver industries in the region. • North: 16 driver industries in the region. • South: 12 driver industries in the region.
Statewide, the cluster-discriminant analysis assembled 287 4-digit NAICS industries into 10 groups (clusters). Each industry is described with 12 economic indicators. Among the economic indicators are measures that point to industries that are part of the regional base1 (driver industries). These economic indicators include high concentration of industry employment and output in the state (location quotient2 of employment and location quotient of output), high regional wages relative to U.S. wages, large regional industry’s share of national industry output, and high labor productivity. Two of the 10 clusters comprise 37 driver industries. A number of the 37 statewide drivers are closely related by a product they deliver and, as a result, by the use of inputs, shared technology, and labor talent. These industries are regrouped under predominantly 3-digit NAICS codes and constitute a group of 16 statewide drivers presented in Table 5-2.
1 Economic base analysis divides all industries in a region into two categories: basic and non-basic. Basic industries are those that are exporting from the region and bringing wealth from outside. These industries comprise the economic base of the region. 2 LQ=(gi/g)/(Gi/G) gi = Wisconsin gross product in industry (i) g = total gross product in Wisconsin Gi= U.S. gross product in industry (i) G = total U.S. gross product. A location quotient > 1.2 indicates specialization in an industry.
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It is important to note that a single firm does not comprise an “industry.” Even a small, highly successful firm does not generate enough business volume to meet the threshold for the designation of driver industry. However, such an organization may eventually become or form the catalyst of a driver industry in the future. Remember, too, that even a group of strong product- or service-specific companies, such as local restaurants, are necessary for a vibrant economy but do not typically have the buy-sell relationships outside of the state or outside of the region to constitute a driver industry. Other complex, emerging, and/or evolving industries have not yet been classified within broad government or independent systems in a manner that adequately approximates their economic impact. For example, electronic devices such as smartphones and tablets are as much reliant on downloadable applications that enhance their value as the hardware within the devices, but no one classification has yet to adequately address combined traits. Similar issues exist with medical equipment as well as the publishing industry (i.e., books viewed on electronic readers).
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Table 5-1 Matrix of Wisconsin's Driver Industries in the State and by Region
NAICS Title State-wide Central
East Central North South
South-east
West Central
I
West Central
II 2123 Nonmetallic mineral mining and quarrying х 3111 Animal food manufacturing х х
3113 Sugar and confectionery product manufacturing х х
3114 Fruit and vegetable preserving and specialty х х х х х 3115 Dairy product manufacturing х х х х х х х 3116 Animal slaughtering and processing х х х х 3118 Bakeries and tortilla manufacturing х 3119 Other food manufacturing х 3132 Fabric mills х 3161 Leather and hide tanning and finishing х х 3162 Footwear manufacturing х х х 3211 Sawmills and wood preservation х х x
3212 Plywood and engineered wood product mfg. х х х х х
3219 Other wood product manufacturing х х х х х х 3221 Pulp, paper, and paperboard mills х х х х х 3222 Converted paper product manufacturing х х х х х 3231 Printing and related support activities х х х х х 3255 Paint, coating, and adhesive manufacturing х 3256 Soap, cleaning compound, and toiletry mfg. х х 3261 Plastics product manufacturing х х х х х 3262 Rubber product manufacturing х 3272 Glass and glass product manufacturing х х х х х
3273 Cement and concrete product manufacturing х х
3279 Other nonmetallic mineral products х х х 3315 Foundries х х х х 3321 Forging and stamping х х 3322 Cutlery and handtool manufacturing х х х 3323 Architectural and structural metals mfg. х х х 3324 Boiler, tank, and shipping container mfg. х х х х 3325 Hardware manufacturing х х 3326 Spring and wire product manufacturing х х х х 3327 Machine shops and threaded product mfg. х х х х х
3328 Coating, engraving, and heat treating metals х х х х х
3329 Other fabricated metal product manufacturing х х х х х х х
3331 Agriculture, construction, and mining machinery manufacturing х х х
3332 Industrial machinery manufacturing х х х х х х х 3333 Commercial and service industry machinery х х х
3334 HVAC and commercial refrigeration equipment х х х х х х
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Table 5-1 Matrix of Wisconsin's Driver Industries in the State and by Region (continued)
NAICS Title State-wide Central
East Central North South
South-east
West Central
I
West Central
II 3335 Metalworking machinery manufacturing х х х х х х
3336 Turbine and power transmission equipment mfg. х х х х
3339 Other general purpose machinery manufacturing х х х х х х х
3341 Computer and peripheral equipment manufacturing х
3351 Electric lighting equipment manufacturing х 3352 Household appliance manufacturing х х х 3353 Electrical equipment manufacturing х х х
3359 Other electrical equipment and component manufacturing х
3361 Motor vehicle manufacturing х
3362 Motor vehicle body and trailer manufacturing х х х
3363 Motor vehicle parts manufacturing х 3366 Ship and boat building х
3369 Other transportation equipment manufacturing х х
3371 Household and institutional furniture mfg. х х х х х х 3372 Office furniture and fixtures manufacturing х
3379 Other furniture-related product manufacturing х х
3399 Other miscellaneous manufacturing х х
4233 Lumber and construction supply merchant wholesalers х
4246 Chemical merchant wholesalers х 4541 Electronic shopping and mail-order houses х х х 4841 General freight trucking х х х 4842 Specialized freight trucking х 4855 Charter bus industry х 4889 Other support activities for transportation х 5112 Software publishers х 5182 Data processing and related services х 5221 Depository credit intermediation х 5241 Insurance carriers х х 5511 Management of companies and enterprises х
6114 Business, computer, and management training х
6221 General medical and surgical hospitals х 7112 Spectator sports х 7113 Promoters of performing arts and sports х 7139 Other amusement and recreation industries х 7212 RV parks and recreational camps х
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5.2 Summary of Regional Driver Industries and Industry Clusters
Table 5-1 Statewide Driver Industries Driver Groups NAICS Industry Description Statistical
Cluster 1 3114 Fruit and vegetable preserving and specialty 5 2 3115 Dairy product manufacturing 6 3 316 Leather and allied product manufacturing (partial) 3161 Leather and hide tanning and finishing 5 3162 Footwear Manufacturing 5
4 321 Wood product manufacturing (partial) 3212 Plywood and engineered wood product mfg. 5 3219 Other wood product manufacturing 5
5 322 Paper manufacturing (complete) 3221 Pulp, paper, and paperboard mills 6 3222 Converted paper product manufacturing 5
6 3231 Printing and related support activities 5 7 3256 Soap, cleaning compound, and toiletry mfg. 5 8 3261 Plastics product manufacturing 5 9 327 Nonmetallic mineral product manufacturing (partial) 3272 Glass and glass product manufacturing 5 3279 Other nonmetallic mineral products 5
14 336 Transportation equipment manufacturing (partial) 3362 Motor vehicle body and trailer manufacturing 5 3369 Other transportation equipment manufacturing 6
15 337 Furniture and related product manufacturing (complete) 3371 Household and institutional furniture mfg. 5 3372 Office furniture and fixtures manufacturing 5 3379 Other furniture related product manufacturing 5
16 4541 Electronic shopping and mail-order houses 5 Industries italicized in the table are positively related to both a function of the discriminant analysis that points to the economic base industries and to the function that discriminates industries of high labor productivity.
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5.2.1 How Are Wisconsin’s Statewide Drivers Doing? The relative economic health of driver industries in Wisconsin is measured in Figure 5-1 by two factors: • Competitiveness as export specialization or orientation on the X axis (horizontal): Competitiveness is
measured in terms of the output location quotients in which a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in Wisconsin than it is nationally.
• Growth rate from 2008 through 2011 on the Y axis (vertical): In terms of industry growth, an industry is growing faster as it moves upward from zero; it is declining if it is below zero on the chart.
The size of each circle shows the gross product of each industry and represents the industry’s relative size as compared to the other industries. Interpretation All of Wisconsin’s 37 driver industries have a location quotient greater than 1.2, indicating competitiveness. Among the 37 driver industries, 31 industries that are above 0 percent on the Y axis have been growing from 2008 to 2011 in terms of the gross state product. Driver industries include: • Other Nonmetallic Mineral Products has the highest growth rate (34.6%). • Other Wood Product Manufacturing has the lowest growth rate (negative 27.5%). • Other Transportation Equipment Manufacturing has the highest LQ (9.06), but the industry has
relatively low growth rate (2.8%) compared to Wisconsin’s other driver industries. • Electrical Equipment Manufacturing has both a relatively high LQ (6.7) and growth rate (31.1%). In
addition, this industry is shown by the largest circle on the chart, which represents the highest gross product of a single industry in 2011.
A comparison of driver industries in this year’s study to 2004 study drivers for Location Quotient, Output Growth, and Gross Product can be found on page 5-87.
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Figure 5-1 Overview of Wisconsin’s Statewide Drivers
5.2.2 Driver and Industry Cluster Relationships in the State of Wisconsin For the study, an industry cluster analysis was conducted for each of the driver industries. The two following tables provide a summary of the results from these analyses and identify state and national supplier industries that are common to multiple statewide driver industries. To identify critical state and national suppliers to each industry, we looked at the supplier industries that contribute at least 3% as a total supply to the industry from all purchases made locally (within the state or the nation, respectively). (Note: This criterion differs from the one used in the 2004 study on Wisconsin manufacturing, in which the list of state and regional supplier industries was limited to a rule of 5% contribution and the national supply chain was complemented by the list of the top 10 supply industries. In addition, specific industries were not omitted, as in 2004, because they provide general services. With the growing importance of distributed electricity generation and business management strategies, we believe it is important to show the list of all industries that are critical suppliers and contribute at least 3% of total local purchases.) The supplier industries identified in Table 5-3 are found in the state economy and provide goods or services to multiple driver industries. Some of them, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the statewide driver industries produce and deliver the products their consumers demand. Improving the competitiveness of the industries that supply inputs to multiple statewide driver industries can indirectly improve the competitiveness of those driver industries. Table 5-4 presents the critical supply industries that are common suppliers to the driver industries on the national level but are not present or not sufficient (did not overcome the 3% threshold rule) in the state. This indicates that these industries either are not present in the state or are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the state may help reduce the importation of goods and services by the statewide driver industries.
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Table 5-3 State & National Supplier Industries Common to State Driver Industries
NAICS Title State Driver
Count of Drivers State
Suppliers National Suppliers
42 Wholesale trade 21 8 55 Management of companies and enterprises 19 7 484 Truck transportation 19 6 2211 Electric power generation, transmission, and distribution 13 1 3222 Converted paper product manufacturing х 11 8 3261 Plastics product manufacturing х 5 7 3221 Pulp, paper, and paperboard mills х 4 4 3116 Animal slaughtering and processing 4 3 3211 Sawmills and wood preservation 4 3 3219 Other wood product manufacturing х 3 1
3212 Veneer, plywood, and engineered wood product manufacturing х 2 3
531 Real estate 2 2
3114 Fruit and vegetable preserving and specialty food manufacturing х 2 2
517 Telecommunications 2 1 522 Credit intermediation and related activities 2 1 3324 Boiler, tank, and shipping container manufacturing х 2 1 3251 Basic chemical manufacturing 1 5 5614 Business support services 1 5 3115 Cheese manufacturing х 1 4 482 Rail transportation 1 3 1119 Other crop farming 1 3 5191 Internet publishing and broadcasting 1 3 493 Warehousing and storage 1 2 3119 Other food manufacturing 1 2 3231 Printing and related support activities х 1 2 1112 Vegetable and melon farming 1 1 2212 Natural gas distribution 1 1 3369 Other transportation equipment manufacturing х 1 1
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Table 5-4 National Supplier Industries Common to State Driver Industries
NAICS Title
Count of Drivers, National Suppliers
2122 Metal ore mining 13 3323 Architectural and structural metals manufacturing 11 3313 Alumina and aluminum production and processing 7 3241 Petroleum and coal products manufacturing 5 3339 Other general purpose machinery manufacturing 4
3345 Navigational, measuring, electromedical, and control instruments manufacturing 4
113 Forestry and logging 3 3112 Grain and oilseed milling 3 3113 Sugar and confectionery product manufacturing 3 3162 Footwear manufacturing 3 3252 Resin, synthetic rubber, and artificial synthetic fibers 3 112 Animal production 2 1113 Fruit and tree nut farming 2 2131 Support activities for mining 2 3121 Beverage manufacturing 2 3255 Paint, coating, and adhesive manufacturing 2 3279 Other nonmetallic mineral product manufacturing 2 3311 Iron and steel mills and ferroalloy manufacturing 2 3326 Spring and wire product manufacturing 2
3334 Ventilation, heating, air-conditioning, and commercial refrigeration equipment manufacturing 2
3399 Other miscellaneous manufacturing 2 8111 Automotive repair and maintenance 2 n.a. Federal electric utilities 2
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5.3 Profiles of the Driver Industries and Their Industry Clusters The remainder of this section addresses Wisconsin’s statewide drivers and their cluster industries. Overviews of each driver include 2009-2011 export data for Wisconsin, where available — i.e., the Foreign Trade Division, U.S. Census Bureau data are available at the NAICS 3-digit level only. When appropriate, the overview discussion will combine kindred manufacturing sectors with similar issues, as with the drivers in the Food Manufacturing (NAICS 311) subsector, which includes the industry groups 3114 (Fruits and Vegetables and Specialty Foods) and 3115 (Dairy). This section also includes NAICS definitions for driver industries; gross product and employment figures for 2011; and top establishments in the state by employment for driver industries (listing of top establishments having 20 or more employees), based on the Wisconsin WORKnet online database (worknet.wisconsin.gov), Wisconsin’s Workforce and Labor Market Information System.
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5.3.1 Food Manufacturing—NAICS 3113 Definition: Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products. The food products manufactured in these establishments are typically sold to wholesalers or retailers for distribution to consumers, but establishments primarily engaged in retailing bakery and candy products made on the premises not for immediate consumption are included. Establishments primarily engaged in manufacturing beverages are classified in NAICS 312, Beverage and Tobacco Product Manufacturing. 3114 Fruit & Vegetable Preserving & Specialty Food Manufacturing 3115 Dairy Product Manufacturing
Challenges: The food processing industry in Wisconsin is diverse and includes many large national and multinational companies and their brands, as well as a plethora of growing specialty companies that are capturing customer dollars from across the country. Food-manufacturing supply chains begin with Wisconsin’s growers and producers, which have benefitted from natural advantages (fertile land, favorable climate, and access to water) and a network of public and private organizations supporting and promoting the industry. For example, Tomah, Wisconsin, is home to acres of Ocean Spray cranberry bogs as well as three production lines that produce 31 million pounds of sweetened dried cranberries and concentrate annually.4 For the food industry to continue to grow as a driver, businesses, and how entities support them, must continue to evolve and develop expertise well beyond their core processes: meeting and exceeding regulatory food-safety standards, detailed monitoring and tracking of food supply chains and operations, applying technology to more productively process and distribute goods, and capitalizing on changing market trends (e.g., healthy, natural/organic, local, and sustainable goods). Skills and technologies to abet exporting will enhance growth for driver industries in this subsector as some consumers look to replace foreign-produced goods over health concerns, which will open opportunities for the Wisconsin Food Manufacturing subsector. To illustrate the competitiveness of Wisconsin’s Food Manufacturing subsector, exports grew by 17.1% in 2010-20115
3 Because of the difference in products of the two NAICS 4-digit industry groups (3114 and 3115) in this NAICS 3-digit subsector (311) and their different supply bases, the industries have not been collapsed into a NAICS 3-digit subsector as elsewhere in this section. 4 Ocean Spray Cranberries Inc. 5 Foreign Trade Division, U.S. Census Bureau.
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Export Changes: Wisconsin’s food exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Food Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 311, Food Manufacturing YTD Comparison: January – December
U.S. Dollar (adjusted to 2011) % Share % Change
Rank Country 2009 2010 2011 2009 2010 2011 2011/ 2010
Source: Foreign Trade Division, U.S. Census Bureau. Observations: Food Manufacturing in Wisconsin has increased its market share. Since 2009, United States exports of Food Manufacturing products via Wisconsin increased over 37%. For 2010-2011, the growth of overall food exports was over 17%. While exports to Mexico, the second-largest importing country, slightly declined (-4.8% in 2010-2011), Canada, the largest importer of food from Wisconsin (it receives almost half of all food exports from Wisconsin), increased its imports by 19.3%, 2010-2011, and by 34% since 2009. China, the fifth-largest importer of food from Wisconsin, Increased its imports by more than half, 2010-2011, and by more than 58% since 2009. 5.3.1.1 NAICS 3114 Fruit & Vegetable Preserving & Specialty Food Manufacturing Definition: This industry group includes (1) establishments that freeze food and (2) those that use preservation processes, such as pickling, canning, and dehydrating. Both types begin their production process with inputs of vegetable or animal origin. 31141 Frozen Food Manufacturing 31142 Fruit and Vegetable Canning, Pickling, and Drying
Gross Product: $999,423,000 – Rank 12th of 16 drivers ($997,720,000 – Rank 8th of 13 in 2004)6 Employment: 10,136 – Rank 12th of 16 drivers (11,720 – Rank 8th of 13 in 2004)
6 2004 comparisons are provided only for driver industries appearing both this study and the 2004 study.
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Top establishments:
Company Name Industry Description Employment
Size Region Nestle Pizza Division Frozen Specialty Food Manufacturing 1000+ East Central Seneca Foods Corp. Fruit and Vegetable Canning 1000+ Southeast Birds Eye Foods Inc. Frozen Specialty Food Manufacturing 250 - 499 Southeast
Birds Eye Foods Inc. Frozen Fruit, Juice, and Vegetable
Manufacturing 250 - 499 East Central Bonduelle USA Fruit and Vegetable Canning 250 - 499 Southeast Del Monte Foods Specialty Canning 250 - 499 South Lakeside Foods Inc. Fruit and Vegetable Canning 250 - 499 West Central I McCain Foods USA Frozen Specialty Food Manufacturing 250 - 499 Southeast McCain Foods USA Fruit and Vegetable Canning 250 - 499 West Central I Ocean Spray Cranberries Inc. Fruit and Vegetable Canning 250 - 499 Southeast On-Cor Frozen Foods Redi-Serve Frozen Specialty Food Manufacturing 250 - 499 Southeast Richelieu Foods Inc. Frozen Specialty Food Manufacturing 250 - 499 Southeast Seneca Foods Corp. Fruit and Vegetable Canning 250 - 499 Southeast Seneca Foods Corp. Fruit and Vegetable Canning 250 - 499 South Seneca Foods Corp. Fruit and Vegetable Canning 250 - 499 West Central I
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Associated Industry Cluster—3114 Fruit and Vegetable Preserving and Specialty Food Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 42 Wholesale trade
55 Management of companies and enterprises 3324 Metal can, box, and other metal container (light gauge) manufacturing
3324 Metal can, box, and other metal container (light gauge) manufacturing
55 Management of companies and enterprises
1112 Vegetable and melon farming 3114 Fruit and vegetable canning, pickling, and drying
3119 Flavoring syrup and concentrate manufacturing 484 Truck transportation
3116 Poultry processing 1111 Grain farming
2211 Electric power generation, transmission, and distribution 3116 Poultry processing
Consumer Industries for Typical Regional Industry 3114 Fruit and vegetable canning, pickling, and drying
3114 Frozen food manufacturing
722 Food services and drinking places
622 Hospitals
3119 Seasoning and dressing manufacturing
611 Junior colleges, colleges, universities, and professional schools
3121 Soft drink and ice manufacturing
3118 Bread and bakery product manufacturing
623 Nursing and residential care facilities
5.3.1.2 NAICS 3115 Dairy Product Manufacturing Definition: This industry group comprises establishments that manufacture dairy products from raw milk, processed milk, and dairy substitutes. 31151 Dairy Product (except Frozen) Manufacturing 31152 Ice Cream and Frozen Dessert Manufacturing
Gross Product: $2,063,457,000 – Rank 7th of 16 drivers ($1,402,890,000 – Rank 6th of 13 in 2004) Employment: 15,398 – Rank 7th of 16 (16,670 – Rank 6th of 13 in 2004)
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Top establishments:
Company Name Industry Description Employment
Size Region Land O'Lakes Inc. Cheese Manufacturing 1000+ Central Marathon Cheese Corp. Cheese Manufacturing 1000+ Central Sargento Foods Inc. Cheese Manufacturing 1000+ Southeast Associated Milk Producers Inc. Cheese Manufacturing 250 - 499 South CO-OP Regions-Organic Creamery Butter Manufacturing 250 - 499 West Central II Dairy Farmers of America Cheese Manufacturing 250 - 499 Southeast Grassland Dairy Products Inc. Creamery Butter Manufacturing 250 - 499 Central Great Lakes Cheese Cheese Manufacturing 250 - 499 West Central II Associated Milk Producers Inc. Cheese Manufacturing 100 - 249 West Central I Associated Milk Producers Inc. Cheese Manufacturing 100 - 249 West Central II Baker Cheese Factory Inc. Cheese Manufacturing 100 - 249 Southeast Bel Gioioso Cheese Inc. Cheese Manufacturing 100 - 249 East Central Churny Co. Inc. Cheese Manufacturing 100 - 249 East Central DCI Cheese Co. Cheese Manufacturing 100 - 249 East Central Foremost Farms USA Cheese Manufacturing 100 - 249 South Foremost Farms USA Cheese Manufacturing 100 - 249 South Gilman Cheese Corp. Cheese Manufacturing 100 - 249 Central Kerry Ingredients & Flavours Cheese Manufacturing 100 - 249 Central Lactalis Waste Water Treatment Cheese Manufacturing 100 - 249 South Land O'Lakes Industrial Cheese Cheese Manufacturing 100 - 249 Southeast Morning Glory Dairy Fluid Milk Manufacturing 100 - 249 East Central Saputo Cheese USA Inc. Cheese Manufacturing 100 - 249 West Central I Sartori Foods Cheese Manufacturing 100 - 249 Central
Schoep's Ice Cream Ice Cream and Frozen Dessert
Manufacturing 100 - 249 South Schreiber Foods Creamery Butter Manufacturing 100 - 249 Southeast Whitehall Specialties Inc. Cheese Manufacturing 100 - 249 West Central II
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Associated Industry Cluster—3115 Dairy Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
2211 Electric power generation, transmission, and distribution
112 Dairy cattle and milk production
42 Wholesale trade 3115 Cheese manufacturing 55 Management of companies and enterprises 3115 Fluid milk and butter manufacturing 23 Maintenance and repair construction of nonresidential
maintenance and repair 42 Wholesale trade
52A Monetary authorities and depository credit intermediation
3115 Dry, condensed, and evaporated dairy product manufacturing
5617 Services to buildings and dwellings 484 Truck transportation 484 Truck transportation 55 Management of companies and enterprises 3222 Paperboard container manufacturing Consumer Industries for Typical Regional Industry
3336 Other engine equipment manufacturing 3363 Motor vehicle parts manufacturing 3331 Construction machinery manufacturing 3369 Motorcycle, bicycle, and parts manufacturing 3339 Pump and pumping equipment manufacturing 3331 Farm machinery and equipment manufacturing 3332 Other industrial machinery manufacturing
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5.3.2 Leather and Allied Product Manufacturing (Partial)—NAICS 316 Definition: Establishments in the Leather and Allied Product Manufacturing subsector transform hides into leather by tanning or curing and fabricating the leather into products for final consumption. It also includes the manufacture of similar products from other materials, including products (except apparel) made from “leather substitutes,” such as rubber, plastics, or textiles. Rubber footwear, textile luggage, and plastics purses or wallets are examples of leather substitute products included in this group. The products made from leather substitutes are included in this subsector because they are made in similar ways leather products are made (e.g., luggage). They are made in the same establishments, so it is not practical to separate them. 3161 Leather and Hide Tanning and Finishing 3162 Footwear Manufacturing
Challenges: Leather and Allied Product Manufacturing is one of the oldest businesses known to mankind. The subsector, the smallest of Wisconsin’s driver groupings by gross product and employment, faces challenges to retain driver-industry status. Export Changes: Wisconsin’s leather a product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Leather and Allied Product Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 316, Leather and Allied Product Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 41,671,369 58,728,523 70,033,249 100.0% 100.0% 100.0% 19.2%
Source: Foreign Trade Division, U.S. Census Bureau.
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Observations: The state increased exports of the Leather and Allied Product Manufacturing subsector to the world by 19.2%, 2010-2011, and by more than 68% since 2009. Thailand emerged as the biggest importing country; U.S. exports of leather and allied products into the country from Wisconsin have grown from $22,000 to about $14 million since 2009. The former leader, Hong Kong, decreased its import of products from Wisconsin by more than 17%, 2010-2011. Mexico, after almost tripling its imports from Wisconsin in 2010 compared to 2009, also decreased 2011 volume by more than 47%. Gross Product: $71,409,000 – Rank 16th of 16 drivers Employment: 1,590 – Rank 16th of 16 5.3.2.1 NAICS 3161 Leather and Hide Tanning and Finishing Definition: This industry group comprises establishments primarily engaged in one or more of the following: (1) tanning, currying, and finishing hides and skins; (2) having others process hides and skins on a contract basis; and (3) dyeing or dressing furs. 31611 Leather and Hide Tanning and Finishing
Top establishments:
Company Name Industry Description Employment
Size Region Seidel Tanning Corp. Leather and Hide Tanning and Finishing 50 - 99 Southeast Thiele Tanning Co. Leather and Hide Tanning and Finishing 20 - 49 Southeast
Associated Industry Cluster—3161 Leather and Hide Tanning and Finishing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3116 Animal (except poultry) slaughtering, rendering, and processing
3116 Animal (except poultry) slaughtering, rendering, and processing
42 Wholesale trade 42 Wholesale trade
484 Truck transportation
Consumer Industries for Typical Regional Industry
3363 Motor vehicle parts manufacturing
3162 Footwear manufacturing
3161 Leather and hide tanning and finishing
3231 Printing
3159 Apparel accessories and other apparel manufacturing
3169 Other leather and allied product manufacturing
3149 All other textile product mills
8114 Personal and household goods repair and maintenance
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5.3.2.2 NAICS 3162 Footwear Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing footwear (except orthopedic extension footwear). 31621 Footwear Manufacturing
Top establishments: Company Name Industry Description Employment
Size Region
Allen Edmonds Footwear Manufacturing 250 - 499 Southeast B A Mason Co. Footwear Manufacturing 250 - 499 West Central I Weinbrenner Shoe Co. Footwear Manufacturing 100 - 249 Central Contract Stitching Inc. Footwear Manufacturing 20 - 49 Southeast L Jay Inc. Footwear Manufacturing 20 - 49 Central Linds World Impex Footwear Manufacturing 20 - 49 West Central I W C Russell Moccasin Co. Footwear Manufacturing 20 - 49 Southeast
Associated Industry Cluster—3162 Footwear Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3116 Animal (except poultry) slaughtering, rendering, and processing
42 Wholesale trade
42 Wholesale trade 55 Management of companies and enterprises
484 Truck transportation 3261 Plastics packaging materials and unlaminated film and sheet manufacturing
2211 Electric power generation, transmission, and distribution 3261 Other plastics product manufacturing
5413 Architectural, engineering, and related services 3251 Petrochemical manufacturing
Definition: Industries in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. The production processes of the Wood Product Manufacturing subsector include sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industry groups mainly based on the specific products manufactured. 3212 Veneer, Plywood, and Engineered Wood Product Manufacturing 3219 Other Wood Product Manufacturing
Challenges: Wisconsin’s forests feed a thriving Wood Products Manufacturing subsector, including driver industries making veneer, plywood, engineered wood, and other woods. Millions of state-owned acres are covered with forests, more so than any time since the 1930s,7 which means near-term supply of raw material should not be a constraint on the industry’s growth; in fact, exports in the subsector increased by 12% between 2010 and 20118.. But increased emphasis on application of new technologies and materials is necessary to help Wisconsin producers conserve resources while still satisfying demand, improve environmentally, and reduce costs via improved productivity of labor, material, and assets — all necessary to remain a driving industry. In addition, the industry groups must continue to innovate what are perceived as commodity products to thwart competitive non-wood products, such as foam boards as a substitute for plywood. Export Changes: Wisconsin’s wood product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Wood Product Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 321, Wood Product Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 135,560,797 177,930,026 199,276,038 100.00% 100.00% 100.00% 12.0%
Source: Foreign Trade Division, U.S. Census Bureau. 7 Wisconsin Country Forests Association. 8 Foreign Trade Division, U.S. Census Bureau.
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Observations: U.S. exports from Wisconsin in Wood Product Manufacturing increased, 2009-2011, by more than 47%, and grew 12%, 2010-2011. Canada is the largest importer, absorbing 68% of Wisconsin exports in 2011 and growing 12.7%, 2010-2011. China and Japan grew their imports, 2010-2011, by 42.5% and 38.8%, respectively. The United Kingdom is gradually reducing its share of imports from Wisconsin from 5.1% in 2009 to 3.3% in 2011. Canada, China, Japan, and the UK were all leading importers from Wisconsin in 2004. A new country among the top five importers, Italy, decreased its imports, 2010-2011, by 11.9%. Gross Product: $771,000,000 – Rank 14th of 16 drivers ($1,428,940,000 – Rank 5th of 13 in 2004) Employment: 12,538 – Rank 9th of 16 (26,050 – Rank 4th of 13 in 2004) 5.3.3.1 NAICS 3212 Veneer, Plywood, and Engineered Wood Product Manufacturing Definition: This industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing veneer and/or plywood; (2) manufacturing engineered wood members; and (3) manufacturing reconstituted wood products. This industry includes manufacturing plywood from veneer made in the same establishment or from veneer made in other establishments, and manufacturing plywood faced with nonwood materials, such as plastics or metal. 32121 Veneer, Plywood, and Engineered Wood Product Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region
Eggers Industries Hardwood Veneer and Plywood
Manufacturing 250 - 499 East Central
Eggers Industries Hardwood Veneer and Plywood
Manufacturing 250 - 499 Southeast
Great Lakes Veneer Inc. Hardwood Veneer and Plywood
Manufacturing 250 - 499 East Central
Marion Plywood Corp. Hardwood Veneer and Plywood
Manufacturing 250 - 499 East Central
Automated Products Inc. Engineered Wood Member (except Truss)
Manufacturing 100 - 249 Central Birchwood Manufacturing Co.
Hardwood Veneer and Plywood Manufacturing 100 - 249 West Central I
Columbia Forest Products Inc.
Hardwood Veneer and Plywood Manufacturing 100 - 249 North
Goodman Veneer & Lumber Co.
Hardwood Veneer and Plywood Manufacturing 100 - 249 East Central
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Top establishments (continued):
Company Name Industry Description Employment
Size Region Wisconsin Veneer & Plywood Inc.
Hardwood Veneer and Plywood Manufacturing 100 - 249 East Central
Birds Eye Veneer Co. Hardwood Veneer and Plywood
Manufacturing 50 - 99 North
Custom Component Co. Engineered Wood Member (except Truss)
Manufacturing 50 - 99 Southeast Saunders Wood Specialties Inc.
Hardwood Veneer and Plywood Manufacturing 50 - 99 North
Select Trusses & Lumber Truss Manufacturing 50 - 99 West Central II Associated Industry Cluster—3212 Veneer, Plywood, and Engineered Wood Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3211 Sawmills and wood preservation 484 Truck transportation
42 Wholesale trade 113 Logging
3219 Wood windows and doors and millwork 3211 Sawmills and wood preservation
23 Construction of new residential permanent site single- and multi-family structures
23 Construction of new nonresidential commercial and health care structures
3336 Other engine equipment manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3371 Wood kitchen cabinet and countertop manufacturing
3371 Institutional furniture manufacturing
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NAICS 3219 Other Wood Product Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing wood products (except establishments operating sawmills and wood preservation facilities; and establishments manufacturing veneer, plywood, or engineered wood products). 32191 Millwork 32192 Wood Container and Pallet Manufacturing 32199 All Other Wood Product Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Birchwood Best Wood Window and Door Manufacturing 1000+ North Kolbe & Kolbe Millwork Co. Inc. Other Millwork (including Flooring) 1000+ Central Kolbe Gallery Other Millwork (including Flooring) 1000+ Central Weather Shield Manufacturing Other Millwork (including Flooring) 1000+ North Algoma Hardwoods Inc. Wood Window and Door Manufacturing 250 - 499 East Central LaForce Inc. Other Millwork (including Flooring) 250 - 499 East Central Lincoln Wood Products Inc. Other Millwork (including Flooring) 250 - 499 Central Mastercraft Industries Inc. Other Millwork (including Flooring) 250 - 499
West Central I
Midwest Manufacturing Other Millwork (including Flooring) 250 - 499 West Central
I Semco Windows & Doors Other Millwork (including Flooring) 250 - 499 Central Semling-Menke Co. Other Millwork (including Flooring) 250 - 499 Central Western Building Products Inc. Other Millwork (including Flooring) 250 - 499 Southeast
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Associated Industry Cluster—3219 Other Wood Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3211 Sawmills and wood preservation 3211 Sawmills and wood preservation
42 Wholesale trade 42 Wholesale trade
3219 Wood windows and doors and millwork 3219 Wood windows and doors and millwork
484 Truck transportation 484 Truck transportation
55 Management of companies and enterprises 55 Management of companies and enterprises
Consumer Industries for Typical Regional Industry
3221 Paper mills
3219 Wood windows and doors and millwork
23 Construction of other new nonresidential structures
23 Construction of other new residential structures
23 Construction of new nonresidential commercial and health care structures
23 Maintenance and repair construction of nonresidential maintenance and repair
23 Construction of new residential permanent site single- and multi-family structures
42 Wholesale trade
3336 Other engine equipment manufacturing
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5.3.4 Paper Manufacturing (Complete)—NAICS 322 Definition: Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and include coating and laminating activities. The Paper Manufacturing subsector is subdivided into two industry groups, the first for the manufacturing of pulp and paper, and the second for the manufacturing of converted paper products. Papermaking is treated as the core activity of the subsector. Therefore, any establishment that makes paper (including paperboard), either alone or in combination with pulp manufacturing or paper converting, is classified as a paper or paperboard mill. Establishments that make pulp without making paper are classified as pulp mills. Pulp mills, paper mills, and paperboard mills comprise the first industry group. 3221 Pulp, Paper, and Paperboard Mills 3222 Converted Paper Product Manufacturing
Challenges: Like the wood products industries, Paper Manufacturing thrives in Wisconsin in part because of the ample supply of raw material. Paper Manufacturing is the third largest driver grouping tracked by gross product and employment — $5.23 billion and 32,837, respectively9 — and the subsector saw an increase in exports of 43.7% from 2009 through 2011.10 (Wisconsin accounts for 3.7% of the U.S. total exports in the overall Paper Manufacturing subsector.11) The subsector is populated by national household names (e.g., Kimberly-Clark) and Wisconsin stalwarts, such as Appleton, which after a century of history is now on the forefront of papermaking technology (its Encapsys® microencapsulation process puts a microscopic wall around a core substance). Therein lies a major challenge for Appleton and all manufacturers in this subsector in Wisconsin: to continue to evolve a science spanning millennia faster than the competition and to reinvent old markets and find new opportunities as digital media increasingly replace physical paper products across an array of business and consumer uses. For example, manufacturers have developed papers highly receptive to sterilization for use in healthcare as well as ultra-durable, water-resistant products for furniture applications.
9 Moody’s Economy.com. 10 Foreign Trade Division, U.S. Census Bureau. 11 Foreign Trade Division, U.S. Census Bureau.
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Export Changes: Wisconsin’s paper product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Paper Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 322, Paper Manufacturing YTD Comparison: January – December
U.S. Dollar (adjusted to 2011) % Share % Change
Rank Country 2009 2010 2011 2009 2010 2011 2011/ 2010
Source: Foreign Trade Division, U.S. Census Bureau. Observations: Canada is still the number-one country to which the U.S. exports paper from Wisconsin. Within the overall growth of paper exports by 9.6% from Wisconsin, 2010-2011, exports to Canada grew 13.4%. Mexico is holding at about the same level over the three years, $100 million, with a slight decline of 5.6%, 2010-2011. The United Kingdom increased its imports compared to 2004, and became the fourth largest importer, behind China, to which exports reached almost $30 million worth in 2010 but fell 20.6%, 2010-2011. A new country in the top five in paper product exports is the Netherlands, which also experienced a slight decline in imports over the three years. Gross Product: $5,227,416,000 – Rank 3rd of 16 drivers ($5,035,080,000 – Rank 1st of 13 in 2004) Employment: 32,837 – Rank 3rd of 163 (46,220 – Rank 2nd of 13 in 2004)
5.3.3.2 NAICS 3221 Pulp, Paper, and Paperboard Mills Definition: This industry group comprises establishments primarily engaged in manufacturing pulp, paper, or paperboard. 32211 Pulp Mills 32212 Paper Mills 32213 Paperboard Mills
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Top establishments:
Company Name Industry Description Employment
Size Region Appleton Papers Inc. Paperboard Mills 1000+ East Central BPM Inc. Paper (except Newsprint) Mills 1000+ East Central Domtar Paper Co. LLC Paper (except Newsprint) Mills 1000+ Central Flambeau River Papers LLC Paper (except Newsprint) Mills 1000+ North Georgia-Pacific Corp. Paper (except Newsprint) Mills 1000+ East Central Little Rapids Corp. Paperboard Mills 1000+ East Central New Page Corp. Paper (except Newsprint) Mills 1000+ Central New Page Corp. Paper (except Newsprint) Mills 1000+ Central Thilmany Papers Paper (except Newsprint) Mills 1000+ East Central Wausau Paper Corp. Paper (except Newsprint) Mills 1000+ North
Associated Industry Cluster—3221 Pulp, Paper, and Paperboard Mills
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
2211 Electric power generation, transmission, and distribution 42 Wholesale trade
42 Wholesale trade 113 Logging
55 Management of companies and enterprises 2212 Natural gas distribution
1133 Logging 2211 Electric power generation, transmission, and distribution
484 Truck transportation 55 Management of companies and enterprises
3221 Paper mills 3211 Sawmills and wood preservation
23 Maintenance and repair construction of nonresidential maintenance and repair
2212 Natural gas distribution 3241 Petroleum refineries
3211 Sawmills and wood preservation 482 Rail transportation
482 Rail transportation
Consumer Industries for Typical Regional Industry
3222 Paperboard container manufacturing
3231 Printing
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
3222 Sanitary paper product manufacturing
3221 Paper mills
3222 Stationery product manufacturing
3222 All other converted paper product manufacturing
5111 Newspaper publishers
3222 All other paper bag and coated and treated paper manufacturing
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5.3.3.3 NAICS 3222 Converted Paper Product Manufacturing Definition: This industry group comprises establishments primarily engaged in converting paper or paperboard without manufacturing paper or paperboard. 32221 Paperboard Container Manufacturing 32222 Paper Bag and Coated and Treated Paper Manufacturing 32223 Stationery Product Manufacturing 32229 Other Converted Paper Product Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region
Bemis Flexible Packaging-Milprint Paper Bag and Coated and
Treated Paper Manufacturing 1000+ East Central
Hattiesburg Paper Co. LLC Sanitary Paper Product
Manufacturing 1000+ East Central
Hoffmaster Group Inc. All Other Converted Paper
Product Manufacturing 1000+ East Central
Kimberly-Clark Sanitary Paper Product
Manufacturing 1000+ East Central
MarquipWardUnited All Other Converted Paper
Product Manufacturing 1000+ North
Rollguard Paper Bag and Coated and
Treated Paper Manufacturing 1000+ East Central
Strata Graph Paper Bag and Coated and
Treated Paper Manufacturing 1000+ East Central
Western States Envelope & LBL Paper Bag and Coated and
Treated Paper Manufacturing 1000+ Southeast
Belmark Inc. Paper Bag and Coated and
Treated Paper Manufacturing 250 - 499 East Central
Freedom Graphic Systems Inc. All Other Converted Paper
Product Manufacturing 250 - 499 South
Green Bay Packaging Inc. Corrugated and Solid Fiber Box
Manufacturing 250 - 499 East Central
Kimberly-Clark Sanitary Paper Product
Manufacturing 250 - 499 East Central
New Page Corp. All Other Converted Paper
Product Manufacturing 250 - 499 Central
Pactiv Corp. Paper Bag and Coated and
Treated Paper Manufacturing 250 - 499 West Central I
Paperboard Products Corrugated and Solid Fiber Box
Manufacturing 250 - 499 Central
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Top establishments (continued):
Company Name Industry Description Employment
Size Region
Rock-Tenn Co. Folding Paperboard Box
Manufacturing 250 - 499 Central
S C Data Center All Other Converted Paper
Product Manufacturing 250 - 499 South
Sharp Packaging Inc. Paper Bag and Coated and
Treated Paper Manufacturing 250 - 499 Southeast
Thilmany Nicolet Mill Paper Bag and Coated and
Treated Paper Manufacturing 250 - 499 East Central
WS Packaging Group Inc. Paper Bag and Coated and
Treated Paper Manufacturing 250 - 499 East Central Associated Industry Cluster—3222 Converted Paper Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3221 Paper mills 3221 Paper mills
42 Wholesale trade 3221 Paperboard mills
55 Management of companies and enterprises 42 Wholesale trade
484 Truck transportation 3222 Sanitary paper product manufacturing
3222 Sanitary paper product manufacturing 55 Management of companies and enterprises
2211 Electric power generation, transmission, and distribution 3251 Petrochemical manufacturing
3221 Paperboard mills
3261 Plastics packaging materials and unlaminated film and sheet manufacturing
Consumer Industries for Typical Regional Industry
3231 Printing
3221 Paper mills
3222 Sanitary paper product manufacturing
3115 Cheese manufacturing
3256 Soap and cleaning compound manufacturing
3222 Coated and laminated paper, packaging paper, and plastics film manufacturing
3114 Fruit and vegetable canning, pickling, and drying
3222 Paperboard container manufacturing
3114 Frozen food manufacturing
3116 Animal (except poultry) slaughtering, rendering, and processing
3121 Breweries
622 Hospitals
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5.3.5 Printing and Related Support Activities—NAICS 3231 (or 323)12 Definition: Businesses in the Printing and Related Support Activities subsector print products, such as newspapers, books, labels, business cards, stationery, business forms, and other materials, and perform support activities, such as data imaging, platemaking services, and bookbinding. The support activities included here are an integral part of the printing industry, and a product (a printing plate, a bound book, or a computer disk or file) that is an integral part of the printing industry is almost always provided by these operations. Processes used in printing include a variety of methods used to transfer an image from a plate, screen, film, or computer file to some medium, such as paper, plastics, metal, textile articles, or wood. The most prominent of these methods is to transfer the image from a plate or screen to the medium (lithographic, gravure, screen, and flexographic printing). A rapidly growing new technology uses a computer file to directly "drive" the printing mechanism to create the image and new electrostatic and other types of equipment (digital or nonimpact printing). In contrast to many other classification systems that locate publishing of printed materials in manufacturing, NAICS classifies the publishing of printed products in Subsector 511, Publishing Industries (except Internet). Though printing and publishing are often carried out by the same enterprise (a newspaper, for example), it is less and less the case that these distinct activities are carried out in the same establishment. When publishing and printing are done in the same establishment, the establishment is classified in Sector 51, Information, in the appropriate NAICS industry even if the receipts for printing exceed those for publishing. This subsector includes printing on clothing because the production process for that activity is printing, not clothing manufacturing. For instance, the printing of T-shirts is included in this subsector. In contrast, printing on fabric (or gray goods) is not included. This activity is part of the process of finishing the fabric and is included in the NAICS Textile Mills subsector in Industry 31331, Textile and Fabric Finishing Mills. 32311 Printing 32312 Support Activities for Printing
Challenges: Few industries in Wisconsin are undergoing as much change as Printing and Support Activities — actual change and change in economic analysis. For starters, the government re-categorized the industry with the introduction of NAICS codes. The NAICS change placed publishing (in the SIC code in the Printing, Publishing, and Allied Industries) primarily in the Information sector and retains only printing in Manufacturing. So a single large industry has now been disaggregated from an economist’s perspective. From a real-world business-owner perspective, similar changes are underway that the NAICS change foretold: publishing is increasingly digital — downloadable books for readers and tablets. Many businesses in this sector are in publishing (Information) as well, and so they, as a whole entity, don’t experience the “halving” that the government tracks, but they must navigate the changes these trends present and be able to adapt to digital opportunities — or lose sales opportunities to digital competitors. Even within the physical printing environment, the industry group has witnessed colossal
12 NAICS 323 is the same as NAICS 3231, Printing and Related Support Activities.
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changes as high-quality personal and office equipment eliminate entire lines of business. Despite it all, Wisconsin Printing and Related Support Activities grew output modestly 2008 through 2011, and the industry group dramatically grew exports to the world by 20.7%. To sustain growth, the Wisconsin Printing and Support Activities industry group will need to continue to highlight the value of printed products in an increasingly paperless world. Printing applications that remain strong despite increases in digital media include display, packaging, and labeling applications. Export Changes: Wisconsin’s print product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Printing and Related Support Activities:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 323, Printing and Related Support Activities
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 341,464,114 407,535,884 491,835,860 100.0% 100.0% 100.0% 20.7%
Source: Foreign Trade Division, U.S. Census Bureau.
Observations: U.S. exports of products of the Printing and Related Support Activities subsector to the world grew over 20% in 2010-2011, and more than 44% since 2009. The largest importer of these products from Wisconsin is Canada, absorbing more than 77% of all exports of printing products. Except for Mexico, all countries grew imports from Wisconsin in this industry. Gross Product: $2,297,133,000 – Rank 6th of 16 drivers Employment: 27,122 – Rank 4th of 16 drivers
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Top establishments:
Company Name Industry Description Employment
Size Region Heartland Label Printers Inc. Commercial Gravure Printing 1000+ East Central Quad Systems LLC Commercial Gravure Printing 1000+ Southeast Quad Tech Inc. Commercial Gravure Printing 1000+ Southeast Quad/Graphics Creative Solutions Commercial Gravure Printing 1000+ Southeast Quad/Graphics Inc. Commercial Gravure Printing 1000+ Southeast Quad/Graphics Inc. Commercial Gravure Printing 1000+ Southeast R R Donnelley Commercial Gravure Printing 1000+ South R R Donnelley Commercial Gravure Printing 1000+ East Central Webcrafters Inc. Books Printing 1000+ South Empire Screen Printing Inc. Commercial Screen Printing 250 - 499 West Central II Independent Printing Co. Inc. Commercial Gravure Printing 250 - 499 East Central Outlook Group Corp. Commercial Gravure Printing 250 - 499 East Central R R Donnelley Commercial Gravure Printing 250 - 499 East Central R R Donnelley Commercial Gravure Printing 250 - 499 East Central R R Donnelley Commercial Gravure Printing 250 - 499 East Central Suttle-Straus Inc. Commercial Gravure Printing 250 - 499 South Times Printing Co. Inc. Commercial Gravure Printing 250 - 499 Southeast Worzalla Publishing Co. Commercial Gravure Printing 250 - 499 Central
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Associated Industry Cluster—3231 Printing and Related Support Activities
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3221 Paper mills 3221 Paper mills
42 Wholesale trade 42 Wholesale trade
3222 Coated and laminated paper, packaging paper and plastics film manufacturing 3222
Coated and laminated paper, packaging paper and plastics film manufacturing
55 Management of companies and enterprises 3222 Sanitary paper product manufacturing
3222 Sanitary paper product manufacturing 55 Management of companies and enterprises
522 Nondepository credit intermediation and related activities 3259 Printing ink manufacturing
2211 Electric power generation, transmission, and distribution 531 Real estate
522 Nondepository credit intermediation and related activities
3231 Printing
3231 Support activities for printing
Consumer Industries for Typical Regional Industry
55 Management of companies and enterprises 42 Wholesale trade
52A Monetary authorities and depository credit intermediation
722 Food services and drinking places
523 Securities, commodity contracts, investments, and related activities
522 Nondepository credit intermediation and related activities
5241 Insurance carriers
5111 Periodical publishers
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5.3.6 Soap, Cleaning Compound, and Toilet Preparation Manufacturing—NAICS 3256 Definition: This Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups. Challenges: The Soap, Cleaning Compound, and Toilet Preparation Manufacturing industry group of the Chemical Manufacturing subsector exhibited strong 2008-2011 output growth of more than 20%, but this relatively small industry ($746 million) has a modest location quotient (an industry is increasingly more competitive as it moves from LQ=1 to higher LQ, meaning it sells more goods outside of Wisconsin and, thus, generates more money for the state).13 Wisconsin manufacturers in this industry group must increasingly align their product lines with trends affecting the broad consumer non-durables market: healthier products with less environmental impact, in the product itself and the processes used to create it. This moderate technology-intensive industry group must continue to look to scientific breakthroughs to address many of these challenges. For example, SC Johnson & Son Inc. reports that the company has cut 48 million VOCs from its products over the last five years; it also employs a sustainability strategy that includes more disclosure on product ingredients and reducing resource use. Export Changes: Wisconsin’s chemical product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Chemical Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 325, Chemical Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 1,025,749,528 1,209,554,538 1,535,335,855 100.0% 100.0% 100.0% 26.9%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: U.S. exports of products of the Chemical Manufacturing subsector to the world from Wisconsin grew almost 27%, 2010-2011, and Canada absorbed over 40% of these exports, nearly doubling its imports of chemical manufacturing, 2010-2011. China, although importing about 10 times less than Canada, also increased its imports 2010-2011, by 12.6% ,and more than 20% since 2009. The three other countries
13 Moody’s Economy.com
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among the top five — Germany, France, and Mexico — decreased their imports of chemical manufacturing from Wisconsin in 2011. 32561 Soap and Cleaning Compound Manufacturing 32562 Toilet Preparation Manufacturing
Gross Product: $746,387,000 – Rank 15th of 16 drivers Employment: 5,053 – Rank 14th of 14 Top establishments:
Company Name Industry Description Employment
Size Region
Diversey Holdings Inc. Polish and Other Sanitation Good
Manufacturing 1000+ Southeast
Diversey Inc. Polish and Other Sanitation Good
Manufacturing 1000+ Southeast
S C Johnson & Son Inc. Polish and Other Sanitation Good
Manufacturing 1000+ Southeast Kleen Test Products Corp.
Polish and Other Sanitation Good Manufacturing 250 - 499 Southeast
Northern Labs Inc. Toilet Preparation Manufacturing 250 - 499 Southeast Guy & O'Neill Inc. Toilet Preparation Manufacturing 100 - 249 Southeast Kleen Test Products Corp.
Polish and Other Sanitation Good Manufacturing 100 - 249 Southeast
Essential Industries Inc. Soap and Other Detergent Manufacturing 50 - 99 Southeast Kleen Test Products Corp.
Polish and Other Sanitation Good Manufacturing 50 - 99 Southeast
Racine Industries Inc. Polish and Other Sanitation Good
Manufacturing 50 - 99 Southeast
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Associated Industry Cluster—3256 Soap, Cleaning Compound, and Toiletry Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3256 Soap and cleaning compound manufacturing 444 Retail – Building material and garden supply
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
42 Wholesale trade 2122 Iron ore mining
5417 Scientific research and development services 3279 Ground or treated mineral and earth manufacturing
3222 Paperboard container manufacturing n.a. Federal electric utilities
3261 Other plastics product manufacturing 3261 Laminated plastics plate, sheet (except packaging), and shape manufacturing
2131 Support activities for oil and gas operations
3151 Apparel knitting mills
452 Retail – General merchandise
Consumer Industries for Typical Regional Industry
3256 Soap and cleaning compound manufacturing
55 Management of companies and enterprises
3132 Nonwoven fabric mills
3115 Cheese manufacturing
1121 Dairy cattle and milk production
622 Hospitals
3253 Pesticide and other agricultural chemical manufacturing
1111 Grain farming
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5.3.7 Plastics Product Manufacturing—NAICS 3261 Definition: This industry group comprises establishments primarily engaged in processing new or spent (i.e., recycled) plastics resins into intermediate or final products, using such processes as compression molding, extrusion molding, injection molding, blow molding, and casting. Within most of these industries, the production process is such that a wide variety of products can be made. Challenges: Plastics exports from Wisconsin rose from $502 million to $671 million in 2009 through 2011,14 and the industry group ranks fourth among state driver groupings in gross product.15 As a NAICS industry group, Plastic Products Manufacturing ranks fifth in employment.16 Innovation is both the key and the challenge for Wisconsin plastics makers to continue to be a driver in the economy. Wisconsin manufacturers and institutions of higher education have been on the forefront of plastics recycling and biodegradable plastics. For example, Wisconsin plastics producer Bemis offers biodegradable shrink film made from corn. Other Plastic Products Manufacturing companies are working to advance usage characteristics, such as durability, strength, and scratch-resistance, that would enable them to supplant other materials in finished products: e.g., EVCO Plastics holds expertise in converting metal components and assemblies to plastic. Efforts by state and nonprofit organizations to further innovation of plastic manufacturers will help the industry group to continue to drive the Wisconsin economy. Export Changes: Wisconsin’s plastics and rubber product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Plastics and Rubber Products Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 326, Plastics and Rubber Products Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 502,007,475 629,473,521 671,249,448 100.0% 100.0% 100.0% 6.6%
Source: Foreign Trade Division, U.S. Census Bureau.
Observations: Exports of plastics and rubber products from the U.S. from Wisconsin are steadily growing. Overall, they increased 6.6%, 2010-2011, and more than 33% since 2009. Canada is the top importer from Wisconsin, with 46% of total state exports in 2011. Exports to Canada grew 7.8%, 2010-2011, and, although its share is smaller than in 2009, exports grew more than 23% between 2009 and 2011. Mexico is the 14 Foreign Trade Division, U.S. Census Bureau. 15 Moody’s Economy.com. 16 Moody’s Economy.com.
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second largest importer of plastics and rubber products with 16.9% of total U.S. exports from Wisconsin. Mexico increased its imports by almost 8%, 2010-2011. Export of plastics and rubber products to China declined more than 22%, 2010-2011, while Germany and Belgium increased their imports by double-digit percentages, with Belgium almost doubling its imports since 2009. 32611 Plastics Packaging Materials and Unlaminated Film and Sheet 32612 Plastics Pipe, Pipe Fitting, and Unlaminated Profile Shape Manufacturing 32613 Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing 32614 Polystyrene Foam Product Manufacturing 32615 Urethane and Other Foam Product (except Polystyrene) Manufacturing 32616 Plastics Bottle Manufacturing 32619 Other Plastics Product Manufacturing
Gross Product: $2,597,565,000 – Rank 5th of 16 drivers Employment: 24,841 – Rank 5th of 16 Top Establishments:
Company Name Industry Description Employment
Size Region Bemis Contract Group All Other Plastics Product Manufacturing 1000+ Southeast
Curwood Inc. Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing 1000+ East Central
Mgs Manufacturing Group All Other Plastics Product Manufacturing 1000+ Southeast Phillips-Medisize All Other Plastics Product Manufacturing 1000+ West Central I Presto Products Co. All Other Plastics Product Manufacturing 1000+ East Central TecStar Manufacturing Co. All Other Plastics Product Manufacturing 1000+ Southeast Tulip Corp. All Other Plastics Product Manufacturing 1000+ Southeast Aptar Mukwonago All Other Plastics Product Manufacturing 250 - 499 Southeast Bemis Co. Inc. All Other Plastics Product Manufacturing 250 - 499 East Central
Cardinal Cg Co. Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing 250 - 499 South
Dickten Masch Plastics All Other Plastics Product Manufacturing 250 - 499 Southeast Dutchland Plastics Corp. All Other Plastics Product Manufacturing 250 - 499 Southeast EVCO Plastics All Other Plastics Product Manufacturing 250 - 499 South
Exopack Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing 250 - 499 West Central II
Miniature Precision Components All Other Plastics Product Manufacturing 250 - 499 Southeast Penda Corp. All Other Plastics Product Manufacturing 250 - 499 South Phillips-Medisize All Other Plastics Product Manufacturing 250 - 499 West Central I Phillips-Medisize All Other Plastics Product Manufacturing 250 - 499 North Phillips-Medisize All Other Plastics Product Manufacturing 250 - 499 Central Phillips-Medisize Corp. All Other Plastics Product Manufacturing 250 - 499 West Central I
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Top establishments (continued):
Company Name Industry Description Employment Size
Region
Placon Corp. All Other Plastics Product Manufacturing 250 - 499 South Plastic Ingenuity Inc. All Other Plastics Product Manufacturing 250 - 499 South Prent Corp. All Other Plastics Product Manufacturing 250 - 499 South Statistical Plastics Corp. All Other Plastics Product Manufacturing 250 - 499 Southeast Sussex IM All Other Plastics Product Manufacturing 250 - 499 Southeast TecStar Manufacturing Co.
All Other Plastics Product Manufacturing 250 - 499 Southeast
Associated Industry Cluster—3261 Plastics Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 5191 Internet publishing and broadcasting
3261 Plastics packaging materials and unlaminated film and sheet manufacturing 3311 Iron and steel mills and ferroalloy manufacturing
55 Management of companies and enterprises 8111 Car washes
3252 Plastics material and resin manufacturing 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
3222 Paperboard container manufacturing
52A Monetary authorities and depository credit intermediation
484 Truck transportation
3251 Other basic organic chemical manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry
3261 Other plastics product manufacturing
3115 Cheese manufacturing
3256 Soap and cleaning compound manufacturing
3221 Paper mills
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
622 Hospitals
3261 Plastics packaging materials and unlaminated film and sheet manufacturing
23 Construction of other new residential structures
3222 Sanitary paper product manufacturing
722 Food services and drinking places
23 Construction of other new nonresidential structures
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5.3.8 Nonmetallic Mineral Product Manufacturing (Partial)—NAICS 327 Definition: The Nonmetallic Mineral Product Manufacturing subsector transforms mined or quarried nonmetallic minerals, such as sand, gravel, stone, clay, and refractory materials, into products for intermediate or final consumption. Processes used include grinding, mixing, cutting, shaping, and honing. Heat often is used in the process, and chemicals are frequently mixed to change the composition, purity, and chemical properties for the intended product. For example, glass is produced by heating silica sand to the melting point (sometimes combined with cullet or recycled glass) and then drawn, floated, or blow-molded to the desired shape or thickness. Refractory materials are heated and then formed into bricks or other shapes for use in industrial applications. The Nonmetallic Mineral Product Manufacturing subsector includes establishments that manufacture products, such as bricks, refractories, ceramic products, and glass and glass products, such as plate glass and containers. Also included are cement and concrete products, lime, gypsum and other nonmetallic mineral products, including abrasive products, ceramic plumbing fixtures, statuary, cut stone products, and mineral wool. The products are used in a wide range of activities from construction and heavy and light manufacturing to articles for personal use. Mining, beneficiating, and manufacturing activities often occur in a single location. Separate receipts will be collected for these activities whenever possible. When receipts cannot be broken out between mining and manufacturing, establishments that mine or quarry nonmetallic minerals, beneficiate the nonmetallic minerals, and further process the nonmetallic minerals into a more finished manufactured product are classified based on the primary activity of the establishment. A mine that manufactures a small amount of finished products will be classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. A mining establishment whose primary output is a more finished manufactured product will be classified in the Manufacturing Sector. Excluded from the Nonmetallic Mineral Product Manufacturing subsector are establishments that primarily beneficiate mined nonmetallic minerals. Beneficiation is the process whereby the extracted material is reduced to particles that can be separated into mineral and waste, the former suitable for further processing or direct use. Beneficiation establishments are included in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. 3272 Glass and glass product manufacturing 3279 Other nonmetallic mineral products
Challenges: This Wisconsin subsector has exhibited extremely high output growth (34.6% from 2008-2011)17 and high export growth (39.3% from 2009-2011).18 While perceived as old-world due to its products — glass, clay, and concrete — innovation is critical, especially in developing products for applications that promise long-term growth. For example, in the Glass and Glass Product Manufacturing industry group, Cardinal Glass Industries makes glass used in photovoltaic solar panels (renewable energy market), and the diversified company also makes products ranging from optical glass to insulated glass. Innovation and application of new technologies will also help the Nonmetallic Mineral Product Manufacturing 17 Moody’s Economy.com. 18 Foreign Trade Division, U.S. Census Bureau.
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subsector deal with challenges that could derail competitiveness: managing capital-intensive processes in a cost-effective manner, minimizing energy consumption, and complying with environmental requirements. Export Changes: Wisconsin’s nonmetallic mineral product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Nonmetallic Mineral Product Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 327, Nonmetallic Mineral Product Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 111,951,977 122,401,819 155,903,074 100.0% 100.0% 100.0% 27.4%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: Exports of glass and glass products from the U.S. via Wisconsin grew 27%, 2010-2011. Canada is the top importer from Wisconsin and Mexico is second, but a new country is rapidly expanding its imports: Malaysia. While exports to Canada grew 20% and to Mexico almost 10%, 2010-2011, exports to Malaysia increased more than 10 times, growing from $1 million to more than $13.5 million, 2010-2011. Germany and China have doubled their imports since 2009. Gross Product: $804,883,000 – Rank 13th of 16 drivers Employment: 4,675 – Rank 15th of 16 5.3.8.1 NAICS 3272 Glass and Glass Product Manufacturing Definition: This industry comprises establishments primarily engaged in manufacturing glass and/or glass products. Establishments in this industry may manufacture glass and/or glass products by melting silica sand or cullet, or purchasing glass. 32721 Glass and Glass Product Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region
Wynd Star Doors Glass Product Manufacturing Made of
Purchased Glass 1000+ Southeast
Cardinal Ig Co. Glass Product Manufacturing Made of
Purchased Glass 250 - 499 West Central II Central Garden & Pet Co.
Glass Product Manufacturing Made of Purchased Glass 250 - 499 Southeast
Cardinal Fg Co. Flat Glass Manufacturing 100 - 249 West Central I Cardinal Fg Co. Flat Glass Manufacturing 100 - 249 South
Cardinal Lg Co. Glass Product Manufacturing Made of
Purchased Glass 100 - 249 West Central I Thermo Fisher Scientific Inc.
Glass Product Manufacturing Made of Purchased Glass 100 - 249 Southeast
Cardinal Ag Co.. Glass Product Manufacturing Made of
Purchased Glass 50 - 99 South Custom Glass Products Flat Glass Manufacturing 50 - 99 Central Monarch Plastics Inc Glass Container Manufacturing 50 - 99 Southeast Thermo Fisher Scientific Inc.
Glass Product Manufacturing Made of Purchased Glass 50 - 99 East Central
Associated Industry Cluster—3272 Glass and Glass Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution 3261
Laminated plastics plate, sheet (except packaging), and shape manufacturing
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
3272 Glass product manufacturing made of purchased glass 493 Warehousing and storage
484 Truck transportation 5614 Business support services
3222 Paperboard container manufacturing 3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
3272 Flat glass manufacturing 448 Retail – Clothing and clothing accessories 52A Monetary authorities and depository credit
intermediation 3251 Alkalies and chlorine manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3312 Steel product manufacturing from purchased steel
3113 Chocolate and confectionery manufacturing from cacao beans
3344 Other electronic component manufacturing
3113 Nonchocolate confectionery manufacturing
Consumer Industries for Typical Regional Industry
3121 Breweries
3272 Glass product manufacturing made of purchased glass
3114 Fruit and vegetable canning, pickling, and drying
3119 Seasoning and dressing manufacturing
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5.3.8.2 NAICS 3279 Other Nonmetallic Mineral Product Manufacturing Definition: The Other Nonmetallic Mineral Product Manufacturing industry group comprises establishments manufacturing nonmetallic mineral products (except clay products, refractory products, glass products, cement and concrete products, lime, and gypsum products). 32791 Abrasive Product Manufacturing 32799 All Other Nonmetallic Mineral Product Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region
Michels Stone Cut Stone and Stone Product
Manufacturing 1000+ Southeast 3M Co. Abrasive Product Manufacturing 100 - 249 West Central I
Specialty Granules Ground or Treated Mineral and Earth
Manufacturing 100 - 249 East Central USG Interiors Mineral Wool Manufacturing 100 - 249 Southeast Wausaukee Composites Inc. Mineral Wool Manufacturing 100 - 249 East Central
Badger Mining Corp. Cut Stone and Stone Product
Manufacturing 50 - 99 West Central II ECCCorrosion Inc. Mineral Wool Manufacturing 50 - 99 Central Fiberdome Inc. Mineral Wool Manufacturing 50 - 99 Southeast Michels Materials/Fdl Stone
Cut Stone and Stone Product Manufacturing 50 - 99 Southeast
Valders Stone & Marble Inc.
Cut Stone and Stone Product Manufacturing 50 - 99 Southeast
Wausaukee Composites Inc. Mineral Wool Manufacturing 50 - 99 East Central
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Associated Industry Cluster—3279 Other Nonmetallic Mineral Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3111 Dog and cat food manufacturing 3113 Nonchocolate confectionery manufacturing
3271 Brick, tile, and other structural clay product manufacturing 3323
Plate work and fabricated structural product manufacturing
1119 All other crop farming 2122 Iron ore mining
5419 All other miscellaneous professional, scientific, and technical services 5614 Business support services
5191 Internet publishing and broadcasting 493 Warehousing and storage
3118 Tortilla manufacturing 3113 Chocolate and confectionery manufacturing from cacao beans
3219 Wood container and pallet manufacturing 3335 Metal cutting and forming machine tool manufacturing
5414 Specialized design services
Consumer Industries for Typical Regional Industry
3333 Vending, commercial, industrial, and office machinery manufacturing
623 Nursing and residential care facilities
115 Support activities for agriculture and forestry
3344 Semiconductor and related device manufacturing
3344 Bare printed circuit board manufacturing
3327 Machine shops
493 Warehousing and storage
3371 Metal and other household furniture (except wood) manufacturing1
445 Retail – Food and beverage
5121 Motion picture and video industries
5111 Book publishers
3116 Poultry processing
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5.3.9 Foundries—NAICS 3315 Definition: This industry group comprises establishments primarily engaged in pouring molten metal into molds or dies to form castings. Establishments making castings and further manufacturing, such as machining or assembling a specific manufactured product, are classified in the industry of the finished product. Foundries may perform operations, such as cleaning and deburring, on the castings they manufacture. More involved processes, such as tapping, threading, milling, or machining to tight tolerances, which transform castings into more finished products, are classified elsewhere in the manufacturing sector based on the product being made. Establishments in this industry group make castings from purchased metals or in integrated secondary smelting and casting facilities. When the production of primary metals is combined with making castings, the establishment is classified in 331 with the primary metal being made. Challenges: Products from this industry group range from engine blocks to castings for oil field drilling. Because of the diversity of products, the industry group also has many unique technical processes and, along with them, unique challenges. For example, sand is often used to make casting molds, and the sand is reused until heat and mechanical abrasion render older sand unsuitable. Diversification remains vital; despite processes that seem old-world, manufacturers in this industry group can grow if they recognize new markets that require the technical characteristics of their goods. For example, a company with multiple foundry facilities in Wisconsin, Grede, makes metal castings for wind turbines. Export Changes: Wisconsin’s primary metal exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Primary Metal Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 331, Primary Metal Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 212,265,753 242,488,393 300,746,167 100.0% 100.0% 100.0% 24.0%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: Export of primary metals to the world from Wisconsin grew by 24%, 2010-2011. The leading importer, Canada, absorbs one-third exports and grew its imports by 44%, 2010-2011. Mexico once imported another third of the total export, but it decreased imports by 26.7%, 2010-2011, lowering its share to 16%. Germany, conversely, doubled imports, 2010-2011, and has increased them more than four times
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since 2009. Singapore has rapidly increased its imports, from $2 million in 2009 to more than $16 million in 2011. China slightly increased its imports (4.8%), 2010-2011. Gross Product: $1,389,622,000 – Rank 9th of 16 drivers Employment: 11,968 – Rank 10th of 16 33151 Ferrous Metal Foundries 33152 Nonferrous Metal Foundries
Top establishments:
Company Name Industry Description Employment
Size Region Brillion Iron Works Inc. Iron Foundries 1000+ East Central Grede Steel Foundries (except Investment) 1000+ South J L French Automotive Castings Nonferrous Metal Die-Casting Foundries 1000+ Southeast J L French Automotive Castings Nonferrous Metal Die-Casting Foundries 1000+ Southeast Meridian International Group Nonferrous Metal Die-Casting Foundries 1000+ Southeast Neenah Foundry Co. Steel Foundries (except Investment) 1000+ East Central Signicast Corp. Steel Foundries (except Investment) 1000+ Southeast Waupaca Foundry Iron Foundries 1000+ East Central Waupaca Foundry Inc. Iron Foundries 1000+ East Central Aarrowcast Inc. Steel Foundries (except Investment) 250 - 499 East Central Albany Chicago Co. Nonferrous Metal Die-Casting Foundries 250 - 499 Southeast Diversified Machine Milwaukee Iron Foundries 250 - 499 Southeast Eck Industries Inc. Steel Foundries (except Investment) 250 - 499 Southeast Grede Steel Foundries (except Investment) 250 - 499 Southeast Grede Steel Foundries (except Investment) 250 - 499 Southeast Kramer Foundry Inc. Iron Foundries 250 - 499 Southeast Madison-Kipp Corp. Nonferrous Metal Die-Casting Foundries 250 - 499 South Maynard Steel Casting Co. Steel Foundries (except Investment) 250 - 499 Southeast Navistar International Corp. Iron Foundries 250 - 499 Southeast
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Associated Industry Cluster—3315 Foundries
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
2211 Electric power generation, transmission, and distribution 2122 Iron ore mining
42 Wholesale trade 3323 Plate work and fabricated structural product manufacturing
55 Management of companies and enterprises 5614 Business support services
23 Maintenance and repair construction of nonresidential maintenance and repair
3313 Aluminum product manufacturing from purchased aluminum
52A Monetary authorities and depository credit intermediation 3273 Concrete pipe, brick, and block manufacturing
5617 Services to buildings and dwellings
484 Truck transportation
Consumer Industries for Typical Regional Industry
3336 Other engine equipment manufacturing
3363 Motor vehicle parts manufacturing
3331 Construction machinery manufacturing
3369 Motorcycle, bicycle, and parts manufacturing
3339 Pump and pumping equipment manufacturing
3331 Farm machinery and equipment manufacturing
3332 Other industrial machinery manufacturing
3329 Other fabricated metal manufacturing
3327 Machine shops
3329 Valve and fittings other than plumbing
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5.3.10 Fabricated Metal Product Manufacturing (Partial)—NAICS 332 Definition: Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture, or treat metals and formed metal products fabricated elsewhere. Important fabricated metal processes include forging, stamping, bending, forming, and machining, used to shape individual pieces of metal; other processes, such as welding and assembling, are used to join parts together. Establishments in this subsector may use one or a combination of these processes. The NAICS structure for this subsector categorizes the forging and stamping processes as a single industry. The remaining industries in the subsector group are establishments based on similar combinations of processes used to make products. The manufacturing performed in the Fabricated Metal Product Manufacturing subsector begins with manufactured metal shapes. The establishments in this subsector further fabricate the purchased metal shapes into a product. For instance, the Spring and Wire Product Manufacturing industry starts with wire and fabricates such items. Within manufacturing there are other establishments that make the same products made by this subsector, but those establishments begin production further back in the production process. These establishments have a more integrated operation. For instance, one establishment may manufacture steel, draw it into wire, and make wire products in the same establishment. Such operations are classified in the Primary Metal Manufacturing subsector. 3321 Forging and Stamping 3322 Cutlery and Handtool Manufacturing 3324 Boiler, Tank, and Shipping Container Manufacturing 3325 Hardware Manufacturing 3326 Spring and Wire Product Manufacturing 3327 Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing 3328 Coating, Engraving, Heat Treating, and Allied Activities 3329 Other Fabricated Metal Product Manufacturing
Challenges: The driver industries in this expansive manufacturing subsector make products for nearly every market imaginable. Fabricated Metal Product Manufacturing is the second largest grouping by both gross product and employment among driver industries. Journey through any part of Wisconsin, and it won’t be long before you pass a fabricated metal facility of some sort, many of which are small, specialty operations — 48% of Fabricated Metal Product establishments have fewer than 10 employees.19 Given the diversity of driver industries in this subsector, the challenges are common to manufacturing in general: sustained growth through innovation; addressing skills shortages, especially within machining operations; availability of funding for expansions and asset upgrades; and an ability to address global, national, and state regulations in a cost-effective manner. 19 County Business Patterns, 2010, U.S. Census Bureau.
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Export Changes: Wisconsin’s fabricated metal product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Fabricated Metal Product Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 332, Fabricated Metal Product Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 613,756,022 671,594,071 782,747,414 100.0% 100.0% 100.0% 16.6%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: Exports of fabricated metal products from Wisconsin grew 16.6%, 2010-2011. Canada absorbs about one-third of those exports, and Mexico another 20%. China imports about 10% of all exports from Wisconsin; the United Kingdom and Australia are two other top importers \. All countries importing this product grew by a double-digit percentage range, 2010-2011, with Australia leading at 44% growth. Gross Product: $5,727,798,000 – Rank 2nd of 16 drivers Employment: 58,672 – Rank 2nd of 16 drivers 5.3.10.1 NAICS 3321 Forging and Stamping Definition: This industry group comprises establishments primarily engaged in one or more of the following: (1) manufacturing forgings from purchased metals; (2) manufacturing metal custom roll-forming products; (3) manufacturing metal stamped and spun products (except automotive, cans, coins); and (4) manufacturing powder metallurgy products. Establishments making metal forgings, metal stampings, and metal spun products, and further manufacturing (e.g., machining, assembling) a specific manufactured product, are classified in the industry of the finished product. Metal forging, metal stamping, and metal spun products establishments may perform surface finishing operations, such as cleaning and deburring, on the products they manufacture.
• 33211 Forging and Stamping
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Top establishments:
Company Name Industry Description Employment
Size Region ATI Ladish Forging Iron and Steel Forging 1000+ Southeast W T Walker Group Iron and Steel Forging 1000+ Southeast Waukesha Metal Products
Metal Crown, Closure, and Other Metal Stamping (except Automotive) 1000+ Southeast
Dana Sealing Products Group
Metal Crown, Closure, and Other Metal Stamping (except Automotive) 250 - 499 Southeast
McMillan Electric Co. Metal Crown, Closure, and Other Metal
Stamping (except Automotive) 250 - 499 West Central I Milwaukee Forge Iron and Steel Forging 250 - 499 Southeast Walker Forge Inc. Iron and Steel Forging 250 - 499 Southeast
Brunk Industries Inc. Metal Crown, Closure, and Other Metal
Metal Crown, Closure, and Other Metal Stamping (except Automotive) 100 - 249 West Central I
Ultra Tool Metal Crown, Closure, and Other Metal
Stamping (except Automotive) 100 - 249 Southeast Unit Forgings Iron and Steel Forging 100 - 249 Southeast
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Top establishments (continued):
Company Name Industry Description Employment
Size Region Walker Forge Inc. Iron and Steel Forging 100 - 249 East Central
Wisco Industries Inc. Metal Crown, Closure, and Other Metal
Stamping (except Automotive) 100 - 249 South
Wisconsin Fineblanking Metal Crown, Closure, and Other Metal
Stamping (except Automotive) 100 - 249 South
Wrico Stamping Co. Metal Crown, Closure, and Other Metal
Stamping (except Automotive) 100 - 249 Southeast 5.3.10.2 NAICS 3322 Cutlery and Handtool Manufacturing Definition: This industry group comprises establishments primarily engaged in one or more of the following: (1) manufacturing nonprecious and precious plated metal cutlery and flatware; (2) manufacturing nonpowered hand and edge tools; (3) manufacturing nonpowered handsaws; (4) manufacturing saw blades, all types (including those for sawing machines); and (5) manufacturing metal kitchen utensils (except cutting-type) and pots and pans (except those manufactured by casting (e.g., cast iron skillets) or stamped without further fabrication). 33221 Cutlery and Handtool Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Snap-On Inc. Saw Blade and Handtool Manufacturing 1000+ Southeast Snap-On Tools Saw Blade and Handtool Manufacturing 250 - 499 Southeast
Fiskars Brands Inc. Metal Kitchen Cookware, Utensil,
Cutlery, and Flatware 100 - 249 South Johnson Level & Tool Manufacturing Co. Saw Blade and Handtool Manufacturing 100 - 249 Southeast Quest Technologies Inc. Saw Blade and Handtool Manufacturing 100 - 249 Southeast Carbide Specialists Inc. Saw Blade and Handtool Manufacturing 50 - 99 Southeast Foley United Saw Blade and Handtool Manufacturing 50 - 99 West Central I Master Appliance Corp. Saw Blade and Handtool Manufacturing 50 - 99 Southeast Retail Fixture LLC Saw Blade and Handtool Manufacturing 50 - 99 Southeast Utility Tool & Trailer Saw Blade and Handtool Manufacturing 50 - 99 East Central
5.3.10.3 NAICS 3324 Boiler, Tank, and Shipping Container Manufacturing Definition: Included in the Boiler, Tank, and Shipping Container Manufacturing industry group are the NAICS 33241 industry, which comprises establishments primarily engaged in manufacturing power boilers and heat exchangers. Establishments in this industry may perform installation in addition to manufacturing power
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boilers and heat exchangers. Also included is the NAICS 33242 industry, which comprises establishments primarily engaged in cutting, forming, and joining heavy-gauge metal to manufacture tanks, vessels, and other containers. 33241 Power Boiler and Heat Exchanger Manufacturing 33242 Metal Tank (Heavy Gauge) Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Modine Manufacturing Co.
Power Boiler and Heat Exchanger Manufacturing 1000+ Southeast
Stainless Tank & Equipment Metal Tank (Heavy Gauge) Manufacturing 1000+ South Walker Group Holdings LLC Metal Tank (Heavy Gauge) Manufacturing 1000+ South Chart Energy & Chemicals Inc. Metal Tank (Heavy Gauge) Manufacturing 250 - 499 West Central II Ball Metal Beverage Packaging Metal Can Manufacturing 100 - 249 Southeast Crown Cork & Seal Co. Inc. Metal Can Manufacturing 100 - 249 West Central II
IEA Inc. Power Boiler and Heat Exchanger
Manufacturing 100 - 249 Southeast Kitzinger Cooperage Corp. Other Metal Container Manufacturing 100 - 249 Southeast Silgan Containers Corp. Metal Can Manufacturing 100 - 249 Southeast Silgan Containers Corp. Metal Can Manufacturing 100 - 249 Southeast Thermal Transfer Products
Power Boiler and Heat Exchanger Manufacturing 100 - 249 Southeast
Tosca Limited Other Metal Container Manufacturing 100 - 249 East Central 5.3.10.4 NAICS 3325 Hardware Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing metal hardware, such as metal hinges, metal handles, keys, and locks (except coin-operated time locks). 33251 Hardware Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region Master Lock Co. LLC Hardware Manufacturing 1000+ Southeast Minco Group Hardware Manufacturing 1000+ Southeast Minco Ricehull Hardware Manufacturing 1000+ Southeast Gortite Hardware Manufacturing 250 - 499 Southeast Master Lock Co. LLC Hardware Manufacturing 250 - 499 Southeast Mercury Racing Hardware Manufacturing 100 - 249 Southeast STRATTEC Security Corp. Hardware Manufacturing 100 - 249 Southeast CannonBall:HNP Hardware Manufacturing 50 - 99 South Harken Yacht Fittings Hardware Manufacturing 50 - 99 Southeast Hoppe North America Inc. Hardware Manufacturing 50 - 99 Southeast Marine Associates Hardware Manufacturing 50 - 99 West Central I
5.3.10.5 NAICS 3326 Spring and Wire Product Manufacturing Definition: This industry group comprises establishments primarily engaged in (1) manufacturing steel springs by forming, such as cutting, bending, and heat winding, metal rod or strip stock; and/or (2) manufacturing wire springs and fabricated wire products from wire drawn elsewhere (except watch and clock springs). 33261 Spring and Wire Product Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region Hutchinson Technology Inc. Spring Manufacturing 1000+ West Central I Rexnord Engineered Chain
Other Fabricated Wire Product Manufacturing 250 - 499 Southeast
Badger Wire Inc. Other Fabricated Wire Product
Manufacturing 100 - 249 Southeast
Charter Wire Other Fabricated Wire Product
Manufacturing 100 - 249 Southeast
G3 Industries Inc. Other Fabricated Wire Product
Manufacturing 100 - 249 Central
Lucas-Milhaupt Inc. Other Fabricated Wire Product
Manufacturing 100 - 249 Southeast
Northern Wire LLC Other Fabricated Wire Product
Manufacturing 100 - 249 Central Oshkosh Coil Spring Inc. Spring Manufacturing 100 - 249 East Central Spiller Spring Co. Spring Manufacturing 100 - 249 Southeast Burgess-Norton Manufacturing Co.
Other Fabricated Wire Product Manufacturing 50 - 99 Southeast
Fortress Manufacturing Inc.
Other Fabricated Wire Product Manufacturing 50 - 99 Southeast
Luvada Other Fabricated Wire Product
Manufacturing 50 - 99 East Central Milwaukee Chaplet & Manufacturing Co. Inc.
Other Fabricated Wire Product Manufacturing 50 - 99 Southeast
Moerke Display & Manufacturing Co.
Other Fabricated Wire Product Manufacturing 50 - 99 Southeast
Nortech Systems Other Fabricated Wire Product
Manufacturing 50 - 99 West Central I Wisconsin Coil Spring Inc. Spring Manufacturing 50 - 99 Southeast
5.3.10.6 NAICS 3327 Machine Shops; Turned Product; and Screw, Nut, and Bolt
Manufacturing Definition: NAICS 33271 industry comprises establishments known as machine shops primarily engaged in machining metal and plastic parts and parts of other composite materials on a job or order basis. Generally machine shop jobs are low volume, using machine tools, such as lathes (including computer numerically controlled), automatic screw machines, and machines for boring, grinding, and milling. NAICS 33272 industry comprises establishments primarily engaged in (1) machining precision turned products; or (2) manufacturing metal bolts, nuts, screws, rivets, and other industrial fasteners. Included
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in this industry are establishments primarily engaged in manufacturing parts for machinery and equipment on a customized basis. 33271 Machine Shops 33272 Turned Product and Screw, Nut, and Bolt Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Belco Industries Inc. Famco Machine Shops 1000+ Southeast HyPro Inc. Machine Shops 1000+ Southeast GAMFG Precision LLC Machine Shops 250 - 499 Southeast AAA Sales & Engineering Inc. Machine Shops 100 - 249 Southeast Ace Precision Machining Machine Shops 100 - 249 Southeast American Metal Tech LLC Machine Shops 100 - 249 Southeast Brunner Drilling & Manufacturing Inc.
Bolt, Nut, Screw, Rivet, and Washer Manufacturing 100 - 249 South
E K Machine Co. Inc. Machine Shops 100 - 249 South Fox Valley Tool & Die Inc. Machine Shops 100 - 249 East Central Fox Valley Tool & Die Inc. Machine Shops 100 - 249 East Central Harken Manufacturing Machine Shops 100 - 249 Southeast HyPro Inc. Machine Shops 100 - 249 South Instrument Development Corp. Machine Shops 100 - 249 Southeast Iseli Co. Machine Shops 100 - 249 Southeast ITW Engineered Fasteners
Bolt, Nut, Screw, Rivet, and Washer Manufacturing 100 - 249 West Central I
K & S Tool Die & Manufacturing Inc. Machine Shops 100 - 249 Southeast Kingsbury Inc-Oshkosh Division Machine Shops 100 - 249 East Central Lakeside Manufacturing Inc. Machine Shops 100 - 249 Southeast Lindquist Machine Corp. Machine Shops 100 - 249 East Central Metalcut Products Inc. Machine Shops 100 - 249 Southeast
Micro Precision Inc. Precision Turned Product
Manufacturing 100 - 249 Southeast Mid Valley Industries LLC Machine Shops 100 - 249 East Central National Rivet & Manufacturing Co.
National Technologies Inc. Machine Shops 100 - 249 Southeast Norlen Inc. Machine Shops 100 - 249 Central
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Top establishments (continued):
Company Name Industry Description Employment
Size Region Northern Gear Machining Machine Shops 100 - 249 Southeast Patz Sales Inc. Machine Shops 100 - 249 East Central Petersen Machine Co. Machine Shops 100 - 249 Southeast Pioneer Products Inc. Machine Shops 100 - 249 Southeast Pointe Precision Inc. Machine Shops 100 - 249 Central Renco Machine Co. Inc. Machine Shops 100 - 249 East Central Specialized Products LTD Machine Shops 100 - 249 East Central Stecker Machine Co. Inc. Machine Shops 100 - 249 Southeast Sussek Machine Corp. Machine Shops 100 - 249 Southeast
Swiss-Tech LLC Precision Turned Product
Manufacturing 100 - 249 Southeast Urban Manufacturing Inc. Machine Shops 100 - 249 Southeast V & L Tool Inc. Machine Shops 100 - 249 Southeast World Class Manufacturing Group Inc. Machine Shops 100 - 249 East Central
5.3.10.7 NAICS 3328 Coating, Engraving, Heat Treating, and Allied Activities Definition: This industry comprises establishments primarily engaged in one or more of the following: (1) heat treating metals and metal products; (2) enameling, lacquering, and varnishing metals and metal products; (3) hot dip galvanizing metals and metal products; (4) engraving, chasing, or etching metals and metal products (except jewelry; personal goods carried on or about the person, such as compacts and cigarette cases; precious metal products (except precious plated flatware and other plated ware); and printing plates); (5) powder coating metals and metal products; (6) electroplating, plating, anodizing, coloring, and finishing metals and metal products; and (7) providing other metal surfacing services for the trade. Establishments in this industry coat, engrave, and heat-treat metals and metal formed products fabricated elsewhere. 33281 Coating, Engraving, Heat Treating, and Allied Activities
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Top establishments:
Company Name Industry Description Employment
Size Region Precision Thermal Processing Metal Heat Treating 1000+ East Central
Quest Specialty Coatings
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 1000+ Southeast
Linetec Inc.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 250 - 499 Central
SMC Metals Fabricators Inc.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 250 - 499 East Central
A & E Cleaning & Grinding
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 100 - 249 Southeast
Contemporary Inc.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 100 - 249 Southeast Fisher-Barton Group Metal Heat Treating 100 - 249 Southeast Fox Valley Heat Treat Metal Heat Treating 100 - 249 East Central Gordon Aluminum Industries Inc.
Electroplating, Plating, Polishing, Anodizing, and Coloring 100 - 249 Central
Hentzen Coatings Inc.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 100 - 249 Southeast Jagemann Plating Co. Inc.
Electroplating, Plating, Polishing, Anodizing, and Coloring 100 - 249 Southeast
OEC Graphics Inc.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 100 - 249 East Central
Professional Plating Inc. Electroplating, Plating, Polishing,
Anodizing, and Coloring 100 - 249 East Central
R & B Grinding Co. Inc.
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 100 - 249 Southeast Southwest Metal Finishing
Electroplating, Plating, Polishing, Anodizing, and Coloring 100 - 249 Southeast
Therm-Tech of Waukesha Inc. Metal Heat Treating 100 - 249 Southeast
Watry Industries LLC
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to
Manufacturers 100 - 249 Southeast
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5.3.10.8 NAICS 3329 Other Fabricated Metal Product Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing fabricated metal products (except forgings and stampings, cutlery and handtools, architectural and structural metals, boilers, tanks, shipping containers, hardware, spring and wire products, machine shop products, turned products, screws, and nuts and bolts). 33291 Metal Valve Manufacturing 33299 All Other Fabricated Metal Product Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Incova Technologies Inc. Industrial Valve Manufacturing 1000+ Southeast
Kallista Plumbing Fixture Fitting and Trim
Manufacturing 1000+ Southeast Mayville Engineering Co. Inc.
All Other Miscellaneous Fabricated Metal Product Manufacturing 1000+ Southeast
Monroe Truck Equipment Inc.
All Other Miscellaneous Fabricated Metal Product Manufacturing 1000+ South
Northern Engraving Corp. All Other Miscellaneous Fabricated
Metal Product Manufacturing 1000+ West Central II
Polaris Industries Inc. All Other Miscellaneous Fabricated
Metal Product Manufacturing 1000+ West Central I
STA-RITE Industries Inc. Other Metal Valve and Pipe Fitting
Manufacturing 1000+ Southeast Amron LLC Small Arms Ammunition Manufacturing 250 - 499 Central
Hammond Valve Other Metal Valve and Pipe Fitting
Manufacturing 250 - 499 South
Helgesen Industries Inc. All Other Miscellaneous Fabricated
Metal Product Manufacturing 250 - 499 Southeast
Henry Technologies All Other Miscellaneous Fabricated
Metal Product Manufacturing 250 - 499 South Kewaunee Fabrications LLC
All Other Miscellaneous Fabricated Metal Product Manufacturing 250 - 499 East Central
Steel Craft Corp. All Other Miscellaneous Fabricated
Metal Product Manufacturing 250 - 499 Southeast
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Associated Industry Cluster—332 Fabricated Metal Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 3313 Aluminum product manufacturing from purchased aluminum
55 Management of companies and enterprises 2122 Iron ore mining
3324 Metal can, box, and other metal container (light gauge) manufacturing
1119 All other crop farming
2211 Electric power generation, transmission, and distribution
3399 Office supplies (except paper) manufacturing
3312 Steel product manufacturing from purchased steel 3241 All other petroleum and coal products manufacturing
484 Truck transportation 3323 Plate work and fabricated structural product manufacturing
52A Monetary authorities and depository credit intermediation
Consumer Industries for Typical Regional Industry
3324 Metal can, box, and other metal container (light gauge) manufacturing
3121 Breweries
3114 Fruit and vegetable canning, pickling, and drying
23 Construction of other new nonresidential structures
3336 Other engine equipment manufacturing
23 Construction of new nonresidential commercial and health care structures
3363 Motor vehicle parts manufacturing
3331 Construction machinery manufacturing
3345 Irradiation apparatus manufacturing
3369 Motorcycle, bicycle, and parts manufacturing
3331 Farm machinery and equipment manufacturing
3329 Other fabricated metal manufacturing
3332 Other industrial machinery manufacturing
23 Construction of other new residential structures
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5.3.11 Machinery Manufacturing (Complete)—NAICS 333 Definition: Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal. Processes such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal-forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process. In general, design considerations are very important in machinery production. Establishments specialize in making machinery designed for particular applications. Thus, design is considered to be part of the production process for the purpose of categorization by NAICS. The NAICS structure reflects this by defining industries and industry groups that make machinery for different applications. A broad distinction exists between machinery that is generally used in a variety of industrial applications (i.e., general-purpose machinery) and machinery that is designed to be used in a particular industry (i.e., special-purpose machinery). Three industry groups consist of special-purpose machinery — Agricultural, Construction, and Mining Machinery Manufacturing; Industrial Machinery Manufacturing; and Commercial and Service Industry Machinery Manufacturing. The other industry groups make general-purpose machinery: Ventilation, Heating, Air Conditioning, and Commercial Refrigeration Equipment Manufacturing; Metalworking Machinery Manufacturing; Engine, Turbine, and Power Transmission Equipment Manufacturing; and Other General Purpose Machinery Manufacturing. 3331 Agriculture, Construction, and Mining Machinery Manufacturing 3332 Industrial Machinery Manufacturing 3333 Commercial and Service Industry Machinery Manufacturing 3334 Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment
Manufacturing 3335 Metalworking Machinery Manufacturing 3336 Engine, Turbine, and Power Transmission Equipment Manufacturing 3339 Other General Purpose Machinery Manufacturing
Challenges: This NAICS subsector is both large and diverse, containing the largest grouping of driver industries in the state by employment and gross product. The Machinery Manufacturing subsector across the U.S. is poised for growth, as post-recession capital-equipment investments are likely to rise, especially with assistance from the reenactment of bonus depreciation rules in 2013. Wisconsin can continue to assist this subsector in exporting goods — $6.69 billion in 201120 — as demand rises around the world, especially in developing economies with growing middle classes. Successful companies in this subsector, which make products ranging from lawnmowers to injection molding machines to ventilation equipment, will focus their organizations on broad-reaching manufacturing issues (innovation, addressing skills shortages, investing for growth, cost-effectively managing regulations, adding value-added services such as maintenance and line integrations for industrial consumers) as well as issues specific to their products (e.g., emissions standards for lawn mowers). Other challenges involve 20 Foreign Trade Division, U.S. Census Bureau.
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improving efficient transportation of these products to market, as high logistics costs can imperil competitiveness. Export Changes: Wisconsin’s machinery exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Machinery Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 333, Machinery Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 5,118,463,218 5,532,579,319 6,686,471,403 100.0% 100.0% 100.0% 20.9%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: U.S. exports from Wisconsin in machinery manufacturing grew over 20.9%, 2010-2011. Canada absorbs one quarter of all exports; Chile and Australia each increased their imports more than 40% in 2011. Mexico’s imports rose by 12.5%, and China was almost at the same level as in 2010. Gross Product: $7,230,157,000 – Rank 1st of 16 drivers Employment: 59,999 – Rank 1st of 16 5.3.11.1 NAICS 3331 Agriculture, Construction, and Mining Machinery Manufacturing Definition: NAICS 33311 industry comprises establishments primarily engaged in manufacturing farm machinery and equipment, powered mowing equipment, and other powered home lawn and garden equipment. NAICS 33312 industry comprises establishments primarily engaged in manufacturing construction machinery, surface mining machinery, and logging equipment. NAICS 33313 industry comprises establishments primarily engaged in manufacturing oil and gas field and underground mining machinery and equipment. 33311 Agricultural Implement Manufacturing 33312 Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing 33313 Mining and Oil and Gas Field Machinery Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region
Ariens Co.
Lawn and Garden Tractor and Home Lawn and Garden Equipment
Manufacturing 1000+ East Central
Briggs & Stratton Power Products
Lawn and Garden Tractor and Home Lawn and Garden Equipment
Manufacturing 1000+ Southeast Bucyrus International Inc.
Mining Machinery and Equipment Manufacturing 1000+ Southeast
Edison Control Corp. Construction Machinery
Manufacturing 1000+ Southeast
John Deere Horicon Works
Lawn and Garden Tractor and Home Lawn and Garden Equipment
Manufacturing 1000+ Southeast
MMH Holdings Inc. Construction Machinery
Manufacturing 1000+ Southeast
Parker Co.
Lawn and Garden Tractor and Home Lawn and Garden Equipment
Manufacturing 1000+ East Central
Wacker Neuson Corp. Construction Machinery
Manufacturing 1000+ Southeast
Douglas Dynamics Inc. Construction Machinery
Manufacturing 250 - 499 Southeast
Schiller Grounds Care Inc.
Lawn and Garden Tractor and Home Lawn and Garden Equipment
Manufacturing 250 - 499 Southeast
5.3.11.2 NAICS 3332 Industrial Machinery Manufacturing Definition: NAICS 33321 industry comprises establishments primarily engaged in manufacturing sawmill and woodworking machinery (except handheld), such as circular and band-sawing equipment, planing machinery, and sanding machinery. NAICS 33322 industry comprises establishments primarily engaged in manufacturing plastics- and rubber-products-making machinery, such as plastics compression, extrusion and injection molding machinery and equipment, and tire building and recapping machinery and equipment. NAICS 33329 industry comprises establishments primarily engaged in manufacturing industrial machinery (except agricultural and farm-type, construction, mining, sawmill and woodworking, and plastics and rubber-products-making machinery). 33321 Sawmill and Woodworking Machinery Manufacturing 33322 Plastics and Rubber Industry Machinery Manufacturing 33329 Other Industrial Machinery Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region C G Bretting Manufacturing Co. Inc.
Sawmill, Woodworking, and Paper Machinery Manufacturing 250 - 499 North
Hatco Corp. Food Product Machinery Manufacturing 250 - 499 East Central
Metso Paper USA Inc. Sawmill, Woodworking, and Paper
Machinery Manufacturing 250 - 499 East Central Milsco Manufacturing Co.
Sawmill, Woodworking, and Paper Machinery Manufacturing 250 - 499 Southeast
Fosber America Inc. Sawmill, Woodworking, and Paper
Machinery Manufacturing 100 - 249 East Central GEA Food Product Machinery Manufacturing 100 - 249 West Central I
Metso Paper USA Inc. Sawmill, Woodworking, and Paper
Machinery Manufacturing 100 - 249 East Central Stoelting Food Product Machinery Manufacturing 100 - 249 Southeast Weiler & Co. Inc. Food Product Machinery Manufacturing 100 - 249 Southeast Westphalia Surge Food Product Machinery Manufacturing 100 - 249 West Central II
5.3.11.3 NAICS 3333 Commercial and Service Industry Machinery Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing commercial and service machinery, such as automatic vending machinery, commercial laundry and dry-cleaning machinery, office machinery, photographic and photocopying machinery, optical instruments and machinery, automotive maintenance equipment (except mechanics’ handtools), industrial vacuum cleaners, and commercial-type cooking equipment. 33331 Commercial and Service Industry Machinery Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region
ALH Holding Inc. Other Commercial and Service Industry
Other Commercial and Service Industry Machinery Manufacturing 1000+ Southeast
Alliance Laundry Systems LLC
Other Commercial and Service Industry Machinery Manufacturing 1000+ Southeast
Bastian Micra Document-Carrier
Other Commercial and Service Industry Machinery Manufacturing 1000+ Southeast
Pentair Water Group Inc.
Other Commercial and Service Industry Machinery Manufacturing 1000+ Southeast
Vollrath Co. LLC Other Commercial and Service Industry
Machinery Manufacturing 1000+ Southeast
ABB Inc. Other Commercial and Service Industry
Machinery Manufacturing 250 - 499 Southeast
Curt G Joa Inc. Other Commercial and Service Industry
Machinery Manufacturing 250 - 499 Southeast
E O Johnson Co. Other Commercial and Service Industry
Machinery Manufacturing 100 - 249 Central Paper Converting Machine Co.
Other Commercial and Service Industry Machinery Manufacturing 100 - 249 East Central
Paper Machinery Corp. Other Commercial and Service Industry
Machinery Manufacturing 100 - 249 Southeast
PDQ Manufacturing Inc. Other Commercial and Service Industry
Machinery Manufacturing 100 - 249 East Central
Talaris Inc. Other Commercial and Service Industry
Machinery Manufacturing 100 - 249 Southeast
TTX Environmental Other Commercial and Service Industry
Machinery Manufacturing 100 - 249 East Central
Webex Inc. Other Commercial and Service Industry
Machinery Manufacturing 100 - 249 East Central 5.3.11.4 NAICS 3334 Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration
Equipment Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing ventilating, heating, air-conditioning, and commercial and industrial refrigeration and freezer equipment. 33341 Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment
Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region
Broan-NuTone LLC
Air-Conditioning and Warm Air Heating Equipment and Commercial and
5.3.11.5 NAICS 3335 Metalworking Machinery Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing metalworking machinery, such as metal cutting and metal forming machine tools; cutting tools; and accessories for metalworking machinery; special dies, tools, jigs, and fixtures; industrial molds; rolling mill machinery; assembly machinery; coil handling, conversion, or straightening equipment; and wire drawing and fabricating machines. 33351 Metalworking Machinery Manufacturing
5.3.11.6 NAICS 3336 Engine, Turbine, and Power Transmission Equipment Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing turbines, power transmission equipment, and internal combustion engines (except automotive gasoline and aircraft). 33361 Engine, Turbine, and Power Transmission Equipment Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region
Power-Packer Turbine and Turbine Generator Set Units
Manufacturing 1000+ Southeast
RBS Global Inc. Mechanical Power Transmission
Equipment Manufacturing 1000+ Southeast
Rexnord Corp Mechanical Power Transmission
Equipment Manufacturing 1000+ Southeast
Rexnord Industries LLC Mechanical Power Transmission
Poclain Hydraulics Turbine and Turbine Generator Set Units
Manufacturing 100 - 249 Southeast Ram-Pac International Inc.
Turbine and Turbine Generator Set Units Manufacturing 100 - 249 Southeast
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5.3.11.7 NAICS 3339 Other General Purpose Machinery Manufacturing Definition: NAICS 33391 industry comprises establishments primarily engaged in manufacturing pumps and compressors, such as general purpose air and gas compressors, nonagricultural spraying and dusting equipment, general purpose pumps and pumping equipment (except fluid power pumps and motors), and measuring and dispensing pumps. NAICS 33392 industry comprises establishments primarily engaged in manufacturing material handling equipment, such as elevators and moving stairs; conveyors and conveying equipment; overhead traveling cranes, hoists, and monorail systems; and industrial trucks, tractors, trailers, and stacker machinery. NAICS 33399 industry comprises establishments primarily engaged in manufacturing general purpose machinery (except ventilation, heating, air-conditioning, and commercial refrigeration equipment; metal working machinery; engines, turbines, and power transmission equipment; pumps and compressors; and material handling equipment). 33391 Pump and Compressor Manufacturing 33392 Material Handling Equipment Manufacturing 33399 All Other General Purpose Machinery Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Gardner Denver Thomas Products
Pump and Pumping Equipment Manufacturing 1000+ Southeast
Krones Inc. Packaging Machinery Manufacturing 1000+ Southeast Milwaukee Electric Tool Corp. Power-Driven Handtool Manufacturing 1000+ Southeast Production Service Co. Inc.
All Other Miscellaneous General Purpose Machinery Manufacturing 1000+ Southeast
Rockwell Automation Inc.
All Other Miscellaneous General Purpose Machinery Manufacturing 1000+ Southeast
Therma-Tron-X Inc. Industrial Process Furnace and Oven
Manufacturing 1000+ East Central
Weldcraft Welding and Soldering Equipment
Manufacturing 1000+ East Central Yaskawa America Inc. Drives
All Other Miscellaneous General Purpose Machinery Manufacturing 1000+ Southeast
Bosch Packaging Technology Packaging Machinery Manufacturing 250 - 499 West Central I Bruno Independent Living Aids
Elevator and Moving Stairway Manufacturing 250 - 499 Southeast
Dematic Corp. All Other Miscellaneous General Purpose
Machinery Manufacturing 250 - 499 Southeast
Edstrom Industries Inc. All Other Miscellaneous General Purpose
Machinery Manufacturing 250 - 499 Southeast
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Top establishments:
Company Name Industry Description Employment
Size Region KHS USA Inc. Packaging Machinery Manufacturing 250 - 499 Southeast
MAG IAS LLC All Other Miscellaneous General Purpose
Machinery Manufacturing 250 - 499 Southeast Miller Electric Manufacturing Co.
Welding and Soldering Equipment Manufacturing 250 - 499 East Central
Rice Lake Weighing Systems Scale and Balance Manufacturing 250 - 499 West Central I
Associated Industry Cluster—333 Machinery Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 2122 Iron ore mining
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
3336 Other engine equipment manufacturing 3313 Aluminum product manufacturing from purchased aluminum
3315 Ferrous metal foundries 3326 Spring and wire product manufacturing
484 Truck transportation 3345 Watch, clock, and other measuring and controlling device manufacturing
3345 Totalizing fluid meters and counting devices manufacturing
3241 All other petroleum and coal products manufacturing
Consumer Industries for Typical Regional Industry
3361 Heavy duty truck manufacturing
3336 Other engine equipment manufacturing
3331 Construction machinery manufacturing
3331 Farm machinery and equipment manufacturing
3331 Lawn and garden equipment manufacturing
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new nonresidential structures
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5.3.12 Electrical Equipment, Appliance, and Component Manufacturing—NAICS 335 Definition: Industries in the Electrical Equipment, Appliance, and Component Manufacturing subsector manufacture products that generate, distribute and use electrical power. Electric Lighting Equipment Manufacturing establishments produce electric lamp bulbs, lighting fixtures, and parts. Household Appliance Manufacturing establishments make both small and major electrical appliances and parts. Electrical Equipment Manufacturing establishments make goods such as electric motors, generators, transformers, and switchgear apparatus. Other Electrical Equipment and Component Manufacturing establishments make devices for storing electrical power (e.g., batteries), for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches). 3352 Household Appliance Manufacturing 3353 Electrical Equipment Manufacturing
Challenges: Wisconsin companies in the Electrical Equipment, Appliance, and Component Manufacturing subsector represent dynamic and growing driver industries, but they also face increasing government regulations. One new challenge for Wisconsin companies in this subsector as well as others will be compliance with the SEC conflict mineral ruling, enacted in August 2012 to implement Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires companies to implement new procedures and provide disclosures regarding whether conflict minerals used in the functionality or manufacturing of their products originated in the Democratic Republic of Congo or neighboring countries. Subsector exports, which increased by 15.1% in 2010-2011,21 are also increasingly subject to location-specific environmental regulations. Many manufacturers in the subsector have sought to voluntarily reduce use of hazardous substances, such as lead, mercury, and cadmium. For example, Sub-Zero implemented Restriction of Hazardous Substances (RoHS) compliance for all products sold internationally. Such efforts by manufacturers are necessary if they want to sell into the European Union, and are increasingly important as RoHS standards are adopted in other regions of the world, such as China. Other environmental factors also pose challenges for the industry group, including safe disposal of products, recycling components, and carbon footprint assessments.
21 Foreign Trade Division, U.S. Census Bureau.
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Export Changes: Wisconsin’s electrical product exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Electrical Equipment, Appliance, and Component Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 335, Electrical Equipment, Appliance, and Component Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 1,025,005,986 1,127,661,183 1,297,998,527 100.0% 100.0% 100.0% 15.1%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: U.S. Exports in the Electrical Equipment, Appliance, and Component Manufacturing subsector to the world from Wisconsin grew by 15.1%, 2010-2011. Canada, which absorbs about a third of Wisconsin exports, increased imports 31.8%, 2010-2011, and by more than 50% since 2009. Exports to Mexico, China, and Australia have increased, while those to the United Kingdom have declined. Gross Product: $3,230,602,000 – Rank 4th of 16 drivers Employment: 16,487 – Rank 6th of 16 5.3.12.1 NAICS 3352 Household Appliance Manufacturing Definition: NAICS 33521 industry comprises establishments primarily engaged in manufacturing small electric appliances and electric housewares, household-type fans, household-type vacuum cleaners, and other electric household-type floor care machines. NAICS 33522 industry comprises establishments primarily engaged in manufacturing household-type cooking appliances, household-type laundry equipment, household-type refrigerators, upright and chest freezers, and other electrical and nonelectrical major household-type appliances, such as dishwashers, water heaters, and garbage disposal units. 33521 Small Electrical Appliance Manufacturing 33522 Major Appliance Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region
Regal Ware Inc. Household Cooking Appliance
Manufacturing 1000+ Southeast
Sub-Zero Inc. Household Refrigerator and Home
Freezer Manufacturing 1000+ South
U-Line Corp. Household Refrigerator and Home
Freezer Manufacturing 250 - 499 Southeast National Presto Industries Inc.
Other Major Household Appliance Manufacturing 100 - 249 West Central I
Nesco/American Harvest Small Electrical Appliance Manufacturing 100 - 249 Southeast
Zero Zone Inc. Household Refrigerator and Home
Freezer Manufacturing 100 - 249 Southeast Metal Ware Corp. Small Electrical Appliance Manufacturing 50 - 99 Southeast Aristo Manufacturing Small Electrical Appliance Manufacturing 20 - 49 Southeast
Big Pulley Household Cooking Appliance
Manufacturing 20 - 49 East Central
Bock Water Heaters Inc. Other Major Household Appliance
Manufacturing 20 - 49 South
Flip Flop Grill Co. Household Cooking Appliance
Manufacturing 20 - 49 West Central I Tartan Supply Co. Inc. Small Electrical Appliance Manufacturing 20 - 49 Southeast
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Associated Industry Cluster— 3352 Household Appliance Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 2122 Iron ore mining
55 Management of companies and enterprises 3254 Medicinal and botanical manufacturing
3261 Plastics packaging materials and unlaminated film and sheet manufacturing
5191 Internet publishing and broadcasting
3261 Other plastics product manufacturing 3313 Aluminum product manufacturing from purchased aluminum
3222 Paperboard container manufacturing 8111 Car washes
3353 Motor and generator manufacturing 3339 Air and gas compressor manufacturing
484 Truck transportation 3323 Plate work and fabricated structural product manufacturing
3321 Crown and closure manufacturing and metal stamping 3253 Pesticide and other agricultural chemical manufacturing
3353 Relay and industrial control manufacturing 3311 Iron and steel mills and ferroalloy manufacturing
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
2131 Support activities for oil and gas operations
3261 Laminated plastics plate, sheet (except packaging), and shape manufacturing
3324 Power boiler and heat exchanger manufacturing
Consumer Industries for Typical Regional Industry
23 Construction of other new residential structures
8121 Personal care services
23 Construction of other new nonresidential structures
8114 Personal and household goods repair and maintenance
23 Construction of new nonresidential commercial and health care structures
23 Construction of new residential permanent site single- and multi-family structures
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
8123 Dry-cleaning and laundry services
3261 Other plastics product manufacturing
5.3.12.2 NAICS 3353 Electrical Equipment Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing power, distribution, and specialty transformers; electric motors, generators, and motor generator sets; switchgear and switchboard apparatus; relays; and industrial controls. 33531 Electrical Equipment Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region Electronic Theatre Controls
Relay and Industrial Control Manufacturing 1000+ South
Generac Holdings Inc. Motor and Generator Manufacturing 1000+ Southeast Generac Power Systems Inc. Motor and Generator Manufacturing 1000+ Southeast Kohler Co. Motor and Generator Manufacturing 1000+ Southeast Marathon Electric Motors Motor and Generator Manufacturing 1000+ Central
Rockwell Automation Relay and Industrial Control
Manufacturing 1000+ South
Twin Disc Inc. Power, Distribution, and Specialty
Transformer Manufacturing 1000+ Southeast Waukesha Electric Systems Inc.
Power, Distribution, and Specialty Transformer Manufacturing 1000+ Southeast
Generac Power Systems Inc. Motor and Generator Manufacturing 250 - 499 Southeast
Weasler Engineering Inc. Power, Distribution, and Specialty
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 2122 Iron ore mining
3353 Relay and industrial control manufacturing 3334 Heating equipment (except warm air furnaces) manufacturing
55 Management of companies and enterprises 3112 Soybean and other oilseed processing
3353 Switchgear and switchboard apparatus manufacturing 3323 Plate work and fabricated structural product manufacturing
484 Truck transportation 3313 Aluminum product manufacturing from purchased aluminum
1113 Fruit farming
Consumer Industries for Typical Regional Industry
3353 Relay and industrial control manufacturing
3353 Switchgear and switchboard apparatus manufacturing
3336 Other engine equipment manufacturing
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
3331 Construction machinery manufacturing
3339 Pump and pumping equipment manufacturing
3332 Other industrial machinery manufacturing
3261 Other plastics product manufacturing
3339 Material handling equipment manufacturing
3353 Motor and generator manufacturing
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5.3.13 Transportation Equipment Manufacturing—NAICS 336 Definition: Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting people and goods. Transportation equipment is a type of machinery. An entire subsector is devoted to this activity because of the significance of its economic size in all three North American countries. Establishments in this subsector utilize production processes similar to those of other machinery manufacturing establishments — bending, forming, welding, machining, and assembling metal or plastic parts into components and finished products. However, the assembly of components and subassemblies and their further assembly into finished vehicles tends to be a more common production process in this subsector than in the Machinery Manufacturing subsector. NAICS has industry groups for the manufacture of equipment for each mode of transport — road, rail, air, and water. Parts for motor vehicles warrant a separate industry group because of their importance and because parts manufacture requires less assembly, and the establishments that manufacture only parts are not as vertically integrated as those that make complete vehicles. Land use motor vehicle equipment not designed for highway operation (e.g., agricultural equipment, construction equipment, and materials handling equipment) is classified in the appropriate NAICS subsector based on the type and use of the equipment. 3362 Motor Vehicle Body and Trailer Manufacturing 3369 Other Transportation Equipment Manufacturing
Challenges: The Transportation Equipment Manufacturing subsector in Wisconsin is home to one of the most visible icons on wheels, Harley-Davidson, which is not just a producer of motorcycles but also a producer of lifestyles. Over the decades Harley-Davidson has reinvented itself, focusing on characteristics its loyal customer community loves: big bikes and big sounds. Unfortunately, segments of the industry continue to grapple with the challenges. This is evidenced in a 16.2% drop in 2010-2011 in exports from the Transportation Equipment Manufacturing subsector.22 This statistic is especially pronounced when compared to the eight competing states, of which only one other had an export decrease. In addition, Wisconsin’s U.S. export share fell from 0.9% to 0.7% in 2009-2011; by comparison, Michigan grew its share from 8.5% to 11.5%.23 Given the impact this high-wage subsector has on the Wisconsin economy, strategies for developing the industry will have a major impact on the state’s economic fortunes.
22 Foreign Trade Division, U.S. Census Bureau. 23 Foreign Trade Division, U.S. Census Bureau.
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Export Changes: Wisconsin’s transportation equipment exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Transportation Equipment Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 336, Transportation Equipment Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 1,546,136,613 1,840,200,421 1,542,113,253 100.0% 100.0% 100.0% -16.2%
Source: Foreign Trade Division, U.S. Census Bureau. Observations: Canada and Mexico import the most transportation equipment from Wisconsin, with more than 50% of all exports going to the two countries. Exports to these countries declined precipitously in 2011, vs. 2010. Exports to Europe, however, have grown; Germany increased imports by almost 50%, 2010-2011, while the United Kingdom experienced growth of about 70% in 2010 vs. 2009. Gross Product: $1,075,268,000 – Rank 10th of 16 drivers Employment: 7,186 – Rank 13th of 16 5.3.13.1 NAICS 3362 Motor Vehicle Body and Trailer Manufacturing Definition: This industry group comprises establishments primarily engaged in (1) manufacturing motor vehicle bodies and cabs or (2) manufacturing truck, automobile, and utility trailers, truck trailer chassis, detachable trailer bodies, and detachable trailer chassis. The products made may be sold separately or may be assembled on purchased chassis and sold as complete vehicles. Motor homes are units where the motor and the living quarters are contained in the same integrated unit, while travel trailers are designed to be towed by a motor unit, such as an automobile or a light truck. 33621 Motor Vehicle Body and Trailer Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region LDV Inc. Motor Vehicle Body Manufacturing 100 - 249 Southeast Morgan Corp. Motor Vehicle Body Manufacturing 100 - 249 South
C Tech Travel Trailer and Camper
Manufacturing 20 - 49 Central Caspers' Truck Equipment Motor Vehicle Body Manufacturing 20 - 49 East Central
Hawk Trailers Travel Trailer and Camper
Manufacturing 20 - 49 East Central Lakeland Sports Center Inc.
Travel Trailer and Camper Manufacturing 20 - 49 Southeast
Associated Industry Cluster—3362 Motor Vehicle Body and Trailer Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
55 Management of companies and enterprises 3345 Totalizing fluid meters and counting devices manufacturing
3361 Heavy duty truck manufacturing 3261 Urethane and other foam product (except polystyrene) manufacturing
42 Wholesale trade 2122 Iron ore mining
3362 Motor vehicle body manufacturing 3323 Plate work and fabricated structural product manufacturing
3363 Motor vehicle parts manufacturing 3141 Carpet and rug mills
3313 Aluminum product manufacturing from purchased aluminum
Consumer Industries for Typical Regional Industry
3362 Motor vehicle body manufacturing
3331 Construction machinery manufacturing
3361 Heavy duty truck manufacturing
3363 Motor vehicle parts manufacturing
8111 Automotive repair and maintenance, except car washes
5.3.13.2 NAICS 3369 Other Transportation Equipment Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing transportation equipment (except motor vehicles and parts, aerospace products and parts, railroad rolling stock, ship building, and boat manufacturing). 33699 Other Transportation Equipment Manufacturing
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Top establishments:
Company Name Industry Description Employment
Size Region
Harley-Davidson Inc. Motorcycle, Bicycle, and Parts
Manufacturing 1000+ Southeast
Trek Bicycle Corp. Motorcycle, Bicycle, and Parts
Manufacturing 1000+ Southeast
S & S Cycle Motorcycle, Bicycle, and Parts
Manufacturing 250 - 499 South Walker Stainless Equipment Co.
Military Armored Vehicle, Tank, and Tank Component Manufacturing 250 - 499 South
Apache Stainless Equipment
Military Armored Vehicle, Tank, and Tank Component Manufacturing 100 - 249 Southeast
Kuryakyn USA Motorcycle, Bicycle, and Parts
Manufacturing 100 - 249 West Central I
USEMCO Inc. Military Armored Vehicle, Tank, and
Tank Component Manufacturing 100 - 249 West Central II
Triton Corp. All Other Transportation Equipment
Manufacturing 50 - 99 Southeast
Big Bike Parts Motorcycle, Bicycle, and Parts
Manufacturing 20 - 49 West Central I
Pacific Cycle Inc. Motorcycle, Bicycle, and Parts
Manufacturing 20 - 49 South Associated Industry Cluster—3369 Electrical Equipment Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3369 Motorcycle, bicycle, and parts manufacturing 2122 Iron ore mining
42 Wholesale trade 442 Retail – Furniture and home furnishings
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
533 Lessors of nonfinancial intangible assets 1119 Sugarcane and sugar beet farming
5112 Software publishers 3369 Military armored vehicle, tank, and tank component manufacturing
3313 Aluminum product manufacturing from purchased aluminum
3369 3241 All other petroleum and coal products manufacturing
Consumer Industries for Typical Regional Industry 3118 Bread and bakery product manufacturing
3369 Motorcycle, bicycle, and parts manufacturing 3399 Office supplies (except paper) manufacturing
8114 Personal and household goods repair and maintenance
3369 All other transportation equipment manufacturing
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5.3.14 Furniture and Related Product Manufacturing (Complete)—NAICS 337 Definition: Industries in the Furniture and Related Product Manufacturing subsector make furniture and related articles, such as mattresses, window blinds, cabinets, and fixtures. The processes used in the manufacture of furniture include the cutting, bending, molding, laminating, and assembly of such materials as wood, metal, glass, plastics, and rattan. However, the production process for furniture is not solely bending metal, cutting and shaping wood, or extruding and molding plastics. Design and fashion trends play an important part in the production of furniture. The integrated design of the article for both aesthetic and functional qualities is also a major part of the process of manufacturing furniture. Design services may be performed by the furniture establishment’s work force or may be purchased from industrial designers. Furniture may be made of any material, but the most common ones used in North America are metal and wood. Furniture manufacturing establishments may specialize in making articles primarily from one material. Some of the equipment required to make a wooden table, for example, is different from that used to make a metal one. However, furniture is usually made from several materials. A wooden table might have metal brackets, and a wooden chair a fabric or plastics seat. Therefore, in NAICS, furniture initially is classified based on the type of furniture (application for which it is designed) rather than the material used. For example, an upholstered sofa is treated as household furniture, although it may also be used in hotels or offices. When classifying furniture according to the component material from which it is made, furniture made from more than one material is classified based on the material used in the frame, or if there is no frame, the predominant component material. Upholstered household furniture (excluding kitchen and dining room chairs with upholstered seats) is classified without regard to the frame material. Kitchen or dining room chairs with upholstered seats are classified according to the frame material. Furniture may be made on a stock or custom basis and may be shipped assembled or unassembled (i.e., knockdown). The manufacture of furniture parts and frames is included in this subsector. Some of the processes used in furniture manufacturing are similar to processes that are used in other segments of manufacturing. For example, cutting and assembly occurs in the production of wood trusses that are classified in Subsector 321, Wood Product Manufacturing. However, the multiple processes that distinguish wood furniture manufacturing from wood product manufacturing warrant inclusion of wooden furniture manufacturing in the Furniture and Related Product Manufacturing subsector. Metal furniture manufacturing uses techniques that are also employed in the manufacturing of roll-formed products classified in Subsector 332, Fabricated Metal Product Manufacturing. The molding process for plastics furniture is similar to the molding of other plastics products. However, plastics-furniture-producing establishments tend to specialize in furniture. NAICS attempts to keep furniture manufacturing together, but there are two notable exceptions: seating for transportation equipment and specialized hospital furniture (e.g., hospital beds and operating tables). These exceptions are related to the fact that some of the aspects of the production process for these products, primarily the design, are highly integrated with the other manufactured goods, namely motor vehicles and health equipment. 3371 Household and Institutional Furniture and Kitchen Cabinet Manufacturing
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3372 Office Furniture (including Fixtures) Manufacturing 3379 Other Furniture Related Product Manufacturing
Challenges: The Furniture and Related Product Manufacturing subsector in Wisconsin and across the country is greatly affected by the general economy and, more specifically, by the housing market. In the U.S., consumer spending on furniture and bedding is projected to increase 4.3% in 2013 to $87.8 billion, after growing 5.1% in 2012; this would be the fourth straight year of growth but still not back to 2006 and 2007 levels.24 On the contrary, Wisconsin manufacturers in the driver industries that make up this subsector have experienced output declines in 2008 through 2011 — the office furniture and fixtures driver industry decreased 23.8%.25 Exports from the subsector, though, rose by 29.5% in 2009-2011 — although the majority of product moves across the northern border into Canada26 and, based on 3-digit NAICS subsector, is the third smallest driver grouping for exports. Wisconsin’s Furniture and Related Product Manufacturing export share ranks 11th nationally among states.27 In addition to being linked to the economy, like other manufacturers that produce large goods, business success for Wisconsin furniture makers can be derailed by inefficient transportation or increases in transportation costs (fuel, tolls, etc.). Lastly, due to the nature of operations and the use of solvents, adhesives, paints, varnishes, etc., hazardous material management and compliance with environmental regulations are ongoing concerns for these enterprises; access to and cooperation with Wisconsin natural-resource officials can help the subsector in the state to address environmental requirements. Export Changes: Wisconsin’s furniture exports showed these changes from 2009 to 2011 at the 3-digit NAICS level, Furniture and Related Product Manufacturing:
United States Exports (Origin of Movement – Total) via Wisconsin NAICS Code: 337, Furniture and Related Product Manufacturing
YTD Comparison: January – December U.S. Dollar (adjusted to 2011) % Share %
Change Rank Country 2009 2010 2011 2009 2010 2011 2011/
2010 World 132,497,020 155,626,627 171,554,654 100.0% 100.0% 100.0% 10.2%
Source: Foreign Trade Division, U.S. Census Bureau.
24 Dana French, “Furniture Today’s Economic Forecast for 2013,” Furniture Industry Today, Jan. 14, 2013. 25 Moody’s Economy.com. 26 Foreign Trade Division, U.S. Census Bureau. 27 Foreign Trade Division, U.S. Census Bureau.
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Observations: About 60% of all U.S. exports from Wisconsin in Furniture and Related Product Manufacturing go to Canada. Exports to this country grew by 8.7%, 2010-2011, and by more than 35% since 2009. Other countries that significantly increased their imports are Saudi Arabia and Venezuela. Exports to Mexico and the United Kingdom have declined. Gross Product: $1,070,853,000 – Rank 11th of 16 drivers Employment: 15,081 – Rank 8th of 16 5.3.14.1 NAICS 3371 Household and Institutional Furniture and Kitchen Cabinet
Manufacturing Definition: This industry group comprises establishments manufacturing household-type furniture, such as living room, kitchen, and bedroom furniture and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches. 33711 Wood Kitchen Cabinet and Countertop Manufacturing 33712 Household and Institutional Furniture Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Ashley Furniture Industries Institutional Furniture Manufacturing 1000+ West Central II Ki Inc. Institutional Furniture Manufacturing 1000+ East Central Manitowoc Foodservice Institutional Furniture Manufacturing 1000+ Southeast Original Equipment Industries Institutional Furniture Manufacturing 1000+ East Central Richardson Bros. Co. Division
Andis Co. Institutional Furniture Manufacturing 250 - 499 Southeast Joerns Healthcare Institutional Furniture Manufacturing 250 - 499 Central Simmons Juvenile Furniture Institutional Furniture Manufacturing 250 - 499 East Central
Walzcraft Industries Wood Kitchen Cabinet and Countertop
Manufacturing 250 - 499 West Central II Ashley Furniture Industries Institutional Furniture Manufacturing 100 - 249 West Central II Basic American Metal Products Institutional Furniture Manufacturing 100 - 249 Southeast
Handishop Industries Inc. Nonupholstered Wood Household
Furniture Manufacturing 100 - 249 West Central II
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Top establishments (continued):
Company Name Industry Description Employment
Size Region
Hillcraft Limited Wood Kitchen Cabinet and Countertop
Manufacturing 100 - 249 South Mayline Group Institutional Furniture Manufacturing 100 - 249 Southeast Palmer Hamilton LLC Institutional Furniture Manufacturing 100 - 249 Southeast Richardson Industries Inc. Institutional Furniture Manufacturing 100 - 249 Southeast Techline USA LLC Institutional Furniture Manufacturing 100 - 249 South
Valley Cabinet Wood Kitchen Cabinet and Countertop
Manufacturing 100 - 249 East Central Wood Goods Industries Institutional Furniture Manufacturing 100 - 249 West Central I
5.3.14.2 NAICS 3372 Office Furniture (including Fixtures) Manufacturing Definition: This industry group comprises establishments primarily engaged in manufacturing office furniture and/or office and store fixtures. The furniture may be made on a stock or custom basis and may be assembled or unassembled (i.e., knockdown). 33721 Office Furniture (including Fixtures) Manufacturing
Spacesaver Corp. Showcase, Partition, Shelving, and Locker
Manufacturing 250 - 499 Southeast Bishop Fixture & Millwork Inc.
Custom Architectural Woodwork and Millwork Manufacturing 100 - 249 West Central I
Conwed Designscape Custom Architectural Woodwork and
Millwork Manufacturing 100 - 249 North
Ki Inc. Office Furniture (except Wood)
Manufacturing 100 - 249 East Central
Phoenix Fixtures Showcase, Partition, Shelving, and Locker
Manufacturing 100 - 249 West Central I Spectrum Industries Inc. Wood Office Furniture Manufacturing 100 - 249 West Central I Universal Presentation Concepts
Showcase, Partition, Shelving, and Locker Manufacturing 100 - 249 South
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5.3.14.3 NAICS 3379 Other Furniture Related Product Manufacturing Definition: This industry group comprises establishments manufacturing furniture-related products, such as mattresses, blinds, and shades. 33791 Mattress Manufacturing 33792 Blind and Shade Manufacturing
Top establishments:
Company Name Industry Description Employment
Size Region Springs Global Blind and Shade Manufacturing 1000+ South Simmons Manufacturing Co. Mattress Manufacturing 250 - 499 South Serta Mattress Co. Mattress Manufacturing 100 - 249 South Symbol Mattress Mattress Manufacturing 50 - 99 Southeast Aeroshade Inc. Blind and Shade Manufacturing 20 - 49 Southeast
Associated Industry Cluster—337 Furniture and Related Product Manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 2122 Iron ore mining
484 Truck transportation 3342 Other communications equipment manufacturing
3211 Sawmills and wood preservation 711 Independent artists, writers, and performers
55 Management of companies and enterprises 8112 Electronic and precision equipment repair and maintenance
n.a. Imputed rental value for owner-occupied dwellings
23 Construction of new nonresidential commercial and health care structures
3371 Institutional furniture manufacturing
23 Construction of new residential permanent site single- and multi-family structures
3336 Other engine equipment manufacturing
23 Construction of other new residential structures
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5.3.15 Electronic Shopping and Mail-Order Houses—NAICS 4541 Definition: This industry group comprises establishments primarily engaged in retailing all types of merchandise using non-store means, such as catalogs, toll free telephone numbers, or electronic media, such as interactive television or computer. Included in this industry are establishments primarily engaged in retailing from catalog showrooms of mail-order houses. 45411 Electronic Shopping and Mail-Order Houses
Challenges: The Wisconsin Electronic Shopping and Mail-Order Houses subsector represents a diverse set of retail enterprises. Challenges in this field are unique to the subsector: potential national legislation (Marketplace Fairness Act) to ensure all online retailers, even those without a business presence in a state, must apply sales taxes for each state; some Wisconsin online retailers argue that this will add a costly burden to collect taxes for the thousands of tax jurisdictions in the country. The ability to move goods originating in the state in an efficient, timely manner is crucial to the livelihood of firms shipping direct to consumers (i.e., profit for the subsector is linked to logistics, especially as free shipping and easy-return of product become industry mainstays). Is Wisconsin’s infrastructure up to the test of increased online shopping? Another challenge will be for virtual retailers to retain customer affinity; when a new/different retailer is only a click away, what keeps a customer devoted to a Wisconsin enterprise? Lastly, while businesses seek to customize the online buying experience for customers — pushing items of interest based on past purchases and loyalty program information — privacy advocates are pushing companies to make their practices more transparent to shoppers. Export data are not available. Gross Product: $1,439,208,000 – Rank 8th of 16 drivers Employment: 10,326 – Rank 11th of 16 Top establishments:
Company Name Industry Description Employment
Size Region Ben Meadows Co. Mail-Order Houses 1000+ South Colony Brands Inc. Mail-Order Houses 1000+ South Company Store Mail-Order Houses 1000+ West Central II D M Services Inc. Mail-Order Houses 1000+ South Eastbay Inc. Mail-Order Houses 1000+ Central Footlocker.com Inc. Mail-Order Houses 1000+ Central Miles Kimball Co. Mail-Order Houses 1000+ East Central S C Data Center Mail-Order Houses 1000+ South Seventh Avenue Mail-Order Houses 1000+ South Viviennes Collection Electronic Shopping 1000+ Southeast
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Associated Industry Cluster—4541 Electronic Shopping and Mail-Order Houses
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
531 Real estate 3162 Footwear manufacturing
493 Warehousing and storage 3115 Dry, condensed, and evaporated dairy product manufacturing
30. Turbine & power transmission equipment mfg. 1.95%
31. Printing & related support activities 1.14%
32. Forging & stamping -1.89%
33. Other furniture related product mfg. -2.89%
34. Household and institutional furniture mfg. -10.02%
35. Other wood product mfg. -17.00%
36. Office furniture and fixtures mfg. -17.82%
37. Plywood & engineered wood product mfg. -18.15% * Note: The gross state product (output) percentage change of 2008-2011 was calculated using only years 2008 and 2011. The output compound average growth rate between 1998 and 2003 is estimated from the previous 2004 report. The compound annual growth rate was calculated by taking the n-th root of the total percentage growth rate, where n is the number of years in the period being considered. This can be written as follows:
( _____1____ )
CAGR = ( Ending Value ) # of years
-1 Beginning Value
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Table 5-7 Ranking of Driver Industries, Gross Product ($ millions)
25. Coating, engraving, heat treating metals $511 26. Motor vehicle body and trailer mfg. $506 27. Commercial & service industry machinery $505 28. Glass and glass product mfg. $473 29. Other nonmetallic mineral products $332 30. Cutlery & handtool mfg. $270 31. Office furniture and fixtures mfg. $262 32. Spring and wire product mfg. $147 33. Hardware mfg. $146 34. Plywood & engineered wood product mfg. $141 35. Other furniture related product mfg. $119 36. Footwear mfg. $43 37. Leather and hide tanning & finishing $29
*Note: The Gross State Product 2003 data are inflated to 2011 dollars using the U.S. Consumer Price Index for all urban consumers.
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6 Wisconsin’s Business Climate This chapter assesses Wisconsin’s business competitiveness by:
• Ranking export performances of the Wisconsin driver industries, relative to competitive states and the United States.
• Assessing Wisconsin’s innovation capabilities (technology-intensive industries and patents), relative to competitive states and the United States.
• Evaluating Wisconsin’s workforce characteristics (education attainment, employment by sector, and job characteristics specific to manufacturing), relative to competitive states and the United States.
• Examining readiness of Wisconsin manufacturers, which constitute 36 of 37 driver industries, to compete in the next generation.
• Exploring factors that affect organizations doing business in Wisconsin and their performances (e.g., business climate rankings, taxes, and healthcare).
6.1 Exports in Wisconsin’s Driver Industries Wisconsin has 37 driver industries at the NAICS 4-digit level. Of the 37 industries, 36 are manufacturing industries and one is a non-manufacturing industry (NAICS 4541 — Electronic Shopping and Mail-order Houses). Data for the dollar amount of each state’s exports by industry are from the International Trade Administration (ITA), based on Foreign Trade Division, U.S. Census Bureau.1 These data, however, are only available at the 3-digit subsector level NAICS. (The 2-digit Manufacturing classification is considered an “economic sector” in the NAICS structure, and 3-digit groupings under it are considered “subsectors”; 4-digit classifications are identified as “industry groups” within NAICS.) The exports of Wisconsin’s 37 driver industries are, therefore, presented through the exports of 14 subsectors — driver industries combined at the 3-digit level NAICS. In addition, export data are available only for manufacturing industries. In this section, Wisconsin’s exports in driver industries to the world are compared to its eight competing states and the total U.S.. There was an increase in Wisconsin’s exports in 13 out of 14 3-digit NAICS driver subsectors, with the Transportation Equipment Manufacturing subsector (NAICS 336) the only subsector experiencing a decline. Each table shows the trends in a particular driver subsector with dollar value exported; the state’s share in the U.S. market for 2009, 2010, and 2011; and the percentage change between 2010 and 2011. Table 6-1 shows Food Manufacturing (NAICS 311) exports by Wisconsin, eight competitor states, and the United States. Two industry groups, the Fruit and Vegetable Preserving and Specialty (NAICS 3114) and Dairy Product Manufacturing (NAICS 3115), are a part of Wisconsin’s Food Manufacturing export subsector. The United States gradually increased its export to the world from the Food Manufacturing industry group from 2009 through 2011 and experienced a 12.3% increase from 2010 through 2011. Wisconsin accounted for 1.5% of the U.S. total exports in the Food Manufacturing subsector in 2011 and showed an 8% increase from 2010 through 2011.
UNITED STATES $1,107,246,881 $1,318,615,970 $1,480,431,903 100.0% 100.0% 100.0% 12.3% Source: Foreign Trade Division, U.S. Census Bureau.
Leather and Hide Tanning and Finishing (NAICS 3161) and Footwear Manufacturing (NAICS 3162) are driver industries in Wisconsin. Wisconsin increased its export in the Leather and Allied Product Manufacturing subsector (NAICS 316) by 19.2% from 2010 through 2011, which exceeded the growth of the U.S. total exports in this sector, 13.2%, for the same period of time (Table 6-2).
UNITED STATES $2,829,823 $3,508,898 $3,973,737 100.0% 100.0% 100.0% 13.2% Source: Foreign Trade Division, U.S. Census Bureau.
Table 6-3 shows that Wisconsin increased its exports in the Wood Product Manufacturing subsector by 12% from 2010 through 2011, almost double the growth rate of U.S. total exports in the industry. Wisconsin accounts for 3.4% of U.S. total exports in Wood Product Manufacturing. Compared to competitor states, Wisconsin is in the middle of the pack in terms of amount exported in 2011. Considering the size of the state economy, as measured by total employment,2 Wisconsin’s export in the
2 Total estimated number of employees in Wisconsin is 2,884,919, accounting for 2.1% of the U.S. total employment in 2011.
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Wood Product Manufacturing sector is relatively large. In this sector, Wisconsin has two driver industries: the Plywood and Engineered Wood Product Manufacturing industry group (NAICS 3212) and the Other Wood Product Manufacturing industry group (NAICS 3219).
UNITED STATES $4,396,422 $5,511,223 $5,858,987 100.0% 100.0% 100.0% 6.3% Source: Foreign Trade Division, U.S. Census Bureau. Table 6-4 shows that in the Paper Manufacturing subsector, the United States has increased its exports to the world by 24.3% from 2009 through 2011 with a 5.3% increase from 2010 through 2011. Wisconsin accounts for 3.7% of the U.S. total exports in the Paper Manufacturing subsector, and it experienced the fastest growth rate, 43.7%, since 2009 and 9.6% since 2010, among the competitor states. In Paper Manufacturing, Georgia exported more than any other state in 2011.
Table 6-4 Paper Manufacturing Exports—NAICS 322 (Drivers 3221, 3222) State Rank Exports (Real 2011 $, 1,000) % share % change
UNITED STATES $20,655,034 $24,398,748 $25,684,515 100.0% 100.0% 100.0% 5.3% Source: Foreign Trade Division, U.S. Census Bureau.
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Table 6-5 indicates that Wisconsin exported more than any of its competing states, accounting for 7.6% of overall U.S. total exports, in the Printing and Related Support Activities subsector (NAICS 323) in 2011. From 2010 through 2011, Wisconsin increased its exports in Printing and Related Support Activities by 20.7%, while overall U.S. exports in this industry decreased by 2.2%. Illinois exported more than Wisconsin in 2009 but has experienced a 13.4% decrease since 2009. Wisconsin has one driver industry in this sector.
Table 6-5 Printing and Related Support Activities Exports—NAICS 323 (Driver 3231) State Rank Exports (Real 2011 $, 1,000) % share % change
UNITED STATES $6,390,387 $6,627,163 $6,480,957 100.0% 100.0% 100.0% -2.2%
Source: Foreign Trade Division, U.S. Census Bureau. The industry group Soap, Cleaning Compound, and Toilet Preparation Manufacturing (NAICS 3256) is a driver industry in Wisconsin. States’ exports in the corresponding Chemical Manufacturing subsector (NAICS 325) are shown in Table 6-6. U.S. exports in the Chemical Manufacturing subsector have increased since 2009, and its growth rate between 2010 and 2011 was 6.4%. Although Wisconsin accounts for 0.8% of U.S. total exports, it is one of the fastest growing chemical exporters among its competing states.
Table 6-6 Chemical Manufacturing Exports—NAICS 325 (Driver 3256) State Rank Exports (Real 2011 $, 1,000) % share % change
UNITED STATES $159,637,421 $185,240,961 $197,139,303 100.0% 100.0% 100.0% 6.4% Source: Foreign Trade Division, U.S. Census Bureau.
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Wisconsin has increased its exports in the Plastics and Rubber Products Manufacturing subsector (NAICS 326) since 2009 (Table 6-7). Wisconsin had a share of 2.3% in the Plastics and Rubber Products Manufacturing subsector in 2011, increased 6.6% from 2010. Ohio exported more plastics and rubber products than any of the competing states in 2011. Wisconsin has one driver industry in this sector: the Plastic Product Manufacturing industry group (NAICS 3261).
UNITED STATES $22,681,957 $26,723,932 $29,098,718 100.0% 100.0% 100.0% 8.9% Source: Foreign Trade Division, U.S. Census Bureau. The industry groups Glass Products Manufacturing (NAICS 3272) and Other Non-metallic Mineral Product Manufacturing (NAICS 3279) are driver industries in Wisconsin. At the 3-digit subsector level NAICS, Wisconsin exported $155 million of non-metallic mineral products (NAICS 327), accounting for 1.5% of the U.S. total in 2011 (Table 6-8). Wisconsin exported less than any of its competitor states but increased its exports of non-metallic mineral products by 27.4% from 2010 through 2011. Michigan exported 9.1 % of U.S. total exports of non-metallic mineral products, ranking first among the competing states in 2011.
UNITED STATES $8,312,208 $10,122,128 $10,746,940 100.0% 100.0% 100.0% 6.2% Source: Foreign Trade Division, U.S. Census Bureau.
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Table 6-9 shows that the United States has increased exports in Primary Metal Manufacturing (NAICS 331) over the period, with a 38.5% increase between 2010 and 2011. Wisconsin also increased its exports in this subsector by 24%. In this category, Wisconsin has one driver industry: Foundries (NAICS 3315). Pennsylvania ranked first among Wisconsin’s competitor states in exports of Primary Metal Manufacturing.
Table 6-9 Primary Metal Manufacturing Exports—NAICS 331 (Driver 3315)
UNITED STATES $42,627,582 $55,211,665 $76,472,956 100.0% 100.0% 100.0% 38.5% Source: Foreign Trade Division, U.S. Census Bureau. Wisconsin has increased its exports in the Fabricated Metal Products subsector since 2009. The growth rate of Wisconsin’s exports (16.6%) exceeded that of U.S. total exports (10.5%) from 2010 through 2011. In 2011, Wisconsin ranked 16th in the nation for exports in Fabricated Metal Products Manufacturing (Table 6-10). Eight out of the nine 4-digit NAICS-level industry groups under the Fabricated Metal Products Manufacturing subsector are driver industries in Wisconsin.
UNITED STATES $31,670,362 $36,860,340 $40,743,127 100.0% 100.0% 100.0% 10.5% Source: Foreign Trade Division, U.S. Census Bureau.
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Wisconsin is ranked second, following Illinois, among its competing states for exports in the Machinery Manufacturing subsector. Wisconsin’s exports surpassed those of Ohio with a 20.9% increase between 2010 and 2011. Wisconsin accounted for 4.3% of U.S. total exports in the Machinery Manufacturing subsector and ranked fifth in the nation in 2011. All 4-digit-level industry groups under Machinery Manufacturing are driver industries of Wisconsin (Table 6-11).
UNITED STATES $118,914,949 $142,159,371 $156,983,530 100.0% 100.0% 100.0% 10.4% Source: Foreign Trade Division, U.S. Census Bureau. Wisconsin exported $1.3 billion in the Electrical Equipment Manufacturing subsector (NAICS 335) and ranked fifth among its competitor states in 2011. In this sector, the Household Appliance Manufacturing industry group (NAICS 3352) and Electrical Equipment Manufacturing industry group are driver industries in Wisconsin. From 2010 through 2011, Wisconsin experienced a 15.1% increase in Electrical Equipment and Appliance and Component Manufacturing exports, while U.S. total exports increased by 8.9% (Table 6-12).
UNITED STATES $32,907,989 $38,730,554 $42,177,630 100.0% 100.0% 100.0% 8.9% Source: Foreign Trade Division, U.S. Census Bureau.
6-8 Wisconsin Economic Future Study
Table 6-13 illustrates the amount exported in the Transportation Equipment Manufacturing subsector (NAICS 336) by Wisconsin, eight competing states, and the United States. Among the 14 3-digit NAICS subsectors accounting for Wisconsin’s driver industries, only exports in the Transportation Equipment Manufacturing (NAICS 336) subsector declined — a decrease of 16.2% from 2010 through 2011. Overall U.S. exports, however, increased from 2009 through 2011.
UNITED STATES $173,393,601 $196,950,944 $217,928,783 100.0% 100.0% 100.0% 10.7% Source: Foreign Trade Division, U.S. Census Bureau. Wisconsin is an exporter of products in the Furniture and Related Products Manufacturing subsector (NAICS 337). As shown in Table 6-14, Wisconsin has increased its Furniture and Related Products exports as well as its share in U.S. total exports in this subsector since 2009. Michigan accounted for more than 10% of the U.S. total and is ranked first among the competing states and second in the nation for furniture-product exports during the comparison period.
Table 6-14 Furniture and Related Product Manufacturing Exports—NAICS 337 (Drivers 3371, 3372, 3379)
UNITED STATES $4,194,751 $4,733,437 $5,099,358 100.0% 100.0% 100.0% 7.7% Source: Foreign Trade Division, U.S. Census Bureau.
6-9 Wisconsin Economic Future Study
The 14 subsectors that include Wisconsin’s 36 driver industries are ranked by exports in 2011 in Table 6-15. At the 3-digit-level NAICS, Food Manufacturing is the largest export subsector in Wisconsin. Food Manufacturing accounts for 51% of total Wisconsin’s exports among the 14 subsectors. Machinery Manufacturing and Printing and Related Support Activities, respectively, are the second and third largest export subsectors in Wisconsin.
Table 6-15 Total Export by Wisconsin in 2011, by 3-digit NAICS Rank NAICS Industry Definition Exports in 2011 (Thousand $)
1 311 Food Manufacturing $22,055,118
2 333 Machinery Manufacturing $6,686,471
3 323 Printing and Related Support Activities $6,480,957
6 335 Electrical Equipment, Appliance, and Component Manufacturing $1,297,999
7 322 Paper Manufacturing $948,716
8 332 Fabricated Metal Products Manufacturing $782,747
9 326 Plastics and Rubber Products Manufacturing $671,249
10 331 Primary Metal Manufacturing $300,746
11 321 Wood Product Manufacturing $199,276
12 337 Furniture and Related Product Manufacturing $171,555
13 327 Non-Metallic Mineral Product Manufacturing $155,903
14 316 Leather and Allied Product Manufacturing $70,033 Source: Foreign Trade Division, U.S. Census Bureau.
6-10 Wisconsin Economic Future Study
6.2 Innovation Analysis 6.2.1 Analysis of Technology-Intensive Industries A comprehensive analysis of Wisconsin’s economy requires a deep understanding of technology industries within the state. Although it is difficult to prove causal relationships, the data suggest a correlation between relatively higher shares of technology-intensive industries and an increasing rate of growth in gross state product (GSP) over time. While the overall Wisconsin economy experienced growth of GSP by 7.1% between 2002 and 2011, the growth of GSP in technology-intensive industries was 39%.3 Our analysis of technology-intensive industries includes classifying all industries into one of three technology categories, based on the educational requirements of the workforce in that industry: very technology intensive, moderately technology intensive, and low technology intensive. Industries not included in these three groups are categorized as having no technological intensity. The industries included in each group are listed in Table 6-16.
3 Moody’s Economy.com.
6-11 Wisconsin Economic Future Study
Table 6-16 Definition of Technology-Intensive Industries
*Note 1: Data of 1131 and 1132 include insignificant percentages of total employment and so are excluded. *Note 2: Industry groups 4861, 4862, and 4869 are not established separately. Study uses 4860, including 4861, 4862, and 4869.
Tech intensity Industry NAICS NAICS description
Very Technology Intensive
Manufacturing
3254 Pharmaceutical and medicine manufacturing
3341 Computer and peripheral equipment manufacturing
3342 Communications equipment manufacturing
3344 Semiconductor and other electronic component manufacturing
3345 Navigational, measuring, electro-medical, and control instruments
3364 Aerospace product and parts manufacturing
Pipeline & Telecommunication 5179 Other telecommunications
Service
5112 Software publishers
5182 Data processing, hosting, and related services
5413 Architectural, engineering, and related services
5415 Computer systems design and related services
5417 Scientific research-and-development services
Moderate Technology
Intensive
Manufacturing
3251 Basic chemical manufacturing
3252 Resin, synthetic rubber, and artificial synthetic fibers and filaments
3332 Industrial machinery manufacturing
3333 Commercial and service industry machinery manufacturing
3343 Audio and video equipment manufacturing
3346 Manufacturing and reproducing, magnetic and optical media
Others
1131 Forestry
1132 Forestry
2111 Oil and gas extraction
2211 Electric power generation, transmission, and distribution
Service 4234 Professional and commercial equipment and supplies, wholesalers
5416 Management, scientific, and technical consulting services
Low Technology Intensive
Manufacturing
3241 Petroleum and coal products manufacturing
3253 Pesticide, fertilizer, and other agricultural chemical manufacturing
3255 Paint, coating, and adhesive manufacturing
3259 Other chemical product and preparation manufacturing
3336 Engine, turbine, and power transmission equipment manufacturing
3339 Other general-purpose machinery manufacturing
8112 Electronic and precision equipment repair and maintenance
6-12 Wisconsin Economic Future Study
Total GSP of technology-intensive industries (very technology intensive, moderate technology intensive, and low technology intensive) in Wisconsin was 15% of total GSP, compared to the national average of 18.8% (Table 6-17). Wisconsin lags not only the national economy in its dependence on technology-intensive industries, but it also lags the average of competing states (GA, IL, IN, MI, NM, NC, OH, PA) by 2.2 percentage points.
Table 6-17 Wisconsin’s Share of GSP from Technology-Intensive Industries, 2011 Wisconsin Regional Peers* United States
Total Technology-Intensive GSP in Private Sector 15.0% 17.2% 18.8% Very Technology Intensity 4.8% 6.9% 7.9%
Very Technology-Intensive Manufacturing 1.6% 2.6% 2.9% Very Technology-Intensive Pipeline & Telecommunication 0.2% 0.3% 0.3% Very Technology-Intensive Service 3.0% 4.0% 4.7%
Low Technology Intensity 6.2% 5.9% 5.4% Low Technology-Intensive Manufacturing 2.7% 1.9% 1.6% Low Technology-Intensive Pipeline & Telecommunication 1.2% 1.5% 1.7% Low Technology-Intensive Service 2.3% 2.6% 2.0% *The average of GA, IL, IN, MI, NM, NC, OH, PA
Source: Moody's Economy.com Two states in the peer group have the highest shares of technology-intensive industries in the overall economy: Indiana’s technology-intensive industries contributed 18.95% and North Carolina’s technology-intensive industries contributed 17.9% of total GSP in 2011 (Table 6-17).4. Industries with high levels of technological intensity contributed 4.8%, a smaller share of GSP in Wisconsin, compared to 6.9% in the group of eight competing states and 7.9% at the national level (Table 6-17). Moderate technology-intensive industries in Wisconsin also contributed a smaller share (4.0%) of GSP vs. the competing states (4.4%) and the national level (5.5%). Yet low technology-intensive industries contribute a larger share of GSP in Wisconsin than in the competing states (6.2% vs. 5.9%) and at the national level (6.2% vs. 5.4%). Manufacturing industries in Wisconsin are an essential part of the state driver industries. More than one-third of growth in technology-intensive industries came from manufacturing; technology-intensive manufacturing industries in Wisconsin produced 5.14% of overall GSP in 2011 (Figure 6-1).
4 Moody’s Economy.com.
6-13 Wisconsin Economic Future Study
Figure 6-1 Share of GSP from Technology-Intensive Manufacturing Industries, 2011
* The average of GA, IL, IN, MI, NM, NC, OH, PA
On average in the United States, manufacturing industries account for 5.24% of total gross product and, on average, 5.32% of GSP comes from manufacturing technology-intensive industries in the competing states.5 However, among the competing states, Wisconsin lags only Indiana (11.18%) and North Carolina (7.72%) in contribution to GSP from technology-intensive manufacturing (Figure 6-1). According to Table 6-16 and Figure 6-1, manufacturing industries with very and moderate technological intensity contributed smaller shares of GSP in Wisconsin (1.6% in high technology intensity, 0.9% in moderate technology intensity industries). Yet manufacturing industries with low technological intensity contributed a larger share of GSP in Wisconsin, compared to the competing states and at the national level (2.7% for Wisconsin, 1.9% for the competing states, and 1.7% for the United States). Table 6-18 and Figure 6-2 illustrate the amounts and respective shares of GSP created by technology-intensive industries in Wisconsin, the competing states, and the United States. All technology-intensive industries in Wisconsin produce $38.6 billion, or almost 15% of total GSP, which is the lowest share of total GSP among the competing states except for Michigan (14.19%). It is also a lower share than the U.S. average of 18.74%. All of the competing states except Indiana performed worse in this indicator than the total U.S.; Indiana surpassed the national average by only 0.21%. Wisconsin’s very technology-intensive and moderate technology-intensive industries produced the lowest share of GSP (8.75%) vs. the competing states; the peer states’ very technology-intensive and moderate technology-intensive industries produced, on average, 11.26% of total GSP (Table-6-18).
5 Moody’s Economy.com.
5.14% 5.24%
2.46%
4.76%
11.18%
2.49%
5.02%
7.72%
5.03%
3.88%
5.32%
0%
2%
4%
6%
8%
10%
12%
WI U.S. GA IL IN MI MN NC OH PA Regional Peers*
6-14 Wisconsin Economic Future Study
Table 6-18 GSP Produced by Technologically-Intensive Industries in Wisconsin, Eight Competing States, and the United States (Unit: $ Billions, %)
Figure 6-2 Percentage of GSP by Technologically-Intensive Industries in Wisconsin, Eight Competing States, and the United States
Source: Moody's Economy.com Technology-intensive industries account for 8.4% of Wisconsin’s employment, compared to 9% nationwide and 8.8% among the competing states (Table 6-19). Similar to the contribution of technology-intensive industries to GSP, Wisconsin’s very technology-intensive and moderate technology-intensive industries employ less people compared to the United States and the competing states. Yet the low technology-intensive industries employ more people (3.9%) compared to the United States (2.8%) and the average of the competing states (3.3%).
4.76%
6.73%
5.99%
8.46%
6.01%
6.69%
8.91%
5.17%
6.96%
7.90%
3.99%
4.87% 4.99% 4.63% 4.21%
3.49%
4.09% 4.57%
4.28%
5.45%
6.20% 5.66%
6.85%
5.86%
3.97%
7.56%
4.90%
6.90%
6.13%
5.39%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
WI GA IL IN MI MN NC OH PA U.S.
Wisconsin and its Competing States
VERY MODERATE LOW
6-15 Wisconsin Economic Future Study
Table 6-19 Wisconsin’s Share of Employment from Technology-Intensive Industries, 2011 Wisconsin Regional Peers* United States
Total Technology-Intensive Employment in Private Sector 8.4% 8.8% 9.0% Very Technology Intensity 2.8% 3.7% 4.3%
Very Technology-Intensive Manufacturing 1.0% 1.2% 1.4%
Very Technology-Intensive Pipeline & Telecommunication 0.0% 0.0% 0.1%
Very Technology-Intensive Service 1.8% 2.4% 2.8% Moderate Technology Intensity 1.7% 1.8% 2.0%
Low Technology-Intensive Service 1.9% 1.9% 1.6% *The average of IN, KY, MA, MD, MI, NC, NJ, NY, OH, WV
Source: Moody's Economy.com Table 6-19 shows that Wisconsin’s technology-intensive manufacturing accounts for 3.0% of statewide employment, compared to 2.4% for the average of the competing states and 2.4% for the United States. On the other hand, technology-intensive service industries contribute 4.5% of Wisconsin’s employment, compared to 5.4% among the competing states and 5.6% nationwide. Table 6-20 and Figure 6-3 provide details on employment by very, moderate, and low technology-intensive industries by each of the competing states and the United States. Minnesota had the highest percentage of people employed by the very technology-intensive industries (4.31%, same as the national average), followed by Michigan (3.88%) and North Carolina (3.80%). Wisconsin had the lowest employment in this category of all the competing states (2.83%). It has second-highest employment in low technology-intensive industries, exceeding the national average in this category (3.82% in Wisconsin compared to 4.15% in MN and 2.80% in the U.S.).
Table 6-20 Employment of Wisconsin, Eight Competing States, and the United States (Unit: Persons, %)
Figure 6-3 Percentage of Employment in Wisconsin, Eight Competing States, and the United States
Source: Moody's Economy.com
2.83%
3.78%
3.48%
3.05%
3.88%
4.31%
3.80%
3.38%
3.73%
4.31%
1.67%
2.25% 2.34%
1.36% 1.63% 1.72% 1.78% 1.72%
1.93% 1.97%
3.82%
3.11% 3.33%
2.75% 2.60%
4.15%
3.19%
3.72%
3.37%
2.80%
0%
1%
2%
3%
4%
5%
WI GA IL IN MI MN NC OH PA U.S.
VERY MODERATE LOW
6-17 Wisconsin Economic Future Study
Out of 38 technology-intensive industries in Wisconsin, 12 have high concentration (LQ>1), and of these 12 industries, eight are manufacturing industries (Figure 6-4). Among the 12 technology-intensive industries of high concentration in Wisconsin, two are very technology-intensive (Electronic Instrument Manufacturing with LQ=1.04 and Data Processing and Related Services with LQ=1.35), four are moderate technology-intensive industries, and six are low technology-intensive industries. Among those 12 with high concentration, six are statewide driver industries: Two drivers belong to moderate technology-intensive manufacturing industry groups (Industrial Machinery Manufacturing with LQ=4.43 and Commercial and Service Industry Machinery Manufacturing with LQ=2.31). Four drivers belong to low technology-intensive manufacturing industry groups (Turbine and Power Transmission Equipment Manufacturing with LQ=4.48, Other General Purpose Machinery Manufacturing with LQ=2.99, Electrical Equipment Manufacturing with LQ=6.65, and Other Transportation Equipment Manufacturing with LQ=9.06).
Figure 6-4 Level of Specialization among Technology-Intensive Industries in Wisconsin
Source: Moody's Economy.com Note: “P&T” is an abbreviation for Pipeline and Telecommunication Industries.
6-18 Wisconsin Economic Future Study
The following tables and charts provide details on gross product and employment in technology-intensive industries by seven regions of the state: (A) Very Technology-Intensive Industries
Table 6-21 GDP of Very Technology-Intensive Industries in Wisconsin’s Seven Regions Figure 6-5 GDP of Very Technology-Intensive Industries in Wisconsin’s Seven Regions
Table 6-22 Employment of Very Technology-Intensive Industries in Wisconsin’s Seven Regions Figure 6-6 Percentage of Employment of Very Technology-Intensive Industries in Wisconsin’s Seven
Regions (B) Moderate Technology-Intensive Industries Table 6-23 GDP of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions Figure 6-7 GDP of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions Table 6-24 Employment of Moderate Technology-Intensive Industries in Wisconsin’s Seven Regions Figure 6-8 Percentage of Employment of Moderate Technology-Intensive Industries in Wisconsin’s
Seven Regions (C) Low Technology-Intensive Industries Table 6-25 GDP of Low Technology-Intensive Industries in Wisconsin’s Seven Regions Figure 6-9 GDP of Low Technology-Intensive Industries in Wisconsin’s Seven Regions Table 6-26 Employment of Low Technology-Intensive Industries in Wisconsin’s Seven Regions Figure 6-10 Percentage of Employment of Low Technology-Intensive Industries in Wisconsin’s
Seven Regions
6-19 Wisconsin Economic Future Study
(A) Very Technology-Intensive Industries
Table 6-21 GDP of Very Technology-Intensive Industries in Wisconsin’s Seven Regions (Unit: $Mil, %)
Note 1: GDP values are inflated based on the year of 2011. Note 2: South region includes Winnebagoo County, Illinois; West Central II region includes Houston County, Minnesota Note 3: Percentage values are based on the total GSP of seven regions from all industries in Wisconsin. Source: Moody's Economy.com
Figure 6-5 GDP of Very Technology-Intensive Industries in Wisconsin’s Seven Regions
Source: Moody's Economy.com
South
South East
Wisconsin
1%
2%
3%
4%
5%
6%
7%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Perc
enta
ge o
f GD
P
West Central 1
East Central
West Central 2 North
Central
6-20 Wisconsin Economic Future Study
Table 6-22 Employment of Very Technology-Intensive Industries in Wisconsin’s Seven Regions
Figure 6-10 Employment of Low Technology-Intensive Industries in Wisconsin’s Seven Regions
Source: Moody's Economy.com
6-25 Wisconsin Economic Future Study
6.2.2 Analysis of Patenting 6.2.2.1 Patent Data Analysis of patenting in Wisconsin is based on a database obtained from Thompson Delphion using the following criteria: all U.S. patents and applications assigned to an owner (inventor or company, also called “assignee”) with a postal address in Wisconsin. In cases of multiple inventors or assignees, if at least one assignee listed a postal address in Wisconsin, the patent was included for this analysis. The patents selected had application dates between January 1, 2001, and December 31, 2011. An application date is the date when the completed materials are submitted to the issuing authority; it is closer to the time of actual innovation and avoids confusion arising from variable review periods between the time an application is submitted and the time a patent is actually granted. The patent applications database in Wisconsin consists of patents that were applied for but not yet issued (granted) by the U.S. Patent and Trademark Office (USPTO); these are called “pre-granted” patents. The USPTO has issued complete text and images of all patent applications since 2001. The following descriptive analysis refers to pre-granted patents, but for simplicity it uses the terms “patents” or “applications.” A total of 33,214 patents were assigned to either companies or inventors in Wisconsin in 2001-2011. The number of patents applied for each year during the study period is listed in Table 6-27.
Table 6-27 Annual Number of Patent Applications, 2001-2011 Year Number of Patents Percentage of Total 2001 2,750 8.3% 2002 2,974 9.0% 2003 3,387 10.2% 2004 3,464 10.4% 2005 3,369 10.1% 2006 3,424 10.3% 2007 3,574 10.8% 2008 3,213 9.7% 2009 2,929 8.8% 2010 2,658 8.0% 2011 1,472 4.4% Total 33,214 100%
Source: Delphion.com The number of Wisconsin’s patents increased from 2001 to 2007 accounting, on average, for 3,277 applications annually. In comparison, for the last four years studied, from 2008 through 2011, the annual average of applications dropped to 2,568. The start of the declining period is consistent with the beginning of the recession, resulting in a decrease of patent applications from 3,213 (9.7%) in 2008 to 1,472 (4.4%) in 2011.
6-26 Wisconsin Economic Future Study
6.2.2.2. Geography and Ownership We analyzed the geography of a patent using two variables: postal address of an inventor and postal address of a patent assignee, i.e., the inventor or a company that owns a patent. The geographical variables were dichotomous: “WI” if an inventor or an assignee has a postal address in Wisconsin, and “non-WI” when the address was listed anywhere outside of Wisconsin, including foreign inventors or company addresses outside of the United States. An underlying assumption for this analysis is that geographical proximity helps to enable regional commercialization of innovation and enhances the overall innovation environment, although proximity alone it is not a sufficient condition for innovation. An interesting element in this analysis is to look at patents owned by Wisconsin companies but developed by non-WI inventors. These data point to knowledge gaps in Wisconsin and the growing need of businesses for innovation in specific areas of knowledge. Tables 6-28 and 6-29 show a matrix and percentage of WI patents distinguished by ownership. Out of 33,214 patents during 2001-2011, 24,759 (or 74.5%) were developed by WI inventors and owned either by WI companies or WI inventors. WI inventors developed and owned 19,006 patents. Wisconsin’s inventors also developed 7,701 patents owned by non-WI companies, although a common practice in patenting includes listing a postal address for the headquarters of a company that owns a patent, even if the innovation research and patenting occur in a company’s branch or non-headquarters location. Of all patents, 754 (or only 2.3%) were developed by non-WI inventors and owned by WI companies.
Table 6-28 Matrix of Patents by Geography and Ownership
Patents by Ownership
WI Non-WI
Inventor
WI WI inventors & WI company-owned (A) = 5,753
WI inventors & WI inventor-owned (B) = 19,006 C = (A+B) = 24,759
WI inventors & Non-WI company-owned
(D) = 7,701
Non-WI Non-WI inventors & WI company-owned (E) = 754 0
Note: Companies-owned patents in WI or Non-WI: A + D + E (14,208 patents) Companies-owned patents only in WI: A + E (6,507 patents)
Table 6-29 Ownership of Patents by Geography
Patents by Ownership Number of Patents Percentage of Total
WI Inventors & WI Company-Owned (A) 5,753 17.3%
WI Inventors & WI Inventor-Owned (B) 19,006 57.2%
WI Inventors & Non-WI Company-Owned (D) 7,701 23.2%
Non-WI Inventors & WI Company-Owned (E) 754 2.3%
Total 33,214 100% *Source: Delphion.com
6-27 Wisconsin Economic Future Study
There were 6,507 (19.6%) patents owned by Wisconsin companies, of which 5,753 (17.3%) were invented by WI inventors and 754 (2.3%) invented elsewhere. These have the greatest potential to directly improve the state economy, but there is no guarantee that a company-assignee will implement the patent into a product or process or implement it within Wisconsin. 19,006 (57.2%) patents invented and owned by inventors living in Wisconsin may be commercialized in Wisconsin and thus directly benefit the state economy, or they may be commercialized outside Wisconsin, bringing indirect benefits through royalty payments. 7,701 (23.2%) patents invented by Wisconsin inventors but owned by non-Wisconsin companies could be commercialized within or outside of the state. Even if these patents are commercialized outside of the state, knowledge developed in preparing these patents may have benefited the Wisconsin economy through knowledge transfers to in-state companies through social networks and contractual and corporate relationships. 6.2.2.3 Patenting and R&D Although patenting is often considered as an “output” measure of innovation, and academic and industrial research and development (R&D) expenditures are considered as “input” measures, data rarely suggest a strong correlation between R&D expenditures and the number of patents in a geographic region. Funding for academic and industrial R&D in Wisconsin was steadily growing over the last 11 years (Table 6-30). Academic R&D increased over 83% in 2010 compared to 2001, and industrial R&D increased 56.5% in 2009 compared to the same base year, 2001. At the same time, the number of patents grew only 22.5% in 2005 compared to 2001, and then declined to a level slightly smaller than the number of patents in the base year.
Table 6-30 Industrial and Academic R&D Funds and Patenting in WI, 2001-2009 Year Academic R&D
(millions) Industrial R&D
(millions) # Patents
2001 $729 $2,415 2,750
2002 $806 $2,469 2,974
2003 $881 $2,649 3,387
2004 $957 $2,623 3,464
2005 $1,000 $2,645 3,369
2006 $1,040 $2,729 3,424
2007 $1,067 $3,020 3,574
2008 $1,117 $3,411 3,213
2009 $1,204 $3,798 2,929
2010 $1,336 2,658
Source: National Science Foundation, Delphion.com
6-28 Wisconsin Economic Future Study
The number of patents assigned to Wisconsin inventors or Wisconsin companies were not directly correlated with amount of academic or industrial R&D expenditures in the state6 (Table 6-31). The number of patents grew only 6.5% in 2009 compared to 2001, declining from its high in 2007 (3,574 patents). This implies that patents from Wisconsin innovation do not correlate directly with Wisconsin industrial and university R&D expenditures; it is possible, however, that non-patented innovation resulted from the R&D expenditures, e.g. consulting on product and process improvements. However, there was a strong relationship between industry and academic R&D expenditures (correlation coefficient 87.6%), which suggests collaboration between industry and universities during the process of developing innovation.
Table 6-31 Correlation between the Number of Patents and R&D Funds, 2001-2009 Academic R&D Industrial R&D Patents
Academic R&D 1
Industrial R&D 0.876 1
Patents 0.345 -0.125 1
Source: National Science Foundation 6.2.2.4 Patenting Profile of Wisconsin Each patent is assigned an International Patent Classification code (IPC) as part of a system for the classification of patents and utility models according to the technology to which they pertain.7 All 33,214 patents were tabulated according to the first four digits of IPC codes to identify common technologies within Wisconsin’s innovation environment. Wisconsin patents were distributed across 546 4-digit IPC codes (Table 6-32). The top 25 IPC 4-digit classes account for 15,345 (43.2%) of all patents. More than one-third of these patents (5,703 out of 15,345) are granted within the field of Medical or Veterinary Science and Hygiene (class A61). The top four 4-digit IPC classes have more than a thousand patents each, accounting for three areas of A61:
• A61K – Preparation for Medical, Dental, or Toilet Purposes (1,758 patents) • A61B – Diagnosis, Surgery; Identification (1,739) • A61F – Filters Implantable into Blood Vessels; Prostheses (1,269)
In addition to high profile medical research, the fourth area, G06F – Electrical Digital Data Processing (1,574 patents) — illustrates innovation in a field vital to medical research: computer data processing.
6 The number of patents and the amount of industrial R&D funds at the state level over the time period from 2001 through 2009 are negatively associated, while the number of patents and the amount of academic R&D funds are positively associated with the level of correlation at 34%. 7 According to The World Intellectual Property Organization (WIPO) and established by the Strasbourg Agreement 1971, http://www.wipo.int/classifications/ipc/en/. United States is among 185 member states of WIPO. According to prior research, IPC coding system provides better classification of technologies in terms of common domains of knowledge.
Table 6-32 Frequencies and Description of the Top 25 IPC Codes of Patents, 2001-2011
Rank
4-dgt IPC
(546 total)
Frequency Percent Cumulative Percent Description (www.wipo.int/classifications/ipc/)
Total 33,214 100% 1 A61K 1,758 5.3% 5.3% Preparations for medical, dental, or toilet purposes 2 A61B 1,739 5.2% 10.5% Diagnosis; surgery; identification 3 G06F 1,574 4.7% 15.3% Electric digital data processing 4 A61F 1,269 3.8% 19.1% Filters implantable into blood vessels; prostheses 5 B65D 817 2.5% 21.5% Containers for storage or transport of articles or materials 6 B32B 736 2.2% 23.8% Layered products, i.e. products built-up of strata of flat/ non-flat 7 G06Q 542 1.6% 25.4% Data processing systems or methods 8 B01D 505 1.5% 26.9% Separation (separating solids from solids)
9 B23K 449 1.4% 28.3% Soldering or unsoldering; welding; cladding
10 C12N 402 1.2% 29.5% Micro-organisms or enzymes 11 B29C 387 1.2% 30.6% Shaping or joining of plastics 12 G01N 359 1.1% 31.7% Investigating materials by determining their chemical properties 13 G06K 359 1.1% 32.8% Recognition of data; presentation of data; record carriers 14 A61N 348 1.0% 33.9% Electrotherapy; magnetotherapy; radiation therapy 15 A01H 337 1.0% 34.9% New plants or processes for obtaining them 16 A61M 337 1.0% 35.9% Devices for introducing media into, or onto, the body 17 A01K 313 0.9% 36.8% Animal husbandry; care of birds, fishes, insects 18 G01R 301 0.9% 37.7% Measuring electric variables 19 C12Q 294 0.9% 38.6% Measuring or testing processes involving enzymes 20 B65H 268 0.8% 39.4% Handling thin or filamentary material, e.g. sheets, webs, cables 21 A47K 255 0.8% 40.2% Sanitary equipment; toilet accessories 22 A61L 252 0.8% 40.9% Methods or apparatus for sterilising materials 23 B65B 248 0.7% 41.7% Machines, apparatus or devices for packaging articles; unpacking 24 B23P 247 0.7% 42.4% Other working of metal; combined operations 25 C07H 242 0.7% 43.2% Sugars; derivatives thereof; nucleosides
Source: Delphion.com
6-30 Wisconsin Economic Future Study
A patent profile of 14,208 company-owned patents shows a similar distribution, yielding the same four patent classes to the top positions by the frequency of patents (Table 6-33). The difference in frequencies of the same classes in Table 6-32 and Table 6-33 speaks to high individual-inventor activity by areas of patenting. It shows that, on average, among classes of medical patenting, more than half of all patents belong to individual inventors.
Table 6-33 Top 25 IPC Codes of Company-owned Patents, 2001-2011
Rank
4-dgt IPC
(477 total)
Frequency Percent Cumulative Percent Description (www.wipo.int/classifications/ipc/)
Total 14,208 100% 1 G06F 811 5.7% 5.7% Electric digital data processing 2 A61K 792 5.6% 11.3% Preparations for medical, dental, or toilet purposes 3 A61B 676 4.8% 16.0% Diagnosis; surgery; identification 4 A61F 619 4.4% 20.4% Filters implantable into blood vessels; prostheses 5 B32B 346 2.4% 22.8% Layered products, i.e. products built-up of strata of flat or non-flat 6 B65D 329 2.3% 25.1% Containers for storage or transport of articles or materials 7 B01D 268 1.9% 27.0% Separation (separating solids from solids) 8 B23K 237 1.7% 28.7% Soldering or unsoldering; welding; cladding
9 G06Q 233 1.6% 30.3% Data processing systems or methods
10 A01H 215 1.5% 31.9% New plants or processes for obtaining them 11 G06K 196 1.4% 33.2% Recognition of data; presentation of data; record carriers 12 A61M 184 1.3% 34.5% Devices for introducing media into, or onto, the body 13 B29C 171 1.2% 35.7% Shaping or joining of plastics 14 G01N 171 1.2% 36.9% Investigating or analysing materials by determining their chemical properties 15 C12Q 153 1.1% 38.0% Measuring or testing processes involving enzymes or micro-organisms 16 C12N 144 1.0% 39.0% Micro-organisms or enzymes 17 A61N 137 1.0% 40.0% Electrotherapy; magnetotherapy; radiation therapy 18 B65H 129 .9% 40.9% Handling thin or filamentary material, e.g. sheets, webs, cables 19 B65B 117 .8% 41.7% Machines, apparatus or devices for packaging articles; unpacking 20 C07H 111 .8% 42.5% Sugars; derivatives thereof; nucleosides 21 G05B 111 .8% 43.3% Control or regulating systems in general 22 B05D 110 .8% 44.1% Processes for applying liquids to surfaces 23 H01M 109 .8% 44.8% Processes or means, e.g. batteries 24 A01N 107 .8% 45.6% Preservation of bodies of humans or animals or plants 25 G01R 106 .7% 46.3% Measuring electric variables
Source: Delphion.com
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More than half of all company-owned Wisconsin patents (7,374 out of 14,208) belong to the top 50 patenting companies (Table 6-34). Of the total 7,380 patents assigned to the top 50 companies, 4,855 (65.8%) were assigned to 44 manufacturing companies, 2,097 (28.4%) to five non-manufacturing companies, and 428 (5.8%) to the Wisconsin Alumni Research Foundation (WARF). Most of the companies show their primary NAICS as manufacturing, although some non-manufacturing (mainly research or legal) entities are parts of large international corporations that have manufacturing divisions. Twenty-one out of these 50 companies listed their primary location as being in the state of Wisconsin. These 21 companies own 6,507 (about 20%) of all company-owned patents.
Table 6-34 Top 50 Patenting Companies, 2001-2011 Rank Companies City/State NAICS Frequency Percent Cumulative
Percent Total 14,208 100%
1 Kimberly-Clark Worldwide Inc. NEENAH, WI 3222 1,300 9.1% 9.1%
46 Quad/Graphics Inc. SUSSEX, WI 3231 35 .2% 51.0%
47 Cardiac Pacemakers Inc. ST. PAUL, MN 3345 34 .2% 51.2%
48 Diversey, Inc. STURTEVANT, WI 3256 34 .2% 51.5%
49 Johnson Outdoors Inc. RACINE, WI 3399 34 .2% 51.7%
50 Samsung Electronics Co. Ltd. SUWON, KOREA 3344 34 .2% 51.9% Source: Delphion.com Note: The names of manufacturing companies are identified with the following sources: Manta.com, Hoovers.com, Patentgenius.com, or Google search. Fifteen companies applied for more than 100 patents between 2001 and 2011:
o Kimberly-Clark Worldwide Inc. o 3M Innovative Properties Co. o General Electric Co. o Wisconsin Alumni Research Foundation (WARF) o Rockwell Automation Technologies Inc. o Illinois Tool Works Inc. o GE Medical Systems Global Technology Co. LLC o Monsanto Technology LLC o Abbott Laboratories o International Business Machines Corp. o Johnson Controls Technology Co. o Promega Corp. o Georgia-Pacific Consumer Products LP o Honeywell International Inc. o Harley-Davidson Motor Co. Inc.
WARF owns 428 patents and is a private and nonprofit supporting organization of the University of Wisconsin–Madison; it is one of the world's first university-based technology transfer offices. WARF
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promotes, encourages, and aids scientific investigation and research at the University of Wisconsin-Madison and the Morgridge Institute for Research.8 Of the total 33,214 patent applications, 6,507 (19.6%) were assigned to companies in Wisconsin. Thirty percent (1,922) of these patents were assigned to the top three WI companies: Kimberly-Clark Worldwide Inc., WARF, and GE Medical Systems Global Technology Co. LLC. Table 6-35 shows the top 15 Wisconsin companies with their top three IPC patenting codes.
Table 6-35 Top 15 Companies in WI and their top 3 IPC Codes, 2001-2011
Rank Company
IPC 1 IPC 2 IPC 3
Code (# of
Patents) Definition
Code (# of
Patents) Definition
Code (# of
Patents) Definition
1 Kimberly-Clark Worldwide Inc.
A61F (476)
Filters implantable into blood vessels; prostheses
A61K (68)
Preparations for medical, dental, or toilet purposes
B32B (63)
Layered products, i.e. products built-up of strata of flat or non-flat
2 Wisconsin Alumni
Research Foundation
A61K (146)
Preparations for medical, dental, or toilet purposes
Table 6-35 Top 15 Companies in WI and their top 3 IPC Codes, 2001-2011 (continued)
11 Third Wave Technologies, Inc.
C07H (22)
Sugars; Derivatives Thereof;
Nucleosides
C12Q (20)
Measuring Or Testing Processes Involving Enzymes
Or Micro-Organisms
C12N (12)
Micro-Organisms Or Enzymes
12 A. O. Smith Corp. H02K (42)
Dynamo-electric machines
H02P (12)
Control or regulation of
electric motors, generators, or
dynamo-electric converters
F04B (4)
Positive-displacement machines for liquids
13 Appleton Papers, Inc.
B41M (16)
Printing, duplicating, marking, or copying
processes
B32B (8) Layered products B01J
(7) Chemical or physical
processes
14 Snap-On Incorporated
G06F (21)
Electric digital data processing
G01B (10)
Measuring length, thickness or similar linear
dimension
B25B (6) Tools or bench devices
15 CMD Corp. B31B (29)
Making boxes, cartons, envelopes, or bags
B65B (6)
Machines, apparatus or devices for packaging
B65D (3)
Containers for storage or transport of articles
or materials
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6.3 Wisconsin Workforce This section examines workforce characteristics in Wisconsin, including education attainment, employment by sector, job characteristics specific to manufacturing, and state appropriations for colleges and financial aid.
6.3.1 Educational Attainment The 2009-2011 American Community Survey indicates there are 3.8 million people age 25 or older living in Wisconsin. Table 6-36 provides an idea of the workforce pipeline in each educational category. Disproportionately more (5.1 percentage points) Wisconsin adults age 25 and older have only a high school education than adults 25 and older in the nation as a whole. Compared to the nation, disproportionately fewer (-4.5 percentage points) Wisconsin adults failed to finish high school. Compared to the nation, a slightly higher proportion (1.8 percentage points) of Wisconsin adults have completed some postsecondary education or have an associates degree. Compared to the nation, a slightly lower proportion of Wisconsin adults have college degrees (-0.6 percentage points for bachelor’s degrees and -1.6 percentage points for graduate/professional degrees) (Table 6-36). When “high school/GED” and “less than high school” are combined into a single “low-attainment” category, the four-category distributions of educational attainment are similar for Wisconsin and the United States, with Wisconsin having a slightly higher proportion of low-attainment (0.6 percentage points) and middle attainment (1.5 percentage points) adults, and a slightly lower proportion of advanced-attainment (-0.6 percentage points) and high-attainment (-1.6 percentage points) adults (Table 6-36).
Table 6-36 Percent Distribution of Educational Attainment of WI and U.S. Adults (age 25 and older) United States Wisconsin Difference
Less than High School 14.4% 9.9% -4.5% High School/GED 28.4% 33.6% 5.1% Some college but no degree 21.3% 21.1% -0.2% Associates Degree 7.6% 9.4% 1.8% Bachelors Degree 17.7% 17.2% -0.6% Graduate/professional 10.5% 8.9% -1.6% Attainment Groupings Low-attainment 42.8% 43.4% 0.6% Middle-attainment 28.9% 30.5% 1.5% Advanced-attainment 17.7% 17.2% -0.6% High-attainment 10.5% 8.9% -1.6%
Notes: Low-attainment = high school/GED + less than high school
Middle-attainment = some postsecondary and associate degree but less than a bachelor's degree
Advanced-attainment = terminal bachelor's degrees
High-attainment = post-bachelor's, graduate and professional degrees
Source: 2009-2011 American Community Survey Integrated Public Use Microdata Series (3-year estimate)
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6.3.2 Wisconsin Employment by Sector The net change in the number of jobs varied significantly by sector, occupational skill level, and span of years. This section analyzes those changes, focusing on the period from 2000 through 2011, and, in some cases, the periods 2000 through 2008, and 2008 through 2011.9 Overall, the number of jobs in Wisconsin decreased by 2.6% (Table 6-37) from 2000 through 2011, from 2.95 million to 2.87 million (Table 6-38). This represents a decrease of about 78,000 positions, including an increase of about 41,000 jobs from 2000 through 2008, and a loss of about 118,000 jobs from 2008 through 2011. By sector (Table 6-38), from 2000 through 2011, manufacturing lost 150,000 jobs, and non-manufacturing lost 12,000 jobs. Government (which includes most K-12 education, as well as the public university and college system) gained 13,000 jobs, but this included about 19,000 jobs added in local government, 2,000 lost in state government, and 4,000 lost in federal government. Healthcare added about 71,000 jobs. In absolute numbers of jobs, from 2000 through 2011, the largest gain took place in low-skill healthcare jobs, where just fewer than 25,000 jobs (29.3%) were added. This included an addition of about 20,000 jobs from 2000 through 2008, and an additional gain of 5,000 jobs from 2008 through 2011. From 2000 through 2011, gains were also high in advanced-skill non-manufacturing, where almost 23,000 jobs (9.8%) were added. This included a net addition of about 30,000 jobs from 2000 through 2008 and a net loss of 7,000 jobs from 2008 through 2011. From 2000 through 2011, gains also were high in middle-skill healthcare, where almost 21,000 jobs (17.3%) were added. All but 240 of these jobs were added from 2000 through 2008. (Tables 6-37 and 6-38) In absolute numbers of jobs, from 2000 through 2011, the largest loss took place in gateway-skill manufacturing, where almost 60,000 jobs were lost. This included a net loss of 39,000 jobs from 2000 through 2008, and an additional loss of 21,000 jobs from 2008 through 2011. (Table 6-38) Overall, from 2000 through 2011, manufacturing as a sector experienced a large loss of nearly 25% of its positions. This included a 16.5% loss from 2000 through 2008 and an additional 10% loss from 2008 through 2011. (Table 6-37) For the Wisconsin economy as a whole from 2000 through 2011, growth occurred only within advanced-skill occupations. The net gain of more than 34,000 advanced-skill jobs included a gain of 23,000 non-manufacturing jobs, a gain of almost 15,000 healthcare jobs, a gain of 11,000 local government jobs, and a loss of 15,000 manufacturing jobs. The net gain of 34,000 advanced-skill jobs from 2000 through 2011 included a gain of almost 47,000 jobs from 2000 through 2008 and a loss of 13,000 jobs from 2008 through 2011. (Table 6-38)
9 Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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While the number of low-skill and gateway-skill jobs declined from 2000 through 2011, and also for each of the subperiods (2000 through 2008 and 2008 through 2011), middle-skill jobs grew by almost 18,000 from 2000 through 2008, but then declined by more than 36,000 from 2008 through 2011. (Table 6-38) The distribution of jobs by skill level changed somewhat in Wisconsin from 2000 through 2011, mainly marked by a shift in proportion from gateway to advanced-skill jobs. Low-skill occupations constituted 38.6% of all jobs in 2000 and 38.5% in 2011. Middle-skill occupations constituted 24.6% of all jobs in both years. Gateway-skill occupations fell from 19.2% of all jobs in 2000 to 17.6% through 2011. Advanced-skill occupations increased from 17.6% of all jobs in 2000 to 19.3% through 2011. (Table 6-39) Manufacturing jobs fell from 20.5% of all jobs in 2000 to 15.8% through 2011. Healthcare jobs grew by 2.7 percentage points, constituting 10.3% of all jobs in 2000 and 13.0% through 2011. (Table 6-39) 6.3.3 Analysis of Manufacturing Jobs In 2011, there were 454,000 manufacturing jobs in Wisconsin, down from 604,000 in 2000. About 254,000, or approximately 56%, of the manufacturing jobs are in production occupations, with most of those being nonsupervisory (Tables 6-40). Manufacturing in Wisconsin accounts for 52,000 jobs requiring advanced skills, and more than 72,000 of Wisconsin’s manufacturing workers hold bachelor’s or more advanced degrees. In terms of business functions within manufacturing establishments, 41,000 jobs are management; 27,000 jobs are involved in technical aspects, such as research, product development, and product testing; 44,000 jobs are in back-office support; and 28,000 jobs are in skilled trades and industrial maintenance. 10 About 25% of all manufacturing positions are low skill, and 39% are gateway positions (Table 6-41). 11
Notes for tables within this workforce section:
• Data from the U.S. Bureau of Labor Statistics’ Occupational Employment Statistics (OES) for 2008 were used to classify occupations by skill level.
o Low-skill occupations are those for which the OES assigns “short-term on-the-job training” as the dominant form of preparation.
o Gateway-skill occupations are those for which the OES assigns “moderate-term on-the-job training” as the dominant form of preparation. These can be viewed as the start of career ladders and can be gateways to middle-skill occupations.
o Middle-skill occupations are those for which the OES assigns “long-term on-the-job training,” “work experience in a related occupation,” “postsecondary vocational award,” or “associate degree” as the dominant form of preparation.
10 Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008). 11 Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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o Advanced-skill occupations are those for which the OES assigns “bachelor’s degree,” “bachelor’s degree or higher, plus work experience,” “master’s degree,” “doctoral degree,” or “first professional degree” as the dominant form of preparation.
Manufacturing
• For this analysis, manufacturing includes all employment in the manufacturing industry (NAICS 31-33), plus production workers in the following three industries: Warehouse & Storage (NAICS 493), Management of Companies & Enterprises (NAICS 5511), and Employment Services (NAICS 5613). Non-Manufacturing
• For this analysis, non-manufacturing includes everything not elsewhere broken out in the table: manufacturing, federal, state, and local government, and health.
Educational Attainment Categories
• Low-attainment represents high school/GED and less than high school. • Middle-attainment represents some postsecondary and associate degree but less than a
bachelor's degree. • Advanced-attainment represents terminal bachelor's degrees. • High-attainment represents post-bachelor's, graduate and professional degrees.
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Table 6-37 Percentage Change in the Number of Jobs by Sector and Skill Level, 2000-2011 Percentage Change Occupational Skill level 2000 through 2011 Low Gateway Middle Advanced Total by sector
Manufacturing -25.7 -25.0 -24.5 -22.8 -24.8 Non-Manufacturing -2.1 -4.7 -2.1 9.8 -0.7 Federal Government -28.6 -15.8 12.8 -4.8 -11.1 State Government -9.8 -7.0 -2.9 3.7 -2.0 Local Government 4.6 1.5 7.4 9.5 6.7 Health 29.3 25.3 17.3 27.2 23.6 Total by skill level -2.9 -10.7 -2.5 6.6 -2.6
Percentage Change Occupational Skill level 2000 through 2006 Low Gateway Middle Advanced Total by sector
Manufacturing -13.6 -14.3 -14.9 -16.1 -14.5 Non-Manufacturing 2.7 2.9 3.9 4.5 3.3 Federal Government -10.6 -10.6 -10.6 -10.6 -10.6 State Government 5.2 5.2 5.2 5.2 5.2 Local Government 2.7 2.7 2.7 2.7 2.7 Health 18.6 18.7 14.1 19.3 16.9 Total by skill level 1.6 -3.2 1.6 2.7 0.9
Percentage Change Occupational Skill level 2006 through 2008 Low Gateway Middle Advanced Total by sector
Manufacturing -5.9 -2.2 -1.1 2.8 -2.4 Non-Manufacturing -1.5 -0.2 0.3 7.9 0.4 Federal Government -18.3 -3.7 28.9 8.9 1.7 State Government -7.3 -4.4 -0.2 6.6 0.7 Local Government -0.3 -3.2 2.4 4.5 1.8 Health 4.5 4.8 2.7 4.8 3.9 Total by skill level -1.7 -0.9 0.9 6.1 0.5
Percentage Change Occupational Skill level 2000 through 2008 Low Gateway Middle Advanced Total by sector
Manufacturing -18.8 -16.2 -15.9 -13.8 -16.5 Non-Manufacturing 1.1 2.7 4.2 12.7 3.7 Federal Government -27.0 -13.9 15.3 -2.6 -9.1 State Government -2.5 0.6 5.0 12.1 5.9 Local Government 2.4 -0.5 5.2 7.3 4.6 Health 24.0 24.3 17.1 25.1 21.5 Total by skill level -0.1 -4.1 2.5 9.0 1.4
Percentage Change Occupational Skill level 2008 through 2011 Low Gateway Middle Advanced Total by sector
Manufacturing -8.6 -10.5 -10.2 -10.4 -10.0 Non-Manufacturing -3.2 -7.2 -6.0 -2.6 -4.3 Federal Government -2.2 -2.2 -2.2 -2.2 -2.2 State Government -7.5 -7.5 -7.5 -7.5 -7.5 Local Government 2.1 2.1 2.1 2.1 2.1 Health 4.3 0.8 0.2 1.7 1.7 Total by skill level -2.8 -7.0 -4.9 -2.2 -4.0
Sources: Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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Table 6-38 Jobs in Wisconsin by Sector and Occupational Skill Level, 2000, 2006, 2008, & 2011 Year: 2000 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 150,893 238,708 147,860 66,948 604,408 Non-Manufacturing 804,004 224,978 371,621 232,331 1,632,934 Federal Government 13,026 3,173 7,600 9,724 33,523 State Government 16,046 16,065 20,903 38,588 91,602 Local Government 68,596 39,974 56,171 116,451 281,192 Health 84,877 42,091 121,165 53,935 302,068 Total by skill level 1,137,443 564,988 725,320 517,975 2,945,727 Year: 2006 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 130,324 204,609 125,852 56,142 516,927 Non-Manufacturing 825,681 231,555 386,120 242,718 1,686,075 Federal Government 11,644 2,836 6,794 8,692 29,967 State Government 16,875 16,895 21,982 40,580 96,332 Local Government 70,469 41,065 57,705 119,630 288,869 Health 100,661 49,943 138,211 64,349 353,165 Total by skill level 1,155,655 546,903 736,665 532,112 2,971,335 Year: 2008 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 122,584 200,012 124,412 57,696 504,705 Non-Manufacturing 813,030 231,080 387,214 261,856 1,693,180 Federal Government 9,510 2,730 8,760 9,468 30,469 State Government 15,641 16,154 21,941 43,250 96,985 Local Government 70,266 39,759 59,082 124,978 294,085 Health 105,225 52,318 141,901 67,457 366,901 Total by skill level 1,136,255 542,055 743,311 564,705 2,986,325 Year: 2011 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 112,058 178,927 111,666 51,690 454,341 Non-Manufacturing 787,351 214,399 363,932 255,013 1,620,695 Federal Government 9,302 2,671 8,569 9,262 29,804 State Government 14,472 14,947 20,302 40,019 89,740 Local Government 71,720 40,582 60,305 127,564 300,170 Health 109,774 52,729 142,141 68,596 373,240 Total by skill level 1,104,677 504,254 706,915 552,143 2,867,990
Sources: Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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Table 6-39 Percent distribution of jobs in Wisconsin by Sector and Occupational skill level, 2000, 2006, 2008, 2011
Year: 2000 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 5.1 8.1 5.0 2.3 20.5 Non-Manufacturing 27.3 7.6 12.6 7.9 55.4 Federal Government 0.4 0.1 0.3 0.3 1.1 State Government 0.5 0.5 0.7 1.3 3.1 Local Government 2.3 1.4 1.9 4.0 9.5 Health 2.9 1.4 4.1 1.8 10.3 Total by skill level 38.6 19.2 24.6 17.6 100.0 Year: 2006 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 4.4 6.9 4.2 1.9 17.4 Non-Manufacturing 27.8 7.8 13.0 8.2 56.7 Federal Government 0.4 0.1 0.2 0.3 1.0 State Government 0.6 0.6 0.7 1.4 3.2 Local Government 2.4 1.4 1.9 4.0 9.7 Health 3.4 1.7 4.7 2.2 11.9 Total by skill level 38.9 18.4 24.8 17.9 100.0 Year: 2008 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 4.1 6.7 4.2 1.9 16.9 Non-Manufacturing 27.2 7.7 13.0 8.8 56.7 Federal Government 0.3 0.1 0.3 0.3 1.0 State Government 0.5 0.5 0.7 1.4 3.2 Local Government 2.4 1.3 2.0 4.2 9.8 Health 3.5 1.8 4.8 2.3 12.3 Total by skill level 38.0 18.2 24.9 18.9 100.0 Year: 2011 Occupational skill level Low Gateway Middle Advanced Total by sector Manufacturing 3.9 6.2 3.9 1.8 15.8 Non-Manufacturing 27.5 7.5 12.7 8.9 56.5 Federal Government 0.3 0.1 0.3 0.3 1.0 State Government 0.5 0.5 0.7 1.4 3.1 Local Government 2.5 1.4 2.1 4.4 10.5 Health 3.8 1.8 5.0 2.4 13.0 Total by skill level 38.5 17.6 24.6 19.3 100.0
Sources: Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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Table 6-40 Number of Manufacturing Jobs in Wisconsin by Occupational Skill Category and Level of Educational Attainment, 2011
SOC* Total Skill Category Level of Educational Attainment Code Employment Low Gateway Middle Advanced Low Middle Advanced High
Total Number of Manufacturing Jobs 454,341 112,058 178,927 111,666 51,690 254,332 127,818 54,044 18,146
* SOC represents Standard Occupational Classification, http://www.bls.gov/SOC/ ** Other support occupations consists of SOCs 21, 25, 29, 31, and 39 *** Supervisors from 3 industries: Management of Companies & Enterprises (5511), Temporary Staffing (5613), Warehousing & Storage (493) **** Nonsupervisory production occupations consist of SOCs 51-2000 through 51-9000 ***** Production workers from 3 industries: Management of Companies & Enterprises (5511), Temporary Staffing (5613), Warehousing & Storage (493) ****** Buildings and grounds occupations are SOCs 33,35, 37, 45
Sources: Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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Table 6-41 Percentage Breakdown of Skill and Educational Composition of Wisconsin's Manufacturing Occupations, 2011
SOC* Total Skill Category Level of Educational Attainment Code Employment Low Gateway Middle Advanced Low Middle Advanced High
Total Number of Manufacturing Jobs 100.0 24.7 39.4 24.6 11.4 56.0 28.1 11.9 4.0
* SOC represents Standard Occupational Classification, http://www.bls.gov/SOC/ ** Other support occupations consists of SOCs 21, 25, 29, 31, and 39 *** Supervisors from 3 industries: Management of Companies & Enterprises (5511), Temporary Staffing (5613), Warehousing & Storage (493) **** Nonsupervisory production occupations consist of SOCs 51-2000 through 51-9000 ***** Production workers from 3 industries: Management of Companies & Enterprises (5511), Temporary Staffing (5613), Warehousing & Storage (493) ****** Buildings and grounds occupations are SOCs 33,35, 37, 45
Sources: Moody’s Economy.com (March 2011), U.S. Bureau of Labor Statistics Occupation Employment Statistics national industry by occupation matrix (2004 and 2009), U.S. Bureau of Labor Statistics Education and training measurements for workers 25 years and older by detailed occupation (2008).
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6.3.4 Higher Education Appropriations For fiscal year 2013, Wisconsin appropriations for colleges and financial aid per capita were $206.55, lower than the U.S. average of $229.72, according to the Grapevine survey compiled by researchers at Illinois State University and the State Higher Education Executive Officers (Table 6-42). Wisconsin’s FY2013 per capita figure was lower than five of the eight competing states. Wisconsin appropriations for colleges and financial aid increased 2.5% compared to the previous fiscal year. The increase in Wisconsin appropriations was higher than the overall U.S. one-year change (-0.2%) and higher than five of the eight competitive states. Wisconsin ranked 16th in the United States for one-year change, and 17th for five-year change. Over the past five years, Wisconsin’s spending decreased 4.8%, but decreased less than five of eight competing states.12
Table 6-42 Wisconsin and Eight Competitive States — Appropriations for Colleges and Financial Aid, FY201313
Illinois State University and the State Higher Education Executive Officers
12 Grapevine, Center for the Study of Education Policy, Illinois State University and the State Higher Education Executive Officers. 13 FY2013 figures on state support for higher education represent initial allocations and estimates reported by the states from September through December 2012 and are subject to change. State monies include state tax appropriations and other state funds allocated to higher education.
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6.4 Wisconsin Manufacturing Growth Strategies
All but one driver industry in Wisconsin is in the Manufacturing economic sector. Because of this, a deeper look at manufacturing — particularly strategies necessary to drive growth into the next generation — is helpful to understanding the overall business climate in Wisconsin and how manufacturers can compete nationally and globally. The Next Generation Manufacturing (NGM) Study was developed to identify performances and practices in place among U.S. manufacturers, to determine how much progress U.S. manufacturers have made in implementing Next Generation strategies, and to measure manufacturers’ progress toward achieving world-class status in the 21st century. The initial NGM Study in 2009 was based on a study done by the Manufacturing Performance Institute, a unit of The MPI Group (MPI), with the Wisconsin Manufacturing Extension Partnership among Wisconsin manufacturers; the study was repeated nationally, including in Wisconsin, in 2011. In 2011, the NGM Study was conducted by MPI with the American Small Manufacturers Coalition (ASMC), an association of manufacturing extension centers that works to improve the innovation and productivity of America’s manufacturing community. One ASMC program of primary focus is the National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) program. MPI, ASMC, and MEPs across the country promoted the NGM Study. Analysis and findings from the 2011 NGM Study focused primarily on awareness, best practices, and achievements related to six key next-generation strategies because world-class capabilities in these strategies will drive manufacturing growth and profitability into the 21st century: • Customer-focused innovation: Develop, make, and market new products and services that meet
customers’ needs at a pace faster than the competition. • Engaged people/human capital acquisition, development and retention: Secure a competitive
performance advantage by having superior systems in place to recruit, hire, develop, and retain talent.
• Superior processes/improvement focus: Record annual productivity and quality gains that exceed the competition through a companywide commitment to continuous improvement.
• Supply-chain management and collaboration: Develop and manage supply chains and partnerships that provide flexibility, response time, and delivery performance that exceed the competition.
• Sustainability: Design and implement waste and energy-use reductions at a level that provides superior cost performance and recognizable customer value.
• Global engagement: Secure business advantages by having people, partnerships, and systems in place capable of engaging global markets and talents better than the competition.
The NGM Study results offer a “scorecard” for U.S. manufacturers by which to measure progress in defining strategies within their organizations, implementing best practices to support those strategies, and then achieving performance improvements that can move them into the next generation. A key step in any manufacturing improvement initiative is to benchmark and compare performances; the NGM Study provides these benchmarks. This section of the Wisconsin Economic Future Study examines key NGM Study findings on Wisconsin manufacturers compared to U.S. manufacturers.14 14 95 Wisconsin manufacturers; 824 national manufacturers
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6.4.1 NGM Strategy Importance and Execution It’s encouraging that some Wisconsin manufacturers have already adopted some or most of the NGM strategies. But many other manufacturers still face an “execution gap” between their good intentions (understanding the importance of NGM strategies) and their ability to implement those strategies. Worse off still are a small group of Wisconsin manufacturers that haven’t yet recognized the critical importance of the NGM strategies. Most Wisconsin manufacturers recognize the importance of the NGM strategies (rated 4 or 5 on a scale of 1-5 where 5 equals highly important) to their business success, and, with the exception of global engagement, a higher percentage of Wisconsin manufacturers recognize the importance of the strategies (Table 6-43). For example, 92% of Wisconsin manufacturers rate process improvement as highly important or important vs. 87% of U.S. manufacturers.
Table 6-43 Strategy Importance to Organization Success Over the Next Five Years (% of manufacturers rated 4 or 5 on a scale of 1-5 where 5= highly important)
Wisconsin National
Process improvement 91.6% 86.6%
Human-capital management 88.4% 77.7%
Customer-focused innovation 86.3% 84.0%
Supply-chain management 76.3% 72.2%
Sustainability 67.4% 59.2%
Global engagement 41.5% 50.4%
Many Wisconsin manufacturers are progressing toward world-class status with individual NGM strategies (rated 4 or 5 on a scale of 1-5 where 5 equals world-class), but there is a large execution gap — the difference between the percentage of Wisconsin firms that recognize the importance of a particular NGM strategy and the percentage of firms near or at world-class status in that strategy. For example, 76% of Wisconsin manufacturers recognize supply-chain management as important or highly important, but only 33% of Wisconsin manufacturers are near or at world-class status in supply-chain management (Table 6-44). The execution gap represents a substantial barrier to long-term success for Wisconsin manufacturing.
Table 6-44 Organization Progress Toward World-class Status (% of manufacturers rated 4 or 5 on a scale of 1-5 where 5= world-class)
Wisconsin National
Process improvement 53.7% 42.7%
Customer-focused innovation 48.4% 43.2%
Human-capital management 33.0% 30.4%
Supply-chain management 33.0% 29.4%
Sustainability 32.6% 27.5%
Global engagement 17.9% 25.3%
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6.4.2 Key NGM Success Factors Many Wisconsin manufacturers, like manufacturers across the country, lack key success factors — talented people, business systems and equipment, company-specific strategy — necessary to achieve next-generation success, and, because of this, they face competitive disadvantages: Talent and development programs: Sufficient leadership and talent is in place to drive world-class process improvement for NGM strategies at most Wisconsin manufacturers, but very few firms report having both sufficient talent and development programs to grow leadership and talent (Table 6-45). For example, to drive customer-focused innovation, 25% have both sufficient leadership and talent and development programs; 38% have sufficient talent and leadership but lack leadership programs; 20% have development programs but lack leadership and talent; and 17% lack both leadership and talent and development programs.
Table 6-45 Sufficient Talent and Development Program in Place to Drive NGM Strategy (% of manufacturers)
Wisconsin National
Human-capital management 27.4% 18.5%
Process improvement 26.3% 24.9%
Customer-focused innovation 25.3% 23.6%
Sustainability 16.0% 13.9%
Supply-chain management 13.7% 14.7%
Global engagement 12.9% 15.2%
Business systems and equipment: Most Wisconsin manufacturers have business systems and equipment to support “current requirements” for NGM strategies, but only a small percentage of manufacturers describe their tools as “state-of-the-art” and capable of providing long-term support for NGM strategies (Table 6-46). For example, 15% of Wisconsin manufacturers have state-of-the-art business systems and equipment to support supply-chain management long-term, but 5% have no business equipment and systems; 21% have systems inadequate for current requirements; and 59% have adequate systems for current requirements.
Table 6-46 State-of-the-Art Business Systems and Equipment to Support NGM Long-term Strategy (% of manufacturers)
Wisconsin National
Customer-focused innovation 26.3% 17.8%
Process improvement 20.2% 13.5%
Supply-chain management 14.7% 10.9%
Human-capital management 12.6% 9.2%
Sustainability 12.6% 7.6%
Global engagement 8.7% 8.3%
Company-specific strategy: NGM success is predicated on an organization developing a strategy specific to itself, with workforce buy-in and involvement. Yet a surprisingly high percentage of Wisconsin manufacturers have either a generic strategy or no strategy at all for the six NGM areas (Table 6-47). For example, 16% of Wisconsin manufacturers have a company-specific strategy for human-capital
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management with full functional involvement and buy-in; 47% have a company-specific strategy for human-capital management with some functional involvement and buy-in; 27% have a generic strategy with little functional involvement or buy-in; and 10% have no human-capital management strategy.
Table 6-47 Generic or No NGM Strategy (% of manufacturers)
Wisconsin National
Global engagement 60.0% 55.3%
Sustainability 43.2% 52.8%
Supply-chain management 37.9% 42.0%
Human-capital management 37.2% 43.7%
Customer-focused innovation 23.2% 28.3%
Process improvement 17.9% 26.8%
6.4.3 Key NGM Performances The NGM Study asked manufacturers to report on inputs to their successes, such as those mentioned, and it also sought to identify outputs that may correlate with these efforts. The following are key performances across the six strategies and the percentage of Wisconsin manufacturers achieving those levels of performance (Table 6-48):
Table 6-48 Generic or No NGM Strategy (% of manufacturers)
Strategy Performance Wisconsin National
Customer-focused innovation >25% of R&D is commercialized 33.0% 29.9%
Human-capital management Value-added per employee of >$125,000 33.3% 28.0%
Process improvement Three-year productivity improvement of >50% 24.2% 20.1%
Supply-chain management Three-year reduction in total value of inventory in supply chain of >25% 19.2% 15.7%
Sustainability Annual reduction in energy per unit of product output >10% 19.1% 18.8%
Global engagement >25% increase in non-U.S. sales volume over past three years 20.2% 20.7%
6.4.4 Generational Leadership and Outside Support Transformation to a Next Generation Manufacturing model requires leadership consistency in the face of competition — yet a majority of Wisconsin manufacturing firms anticipate a possible change in leadership within the next five years: • 25% anticipate a planned succession (vs. 30% nationwide), and • 31% report a succession is possible (vs. 29% nationwide). The percentage of manufacturers nationwide reporting a succession or possible succession has risen by approximately 5 percentage points since 2009. Among manufacturers with older executives, the likelihood of succession is even higher. As aging baby boomers reach retirement age, a next generation
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of leadership will take their place; their actions — or lack thereof — will determine the fates of thousands of firms. Even when leadership is securely in place, manufacturers — whether small or large — routinely seek external support from outside organizations. A majority of Wisconsin manufacturers are most likely to seek support — ongoing or as needed — for workforce development skills, operations improvements, strategic planning, regulatory/compliance issues, business development, and innovation/R&D (Table 6-49). A majority of Wisconsin manufacturers report their organizations have been positively impacted by industry associations, state manufacturing associations (including Manufacturing Extension Partnerships), and consulting firms.
Table 6-49 Outside Support — Ongoing or as Needed (% of manufacturers)
Wisconsin National
Workforce skills development 76.8% 63.9%
Operations improvement (e.g., lean) 69.5% 64.2%
Strategic planning 66.3% 51.8%
Regulatory/compliance issues 64.2% 66.9%
Business development 59.6% 52.2%
Innovation/R&D 54.7% 51.8%
Supply-chain development 40.2% 37.3%
Government credits/grants 39.4% 43.4%
Sustainability initiatives 35.9% 33.7%
Global sales and/or procurement 35.1% 35.5% 6.4.5 NGM Conclusion and Profile Characteristics of NGM Manufacturers The Next Generation Manufacturing (NGM) Study provides a path for manufacturers to achieve success in the next generation, offering: • Strategies that can help them capture competitive advantages • Best practices to support execution of those strategies • Performance goals against which to measure their progress
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Table 6-50 shows key profile characteristics of the NGM Study Wisconsin and national participants:
Table 6-50 Key NGM Profile Characteristics
Wisconsin National
Private company (% of manufacturers) 94.7% 87.1%
Fabricated metal manufacturer or machinery manufacturer — two largest NGM industries (% of manufacturers) 37.9% 34.2%
Years in operation (average) 49 years 44 years
Years in operation (median) 40 years 36 years
Number of full-time employees and equivalents (average) 286 employees 595 employees
Number of full-time employees and equivalents (median) 89 employees 60 employees
6.5 Business Climate Factors There are myriad means by which to evaluate the business climate in Wisconsin, with some factors more likely to affect some companies than others. For example, technology-intensive industries may be more dependent upon skilled workforces, proximity to higher education, and access to credits and support programs that drive innovation. Commodity makers, on the other hand, may look to the efficiency and quality of a state’s transportation infrastructure. This section examines rankings of Wisconsin’s business climate. 6.5.1 Overall Business Competitiveness The news organization CNBC scored all 50 states on 51 measures of competitiveness developed with input from business groups including the National Association of Manufacturers and the Council on Competitiveness. Points were awarded to each state on the 51 measures, and then grouped into 10 categories, weighted based on how frequently the topics are cited in state economic development marketing materials (total 2,500 points). Wisconsin ranked 17th among the 50 states in CNBC’s “America’s Top States for Business 2012” and by category (weighted points shown) was ranked as follows:
• Cost of business (350 points) — 15th • Workforce (350 points) — 43rd • Quality of life (350 points) — 14th • Economy (325 points) — 34th • Infrastructure and transportation (325 points) — 6th • Technology and innovation (225 points) — 20th • Education (225 points) — 10th • Business friendliness (200 points) — 27th • Access to capital (100 points) — 27th • Cost of living (50 points) — 23rd15
Wisconsin’s overall business climate ranks in the middle of the pack when compared to the eight competitive states identified for this report (Table 6-51).
Table 6-51 Wisconsin and Eight Competitive States — America’s Top States for Business 2012 Ranking
Georgia 9th
Illinois 26th
Indiana 14th
Michigan 33rd
Minnesota 11th
North Carolina 4th
Ohio 25th
Pennsylvania 30th
Wisconsin 17th America’s Top States for Business 2012, CNBC
15 “America’s Top States for Business 2012,” CNBC, July 10, 2012.
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Highlighting the systemic biases and vagaries of any state rankings, similar “best” scorecards appear from Forbes magazine and Site Selection magazine. Forbes’s “Best States for Business” ranked Wisconsin 42nd in the nation. The Forbes rankings measure six categories for businesses: costs, labor supply, regulatory environment, current economic climate, growth prospects, and quality of life, and the publication factors in 35 points of data to determine the ranks in the six main areas.
Wisconsin’s business climate ranks below all but Michigan among the eight competitive states identified for this report (Table 6-52).
Table 6-52 Wisconsin and Eight Competitive States — Best States for Business Ranking
Georgia 8th
Illinois 38th
Indiana 18th
Michigan 47th
Minnesota 20th
North Carolina 4th
Ohio 31st
Pennsylvania 30th
Wisconsin 42nd Best States for Business, Forbes
Site Selection’s “Top 2012 State Business Climate Rankings” had Wisconsin pegged at 13th in the nation. The rankings are based 50% on a survey of corporate site selectors and 50% on five other criteria, three of which require states to demonstrate a strong record of attracting capital investment. Wisconsin’s national rank for these areas are:
16 “Best States for Business,” Forbes, Dec. 12, 2012. 17 Mark Arend, “Competition is Fun,” Top 2012 State Business Climate Rankings, Site Selection, November 2012.
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Two competing states, North Carolina and Ohio, topped the Site Selection list (Table 6-53).
Table 6-53 Wisconsin and Eight Competitive States — Site Selection’s Top 2012 State Business Climate Rankings
Ranking
Georgia 4th
Illinois n/a
Indiana 12th
Michigan 23rd
Minnesota n/a
North Carolina 1st
Ohio 2nd
Pennsylvania n/a
Wisconsin 13th Top 2012 State Business Climate Rankings, Site Selection
6.5.2 Taxes and Competitiveness The nonprofit Tax Foundation measures how each state’s tax laws affect economic performance with the 2013 State Tax Business Climate Index. The widely recognized Index is a relative, hierarchical structure compiled from five weighted tax measures — individual income tax (33.1% weight), sales tax (21.5% weight), corporate income tax (20.1% weight), property tax (14% weight), and unemployment insurance tax (11.4% weight) — with states assigned a rating (0=worst and 10=best) in each. Each component consists of multiple variables, 118 variables in all, and is based on taxes in place on July 1, 2012. 18 The Tax Foundation’s 2013 State Tax Business Climate Index ranked Wisconsin 43rd among all states and Washington, D.C., the same as in the 2012 Index and down from a rank of 41st in the 2011 Index. The state’s 2013 rank by each of the five components is as follows, with a No. 1 ranking indicating the best state climate:
• Income tax — 32nd (unchanged from 2012 rank) • Sales tax — 46th (down one rank from 2012) • Corporate income tax — 15th (up on rank from 2012) • Property tax — 33rd (unchanged from 2012 rank) • Unemployment insurance tax — 23rd (down two ranks from 2012) 19
18 Scott Drenkard and Joseph Henchman, 2013 State Business Tax Climate Index, Tax Foundation, October 2012, http://taxfoundation.org/article/2013-state-business-tax-climate-index 19 Ibid.
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Wisconsin’s tax climate ranks near the bottom of the eight competitive states identified for this report (Table 6-54).
Table 6-54 Wisconsin and Eight Competitive States — 2013 State Tax Business Climate Index Ranking
Georgia 34th
Illinois 29th
Indiana 11th
Michigan 12th
Minnesota 45th
North Carolina 44th
Ohio 39th
Pennsylvania 19th
Wisconsin 43rd 2013 State Tax Business Climate Index, Tax Foundation
In 2010 the Milwaukee news organization Journal Sentinel published an analysis of U.S. Census data that ranked states on how they collect taxes and measure up nationally on tax burden, government spending, and user fees. The Journal Sentinel concluded that Wisconsin was a “medium spender, heavy taxer.” Table 6-55 shows the rank of Wisconsin compared to the eight competitive states on six tax and spend criteria, with a No. 1 rank indicating highest taxes or spending:
• Spending per capita: total state and local government spending spread over Wisconsin's population.
• Spending burden: total state and local government spending as share of total state personal income.
• Tax burden per capita: total tax collections spread over population. • Tax burden on income: bite that all taxes take out of state's total personal income. • Tax reliance: taxes as a share of overall (non-federal) revenue. • Fee reliance: fees as a share of overall (non-federal) revenue. 20
20 Bill Schultz, “Tax Tale: 50-state comparison,” Journal Sentinel, April 10, 2010
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Table 6-55 Wisconsin and Eight Competitive States — Tax and Spend Criteria
6.5.3 Broadband Coverage Many residents in Wisconsin experience near real-time, online streaming of music and movies, made possible by broadband access to their homes. For businesses, broadband enables a multitude of high-speed, outward-facing online activities (online company information, marketing, selling) and internal activities (data exchange within company and with customers and suppliers). But while many consumers and businesses take fast Internet connectivity for granted, portions of the Wisconsin economy still lack high-speed broadband service. According to the National Broadband Map, Wisconsin broadband covers 96.2% of its population and ranked 41st among the 50 states, Washington D.C., and five U.S. territories, based on download speed greater than 3 Mbps and upload greater than 0.768 Mbps. In addition, 6.3% of Wisconsin has no access to a wired broadband provider (e.g., providers of DSL, cable, copper, or fiber), compared to 3.5% nationwide.21
21 The National Broadband Map is a tool to search, analyze, and map broadband availability across the United States. Created and maintained by the NTIA, in collaboration with the FCC, and in partnership with 50 states, five territories and the District of Columbia. Data as of June 30, 2012 and represents data collected by State Broadband Data and Development (SBDD) grantees.
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Wisconsin’s broadband coverage of population ranked last among the eight competitive states identified for this report (Table 6-56).
Table 6-56 Wisconsin and Eight Competitive States — Broadband Coverage Ranking
Georgia 29th
Illinois 15th
Indiana 31st
Michigan 28th
Minnesota 30th
North Carolina 27th
Ohio 19th
Pennsylvania 11th
Wisconsin 41st National Broadband Map
6.5.4 Healthcare Healthcare is a volatile and critical issue across the country, affecting every individual and every business. The Affordable Care Act focused even more attention on the cost and quality of U.S. healthcare. Quality and cost of care, and, more important, the value of healthcare (quality and cost received by a patient per service) help to illustrate the impact of healthcare on a population. Healthcare organizations in Wisconsin, as part of the Wisconsin Health Information Organization, are on the nation’s forefront in monitoring and presenting such statistics in order to improve the quality, cost, and value of healthcare. Wisconsin and nationwide quality and cost measures include:
• Two measures of healthcare quality, albeit insufficient on their own, are life expectancy at birth (79.3 years in Wisconsin vs. 78.6 years for the United States)22 and the infant mortality rate per 1,000 live births (6.92 in Wisconsin in 2008 vs. 6.61 for the United States).23
• Healthcare expenditures per capita by state of residence for Wisconsin were $7,233 in 2009,
the most recent year for the findings at the time this report was compiled, compared to $6,815 for the United States. Healthcare expenditures measure spending for all privately and publicly funded personal health care services and products (hospital care, physician services, nursing home care, prescription drugs, etc.) by state of residence. Hospital spending is included and reflects total net revenue (gross charges less contractual adjustments, bad debts, and charity care). Costs such as insurance program administration, research, and construction expenses are not included in this total.24
22 Measure of America, 2010-2011, American Human Development Project, November 2010. 23 T.J. Matthews and Marian MacDorman, “Infant Mortality Statistics from the 2008 Period,” Linked Birth/Death Data Set, National Vital Statistics Report, May 10, 2012. 24 Centers for Medicare & Medicaid Services, Health Expenditures by State of Residence 1991-2009, 2011.
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Wisconsin had the 17th highest per capita healthcare spending in the nation in 2009 and the third highest spending among the eight competitive states (Table 6-57).25
Table 6-57 Wisconsin and Eight Competitive States —
Healthcare Expenditures per Capita by State of Residence, 2009 Ranking United States $6,815
Georgia 49th $5,467
Illinois 29th $6,756
Indiana 30th $6,666
Michigan 33rd $6,618
Minnesota 16th $7,409
North Carolina 38th $6,444
Ohio 19th $7,076
Pennsylvania 11th $7,730
Wisconsin 17th $7,233 Centers for Medicare & Medicaid Services, Health Expenditures by State of Residence.
25 Centers for Medicare & Medicaid Services, Health Expenditures by State of Residence 1991-2009, 2011.
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6.6 Wisconsin Challenges and Issues Many of the issues identified throughout this chapter were also voiced by Wisconsin business executives during a series of business roundtables across the state. These events provided insights into business struggles as executives work to sustain and grow lasting enterprises. Executives stated their opinions about state barriers to their organization’s growth. Roundtables were moderated by The MPI Group CEO John Brandt. This section also includes further analysis of study findings elsewhere in this report, secondary research on Wisconsin business, and the experiences of the research team in dealing with business executives in Wisconsin. 6.6.1 Workforce One of the biggest issues among Wisconsin business executives, especially in manufacturing industries, is a skills gap (both real and perceived), particularly for trades such as machinist, welding, tool and die, etc. Some evidence of this can be found in the nature of the workforce section 6.4 of this report, in which the education attainment levels of Wisconsin adults is assessed: persons with post-bachelor, graduate, and professional degrees make up 8.9% of Wisconsin adults 25 years and older vs. 10.5% in the United States, and disproportionately more Wisconsin adults (5.1 percentage points) have a high school education than the population of the nation as a whole. 26 Similarly, NGM Study data finds that many manufacturers lack leadership talent and employee-development programs that can help them elevate skills levels. Other reasons for skills gaps in the state, especially within manufacturing-centric driver industries, are complex and have evolved over time:
• Movement in the 1980s away from manufacturing training and skills and toward more advanced educational opportunities.
• Increased application of technology and automation to once manual operations in manufacturing and other areas, thereby increasing the technical capabilities required to work in these environments — a business condition may not be adequately identified by public educators.
• Perception among the potential workforce that even if they are interested in manufacturing fields (which constitute 36 of 37 driver industries in the state), the resources do not readily exist for individuals to get the training they need and/or that they will not find gainful employment in manufacturing once equipped with skills.
Public and private programs must continue to change the narrative they present to the public around manufacturing and other employment opportunities in the state, repeatedly redefining how these fields are perceived by job candidates as well as those contemplating higher education (i.e., manufacturing can provide both rewarding careers to individuals and increased value to businesses and their communities). This will require further collaboration and mobilization of all parties involved — educators, business executives, students, government agencies, etc. — to create a more realistic perspective of employment opportunities and skills required and to steadily reduce labor-skills gap in the state by doing so. The importance of this effort will increase as the knowledge base in these fields approaches retirement, which will create opportunities to develop a new generation of skilled workers.
26 2009-2011 American Community Survey Integrated Public Use Microdata Series (3-year estimate).
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6.6.2 Global Competitors Wisconsin businesses that drive the economy — i.e., those selling outside of Wisconsin — recognize that they compete in global marketplaces. This shows up as Wisconsin businesses compete against foreign companies that attempt to take away in-state and domestic sales as well as when Wisconsin businesses attempt to grow sales beyond U.S. borders. Even if a Wisconsin business does not believe it can cost-effectively sell goods around the world, most it will likely encounter foreign competition at home. Wisconsin companies that can compete globally will have a key advantage at a unique moment in U.S. business. Onshoring of goods back to U.S. facilities is increasing due to favorable total cost structures: e.g., low-cost-country labor, such as in China, is no longer so inexpensive; logistics costs to bring finished goods in from overseas continue to rise; and businesses increasingly recognize the negative tangible and intangible impacts on their businesses from offshoring (poor product quality; delays; eroding customer satisfaction; loss of intellectual property; costs to man, train, and monitor foreign staffs; etc.). In addition, U.S. manufacturers of some goods are now considered, due to productivity improvements, to hold a cost advantage against goods from other developed nations, such as the EU, meaning that the U.S. (and Wisconsin) are seen as attractive sources for import goods. According to the Wisconsin Economic Development Corporation, the state was on track in 2012 to export its highest ever dollars sales of goods. Other measures of global competitiveness include the export findings in section 6.1, which demonstrate that certain Wisconsin driver industries grouped at a 3-digit NAICS level are among the nation’s leaders in capturing overseas sales based on a percentage of U.S. exports (Printing and Related Support Activities export performance ranked third nationally and Machinery Manufacturing ranked fifth). Other driver groupings are less export-oriented (Primary Metal Manufacturing ranked 32nd and Chemical Manufacturing ranked 28th). But Wisconsin business must consider and plan for global engagement before succeeding globally; according to the NGM Study, 37% of Wisconsin manufacturers have no strategy for global engagement. Lora Klenke, vice president of International Business Development at WEDC, in November 2012 announced a $661,087 State Trade and Export Promotion (STEP) grant from the Small Business Administration (SBA). The grant will be used to assist Wisconsin companies to incorporate exporting into their business operations, support trade missions to key countries, and work with economic development organizations and financial professionals to support companies exporting. Her advice at that time still holds true for increasing Wisconsin export competitiveness: “Training and development for companies, economic development professionals, banks, financial service providers, credit, and finance professionals are critical components in moving new-to-export and early-export companies along the continuum to becoming competent and consistent exporters.” Lastly, just as productivity improvements make goods more affordable, Wisconsin business innovation capabilities will aid global sales efforts. Study findings suggest a correlation between a higher share of technology-intensive industries and an increasing rate of growth in GSP over time. The overall Wisconsin economy experienced growth of GSP by 7.1% between 2002 and 2011, but growth of GSP in very technology-intensive industries was 39%. Unfortunately, technology-intensive GSP as a percentage of the Wisconsin private sector was 15.0% vs. 17.2% among the eight competing states and 18.8% nationwide. Enhancing Wisconsin’s innovation performance will improve its global competitiveness.27 27 Moody’s Economy.com.
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6.6.3 Regulatory Pressure Business executives in Wisconsin are concerned about the state developing a national reputation for being overregulated and unfriendly to business, as evidenced by media rankings reported in section 6.5:
• Forbes’s “Best States for Business” ranked Wisconsin 42nd overall, and 35th for business costs and 30th for regulatory environment.28
• CNBC’s “America’s Top States for Business 2012” ranked Wisconsin 17th overall and 15th for cost of business and 27th for business friendliness.29
• The Tax Foundation’s 2013 State Tax Business Climate Index ranked Wisconsin 43rd overall.30
Closer to home, many Wisconsin business executives concur with the national findings. They argue that state regulations are an obstruction to good business, and they are concerned about the negative impact that excessive regulation will have on their operations. For example, the 2013 Wisconsin Regulatory Review Report, originated by an executive order by Governor Scott Walker, was released in January 2013. Among it findings:
• 11% of business owners say that complying with state regulations is the most important challenge they face today.
• 72% of business owners indicate that complying with state regulations costs more than the benefits they produce.
• 42% of business owners say the state regulations hinder hiring and prevent expansion. • 35% of business owners report it is “very difficult” or “extremely difficult” to comply with
state laws/rules that govern their businesses.31 6.6.4 Infrastructure The CNBC business-climate ranking may have identified the state’s infrastructure and transportation as a benefit to business (ranked 6th), but business executives and industry observers continue to look for more cost-effective and reliable transportation options in the state. Business executives cite infrastructure concerns:
• Regions of Wisconsin are isolated from efficient executive business travel. Convenient air travel into Wisconsin cities from major metropolitan areas is limited, and air-travel costs are often expensive: e.g., the lowest price for a March 2013 roundtrip flight from Dallas to Milwaukee with a one-night layover and booked more than 30 days out costs nearly $400.
• Transportation and logistics costs for some products exceed the cost of goods sold for the product. Manufacturing executives encourage the development of regional rail hubs or multimodal distribution centers to better connect them and their goods to customer bases in the state and across the country.
• The state’s highway network poses problems: 30% of Wisconsin’s major roads are in poor or mediocre condition, 25% of Wisconsin’s major urban highways are congested, and 16% of Wisconsin’s bridges are structurally deficient or functionally obsolete.32
28 “Best States for Business,” Forbes, Dec. 12, 2012. 29 “America’s Top States for Business 2012,” CNBC, July 10, 2012. 30 Scott Drenkard and Joseph Henchman, 2013 State Business Tax Climate Index, Tax Foundation, October 2012, http://taxfoundation.org/article/2013-state-business-tax-climate-index 31 2013 Wisconsin Regulatory Review Report, January 2013.
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On the plus side of the infrastructure ledger, some business executives in the state cited the availability of reliable electrical power, abundant water supplies, and accessible natural gas and gas distribution systems. But, here too, civil engineers cite some problems with these systems, (e.g., Wisconsin’s drinking water infrastructure needs an investment of $5.94 billion over the next 20 years).33
32 Survey of the Wisconsin ASCE members, American Society of Civil Engineers, September 2008. 33 Survey of the Wisconsin ASCE members, American Society of Civil Engineers, September 2008.
7-1 Wisconsin Economic Future Study
7 Central Region
7.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis for the Central Region, as well as detailed information related to each of the regional driver industries identified. For the purposes of this analysis, the Central Region is defined to include the counties of Adams, Clark, Langlade, Lincoln, Marathon, Portage, Taylor, Waushara, and Wood. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the Central Region are provided in a tabular form. Tables in the final section in this chapter (7.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries.
7-2 Wisconsin Economic Future Study
7.2 Summary of Regional Driver Industries & Industry Clusters The Central Region of Wisconsin has 20 regional driver industries at the 4-digit level NAICS (10 drivers at the 3-digit level).1 The regional driver industries of the Central Region are shown below.
1 Including Agriculture, Forestry, Fishing and Hunting (not including Logging), NAICS 11, at the 2-digit level.
3211 Sawmills and wood preservation 3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing
322 Paper manufacturing (complete) 3221 Pulp, paper, and paperboard mills 3222 Converted paper product manufacturing
327 Nonmetallic mineral product manufacturing (partial) 3272 Glass and glass product manufacturing 3273 Cement and concrete product manufacturing 3279 Other nonmetallic mineral products
332 Fabricated metal product manufacturing (partial) 3323 Architectural and structural metals manufacturing 3326 Spring and wire product manufacturing 3329 Other fabricated metal product manufacturing
333 Machinery manufacturing (partial) 3332 Industrial machinery manufacturing 3334 HVAC and commercial refrigeration equipment 3336 Turbine and power transmission equipment manufacturing 3339 Other general purpose machinery manufacturing
3371 Household and institutional furniture manufacturing 4541 Electronic shopping and mail-order houses 4841 General freight trucking 5241 Insurance carriers
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7.2.1 How Are the Central Region’s Driver Industries Doing?
2 low technology intensive driver industries 17 industries with no technological intensity
7-4 Wisconsin Economic Future Study
Interpretation: Figure 7-1 shows relative economic health of the regional driver industries over the last three years. The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. Similar to the previous analysis of the Central Region’s manufacturing drivers done in 2004, many driver industries in this analysis show high specialization and output growth over the last three years, but some are declining despite their concentration in the region. Prominent driver industries include:
• Pulp, Paper and Paperboard Mills remains one of the largest manufacturing driver industries in the region, keeping its high concentration (LQ=29.4) and growing 22.4% (output) over the last three years.
• Other Wood Product Manufacturing, another historically strong manufacturing driver industry, also maintains its high concentration (LQ=17.8) but has declined in output (-36.7%).
• Other General Purpose Machinery Manufacturing kept its concentration and overall size (measured in 2011 gross product) and shows healthy growth of gross product over the last three years.
• Dairy Product Manufacturing improved its concentration in the region and grew in size (from $143 million in 2004 to $296 million in 2011) and showed 25% output growth from 2008 through 2011.
• Other Fabricated Metal Product Manufacturing kept its concentration in the region and nearly tripled in overall size, illustrated by 22% growth in output over the last three years.
There are a few smaller manufacturing industries that have potential to grow (like Cement and Concrete Product Manufacturing, Industrial Machinery, and HVAC and Commercial Refrigeration and Equipment Manufacturing), but few service industries stand out based on signs of growth and concentration. The Insurance Carriers industry group not only is the largest driver in the region, but also has LQ 5 and grew almost 40% over the last three years. The Electronic Shopping and Mail-order Houses industry group had five times higher concentration in the Central Region than in the U.S. and grew over the last three years to output of $73 million.
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7.2.2 Driver and Industry Cluster Relationships in the Central Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 7-1 and 7-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 7-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to impact the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly impact the competitiveness of those driver industries. Table 7-2 is similar to Table 7-1 in that is shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 7-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
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Table 7-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
42 Wholesale trade 19 6 484* Truck transportation X 19 7 55 Management of companies and enterprises 14 5
2211 Electric power generation, transmission, and distribution 14 1
52A Monetary authorities and depository credit intermediation 14 1
3219 Wood container and pallet manufacturing X 7 1 531 Real estate 6 1
523 Securities, commodity contracts, investments, and related activities 5 1
482 Rail transportation 5 1 3211 Sawmills and wood preservation X 5 4
113 Forest nurseries, forest products, and timber tracts 4 4
3115 Fluid milk and butter manufacturing X 3 4 5241 Insurance carriers X 3 2
3313 Aluminum product manufacturing from purchased aluminum 2 7
491 Postal service 2 1 492 Couriers and messengers 2 1
3279 Ground or treated mineral and earth manufacturing X 2 1
3221 Paper mills X 2 2
493 Warehousing and storage 2 3 * Central region has the industry group of General freight trucking (NAICS 4841) as a driver industry. ** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers.
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Table 7-2 National Supplier Industries Common to Regional Driver Industries NAICS Title Count of Driver
National Suppliers 3323 Plate work and fabricated structural product manufacturing 9
3313 Aluminum product manufacturing from purchased aluminum 7
484 Truck transportation 7 42 Wholesale trade 6 55 Management of companies and enterprises 5 1119 All other crop farming 4 3326 Spring and wire product manufacturing 4 113 Logging 4 3115 Cheese manufacturing 4 3211 Sawmills and wood preservation 4 5614 Business support services 3 493 Warehousing and storage 3 3222 Paperboard container manufacturing 2 3212 Reconstituted wood product manufacturing 2 3221 Paper mills 2 5241 Insurance carriers 2
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7.3 Detailed Descriptions of the Regional Driver Industries
7.3.1 Driver Industry Definitions 3115 Dairy Product Manufacturing This industry group comprises establishments that manufacture dairy products from raw milk, processed milk, and dairy substitutes. 321 Wood Product Manufacturing (Partial) Industries in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. The production processes of the Wood Product Manufacturing subsector include sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industries mainly based on the specific products manufactured.
3211 Sawmills and wood preservation 3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing
322 Paper Manufacturing (Complete) Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and include coating and laminating activities.
3221 Pulp, paper, and paperboard mills 3222 Converted paper product manufacturing
327 Nonmetallic Mineral Product Manufacturing (Partial) The Nonmetallic Mineral Product Manufacturing subsector transforms mined or quarried nonmetallic minerals, such as sand, gravel, stone, clay, and refractory materials, into products for intermediate or final consumption. Processes used include grinding, mixing, cutting, shaping, and honing. Heat often is used in the process and chemicals are frequently mixed to change the composition, purity, and chemical properties for the intended product. For example, glass is produced by heating silica sand to the melting point (sometimes combined with cullet or recycled glass) and then drawn, floated, or blow molded to the desired shape or thickness. Refractory materials are heated and then formed into bricks or other shapes for use in industrial applications. Nonmetallic Mineral Product Manufacturing includes establishments that manufacture products such as
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bricks, refractories, ceramic products, and glass and glass products, such as plate glass and containers. Also included are cement and concrete products, lime, gypsum and other nonmetallic mineral products including abrasive products, ceramic plumbing fixtures, statuary, cut stone products, and mineral wool. The products are used in a wide range of activities from construction and heavy and light manufacturing to articles for personal use.
3272 Glass and glass product manufacturing 3273 Cement and concrete product manufacturing 3279 Other nonmetallic mineral products
332 Fabricated Metal Product Manufacturing (Partial) Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products other than machinery, computers and electronics, and metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining (used to shape individual pieces of metal), and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
3323 Architectural and structural metals manufacturing 3326 Spring and wire product manufacturing 3329 Other fabricated metal product manufacturing
333 Machinery Manufacturing (Partial) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining that are used to shape individual pieces of metal. Processes such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3332 Industrial machinery manufacturing 3334 HVAC and commercial refrigeration equipment 3336 Turbine and power transmission equipment manufacturing 3339 Other general purpose machinery manufacturing
3371 Household and Institutional Furniture This industry group comprises establishments manufacturing household-type furniture, such as living room, kitchen, and bedroom furniture and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches. 4541 Electronic Shopping and Mail-Order Houses This industry comprises establishments primarily engaged in retailing all types of merchandise using non-store means, such as catalogs, toll-free telephone numbers, or electronic media, such as interactive television or computer. Included in this industry are establishments primarily engaged in retailing from catalog showrooms of mail-order houses.
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4841 General Freight Trucking This industry group comprises establishments primarily engaged in providing general freight trucking. General freight establishments handle a wide variety of commodities, generally palletized, and transported in a container or van trailer. The establishments of this industry group provide a combination of the following network activities: local pickup, local sorting and terminal operations, line-haul, destination sorting and terminal operations, and local delivery. 5241 Insurance Carriers This industry group comprises establishments primarily engaged in underwriting (assuming the risk, assigning premiums, and so forth) annuities and insurance policies and investing premiums to build up a portfolio of financial assets to be used against future claims. Direct insurance carriers are establishments that are primarily engaged in initially underwriting and assuming the risk of annuities and insurance policies. Reinsurance carriers are establishments that are primarily engaged in assuming all or part of the risk associated with an existing insurance policy (or set of policies) originally underwritten by another insurance carrier. Industries are defined in terms of the type of risk being insured against, such as death, loss of employment because of age or disability, and/or property damage. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves.
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7.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is ‘regionalized’ to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 7-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
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3115 Dairy product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Dairy cattle and milk production 112 Dairy cattle and milk production 3115 Dry, condensed, and evaporated dairy product
manufacturing 3115 Cheese manufacturing
3115 Cheese manufacturing 3115 Fluid milk and butter manufacturing
42 Wholesale trade 42 Wholesale trade 3115 Fluid milk and butter manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 484 Truck transportation 484 Truck transportation 55 Management of companies and enterprises 3222 Paperboard container manufacturing Consumer Industries for Typical Regional Industry 3115 Cheese manufacturing 3115 Fluid milk and butter manufacturing 3115 Dry, condensed, and evaporated dairy product
3211 Sawmills and wood preservation Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 113 Logging 3219 Wood windows and doors and millwork 113 Forest nurseries, forest products, and timber
tracts 3211 Sawmills and wood preservation 3211 Sawmills and wood preservation
484 Truck transportation 1119 All other crop farming 42 Wholesale trade 42 Wholesale trade 1119 All other crop farming 484 Truck transportation 113 Forest nurseries, forest products, and timber
tracts
2211 Electric power generation, transmission, and distribution
Consumer Industries for Typical Regional Industry 3219 Wood windows and doors and millwork 3221 Paper mills 3211 Sawmills and wood preservation 3219 Wood container and pallet manufacturing 3219 All other miscellaneous wood product
manufacturing 3219 Prefabricated wood building manufacturing
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3212 Plywood and engineered wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 484 Truck transportation 42 Wholesale trade 113 Logging
3219 Wood windows and doors and millwork 3211 Sawmills and wood preservation
3211 Sawmills and wood preservation 3212 Reconstituted wood product manufacturing 484 Truck transportation 443 Retail - Electronics and appliances 2211 Electric power generation, transmission, and
distribution 3241 Petroleum refineries
3212 Veneer and plywood manufacturing 3255 Adhesive manufacturing 5191 Internet publishing and broadcasting 3251 Petrochemical manufacturing 3325 Hardware manufacturing Consumer Industries for Typical Regional Industry 3219 Wood windows and doors and millwork
3371 Wood television, radio, and sewing machine cabinet manufacturing1
3212 Reconstituted wood product manufacturing 3219 Other wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3219 Wood windows and doors and millwork 3211 Sawmills and wood preservation
3211 Sawmills and wood preservation 42 Wholesale trade
42 Wholesale trade 3219 Wood windows and doors and millwork
484 Truck transportation 484 Truck transportation 55 Management of companies and enterprises 55 Management of companies and enterprises Consumer Industries for Typical Regional Industry 3219 Wood windows and doors and millwork 3221 Paper mills 23 Construction of other new nonresidential
structures 1112 Vegetable and melon farming 3211 Sawmills and wood preservation 23 Construction of other new residential
structures 23 Construction of new nonresidential
commercial and health care structures 3219 Prefabricated wood building manufacturing
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3221 Pulp, paper, and paperboard mills Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade 2211 Electric power generation, transmission, and
distribution 113 Logging
484 Truck transportation 2212 Natural gas distribution
113 Logging 2211 Electric power generation, transmission, and distribution
55 Management of companies and enterprises 55 Management of companies and enterprises 23 Maintenance and repair construction of
nonresidential maintenance and repair 3211 Sawmills and wood preservation
482 Rail transportation 3112 Wet corn milling 3221 Paper mills 484 Truck transportation 3219 Wood container and pallet manufacturing 3241 Petroleum refineries 3219 Wood windows and doors and millwork 482 Rail transportation 3211 Sawmills and wood preservation Consumer Industries for Typical Regional Industry 3222 Paperboard container manufacturing 3221 Paper mills 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 3231 Printing 5111 Newspaper publishers 3222 All other converted paper product
manufacturing 3222 Converted paper product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3221 Paper mills 3221 Paper mills 42 Wholesale trade 3221 Paperboard Mills
484 Truck transportation 42 Wholesale trade
55 Management of companies and enterprises 3222 Sanitary paper product manufacturing 2211 Electric power generation, transmission, and
distribution 55 Management of companies and enterprises
482 Rail transportation 3255 Adhesive manufacturing 3251 Petrochemical manufacturing Consumer Industries for Typical Regional Industry 3221 Paper mills 3115 Cheese manufacturing 3114 Frozen food manufacturing 3114 Fruit and vegetable canning, pickling, and
drying 3116 Animal (except poultry) slaughtering,
rendering, and processing 3329 Ammunition manufacturing 3115 Fluid milk and butter manufacturing
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3272 Glass and glass product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 2211 Electric power generation, transmission, and
distribution 3261 Laminated plastics plate, sheet (except
packaging), and shape manufacturing 484 Truck transportation 3323 Plate work and fabricated structural product
manufacturing 55 Management of companies and enterprises 493 Warehousing and storage 23 Maintenance and repair construction of
nonresidential maintenance and repair 5614 Business support services
3222 Paperboard container manufacturing 3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
482 Rail transportation 448 Retail - Clothing and clothing accessories 52A Monetary authorities and depository credit
intermediation 3251 Alkalies and chlorine manufacturing
3279 Ground or treated mineral and earth manufacturing
3312 Steel product manufacturing from purchased steel
3113 Chocolate and confectionery manufacturing from cacao beans
3344 Other electronic component manufacturing 3113 Nonchocolate confectionery manufacturing Consumer Industries for Typical Regional Industry 3121 Breweries 3114 Fruit and vegetable canning, pickling, and
drying 3119 Seasoning and dressing manufacturing 3219 Wood windows and doors and millwork
3273 Cement and concrete product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 484 Truck transportation 3273 Cement manufacturing 42 Wholesale trade 484 Truck transportation
55 Management of companies and enterprises 2123 Sand, gravel, clay, and ceramic and refractory minerals mining and quarrying
52A Monetary authorities and depository credit intermediation
2123 Stone mining and quarrying
23 Maintenance and repair construction of nonresidential maintenance and repair
55 Management of companies and enterprises
517 Telecommunications 42 Wholesale trade Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential
structures 23 Construction of new nonresidential
commercial and health care structures n.a. Other state and local government enterprises 23 Construction of other new residential
structures 3273 Other concrete product manufacturing 23 Construction of new residential permanent
site single- and multi-family structures 722 Food services and drinking places 23 Maintenance and repair construction of
nonresidential maintenance and repair
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3279 Other nonmetallic mineral products Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 484 Truck transportation 3113 Nonchocolate confectionery manufacturing 3279 Ground or treated mineral and earth
manufacturing 3323 Plate work and fabricated structural product
manufacturing 2211 Electric power generation, transmission, and
distribution 2122 Iron ore mining
52A Monetary authorities and depository credit intermediation
5614 Business support services
42 Wholesale trade 493 Warehousing and storage 55 Management of companies and enterprises 3113 Chocolate and confectionery manufacturing
from cacao beans 482 Rail transportation 3335 Metal cutting and forming machine tool
manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 5414 Specialized design services
Consumer Industries for Typical Regional Industry 3279 Ground or treated mineral and earth
manufacturing 23 Construction of other new nonresidential
structures 3253 Fertilizer manufacturing
3255 Paint and coating manufacturing 3331 Farm machinery and equipment
manufacturing
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3323 Architectural and structural metals manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 5412 Accounting, tax preparation, bookkeeping, and
payroll services 2122 Iron ore mining
484 Truck transportation 1119 All other crop farming 52A Monetary authorities and depository credit
517 Telecommunications 3241 All other petroleum and coal products manufacturing
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3323 Ornamental and architectural metal products manufacturing
3313 Aluminum product manufacturing from purchased aluminum
531 Real estate Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential
structures 23 Construction of new nonresidential
commercial and health care structures 3323 Ornamental and architectural metal products
manufacturing 3324 Metal can, box, and other metal container
(light gauge) manufacturing 23 Construction of other new residential
structures 3333 Other commercial and service industry
machinery manufacturing
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3326 Spring and wire product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum
484 Truck transportation 2122 Iron ore mining
3326 Spring and wire product manufacturing 1119 All other crop farming
52A Monetary authorities and depository credit intermediation
3399 Office supplies (except paper) manufacturing
55 Management of companies and enterprises 3241 All other petroleum and coal products
manufacturing
2211 Electric power generation, transmission, and distribution
3323 Plate work and fabricated structural product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
523 Securities, commodity contracts, investments, and related activities
531 Real estate 722 Food services and drinking places 517 Telecommunications Consumer Industries for Typical Regional Industry 3326 Spring and wire product manufacturing 3273 Other concrete product manufacturing
3323 Plate work and fabricated structural product manufacturing
23 Construction of other new nonresidential structures
3329 Other fabricated metal manufacturing 3329 Ammunition manufacturing
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3329 Other fabricated metal product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum
484 Truck transportation 2122 Iron ore mining
52A Monetary authorities and depository credit intermediation
1119 All other crop farming
55 Management of companies and enterprises 3399 Office supplies (except paper) manufacturing
2211 Electric power generation, transmission, and distribution
3241 All other petroleum and coal products manufacturing
3329 Fabricated pipe and pipe fitting manufacturing 3323 Plate work and fabricated structural product
manufacturing
3313 Aluminum product manufacturing from purchased aluminum
523 Securities, commodity contracts, investments, and related activities
531 Real estate
23 Maintenance and repair construction of nonresidential maintenance and repair
522 Nondepository credit intermediation and related activities
Consumer Industries for Typical Regional Industry 3329 Fabricated pipe and pipe fitting manufacturing 3324 Metal tank (heavy gauge) manufacturing 3115 Cheese manufacturing 23 Construction of other new nonresidential
structures 3221 Paper mills 23 Construction of new nonresidential
manufacturing structures 3331 Farm machinery and equipment
manufacturing 3273 Other concrete product manufacturing 3329 Ammunition manufacturing
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3332 Industrial machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining
55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing
5415 Custom computer programming services 3313 Aluminum product manufacturing from
purchased aluminum 484 Truck transportation 3326 Spring and wire product manufacturing
52A Monetary authorities and depository credit intermediation
3345 Watch, clock, and other measuring and controlling device manufacturing
517 Telecommunications 3345 Totalizing fluid meters and counting devices
manufacturing
2211 Electric power generation, transmission, and distribution
3241 All other petroleum and coal products manufacturing
523 Securities, commodity contracts, investments, and related activities
531 Real estate Consumer Industries for Typical Regional Industry
3221 Paper mills
3332 Other industrial machinery manufacturing 3251 Alkalies and chlorine manufacturing 3332 Plastics and rubber industry machinery
manufacturing 3334 HVAC and commercial refrigeration equipment Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining
55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing
484 Truck transportation 3313 Aluminum product manufacturing from
purchased aluminum
52A Monetary authorities and depository credit intermediation
3326 Spring and wire product manufacturing
2211 Electric power generation, transmission, and distribution
3345 Watch, clock, and other measuring and controlling device manufacturing
517 Telecommunications 3345 Totalizing fluid meters and counting devices
manufacturing
3219 Wood container and pallet manufacturing 3241 All other petroleum and coal products
manufacturing
523 Securities, commodity contracts, investments, and related activities
531 Real estate
3334 Air purification and ventilation equipment manufacturing
3353 Motor and generator manufacturing Consumer Industries for Typical Regional Industry 3334 Air purification and ventilation equipment
manufacturing 3333 Other commercial and service industry
machinery manufacturing 23 Construction of new nonresidential
commercial and health care structures 23 Construction of other new nonresidential
structures
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3336 Turbine and power transmission equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining
55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing
2211 Electric power generation, transmission, and distribution
3313 Aluminum product manufacturing from purchased aluminum
23 Maintenance and repair construction of nonresidential maintenance and repair
3326 Spring and wire product manufacturing
484 Truck transportation 3345 Watch, clock, and other measuring and
controlling device manufacturing
52A Monetary authorities and depository credit intermediation
3241 All other petroleum and coal products manufacturing
517 Telecommunications 5413 Architectural, engineering, and related services Consumer Industries for Typical Regional Industry
3332 Other industrial machinery manufacturing
3363 Motor vehicle parts manufacturing
3331 Farm machinery and equipment manufacturing
3336 Speed changer, industrial high-speed drive, and gear manufacturing
3339 Other general purpose machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 484 Truck transportation 3313 Aluminum product manufacturing from
purchased aluminum 5415 Custom computer programming services 3326 Spring and wire product manufacturing 52A Monetary authorities and depository credit
intermediation 3345 Watch, clock, and other measuring and
controlling device manufacturing 2211 Electric power generation, transmission, and
distribution 3241 All other petroleum and coal products
manufacturing 517 Telecommunications 23 Maintenance and repair construction of
nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry 3333 Other commercial and service industry
machinery manufacturing 3331 Farm machinery and equipment
manufacturing 3332 Other industrial machinery manufacturing
3339 Material handling equipment manufacturing 3363 Motor vehicle parts manufacturing 3339 Fluid power process machinery
23 Construction of new nonresidential commercial and health care structures
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3371 Household and institutional furniture Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3219 Wood windows and doors and millwork 3211 Sawmills and wood preservation 484 Truck transportation 3212 Reconstituted wood product manufacturing 52A Monetary authorities and depository credit
intermediation
23 Maintenance and repair construction of nonresidential maintenance and repair
517 Telecommunications 55 Management of companies and enterprises 2211 Electric power generation, transmission, and
distribution
Consumer Industries for Typical Regional Industry 3371 Nonupholstered wood household furniture
manufacturing 3219 Manufactured home (mobile home)
manufacturing n.a. Imputed rental value for owner-occupied
dwellings 3219 Wood windows and doors and millwork
4541 Electronic shopping and mail-order houses Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 531 Real estate 3162 Footwear manufacturing 52A Monetary authorities and depository credit
intermediation 3115 Dry, condensed, and evaporated dairy product
manufacturing 493 Warehousing and storage 3122 Tobacco product manufacturing 5241 Insurance carriers 3121 Breweries 2211 Electric power generation, transmission, and
distribution 3279 Mineral wool manufacturing
522 Nondepository credit intermediation and related activities
3119 Seasoning and dressing manufacturing
42 Wholesale trade 5614 Business support services 484 Truck transportation 3121 Wineries 5151 Radio and television broadcasting 517 Telecommunications 491 Postal service 23 Maintenance and repair construction of
nonresidential maintenance and repair
492 Couriers and messengers Consumer Industries for Typical Regional Industry 454 Retail - Nonstore
23 Construction of other new residential structures
23 Construction of new residential permanent site single- and multi-family structures
23 Construction of other new nonresidential structures
23 Maintenance and repair construction of nonresidential maintenance and repair
484 Truck transportation
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4841 General freight trucking Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 484 Truck transportation 3241 Petroleum refineries 492 Couriers and messengers 492 Couriers and messengers
491 Postal service 484 Truck transportation
5241 Insurance carriers 5241 Insurance carriers 48A Scenic and sightseeing transportation and
support activities for transportation 56A Employment services
42 Wholesale trade 491 Postal service 493 Warehousing and storage 48A Scenic and sightseeing transportation and
support activities for transportation 56A Employment services 3363 Motor vehicle parts manufacturing 52A Monetary authorities and depository credit
intermediation 531 Real estate
8111 Automotive repair and maintenance, except car washes
493 Warehousing and storage
482 Rail transportation Consumer Industries for Typical Regional Industry
3221 Paper mills 3115 Cheese manufacturing 484 Truck transportation
3219 Wood windows and doors and millwork
3116 Animal (except poultry) slaughtering, rendering, and processing
3114 Frozen food manufacturing
5241 Insurance carriers Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 5242 Insurance agencies, brokerages, and related
activities 5242 Insurance agencies, brokerages, and related
and related activities 523 Securities, commodity contracts, investments,
and related activities
522 Nondepository credit intermediation and related activities
Consumer Industries for Typical Regional Industry 5241 Insurance carriers 484 Truck transportation 621 Medical and diagnostic labs and outpatient
and other ambulatory care services n.a. Imputed rental value for owner-occupied
dwellings 622 Hospitals 621 Offices of physicians, dentists, and other
health practitioners
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7.3.3 Top Firms2 by Driver Industry in the Central Region 3115 Dairy product manufacturing
Company Name Industry Description Employment
Size County Land O'Lakes Inc. Cheese Manufacturing 1000+ Marathon Marathon Cheese Corp. Cheese Manufacturing 1000+ Marathon Grassland Dairy Products Inc. Creamery Butter Manufacturing 250 - 499 Clark Kerry Ingredients & Flavours Cheese Manufacturing 100 - 249 Clark Sartori Foods Cheese Manufacturing 100 - 249 Langlade Gilman Cheese Corp. Cheese Manufacturing 100 - 249 Taylor Foremost Farms USA Cheese Manufacturing 50 - 99 Marathon Foremost Farms USA Cheese Manufacturing 50 - 99 Marathon Lactalis USA Inc. Cheese Manufacturing 50 - 99 Marathon Welcome Dairy Inc. Cheese Manufacturing 50 - 99 Marathon Foremost Farms USA Cheese Manufacturing 50 - 99 Portage
Maple Island Inc. Dry, Condensed, and Evaporated
Dairy Product Manufacturing 50 - 99 Taylor Foremost Farms USA Cheese Manufacturing 50 - 99 Wood Mullin's Cheese Inc. Cheese Manufacturing 50 - 99 Wood Grande Cheese Co. Cheese Manufacturing 20 - 49 Adams DairiConcepts Cheese Manufacturing 20 - 49 Clark North Hendren CO-OP Dairy Cheese Manufacturing 20 - 49 Clark Mullins Cheese Inc. Cheese Manufacturing 20 - 49 Marathon Dairy State Cheese Co. Cheese Manufacturing 20 - 49 Wood
3211 Sawmills and wood preservation
Company Name Industry Description Employment
Size County Kretz Lumber Co. Inc. Sawmills 100 - 249 Langlade Northwest Hardwoods Sawmill Sawmills 50 - 99 Clark American Wood Fibers Sawmills 50 - 99 Marathon Central Wisconsin Lumber Inc. Sawmills 20 - 49 Marathon
3212 Plywood and engineered wood product manufacturing
Company Name Industry Description Employment
Size County
Automated Products Inc. Engineered Wood Member
(except Truss) Manufacturing 100 - 249 Wood
2 Top firms are identified by an establishment's employment by each driver industry in the Central Region. Those establishments of companies having 20 employees or more are listed in the tables.
7-25 Wisconsin Economic Future Study
3219 Other wood product manufacturing
Company Name Industry description Employment
Size County Kolbe & Kolbe Millwork Co. Inc. Other Millwork (including Flooring) 1000+ Marathon Kolbe Gallery Other Millwork (including Flooring) 1000+ Marathon Lincoln Wood Products Inc. Other Millwork (including Flooring) 250 - 499 Lincoln Semco Windows & Doors Other Millwork (including Flooring) 250 - 499 Lincoln Semling-Menke Co. Other Millwork (including Flooring) 250 - 499 Lincoln
Liberty Homes Inc. Manufactured home (mobile home)
manufacturing 100 - 249 Clark Robbins Inc. Other Millwork (including Flooring) 100 - 249 Langlade Imperial Industries Inc. Other Millwork (including Flooring) 100 - 249 Marathon MBX Packaging Specialists Wood Container and Pallet Manufacturing 100 - 249 Marathon Menzner Lumber & Supply Co. Other Millwork (including Flooring) 100 - 249 Marathon
Stratford Homes LP Prefabricated wood building
manufacturing 100 - 249 Marathon Northwest Hardwoods Other Millwork (including Flooring) 50 - 99 Clark Parrett Windows Wood Window and Door Manufacturing 50 - 99 Clark Award Hardwood Flooring LLP Other Millwork (including Flooring) 50 - 99 Marathon Jmb Pallet Wood Container and Pallet Manufacturing 50 - 99 Portage
Golden Eagle Log Homes Prefabricated wood building
manufacturing 50 - 99 Wood Wisconsin Valley Concrete Products Wood Window and Door Manufacturing 50 - 99 Wood White Bear Lumber LLC Cut Stock, Resawing Lumber, and Planing 20 - 49 Langlade Zelazoski Wood Products Inc.
All other miscellaneous wood product manufacturing 20 - 49 Langlade
Merrill Millwork Inc. Other Millwork (including Flooring) 20 - 49 Lincoln Tomahawk Log & Country Hms Inc.
Prefabricated wood building manufacturing 20 - 49 Lincoln
Bennett Hardwoods Inc. Cut Stock, Resawing Lumber, and Planing 20 - 49 Marathon Central WI Woodworking Corp.
All other miscellaneous wood product manufacturing 20 - 49 Marathon
Frahm Wood Products Other Millwork (including Flooring) 20 - 49 Marathon Wisconsin Box Co. Wood Container and Pallet Manufacturing 20 - 49 Marathon Hay Creek Express Wood Container and Pallet Manufacturing 20 - 49 Wood Woodruff Lumber Co. Wood Container and Pallet Manufacturing 20 - 49 Wood
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3221 Pulp, paper, and paperboard mills
Company Name Industry Description Employment
Size County Domtar Paper Co. LLC Paper (except Newsprint) Mills 1000+ Wood New Page Corp. Paper (except Newsprint) Mills 1000+ Wood New Page Corp. Paper (except Newsprint) Mills 1000+ Wood Domtar Paper Co. LLC Paper (except Newsprint) Mills 250 - 499 Marathon Graphic Packaging Intl. Paperboard Mills 250 - 499 Marathon Wausau Paper Corp. Paper (except Newsprint) Mills 250 - 499 Marathon Wausau Paper Corp. Paper (except Newsprint) Mills 250 - 499 Marathon Neenah Paper Paper (except Newsprint) Mills 250 - 499 Portage New Page Corp. Pulp Mills 250 - 499 Wood Wausau Paper Corp. Paper (except Newsprint) Mills 50 - 99 Marathon Maratech International Paper (except Newsprint) Mills 20 - 49 Marathon Wausau Paper Corp. Paper (except Newsprint) Mills 20 - 49 Marathon New Page Corp. Paper (except Newsprint) Mills 20 - 49 Wood
3222 Converted paper product manufacturing
Company Name Industry Description Employment
Size County
New Page Corp. All Other Converted Paper
Product Manufacturing 250 - 499 Portage
Paperboard Products Corrugated and Solid Fiber Box
Manufacturing 250 - 499 Wood
Packaging Corp. of America Corrugated and Solid Fiber Box
Manufacturing 100 - 249 Clark
Green Bay Packaging Inc. Corrugated and Solid Fiber Box
Manufacturing 100 - 249 Marathon
Wausau Coated Products Inc. Paper Bag and Coated and
Stone Innovations Inc. Wood Kitchen Cabinet and Countertop Manufacturing 20 - 49 Portage
Buffets Inc. Cabinet Division Wood Kitchen Cabinet and Countertop Manufacturing 20 - 49 Wood
4541 Electronic shopping and mail-order houses
Company Name Industry Description Employment
Size County Eastbay Inc. Mail-Order Houses 1000+ Marathon Footlocker.com Inc. Mail-Order Houses 1000+ Marathon Figi's Inc. Mail-Order Houses 100 - 249 Wood
4841 General freight trucking
Company Name Industry Description Employment
Size County Graebel Van Lines Inc. General Freight Trucking, Local 250 - 499 Marathon Spee-Dee Delivery Service Inc. General Freight Trucking, Local 100 - 249 Portage Windy Hill Foliage Inc. General Freight Trucking, Local 100 - 249 Wood Karl's Transport Inc. General Freight Trucking, Local 50 - 99 Langlade Pioneer Transportation LTD General Freight Trucking, Local 50 - 99 Lincoln D L K Trucking General Freight Trucking, Local 50 - 99 Portage B & K Trucking General Freight Trucking, Local 20 - 49 Marathon Bajet Van Lines Inc. General Freight Trucking, Local 20 - 49 Marathon Diversified Installation Service Inc. General Freight Trucking, Local 20 - 49 Marathon Graebel Van Lines Inc. General Freight Trucking, Local 20 - 49 Marathon Draxler Transport Inc. General Freight Trucking, Local 20 - 49 Wood
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5241 Insurance carriers
Company Name Industry Description Employment
Size County Parker Stevens Insurance of Massachusetts
Direct Property and Casualty Insurance Carriers 1000+ Portage
Patriot General Insurance Co. Direct Property and Casualty
3334 HVAC and commercial refrigeration equipment 2.963 4.381 4.856
3336 Turbine and power transmission equipment manufacturing 2.756 4.103 4.025
3339 Other general purpose machinery manufacturing 1.763 1.988 3.106
3371 Household and institutional furniture manufacturing 1.511 1.910 2.441
4541 Electronic shopping and mail-order houses 10.726 6.761 7.326
4841 General freight trucking 3.967 4.013 4.046
5241 Insurance carriers 3.141 3.628 3.753
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
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Table 7-6 Gross Product in the Central Region's Driver Industries, 2000-2011
3334 HVAC and commercial refrigeration equipment 2.754 5.166 4.968
3336 Turbine and power transmission equipment manufacturing 3.054 4.402 3.487
3339 Other general purpose machinery manufacturing 2.015 2.468 3.353
3371 Household and institutional furniture manufacturing 2.258 3.420 3.287
4541 Electronic shopping and mail-order houses 12.006 7.128 6.464
4841 General freight trucking 5.056 5.308 5.519
5241 Insurance carriers 3.844 4.797 5.345 *The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
7-39
Table 7-9 Productivity (Gross Product per Employee) of Driver Industries, Central Region, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011
8.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis for the East Central Region, as well as detailed information related to each of the regional driver industries identified. For the purposes of this analysis, the East Central Region is defined to include the counties of Brown, Calumet, Door, Kewaunee, Marinette, Menominee, Oconto, Outagamie, Shawano, Waupaca, and Winnebago. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the East Central Region are provided in a tabular form. Tables in the final section in this chapter (8.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries.
8.2 Summary of Regional Driver Industries & Industry Clusters The East Central Region of Wisconsin has 29 regional driver industries at the 4-digit level NAICS (13 drivers at the 3-digit level). The regional driver industries of the East Central Region are shown below.
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NAICS Industry description
2123 Nonmetallic mineral mining and quarrying 311 Food manufacturing (partial) 3111 Animal food manufacturing 3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing 3118 Bakeries and tortilla manufacturing 3132 Fabric mills 321 Wood product manufacturing (partial) 3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing 322 Paper manufacturing (complete) 3221 Pulp, paper, and paperboard mills 3222 Converted paper product manufacturing 3231 Printing and related support activities 326 Plastics and rubber products manufacturing (complete) 3261 Plastics product manufacturing 3262 Rubber product manufacturing 3315 Foundries 332 Fabricated metal product manufacturing (partial) 3326 Spring and wire product manufacturing 3327 Machine shops and threaded product manufacturing 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing 333 Machinery manufacturing (Partial) 3332 Industrial machinery manufacturing 3336 Turbine and power transmission equipment manufacturing 3339 Other general purpose machinery manufacturing 336 Transportation equipment manufacturing (partial) 3361 Motor vehicle manufacturing 3362 Motor vehicle body and trailer manufacturing 3363 Motor vehicle parts manufacturing 3366 Ship and boat building 3371 Household and institutional furniture manufacturing 711 Performing arts, spectator sports, and related industries (partial) 7112 Spectator sports 7113 Promoters of performing arts and sports
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8.2.1 How Are the East Central Region’s Driver Industries Doing?
Figure 8-1 Overview of the East Central Region Drivers
Interpretation: The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. Compared to the previous driver and cluster analyses study conducted in 2004, three out of seven manufacturing driver industries remain among the current drivers in the East Central Region of Wisconsin. The first two industries below are the largest current economic drivers:
Pulp, Paper, and Paperboard Mills produced $1,546 million of output in 2011 and was 25 times more concentrated in the East Central Region (measured in the relative gross regional product or output concentration) than, on average, in the United States. This industry grew by 13.6% over the last three years, from 2008 through 2011.
Converted Paper Product Manufacturing produced $1,320 million of output in 2011 and was 13 times more concentrated in this region than nationally. This industry grew by 18.2% over the last three years. This industry group along with Pulp, Paper, and Paperboard Mills constitute a complete cluster of Paper Manufacturing (NAICS 322), and the two are complemented by a related industry group, Printing and Related Support Activities (NAICS 3231), which is another driver of the regional economy.
Dairy Product Manufacturing is another strong historical driver and not only remains among the
regional drivers but represents the broader cluster of Food Manufacturing (NAICS 311) along with other 4-digit NAICS industry groups (Animal Food Manufacturing, Fruit and Vegetable Preserving and Specialty, Animal Slaughtering and Processing, and Bakeries and Tortilla Manufacturing). Although Dairy Product Manufacturing has lost size and comparative concentration in the region since 2004, and some other industries in this cluster have a relative concentration much lower than the industry groups of the paper cluster, all of the industry groups in this cluster grew their output over the last three years.
There is a partial Transportation Equipment Manufacturing cluster in the region (NAICS 336). Three large motor-vehicle-related manufacturing industry groups in this cluster were growing over time and built a significant representation in the region, reflected both in secondary data of their output and relative concentration of companies constituting this cluster. Motor Vehicle Manufacturing leads with $451 million of output and a relative concentration close to LQ=6, followed by Motor Vehicle Body and Trailer Manufacturing with $230 million of output in 2011 and a relative concentration of LQ=8. Both industries showed more than 50% growth of their regional gross product over the last three years. These industries are complemented by Motor Vehicle Parts Manufacturing of $394 million output in 2011, LQ=3, and output growth above 25%, and Ship and Boat Building, with $102 million output.
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The Transportation Equipment Manufacturing cluster is closely related to three other clusters in the East Central Region: Machinery Manufacturing (NAICS 333) with three 4-digit NAICS drivers, Fabricated Metal Product Manufacturing (NAICS 332) with four 4-digit NAICS drivers, and a complete Plastic and Rubber Product Manufacturing cluster (NAICS 326) with two 4-digit NAICS industries. One other regional cluster — Wood Product Manufacturing and related Fabric Mills driver — showed some signs of decline both in the relative regional concentration and output growth. The only non-manufacturing cluster driving the regional economy — Performing Arts, Spectator Sports, and Related Industries (partial) — accounts only for two 4-digit NAICS industry groups, Spectator Sports and the Promoters of Performing Arts and Sports industry group.
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8.2.2 Driver and Industry Cluster Relationships in the East Central Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 8-1 and 8-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 8-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to impact the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly impact the competitiveness of those driver industries.
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Table 8-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
55 Management of companies and enterprises 28 55 42 Wholesale trade 26 42 484 Truck transportation 25 484 2211 Electric power generation, transmission, and
distribution 16 2211
52A Monetary authorities and depository credit intermediation
13 52A
3222 Paperboard container manufacturing X 12 3222 3315 Ferrous metal foundries X 6 3315 3221 Paper mills X 6 3221 531 Real estate 5 531 3261 Plastics packaging materials and unlaminated
film and sheet manufacturing X 4 3261
2212 Natural gas distribution 4 2212 5413 Architectural, engineering, and related
services 3 5413
3115 Cheese manufacturing X 3 3115
3116 Animal (except poultry) slaughtering, rendering, and processing
X 3 3116
3211 Sawmills and wood preservation 3 3211 112 Dairy cattle and milk production 3 112 3114 Frozen food manufacturing X 2 3114 3219 Wood windows and doors and millwork X 2 3219 3212 Veneer and plywood manufacturing X 2 3212 113 Logging 2 113 711 Spectator sports X 2 711 3252 Plastics material and resin manufacturing 2 3252 3363 Motor vehicle parts manufacturing X 2 3363 3112 Flour milling and malt manufacturing 2 3112
** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers. Table 8-2 is similar to Table 8-1 in that it shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 8-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
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Table 8-2 National Supplier Industries Common to Regional Driver Industries NAICS Title Count of Driver
National Suppliers 55 Management of companies and enterprises 16 42 Wholesale trade 14 3323 Plate work and fabricated structural product manufacturing 10 484 Truck transportation 8 3112 Soybean and other oilseed processing 6 1119 Cotton farming 5 3222 Paperboard container manufacturing 5 711 Independent artists, writers, and performers 4 3252 Artificial and synthetic fibers and filaments manufacturing 4 3363 Motor vehicle parts manufacturing 4 112 Dairy cattle and milk production 4 3326 Spring and wire product manufacturing 3 56A Management, scientific, and technical consulting services 3 113 Logging 3 3115 Cheese manufacturing 3
3116 Animal (except poultry) slaughtering, rendering, and processing 3
3211 Sawmills and wood preservation 3 3221 Paper mills 3 2211 Electric power generation, transmission, and distribution 3 3231 Printing 2 3255 Adhesive manufacturing 2 3212 Reconstituted wood product manufacturing 2 2212 Natural gas distribution 2 531 Real estate 2 3315 Nonferrous metal foundries 2
8-9 Wisconsin Economic Future Study
8.3. Detailed Descriptions of Regional Driver Industries 8.3.1 Driver Industry Definitions 2123 Nonmetallic Mineral Mining and Quarrying This industry group comprises establishments primarily engaged in developing mine sites, or in mining or quarrying nonmetallic minerals (except fuels). Also included are certain well and brine operations, and preparation plants primarily engaged in beneficiating (e.g., crushing, grinding, washing, and concentrating) nonmetallic minerals. 311 Food Manufacturing (Partial) Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products.
3111 Animal food manufacturing 3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing 3118 Bakeries and tortilla manufacturing
3132 Fabric Mills This industry group comprises establishments primarily engaged in one or more of the following manufacturing activities: weaving broadwoven fabrics and felts; weaving or braiding narrow fabrics and schiffli machine embroideries; nonwoven fabrics and felts; and milling knit fabrics. 321 Wood Product Manufacturing (Partial) Industries in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. The production processes of the Wood Product Manufacturing subsector include sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industries mainly based on the specific products manufactured.
3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing
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322 Paper Manufacturing (Complete) Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and include coating and laminating activities.
3221 Pulp, paper, and paperboard mills 3222 Converted paper product manufacturing
3231 Printing and Related Support Activities This industry group comprises establishments primarily engaged in one or more of the following manufacturing activities: printing on apparel and textile products, paper, metal, glass, plastics, and other materials, except fabric (grey goods) and/or performing prepress (e.g., platemaking, typesetting) and postpress services (e.g., book binding) in support of printing activities. 326 Plastics and Rubber Products Manufacturing (Complete) Industries in the Plastics and Rubber Products Manufacturing subsector make goods by processing plastics materials and raw rubber. The core technology employed by establishments in this subsector is that of plastics or rubber product production. Plastics and rubber are combined in the same subsector because plastics are increasingly being used as a substitute for rubber; however, the subsector is generally restricted to the production of products made of just one material, either solely plastics or rubber.
3315 Foundries This industry group comprises establishments primarily engaged in pouring molten metal into molds or dies to form castings. Establishments making castings and further manufacturing, such as machining or assembling, a specific manufactured product are classified in the industry of the finished product. Foundries may perform operations, such as cleaning and deburring, on the castings they manufacture. More involved processes, such as tapping, threading, milling, or machining to tight tolerances that transform castings into more finished products, are classified elsewhere in the manufacturing sector based on the product being made. 332 Fabricated Metal Product Manufacturing (Partial) Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining (used to shape individual pieces of metal), and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
3326 Spring and wire product manufacturing 3327 Machine shops and threaded product manufacturing
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3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
333 Machinery Manufacturing (Partial) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal. Processes such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3332 Industrial machinery manufacturing 3336 Turbine and power transmission equipment manufacturing 3339 Other general purpose machinery manufacturing
336 Transportation Equipment Manufacturing (Partial) Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting people and goods. Transportation equipment is a type of machinery. An entire subsector is devoted to this activity because of the significance of its economic size in all three North American countries.
3361 Motor vehicle manufacturing 3362 Motor vehicle body and trailer manufacturing 3363 Motor vehicle parts manufacturing 3366 Ship and boat building
3371 Household and Institutional Furniture This industry group comprises establishments manufacturing household-type furniture, such as living room, kitchen and bedroom furniture, and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches. 711 Performing Arts, Spectator Sports, and Related Industries (Partial) Industries in the Performing Arts, Spectator Sports, and Related Industries subsector produce or organize and promote live presentations involving the performances of actors and actresses, singers, dancers, musical groups and artists, athletes, and other entertainers, including independent (i.e., freelance) entertainers and the establishments that manage their careers. The classification recognizes four basic processes: (1) producing (i.e., presenting) events; (2) organizing, managing, and/or promoting events; (3) managing and representing entertainers; and (4) providing the artistic, creative, and technical skills necessary to the production of these live events. Also, this subsector contains four industries for performing arts companies. Each is defined on the basis of the particular skills of the entertainers involved in the presentations.
7112 Spectator sports 7113 Promoters of performing arts and sports
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8.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is ‘regionalized’ to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 8-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
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2123 Nonmetallic mineral mining and quarrying Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 2123 Stone mining and quarrying 2131 Support activities for other mining
484 Truck transportation 2123 Stone mining and quarrying
55 Management of companies and enterprises 484 Truck transportation
2211 Electric power generation, transmission, and distribution
2211 Electric power generation, transmission, and distribution
5413 Architectural, engineering, and related services 55 Management of companies and enterprises
52A Monetary authorities and depository credit intermediation
5413 Architectural, engineering, and related services
2212 Natural gas distribution 2212 Natural gas distribution 532 Commercial and industrial machinery and
equipment rental and leasing 532 Commercial and industrial machinery and
equipment rental and leasing 48A Scenic and sightseeing transportation and
support activities for transportation 523 Securities, commodity contracts, investments,
and related activities 52A Monetary authorities and depository credit
intermediation Consumer Industries for Typical Regional Industry
23 Construction of other new nonresidential structures
23 Maintenance and repair construction of nonresidential maintenance and repair
3221 Paper mills 23 Construction of other new residential
structures 3273 Ready-mix concrete manufacturing
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3111 Animal food manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3111 Other animal food manufacturing 3112 Soybean and other oilseed processing
42 Wholesale trade 1111 Grain farming
484 Truck transportation 3111 Other animal food manufacturing
3116 Animal (except poultry) slaughtering, rendering, and processing
42 Wholesale trade
55 Management of companies and enterprises 3116 Animal (except poultry) slaughtering, rendering, and processing
3112 Flour milling and malt manufacturing 3112 Flour milling and malt manufacturing 2211 Electric power generation, transmission, and
distribution 3324 Metal can, box, and other metal container
(light gauge) manufacturing 482 Rail transportation 484 Truck transportation 55 Management of companies and enterprises 3112 Wet corn milling Consumer Industries for Typical Regional Industry
112 Dairy cattle and milk production 3111 Other animal food manufacturing 112 Poultry and egg production
3114 Fruit and vegetable preserving and specialty Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 42 Wholesale trade
55 Management of companies and enterprises 1112 Vegetable and melon farming
3116 Animal (except poultry) slaughtering, rendering, and processing
484 Truck transportation
3222 Paperboard container manufacturing 3114 Frozen food manufacturing 3114 Frozen food manufacturing 1113 Fruit farming 484 Truck transportation 1112 Vegetable and melon farming 3114 Fruit and vegetable canning, pickling, and drying 3115 Cheese manufacturing
2211 Electric power generation, transmission, and distribution
1113 Fruit farming
3324 Metal can, box, and other metal container (light gauge) manufacturing
Consumer Industries for Typical Regional Industry
3114 Frozen food manufacturing 3114 Fruit and vegetable canning, pickling, and
drying 722 Food services and drinking places 622 Hospitals 3121 Soft drink and ice manufacturing 3118 Bread and bakery product manufacturing
8-15 Wisconsin Economic Future Study
3115 Dairy product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Dairy cattle and milk production 112 Dairy cattle and milk production 3115 Cheese manufacturing 3115 Cheese manufacturing
42 Wholesale trade 3115 Fluid milk and butter manufacturing
3116 Animal slaughtering and processing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3116 Animal (except poultry) slaughtering, rendering,
and processing 112 Cattle ranching and farming
112 Cattle ranching and farming 3116 Animal (except poultry) slaughtering, rendering, and processing
484 Truck transportation 112 Poultry and egg production
112 Animal production, except cattle and poultry and eggs
112 Animal production, except cattle and poultry and eggs
55 Management of companies and enterprises 3116 Poultry processing 42 Wholesale trade 55 Management of companies and enterprises 484 Truck transportation 42 Wholesale trade Consumer Industries for Typical Regional Industry 3116 Animal (except poultry) slaughtering,
rendering, and processing 3114 Frozen food manufacturing 722 Food services and drinking places 3111 Other animal food manufacturing 622 Hospitals
8-16 Wisconsin Economic Future Study
3118 Bakeries and tortilla manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3112 Flour milling and malt manufacturing 3112 Flour milling and malt manufacturing 55 Management of companies and enterprises
42 Wholesale trade 42 Wholesale trade 484 Truck transportation 3222 Paperboard container manufacturing 2211 Electric power generation, transmission, and
distribution
Consumer Industries for Typical Regional Industry 722 Food services and drinking places 3118 Bread and bakery product manufacturing 611 Junior colleges, colleges, universities, and
professional schools 3132 Fabric mills Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3252 Artificial and synthetic fibers and filaments
manufacturing 55 Management of companies and enterprises 3131 Fiber, yarn, and thread mills 2211 Electric power generation, transmission, and
distribution 3251 Petrochemical manufacturing
3132 Broadwoven fabric mills 3133 Textile and fabric finishing mills 484 Truck transportation 3252 Plastics material and resin manufacturing 3256 Soap and cleaning compound manufacturing 42 Wholesale trade 3222 Paperboard container manufacturing 55 Management of companies and enterprises 23 Maintenance and repair construction of
nonresidential maintenance and repair 3256 Soap and cleaning compound manufacturing
3221 Paper mills 1119 Cotton farming 2211 Electric power generation, transmission, and
distribution Consumer Industries for Typical Regional Industry 3221 Paper mills 3222 Sanitary paper product manufacturing 3132 Broadwoven fabric mills 3361 Heavy duty truck manufacturing 3132 Nonwoven fabric mills 3261 Plastics packaging materials and unlaminated
film and sheet manufacturing
8-17 Wisconsin Economic Future Study
3212 Plywood and engineered wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 484 Truck transportation 42 Wholesale trade 113 Logging 484 Truck transportation 3211 Sawmills and wood preservation 3212 Veneer and plywood manufacturing 3212 Reconstituted wood product manufacturing 3211 Sawmills and wood preservation 443 Retail - Electronics and appliances 55 Management of companies and enterprises 3241 Petroleum refineries 2211 Electric power generation, transmission, and
distribution n.a. Federal electric utilities
3219 Wood windows and doors and millwork 3212 Veneer and plywood manufacturing 1119 All other crop farming 3255 Adhesive manufacturing 5413 Architectural, engineering, and related services 5191 Internet publishing and broadcasting 3251 Petrochemical manufacturing 3325 Hardware manufacturing Consumer Industries for Typical Regional Industry 3212 Veneer and plywood manufacturing
3219 Wood windows and doors and millwork
23 Construction of other new nonresidential structures
23 Construction of other new residential structures
23 Construction of new nonresidential commercial and health care structures
3371 Wood kitchen cabinet and countertop manufacturing
3219 Other wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3211 Sawmills and wood preservation 3211 Sawmills and wood preservation 42 Wholesale trade 3219 Wood windows and doors and millwork 3219 Wood windows and doors and millwork 484 Truck transportation 484 Truck transportation 55 Management of companies and enterprises 55 Management of companies and enterprises 3212 Veneer and plywood manufacturing Consumer Industries for Typical Regional Industry 3221 Paper mills 3219 Wood windows and doors and millwork 23 Construction of other new nonresidential
structures 23 Construction of other new residential
structures 23 Construction of new nonresidential
commercial and health care structures 3221 Paperboard Mills
8-18 Wisconsin Economic Future Study
3221 Pulp, paper, and paperboard mills Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade 2211 Electric power generation, transmission, and
distribution 113 Logging
55 Management of companies and enterprises 2212 Natural gas distribution 484 Truck transportation 2211 Electric power generation, transmission, and
distribution 2212 Natural gas distribution 55 Management of companies and enterprises 113 Logging 3211 Sawmills and wood preservation 3222 Paperboard container manufacturing 3112 Wet corn milling 3221 Paper mills 484 Truck transportation 23 Maintenance and repair construction of
nonresidential maintenance and repair 3241 Petroleum refineries
482 Rail transportation
Consumer Industries for Typical Regional Industry 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 3222 Sanitary paper product manufacturing 3222 Paperboard container manufacturing
3222 Converted paper product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3221 Paper mills 3221 Paper mills 42 Wholesale trade 3221 Paperboard Mills 55 Management of companies and enterprises 42 Wholesale trade 3222 Sanitary paper product manufacturing 3222 Sanitary paper product manufacturing 3261 Plastics packaging materials and unlaminated film
and sheet manufacturing 55 Management of companies and enterprises
484 Truck transportation 3255 Adhesive manufacturing 3222 Paperboard container manufacturing 3251 Petrochemical manufacturing 3221 Paperboard Mills 2211 Electric power generation, transmission, and
distribution
Consumer Industries for Typical Regional Industry 3221 Paper mills 3222 Sanitary paper product manufacturing 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing
8-19 Wisconsin Economic Future Study
3231 Printing and related support activities Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3221 Paper mills 3221 Paper mills 42 Wholesale trade 42 Wholesale trade 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 55 Management of companies and enterprises 3222 Sanitary paper product manufacturing 3222 Sanitary paper product manufacturing 55 Management of companies and enterprises 3259 Printing ink manufacturing 531 Real estate 522 Nondepository credit intermediation and
related activities 3231 Printing 3231 Support activities for printing Consumer Industries for Typical Regional Industry 55 Management of companies and enterprises 42 Wholesale trade 52A Monetary authorities and depository credit
intermediation 5111 Book publishers 3221 Paper mills 722 Food services and drinking places 3261 Plastics product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3261 Plastics packaging materials and unlaminated film
and sheet manufacturing 5191 Internet publishing and broadcasting
42 Wholesale trade 3311 Iron and steel mills and ferroalloy manufacturing
3222 Paperboard container manufacturing 8111 Car washes 55 Management of companies and enterprises 2122 Iron ore mining 3252 Plastics material and resin manufacturing 5191 Internet publishing and broadcasting 2211 Electric power generation, transmission, and
distribution 3311 Iron and steel mills and ferroalloy
manufacturing 52A Monetary authorities and depository credit
intermediation 8111 Car washes
484 Truck transportation 2122 Iron ore mining 23 Maintenance and repair construction of
nonresidential maintenance and repair
3221 Paper mills Consumer Industries for Typical Regional Industry 3221 Paper mills 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 3261 Plastics packaging materials and unlaminated
film and sheet manufacturing 3222 Sanitary paper product manufacturing 3115 Cheese manufacturing
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3262 Rubber product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3252 Synthetic rubber manufacturing 55 Management of companies and enterprises 3251 Petrochemical manufacturing 2211 Electric power generation, transmission, and
distribution 42 Wholesale trade
3252 Synthetic rubber manufacturing 3251 Carbon black manufacturing 52A Monetary authorities and depository credit
intermediation 3262 Other rubber product manufacturing
3222 Paperboard container manufacturing 55 Management of companies and enterprises 3261 Plastics packaging materials and unlaminated film
and sheet manufacturing 3149 All other textile product mills
484 Truck transportation 3252 Plastics material and resin manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3251 Other basic organic chemical manufacturing
113 Forest nurseries, forest products, and timber tracts
Consumer Industries for Typical Regional Industry 3361 Heavy duty truck manufacturing 3362 Motor vehicle body manufacturing 3331 Farm machinery and equipment
manufacturing 3363 Motor vehicle parts manufacturing 3315 Foundries Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 2211 Electric power generation, transmission, and
distribution 5614 Business support services
23 Maintenance and repair construction of nonresidential maintenance and repair
3313 Aluminum product manufacturing from purchased aluminum
52A Monetary authorities and depository credit intermediation
3273 Concrete pipe, brick, and block manufacturing
5617 Services to buildings and dwellings 3312 Steel product manufacturing from purchased
steel
484 Truck transportation Consumer Industries for Typical Regional Industry 3363 Motor vehicle parts manufacturing 3332 Other industrial machinery manufacturing 3339 Material handling equipment manufacturing
3339 Other general purpose machinery manufacturing
8-21 Wisconsin Economic Future Study
3326 Spring and wire product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 2122 Iron ore mining 484 Truck transportation 1119 All other crop farming 3312 Steel product manufacturing from purchased
3326 Spring and wire product manufacturing 3241 All other petroleum and coal products manufacturing
52A Monetary authorities and depository credit intermediation
3323 Plate work and fabricated structural product manufacturing
3261 Plastics packaging materials and unlaminated film and sheet manufacturing
2211 Electric power generation, transmission, and distribution
517 Telecommunications 23 Maintenance and repair construction of
nonresidential maintenance and repair
531 Real estate Consumer Industries for Typical Regional Industry 3361 Heavy duty truck manufacturing 3326 Spring and wire product manufacturing 3362 Motor vehicle body manufacturing 3312 Steel product manufacturing from purchased
steel 3361 Heavy duty truck manufacturing
8-22 Wisconsin Economic Future Study
3327 Machine shops; turned product; and screw, nut, and bolt manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3313 Aluminum product manufacturing from
52A Monetary authorities and depository credit intermediation
3399 Office supplies (except paper) manufacturing
531 Real estate 3241 All other petroleum and coal products manufacturing
2211 Electric power generation, transmission, and distribution
3323 Plate work and fabricated structural product manufacturing
722 Food services and drinking places 522 Nondepository credit intermediation and related
activities
5419 All other miscellaneous professional, scientific, and technical services
484 Truck transportation 517 Telecommunications 3315 Ferrous metal foundries Consumer Industries for Typical Regional Industry
3221 Paper mills 3361 Heavy duty truck manufacturing
3332 Other industrial machinery manufacturing 3363 Motor vehicle parts manufacturing
3222 Sanitary paper product manufacturing
3327 Machine shops
3315 Ferrous metal foundries
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
8-23 Wisconsin Economic Future Study
3328 Coating, engraving, and heat treating metals Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
1119 All other crop farming
3312 Steel product manufacturing from purchased steel
3399 Office supplies (except paper) manufacturing
8123 Dry-cleaning and laundry services 3241 All other petroleum and coal products manufacturing
3255 Paint and coating manufacturing 3323 Plate work and fabricated structural product manufacturing
52A Monetary authorities and depository credit intermediation
2212 Natural gas distribution 23 Maintenance and repair construction of
nonresidential maintenance and repair
517 Telecommunications 484 Truck transportation 531 Real estate 722 Food services and drinking places Consumer Industries for Typical Regional Industry 3221 Paper mills
3222 Sanitary paper product manufacturing
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
3362 Motor vehicle body manufacturing 3361 Heavy duty truck manufacturing 3315 Ferrous metal foundries 3328 Coating, engraving, heat treating and allied
activities
8-24 Wisconsin Economic Future Study
3329 Other fabricated metal product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 3329 Ball and roller bearing manufacturing 2122 Iron ore mining 55 Management of companies and enterprises 1119 All other crop farming
3312 Steel product manufacturing from purchased steel
3399 Office supplies (except paper) manufacturing
484 Truck transportation 3241 All other petroleum and coal products
manufacturing
2211 Electric power generation, transmission, and distribution
3323 Plate work and fabricated structural product manufacturing
3315 Ferrous metal foundries
52A Monetary authorities and depository credit intermediation
3329 Fabricated pipe and pipe fitting manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry 3329 Ball and roller bearing manufacturing 3332 Other industrial machinery manufacturing 3339 Material handling equipment manufacturing 3363 Motor vehicle parts manufacturing 3361 Heavy duty truck manufacturing
3332 Industrial machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
purchased aluminum 3315 Ferrous metal foundries 3326 Spring and wire product manufacturing 3329 Ball and roller bearing manufacturing 3345 Watch, clock, and other measuring and
manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 517 Telecommunications 3312 Steel product manufacturing from purchased
steel
Consumer Industries for Typical Regional Industry
3221 Paper mills 3332 Other industrial machinery manufacturing 3231 Printing
8-25 Wisconsin Economic Future Study
3336 Turbine and power transmission equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 3329 Ball and roller bearing manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 3315 Ferrous metal foundries 3326 Spring and wire product manufacturing 484 Truck transportation 3345 Watch, clock, and other measuring and
controlling device manufacturing 2211 Electric power generation, transmission, and
distribution 3345 Totalizing fluid meters and counting devices
manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair
517 Telecommunications Consumer Industries for Typical Regional Industry
3361 Heavy duty truck manufacturing 3331 Lawn and garden equipment manufacturing 3339 Material handling equipment manufacturing 3366 Ship building and repairing 3332 Other industrial machinery manufacturing 3339 Other general purpose machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 3315 Ferrous metal foundries 3313 Aluminum product manufacturing from
purchased aluminum 484 Truck transportation 3326 Spring and wire product manufacturing 3329 Ball and roller bearing manufacturing 3345 Watch, clock, and other measuring and
manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 3312 Steel product manufacturing from purchased
steel
Consumer Industries for Typical Regional Industry 3339 Material handling equipment manufacturing 23 Construction of new nonresidential
commercial and health care structures 3361 Heavy duty truck manufacturing 23 Construction of other new nonresidential
structures
8-26 Wisconsin Economic Future Study
3361 Motor vehicle manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3363 Motor vehicle parts manufacturing 55 Management of companies and enterprises 42 Wholesale trade 3363 Motor vehicle parts manufacturing 3336 Other engine equipment manufacturing 484 Truck transportation 3344 Semiconductor and related device
manufacturing 3222 Paperboard container manufacturing 3362 Motor vehicle body manufacturing 2212 Natural gas distribution 55 Management of companies and enterprises Consumer Industries for Typical Regional Industry 3362 Motor vehicle body manufacturing 3361 Heavy duty truck manufacturing 3362 Motor vehicle body and trailer manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3345 Totalizing fluid meters and counting devices
manufacturing 3361 Heavy duty truck manufacturing 3261 Urethane and other foam product (except
polystyrene) manufacturing 42 Wholesale trade 2122 Iron ore mining 3362 Motor vehicle body manufacturing 3323 Plate work and fabricated structural product
manufacturing 484 Truck transportation 3141 Carpet and rug mills 3399 Office supplies (except paper) manufacturing 3313 Aluminum product manufacturing from
purchased aluminum Consumer Industries for Typical Regional Industry 3362 Motor vehicle body manufacturing 3361 Heavy duty truck manufacturing 3363 Motor vehicle parts manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3363 Motor vehicle parts manufacturing 42 Wholesale trade 55 Management of companies and enterprises 3315 Ferrous metal foundries 42 Wholesale trade 484 Truck transportation 3311 Iron and steel mills and ferroalloy
manufacturing 3363 Motor vehicle parts manufacturing 3315 Nonferrous metal foundries 3312 Steel product manufacturing from purchased
steel 3315 Ferrous metal foundries
3323 Plate work and fabricated structural product manufacturing
3327 Machine shops 3363 Motor vehicle parts manufacturing 55 Management of companies and enterprises Consumer Industries for Typical Regional Industry 3361 Heavy duty truck manufacturing 3363 Motor vehicle parts manufacturing
3331 Lawn and garden equipment manufacturing 3362 Motor vehicle body manufacturing
8-27 Wisconsin Economic Future Study
3366 Ship and boat building Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3336 Other engine equipment manufacturing 42 Wholesale trade 42 Wholesale trade
52A Monetary authorities and depository credit intermediation
55 Management of companies and enterprises
533 Lessors of nonfinancial intangible assets 533 Lessors of nonfinancial intangible assets 5413 Architectural, engineering, and related services 3345 Search, detection, and navigation instruments
manufacturing 517 Telecommunications 3363 Motor vehicle parts manufacturing 56A Management, scientific, and technical consulting
services 56A Management, scientific, and technical
Consumer Industries for Typical Regional Industry 3361 Heavy duty truck manufacturing 3366 Ship building and repairing 3366 Boat building 3371 Household and institutional furniture Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 517 Telecommunications 3342 Other communications equipment
manufacturing 484 Truck transportation 711 Independent artists, writers, and performers 55 Management of companies and enterprises 8112 Electronic and precision equipment repair and
maintenance 52A Monetary authorities and depository credit
3211 Sawmills and wood preservation 3162 Footwear manufacturing 3222 Paperboard container manufacturing 5419 All other miscellaneous professional, scientific,
and technical services
23 Maintenance and repair construction of nonresidential maintenance and repair
531 Real estate 722 Food services and drinking places Consumer Industries for Typical Regional Industry 23 Construction of new residential permanent
site single- and multi-family structures 23 Construction of other new residential
structures 23 Construction of new nonresidential
commercial and health care structures
8-28 Wisconsin Economic Future Study
711 Performing arts, spectator sports, and related industries Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 711 Spectator sports 711 Promoters of performing arts and sports and
agents for public figures 711 Promoters of performing arts and sports and
agents for public figures 711 Spectator sports
5242 Insurance agencies, brokerages, and related activities
711 Independent artists, writers, and performers
55 Management of companies and enterprises 531 Real estate 531 Real estate 56A Management, scientific, and technical
consulting services 3231 Printing 55 Management of companies and enterprises 5418 Advertising and related services 5411 Legal services 5241 Insurance carriers 5412 Accounting, tax preparation, bookkeeping, and
payroll services 485 Transit and ground passenger transportation 5242 Insurance agencies, brokerages, and related
activities 5241 Insurance carriers 5418 Advertising and related services 56A Employment services Consumer Industries for Typical Regional Industry 711 Spectator sports 5151 Radio and television broadcasting 813 Civic, social, professional, and similar
organizations 711 Promoters of performing arts and sports and
agents for public figures 55 Management of companies and enterprises 722 Food services and drinking places 52A Monetary authorities and depository credit
intermediation 711 Independent artists, writers, and performers
8-29 Wisconsin Economic Future Study
8.3.3 Top Firms1 by Driver Industry in the East Central Region 2123 Nonmetallic mineral mining and quarrying
Company Industry Definition Employment
Size County
Daanen & Janssen Inc. Other Crushed and Broken Stone
Mining and Quarrying 20-49 Brown
Halquist Stone Co. Dimension Stone Mining and
Quarrying 20 - 49 Calumet Door County Custom Stone Inc. AZS3 20 - 49 Door
ECC-International All Other Nonmetallic Mineral
Mining 20 - 49 Outagamie
Murphy Concrete & Construction Other Crushed and Broken Stone
Size County Central Avian & Small Animal Dog and Cat Food Manufacturing 1000+ Calumet Milk Products Inc. Other Animal Food Manufacturing 50 - 99 Calumet Fox Valley Alfalfa Mill Inc. Other Animal Food Manufacturing 20 - 49 Calumet Milk Specialties Global Other Animal Food Manufacturing 20 - 49 Calumet
3114 Fruit and vegetable preserving and specialty
Company Industry Definition Employment
Size County
Nestle Pizza Division Frozen Specialty Food
Manufacturing 1000+ Outagamie
Birds Eye Foods Inc. Frozen Fruit, Juice, and Vegetable
Manufacturing 250 - 499 Brown Seneca Foods Corp. Fruit and Vegetable Canning 100 - 249 Oconto
Orv's Pizza Frozen Specialty Food
Manufacturing 100 - 249 Outagamie Allens Inc. Fruit and Vegetable Canning 20 - 49 Brown
1 Top firms are identified by an establishment's employment by each driver industry in the East Central Region. Those establishments of companies having 20 employees or more are listed in the tables.
8-30 Wisconsin Economic Future Study
3115 Dairy product manufacturing
Company Industry Definition Employment
Size County Bel Gioioso Cheese Inc. Cheese Manufacturing 100 - 249 Brown DCI Cheese Co. Cheese Manufacturing 100 - 249 Brown Morning Glory Dairy Fluid Milk Manufacturing 100 - 249 Brown Land O'Lakes Industrial Cheese Cheese Manufacturing 100 - 249 Calumet Churny Co. Inc. Cheese Manufacturing 100 - 249 Waupaca Land O'Lakes Inc. Cheese Manufacturing 50 - 99 Brown Thiel Cheese & Ingredients LLC Cheese Manufacturing 50 - 99 Calumet Alto Dairy Cheese Manufacturing 50 - 99 Outagamie Foremost Farms USA Cheese Manufacturing 50 - 99 Outagamie Weyauwega Star Dairy Cheese Manufacturing 50 - 99 Waupaca Foremost Farms USA Cheese Manufacturing 20 - 49 Calumet Springside Cheese Corp. Cheese Manufacturing 20 - 49 Oconto Agropur Inc. Cheese Manufacturing 20 - 49 Outagamie
3116 Animal slaughtering and processing
Company Industry Definition Employment
Size County American Foods Group LLC Animal (except Poultry) Slaughtering 1000+ Brown Sara Lee Foods Animal (except Poultry) Slaughtering 1000+ Outagamie Jbs Packerland Animal (except Poultry) Slaughtering 100 - 249 Brown Provimi Foods Animal (except Poultry) Slaughtering 100 - 249 Outagamie Salm Partners LLC Animal (except Poultry) Slaughtering 50 - 99 Brown American Foods Group LLC Animal (except Poultry) Slaughtering 20 - 49 Brown Jbs Packerland Animal (except Poultry) Slaughtering 20 - 49 Brown
8-31 Wisconsin Economic Future Study
3118 Bakeries and tortilla manufacturing
Company Industry Definition Employment
Size County Breadsmith Retail Bakeries 20-49 Outagamie Bimbo Bakeries USA Commercial Bakeries 20-49 Winnebago Schoenberger's Pastry Shops Commercial Bakeries 20-49 Winnebago Port City Bakery Inc. Commercial Bakeries 1000+ Brown Alive & Kickin' Pizza Crust Commercial Bakeries 100 - 249 Brown Alive & Kickin' Pizza Crust Commercial Bakeries 100 - 249 Brown Grandma's Swedish Bakery Retail Bakeries 50 - 99 Door Bimbo Bakeries USA Commercial Bakeries 20 - 49 Brown Breadsmith Retail Bakeries 20 - 49 Brown Main Street Market Retail Bakeries 20 - 49 Brown Not By Bread Alone Retail Bakeries 20 - 49 Brown Simple Simon Bakery Retail Bakeries 20 - 49 Outagamie
3212 Plywood and engineered wood product manufacturing
Company Industry Definition Employment
Size County
Great Lakes Veneer Inc. Hardwood Veneer and Plywood
Manufacturing 250 - 499 Waupaca
Marion Plywood Corp. Hardwood Veneer and Plywood
Manufacturing 250 - 499 Waupaca
Eggers Industries Hardwood Veneer and Plywood
Manufacturing 250 - 499 Winnebago
8-32 Wisconsin Economic Future Study
3219 Other wood product manufacturing
Company Industry Definition Employment
Size County LaForce Inc. Other Millwork (including Flooring) 250 - 499 Brown
Algoma Hardwoods Inc. Wood Window and Door
Manufacturing 250 - 499 Kewaunee Frontline Building Products Other Millwork (including Flooring) 100 - 249 Brown
Owens Door Co. All Other Miscellaneous Wood
Product Manufacturing 100 - 249 Shawano
JELD-WEN Windows & Doors Wood Window and Door
Manufacturing 100 - 249 Winnebago Oshkosh Door Co. Other Millwork (including Flooring) 100 - 249 Winnebago
Tower Pallet Co. Inc. Wood Container and Pallet
Manufacturing 50 - 99 Brown
Konz Wood Products Co. Wood Container and Pallet
Manufacturing 50 - 99 Outagamie Millwork Distributors Inc. Other Millwork (including Flooring) 50 - 99 Winnebago Midwest Moulding & Door Inc. Other Millwork (including Flooring) 20 - 49 Brown Prestige Custom Cabinetry Other Millwork (including Flooring) 20 - 49 Brown
Rol-Tec Inc. All Other Miscellaneous Wood
Product Manufacturing 20 - 49 Brown
Custom Pallett & Crate Inc. Wood Container and Pallet
Manufacturing 20 - 49 Oconto
Fox Valley Wood Products Inc. Wood Container and Pallet
Manufacturing 20 - 49 Outagamie Valley Planing Mill Other Millwork (including Flooring) 20 - 49 Outagamie CTI Other Millwork (including Flooring) 20 - 49 Kewaunee Arcways Inc. Other Millwork (including Flooring) 20 - 49 Winnebago
L & S Electric Inc. All Other Miscellaneous General
Purpose Machinery Manufacturing 20 - 49 Outagamie
QComp Technologies Inc. All Other Miscellaneous General
Purpose Machinery Manufacturing 20 - 49 Outagamie
Titan Industries Inc. Conveyor and Conveying Equipment
Manufacturing 20 - 49 Outagamie Valley Tissue Packaging Inc. Packaging Machinery Manufacturing 20 - 49 Outagamie
Contrx Industries Inc. Overhead Traveling Crane, Hoist, and
Monorail System Manufacturing 20 - 49 Winnebago
Diagnostic Group All Other Miscellaneous General
Purpose Machinery Manufacturing 20 - 49 Winnebago
K Kranski & Sons Inc. All Other Miscellaneous General
Purpose Machinery Manufacturing 20 - 49 Winnebago
Keenline Conveyor Systems Conveyor and Conveying Equipment
Manufacturing 20 - 49 Winnebago
Next Conveyor Conveyor and Conveying Equipment
Manufacturing 20 - 49 Winnebago 3361 Motor vehicle manufacturing
Company Industry Definition Employment
Size County Oshkosh Corp. Automobile Manufacturing 1000+ Winnebago Seagrave Fire Apparatus LLC Heavy Duty Truck Manufacturing 250 - 499 Waupaca
3362 Motor vehicle body and trailer manufacturing
Company Industry Definition Employment
Size County Caspers' Truck Equipment Motor Vehicle Body Manufacturing 20 - 49 Outagamie
Hawk Trailers Travel Trailer and Camper
Manufacturing 20 - 49 Waupaca
8-46 Wisconsin Economic Future Study
3363 Motor vehicle parts manufacturing
Company Industry Definition Employment
Size County
Karl Schmidt Unisia Inc. Other Motor Vehicle Parts
Manufacturing 1000+ Marinette
AxleTech International Other Motor Vehicle Parts
Manufacturing 100 - 249 Winnebago
Utility Sales & Service Other Motor Vehicle Parts
Manufacturing 20 - 49 Outagamie 3366 Ship and boat building
Company Industry Definition Employment
Size County Bay Shipbuilding Co. Ship Building and Repairing 1000+ Door Fincantieri Marine Group Ship Building and Repairing 1000+ Marinette Marinette Marine Corp Ship Building and Repairing 1000+ Marinette Palmer Johnson Yachts Ship Building and Repairing 250 - 499 Door Custom Marine Inc. Boat Building 50 - 99 Winnebago Appleton Marine Inc. Boat Building 20 - 49 Outagamie
8-47 Wisconsin Economic Future Study
3371 Household and institutional furniture
Company Industry Definition Employment
Size County
Ki Inc. Institutional Furniture
Manufacturing 1000+ Brown
Original Equipment Industries Institutional Furniture
Granite Co. Wood Kitchen Cabinet and Countertop Manufacturing 20 - 49 Brown
Oak Front Custom Cabinetry Wood Kitchen Cabinet and Countertop Manufacturing 20 - 49 Brown
Renew A Kitchen Wood Kitchen Cabinet and Countertop Manufacturing 20 - 49 Brown
Stone Creations Wood Kitchen Cabinet and Countertop Manufacturing 20 - 49 Shawano
7112 Spectator sports
Company Industry Definition Employment
Size County Green Bay Packers Inc. Sports Teams and Clubs 100 - 249 Brown Wisconsin International Raceway Inc. Racetracks 100 - 249 Outagamie Thunderhill Raceway Racetracks 20 - 49 Door
8-48 Wisconsin Economic Future Study
7113 Promoters of performing arts and sports
Company Industry Definition Employment
Size County
Brown Arena-Veterans Memorial
Promoters of Performing Arts, Sports, and Similar Events with
Facilities 50 - 99 Brown
De Pere Ice Arena
Promoters of Performing Arts, Sports, and Similar Events with
Facilities 20 - 49 Brown
8-49 Wisconsin Economic Future Study
8.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, East Central Region
Table 8-3 Employment in the East Central Region’s Driver Industries, 2000-2011 (Unit: Persons)
NAICS Title 2000 2003 2007 2008 2009 2010 2011
2123 Nonmetallic mineral mining and quarrying 760 831 1,045 1,116 1,117 1,143 1,176
3336 Turbine and power transmission eqmt manufacturing -27.0% -32.5% 17.8%
3339 Other general purpose machinery manufacturing -24.5% 0.2% -15.8%
3361 Motor vehicle manufacturing 2.1% 36.1% 5.7%
3362 Motor vehicle body and trailer manufacturing 18.9% 30.7% -1.8%
3363 Motor vehicle parts manufacturing -2.5% 24.8% 1.2%
3366 Ship and boat building -13.1% 26.8% -2.0%
3371 Household and institutional furniture manufacturing -14.4% -33.9% -10.5%
7112 Spectator sports 30.1% 42.6% -10.4%
7113 Promoters of performing arts and sports 3.7% 206.5% 18.6%
8-51 Wisconsin Economic Future Study
Table 8-5 Labor Location Quotients* - East Central Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 2123 Nonmetallic mineral mining and quarrying 2.38 2.91 3.19 3111 Animal food manufacturing 3.09 3.61 2.85 3114 Fruit and vegetable preserving and specialty 5.01 4.44 4.83 3115 Dairy product manufacturing 7.78 7.89 7.87 3116 Animal slaughtering and processing 2.75 2.81 2.60 3118 Bakeries and tortilla manufacturing 0.89 1.26 1.88 3132 Fabric mills 1.24 2.40 2.53 3212 Plywood & engineered wood product manufacturing 3.32 3.02 2.97 3219 Other wood product manufacturing 2.63 2.94 2.65 3221 Pulp, paper, and paperboard mills 20.56 20.40 19.37 3222 Converted paper product manufacturing 8.61 9.50 9.53 3231 Printing and related support activities 3.19 3.52 4.22 3261 Plastics product manufacturing 1.86 2.16 2.28 3262 Rubber product manufacturing 2.93 2.95 3.85 3315 Foundries 4.30 4.55 5.12 3326 Spring and wire product manufacturing 2.11 2.93 3.36 3327 Machine shops and threaded product manufacturing 1.38 1.87 2.20 3328 Coating, engraving, & heat treating metals 1.89 2.62 3.22 3329 Other fabricated metal product manufacturing 1.69 2.19 2.54 3332 Industrial machinery manufacturing 9.16 7.50 7.11 3336 Turbine and power transmission equipment manufacturing 2.76 1.78 2.21 3339 Other general purpose machinery manufacturing 2.89 2.85 2.77 3361 Motor vehicle manufacturing 1.92 3.19 4.16 3362 Motor vehicle body and trailer manufacturing 2.33 3.36 4.02 3363 Motor vehicle parts manufacturing 1.80 3.04 3.81 3366 Ship and boat building 1.50 1.89 2.15 3371 Household and institutional furniture manufacturing 2.10 1.74 2.12 7112 Spectator sports 1.31 1.80 1.70 7113 Promoters of performing arts and sports 0.65 1.74 1.98
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
8-52 Wisconsin Economic Future Study
Table 8-6 Gross Product in the East Central Region's Driver Industries, 2000-2011
NAICS Title 2000 2003 2007 2008 2009 2010 2011
2123 Nonmetallic mineral mining and quarrying $94,525,634 $98,093,441 $105,783,684 $121,092,888 $122,440,801 $170,672,925 $199,622,219
3222 Converted paper product manufacturing 13.88 12.80 13.06
3231 Printing and related support activities 4.58 5.38 6.71 3261 Plastics product manufacturing 2.61 3.35 3.77 3262 Rubber product manufacturing 1.61 2.63 2.67 3315 Foundries 5.55 4.79 5.81 3326 Spring and wire product manufacturing 1.65 2.04 2.33 3327 Machine shops and threaded product manufacturing 1.54 2.14 2.33
3328 Coating, engraving, & heat treating metals 2.15 2.86 3.37 3329 Other fabricated metal product manufacturing 2.06 2.80 2.98 3332 Industrial machinery manufacturing 8.83 8.47 8.26 3336 Turbine and power transmission eqmt manufacturing 2.31 1.69 1.68 3339 Other general purpose machinery manufacturing 3.01 3.32 3.08
3361 Motor vehicle manufacturing 1.75 4.11 6.09
3362 Motor vehicle body and trailer manufacturing 3.61 5.38 7.97 3363 Motor vehicle parts manufacturing 1.36 2.42 2.87 3366 Ship and boat building 1.96 2.51 2.82 3371 Household and institutional furniture manufacturing 2.81 3.54 3.13 7112 Spectator sports 2.21 2.11 2.64 7113 Promoters of performing arts and sports 0.29 2.73 2.54
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
8-56
Table 8-9 Productivity (Gross Product per Employee) of Driver Industries, East Central Region, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011
2123 Nonmetallic mineral mining and quarrying $124,376 $118,043 $101,228 $108,506 $109,616 $149,320 $169,747
3362 Motor vehicle body and trailer manufacturing $121,131 $110,842 $78,674 $96,183 $111,090 $140,200 $152,026
8-57
Table 8-9 Productivity (Gross Product per Employee) of Driver Industries, East Central Region, 2000-2011 (continued) NAICS Title 2000 2003 2007 2008 2009 2010 2011
3363 Motor vehicle parts manufacturing $75,970 $77,359 $59,898 $56,803 $55,429 $67,861 $71,946
3366 Ship and boat building $104,274 $90,587 $91,293 $87,740 $92,140 $105,686 $108,029
7113 Promoters of performing arts and sports $26,928 $28,429 $87,104 $91,845 $93,469 $92,047 $71,283
9-1 Wisconsin Economic Future Study
9 North Region
9.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis for the North Region, as well as detailed information related to each of the regional driver industries identified. For the purposes of this analysis, the North Region is defined to include the counties of Ashland, Bayfield, Burnett, Douglas, Florence, Forest, Iron, Oneida, Price, Rusk, Sawyer, Vilas, and Washburn. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the North Region are provided in a tabular form. Tables in the final section in this chapter (9.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries.
9.2 Summary of Regional Driver Industries & Industry Clusters The North Region of Wisconsin has 16 regional driver industries at the 4-digit level NAICS (10 drivers at the 3-digit level). The regional driver industries of the North Region are shown below.
NAICS Industry description 321 Wood product manufacturing (partial)
3211 Sawmills and wood preservation 3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing
3221 Pulp, paper, and paperboard mills 3231 Printing and related support activities 3261 Plastics product manufacturing 332 Fabricated metal product manufacturing (partial)
3327 Machine shops and threaded product manufacturing
3329 Other fabricated metal product manufacturing 333 Machinery manufacturing (partial)
3332 Industrial machinery manufacturing 3334 HVAC and commercial refrigeration equipment 3335 Metalworking machinery manufacturing 3339 Other general purpose machinery manufacturing
3371 Household and institutional furniture manufacturing 4233 Lumber and construction supply merchant wholesalers 7139 Other amusement and recreation industries 7212 RV parks and recreational camps
9-2 Wisconsin Economic Future Study
9.2.1 How Are the North Region’s Driver Industries Doing?
Interpretation: The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. It is important to keep in mind that each of the seven economic regions is unique. Therefore, it should not be surprising that the circumstances for industries that are alike, but are in different regions, are unique. They may not share the same fate. It would be helpful to a region to compare the status of similar industries in other regions. All four regional drivers identified in the driver and cluster analyses conducted in 2004 remain among the regional drivers of the current regional economy. However, these industries decreased the pace of growth compared to their dynamic identified by the 2004 study. Three of these four industries (except Other Wood Product Manufacturing) modestly declined in relative concentration in the region as well as significantly decreased their 2011 gross regional product when compared to that indicator from the 2004 study:
All three industry groups of the partial Wood Product Manufacturing 3-digit NAICS cluster (NAICS 321) — Sawmills and Wood Preservation, Plywood and Engineered Wood Product Manufacturing, and Other Wood Product Manufacturing — had LQ of greater than 15 but had declining output from 2008 through 2011.
Pulp, Paper and Paperboard Mills had LQ=3.3 and grew output by more than 25% from 2008 through 2011.
Two other clusters were identified using primarily the descriptive statistics over the driver and cluster analyses. Fabricated Metal Product Manufacturing (NAICS 332) and Machinery Manufacturing (NAICS 333) are represented by six 4-digit NAICS driver industries showing relative regional concentration at about LQ=2 and positive signs of output growth over the last three years. The region accounts for two recreational drivers, the Other Amusement and Recreation Industries (with 2011 gross regional product of $39 million and LQ above 2) and RV Parks and Recreational Camps with $12 million of 2011 output, LQ near 12, and positive growth of the output over the last three years.
9-4 Wisconsin Economic Future Study
9.2.2 Driver and Industry Cluster Relationships in the North Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 9-1 and 9-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 9-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to impact the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly impact the competitiveness of those driver industries. Table 9-2 is similar to Table 9-1 in that it shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 9-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
Table 9-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
2211 Electric power generation, transmission, and distribution 14 3
23 Maintenance and repair construction of nonresidential maintenance and repair 10 1
55 Management of companies and enterprises 10 6 722 Food services and drinking places 9 1 5617 Services to buildings and dwellings 9 2
522 Nondepository credit intermediation and related activities 6 3
5411 Legal services 5 1 517 Telecommunications 5 2 113 Logging 5 4 3211 Sawmills and wood preservation X 5 4 3212 Veneer and plywood manufacturing X 4 1 3219 Wood windows and doors and millwork X 4 1 482 Rail transportation 2 1
5412 Accounting, tax preparation, bookkeeping, and payroll services 2 1
3241 Petroleum refineries 2 6 ** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers.
9-5 Wisconsin Economic Future Study
Table 9-2 National Supplier Industries Common to Regional Driver Industries NAICS Title Count of Driver
National Suppliers
3345 Watch, clock, and other measuring and controlling device manufacturing 6
3241 Petroleum refineries 6 55 Management of companies and enterprises 6 42 Wholesale trade 5 113 Logging 4 3211 Sawmills and wood preservation 4 531 Real estate 4 484 Truck transportation 4 522 Nondepository credit intermediation and related activities 3 2211 Electric power generation, transmission, and distribution 3 3399 Office supplies (except paper) manufacturing 2 517 Telecommunications 2 5617 Services to buildings and dwellings 2
9-6 Wisconsin Economic Future Study
9.3 Detailed Descriptions of the Regional Driver Industries
9.3.1 Driver Industry Definitions 321 Wood Product Manufacturing (Complete) Industries in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. Production processes in Wood Product Manufacturing include sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industries mainly based on the specific products manufactured.
3211 Sawmills and wood preservation 3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing
3221 Pulp, Paper, and Paperboard Mills This industry group comprises establishments primarily engaged in manufacturing pulp, paper, or paperboard. 3231 Printing and Related Support Activities (NAICS 323) Industries in the Printing and Related Support Activities subsector print products, such as newspapers, books, labels, business cards, stationery, business forms, and other materials, and perform support activities, such as data imaging, platemaking services, and bookbinding. The support activities included here are an integral part of the printing industry, and a product (a printing plate, a bound book, or a computer disk or file) that is an integral part of the printing industry is almost always provided by these operations. Processes used in printing include a variety of methods used to transfer an image from a plate, screen, film, or computer file to some medium, such as paper, plastics, metal, textile articles, or wood. The most prominent of these methods is to transfer the image from a plate or screen to the medium (lithographic, gravure, screen, and flexographic printing). A rapidly growing new technology uses a computer file to directly "drive" the printing mechanism to create the image and new electrostatic and other types of equipment (digital or nonimpact printing). In contrast to many other classification systems that locate publishing of printed materials in manufacturing, NAICS classifies the publishing of printed products in Subsector 511, Publishing Industries (except Internet). Though printing and publishing are often carried out by the same enterprise (a newspaper, for example), it is less and less the case that these distinct activities are carried out in the same establishment. When publishing and printing are done in the same establishment, the establishment is classified in Sector 51, Information, in the appropriate NAICS industry even if the receipts for printing exceed those for publishing.
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This subsector includes printing on clothing, because the production process for that activity is printing, not clothing manufacturing. For instance, the printing of T-shirts is included in this subsector. In contrast, printing on fabric (or gray goods) is not included. This activity is part of the process of finishing the fabric and is included in the NAICS Textile Mills subsector in Industry 31331, Textile and Fabric Finishing Mills. 3261 Plastics Product Manufacturing This industry group comprises establishments primarily engaged in processing new or spent (i.e., recycled) plastics resins into intermediate or final products, using such processes as compression molding, extrusion molding, injection molding, blow molding, and casting. Within most of these industries, the production process is such that a wide variety of products can be made. 332 Fabricated Metal Product Manufacturing (Partial) Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery; computers and electronics; metal furniture; treat metals; and metal-formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining (used to shape individual pieces of metal), and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
3327 Machine shops and threaded product manufacturing 3329 Other fabricated metal product manufacturing
333 Machinery Manufacturing (Partial) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining that are used to shape individual pieces of metal. Processes, such as welding and assembling, are used to join separate parts together. Although these processes are similar to those used in metal-fabricating establishments, machinery manufacturing is different because it typically employs multiple metal-forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3332 Industrial machinery manufacturing 3334 HVAC and commercial refrigeration equipment 3335 Metalworking machinery manufacturing 3339 Other general purpose machinery manufacturing
3371 Household and Institutional Furniture This industry group comprises establishments manufacturing household-type furniture, such as living room, kitchen, and bedroom furniture and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches.
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4233 Lumber and Construction Supply Merchant Wholesalers (423 Merchant Wholesalers, Durable Goods)
Industries in the Merchant Wholesalers, Durable Goods subsector sell capital or durable goods to other businesses. Merchant wholesalers generally take title to the goods that they sell; in other words, they buy and sell goods on their own account. Durable goods are new or used items generally with a normal life expectancy of three years or more. Durable goods merchant wholesale trade establishments are engaged in wholesaling products, such as motor vehicles, furniture, construction materials, machinery and equipment (including household-type appliances), metals and minerals (except petroleum), sporting goods, toys and hobby goods, recyclable materials, and parts. 7139 Other Amusement and Recreation Industries (713 Amusement, Gambling, and Recreation Industries) Industries in the Amusement, Gambling, and Recreation Industries subsector (1) operate facilities where patrons can primarily engage in sports, recreation, amusement, or gambling activities and/or (2) provide other amusement and recreation services, such as supplying and servicing amusement devices in places of business operated by others; operating sports teams, clubs, or leagues engaged in playing games for recreational purposes; and guiding tours without using transportation equipment. This subsector does not cover all establishments providing recreational services. Other sectors of NAICS also provide recreational services. Providers of recreational services are often engaged in processes classified in other sectors of NAICS. For example, operators of resorts and hunting and fishing camps provide both accommodation and recreational facilities and services. These establishments are classified in Subsector 721, Accommodation, partly to reflect the significant costs associated with the provision of accommodation services and partly to ensure consistency with international standards. Likewise, establishments using transportation equipment to provide recreational and entertainment services, such as those operating sightseeing buses, dinner cruises, or helicopter rides, are classified in Subsector 48-49, Transportation and Warehousing. The industry groups in this subsector highlight particular types of activities: amusement parks and arcades, gambling industries, and other amusement and recreation industries. The groups, however, are not all inclusive of the activity. The Gambling Industries group does not provide for full coverage of gambling activities. For example, casino hotels are classified in Subsector 721, Accommodation; and horse and dog racing tracks are classified in Industry Group 7112, Spectator Sports. 7212 RV (Recreational Vehicle) Parks and Recreational Camps This industry comprises establishments primarily engaged in operating recreational vehicle parks and campgrounds and recreational and vacation camps. These establishments cater to outdoor enthusiasts and are characterized by the type of accommodation and by the nature and the range of recreational facilities and activities provided to their clients.
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9.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is ‘regionalized’ to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 9-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
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3211 Sawmills and wood preservation Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 113 Logging
3211 Sawmills and wood preservation 113 Forest nurseries, forest products, and timber tracts
42 Wholesale trade 3211 Sawmills and wood preservation
484 Truck transportation 1119 All other crop farming
2211 Electric power generation, transmission, and distribution
42 Wholesale trade
3219 Wood windows and doors and millwork 484 Truck transportation Consumer Industries for Typical Regional Industry
3221 Paper mills 3231 Printing 3222 Sanitary paper product manufacturing 3222 Paperboard container manufacturing
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
3212 Veneer, plywood, and engineered wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 484 Truck transportation
3211 Sawmills and wood preservation 113 Logging
2211 Electric power generation, transmission, and distribution
3211 Sawmills and wood preservation
3212 Veneer and plywood manufacturing 3212 Reconstituted wood product manufacturing 42 Wholesale trade 443 Retail - Electronics and appliances 484 Truck transportation 3212 Reconstituted wood product manufacturing 3219 Wood windows and doors and millwork Consumer Industries for Typical Regional Industry 3212 Veneer and plywood manufacturing 3219 Wood windows and doors and millwork 3212 Reconstituted wood product manufacturing 3219 Other wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3211 Sawmills and wood preservation 3211 Sawmills and wood preservation
42 Wholesale trade 42 Wholesale trade
113 Logging 3219 Wood windows and doors and millwork
3219 Wood windows and doors and millwork 484 Truck transportation
23 Maintenance and repair construction of nonresidential maintenance and repair
55 Management of companies and enterprises
531 Real estate 484 Truck transportation
2211 Electric power generation, transmission, and distribution
5617 Services to buildings and dwellings
48A Scenic and sightseeing transportation and support activities for transportation
Consumer Industries for Typical Regional Industry 3219 Wood windows and doors and millwork 3221 Paper mills
3219 All other miscellaneous wood product manufacturing
23 Construction of other new nonresidential structures
3219 Wood windows and doors and millwork
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3221 Pulp, paper, and paperboard mills Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
2211 Electric power generation, transmission, and distribution
42 Wholesale trade
113 Logging 113 Logging
42 Wholesale trade 2212 Natural gas distribution
484 Truck transportation 2211 Electric power generation, transmission, and
distribution 3211 Sawmills and wood preservation 55 Management of companies and enterprises 482 Rail transportation 3211 Sawmills and wood preservation
23 Maintenance and repair construction of nonresidential maintenance and repair
3112 Wet corn milling
3241 Petroleum refineries 484 Truck transportation 55 Management of companies and enterprises 3241 Petroleum refineries 5617 Services to buildings and dwellings 482 Rail transportation Consumer Industries for Typical Regional Industry
3221 Paper mills
3231 Printing
3222 Sanitary paper product manufacturing 3222 Paperboard container manufacturing 3231 Printing and related support activities Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3221 Paper mills
3221 Paper mills 42 Wholesale trade
531 Real estate 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing
2211 Electric power generation, transmission, and distribution
3222 Sanitary paper product manufacturing
522 Nondepository credit intermediation and related activities
55 Management of companies and enterprises
722 Food services and drinking places 3259 Printing ink manufacturing 484 Truck transportation 531 Real estate
23 Maintenance and repair construction of nonresidential maintenance and repair
522 Nondepository credit intermediation and related activities
55 Management of companies and enterprises 3231 Printing
52A Monetary authorities and depository credit intermediation
3231 Support activities for printing
5617 Services to buildings and dwellings Consumer Industries for Typical Regional Industry
52A Monetary authorities and depository credit intermediation
722 Food services and drinking places 42 Wholesale trade 441 Retail - Motor vehicle and parts
522 Nondepository credit intermediation and related activities
55 Management of companies and enterprises 721 Hotels and motels, including casino hotels
9-13 Wisconsin Economic Future Study
3261 Plastics product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 5191 Internet publishing and broadcasting
2211 Electric power generation, transmission, and distribution
3311 Iron and steel mills and ferroalloy manufacturing
52A Monetary authorities and depository credit intermediation
8111 Car washes
3241 Petroleum refineries 2122 Iron ore mining 484 Truck transportation 482 Rail transportation 55 Management of companies and enterprises
23 Maintenance and repair construction of nonresidential maintenance and repair
531 Real estate 722 Food services and drinking places 5617 Services to buildings and dwellings Consumer Industries for Typical Regional Industry
3221 Paper mills 3261 Other plastics product manufacturing 3219 Wood windows and doors and millwork 722 Food services and drinking places
23 Construction of other new residential structures
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3327 Machine shops; turned product; and screw, nut, and bolt manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 531 Real estate 3313 Aluminum product manufacturing from
5617 Services to buildings and dwellings Consumer Industries for Typical Regional Industry 3332 Other industrial machinery manufacturing 3221 Paper mills
3327 Machine shops 3331 Construction machinery manufacturing
3334 Air purification and ventilation equipment manufacturing
3219 Wood windows and doors and millwork
23 Construction of other new residential structures
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3329 Other fabricated metal product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 2211 Electric power generation, transmission, and
distribution 2122 Iron ore mining
52A Monetary authorities and depository credit intermediation
1119 All other crop farming
484 Truck transportation 3399 Office supplies (except paper) manufacturing 55 Management of companies and enterprises 3241 All other petroleum and coal products
manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3323 Plate work and fabricated structural product
manufacturing 531 Real estate 523 Securities, commodity contracts, investments,
and related activities
5617 Services to buildings and dwellings 522 Nondepository credit intermediation and related
activities
722 Food services and drinking places 517 Telecommunications 5411 Legal services Consumer Industries for Typical Regional Industry 3331 Construction machinery manufacturing 3332 Other industrial machinery manufacturing 23 Construction of other new nonresidential
structures 3331 Lawn and garden equipment manufacturing 23 Construction of new nonresidential
manufacturing structures
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3332 Industrial machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
722 Food services and drinking places 5411 Legal services Consumer Industries for Typical Regional Industry 3221 Paper mills
3332 Other industrial machinery manufacturing 3231 Printing
3334 HVAC and commercial refrigeration equipment Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 531 Real estate 3313 Aluminum product manufacturing from
purchased aluminum 484 Truck transportation 3326 Spring and wire product manufacturing 52A Monetary authorities and depository credit
intermediation 3345 Watch, clock, and other measuring and
controlling device manufacturing 2211 Electric power generation, transmission, and
distribution 3345 Totalizing fluid meters and counting devices
and related activities 3241 All other petroleum and coal products
manufacturing 517 Telecommunications 722 Food services and drinking places Consumer Industries for Typical Regional Industry
3334 Air purification and ventilation equipment manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new nonresidential structures
23 Construction of new nonresidential manufacturing structures
562 Waste management and remediation services
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3335 Metalworking machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 5415 Custom computer programming services 3323 Plate work and fabricated structural product
manufacturing 55 Management of companies and enterprises 2122 Iron ore mining 2211 Electric power generation, transmission, and
distribution 3323 Plate work and fabricated structural product
manufacturing 531 Real estate 2122 Iron ore mining 484 Truck transportation 3323 Plate work and fabricated structural product
manufacturing 52A Monetary authorities and depository credit
intermediation
23 Maintenance and repair construction of nonresidential maintenance and repair
722 Food services and drinking places 522 Nondepository credit intermediation and related
activities
517 Telecommunications 5617 Services to buildings and dwellings 523 Securities, commodity contracts, investments,
and related activities
Consumer Industries for Typical Regional Industry 3332 Other industrial machinery manufacturing 3327 Machine shops 3334 Air purification and ventilation equipment
manufacturing 3331 Construction machinery manufacturing 3399 Sporting and athletic goods manufacturing 3221 Paper mills
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3339 Other general purpose machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 484 Truck transportation 3313 Aluminum product manufacturing from
purchased aluminum 52A Monetary authorities and depository credit
intermediation 3326 Spring and wire product manufacturing
531 Real estate 3345 Watch, clock, and other measuring and controlling device manufacturing
2211 Electric power generation, transmission, and distribution
3345 Totalizing fluid meters and counting devices manufacturing
517 Telecommunications 3241 All other petroleum and coal products manufacturing
523 Securities, commodity contracts, investments, and related activities
522 Nondepository credit intermediation and related activities
722 Food services and drinking places 5411 Legal services Consumer Industries for Typical Regional Industry 23 Construction of new nonresidential
commercial and health care structures 23 Construction of other new nonresidential
structures 3339 Material handling equipment manufacturing 23 Construction of new nonresidential
manufacturing structures
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3371 Household and institutional furniture, and kitchen cabinet manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3211 Sawmills and wood preservation 2122 Iron ore mining 42 Wholesale trade 3342 Other communications equipment
484 Truck transportation 8112 Electronic and precision equipment repair and maintenance
3212 Veneer and plywood manufacturing 3113 Nonchocolate confectionery manufacturing 2211 Electric power generation, transmission, and
distribution 3162 Footwear manufacturing
3219 Wood windows and doors and millwork 52A Monetary authorities and depository credit
intermediation
531 Real estate 23 Maintenance and repair construction of
nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry 3371 Nonupholstered wood household furniture
manufacturing 23 Construction of new nonresidential
commercial and health care structures 23 Construction of new residential permanent
site single- and multi-family structures 23 Construction of other new residential
structures 722 Food services and drinking places
3219 Manufactured home (mobile home) manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
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4233 Lumber and construction supply merchant wholesalers Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 1111 Oilseed farming 42 Wholesale trade 113 Forest nurseries, forest products, and timber
tracts 55 Management of companies and enterprises
3351 Lighting fixture manufacturing 531 Real estate
8129 Other personal services 492 Couriers and messengers 1112 Vegetable and melon farming 493 Warehousing and storage 3118 Bread and bakery product manufacturing 5241 Insurance carriers 3359 All other miscellaneous electrical equipment and
component manufacturing 517 Telecommunications
3362 Motor vehicle body manufacturing 56A Management, scientific, and technical consulting services
3333 Photographic and photocopying equipment manufacturing
522 Nondepository credit intermediation and related activities
5111 Newspaper publishers 5418 Advertising and related services 3121 Soft drink and ice manufacturing Consumer Industries for Typical Regional Industry 5611 Office administrative services 532 Automotive equipment rental and leasing
611 Junior colleges, colleges, universities, and professional schools
8112 Electronic and precision equipment repair and maintenance
3219 Wood container and pallet manufacturing 1111 Oilseed farming
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7139 Other amusement and recreation industries Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 531 Real estate 531 Real estate 2211 Electric power generation, transmission, and
distribution 5411 Legal services
522 Nondepository credit intermediation and related activities
55 Management of companies and enterprises
5617 Services to buildings and dwellings 5241 Insurance carriers 5411 Legal services 2211 Electric power generation, transmission, and
distribution 722 Food services and drinking places 522 Nondepository credit intermediation and
related activities 52A Monetary authorities and depository credit
intermediation 5418 Advertising and related services
23 Maintenance and repair construction of nonresidential maintenance and repair
5412 Accounting, tax preparation, bookkeeping, and payroll services
55 Management of companies and enterprises 5617 Services to buildings and dwellings 5412 Accounting, tax preparation, bookkeeping, and
payroll services
42 Wholesale trade Consumer Industries for Typical Regional Industry 52A Monetary authorities and depository credit
intermediation 722 Food services and drinking places
522 Nondepository credit intermediation and related activities
621 Offices of physicians, dentists, and other health practitioners
55 Management of companies and enterprises
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7212 RV parks and recreational camps Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 2213 Water, sewage and other systems 2211 Electric power generation, transmission, and
distribution 3327 Machine shops 5617 Services to buildings and dwellings
23 Construction of other new nonresidential structures
722 Food services and drinking places
523 Securities, commodity contracts, investments, and related activities
55 Management of companies and enterprises
3259 All other chemical product and preparation manufacturing
5241 Insurance carriers
624 Child day care services 5418 Advertising and related services 3345 Electricity and signal testing instruments
manufacturing 531 Real estate
5242 Insurance agencies, brokerages, and related activities
23 Maintenance and repair construction of nonresidential maintenance and repair
112 Dairy cattle and milk production 517 Telecommunications 3161 Leather and hide tanning and finishing 491 Postal service 3399 Sign manufacturing 56A Management, scientific, and technical
consulting services 3336 Mechanical power transmission equipment
manufacturing
525 Funds, trusts, and other financial vehicles Consumer Industries for Typical Regional Industry 445 Retail - Food and beverage 23 Construction of other new nonresidential
structures 713 Other amusement and recreation industries
5242 Insurance agencies, brokerages, and related activities
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9.3.3 Top Firms1 by Driver Industry in the North Region 3211 Sawmills and wood preservation
Company Industry Definition Employment
Size County John A Biewer Co. of Wisconsin Inc. Sawmills 100 - 249 Price Nicolet Hardwoods Corp. Sawmills 50 - 99 Forest Georgia-Pacific Corp. Sawmills 50 - 99 Price Park Falls Hardwoods Sawmills 50 - 99 Price North Country Lumber Co. Sawmills 20 - 49 Ashland Besse Lumber Co. Sawmills 20 - 49 Rusk Tri-State Lumber & Land Inc. Sawmills 20 - 49 Washburn
3212 Plywood and engineered wood product manufacturing
Company Industry Definition Employment
Size County
Columbia Forest Products Inc. Hardwood Veneer and
Plywood Manufacturing 100 - 249 Ashland
Birds Eye Veneer Co. Hardwood Veneer and
Plywood Manufacturing 50 - 99 Ashland
Saunders Wood Specialties Inc. Hardwood Veneer and
1 Top firms are identified by an establishment's employment by each driver industry in the North Region. Those establishments of companies having 20 employees or more are listed in the tables.
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3219 Other wood product manufacturing
Company Industry Definition Employment
Size County
Weather Shield Manufacturing Other Millwork (including
Flooring) 1000+ Rusk
Birchwood Best Wood Window and Door
Manufacturing 1000+ Washburn
Action Floor Systems LLC Other Millwork (including
Flooring) 100 - 249 Iron
North States Industries Inc. All Other Miscellaneous Wood
Product Manufacturing 50 - 99 Burnett
Pride Manufacturing All Other Miscellaneous Wood
Product Manufacturing 50 - 99 Florence
ETS-Lindgren All Other Miscellaneous Wood
Product Manufacturing 50 - 99 Oneida
Shell Lake Woodcrafters All Other Miscellaneous Wood
Product Manufacturing 50 - 99 Washburn
Northern Manufacturing Co. Inc. Other Millwork (including
Flooring) 20 - 49 Burnett
Superior Wood Systems All Other Miscellaneous Wood
Size County Wausau Paper Corp. Paper (except Newsprint) Mills 1000+ Oneida Flambeau River Papers LLC Paper (except Newsprint) Mills 1000+ Price Clearwater Paper Corp. Paper (except Newsprint) Mills 50 - 99 Rusk
3231 Printing and related support activities
Company Industry Definition Employment
Size County Artisans Inc. Commercial Screen Printing 50 - 99 Rusk Arrowhead Printing Inc. Commercial Gravure Printing 20 - 49 Douglas Hidden Bay Graphics Commercial Screen Printing 20 - 49 Sawyer Hahn Printing Inc. Commercial Gravure Printing 20 - 49 Vilas
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3261 Plastics product manufacturing
Company Industry Definition Employment
Size County
Phillips-Medisize All Other Plastics Product
Manufacturing 250 - 499 Price
Charter Films Inc. All Other Plastics Product
Manufacturing 100 - 249 Douglas
Fentech Inc. All Other Plastics Product
Manufacturing 50 - 99 Douglas
NEX Performance Films
Unlaminated Plastics Film and Sheet (except Packaging)
4233 Lumber and construction supply merchant wholesalers 140 204 193 208 189 187 192
7139 Other amusement and recreation industries 1,146 737 839 852 800 762 910 7212 RV parks and recreational camps 303 337 346 362 393 387 402
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Table 9-4 Percentage Change for Employment in the North Region’s Driver Industries, 2000-2011 NAICS Title 2000-2003 2003-2008 2008-2011 3211 Sawmills and wood preservation -12.8% 0.5% -25.1% 3212 Plywood and engineered wood product manufacturing -13.4% 1.8% -39.9% 3219 Other wood product manufacturing -1.8% -8.0% -31.3% 3221 Pulp, paper, and paperboard mills -11.7% 6.8% -9.1% 3231 Printing and related support activities -15.3% -15.3% -3.6% 3261 Plastics product manufacturing -2.8% 24.1% -5.6% 3327 Machine shops and threaded product manufacturing -22.0% 25.4% 11.5% 3329 Other fabricated metal product manufacturing -26.8% 13.4% -10.9% 3332 Industrial machinery manufacturing -14.9% -1.8% -3.0% 3334 HVAC and commercial refrigeration equipment -22.5% 7.5% 0.0% 3335 Metalworking machinery manufacturing -51.9% 6.6% -0.5% 3339 Other general purpose machinery manufacturing -27.4% 7.8% 2.3% 3371 Household and institutional furniture manufacturing -13.3% -12.3% -10.3% 4233 Lumber and construction supply merchant wholesalers 45.7% 2.0% -7.7% 7139 Other amusement and recreation industries -35.7% 15.6% 6.8% 7212 RV parks and recreational camps 11.2% 7.4% 11.0%
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Table 9-5 Labor Location Quotients* - North Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3211 Sawmills and wood preservation 9.27 11.78 11.27 3212 Plywood and engineered wood product manufacturing 12.86 16.48 14.02 3219 Other wood product manufacturing 7.41 8.60 8.22 3221 Pulp, paper, and paperboard mills 2.90 3.72 4.03 3231 Printing and related support activities 1.02 1.05 1.31 3261 Plastics product manufacturing 1.11 1.62 1.78 3327 Machine shops and threaded product manufacturing 1.37 1.60 2.01 3329 Other fabricated metal product manufacturing 1.29 1.56 1.60 3332 Industrial machinery manufacturing 6.69 7.26 8.35 3334 HVAC and commercial refrigeration equipment 1.05 1.23 1.46 3335 Metalworking machinery manufacturing 2.18 2.69 3.19 3339 Other general purpose machinery manufacturing 1.45 1.63 1.99 3371 Household and institutional furniture manufacturing 1.44 1.68 2.12 4233 Lumber and construction supply merchant wholesalers 1.13 1.18 1.40 7139 Other amusement and recreation industries 1.01 1.14 1.28 7212 RV parks and recreational camps 7.13 7.89 9.37
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
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Table 9-6 Gross Product in the North Region's Driver Industries, 2000-2011
Note: All values are inflated by CPI-U, based on 2011 .
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Table 9-7 Percentage Change for Growth Product in the North Region’s Driver Industries, 2000-2011 NAICS Title 2000-2007 2007-2008 2008-2011 3211 Sawmills and wood preservation -9.2% -18.8% -8.3% 3212 Plywood and engineered wood product manufacturing -5.7% -14.0% -34.9% 3219 Other wood product manufacturing 2.2% -6.3% -29.6% 3221 Pulp, paper, and paperboard mills 10.9% -14.8% 25.8% 3231 Printing and related support activities -2.0% -6.8% 10.3% 3261 Plastics product manufacturing 42.0% -10.7% 7.0% 3327 Machine shops and threaded product manufacturing -8.4% 3.0% 23.9% 3329 Other fabricated metal product manufacturing -16.8% -1.4% 3.2% 3332 Industrial machinery manufacturing 2.0% -2.2% 17.5% 3334 HVAC and commercial refrigeration equipment 6.3% 7.0% 16.8% 3335 Metalworking machinery manufacturing -22.7% -5.1% 15.3% 3339 Other general purpose machinery manufacturing 1.2% 3.9% 8.2% 3371 Household and institutional furniture manufacturing 14.3% 5.0% -11.0% 4233 Lumber and construction supply merchant wholesalers 59.3% 6.0% -1.9% 7139 Other amusement and recreation industries -35.7% 2.8% -2.7% 7212 RV parks and recreational camps 68.6% 2.4% 2.4%
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Table 9-8 Output Location Quotients* - North Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3211 Sawmills and wood preservation 12.84 17.17 15.97 3212 Plywood and engineered wood product manufacturing 14.49 21.02 18.10 3219 Other wood product manufacturing 14.38 17.59 16.15 3221 Pulp, paper, and paperboard mills 2.68 2.74 3.29 3231 Printing and related support activities 1.60 1.82 2.39 3261 Plastics product manufacturing 1.47 2.50 2.70 3327 Machine shops and threaded product manufacturing 1.97 2.16 2.53 3329 Other fabricated metal product manufacturing 1.97 2.37 2.29 3332 Industrial machinery manufacturing 6.49 8.85 10.62 3334 HVAC and commercial refrigeration equipment 1.12 1.55 1.77 3335 Metalworking machinery manufacturing 2.38 2.94 3.43 3339 Other general purpose machinery manufacturing 1.96 2.28 2.57 3371 Household and institutional furniture manufacturing 1.70 2.74 2.78 4233 Lumber and construction supply merchant wholesalers 1.26 1.64 2.10 7139 Other amusement and recreation industries 1.74 2.03 2.20 7212 RV parks and recreational camps 7.15 10.17 11.29
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
9-36
Table 9-9 Productivity (Gross Product per Employee) of Driver Industries, North Region, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011 3211 Sawmills and wood preservation $59,435 $57,400 $61,186 $49,995 $51,873 $58,640 $61,168 3212 Plywood and engineered wood product manufacturing $51,154 $51,632 $54,105 $47,108 $42,361 $49,481 $51,052 3219 Other wood product manufacturing $69,304 $77,686 $76,954 $73,452 $71,141 $74,620 $75,187 3221 Pulp, paper, and paperboard mills $69,756 $88,301 $82,723 $69,934 $83,724 $94,201 $96,758 3231 Printing and related support activities $53,179 $65,289 $73,685 $67,711 $72,811 $76,294 $77,455 3261 Plastics product manufacturing $72,004 $72,213 $88,233 $75,685 $78,844 $87,300 $85,744 3327 Machine shops and threaded product manufacturing $78,517 $77,307 $76,979 $75,720 $75,973 $84,151 $84,108 3329 Other fabricated metal product manufacturing $96,237 $94,299 $99,705 $95,071 $99,084 $106,845 $110,021 3332 Industrial machinery manufacturing $75,785 $72,862 $90,971 $90,436 $88,015 $105,683 $109,552 3334 HVAC and commercial refrigeration equipment $55,020 $64,671 $71,434 $75,109 $76,608 $85,007 $87,712 3335 Metalworking machinery manufacturing $42,264 $60,043 $63,539 $60,434 $62,592 $68,045 $70,080 3339 Other general purpose machinery manufacturing $70,658 $80,806 $94,547 $95,035 $90,965 $98,170 $100,556 3371 Household and institutional furniture manufacturing $36,729 $46,239 $56,624 $57,920 $51,851 $54,994 $57,451 4233 Lumber and construction supply merchant wholesalers $82,557 $80,778 $95,370 $93,824 $94,234 $96,141 $99,719 7139 Other amusement and recreation industries $52,428 $46,207 $46,052 $46,598 $44,496 $47,598 $42,444 7212 RV parks and recreational camps $22,462 $25,347 $33,159 $32,447 $30,077 $27,873 $29,930
10-1 Wisconsin Economic Future Study
10 South Region
10.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis for the South Region, as well as detailed information related to each of the regional driver industries identified. The South Region is defined to include the counties of Columbia, Crawford, Dane, Grant, Green, Iowa, Juneau, Lafayette, Marquette, Richland, Rock, Sauk, and Winnebago, IL. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the South Region are provided in a tabular form. Tables in the final section in this chapter (10.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries.
10.2 Summary of Regional Driver Industries & Industry Clusters The South Region of Wisconsin has 12 regional driver industries at the 4-digit level NAICS (8 drivers at the 3-digit level). The regional driver industries of the South Region are shown below. NAICS Industry description
333 Machinery manufacturing 3332 Industrial machinery manufacturing 3333 Commercial and service industry machinery 3335 Metalworking machinery manufacturing 3339 Other general purpose machinery manufacturing
3352 Household appliance manufacturing 3379 Other furniture related product manufacturing 4541 Electronic shopping and mail-order houses 5112 Software publishers
10-2 Wisconsin Economic Future Study
10.2.1 How Are the South Region’s Driver Industries Doing?
Figure 10-1 Overview of the South Region Drivers
1 very technology intensive industries
2 moderate technology intensive driver industries 1 low technology intensive driver industries 8 industries with no technological intensity
10-3 Wisconsin Economic Future Study
Interpretation: The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. The South Region of Wisconsin is economically driven by a small number of industries. Out of the total of 12 regional 4-digit NAICS driver industry groups, five were identified as regional drivers in the previous study of manufacturing drivers and cluster analyses conducted in 2004. Dairy Product Manufacturing continues to drive the Food Manufacturing cluster in the region. It
shows about the same level of the relative regional concentration (measured by the gross regional product location quotient), growth in size ($412 million in 2011 output compared to $298 million in 2004), and increased gross regional product by more than 40% from 2008 through 2011. This industry, along with Sugar and Confectionery Product Manufacturing, constitutes the partial Food Manufacturing cluster (NAICS 311).
Machinery Manufacturing (NAICS 333) is another historically strong regional cluster in the South Region. It grew from being presented by two 4-digit NAICS drivers in 2004 to being represented by four 4-digit NAICS regional. A historical industry group in this cluster, Industrial Machinery Manufacturing, not only doubled in size, but went from declining output in 1998-2003 to growth of about 5% from 2008 through 2011. This industry group, together with Commercial and Service Industry Machinery, a new industry group in this South Region cluster, strengthens the technological intensity of this cluster by employing the skilled labor that classifies these drivers among the moderate technology-intensive industries. Other General Purpose Machinery is the largest industry group in this cluster, with $888 million in 2011 output and relative concentration in the South Region at LQ=7.2. This industry group grew its gross regional product by 10% between 2008 and 2011. This industry is considered low technology-intensive but does employ skilled and technologically sophisticated labor.
Machine Shops and Threaded Product Manufacturing is a relatively large historical driver repeating
from 2004 ($459 million). Other Furniture Related Product Manufacturing (also a driver in 2004) is small and significantly declined over the last three years — although output is still higher ($60 million in 2011) than identified by the 2004 study ($35 million).
Household Appliance Manufacturing and Glass and Glass Product Manufacturing are slightly larger industry groups ($185 million and $127 million, respectively), and both of them were growing from 2008 through 2011. Two non-manufacturing industry group have a strong presence among the Southern Region drivers. Electronic Shopping and Mail-Order Houses had $741 million of 2011 output, LQ=6, and about 20% gross regional product increase over the last three years. Software Publishers is the largest regional driver, with 2011 output of $1,015 million, LQ=3, and 35% output growth from 2008 to 2011. In addition, this is the only driver identified as very technology-intensive in the South Region.
10-4 Wisconsin Economic Future Study
10.2.2 Driver and Industry Cluster Relationships in the South Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 10-1 and 10-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 10-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to impact the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly impact the competitiveness of those driver industries.
Table 10-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
42 Wholesale trade 12 3 484 Truck transportation 10 2 55 Management of companies and enterprises 10 3
517 Telecommunications 9 1
52A Monetary authorities and depository credit intermediation 9 1
531 Real estate 7 1 533 Lessors of nonfinancial intangible assets 7 1 3115 Fluid milk and butter manufacturing X 5 4 5418 Advertising and related services 3 1 3261 Other plastics product manufacturing 2 1 56A Employment services 2 2
** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers. Table 10-2 is similar to Table 10-1 in that it shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 10-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
Table 10-2 National Supplier Industries Common to Regional Driver Industries NAICS Title Count of Driver
10.3 Detailed Descriptions of the Regional Driver Industries 10.3.1 Driver Industry Definitions 311 Food Manufacturing (Partial) Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products.
3113 Sugar and confectionery product manufacturing 3115 Dairy product manufacturing
3272 Glass and Glass Product Manufacturing This industry group comprises establishments primarily engaged in manufacturing glass and/or glass products. Establishments in this industry may manufacture glass and/or glass products by melting silica sand or cullet, or purchasing glass. 3327 Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing This industry group comprises establishments known as machine shops primarily engaged in machining metal and plastic parts and parts of other composite materials on a job or order basis. Generally machine shop jobs are low volume using machine tools, such as lathes (including computer numerically controlled); automatic screw machines; and machines for boring, grinding, and milling (NAICS 33271 Machine Shops). This industry group comprises establishments primarily engaged in (1) machining precision turned products or (2) manufacturing metal bolts, nuts, screws, rivets, and other industrial fasteners. Included in this industry are establishments primarily engaged in manufacturing parts for machinery and equipment on a customized basis (NAICS 33272 Turned Product and Screw, Nut, and Bolt Manufacturing). 333 Machinery Manufacturing (Partial) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal. Processes such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3332 Industrial machinery manufacturing 3333 Commercial and service industry machinery 3335 Metalworking machinery manufacturing 3339 Other general purpose machinery manufacturing
10-6 Wisconsin Economic Future Study
3352 Household Appliance Manufacturing This industry group comprises establishments primarily engaged in one or more of the following manufacturing activities: small electrical appliances and/or major appliances. 3379 Other Furniture Related Product Manufacturing This industry group comprises establishments manufacturing furniture related products, such as mattresses, blinds, and shades.
4541 Electronic Shopping and Mail-Order Houses This industry group comprises establishments primarily engaged in retailing all types of merchandise using non-store means, such as catalogs, toll free telephone numbers, or electronic media, such as interactive television or computer. Included in this industry are establishments primarily engaged in retailing from catalog showrooms of mail-order houses. 5112 Software Publishers This industry group comprises establishments primarily engaged in computer software publishing or publishing and reproduction. Establishments in this industry carry out operations necessary for producing and distributing computer software, such as designing, providing documentation, assisting in installation, and providing support services to software purchasers. These establishments may design, develop, and publish, or publish only.
10-7 Wisconsin Economic Future Study
10.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is ‘regionalized’ to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 10-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
10-8 Wisconsin Economic Future Study
3113 Sugar and confectionery product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 1119 Sugarcane and sugar beet farming
42 Wholesale trade 3113 Sugar cane mills and refining
2211 Electric power generation, transmission, and distribution
55 Management of companies and enterprises
484 Truck transportation 42 Wholesale trade
3115 Fluid milk and butter manufacturing 3222 Paperboard container manufacturing
3115 Dry, condensed, and evaporated dairy product manufacturing
3112 Wet corn milling
3119 Snack food manufacturing 3113 Beet sugar manufacturing 531 Real estate 3119 Snack food manufacturing 484 Truck transportation Consumer Industries for Typical Regional Industry
722 Food services and drinking places 3114 Fruit and vegetable canning, pickling, and
drying 3121 Soft drink and ice manufacturing 611 Junior colleges, colleges, universities, and
professional schools 3113 Nonchocolate confectionery manufacturing 3115 Cheese manufacturing 3115 Dairy product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Dairy cattle and milk production 112 Dairy cattle and milk production 3115 Cheese manufacturing 3115 Cheese manufacturing
42 Wholesale trade 3115 Fluid milk and butter manufacturing
3115 Dry, condensed, and evaporated dairy product manufacturing
3115 Fluid milk and butter manufacturing 484 Truck transportation 55 Management of companies and enterprises 3222 Paperboard container manufacturing Consumer Industries for Typical Regional Industry 3115 Cheese manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 722 Food services and drinking places 3115 Fluid milk and butter manufacturing 3115 Ice cream and frozen dessert manufacturing 622 Hospitals
10-9 Wisconsin Economic Future Study
3272 Glass and glass product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 3272 Flat glass manufacturing 3261 Laminated plastics plate, sheet (except
packaging), and shape manufacturing 3272 Glass product manufacturing made of purchased
glass 3323 Plate work and fabricated structural product
manufacturing 55 Management of companies and enterprises 493 Warehousing and storage 2211 Electric power generation, transmission, and
distribution 5614 Business support services
484 Truck transportation 3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
52A Monetary authorities and depository credit intermediation
448 Retail - Clothing and clothing accessories
517 Telecommunications 3251 Alkalies and chlorine manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3312 Steel product manufacturing from purchased
steel 3344 Other electronic component manufacturing 3113 Nonchocolate confectionery manufacturing Consumer Industries for Typical Regional Industry 3272 Glass product manufacturing made of
purchased glass 23 Construction of new nonresidential
commercial and health care structures 3261 Other plastics product manufacturing 621 Offices of physicians, dentists, and other
health practitioners 3272 Flat glass manufacturing 622 Hospitals
10-10 Wisconsin Economic Future Study
3327 Machine shops; turned product; and screw, nut, and bolt manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
1119 All other crop farming
531 Real estate 3399 Office supplies (except paper) manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 5415 Custom computer programming services 3323 Plate work and fabricated structural product
manufacturing 533 Lessors of nonfinancial intangible assets 517 Telecommunications 522 Nondepository credit intermediation and related
activities
523 Securities, commodity contracts, investments, and related activities
722 Food services and drinking places 484 Truck transportation 23 Maintenance and repair construction of
nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry 3363 Motor vehicle parts manufacturing 3329 Ammunition manufacturing
3336 Other engine equipment manufacturing 3331 Farm machinery and equipment
manufacturing 3332 Other industrial machinery manufacturing
3323 Plate work and fabricated structural product manufacturing
3345 Irradiation apparatus manufacturing
3339 Fluid power process machinery
10-11 Wisconsin Economic Future Study
3332 Industrial machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
purchased aluminum 517 Telecommunications 3326 Spring and wire product manufacturing 2211 Electric power generation, transmission, and
distribution 3345 Watch, clock, and other measuring and
controlling device manufacturing 533 Lessors of nonfinancial intangible assets 3345 Totalizing fluid meters and counting devices
manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 531 Real estate 484 Truck transportation Consumer Industries for Typical Regional Industry
3332 Other industrial machinery manufacturing 3231 Printing
3251 Other basic organic chemical manufacturing 3315 Nonferrous metal foundries 3333 Commercial and service industry machinery Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 517 Telecommunications 3313 Aluminum product manufacturing from
purchased aluminum 533 Lessors of nonfinancial intangible assets 3326 Spring and wire product manufacturing 52A Monetary authorities and depository credit
intermediation 3345 Watch, clock, and other measuring and
manufacturing 2211 Electric power generation, transmission, and
distribution 3241 All other petroleum and coal products
manufacturing Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential
structures 3333 Other commercial and service industry
machinery manufacturing 23 Construction of new residential permanent
site single- and multi-family structures 23 Construction of new nonresidential
commercial and health care structures
10-12 Wisconsin Economic Future Study
3335 Metalworking machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 2122 Iron ore mining 42 Wholesale trade 3323 Plate work and fabricated structural product
3315 Nonferrous metal foundries 3323 Plate work and fabricated structural product
manufacturing 3327 Turned product and screw, nut, and bolt
manufacturing 3329 Other fabricated metal manufacturing
10-13 Wisconsin Economic Future Study
3339 Other general purpose machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 2211 Electric power generation, transmission, and
distribution 3313 Aluminum product manufacturing from
purchased aluminum 517 Telecommunications 3326 Spring and wire product manufacturing 484 Truck transportation 3345 Watch, clock, and other measuring and
controlling device manufacturing 533 Lessors of nonfinancial intangible assets 3345 Totalizing fluid meters and counting devices
manufacturing 3315 Ferrous metal foundries 3241 All other petroleum and coal products
manufacturing 52A Monetary authorities and depository credit
intermediation
Consumer Industries for Typical Regional Industry 3339 Pump and pumping equipment manufacturing 3331 Farm machinery and equipment
manufacturing 3332 Other industrial machinery manufacturing 23 Construction of other new nonresidential
structures 3336 Other engine equipment manufacturing
3352 Household appliance manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3254 Medicinal and botanical manufacturing
484 Truck transportation 5191 Internet publishing and broadcasting
2211 Electric power generation, transmission, and distribution
3313 Aluminum product manufacturing from purchased aluminum
3261 Other plastics product manufacturing 8111 Car washes 3339 Air and gas compressor manufacturing Consumer Industries for Typical Regional Industry 8114 Personal and household goods repair and
maintenance 8123 Dry-cleaning and laundry services
3352 Household refrigerator and home freezer manufacturing
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
23 Construction of other new residential structures
23 Construction of new nonresidential commercial and health care structures
10-14 Wisconsin Economic Future Study
3379 Other furniture related product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 484 Truck transportation 3342 Other communications equipment
manufacturing 48A Scenic and sightseeing transportation and
support activities for transportation 711 Independent artists, writers, and performers
517 Telecommunications 8112 Electronic and precision equipment repair and maintenance
52A Monetary authorities and depository credit intermediation
3113 Nonchocolate confectionery manufacturing
3132 Broadwoven fabric mills 3162 Footwear manufacturing 531 Real estate 5418 Advertising and related services 55 Management of companies and enterprises 3261 Urethane and other foam product (except
polystyrene) manufacturing
5151 Radio and television broadcasting 3231 Printing Consumer Industries for Typical Regional Industry 3379 Mattress manufacturing 3379 Blind and shade manufacturing
23 Construction of new nonresidential commercial and health care structures
3231 Printing
4541 Electronic shopping and mail-order houses Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 531 Real estate 3162 Footwear manufacturing 52A Monetary authorities and depository credit
intermediation 3115 Dry, condensed, and evaporated dairy product
manufacturing 493 Warehousing and storage 3122 Tobacco product manufacturing 2211 Electric power generation, transmission, and
distribution 3121 Breweries
517 Telecommunications 3279 Mineral wool manufacturing 5241 Insurance carriers 3119 Seasoning and dressing manufacturing 522 Nondepository credit intermediation and related
activities 5614 Business support services
533 Lessors of nonfinancial intangible assets 3121 Wineries 42 Wholesale trade 5418 Advertising and related services 491 Postal service Consumer Industries for Typical Regional Industry 454 Retail - Nonstore 23 Construction of other new residential
structures 23 Construction of new residential permanent
site single- and multi-family structures 23 Construction of other new nonresidential
structures 23 Maintenance and repair construction of
nonresidential maintenance and repair
10-15 Wisconsin Economic Future Study
5112 Software publishers Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 56A Employment services 56A Employment services 52A Monetary authorities and depository credit
intermediation 531 Real estate
55 Management of companies and enterprises 55 Management of companies and enterprises
531 Real estate 52A Monetary authorities and depository credit intermediation
533 Lessors of nonfinancial intangible assets 5411 Legal services 5619 Other support services 56A Management, scientific, and technical
consulting services 517 Telecommunications 5112 Software publishers 5411 Legal services 5418 Advertising and related services 42 Wholesale trade 42 Wholesale trade 5617 Services to buildings and dwellings 533 Lessors of nonfinancial intangible assets 722 Food services and drinking places 517 Telecommunications 5418 Advertising and related services 5619 Other support services 56A Management, scientific, and technical consulting
services 5611 Office administrative services
5112 Software publishers 5617 Services to buildings and dwellings 5412 Accounting, tax preparation, bookkeeping, and
payroll services Consumer Industries for Typical Regional Industry 5112 Software publishers 3345 Analytical laboratory instrument
1 Top firms are identified by an establishment's employment by each driver industry in the South Region. Those establishments of companies having 20 employees or more are listed in the tables.
10-17 Wisconsin Economic Future Study
3115 Dairy product manufacturing
Company Name Industry Description Employment
Size County
Schoep's Ice Cream
Ice Cream and Frozen Dessert Manufacturing 100 - 249 Dane
Lactalis Waste Water Treatment Cheese Manufacturing 100 - 249 Lafayette Foremost Farms USA Cheese Manufacturing 100 - 249 Richland Foremost Farms USA Cheese Manufacturing 100 - 249 Sauk Foremost Farms USA Cheese Manufacturing 50 - 99 Grant Foremost Farms USA Cheese Manufacturing 50 - 99 Sauk Saputo Cheese USA Inc. Cheese Manufacturing 50 - 99 Sauk
Chocolate Shoppe Ice Cream Co. Ice Cream and Frozen Dessert Manufacturing 20 - 49 Dane
Imperia Foods Inc. Cheese Manufacturing 20 - 49 Grant Meister Cheese Co. Cheese Manufacturing 20 - 49 Grant Schurman's Wisconsin Cheese Country Inc. Cheese Manufacturing 20 - 49 Grant Chalet Cheese CO-OP Cheese Manufacturing 20 - 49 Green
International Ingredient Corp. Dry, Condensed, and Evaporated Dairy Product Manufacturing 20 - 49 Green
Klondike Cheese Factory Cheese Manufacturing 20 - 49 Green
Protient Inc. Dry, Condensed, and Evaporated Dairy Product Manufacturing 20 - 49 Green
Roth Kase USA Cheese Manufacturing 20 - 49 Green Chula Vista Cheese Co. Cheese Manufacturing 20 - 49 Lafayette Shullsburg Creamery Inc. Cheese Manufacturing 20 - 49 Lafayette
3272 Glass and glass product manufacturing
Company Name Industry Description Employment
Size County Cardinal Fg Co. Flat Glass Manufacturing 100 - 249 Columbia
Washer Manufacturing 20 - 49 Lafayette T W Design & Manufacturing LLC Machine Shops 20 - 49 Marquette American Machine Machine Shops 20 - 49 Rock Beloit Special Machining Machine Shops 20 - 49 Rock Draeving Machine & Tool Inc. Machine Shops 20 - 49 Rock R & M Manufacturing Machine Shops 20 - 49 Rock Addison Machine Engineering Machine Shops 20 - 49 Sauk Palmer Manufacturing Machine Shops 20 - 49 Sauk
3332 Industrial machinery manufacturing
Company Name Industry Description Employment
Size County
Bruker AXS Inc. Semiconductor Machinery
Manufacturing 50 - 99 Dane
Federal Industries Food Product Machinery
Manufacturing 50 - 99 Dane
Global Printer Services Printing Machinery and
Equipment Manufacturing 20 - 49 Dane International Machinery Exchange
Food Product Machinery Manufacturing 20 - 49 Dane
ALKAR-RapidPak Inc. Food Product Machinery
Manufacturing 20 - 49 Columbia
Hughes Co. Food Product Machinery
Manufacturing 20 - 49 Columbia
10-19 Wisconsin Economic Future Study
3333 Commercial and service industry machinery
Company Name Industry Description Employment
Size County
Lyco Manufacturing Inc.
Other Commercial and Service Industry Machinery
Manufacturing 50 - 99 Columbia
Isthmus Engineering-Manufacturing Co-Op
Other Commercial and Service Industry Machinery
Manufacturing 50 - 99 Dane
Food Process Systems Inc.
Other Commercial and Service Industry Machinery
Manufacturing 20 - 49 Columbia
Ideal Manufacturing & Sales
Other Commercial and Service Industry Machinery
Manufacturing 20 - 49 Dane
Johnson Industries International
Other Commercial and Service Industry Machinery
Manufacturing 20 - 49 Dane
Keystone Automotive Industries
Other Commercial and Service Industry Machinery
Manufacturing 20 - 49 Dane
MarquipWardUnited Inc.
Other Commercial and Service Industry Machinery
Manufacturing 20 - 49 Dane 3335 Metalworking machinery manufacturing
Company Name Industry Description Employment
Size County Scot Industries Inc. Machine Tool Manufacturing 100 - 249 Grant
Portage Casting & Mold Inc. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 50 - 99 Columbia
MCD Inc. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 50 - 99 Dane
O & A Manufacturing Inc. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 Dane
Mauston Tool Corp. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 Juneau V P Vacuum Platers LLC Machine Tool Manufacturing 20 - 49 Juneau
Apollo Tool Co. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 Marquette
Versatool & Die Machining Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 Rock
Del-Tool Co. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 Sauk
10-20 Wisconsin Economic Future Study
3339 Other general purpose machinery manufacturing
Company Name Industry Description Employment
Size County
Enerpac Fluid Power Cylinder and Actuator
Manufacturing 100 - 249 Columbia
Weir Minerals Pump and Pumping Equipment
Manufacturing 100 - 249 Dane
McFarlane Manufacturing Co. Inc. Welding and Soldering Equipment
Manufacturing 100 - 249 Sauk
Hooper Corp. All Other Miscellaneous General
Purpose Machinery Manufacturing 50 - 99 Dane
ThyssenKrupp Elevator Elevator and Moving Stairway
Manufacturing 50 - 99 Dane
Universal Silencer All Other Miscellaneous General
Purpose Machinery Manufacturing 50 - 99 Grant
Zinga Industries Inc. All Other Miscellaneous General
Purpose Machinery Manufacturing 50 - 99 Sauk
Wolf Machine Inc. All Other Miscellaneous General
Purpose Machinery Manufacturing 20 - 49 Crawford
ThyssenKrupp Elevator Elevator and Moving Stairway
Manufacturing 20 - 49 Dane
ANGI International LLC Air and Gas Compressor
Manufacturing 20 - 49 Rock 3352 Household appliance manufacturing
Company Name Industry Description Employment
Size County
Sub-Zero Inc. Household Refrigerator and Home
Freezer Manufacturing 1000+ Dane
Bock Water Heaters Inc. Other Major Household Appliance
Manufacturing 20 - 49 Dane 3379 Other furniture related product manufacturing
Company Name Industry Description Employment
Size County Springs Global Blind and Shade Manufacturing 1000+ Dane Simmons Manufacturing Co. Mattress Manufacturing 250 - 499 Rock Serta Mattress Co. Mattress Manufacturing 100 - 249 Rock
10-21 Wisconsin Economic Future Study
4541 Electronic Shopping and Mail-Order Houses
Company Name Industry Description Employment
Size County S C Data Center Inc. Mail-Order Houses 1000+ Grant Colony Brands Inc. Mail-Order Houses 1000+ Green D M Services Inc. Mail-Order Houses 1000+ Green Seventh Avenue Mail-Order Houses 1000+ Green Ben Meadows Co. Mail-Order Houses 1000+ Rock Swiss Colony Mail-Order Houses 50 - 99 Green McClure & Zimmerman Mail-Order Houses 50 - 99 Columbia Deal Express Disc Ofc Items Mail-Order Houses 20 - 49 Columbia Swiss Colony Mail-Order Houses 50 - 99 Green ABC Catalog Mail-Order Houses 20 - 49 Rock Duluth Holdings Inc. Mail-Order Houses 20 - 49 Dane
10-22 Wisconsin Economic Future Study
10.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, South Region
Table 10-3 Employment in the South Region’s Driver Industries, 2000-2011 Unit: Persons
Table 10-4 Percentage Change for Employment in the South Region’s Driver Industries, 2000-2011 NAICS Title 2000-2003 2003-2008 2008-2011 3113 Sugar and confectionery product manufacturing -12.3% 11.5% -11.2% 3115 Dairy product manufacturing -7.8% 0.2% 8.2% 3272 Glass and glass product manufacturing -10.2% -8.1% -9.4% 3327 Machine shops and threaded product manufacturing -25.0% 3.6% -12.6% 3332 Industrial machinery manufacturing -32.6% -3.0% -24.5% 3333 Commercial and service industry machinery -17.8% 23.9% -6.4% 3335 Metalworking machinery manufacturing -38.4% 8.2% -22.0% 3339 Other general purpose machinery manufacturing -21.7% 25.2% -16.4% 3352 Household appliance manufacturing -19.0% -0.7% 44.8% 3379 Other furniture related product manufacturing -1.5% -22.8% -22.7% 4541 Electronic shopping and mail-order houses -13.9% -13.3% -2.0% 5112 Software publishers -49.4% 431.2% 25.4%
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Table 10-5 Labor Location Quotients* - South Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3113 Sugar and confectionery product manufacturing 2.47 3.01 2.87 3115 Dairy product manufacturing 4.57 4.65 5.00 3272 Glass and glass product manufacturing 2.82 3.02 3.31 3327 Machine shops and threaded product manufacturing 3.30 2.98 2.86 3332 Industrial machinery manufacturing 2.86 2.86 2.50 3333 Commercial and service industry machinery 2.11 2.83 3.06 3335 Metalworking machinery manufacturing 3.10 3.62 3.29 3339 Other general purpose machinery manufacturing 3.56 4.34 4.22 3352 Household appliance manufacturing 2.03 2.25 3.64 3379 Other furniture related product manufacturing 3.54 3.34 3.28 4541 Electronic shopping and mail-order houses 5.22 4.02 3.93 5112 Software publishers 0.62 2.97 3.80
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
10-25 Wisconsin Economic Future Study
Table 10-6 Gross Product in the South Region's Driver Industries, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011
Note: All values are inflated by CPI-U, based on 2011.
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Table 10-7 Percentage Change for Growth Product in the South Region’s Driver Industries, 2000-2011 NAICS Title 2000-2007 2007-2008 2008-2011 3113 Sugar and confectionery product manufacturing -32.0% 0.0% 18.8% 3115 Dairy product manufacturing -10.4% -7.6% 41.1% 3272 Glass and glass product manufacturing -15.7% 2.8% 26.1% 3327 Machine shops and threaded product manufacturing -32.4% -0.3% 9.1% 3332 Industrial machinery manufacturing -26.3% -4.6% 6.6% 3333 Commercial and service industry machinery 14.5% 6.8% 23.6% 3335 Metalworking machinery manufacturing -22.7% -9.3% 1.0% 3339 Other general purpose machinery manufacturing 24.8% -2.9% 9.0% 3352 Household appliance manufacturing 9.6% -26.5% 55.9% 3379 Other furniture related product manufacturing 3.1% -5.2% -14.6% 4541 Electronic shopping and mail-order houses 13.6% -6.7% 18.2% 5112 Software publishers 294.6% 19.7% 35.4%
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Table 10-8 Output Location Quotients* - South Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3113 Sugar and confectionery product manufacturing 3.15 3.61 3.47 3115 Dairy product manufacturing 4.69 4.48 4.87 3272 Glass and glass product manufacturing 3.70 4.18 4.70 3327 Machine shops and threaded product manufacturing 4.30 3.18 3.12 3332 Industrial machinery manufacturing 3.05 3.47 3.57 3333 Commercial and service industry machinery 2.87 4.45 5.21 3335 Metalworking machinery manufacturing 5.49 6.24 6.04 3339 Other general purpose machinery manufacturing 5.86 6.82 7.32 3352 Household appliance manufacturing 2.98 2.33 3.05 3379 Other furniture related product manufacturing 6.34 6.44 4.79 4541 Electronic shopping and mail-order houses 8.45 6.04 6.07 5112 Software publishers 0.48 2.60 3.06
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
11 Southeast Region 11.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis of the Southeast Region, as well as detailed information related to each of the regional driver industries identified. The Southeast Region is defined to include the counties of Dodge, Fond du Lac, Green Lake, Jefferson, Kenosha, Manitowoc, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington, and Waukesha. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the Southeast Region are provided in a tabular form. Tables in the final section in this chapter (11.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries. 11.2 Summary of Regional Driver Industries & Industry Clusters The Southeast Region of Wisconsin has 41 regional driver industries at the 4-digit NAICS (18 drivers at 3-digit NAICS). The regional driver industries of the Southeast Region are shown below.
NAICS Industry description
311 Food manufacturing (partial) 3113 Sugar and confectionery product manufacturing 3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing 3119 Other food manufacturing
316 Leather and allied product manufacturing (partial) 3161 Leather and hide tanning and finishing 3162 Footwear manufacturing
3222 Converted paper product manufacturing 3231 Printing and related support activities 325 Chemical manufacturing (partial)
3255 Paint, coating, and adhesive manufacturing 3256 Soap, cleaning compound, and toiletry manufacturing
3261 Plastics product manufacturing 3279 Other nonmetallic mineral products 3315 Foundries
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NAICS Industry description
332 Fabricated metal product manufacturing (partial) 3321 Forging and stamping 3322 Cutlery and hand-tool manufacturing 3324 Boiler, tank, and shipping container manufacturing 3325 Hardware manufacturing 3326 Spring and wire product manufacturing 3327 Machine shops and threaded product manufacturing 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
333 Machinery manufacturing (complete) 3331 Agriculture, construction, and mining machinery manufacturing 3332 Industrial machinery manufacturing 3333 Commercial and service industry machinery 3334 HVAC and commercial refrigeration equipment 3335 Metalworking machinery manufacturing 3336 Turbine and power transmission equipment manufacturing 3339 Other general purpose machinery manufacturing
335 Electrical equipment, appliance, and component manufacturing (complete) 3351 Electric lighting equipment manufacturing 3352 Household appliance manufacturing 3353 Electrical equipment manufacturing 3359 Other electrical equipment and component manufacturing
336 Transportation equipment manufacturing (partial) 3362 Motor vehicle body and trailer manufacturing 3369 Other transportation equipment manufacturing
3371 Household and institutional furniture manufacturing 3399 Other miscellaneous manufacturing 4246 Chemical merchant wholesalers 4855 Charter bus industry 4889 Other support activities for transportation 5182 Data processing and related services
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11.2.1 How Are the Southeast Region’s Driver Industries Doing?
Figure 11-1 Overview of the Southeast Region Drivers
Interpretation: The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. Historically this region has had a diversified economy, and that continues with the current analysis. The regional economy is driven by 41 4-digit NAICS industries that are clustered in 18 broader economic sectors. Similar to the discriminant and cluster analyses conducted in 2004, the Electrical Equipment Manufacturing industry group remains the largest single driver of the regional economy.
Electrical Equipment Manufacturing illustrates a very high regional concentration (LQ=12) and healthy growth of output from 2008 through 2011 (36.3%). The industry grew from having $1,851 million of gross regional product in 2004 to $2,351 million in 2011. Moreover, this is a low technology-intensive industry group and an anchor of the Electrical Equipment, Appliance, and Component Manufacturing cluster (NAICS 335), complete with all four 4-digit driver industries in the region. Two other industry drivers in this cluster showed extremely high growth of the gross regional product over the last three years (about 60%).
Another complete cluster in this region, Machinery Manufacturing, includes all seven 4-digit NAICS industry groups, two of which are moderate technology-intensive and two are low technology-intensive. All but one industry group in this cluster is highly concentrated in the region (LQ between 2 and 5) and had positive output growth over the last three years. Turbine and Power Transmission Equipment Manufacturing has even higher concentration in the region (LQ=7) but experienced some output decline from 2008 through 2011.
The partial cluster of Fabricated Metal Product Manufacturing and the independent Foundries cluster complement the Machinery and Electrical Equipment manufacturing clusters. The Fabricated Metal cluster, though, is not complete and represents an older economic base of the regional economy. It consists of eight 4-digit industry groups, two of which — the Other Fabricated Metal Product industry group and the Machine Shops and Threaded Product Manufacturing industry group — are more significant in size than the others and have positive growth of output from 2008 through 2011.
Three additional clusters represent the statewide economic base of the Wisconsin economy:
Food Manufacturing, Leather and Allied Product Manufacturing, and a cluster related to Paper Products Manufacturing. The Dairy Product driver is the most prominent in the Food Manufacturing cluster (LQ=4) with an increase of the gross regional product of over 30% from 2008 through 2011. A legacy cluster from 2004, Leather Manufacturing consists of two small industry groups that remain prominent due to their high concentration in the region compared to disappearing leather production in the United States. The Paper Product Manufacturing cluster is represented by Converted Paper Product Manufacturing (LQ=3), with output growth of more than 30% from 2008 through 2011 and the declining Printing and Related Support Activities industry group (LQ=4.3).
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Another legacy cluster, Transportation Equipment Manufacturing, is represented by two industry groups. One of them, Other Transportation Equipment Manufacturing, maintains high regional concentration (LQ=15.7) but is not growing (unlike in the analysis of 2004). The other industry group, Motor Vehicle Body and Trailer Manufacturing, is about the same size as it was in the 2004 analysis ($208 million in 2011 gross regional product), but it saw regional concentration fall from LQ=3.7 in 2004 to LQ=2.3 in 2011.
The partial Chemical Manufacturing cluster is represented not only by the Soap, Cleaning
Compound, and Toiletry Manufacturing industry group (as in the 2004 analysis), but now also by the Paint, Coating, and Adhesive Manufacturing industry group (NAICS 3255) and the related Chemical Merchant Wholesale industry group (NAICS 4246).
One new industry group showed up as an independent cluster: Data Processing and Related
Services (NAICS 5182) has a regional concentration about double the average in the United States and experienced positive economic growth over the last three years.
11.2.2 Driver and Industry Cluster Relationships in the Southeast Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 11-1 and 11-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 11-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to make an impact on the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly affect the competitiveness of those driver industries.
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Table 11-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
42 Wholesale trade 39 14 55 Management of companies and enterprises 39 14 484 Truck transportation 33 6 3222 Paperboard container manufacturing X 16 9 3353 Relay and industrial control manufacturing X 11 1 531 Real estate 9 5 533 Lessors of nonfinancial intangible assets 7 1 3255 Paint and coating manufacturing X 7 2 517 Telecommunications 7 3 3115 Fluid milk and butter manufacturing X 7 3 56A Management, scientific, and technical consulting
services 7 5
5411 Legal services 5 1 3324 Metal can, box, and other metal container (light
gauge) manufacturing X 5 1
3321 All other forging, stamping, and sintering X 5 1 522 Nondepository credit intermediation and related
activities 4 1
3261 Other plastics product manufacturing X 4 6 3363 Motor vehicle parts manufacturing 3 1 3327 Machine shops X 3 2 493 Warehousing and storage 3 3 3116 Animal (except poultry) slaughtering, rendering,
and processing X 3 3
3119 Flavoring syrup and concentrate manufacturing X 3 3 5241 Insurance carriers 3 3 112 Dairy cattle and milk production 3 4 3252 Plastics material and resin manufacturing 3 4 491 Postal service 2 1 562 Waste management and remediation services 2 1 3114 Frozen food manufacturing X 2 1 5617 Services to buildings and dwellings 2 1 8123 Dry-cleaning and laundry services 2 1 492 Couriers and messengers 2 2 3311 Iron and steel mills and ferroalloy manufacturing 2 2 5418 Advertising and related services 2 2 3251 Other basic organic chemical manufacturing 2 7 3323 Ornamental and architectural metal products
manufacturing 2 21
** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers. Table 11-2 is similar to Table 11-1 in that it shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 11-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
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Table 11-2 National Supplier Industries Common to Regional Driver Industries
NAICS Title Count of Driver National Suppliers
3323 Plate work and fabricated structural product manufacturing 21 42 Wholesale trade 14 55 Management of companies and enterprises 14 3222 Paperboard container manufacturing 9 3326 Spring and wire product manufacturing 7 3251 Petrochemical manufacturing 7 3261 Plastics bottle manufacturing 6 484 Truck transportation 6 3113 Sugar cane mills and refining 5 56A 5 531 Real estate 5 112 Dairy cattle and milk production 4 3252 Plastics material and resin manufacturing 4 493 Warehousing and storage 3 3116 Animal (except poultry) slaughtering, rendering, and processing 3 3119 Snack food manufacturing 3 5241 Insurance carriers 3 517 Telecommunications 3 3115 Cheese manufacturing 3 3314 Copper rolling, drawing, extruding and alloying 2 492 Couriers and messengers 2 3311 Iron and steel mills and ferroalloy manufacturing 2 5418 Advertising and related services 2 3327 Machine shops 2 3255 Adhesive manufacturing 2
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11.3 Detailed Descriptions of the Regional Driver Industries
11.3.1 Driver Industry Definitions 311 Food Manufacturing (partial) Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products.
3113 Sugar and confectionery product manufacturing 3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing 3119 Other food manufacturing
316 Leather and Allied Product Manufacturing (partial) Establishments in the Leather and Allied Product Manufacturing subsector transform hides into leather by tanning or curing and fabricating the leather into products for final consumption. It also includes the manufacture of similar products from other materials, including products (except apparel) made from "leather substitutes," such as rubber, plastics, or textiles. Rubber footwear, textile luggage, and plastic purses and wallets are examples of "leather substitute" products included in this group. The products made from leather substitutes are included in this subsector because they are made in ways similar to how leather products are made (e.g., luggage). They are made in the same establishments, so it is not practical to separate them.
3161 Leather and Hide Tanning and Finishing 3162 Footwear Manufacturing
3222 Converted Paper Product Manufacturing This industry group comprises establishments primarily engaged in converting paper or paperboard without manufacturing paper or paperboard. 3231 Printing and Related Support Activities (323 Printing and Related Support Activities) Industries in the Printing and Related Support Activities subsector print products such as newspapers, books, labels, business cards, stationery, business forms, and other materials, and perform support activities such as data imaging, platemaking services, and bookbinding. The support activities included here are an integral part of the printing industry, and a product (a printing plate, a bound book, or a computer disk or file) that is an integral part of the printing industry is almost always provided by these operations. Processes used in printing include a variety of methods used to transfer an image from a plate, screen, film, or computer file to some medium, such as paper, plastics, metal, textile articles, or wood. The most prominent of these methods is to transfer the image from a plate or screen to the medium (lithographic, gravure, screen, and flexographic printing). A rapidly growing new technology uses a computer file to directly "drive" the printing mechanism to create the image and new electrostatic and other types of equipment (digital or nonimpact printing).
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In contrast to many other classification systems that locate publishing of printed materials in manufacturing, NAICS classifies the publishing of printed products in Subsector 511, Publishing Industries (except Internet). Though printing and publishing are often carried out by the same enterprise (a newspaper, for example), it is less and less the case that these distinct activities are carried out in the same establishment. When publishing and printing are done in the same establishment, the establishment is classified in Sector 51, Information, in the appropriate NAICS industry, even if the receipts for printing exceed those for publishing. This subsector includes printing on clothing because the production process for that activity is printing, not clothing manufacturing. For instance, the printing of T-shirts is included in this subsector. In contrast, printing on fabric (or grey goods) is not included. This activity is part of the process of finishing the fabric and is included in the NAICS Textile Mills subsector in Industry 31331, Textile and Fabric Finishing Mills. 325 Chemical Manufacturing (partial) The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further the processing of basic chemicals that make up the remaining industry groups. This subsector does not include all industries transforming raw materials by a chemical process. It is common for some chemical processing to occur during mining operations. These beneficiating operations, such as copper concentrating, are classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. Furthermore, the refining of crude petroleum is included in Subsector 324, Petroleum and Coal Products Manufacturing. In addition, the manufacturing of aluminum oxide is included in Subsector 331, Primary Metal Manufacturing, and beverage distilleries are classified in Subsector 312, Beverage and Tobacco Product Manufacturing. As in the case of these two activities, the grouping of industries into subsectors may take into account the association of the activities performed with other activities in the subsector.
3255 Paint, coating, and adhesive manufacturing 3256 Soap, cleaning compound, and toiletry manufacturing
3261 Plastics Product Manufacturing This industry group comprises establishments primarily engaged in processing new or spent (i.e., recycled) plastics resins into intermediate or final products, using such processes as compression molding, extrusion molding, injection molding, blow molding, and casting. Within most of these industries, the production process is such that a wide variety of products can be made. 3279 Other Nonmetallic Mineral Product Manufacturing The Other Nonmetallic Mineral Product Manufacturing industry group comprises establishments manufacturing nonmetallic mineral products (except clay products, refractory products, glass products, cement and concrete products, lime, and gypsum products).
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3315 Foundries This industry group comprises establishments primarily engaged in pouring molten metal into molds or dies to form castings. Establishments making castings and further manufacturing a specific manufactured product, such as machining or assembling, are classified in the industry of the finished product. Foundries may perform operations, such as cleaning and deburring, on the castings they manufacture. More involved processes, such as tapping, threading, milling, or machining to tight tolerances, that transform castings into more finished products are classified elsewhere in the manufacturing sector based on the product being made. 332 Fabricated Metal Product Manufacturing (Partial) Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products other than machinery, computers and electronics, and metal furniture, or treat metals and metal-formed products fabricated elsewhere. Important fabricated-metal processes are forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal; and other processes, such as welding and assembling, are used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
3321 Forging and stamping 3322 Cutlery and handtool manufacturing 3324 Boiler, tank, and shipping container manufacturing 3325 Hardware manufacturing 3326 Spring and wire product manufacturing 3327 Machine shops and threaded product manufacturing 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
333 Machinery Manufacturing (Complete) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force to perform work, for example, the application of gears and levers. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal. Processes, such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal-forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3331 Agriculture, construction, and mining machinery manufacturing 3332 Industrial machinery manufacturing 3333 Commercial and service industry machinery 3334 HVAC and commercial refrigeration equipment 3335 Metalworking machinery manufacturing 3336 Turbine and power transmission equipment manufacturing 3339 Other general purpose machinery manufacturing
335 Electrical Equipment, Appliance, and Component Manufacturing (Complete) Industries in the Electrical Equipment, Appliance, and Component Manufacturing subsector manufacture products that generate, distribute, and use electrical power. Electric Lighting Equipment Manufacturing establishments produce electric lamp bulbs, lighting fixtures, and parts. Household
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Appliance Manufacturing establishments make both small and major electrical appliances and parts. Electrical Equipment Manufacturing establishments make goods, such as electric motors, generators, transformers, and switchgear apparatus. 0ther Electrical Equipment and Component Manufacturing establishments make devices for storing electrical power (e.g., batteries), devices for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches).
3351 Electric lighting equipment manufacturing 3352 Household appliance manufacturing 3353 Electrical equipment manufacturing 3359 Other electrical equipment and component manufacturing
336 Transportation Equipment Manufacturing (Partial) Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting people and goods. Transportation equipment is a type of machinery. An entire subsector is devoted to this activity because of the significance of its economic size in all three North American countries.
3362 Motor vehicle body and trailer manufacturing 3369 Other transportation equipment manufacturing
3371 Household and Institutional Furniture and Kitchen Cabinet Manufacturing This industry group comprises establishments that manufacture household-type furniture, such as living room, kitchen, and bedroom furniture, and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches. 3399 Other Miscellaneous Manufacturing 4246 Chemical and Allied Products Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of chemicals, plastics materials and basic forms and shapes, and allied products. 4855 Charter Bus Industry This industry group comprises establishments primarily engaged in providing buses for charter. These establishments provide bus services to meet customers’ road transportation needs and generally do not operate over fixed routes and on regular schedules. 4889 Other Support Activities for Transportation This industry group comprises establishments primarily engaged in providing support activities to transportation (except for air transportation, rail transportation, water transportation, road transportation, and freight transportation arrangement). 5182 Data Processing, Hosting, and Related Services This industry group comprises establishments primarily engaged in providing infrastructure for hosting data or data processing services. These establishments may provide specialized hosting activities, such as web hosting, streaming services, or application hosting; provide application service provisioning; or may provide general time-share mainframe facilities to clients. Data processing establishments provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data-entry services.
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11.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is “regionalized” to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 11-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
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3113 Sugar and confectionery product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 1119 Sugarcane and sugar beet farming
55 Management of companies and enterprises 3113 Sugar cane mills and refining
3222 Paperboard container manufacturing 55 Management of companies and enterprises
3115 Fluid milk and butter manufacturing 42 Wholesale trade
3113 Chocolate and confectionery manufacturing from cacao beans
3222 Paperboard container manufacturing
484 Truck transportation 3112 Wet corn milling 3115 Cheese manufacturing 3113 Beet sugar manufacturing 2211 Electric power generation, transmission, and
distribution 3119 Snack food manufacturing
3115 Dry, condensed, and evaporated dairy product manufacturing
484 Truck transportation
Consumer Industries for Typical Regional Industry
3113 Chocolate and confectionery manufacturing from cacao beans
3113 Confectionery manufacturing from purchased chocolate
3115 Cheese manufacturing 722 Food services and drinking places 3119 Seasoning and dressing manufacturing 3119 Flavoring syrup and concentrate
manufacturing 3121 Soft drink and ice manufacturing
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3114 Fruit and vegetable preserving and specialty Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade 55 Management of companies and enterprises
3324 Metal can, box, and other metal container (light gauge) manufacturing
3222 Paperboard container manufacturing 55 Management of companies and enterprises 3324 Metal can, box, and other metal container (light
gauge) manufacturing
3114 Fruit and vegetable canning, pickling, and drying
3116 Animal (except poultry) slaughtering, rendering, and processing
3222 Paperboard container manufacturing
484 Truck transportation 1112 Vegetable and melon farming 3119 Flavoring syrup and concentrate manufacturing 3119 Flavoring syrup and concentrate manufacturing 3114 Frozen food manufacturing 2211 Electric power generation, transmission, and
distribution
1112 Vegetable and melon farming 3115 Cheese manufacturing 3114 Fruit and vegetable canning, pickling, and drying Consumer Industries for Typical Regional Industry
3114 Frozen food manufacturing 722 Food services and drinking places 3114 Fruit and vegetable canning, pickling, and
drying 622 Hospitals 3119 Seasoning and dressing manufacturing 611 Junior colleges, colleges, universities, and
professional schools 3119 Flavoring syrup and concentrate
manufacturing 3118 Bread and bakery product manufacturing 623 Nursing and residential care facilities 3121 Soft drink and ice manufacturing 3119 All other food manufacturing
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3115 Dairy product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Dairy cattle and milk production 112 Dairy cattle and milk production
42 Wholesale trade 3115 Fluid milk and butter manufacturing
484 Truck transportation 42 Wholesale trade
3115 Fluid milk and butter manufacturing 3115 Dry, condensed, and evaporated dairy product manufacturing
55 Management of companies and enterprises 484 Truck transportation 3115 Dry, condensed, and evaporated dairy product
manufacturing 55 Management of companies and enterprises
3222 Paperboard container manufacturing Consumer Industries for Typical Regional Industry
3115 Cheese manufacturing 722 Food services and drinking places 3115 Fluid milk and butter manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 3113 Chocolate and confectionery manufacturing
from cacao beans 622 Hospitals 611 Junior colleges, colleges, universities, and
professional schools 3114 Frozen food manufacturing 3119 Seasoning and dressing manufacturing 3115 Ice cream and frozen dessert manufacturing 3115 Cheese manufacturing
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3116 Animal slaughtering and processing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3116 Animal (except poultry) slaughtering, rendering,
and processing 112 Cattle ranching and farming
112 Cattle ranching and farming 3116 Animal (except poultry) slaughtering, rendering, and processing
484 Truck transportation 112 Poultry and egg production
55 Management of companies and enterprises 112 Animal production, except cattle and poultry and eggs
112 Animal production, except cattle and poultry and eggs
3116 Poultry processing
42 Wholesale trade 55 Management of companies and enterprises 2211 Electric power generation, transmission, and
distribution 484 Truck transportation
42 Wholesale trade Consumer Industries for Typical Regional Industry
3116 Animal (except poultry) slaughtering, rendering, and processing
722 Food services and drinking places 622 Hospitals 3161 Leather and hide tanning and finishing 3114 Frozen food manufacturing 611 Junior colleges, colleges, universities, and
professional schools 3111 Dog and cat food manufacturing 3256 Soap and cleaning compound manufacturing 623 Nursing and residential care facilities
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3119 Other food manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3119 Flavoring syrup and concentrate manufacturing 3119 Flavoring syrup and concentrate manufacturing
55 Management of companies and enterprises 42 Wholesale trade
42 Wholesale trade 1119 All other crop farming
3222 Paperboard container manufacturing 55 Management of companies and enterprises
3119 Seasoning and dressing manufacturing 1113 Fruit farming
484 Truck transportation 3222 Paperboard container manufacturing 3261 Plastics bottle manufacturing 3112 Soybean and other oilseed processing 484 Truck transportation Consumer Industries for Typical Regional Industry
3119 Seasoning and dressing manufacturing 3119 Flavoring syrup and concentrate
manufacturing 3121 Soft drink and ice manufacturing 3114 Fruit and vegetable canning, pickling, and
drying 722 Food services and drinking places 3115 Cheese manufacturing 3119 All other food manufacturing 3116 Animal (except poultry) slaughtering,
rendering, and processing 3161 Leather and hide tanning and finishing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3116 Animal (except poultry) slaughtering, rendering,
and processing 3116 Animal (except poultry) slaughtering,
rendering, and processing 42 Wholesale trade 42 Wholesale trade
484 Truck transportation
Consumer Industries for Typical Regional Industry
3363 Motor vehicle parts manufacturing 3161 Leather and hide tanning and finishing 3162 Footwear manufacturing 3231 Printing
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3162 Footwear manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade
55 Management of companies and enterprises 55 Management of companies and enterprises
484 Truck transportation 3261 Plastics packaging materials and unlaminated film and sheet manufacturing
3261 Other plastics product manufacturing 3261 Other plastics product manufacturing
2211 Electric power generation, transmission, and distribution
3222 Paperboard container manufacturing
52A Monetary authorities and depository credit intermediation
3133 Fabric coating mills
3252 Plastics material and resin manufacturing 484 Truck transportation 3133 Textile and fabric finishing mills 3161 Leather and hide tanning and finishing Consumer Industries for Typical Regional Industry
3162 Footwear manufacturing 624 Individual and family services 624 Community food, housing, and other relief
services, including rehabilitation services 3222 Converted paper product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3221 Paper mills
55 Management of companies and enterprises 3221 Paperboard Mills
484 Truck transportation 42 Wholesale trade
3222 Sanitary paper product manufacturing 3222 Sanitary paper product manufacturing
3222 Paperboard container manufacturing 55 Management of companies and enterprises
2211 Electric power generation, transmission, and distribution
3255 Adhesive manufacturing
3251 Petrochemical manufacturing Consumer Industries for Typical Regional Industry
3116 Animal (except poultry) slaughtering, rendering, and processing
3222 Sanitary paper product manufacturing 3222 Paperboard container manufacturing
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3231 Printing and related support activities Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3221 Paper mills
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
42 Wholesale trade
55 Management of companies and enterprises 3222 Coated and laminated paper, packaging paper and plastics film manufacturing
3222 Sanitary paper product manufacturing 3222 Sanitary paper product manufacturing
522 Nondepository credit intermediation and related activities
55 Management of companies and enterprises
3259 Printing ink manufacturing 3259 Printing ink manufacturing 2211 Electric power generation, transmission, and
distribution 531 Real estate
484 Truck transportation 531 Real estate 5413 Architectural, engineering, and related services Consumer Industries for Typical Regional Industry
55 Management of companies and enterprises 42 Wholesale trade 52A Monetary authorities and depository credit
and related activities 722 Food services and drinking places 522 Nondepository credit intermediation and
related activities 5111 Periodical publishers
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3255 Paint, coating, and adhesive manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3251 Petrochemical manufacturing
42 Wholesale trade 3252 Plastics material and resin manufacturing
3251 Other basic organic chemical manufacturing 55 Management of companies and enterprises
484 Truck transportation 3251 Synthetic dye and pigment manufacturing
3255 Paint and coating manufacturing 3241 Petroleum refineries
3252 Plastics material and resin manufacturing 3251 Other basic organic chemical manufacturing 533 Lessors of nonfinancial intangible assets 5417 Scientific research and development services 3324 Metal can, box, and other metal container (light
gauge) manufacturing 42 Wholesale trade
3255 Paint and coating manufacturing Consumer Industries for Typical Regional Industry
3329 Other fabricated metal manufacturing 3324 Metal can, box, and other metal container
(light gauge) manufacturing 3328 Coating, engraving, heat treating and allied
activities 3255 Paint and coating manufacturing 3331 Construction machinery manufacturing 3336 Other engine equipment manufacturing 3256 Soap and cleaning compound manufacturing 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 23 Construction of other new nonresidential
structures 3259 Printing ink manufacturing
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3256 Soap, cleaning compound, and toiletry manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3256 Soap and cleaning compound manufacturing 444 Retail - Building material and garden supply
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
42 Wholesale trade 2122 Iron ore mining
3222 Paperboard container manufacturing 3279 Ground or treated mineral and earth manufacturing
3261 Other plastics product manufacturing n.a. Federal electric utilities
3261 Laminated plastics plate, sheet (except packaging), and shape manufacturing
2131 Support activities for oil and gas operations 3151 Apparel knitting mills 452 Retail - General merchandise Consumer Industries for Typical Regional Industry
3256 Soap and cleaning compound manufacturing 55 Management of companies and enterprises 3253 Pesticide and other agricultural chemical
manufacturing 611 Junior colleges, colleges, universities, and
professional schools 622 Hospitals 3251 Other basic organic chemical manufacturing 1111 Grain farming 3115 Cheese manufacturing 5617 Services to buildings and dwellings 8123 Dry-cleaning and laundry services 3261 Plastics product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3252 Plastics material and resin manufacturing 5191 Internet publishing and broadcasting
42 Wholesale trade 3311 Iron and steel mills and ferroalloy manufacturing
55 Management of companies and enterprises 8111 Car washes
2211 Electric power generation, transmission, and distribution
2122 Iron ore mining
3222 Paperboard container manufacturing
52A Monetary authorities and depository credit intermediation
484 Truck transportation
3251 Other basic organic chemical manufacturing
5419 All other miscellaneous professional, scientific, and technical services
Consumer Industries for Typical Regional Industry
3256 Soap and cleaning compound manufacturing 3261 Other plastics product manufacturing 622 Hospitals 3115 Cheese manufacturing 3119 Seasoning and dressing manufacturing
11-22 Wisconsin Economic Future Study
11-23 Wisconsin Economic Future Study
3279 Other nonmetallic mineral products Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3113 Nonchocolate confectionery manufacturing
484 Truck transportation 3323 Plate work and fabricated structural product manufacturing
42 Wholesale trade 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
5614 Business support services
3279 Abrasive product manufacturing 493 Warehousing and storage
52A Monetary authorities and depository credit intermediation
3113 Chocolate and confectionery manufacturing from cacao beans
23 Maintenance and repair construction of nonresidential maintenance and repair
3335 Metal cutting and forming machine tool manufacturing
2123 Stone mining and quarrying 5414 Specialized design services Consumer Industries for Typical Regional Industry
23 Construction of other new residential structures
23 Construction of other new nonresidential structures
23 Construction of new nonresidential commercial and health care structures
3329 Other fabricated metal manufacturing 23 Construction of new residential permanent
site single- and multi-family structures 3279 Abrasive product manufacturing 3315 Ferrous metal foundries 722 Food services and drinking places 3315 Foundries Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 2122 Iron ore mining 42 Wholesale trade 3323 Plate work and fabricated structural product
manufacturing 2211 Electric power generation, transmission, and
distribution 5614 Business support services
23 Maintenance and repair construction of nonresidential maintenance and repair
3313 Aluminum product manufacturing from purchased aluminum
5617 Services to buildings and dwellings 3273 Concrete pipe, brick, and block manufacturing 52A Monetary authorities and depository credit
intermediation
523 Securities, commodity contracts, investments, and related activities
484 Truck transportation Consumer Industries for Typical Regional Industry 3336 Other engine equipment manufacturing 3331 Construction machinery manufacturing 3363 Motor vehicle parts manufacturing 3369 Motorcycle, bicycle, and parts manufacturing
11-24 Wisconsin Economic Future Study
3321 Forging and stamping Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 3312 Steel product manufacturing from purchased
steel 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
1119 All other crop farming
3321 All other forging, stamping, and sintering 3399 Office supplies (except paper) manufacturing 484 Truck transportation 3241 All other petroleum and coal products
manufacturing 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 52A Monetary authorities and depository credit
intermediation
523 Securities, commodity contracts, investments, and related activities
23 Maintenance and repair construction of nonresidential maintenance and repair
3311 Iron and steel mills and ferroalloy manufacturing 3311 Iron and steel mills and ferroalloy manufacturing 517 Telecommunications Consumer Industries for Typical Regional Industry 3345 Irradiation apparatus manufacturing
3336 Other engine equipment manufacturing
3331 Farm machinery and equipment manufacturing
3321 All other forging, stamping, and sintering
11-25 Wisconsin Economic Future Study
3322 Cutlery and handtool manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 3222 Paperboard container manufacturing 2122 Iron ore mining
55 Management of companies and enterprises 1119 All other crop farming
3329 Other fabricated metal manufacturing 3399 Office supplies (except paper) manufacturing 3312 Steel product manufacturing from purchased
steel 3241 All other petroleum and coal products
manufacturing 2211 Electric power generation, transmission, and
distribution 3323 Plate work and fabricated structural product
52A Monetary authorities and depository credit intermediation
5411 Legal services 5413 Architectural, engineering, and related services Consumer Industries for Typical Regional Industry 3369 Motorcycle, bicycle, and parts manufacturing 8121 Personal care services 3329 Other fabricated metal manufacturing 3336 Other engine equipment manufacturing
11-26 Wisconsin Economic Future Study
3324 Boiler, tank, and shipping container manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3324 Metal can, box, and other metal container (light
gauge) manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 42 Wholesale trade 2122 Iron ore mining
3312 Steel product manufacturing from purchased steel
1119 All other crop farming
3255 Paint and coating manufacturing 3399 Office supplies (except paper) manufacturing 484 Truck transportation 3241 All other petroleum and coal products
manufacturing 2211 Electric power generation, transmission, and
distribution 3323 Plate work and fabricated structural product
manufacturing 55 Management of companies and enterprises 52A Monetary authorities and depository credit
intermediation
3323 Ornamental and architectural metal products manufacturing
523 Securities, commodity contracts, investments, and related activities
Consumer Industries for Typical Regional Industry 3121 Breweries 3324 Metal can, box, and other metal container
(light gauge) manufacturing 3114 Fruit and vegetable canning, pickling, and
drying 3331 Construction machinery manufacturing 3111 Dog and cat food manufacturing 3256 Soap and cleaning compound manufacturing 3369 Motorcycle, bicycle, and parts manufacturing
11-27 Wisconsin Economic Future Study
3325 Hardware manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 3321 Crown and closure manufacturing and metal
stamping 2122 Iron ore mining
55 Management of companies and enterprises 1119 All other crop farming
52A Monetary authorities and depository credit intermediation
3399 Office supplies (except paper) manufacturing
3222 Paperboard container manufacturing 3241 All other petroleum and coal products manufacturing
3315 Nonferrous metal foundries 3323 Plate work and fabricated structural product manufacturing
523 Securities, commodity contracts, investments, and related activities
484 Truck transportation 3312 Steel product manufacturing from purchased
steel
Consumer Industries for Typical Regional Industry 3325 Hardware manufacturing 3327 Turned product and screw, nut, and bolt
manufacturing 3336 Other engine equipment manufacturing
11-28 Wisconsin Economic Future Study
3326 Spring and wire product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 3326 Spring and wire product manufacturing 2122 Iron ore mining
55 Management of companies and enterprises 1119 All other crop farming
3312 Steel product manufacturing from purchased steel
3399 Office supplies (except paper) manufacturing
484 Truck transportation 3241 All other petroleum and coal products manufacturing
2211 Electric power generation, transmission, and distribution
3323 Plate work and fabricated structural product manufacturing
52A Monetary authorities and depository credit intermediation
523 Securities, commodity contracts, investments, and related activities
531 Real estate Consumer Industries for Typical Regional Industry 3379 Mattress manufacturing 3312 Steel product manufacturing from purchased
steel 3326 Spring and wire product manufacturing 3327 Turned product and screw, nut, and bolt
manufacturing 3329 Other fabricated metal manufacturing 3331 Construction machinery manufacturing 3323 Plate work and fabricated structural product
manufacturing
11-29 Wisconsin Economic Future Study
3327 Machine shops; turned product; and screw, nut, and bolt manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3313 Aluminum product manufacturing from
purchased aluminum 42 Wholesale trade 2122 Iron ore mining
5415 Custom computer programming services 1119 All other crop farming
52A Monetary authorities and depository credit intermediation
3399 Office supplies (except paper) manufacturing
2211 Electric power generation, transmission, and distribution
3241 All other petroleum and coal products manufacturing
531 Real estate 3323 Plate work and fabricated structural product manufacturing
523 Securities, commodity contracts, investments, and related activities
3327 Machine shops 3315 Nonferrous metal foundries 522 Nondepository credit intermediation and related
activities
Consumer Industries for Typical Regional Industry 3369 Motorcycle, bicycle, and parts manufacturing 3363 Motor vehicle parts manufacturing
3328 Coating, engraving, and heat treating metals Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3255 Paint and coating manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 42 Wholesale trade 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
1119 All other crop farming
55 Management of companies and enterprises 3399 Office supplies (except paper) manufacturing 3312 Steel product manufacturing from purchased
steel 3241 All other petroleum and coal products
manufacturing 8123 Dry-cleaning and laundry services 3323 Plate work and fabricated structural product
manufacturing 531 Real estate 52A Monetary authorities and depository credit
intermediation
23 Maintenance and repair construction of nonresidential maintenance and repair
523 Securities, commodity contracts, investments, and related activities
Consumer Industries for Typical Regional Industry 3369 Motorcycle, bicycle, and parts manufacturing 3256 Soap and cleaning compound manufacturing
3328 Coating, engraving, heat treating and allied activities
3363 Motor vehicle parts manufacturing
3345 Irradiation apparatus manufacturing
3336 Other engine equipment manufacturing
3329 Other fabricated metal manufacturing
3331 Construction machinery manufacturing
23 Construction of other new residential structures
3324 Metal can, box, and other metal container (light gauge) manufacturing
11-31 Wisconsin Economic Future Study
3329 Other fabricated metal product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 2122 Iron ore mining
2211 Electric power generation, transmission, and distribution
manufacturing 3255 Paint and coating manufacturing 3323 Plate work and fabricated structural product
manufacturing 52A Monetary authorities and depository credit
intermediation
3315 Ferrous metal foundries 3315 Nonferrous metal foundries 523 Securities, commodity contracts, investments,
and related activities
Consumer Industries for Typical Regional Industry 3329 Other fabricated metal manufacturing 3331 Construction machinery manufacturing 3336 Other engine equipment manufacturing 3369 Motorcycle, bicycle, and parts manufacturing 3331 Farm machinery and equipment
manufacturing 23 Construction of other new nonresidential
structures 3222 Sanitary paper product manufacturing 23 Construction of new nonresidential
manufacturing structures 3322 Cutlery, utensil, pot, and pan manufacturing 3115 Cheese manufacturing
11-32 Wisconsin Economic Future Study
3331 Agriculture, construction, and mining machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 3336 Other engine equipment manufacturing 3323 Plate work and fabricated structural product
manufacturing 55 Management of companies and enterprises 3313 Aluminum product manufacturing from
purchased aluminum 3315 Ferrous metal foundries 3326 Spring and wire product manufacturing 484 Truck transportation 3345 Watch, clock, and other measuring and
controlling device manufacturing 3324 Metal can, box, and other metal container (light
gauge) manufacturing 3345 Totalizing fluid meters and counting devices
manufacturing 3363 Motor vehicle parts manufacturing 3241 All other petroleum and coal products
manufacturing 3261 Other plastics product manufacturing 3331 Construction machinery manufacturing 3321 Crown and closure manufacturing and metal
stamping
Consumer Industries for Typical Regional Industry 3331 Construction machinery manufacturing
3331 Farm machinery and equipment manufacturing
23 Construction of other new residential structures
23 Construction of other new nonresidential structures
23 Construction of new nonresidential commercial and health care structures
112 Dairy cattle and milk production
23 Maintenance and repair construction of nonresidential maintenance and repair
1111 Grain farming
3339 Material handling equipment manufacturing
3336 Other engine equipment manufacturing
11-33 Wisconsin Economic Future Study
3332 Industrial machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
purchased aluminum 3315 Ferrous metal foundries 3326 Spring and wire product manufacturing 3353 Relay and industrial control manufacturing 3345 Watch, clock, and other measuring and
3251 All other basic inorganic chemical manufacturing
11-34 Wisconsin Economic Future Study
3333 Commercial and service industry machinery Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 531 Real estate 3313 Aluminum product manufacturing from
purchased aluminum 56A Management, scientific, and technical consulting
services 3326 Spring and wire product manufacturing
52A Monetary authorities and depository credit intermediation
3345 Watch, clock, and other measuring and controlling device manufacturing
517 Telecommunications 3345 Totalizing fluid meters and counting devices manufacturing
5419 All other miscellaneous professional, scientific, and technical services
3241 All other petroleum and coal products manufacturing
533 Lessors of nonfinancial intangible assets Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential
structures 3333 Other commercial and service industry
machinery manufacturing 611 Elementary and secondary schools
3333 Vending, commercial, industrial, and office machinery manufacturing
23 Construction of new residential permanent site single- and multi-family structures
23 Construction of new nonresidential commercial and health care structures
3315 Ferrous metal foundries
8121 Personal care services
3379 Mattress manufacturing
5617 Services to buildings and dwellings
11-35 Wisconsin Economic Future Study
3334 HVAC and commercial refrigeration equipment Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 3353 Motor and generator manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 3334 Air conditioning, refrigeration, and warm air
heating equipment manufacturing 3326 Spring and wire product manufacturing
484 Truck transportation 3345 Watch, clock, and other measuring and controlling device manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3345 Totalizing fluid meters and counting devices manufacturing
3315 Ferrous metal foundries 3241 All other petroleum and coal products manufacturing
3353 Relay and industrial control manufacturing 3312 Steel product manufacturing from purchased
steel
52A Monetary authorities and depository credit intermediation
Consumer Industries for Typical Regional Industry
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new nonresidential structures
23 Construction of other new residential structures
3333 Vending, commercial, industrial, and office machinery manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
11-36 Wisconsin Economic Future Study
3335 Metalworking machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 2122 Iron ore mining 42 Wholesale trade 3323 Plate work and fabricated structural product
Consumer Industries for Typical Regional Industry 3315 Nonferrous metal foundries 3329 Other fabricated metal manufacturing 3335 Special tool, die, jig, and fixture manufacturing 3327 Turned product and screw, nut, and bolt
manufacturing 3336 Other engine equipment manufacturing 3327 Machine shops
3321 All other forging, stamping, and sintering
3315 Ferrous metal foundries
3335 Industrial mold manufacturing
3331 Construction machinery manufacturing
11-37 Wisconsin Economic Future Study
3336 Engine, turbine, and power transmission equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3336 Other engine equipment manufacturing 2122 Iron ore mining 42 Wholesale trade 3323 Plate work and fabricated structural product
manufacturing 3321 All other forging, stamping, and sintering 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 3326 Spring and wire product manufacturing 3315 Ferrous metal foundries 3345 Watch, clock, and other measuring and
manufacturing 3315 Nonferrous metal foundries 3241 All other petroleum and coal products
manufacturing 2211 Electric power generation, transmission, and
distribution
3353 Motor and generator manufacturing 3336 Mechanical power transmission equipment
manufacturing
3336 Other engine equipment manufacturing Consumer Industries for Typical Regional Industry 3336 Other engine equipment manufacturing 3331 Construction machinery manufacturing 3331 Farm machinery and equipment
manufacturing 3331 Lawn and garden equipment manufacturing 3353 Motor and generator manufacturing
11-38 Wisconsin Economic Future Study
3339 Other general purpose machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 3315 Ferrous metal foundries 3313 Aluminum product manufacturing from
purchased aluminum 3353 Motor and generator manufacturing 3326 Spring and wire product manufacturing 484 Truck transportation 3345 Watch, clock, and other measuring and
controlling device manufacturing 3353 Relay and industrial control manufacturing 3345 Totalizing fluid meters and counting devices
and related activities 3241 All other petroleum and coal products
manufacturing Consumer Industries for Typical Regional Industry 3331 Construction machinery manufacturing 3339 Material handling equipment manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new nonresidential structures
3336 Other engine equipment manufacturing
3339 Pump and pumping equipment manufacturing
3331 Farm machinery and equipment manufacturing
11-39 Wisconsin Economic Future Study
3351 Electric lighting equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade 55 Management of companies and enterprises 3353 Power, distribution, and specialty transformer
manufacturing 3353 Power, distribution, and specialty transformer
manufacturing 55 Management of companies and enterprises
3222 Paperboard container manufacturing 3222 Paperboard container manufacturing 3255 Paint and coating manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 484 Truck transportation 3344 Semiconductor and related device
manufacturing 3315 Nonferrous metal foundries 3311 Iron and steel mills and ferroalloy
manufacturing 533 Lessors of nonfinancial intangible assets 2211 Electric power generation, transmission, and
distribution
5411 Legal services Consumer Industries for Typical Regional Industry 23 Construction of new nonresidential
manufacturing structures 23 Construction of other new nonresidential
structures 23 Construction of new nonresidential
commercial and health care structures 3336 Other engine equipment manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3369 Motorcycle, bicycle, and parts manufacturing
23 Construction of other new residential structures
11-40 Wisconsin Economic Future Study
3352 Household appliance manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3254 Medicinal and botanical manufacturing
3261 Other plastics product manufacturing 5191 Internet publishing and broadcasting 3222 Paperboard container manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 3353 Motor and generator manufacturing 8111 Car washes 484 Truck transportation 3339 Air and gas compressor manufacturing 3321 Crown and closure manufacturing and metal
stamping
3252 Plastics material and resin manufacturing 3353 Relay and industrial control manufacturing 2211 Electric power generation, transmission, and
distribution
Consumer Industries for Typical Regional Industry 8121 Personal care services 23 Construction of other new nonresidential structures 23 Construction of other new residential structures 23 Construction of new nonresidential commercial and
health care structures 23 Construction of new residential permanent site single-
and multi-family structures 8114 Personal and household goods repair and maintenance
8123 Dry-cleaning and laundry services
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
3261 Other plastics product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
11-41 Wisconsin Economic Future Study
3353 Electrical equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 3353 Relay and industrial control manufacturing 3334 Heating equipment (except warm air furnaces)
manufacturing 55 Management of companies and enterprises 3112 Soybean and other oilseed processing
3353 Switchgear and switchboard apparatus manufacturing
3323 Plate work and fabricated structural product manufacturing
484 Truck transportation 3313 Aluminum product manufacturing from purchased aluminum
3312 Steel product manufacturing from purchased steel
1113 Fruit farming
2211 Electric power generation, transmission, and distribution
3336 Other engine equipment manufacturing Consumer Industries for Typical Regional Industry 3353 Relay and industrial control manufacturing 3353 Switchgear and switchboard apparatus
manufacturing 3336 Other engine equipment manufacturing 3331 Construction machinery manufacturing
3339 Pump and pumping equipment manufacturing
11-42 Wisconsin Economic Future Study
3359 Other electrical equipment and component manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3314 Copper rolling, drawing, extruding and alloying 55 Management of companies and enterprises 42 Wholesale trade
2211 Electric power generation, transmission, and distribution
3251 Petrochemical manufacturing
484 Truck transportation 55 Management of companies and enterprises 23 Maintenance and repair construction of
nonresidential maintenance and repair 3252 Plastics material and resin manufacturing
3314 Nonferrous metal (except copper and aluminum) rolling, drawing, extruding and alloying
3344 Semiconductor and related device manufacturing
3321 Crown and closure manufacturing and metal stamping
3314 Nonferrous metal (except copper and aluminum) rolling, drawing, extruding and alloying
Consumer Industries for Typical Regional Industry 3331 Construction machinery manufacturing 3336 Other engine equipment manufacturing 23 Construction of other new nonresidential
structures 3331 Farm machinery and equipment
manufacturing 23 Construction of other new residential
23 Construction of new nonresidential commercial and health care structures
3333 Vending, commercial, industrial, and office machinery manufacturing
3353 Motor and generator manufacturing
11-43 Wisconsin Economic Future Study
3362 Motor vehicle body and trailer manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3345 Totalizing fluid meters and counting devices
manufacturing 42 Wholesale trade 3261 Urethane and other foam product (except
polystyrene) manufacturing 484 Truck transportation 2122 Iron ore mining
3255 Paint and coating manufacturing 3323 Plate work and fabricated structural product manufacturing
3362 Motor vehicle body manufacturing 3141 Carpet and rug mills 3363 Motor vehicle parts manufacturing 3399 Office supplies (except paper) manufacturing 3323 Ornamental and architectural metal products
manufacturing 3313 Aluminum product manufacturing from
purchased aluminum 3312 Steel product manufacturing from purchased
steel
523 Securities, commodity contracts, investments, and related activities
533 Lessors of nonfinancial intangible assets Consumer Industries for Typical Regional Industry 3331 Construction machinery manufacturing 3362 Motor vehicle body manufacturing
3363 Motor vehicle parts manufacturing
8111 Automotive repair and maintenance, except car washes
3336 Other engine equipment manufacturing 3331 Lawn and garden equipment manufacturing 484 Truck transportation 3331 Farm machinery and equipment
manufacturing
11-44 Wisconsin Economic Future Study
3369 Other transportation equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3369 Motorcycle, bicycle, and parts manufacturing 2122 Iron ore mining 42 Wholesale trade 442 Retail - Furniture and home furnishings
55 Management of companies and enterprises 3323 Plate work and fabricated structural product manufacturing
3312 Steel product manufacturing from purchased steel
1119 Sugarcane and sugar beet farming
5413 Architectural, engineering, and related services 3369 Military armored vehicle, tank, and tank component manufacturing
533 Lessors of nonfinancial intangible assets 3345 Totalizing fluid meters and counting devices manufacturing
484 Truck transportation 3313 Aluminum product manufacturing from purchased aluminum
523 Securities, commodity contracts, investments, and related activities
3241 All other petroleum and coal products manufacturing
3327 Machine shops 3118 Bread and bakery product manufacturing 3324 Metal can, box, and other metal container (light
Consumer Industries for Typical Regional Industry 3369 Motorcycle, bicycle, and parts manufacturing 8114 Personal and household goods repair and
maintenance 3369 All other transportation equipment
manufacturing 485 Transit and ground passenger transportation 3322 Handtool manufacturing 624 Child day care services 3362 Travel trailer and camper manufacturing 624 Individual and family services 8111 Automotive repair and maintenance, except
car washes
11-45 Wisconsin Economic Future Study
3371 Household and institutional furniture, and kitchen cabinet manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 484 Truck transportation 3342 Other communications equipment
manufacturing 55 Management of companies and enterprises 711 Independent artists, writers, and performers
3222 Paperboard container manufacturing 8112 Electronic and precision equipment repair and maintenance
3255 Paint and coating manufacturing 3113 Nonchocolate confectionery manufacturing 3162 Footwear manufacturing Consumer Industries for Typical Regional Industry 3336 Other engine equipment manufacturing 3371 Institutional furniture manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new nonresidential structures
23 Construction of new residential permanent site single- and multi-family structures
23 Construction of other new residential structures
11-46 Wisconsin Economic Future Study
3399 Other miscellaneous manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade 484 Truck transportation 3251 Petrochemical manufacturing
55 Management of companies and enterprises 3252 Plastics material and resin manufacturing
3222 Paperboard container manufacturing 55 Management of companies and enterprises 517 Telecommunications 484 Truck transportation 531 Real estate 3261 Plastics packaging materials and unlaminated
film and sheet manufacturing 2211 Electric power generation, transmission, and
distribution 3327 Machine shops
531 Real estate Consumer Industries for Typical Regional Industry 55 Management of companies and enterprises 42 Wholesale trade
52A Monetary authorities and depository credit intermediation
722 Food services and drinking places 3336 Other engine equipment manufacturing 8122 Death care services 523 Securities, commodity contracts, investments,
and related activities 3353 Relay and industrial control manufacturing 522 Nondepository credit intermediation and
related activities
11-47 Wisconsin Economic Future Study
4246 Chemical and allied products merchant wholesalers Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 42 Wholesale trade 55 Management of companies and enterprises 55 Management of companies and enterprises
492 Couriers and messengers 531 Real estate
493 Warehousing and storage 492 Couriers and messengers 531 Real estate 493 Warehousing and storage 5241 Insurance carriers 5241 Insurance carriers 522 Nondepository credit intermediation and related
activities 517 Telecommunications
3231 Printing 56A Management, scientific, and technical consulting services
491 Postal service 522 Nondepository credit intermediation and related activities
517 Telecommunications 5418 Advertising and related services 56A Management, scientific, and technical consulting
services
5418 Advertising and related services 52A Monetary authorities and depository credit
intermediation
Consumer Industries for Typical Regional Industry 3256 Soap and cleaning compound manufacturing 3115 Cheese manufacturing
42 Wholesale trade
3336 Other engine equipment manufacturing 3331 Construction machinery manufacturing 3353 Relay and industrial control manufacturing 3369 Motorcycle, bicycle, and parts manufacturing
11-48 Wisconsin Economic Future Study
4855 Charter bus industry Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 5241 Insurance carriers 3241 Petroleum refineries 8123 Dry-cleaning and laundry services 3363 Motor vehicle parts manufacturing
56A Management, scientific, and technical consulting services
5241 Insurance carriers
55 Management of companies and enterprises 3327 Machine shops
52A Monetary authorities and depository credit intermediation
56A Management, scientific, and technical consulting services
562 Waste management and remediation services 8123 Dry-cleaning and laundry services 56A Employment services 55 Management of companies and enterprises 42 Wholesale trade 517 Telecommunications 517 Telecommunications 522 Nondepository credit intermediation and related
activities
5411 Legal services 5242 Insurance agencies, brokerages, and related
activities
3363 Motor vehicle parts manufacturing 2211 Electric power generation, transmission, and
distribution
Consumer Industries for Typical Regional Industry 52A Monetary authorities and depository credit
intermediation 711 Promoters of performing arts and sports and
agents for public figures 522 Nondepository credit intermediation and
related activities 621 Offices of physicians, dentists, and other
health practitioners 523 Securities, commodity contracts, investments,
and related activities
11-49 Wisconsin Economic Future Study
4889 Other support activities for transportation Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 492 Couriers and messengers 492 Couriers and messengers 491 Postal service 48A Scenic and sightseeing transportation and
support activities for transportation 48A Scenic and sightseeing transportation and
support activities for transportation 491 Postal service
56A Employment services 56A Employment services
493 Warehousing and storage 493 Warehousing and storage
5617 Services to buildings and dwellings 531 Real estate 5241 Insurance carriers 5241 Insurance carriers 562 Waste management and remediation services 5617 Services to buildings and dwellings 55 Management of companies and enterprises 3241 Petroleum refineries 562 Waste management and remediation services Consumer Industries for Typical Regional Industry 484 Truck transportation 481 Air transportation
42 Wholesale trade
48A Scenic and sightseeing transportation and support activities for transportation
11-50 Wisconsin Economic Future Study
5182 Data processing, hosting, and related services Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 517 Telecommunications 517 Telecommunications 533 Lessors of nonfinancial intangible assets 533 Lessors of nonfinancial intangible assets
5411 Legal services 5121 Motion picture and video industries
56A Employment services 531 Real estate
531 Real estate 5411 Legal services 518 Data processing, hosting, and related services 5418 Advertising and related services 5418 Advertising and related services 56A Management, scientific, and technical
services 3346 Software, audio, and video media reproducing
5412 Accounting, tax preparation, bookkeeping, and payroll services
5412 Accounting, tax preparation, bookkeeping, and payroll services
5121 Motion picture and video industries 722 Food services and drinking places Consumer Industries for Typical Regional Industry 55 Management of companies and enterprises 523 Securities, commodity contracts, investments,
and related activities 52A Monetary authorities and depository credit
intermediation 42 Wholesale trade
522 Nondepository credit intermediation and related activities
722 Food services and drinking places
11-51 Wisconsin Economic Future Study
11.3.3 Top Firms1 by Driver Industry in the Southeast Region 3113 Sugar and confectionery product manufacturing
Company Name Industry Description Employment
Size County
Nestle Chocolate & Confection Chocolate and Confectionery
Manufacturing from Cacao Beans 1000+ Racine
ADM Cocoa Chocolate and Confectionery
Manufacturing from Cacao Beans 250 - 499 Waukesha
Andes Candies Inc. Confectionery Manufacturing from
Purchased Chocolate 100 - 249 Walworth
Chocolate House Inc. Chocolate and Confectionery
Manufacturing from Cacao Beans 50 - 99 Milwaukee
Beerntsen Confectionary Inc. Chocolate and Confectionery
Manufacturing from Cacao Beans 20 - 49 Manitowoc
Omanhene Cocoa Bean Co. Chocolate and Confectionery
Manufacturing from Cacao Beans 20 - 49 Milwaukee
Ritt-Beyer Inc. Confectionery Manufacturing from
Purchased Chocolate 20 - 49 Milwaukee
1 Top firms are identified by an establishment's employment by each driver industry in the Southeast Region. Those establishments of companies having 20 employees or more are listed in the tables.
11-52 Wisconsin Economic Future Study
3114 Fruit and vegetable preserving and specialty
Company Name Industry Description
Employment Size
County
Seneca Foods Corp. Fruit and Vegetable Canning 1000+ Dodge
Seneca Foods Corp. Fruit and Vegetable Canning 250 - 499 Dodge Bonduelle USA Fruit and Vegetable Canning 250 - 499 Fond Du Lac
On-Cor Frozen Foods Redi-Serve
Frozen Specialty Food Manufacturing 250 - 499 Jefferson
Ocean Spray Cranberries Inc. Fruit and Vegetable Canning 250 - 499 Kenosha
Birds Eye Foods Inc. Frozen Specialty Food
Manufacturing 250 - 499 Walworth
McCain Foods USA Frozen Specialty Food Manufacturing 250 - 499 Jefferson
Joseph Campione Inc. Frozen Specialty Food Manufacturing 100 - 249 Milwaukee
Gehl Foods Specialty Canning 100 - 249 Washington Ripon Pickle Co. Fruit and Vegetable Canning 50 - 99 Fond Du Lac Seneca Foods Corp. Fruit and Vegetable Canning 50 - 99 Fond Du Lac Del Monte Foods Fruit and Vegetable Canning 50 - 99 Green Lake J G Van Holten & Son Inc. Fruit and Vegetable Canning 50 - 99 Jefferson
L D Foods
Frozen Specialty Food Manufacturing 50 - 99 Jefferson
Faris Gourmet Popcorn & Treats All Other Miscellaneous Food
Manufacturing 20 - 49 Fond Du Lac
Del Monte Foods All Other Miscellaneous Food
Manufacturing 20 - 49 Green Lake
Wisconsin Spice Inc. Spice and Extract Manufacturing 20 - 49 Green Lake
11-56 Wisconsin Economic Future Study
3119 Other food manufacturing (continued)
True Taste Life All Other Miscellaneous Food
Manufacturing 20 - 49 Kenosha
Campbell Soup Co. All Other Miscellaneous Food
Manufacturing 20 - 49 Milwaukee
Kraft Foods All Other Miscellaneous Food
Manufacturing 20 - 49 Milwaukee
Cereal By-Products All Other Miscellaneous Food
Manufacturing 20 - 49 Ozaukee
Modern Products Inc. All Other Miscellaneous Food
Manufacturing 20 - 49 Ozaukee
Lakeside Foods Inc. Mayonnaise, Dressing, and Other
Prepared Sauce Manufacturing 20 - 49 Sheboygan
Lakeside Foods Inc. All Other Miscellaneous Food
Manufacturing 20 - 49 Sheboygan
Custom Granular Inc. All Other Miscellaneous Food
Manufacturing 20 - 49 Walworth
Kerry Ingredients All Other Miscellaneous Food
Manufacturing 20 - 49 Washington
Master Wholesale-Vending Supply All Other Miscellaneous Food
Manufacturing 20 - 49 Washington
Danisco All Other Miscellaneous Food
Manufacturing 20 - 49 Waukesha
Denali Ingredients LLC All Other Miscellaneous Food
Manufacturing 20 - 49 Waukesha
Kerry Bio Science All Other Miscellaneous Food
Manufacturing 20 - 49 Waukesha Old Dutch Snacks Other Snack Food Manufacturing 20 - 49 Waukesha
3161 Leather and hide tanning and finishing
Company Name Industry Description
Employment Size
County
Seidel Tanning Corp. Leather and Hide Tanning and
Finishing 50 - 99 Milwaukee
Thiele Tanning Co. Leather and Hide Tanning and
Finishing 20 - 49 Milwaukee
3162 Footwear manufacturing
Company Name Industry Description
Employment Size
County
Allen Edmonds Footwear Manufacturing 250 - 499 Ozaukee W C Russell Moccasin Co. Footwear Manufacturing 20 - 49 Green Lake Contract Stitching Inc. Footwear Manufacturing 20 - 49 Manitowoc
11-57 Wisconsin Economic Future Study
3222 Converted paper product manufacturing
Company Name Industry Description
Employment Size
County
Western States Envelope & Label Paper Bag and Coated and Treated
Paper Manufacturing 1000+ Waukesha
Sharp Packaging Inc. Paper Bag and Coated and Treated
Paper Manufacturing 250 - 499 Waukesha
Multi-Color Corp. Paper Bag and Coated and Treated
Snap-On Inc. Saw Blade and Handtool Manufacturing 1000+ Kenosha Snap-On Tools Saw Blade and Handtool Manufacturing 250 - 499 Milwaukee Johnson Level & Tool Manufacturing Co. Saw Blade and Handtool Manufacturing 100 - 249 Ozaukee Quest Technologies Inc. Saw Blade and Handtool Manufacturing 100 - 249 Waukesha Master Appliance Corp. Saw Blade and Handtool Manufacturing 50 - 99 Racine Retail Fixture LLC Saw Blade and Handtool Manufacturing 50 - 99 Racine Carbide Specialists Inc. Saw Blade and Handtool Manufacturing 50 - 99 Waukesha
3324 Boiler, tank, and shipping container manufacturing
Company Name Industry Description
Employment Size
County
Modine Manufacturing Co. Power Boiler and Heat Exchanger
Manufacturing 1000+ Racine Silgan Containers Corp. Metal Can Manufacturing 100 - 249 Dodge Ball Metal Beverage Packaging
Metal Can Manufacturing 100 - 249 Jefferson
IEA Inc. Power Boiler and Heat Exchanger Manufacturing 100 - 249 Kenosha
Kitzinger Cooperage Corp. Other Metal Container Manufacturing 100 - 249 Milwaukee
Thermal Transfer Products Power Boiler and Heat Exchanger
Manufacturing 100 - 249 Racine Silgan Containers Corp. Metal Can Manufacturing 100 - 249 Waukesha Mid America Steel Drum Co. LLC
Other Metal Container Manufacturing 50 - 99 Milwaukee
Proteus Packaging Corp. Other Metal Container Manufacturing 50 - 99 Milwaukee Silgan Containers Corp. Metal Can Manufacturing 50 - 99 Waukesha Silgan Containers Corp. Metal Can Manufacturing 50 - 99 Waukesha Silgan Technology Center Metal Can Manufacturing 50 - 99 Waukesha
Air Liquide America Corp. Metal Tank (Heavy Gauge)
Manufacturing 20 - 49 Racine
Fluid Handling Inc. Power Boiler and Heat Exchanger Manufacturing 20 - 49 Milwaukee
Transformer Manufacturing 1000+ Racine Kohler Co. Motor and Generator Manufacturing 1000+ Sheboygan Generac Power Systems Inc. Motor and Generator Manufacturing 1000+ Walworth Generac Holdings Inc. Motor and Generator Manufacturing 1000+ Waukesha
Waukesha Electric Systems Inc. Power, Distribution, and Specialty
Transformer Manufacturing 1000+ Waukesha
Weasler Engineering Inc. Power, Distribution, and Specialty
Transformer Manufacturing 250 - 499 Washington Generac Power Systems Inc. Motor and Generator Manufacturing 250 - 499 Waukesha
Hamlin Inc. Switchgear and Switchboard Apparatus Manufacturing 100 - 249 Jefferson
Professional Power Products Motor and Generator Manufacturing 100 - 249 Walworth
Acme Electric Corp. Power, Distribution, and Specialty
Transformer Manufacturing 100 - 249 Waukesha Holt Electric Supply Co. Motor and Generator Manufacturing 100 - 249 Waukesha
ITW Ark-Les Corp Relay and Industrial Control
Manufacturing 100 - 249 Waukesha A O Smith Corp. Motor and Generator Manufacturing 50 - 99 Milwaukee Elwood Corp. Motor and Generator Manufacturing 50 - 99 Racine Multi Products Co. Motor and Generator Manufacturing 50 - 99 Racine
Hydro Electronics Devices Inc. Relay and Industrial Control
Manufacturing 50 - 99 Washington Industrial Controls Distributors LLC
Switchgear and Switchboard Apparatus Manufacturing 20 - 49 Milwaukee
Marshall W Nelson & Associates Inc.
Switchgear and Switchboard Apparatus Manufacturing 20 - 49 Milwaukee
W E Power LLC Motor and Generator Manufacturing 20 - 49 Milwaukee
L S Research Inc. Power, Distribution, and Specialty
Transformer Manufacturing 20 - 49 Ozaukee
Norco Manufacturing Power, Distribution, and Specialty
Transformer Manufacturing 20 - 49 Racine
Reliance Controls Corp. Switchgear and Switchboard Apparatus
Manufacturing 20 - 49 Racine
CIM Products Inc. Relay and Industrial Control
Manufacturing 20 - 49 Waukesha IFM Efector Inc. Motor and Generator Manufacturing 20 - 49 Waukesha
McIver Engineering & Controls Relay and Industrial Control
Brady Corp. All Other Miscellaneous Manufacturing 1000+ Milwaukee Shur-Line Broom, Brush, and Mop Manufacturing 1000+ Milwaukee Johnson Outdoors MRN Electronics
Sporting and Athletic Goods Manufacturing 1000+ Racine
Karl's Signs & Banners Sign Manufacturing 250 - 499 Milwaukee Manufacturing Operations All Other Miscellaneous Manufacturing 250 - 499 Milwaukee Oilgear Co. All Other Miscellaneous Manufacturing 250 - 499 Milwaukee Chr Hansen Inc. All Other Miscellaneous Manufacturing 250 - 499 Waukesha ITW Shakeproof Industrial Products
Fastener, Button, Needle, and Pin Manufacturing 100 - 249 Dodge
American Girl Inc. Doll, Toy, and Game Manufacturing 100 - 249 Kenosha
Foster Needle Co. Inc. Fastener, Button, Needle, and Pin Manufacturing 100 - 249 Manitowoc
AAA Discount Signs Sign Manufacturing 100 - 249 Milwaukee Adaptive Micro Systems LLC Sign Manufacturing 100 - 249 Milwaukee Baird Co. Inc. Sign Manufacturing 100 - 249 Milwaukee Everbrite LLC Sign Manufacturing 100 - 249 Milwaukee Magnum Fitness Systems All Other Miscellaneous Manufacturing 100 - 249 Milwaukee Poblocki Sign Co. All Other Miscellaneous Manufacturing 100 - 249 Milwaukee United Visual Products Sign Manufacturing 100 - 249 Milwaukee William K Walthers Inc. Doll, Toy, and Game Manufacturing 100 - 249 Milwaukee Lakeside Curative Services All Other Miscellaneous Manufacturing 100 - 249 Racine Ruud Lighting Inc. All Other Miscellaneous Manufacturing 100 - 249 Racine Cost Inc. All Other Miscellaneous Manufacturing 100 - 249 Washington 4Front All Other Miscellaneous Manufacturing 100 - 249 Waukesha Empire Level Manufacturing Co. All Other Miscellaneous Manufacturing 100 - 249 Waukesha Fiberesin Industries Inc. All Other Miscellaneous Manufacturing 100 - 249 Waukesha Metso Minerals Industries Inc. All Other Miscellaneous Manufacturing 100 - 249 Waukesha Raabe Co. LLC All Other Miscellaneous Manufacturing 100 - 249 Waukesha
Pivot Point Inc. Fastener, Button, Needle, and Pin Manufacturing 50 - 99 Dodge
BCI Burke Co. All Other Miscellaneous Manufacturing 50 - 99 Fond Du Lac
Tecre Co. Fastener, Button, Needle, and Pin Manufacturing 50 - 99 Fond Du Lac
Affirmative Industry All Other Miscellaneous Manufacturing 50 - 99 Jefferson Digi-Star LLC All Other Miscellaneous Manufacturing 50 - 99 Jefferson Beauti-Vue Products Corp. All Other Miscellaneous Manufacturing 50 - 99 Kenosha Oemmc Co. All Other Miscellaneous Manufacturing 50 - 99 Kenosha Enquatics Inc. All Other Miscellaneous Manufacturing 50 - 99 Manitowoc Accents Unlimited Inc. All Other Miscellaneous Manufacturing 50 - 99 Milwaukee
3399 Other miscellaneous manufacturing (continued)
Company Name Industry Description
Employment Size
County
Deltrol Controls All Other Miscellaneous Manufacturing 50 - 99 Milwaukee E R Manufacturing Co. All Other Miscellaneous Manufacturing 50 - 99 Milwaukee Everbrite LLC Sign Manufacturing 50 - 99 Milwaukee Global Power All Other Miscellaneous Manufacturing 50 - 99 Milwaukee Industries For the Blind Broom, Brush, and Mop Manufacturing 50 - 99 Milwaukee Molecular Biology Products All Other Miscellaneous Manufacturing 50 - 99 Milwaukee Multi-Pack Milwaukee All Other Miscellaneous Manufacturing 50 - 99 Milwaukee Olympus Flag Banner Sign Manufacturing 50 - 99 Milwaukee Sedia Inc. All Other Miscellaneous Manufacturing 50 - 99 Milwaukee Holiday Trims Inc. All Other Miscellaneous Manufacturing 50 - 99 Ozaukee BEI Electronics All Other Miscellaneous Manufacturing 50 - 99 Racine Careers Industries Inc. All Other Miscellaneous Manufacturing 50 - 99 Racine
Johnson Outdoors Inc. Sporting and Athletic Goods
Manufacturing 50 - 99 Racine Mid Central Corp. All Other Miscellaneous Manufacturing 50 - 99 Racine Getzen Musical Instruments Inc. Musical Instrument Manufacturing 50 - 99 Walworth Royal Basket Trucks Inc. All Other Miscellaneous Manufacturing 50 - 99 Walworth Saddleworth Silversmiths All Other Miscellaneous Manufacturing 50 - 99 Walworth
Milcut Inc. Gasket, Packing, and Sealing Device
Manufacturing 50 - 99 Waukesha Product Miniature Co. Inc. Sign Manufacturing 50 - 99 Waukesha Schaefer Brush Manufacturing Co. Broom, Brush, and Mop Manufacturing 50 - 99 Waukesha D & G Manufacturing Inc. All Other Miscellaneous Manufacturing 20 - 49 Fond Du Lac
Tru-Fire Corp. Sporting and Athletic Goods Manufacturing 20 - 49 Fond Du Lac
Innovative Picking Tech Inc. All Other Miscellaneous Manufacturing 20 - 49 Jefferson VyMaC Corp. All Other Miscellaneous Manufacturing 20 - 49 Jefferson
Doheny Enterprises Inc. Sporting and Athletic Goods Manufacturing 20 - 49 Kenosha
Face Fund Raising Doll, Toy, and Game Manufacturing 20 - 49 Kenosha Advance Boiler & Tank Co. LLC All Other Miscellaneous Manufacturing 20 - 49 Milwaukee
Centrifugal Casting LLC Jewelry and Silverware Manufacturing 20 - 49 Milwaukee CHIMERx All Other Miscellaneous Manufacturing 20 - 49 Milwaukee CHRYSPAC All Other Miscellaneous Manufacturing 20 - 49 Milwaukee Infinity Neon Sign Manufacturing 20 - 49 Milwaukee M & M Quality Solutions Inc. All Other Miscellaneous Manufacturing 20 - 49 Milwaukee Rite Hite All Other Miscellaneous Manufacturing 20 - 49 Milwaukee Sign Factory Inc. Sign Manufacturing 20 - 49 Milwaukee
3399 Other miscellaneous manufacturing (continued)
Company Name Industry Description
Employment Size
County
Trackside Services Inc. All Other Miscellaneous Manufacturing 20 - 49 Milwaukee CCS Inc. All Other Miscellaneous Manufacturing 20 - 49 Ozaukee Charter Manufacturing Co. Inc. All Other Miscellaneous Manufacturing 20 - 49 Ozaukee Sullivan Manufacturing Corp. All Other Miscellaneous Manufacturing 20 - 49 Ozaukee Priority Sign Inc. Sign Manufacturing 20 - 49 Sheboygan TWC of America Inc. All Other Miscellaneous Manufacturing 20 - 49 Sheboygan Everbrite LLC Sign Manufacturing 20 - 49 Walworth
Golf Gifts & Gallery Sporting and Athletic Goods
Manufacturing 20 - 49 Walworth
Monarch-McLaren LTD Gasket, Packing, and Sealing Device
Manufacturing 20 - 49 Walworth Nice Rink All Other Miscellaneous Manufacturing 20 - 49 Walworth Custom-Pak Products Inc. All Other Miscellaneous Manufacturing 20 - 49 Washington
Frabill Sporting and Athletic Goods
Manufacturing 20 - 49 Washington Advantech Manufacturing All Other Miscellaneous Manufacturing 20 - 49 Waukesha Badger Lighting & Signs Sign Manufacturing 20 - 49 Waukesha CMK Enterprises/Calmer Industries LLC All Other Miscellaneous Manufacturing 20 - 49 Waukesha
E-G Gasket & Supply Inc. Gasket, Packing, and Sealing Device
Manufacturing 20 - 49 Waukesha G & M Assembly All Other Miscellaneous Manufacturing 20 - 49 Waukesha Stay-Lite Lighting Service Inc. Sign Manufacturing 20 - 49 Waukesha
Ward Adhesives Inc. Office Supplies (except Paper)
First Transit Inc. Charter Bus Industry 250 - 499 Milwaukee Wisconsin Coach Lines Group Charter Bus Industry 250 - 499 Waukesha First Student Inc. Charter Bus Industry 100 - 249 Kenosha First Student Inc. Charter Bus Industry 100 - 249 Milwaukee First Transit Inc. Charter Bus Industry 100 - 249 Milwaukee Durham School Services Charter Bus Industry 100 - 249 Racine Coach USA Charter Bus Industry 100 - 249 Waukesha Johnson School Bus Service Inc. Charter Bus Industry 50 - 99 Fond Du Lac Brandt Buses Inc. Charter Bus Industry 50 - 99 Manitowoc Riteway Bus Service Inc. Charter Bus Industry 50 - 99 Milwaukee Johnson School Bus Service Inc. Charter Bus Industry 50 - 99 Ozaukee Riteway Bus Service Inc. Charter Bus Industry 50 - 99 Ozaukee Durham School Services Charter Bus Industry 50 - 99 Walworth Riteway Bus Service Inc. Charter Bus Industry 50 - 99 Washington First Student Inc. Charter Bus Industry 50 - 99 Waukesha First Transit Inc. Charter Bus Industry 50 - 99 Waukesha Johnson School Bus Service Charter Bus Industry 50 - 99 Waukesha Johnson School Bus Service Inc. Charter Bus Industry 20 - 49 Dodge Transportation Services-Watertown Charter Bus Industry 20 - 49 Dodge Johnson School Bus Service Inc. Charter Bus Industry 20 - 49 Fond Du Lac L B Leasing Bus Division Charter Bus Industry 20 - 49 Fond Du Lac Nichols Five Star Charter Charter Bus Industry 20 - 49 Fond Du Lac Lakeland Coach Lines Inc. Charter Bus Industry 20 - 49 Jefferson Two Rivers Buses Inc. Charter Bus Industry 20 - 49 Manitowoc Alliance Transportation Systems Charter Bus Industry 20 - 49 Milwaukee First Transit Inc. Charter Bus Industry 20 - 49 Milwaukee First Transit Inc. Charter Bus Industry 20 - 49 Racine Johnson School Bus Service Inc. Charter Bus Industry 20 - 49 Sheboygan Johnson School Bus Service Charter Bus Industry 20 - 49 Washington Dairyland Hamilton Inc. Charter Bus Industry 20 - 49 Waukesha First Transit Inc. Charter Bus Industry 20 - 49 Waukesha Mascoutin Transportation Inc. Charter Bus Industry 20 - 49 Green Lake Hank's Transportation Co. Charter Bus Industry 20 - 49 Waukesha
Table 11-3 Employment in the Southeast Region’s Driver Industries, 2000-2011 (continued) NAICS Title 2000 2003 2007 2008 2009 2010 2011 3351 Electric lighting equipment manufacturing 1,027 827 819 797 719 746 780 3352 Household Appliance manufacturing 3,921 3,079 3,188 2,940 2,647 2,742 2,827 3353 Electrical equipment manufacturing 16,195 12,081 11,042 11,181 10,115 9,536 9,972 3359 Other electrical equipment and component manufacturing 2,944 2,428 2,289 2,252 1,979 1,993 2,065 3362 Motor vehicle body and trailer manufacturing 1,387 1,151 1,150 1,160 1,111 1,091 1,077 3369 Other transportation equipment manufacturing 3,245 3,578 3,745 3,690 3,233 2,892 2,942 3371 Household and institutional furniture manufacturing 2,936 2,450 2,584 2,785 2,448 2,421 2,459 3399 Other miscellaneous manufacturing 6,653 5,661 5,237 4,962 4,229 4,130 4,230 4246 Chemical merchant wholesalers 1,761 1,930 2,095 2,094 1,962 2,014 2,357 4855 Charter bus industry 389 408 429 451 471 453 443 4889 Other support activities for transportation 191 198 235 245 269 301 307 5182 Data processing and related services 7,507 6,131 5,129 5,091 5,066 5,041 5,163
11-116 Wisconsin Economic Future Study
Table 11-4 Percentage Change for Employment in the Southeast Region’s Driver Industries, 2000-2011
NAICS Title 2000-2003 2003-2008 2008-2011 3113 Sugar and confectionery product manufacturing -6.4% -1.3% -4.1% 3114 Fruit and vegetable preserving and specialty -1.2% 3.2% 0.2% 3115 Dairy product manufacturing -6.5% -5.4% 0.4% 3116 Animal slaughtering and processing 11.2% 0.7% -9.0% 3119 Other food manufacturing -0.4% 8.0% -5.3% 3161 Leather and hide tanning and finishing -48.5% -11.9% -7.5% 3162 Footwear manufacturing -37.5% -10.4% -11.1% 3222 Converted paper product manufacturing -12.8% -18.2% -6.8% 3231 Printing and related support activities -18.2% -7.3% -12.5% 3255 Paint, coating, and adhesive manufacturing -10.2% 0.9% -1.9% 3256 Soap, cleaning compound, and toiletry manufacturing 1.1% 6.9% -5.7% 3261 Plastics product manufacturing -11.9% -2.2% -12.2% 3279 Other nonmetallic mineral products -5.7% 42.9% -10.0% 3315 Foundries -22.4% -8.0% -18.4% 3321 Forging and stamping -17.3% -0.8% -15.8% 3322 Cutlery and handtool manufacturing -23.7% -5.4% -13.7% 3324 Boiler, tank, and shipping container manufacturing -17.4% -5.0% -12.7% 3325 Hardware manufacturing -23.8% -2.3% -17.3% 3326 Spring and wire product manufacturing -16.9% 4.9% -6.9% 3327 Machine shops and threaded product manufacturing -16.9% 15.4% -6.3% 3328 Coating, engraving, and heat treating metals -12.2% 1.2% -13.1% 3329 Other fabricated metal product manufacturing -22.3% 0.0% -11.0% 3331 Agriculture, construction, mining machinery manufacturing -14.8% 4.2% -4.1% 3332 Industrial machinery manufacturing -38.2% 23.9% -10.9% 3333 Commercial and service industry machinery -9.8% -7.9% -8.7% 3334 HVAC and commercial refrigeration equipment -24.8% 20.5% -23.6% 3335 Metalworking machinery manufacturing -25.5% -5.7% -13.6% 3336 Turbine and power transmission equipment manufacturing -19.1% -7.7% -14.6% 3339 Other general purpose machinery manufacturing -33.6% -0.9% -13.7% 3351 Electric lighting equipment manufacturing -19.5% -3.6% -2.1% 3352 Household Appliance manufacturing -21.5% -4.5% -3.8% 3353 Electrical equipment manufacturing -25.4% -7.4% -10.8% 3359 Other electrical equipment and component manufacturing -17.5% -7.2% -8.3% 3362 Motor vehicle body and trailer manufacturing -17.0% 0.8% -7.2% 3369 Other transportation equipment manufacturing 10.3% 3.1% -20.3% 3371 Household and institutional furniture manufacturing -16.6% 13.7% -11.7% 3399 Other miscellaneous manufacturing -14.9% -12.3% -14.8% 4246 Chemical merchant wholesalers 9.6% 8.5% 12.6% 4855 Charter bus industry 4.9% 10.5% -1.8% 4889 Other support activities for transportation 3.7% 23.7% 25.3% 5182 Data processing and related services -18.3% -17.0% 1.4%
11-117 Wisconsin Economic Future Study
Table 11-5 Labor Location Quotients* - Southeast Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3113 Sugar and confectionery product manufacturing 1.60 1.75 1.82 3114 Fruit and vegetable preserving and specialty 1.97 2.17 2.20 3115 Dairy product manufacturing 5.07 4.97 4.97 3116 Animal slaughtering and processing 1.58 1.67 1.61 3119 Other food manufacturing 2.21 2.38 2.32 3161 Leather and hide tanning and finishing 5.85 5.99 6.17 3162 Footwear manufacturing 2.96 3.06 2.94 3222 Converted paper product manufacturing 2.44 2.29 2.43 3231 Printing and related support activities 2.77 2.97 3.28 3255 Paint, coating, and adhesive manufacturing 2.10 2.38 2.64 3256 Soap, cleaning compound, and toiletry manufacturing 3.73 4.54 4.68 3261 Plastics product manufacturing 2.11 2.31 2.31 3279 Other nonmetallic mineral products 0.77 1.11 1.21 3315 Foundries 6.73 6.88 6.71 3321 Forging and stamping 5.77 5.97 5.69 3322 Cutlery and handtool manufacturing 4.98 5.12 5.25 3324 Boiler, tank, and shipping container manufacturing 3.28 3.04 2.91 3325 Hardware manufacturing 4.08 4.40 4.39 3326 Spring and wire product manufacturing 2.60 3.00 3.25 3327 Machine shops and threaded product manufacturing 3.32 3.39 3.50 3328 Coating, engraving, and heat treating metals 2.65 2.75 2.67 3329 Other fabricated metal product manufacturing 4.73 4.78 4.81 3331 Agriculture, construction, mining machinery manufacturing 5.11 4.71 4.94 3332 Industrial machinery manufacturing 2.30 3.00 3.10 3333 Commercial and service industry machinery 1.53 1.55 1.65 3334 HVAC and commercial refrigeration equipment 1.73 2.16 1.92 3335 Metalworking machinery manufacturing 3.46 3.59 3.62 3336 Turbine and power transmission equipment manufacturing 9.22 8.21 7.46 3339 Other general purpose machinery manufacturing 3.26 3.20 3.23 3351 Electric lighting equipment manufacturing 1.34 1.50 1.77 3352 Household Appliance manufacturing 5.40 5.85 6.33 3353 Electrical equipment manufacturing 9.03 8.81 8.88 3359 Other electrical equipment and component manufacturing 1.78 1.75 1.85 3362 Motor vehicle body and trailer manufacturing 0.83 0.93 1.06 3369 Other transportation equipment manufacturing 11.10 10.73 10.02 3371 Household and institutional furniture manufacturing 0.74 1.06 1.29 3399 Other miscellaneous manufacturing 1.56 1.71 1.77 4246 Chemical merchant wholesalers 1.59 1.71 2.09 4855 Charter bus industry 1.94 2.27 2.36 4889 Other support activities for transportation 0.77 0.97 1.34 5182 Data processing and related services 1.97 2.04 2.23
* The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than one suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than one suggests an industry is not concentrated in the region.
11-118 Wisconsin Economic Future Study
Table 11-6 Gross Product in the Southeast Region's Driver Industries, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011
NAICS Title 2003 2008 2011 3359 Other electrical equipment and component manufacturing 2.94 2.31 3.08 3362 Motor vehicle body and trailer manufacturing 1.75 1.89 2.32 3369 Other transportation equipment manufacturing 16.38 15.91 15.71 3371 Household and institutional furniture manufacturing 1.06 1.86 1.82 3399 Other miscellaneous manufacturing 1.95 1.70 1.59 4246 Chemical merchant wholesalers 1.59 1.84 2.13 4855 Charter bus industry 2.38 2.48 2.27 4889 Other support activities for transportation 1.58 2.38 3.54 5182 Data processing and related services 1.62 2.04 2.09
* The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than one suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than one suggests an industry is not concentrated in the region.
Table 11-9 Productivity (Gross Product per Employee) of Driver Industries, Southeast Region, 2000-2011 (continued) NAICS Title 2000 2003 2007 2008 2009 2010 2011 3333 Commercial and service industry machinery $72,910 $71,158 $111,878 $114,421 $125,726 $140,728 $150,445 3334 HVAC and commercial refrigeration equipment $65,777 $77,526 $89,510 $95,054 $104,201 $118,985 $125,574 3335 Metalworking machinery manufacturing $88,662 $78,275 $83,738 $81,796 $85,212 $96,298 $102,469 3336 Turbine and power transmission equipment manufacturing $114,286 $111,767 $110,854 $108,358 $104,515 $115,901 $118,957 3339 Other general purpose machinery manufacturing $98,043 $98,476 $114,561 $116,548 $122,542 $132,968 $138,441 3351 Electric lighting equipment manufacturing $121,571 $170,541 $176,044 $188,204 $237,831 $300,654 $323,597 3352 Household Appliance manufacturing $115,438 $163,095 $122,944 $118,368 $136,008 $129,195 $134,928 3353 Electrical equipment manufacturing $127,590 $158,328 $147,370 $154,309 $189,110 $225,035 $235,778 3359 Other electrical equipment and component manufacturing $166,729 $165,881 $138,542 $140,586 $192,883 $230,382 $243,535 3362 Motor vehicle body and trailer manufacturing $213,769 $174,136 $123,105 $142,948 $155,012 $176,254 $193,519 3369 Other transportation equipment manufacturing $185,793 $180,677 $131,743 $127,007 $146,262 $159,155 $159,553 3371 Household and institutional furniture manufacturing $67,682 $85,995 $89,402 $93,019 $80,509 $89,213 $94,623 3399 Other miscellaneous manufacturing $91,402 $104,161 $102,246 $100,860 $92,012 $99,443 $104,485 4246 Chemical merchant wholesalers $147,925 $146,416 $150,699 $148,541 $155,084 $154,173 $148,638 4855 Charter bus industry $128,848 $111,110 $98,107 $85,006 $66,763 $74,670 $79,281 4889 Other support activities for transportation $117,318 $133,691 $111,111 $150,375 $162,651 $160,271 $162,128 5182 Data processing and related services $30,699 $102,108 $135,885 $137,006 $145,845 $146,195 $143,377
12-1 Wisconsin Economic Future Study
12 West Central I Region
12.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis for the West Central I Region, as well as detailed information related to each of the regional driver industries identified. The West Central I Region is defined to include the counties of Barron, Buffalo, Chippewa, Dunn, Eau Claire, Pepin, Pierce, Polk, and St. Croix. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the West Central I Region are provided in a tabular form. Tables in the final section in this chapter (12.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries.
12.2 Summary of Regional Driver Industries & Industry Clusters The West Central I Region of Wisconsin has 29 regional driver industries at the 4-digit level NAICS (17 drivers at 3-digit level NAICS). The regional driver industries of the West Central I Region are shown on the next page.
12-2 Wisconsin Economic Future Study
NAICS Industry description 311 Food manufacturing (partial)
3111 Animal food manufacturing 3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing
3212 Plywood and engineered wood product mfg. 3219 Other wood product manufacturing
322 Paper manufacturing (complete) 3221 Pulp, paper, and paperboard mills 3222 Converted paper product manufacturing
3261 Plastics product manufacturing 327 Nonmetallic mineral product manufacturing (partial)
3272 Glass and glass product manufacturing 3273 Cement and concrete product manufacturing
3315 Foundries 332 Fabricated metal product manufacturing (partial)
3322 Cutlery and handtool manufacturing 3323 Architectural and structural metals mfg. 3324 Boiler, tank, and shipping container mfg. 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
333 Machinery manufacturing (partial) 3334 HVAC and commercial refrigeration equipment 3335 Metalworking machinery manufacturing 3339 Other general purpose machinery manufacturing
3341 Computer and peripheral equipment mfg. 3353 Electrical equipment manufacturing 4841 General freight trucking 5221 Depository credit intermediation 5241 Insurance carriers 5511 Management of companies and enterprises 6114 Business, computer, and management training 6221 General medical and surgical hospitals
12-3 Wisconsin Economic Future Study
12.2.1 How Are the West Central I Region’s Driver Industries Doing?
Figure 12-1 Overview of the West Central I Region Drivers
Interpretation: The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. In the West Central I region, nine out of 16 driver industries indentified by analysis in 2004 remain among regional drivers. The overall structure of the regional economy, though, has changed. Two prominent historical driver industries — the Industrial Machinery industry group and Soap, Cleaning Compounds, and Toilet Preparation — were not identified as driver industries by the current analysis. Three other prominent historical drivers — the Converted Paper Product Industry, Dairy Product Manufacturing, and Fruit and Vegetable Preserving and Specialty Food Manufacturing — remain among the regional drivers, but at a smaller size and lower regional concentration compared to the United States. In addition, a number of new manufacturing industries and large service industries showed significant contributions to the regional economy. Other highlights in the West Central I Region include:
The Food Manufacturing cluster is strengthened by the Animal Slaughtering and Processing and the Animal Food Manufacturing industry groups, as well as by the historically strong Fruit and Dairy Product industries. Animal Slaughtering is the second-largest manufacturing driver in the region.
Another historical driver, Footwear Manufacturing, lost half its size ($8 million in 2011 compared to $16 million in 2004), but remains highly concentrated in the region compared to the United States
The Wood Product and Paper Manufacturing clusters also retain some historically strong industries and added new manufacturing industries to these clusters. However, while both industry groups in the Wood Product cluster showed signs of decline, the two industry groups of the Paper cluster exhibited high growth (30% to 40% 2008 through 2011 output change) and show a regional concentration close to LQ=4.
The Fabricated Metal Product Manufacturing cluster (NAICS 332) retained two historical regional drivers (NAICS 3322 and 3324) and added three more (NAICS 3323, 3328, and 3329) that are significant in size and regional concentration (LQ close to 4). All five industry groups of this cluster were growing output from 2008 through 2011.
The Machinery Manufacturing cluster has three new 4-digit NAICS industry groups, although it lost two historical drivers. Two of the three new industry groups, HVAC and Commercial Refrigeration Equipment Manufacturing and Metalworking Machinery Manufacturing, have LQ between 4 and 5 and were growing output by 34% and 50%, respectively, from 2008 through 2011.
12-5 Wisconsin Economic Future Study
Electrical Equipment Manufacturing — a single-industry cluster — continues with positive output growth and is somewhat larger than identified by 2004 analysis, but this 3-digit NAICS subsector has lost some of its regional concentration.
The regional economy of the West Central I region has strong representation of non-manufacturing industries. Management of Companies, General Medical Hospitals, and the Depository Credit Intermediation 4-digit NAICS industry groups are the largest drivers as measured by 2011 gross regional product. All three industry groups had a regional concentration above 1.2 and output growth between 5% and 10% from 2008 through 2011. The Insurance Carriers industry group, with similar regional representation, has output growth above 50% and is the fourth largest driver in the region. Two other service industry groups — the General Freight Trucking industry and Business, Computer and Management Training — are small, have moderately high regional concentration, but have negative growth from 2008 through 2011.
12.2.2 Driver and Industry Cluster Relationships in the West Central I Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 12-1 and 12-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 12-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to impact the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly impact the competitiveness of those driver industries. Table 12-2 is similar to Table 12-1 in that it shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 12-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
12-6 Wisconsin Economic Future Study
Table 12-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
42 Wholesale trade 24 16 484* Truck transportation X (4841) 23 14 55*** Management of companies and enterprises X (5511) 22 8 2211 Electric power generation, transmission, and
distribution 20 3
52A Monetary authorities and depository credit intermediation
17 1
517 Telecommunications 11 5 3312 Steel product manufacturing from purchased steel 8 2 493 Warehousing and storage 6 3 522 Nondepository credit intermediation and related
activities 6 2
531 Real estate 6 1 56A Employment services 5 2 112 Dairy cattle and milk production 4 1 533 Lessors of nonfinancial intangible assets 3 3 3219 Wood windows and doors and millwork X 3 3 113 Logging 3 3 482 Rail transportation 3 4 5411 Legal services 3 1 3211 Sawmills and wood preservation 3 1 5241 Insurance carriers X 3 2 5412 Accounting, tax preparation, bookkeeping, and
payroll services 2 3
5415 Custom computer programming services 2 4 3324 Metal can, box, and other metal container (light
gauge) manufacturing X 2 4
5242 Insurance agencies, brokerages, and related activities
2 4
3115 Dry, condensed, and evaporated dairy product manufacturing
X 2 6
1119 All other crop farming 2 3116 Poultry processing X 2
** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers."
12-7 Wisconsin Economic Future Study
Table 12-2 National Supplier Industries Common to Regional Driver Industries
NAICS Title Count of Driver National Suppliers
3323 Plate work and fabricated structural product manufacturing 11 55 Management of companies and enterprises 11
42 Wholesale trade 10 484 Truck transportation 9 1119 All other crop farming 5 3116 Animal (except poultry) slaughtering, rendering, and processing 5 531 Real estate 5 112 Dairy cattle and milk production 4 523 Securities, commodity contracts, investments, and related
activities 3
3222 Paperboard container manufacturing 3 3341 Computer storage device manufacturing 3 3115 Cheese manufacturing 3 3211 Sawmills and wood preservation 3 5241 Insurance carriers 3 56A Employment services 3 517 Telecommunications 3 1113 Fruit farming 2 2212 Natural gas distribution 2 3114 Fruit and vegetable canning, pickling, and drying 2 3212 Reconstituted wood product manufacturing 2 3273 Cement manufacturing 2 5417 Scientific research and development services 2 5614 Business support services 2 3324 Metal can, box, and other metal container (light gauge)
manufacturing 2
5242 Insurance agencies, brokerages, and related activities 2 113 Logging 482 Rail transportation 5411 Legal services 493 Warehousing and storage 522 Nondepository credit intermediation and related activities 52A Monetary authorities and depository credit intermediation 2211 Electric power generation, transmission, and distribution
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12.3 Detailed Descriptions of the Regional Driver Industries
12.3.1 Driver Industry Definitions 311 Food Manufacturing (partial) Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products.
3111 Animal food manufacturing 3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing
3162 Footwear Manufacturing This industry gorup comprises companies that manufacture footwear. 321 Wood Product Manufacturing (partial) Industries in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. The production processes of the Wood Product Manufacturing subsector include the sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industries mainly based on the specific products manufactured.
3212 Plywood and engineered wood product manufacturing 3219 Other wood product manufacturing
322 Paper Manufacturing (Complete) Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and includes coating and laminating activities. The Paper Manufacturing subsector is subdivided into two industry groups, the first for the manufacturing of pulp and paper and the second for the manufacturing of converted paper products. Paper making is treated as the core activity of the subsector. Therefore, any establishment that makes
12-9 Wisconsin Economic Future Study
paper (including paperboard), either alone or in combination with pulp manufacturing or paper converting, is classified as a paper or paperboard mill. Establishments that make pulp without making paper are classified as pulp mills. Pulp mills, paper mills, and paperboard mills comprise the first industry group. Establishments that make products from purchased paper and other materials make up the second industry group, Converted Paper Product Manufacturing. This general activity is then subdivided based, for the most part, on process distinctions. Paperboard container manufacturing uses corrugating, cutting, and shaping machinery to form paperboard into containers. Paper-bag and coated- and treated-paper manufacturing establishments cut and coat paper and foil. Stationery product manufacturing establishments make a variety of paper products used for writing, filing, and similar applications. Other converted paper product manufacturing includes, in particular, the conversion of sanitary paper stock into such things as tissue paper and disposable diapers. An important process used in the Paper Bag and Coated and Treated Paper Manufacturing industry is lamination, often combined with coating. Lamination and coating makes a composite material with improved properties of strength, impermeability, and so on. The laminated materials may be paper, metal foil, or plastics film. While paper is often one of the components, it is not always. Lamination of plastics film is classified in the NAICS Subsector 326, Plastics and Rubber Products Manufacturing, because establishments that do this often first make the film. The same situation holds with respect to bags. The manufacturing of bags from plastics only, whether laminated or not, is classified in Subsector 326, Plastics and Rubber Products Manufacturing, but all other bag manufacturing is classified in this subsector. Excluded from this subsector are photosensitive papers. These papers are chemically treated and are classified in Industry 32599, All Other Chemical Product and Preparation Manufacturing.
3221 Pulp, paper, and paperboard mills 3222 Converted paper product manufacturing
3261 Plastics Product Manufacturing This industry group comprises establishments primarily engaged in processing new or spent (i.e., recycled) plastics resins into intermediate or final products, using such processes as compression molding; extrusion molding; injection molding; blow molding; and casting. Within most of these industries, the production process is such that a wide variety of products can be made. 327 Nonmetallic Mineral Product Manufacturing (partial) The Nonmetallic Mineral Product Manufacturing subsector transforms mined or quarried nonmetallic minerals, such as sand, gravel, stone, clay, and refractory materials, into products for intermediate or final consumption. Processes used include grinding, mixing, cutting, shaping, and honing. Heat often is used in the process and chemicals are frequently mixed to change the composition, purity, and chemical properties for the intended product. For example, glass is produced by heating silica sand to the melting point (sometimes combined with cullet or recycled glass) and then drawn, floated, or blow molded to the desired shape or thickness. Refractory materials are heated and then formed into bricks or other shapes for use in industrial applications. The Nonmetallic Mineral Product Manufacturing subsector includes establishments that manufacture products, such as bricks, refractories, ceramic products, and glass and glass products, such as plate glass
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and containers. Also included are cement and concrete products, lime, gypsum and other nonmetallic mineral products including abrasive products, ceramic plumbing fixtures, statuary, cut stone products, and mineral wool. The products are used in a wide range of activities from construction and heavy and light manufacturing to articles for personal use. Mining, beneficiating, and manufacturing activities often occur in a single location. Separate receipts will be collected for these activities whenever possible. When receipts cannot be broken out between mining and manufacturing, establishments that mine or quarry nonmetallic minerals, beneficiate the nonmetallic minerals and further process the nonmetallic minerals into a more finished manufactured product are classified based on the primary activity of the establishment. A mine that manufactures a small amount of finished products will be classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. A mining establishment whose primary output is a more finished manufactured product will be classified in the Manufacturing Sector. Excluded from the Nonmetallic Mineral Product Manufacturing subsector are establishments that primarily beneficiate mined nonmetallic minerals. Beneficiation is the process whereby the extracted material is reduced to particles that can be separated into mineral and waste, the former suitable for further processing or direct use. Beneficiation establishments are included in Sector 21, Mining, Quarrying, and Oil and Gas Extraction.
3272 Glass and glass product manufacturing 3373 Cement and concrete product manufacturing
3315 Foundries This industry group comprises establishments primarily engaged in pouring molten metal into molds or dies to form castings. Establishments making castings and further manufacturing, such as machining or assembling, a specific manufactured product are classified in the industry of the finished product. Foundries may perform operations, such as cleaning and deburring, on the castings they manufacture. More involved processes, such as tapping, threading, milling, or machining to tight tolerances, that transform castings into more finished products are classified elsewhere in the Manufacturing Sector based on the product being made. 332 Fabricated Metal Product Manufacturing (Partial) Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining (used to shape individual pieces of metal), and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
3322 Cutlery and handtool manufacturing 3323 Architectural and structural metals manufacturing 3324 Boiler, tank, and shipping container manufacturing 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
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333 Machinery Manufacturing (partial) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining, which are used to shape individual pieces of metal. Processes, such as welding and assembling, are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3334 HVAC and commercial refrigeration equipment 3335 Metalworking machinery manufacturing 3339 Other general purpose machinery manufacturing
3341 Computer and Peripheral Equipment Manufacturing This industry group comprises establishments primarily engaged in manufacturing and/or assembling electronic computers, such as mainframes, personal computers, workstations, laptops, and computer servers; and computer peripheral equipment, such as storage devices, printers, monitors, input/output devices and terminals. Computers can be analog, digital, or hybrid. Digital computers, the most common type, are devices that do all of the following: (1) store the processing program or programs and the data immediately necessary for the execution of the program; (2) can be freely programmed in accordance with the requirements of the user; (3) perform arithmetical computations specified by the user; and (4) execute, without human intervention, a processing program that requires the computer to modify its execution by logical decision during the processing run. Analog computers are capable of simulating mathematical models and comprise at least analog, control, and programming elements. 3353 Electrical Equipment Manufacturing This industry group comprises establishments primarily engaged in manufacturing power, distribution, and specialty transformers; electric motors, generators, and motor generator sets; switchgear and switchboard apparatus; relays; and industrial controls. 4841 General Freight Trucking This industry group comprises establishments primarily engaged in providing general freight trucking. General freight establishments handle a wide variety of commodities, generally palletized, and transported in a container or van trailer. The establishments of this industry group provide a combination of the following network activities: local pickup, local sorting and terminal operations, line-haul, destination sorting and terminal operations, and local delivery. 5221 Depository Credit Intermediation This industry group comprises establishments primarily engaged in accepting deposits (or share deposits) and in lending funds from these deposits. Within this group, industries are defined on the basis of differences in the types of deposit liabilities assumed and in the nature of the credit extended. 5241 Insurance Carriers This industry group comprises establishments primarily engaged in underwriting (assuming the risk, assigning premiums, and so forth) annuities and insurance policies and investing premiums to build up a portfolio of financial assets to be used against future claims. Direct insurance carriers are establishments that are primarily engaged in initially underwriting and assuming the risk of annuities and insurance
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policies. Reinsurance carriers are establishments that are primarily engaged in assuming all or part of the risk associated with an existing insurance policy (or set of policies) originally underwritten by another insurance carrier. Industries are defined in terms of the type of risk being insured against, such as death, loss of employment because of age or disability, and/or property damage. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. 5511 Management of Companies and Enterprises This industry group comprises (1) establishments primarily engaged in holding the securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest or influencing the management decisions or (2) establishments (except government establishments) that administer, oversee, and manage other establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision-making role of the company or enterprise. Establishments that administer, oversee, and manage may hold the securities of the company or enterprise. 6114 Business Schools and Computer and Management Training 6221 General Medical and Surgical Hospitals This industry group comprises establishments known and licensed as general medical and surgical hospitals primarily engaged in providing diagnostic and medical treatment (both surgical and nonsurgical) to inpatients with any of a wide variety of medical conditions. These establishments maintain inpatient beds and provide patients with food services that meet their nutritional requirements. These hospitals have an organized staff of physicians and other medical staff to provide patient care services. These establishments usually provide other services, such as outpatient services, anatomical pathology services, diagnostic X-ray services, clinical laboratory services, operating room services for a variety of procedures, and pharmacy services.
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12.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is ‘regionalized’ to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 12-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
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3111 Animal food manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 3111 Other animal food manufacturing 3112 Soybean and other oilseed processing 42 Wholesale trade 1111 Grain farming 484 Truck transportation 3111 Other animal food manufacturing 482 Rail transportation 42 Wholesale trade 55 Management of companies and
rendering, and processing 2211 Electric power generation, transmission,
and distribution 3112 Flour milling and malt manufacturing
3324 Metal can, box, and other metal container (light gauge) manufacturing
482 Rail transportation 484 Truck transportation 55 Management of companies and
enterprises 3112 Wet corn milling
Consumer Industries for Typical Regional Industry 112 Dairy cattle and milk production 3111 Other animal food manufacturing 112 Poultry and egg production 112 Cattle ranching and farming
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3114 Fruit and vegetable preserving and specialty Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 42 Wholesale trade 55 Management of companies and enterprises 3324 Metal can, box, and other metal
container (light gauge) manufacturing 1112 Vegetable and melon farming 55 Management of companies and
enterprises 484 Truck transportation 3114 Fruit and vegetable canning, pickling,
and drying 3116 Poultry processing 3222 Paperboard container manufacturing 3324 Metal can, box, and other metal container (light
gauge) manufacturing 1112 Vegetable and melon farming
3114 Fruit and vegetable canning, pickling, and drying
3119 Flavoring syrup and concentrate manufacturing
2211 Electric power generation, transmission, and distribution
3116 Animal (except poultry) slaughtering, rendering, and processing
1113 Fruit farming 3114 Frozen food manufacturing 1113 Fruit farming 484 Truck transportation 1111 Grain farming 3116 Poultry processing
Consumer Industries for Typical Regional Industry 3114 Fruit and vegetable canning, pickling, and drying 722 Food services and drinking places 3121 Soft drink and ice manufacturing 3119 Seasoning and dressing manufacturing 622 Hospitals 3114 Frozen food manufacturing
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3115 Dairy product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Dairy cattle and milk production 112 Dairy cattle and milk production 3115 Dry, condensed, and evaporated dairy product
3115 Dry, condensed, and evaporated dairy product manufacturing
722 Food services and drinking places
3113 Chocolate and confectionery manufacturing from cacao beans
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3116 Animal slaughtering and processing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Cattle ranching and farming 112 Cattle ranching and farming 3116 Poultry processing 3116 Animal (except poultry) slaughtering,
rendering, and processing 55 Management of companies and enterprises 112 Poultry and egg production 484 Truck transportation 112 Animal production, except cattle and
poultry and eggs 112 Animal production, except cattle and poultry
and eggs 3116 Poultry processing
112 Poultry and egg production 55 Management of companies and enterprises
42 Wholesale trade 484 Truck transportation 2211 Electric power generation, transmission, and
distribution 42 Wholesale trade
Consumer Industries for Typical Regional Industry
3116 Poultry processing
722 Food services and drinking places
3116 Animal (except poultry) slaughtering, rendering, and processing
3114 Fruit and vegetable canning, pickling, and drying
622 Hospitals
3114 Frozen food manufacturing
623 Nursing and residential care facilities
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3162 Footwear Manufacturing1 Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3116 Animal (except poultry) slaughtering, rendering,
and processing 42 Wholesale trade
42 Wholesale trade 55 Management of companies and enterprises
484 Truck transportation 3261 Plastics packaging materials and unlaminated film and sheet manufacturing
2211 Electric power generation, transmission, and distribution
3261 Other plastics product manufacturing
5413 Architectural, engineering, and related services 3251 Petrochemical manufacturing
52A Monetary authorities and depository credit intermediation
3222 Paperboard container manufacturing
533 Lessors of nonfinancial intangible assets 3133 Fabric coating mills 5614 Business support services 3252 Plastics material and resin manufacturing
56A Employment services
Consumer Industries for Typical Regional Industry
3363 Motor vehicle parts manufacturing
3162 Footwear manufacturing
3161 Leather and hide tanning and finishing
3231 Printing
3159 Apparel accessories and other apparel manufacturing
3169 Other leather and allied product manufacturing
3149 All other textile product mills
8114 Personal and household goods repair and maintenance
1 data describe statewide supplier and consumer industries
12-19 Wisconsin Economic Future Study
3212 Veneer, plywood, and engineered wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 484 Truck transportation 3211 Sawmills and wood preservation 113 Logging 42 Wholesale trade 3211 Sawmills and wood preservation 484 Truck transportation 3212 Reconstituted wood product
manufacturing 3219 Wood windows and doors and millwork 443 Retail - Electronics and appliances 2211 Electric power generation, transmission, and
distribution 3241 Petroleum refineries
55 Management of companies and enterprises 3212 Veneer and plywood manufacturing 3212 Veneer and plywood manufacturing 3255 Adhesive manufacturing 1119 All other crop farming 5191 Internet publishing and broadcasting 3251 Petrochemical manufacturing 3325 Hardware manufacturing
Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential structures 3219 Wood windows and doors and millwork 23 Construction of other new residential structures 23 Construction of new nonresidential commercial and
health care structures 3371 Wood television, radio, and sewing machine cabinet
manufacturing1 3212 Veneer and plywood manufacturing 23 Construction of new residential permanent site
single- and multi-family structures 3219 Prefabricated wood building manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair
12-20 Wisconsin Economic Future Study
3219 Other wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
3211 Sawmills and wood preservation 3211 Sawmills and wood preservation 42 Wholesale trade 42 Wholesale trade 3219 Wood windows and doors and millwork 3219 Wood windows and doors and millwork 484 Truck transportation 484 Truck transportation 55 Management of companies and enterprises 55 Management of companies and
enterprises 113 Logging
Consumer Industries for Typical Regional Industry
3219 Wood windows and doors and millwork
23 Construction of other new nonresidential structures
3219 Prefabricated wood building manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new residential structures
23 Maintenance and repair construction of nonresidential maintenance and repair
42 Wholesale trade
3211 Sawmills and wood preservation
23 Construction of new residential permanent site single- and multi-family structures
12-21 Wisconsin Economic Future Study
3221 Pulp, paper, and paperboard mills Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 2211 Electric power generation, transmission, and
distribution 42 Wholesale trade
113 Logging 113 Logging 42 Wholesale trade 2212 Natural gas distribution 484 Truck transportation 2211 Electric power generation, transmission,
and distribution 55 Management of companies and enterprises 55 Management of companies and
enterprises 23 Maintenance and repair construction of
nonresidential maintenance and repair 3211 Sawmills and wood preservation
3211 Sawmills and wood preservation 3112 Wet corn milling n.a. Other state and local government enterprises 484 Truck transportation 2212 Natural gas distribution 3241 Petroleum refineries 482 Rail transportation 482 Rail transportation
Consumer Industries for Typical Regional Industry 3222 Sanitary paper product manufacturing 3222 Paperboard container manufacturing 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 3231 Printing
3222 Converted paper product manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3221 Paper mills 484 Truck transportation 3221 Paperboard Mills 55 Management of companies and enterprises 42 Wholesale trade 2211 Electric power generation, transmission, and
distribution 3222 Sanitary paper product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry 3231 Printing 3115 Dry, condensed, and evaporated dairy product
manufacturing 3222 Sanitary paper product manufacturing 3222 Coated and laminated paper, packaging paper
and plastics film manufacturing 3115 Cheese manufacturing 3116 Poultry processing
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3261 Plastics product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 5191 Internet publishing and broadcasting 55 Management of companies and enterprises 3311 Iron and steel mills and ferroalloy
manufacturing 2211 Electric power generation, transmission, and
distribution 8111 Car washes
52A Monetary authorities and depository credit intermediation
2122 Iron ore mining
484 Truck transportation 562 Waste management and remediation services 23 Maintenance and repair construction of
nonresidential maintenance and repair
n.a. Other state and local government enterprises 1119 All other crop farming 517 Telecommunications 722 Food services and drinking places 493 Warehousing and storage
Consumer Industries for Typical Regional Industry
3261 Other plastics product manufacturing
3115 Dry, condensed, and evaporated dairy product manufacturing
3115 Cheese manufacturing
3116 Poultry processing
622 Hospitals
3369 All other transportation equipment manufacturing
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
12-23 Wisconsin Economic Future Study
3272 Glass and glass product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 2211 Electric power generation, transmission, and
distribution 3261 Laminated plastics plate, sheet (except
packaging), and shape manufacturing 55 Management of companies and enterprises 3323 Plate work and fabricated structural
product manufacturing 484 Truck transportation 493 Warehousing and storage 52A Monetary authorities and depository credit
intermediation 5614 Business support services
3272 Glass product manufacturing made of purchased glass
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
448 Retail - Clothing and clothing accessories
3219 Wood container and pallet manufacturing 3251 Alkalies and chlorine manufacturing 3272 Flat glass manufacturing 3312 Steel product manufacturing from
purchased steel 3113 Chocolate and confectionery
manufacturing from cacao beans 3344 Other electronic component
manufacturing 3113 Nonchocolate confectionery
manufacturing
Consumer Industries for Typical Regional Industry
3272 Glass product manufacturing made of purchased glass
3344 Bare printed circuit board manufacturing
3359 Communication and energy wire and cable manufacturing
23 Construction of new nonresidential commercial and health care structures
3261 Other plastics product manufacturing
3323 Ornamental and architectural metal products manufacturing
3219 Wood windows and doors and millwork
622 Hospitals
12-24 Wisconsin Economic Future Study
3273 Cement and concrete product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 55 Management of companies and enterprises 3273 Cement manufacturing
42 Wholesale trade 484 Truck transportation
484 Truck transportation 2123 Sand, gravel, clay, and ceramic and refractory minerals mining and quarrying
3273 Ready-mix concrete manufacturing 2123 Stone mining and quarrying 52A Monetary authorities and depository credit
intermediation 55 Management of companies and
enterprises 23 Maintenance and repair construction of
nonresidential maintenance and repair 42 Wholesale trade
2211 Electric power generation, transmission, and distribution
517 Telecommunications 522 Nondepository credit intermediation and related
activities
Consumer Industries for Typical Regional Industry
23 Construction of other new nonresidential structures
23 Construction of other new residential structures
23 Construction of new nonresidential commercial and health care structures
23 Construction of new residential permanent site single- and multi-family structures
23 Maintenance and repair construction of nonresidential maintenance and repair
722 Food services and drinking places
23 Construction of new nonresidential manufacturing structures
3273 Other concrete product manufacturing
3261 Other plastics product manufacturing
12-25 Wisconsin Economic Future Study
3315 Foundries Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 2211 Electric power generation, transmission, and
distribution 2122 Iron ore mining
42 Wholesale trade 3323 Plate work and fabricated structural product manufacturing
55 Management of companies and enterprises 5614 Business support services 23 Maintenance and repair construction of
nonresidential maintenance and repair 3313 Aluminum product manufacturing from
purchased aluminum 52A Monetary authorities and depository credit
intermediation 3273 Concrete pipe, brick, and block
manufacturing 484 Truck transportation
Consumer Industries for Typical Regional Industry 3363 Motor vehicle parts manufacturing 3339 Power-driven handtool manufacturing 3329 Valve and fittings other than plumbing 3339 Pump and pumping equipment manufacturing 3327 Machine shops 3369 All other transportation equipment manufacturing 3339 Other general purpose machinery manufacturing 3332 Other industrial machinery manufacturing
3329 Other fabricated metal manufacturing 3331 Construction machinery manufacturing
12-26 Wisconsin Economic Future Study
3322 Cutlery and handtool manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 2122 Iron ore mining 3312 Steel product manufacturing from purchased
steel 1119 All other crop farming
52A Monetary authorities and depository credit intermediation
3399 Office supplies (except paper) manufacturing
2211 Electric power generation, transmission, and distribution
3241 All other petroleum and coal products manufacturing
484 Truck transportation 3323 Plate work and fabricated structural product manufacturing
522 Nondepository credit intermediation and related activities
533 Lessors of nonfinancial intangible assets 517 Telecommunications 23 Maintenance and repair construction of
nonresidential maintenance and repair
493 Warehousing and storage
Consumer Industries for Typical Regional Industry
112 Dairy cattle and milk production
3339 Packaging machinery manufacturing
8111 Automotive repair and maintenance, except car washes
3323 Plate work and fabricated structural product manufacturing
23 Construction of other new residential structures
3369 All other transportation equipment manufacturing
3261 Other plastics product manufacturing
12-27 Wisconsin Economic Future Study
3323 Architectural and structural metals manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 3312 Steel product manufacturing from purchased
steel 2122 Iron ore mining
55 Management of companies and enterprises 1119 All other crop farming 484 Truck transportation 3399 Office supplies (except paper)
manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 517 Telecommunications 3323 Plate work and fabricated structural
product manufacturing 5412 Accounting, tax preparation, bookkeeping, and
payroll services
23 Maintenance and repair construction of nonresidential maintenance and repair
56A Employment services 2211 Electric power generation, transmission, and
distribution
5614 Business support services 5413 Architectural, engineering, and related services 5411 Legal services Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential
structures 23 Construction of new nonresidential commercial
and health care structures 3323 Plate work and fabricated structural product
manufacturing 23 Construction of other new residential structures
23 Maintenance and repair construction of nonresidential maintenance and repair
3323 Ornamental and architectural metal products manufacturing
3341 Computer storage device manufacturing
3363 Motor vehicle parts manufacturing
3261 Other plastics product manufacturing
722 Food services and drinking places
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3324 Boiler, tank, and shipping container manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry
3324 Metal can, box, and other metal container (light gauge) manufacturing
3313 Aluminum product manufacturing from purchased aluminum
42 Wholesale trade 2122 Iron ore mining
484 Truck transportation 1119 All other crop farming
3312 Steel product manufacturing from purchased steel
3399 Office supplies (except paper) manufacturing
2211 Electric power generation, transmission, and distribution
3241 All other petroleum and coal products manufacturing
52A Monetary authorities and depository credit intermediation
3323 Plate work and fabricated structural product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
55 Management of companies and enterprises 3323 Ornamental and architectural metal products
manufacturing
533 Lessors of nonfinancial intangible assets
Consumer Industries for Typical Regional Industry
3121 Breweries
3114 Fruit and vegetable canning, pickling, and drying
3115 Dry, condensed, and evaporated dairy product manufacturing
3324 Metal can, box, and other metal container (light gauge) manufacturing
12-29 Wisconsin Economic Future Study
3328 Coating, engraving, and heat treating metals Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 2211 Electric power generation, transmission, and
distribution 3313 Aluminum product manufacturing from
purchased aluminum 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 1119 All other crop farming 3312 Steel product manufacturing from purchased
steel 3399 Office supplies (except paper)
manufacturing 52A Monetary authorities and depository credit
intermediation 3241 All other petroleum and coal products
manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3323 Plate work and fabricated structural
product manufacturing 484 Truck transportation 531 Real estate 8123 Dry-cleaning and laundry services 517 Telecommunications 722 Food services and drinking places
Consumer Industries for Typical Regional Industry
3323 Plate work and fabricated structural product manufacturing
3222 Sanitary paper product manufacturing 484 Truck transportation 3369 All other transportation equipment manufacturing 3328 Coating, engraving, heat treating and allied
activities 23 Construction of other new residential structures 3341 Computer storage device manufacturing 3261 Other plastics product manufacturing
12-30 Wisconsin Economic Future Study
3329 Other fabricated metal product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 55 Management of companies and enterprises 2122 Iron ore mining 2211 Electric power generation, transmission, and
52A Monetary authorities and depository credit intermediation
3241 All other petroleum and coal products manufacturing
3312 Steel product manufacturing from purchased steel
3323 Plate work and fabricated structural product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
531 Real estate 493 Warehousing and storage 522 Nondepository credit intermediation and
related activities
517 Telecommunications
Consumer Industries for Typical Regional Industry
3369 All other transportation equipment manufacturing 3222 Sanitary paper product manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 3115 Cheese manufacturing 23 Construction of new nonresidential manufacturing
structures 23 Construction of other new nonresidential
structures
12-31 Wisconsin Economic Future Study
3334 Ventilation, heating, air-conditioning (HVAC), and commercial refrigeration equipment Supplier Industries for Typical Regional Industry Supplier Industries for National Industry
42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural
product manufacturing 484 Truck transportation 3313 Aluminum product manufacturing from
purchased aluminum 52A Monetary authorities and depository credit
intermediation 3326 Spring and wire product manufacturing
2211 Electric power generation, transmission, and distribution
3345 Watch, clock, and other measuring and controlling device manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3345 Totalizing fluid meters and counting devices manufacturing
3312 Steel product manufacturing from purchased steel
3241 All other petroleum and coal products manufacturing
517 Telecommunications
Consumer Industries for Typical Regional Industry
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
3334 Air purification and ventilation equipment manufacturing
23 Construction of new nonresidential commercial and health care structures
23 Construction of other new nonresidential structures 23 Construction of other new residential structures 3114 Fruit and vegetable canning, pickling, and drying 23 Maintenance and repair construction of
nonresidential maintenance and repair
12-32 Wisconsin Economic Future Study
3335 Metalworking machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry
5415 Custom computer programming services 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural
product manufacturing 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 2211 Electric power generation, transmission, and
distribution 3326 Spring and wire product manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3345 Watch, clock, and other measuring and controlling device manufacturing
52A Monetary authorities and depository credit intermediation
3345 Totalizing fluid meters and counting devices manufacturing
484 Truck transportation 3241 All other petroleum and coal products manufacturing
531 Real estate 3312 Steel product manufacturing from purchased
steel
517 Telecommunications 493 Warehousing and storage 522 Nondepository credit intermediation and
related activities
Consumer Industries for Typical Regional Industry 3335 Industrial mold manufacturing 3329 Other fabricated metal manufacturing 3323 Plate work and fabricated structural product
manufacturing 3335 Special tool, die, jig, and fixture manufacturing 3327 Machine shops 3315 Nonferrous metal foundries 3327 Turned product and screw, nut, and bolt
manufacturing
12-33 Wisconsin Economic Future Study
3339 Other general purpose machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3323 Plate work and fabricated structural product
manufacturing 484 Truck transportation 3313 Aluminum product manufacturing from
purchased aluminum 52A Monetary authorities and depository credit
intermediation 3326 Spring and wire product manufacturing
517 Telecommunications 3345 Watch, clock, and other measuring and controlling device manufacturing
2211 Electric power generation, transmission, and distribution
3345 Totalizing fluid meters and counting devices manufacturing
3241 All other petroleum and coal products manufacturing
Consumer Industries for Typical Regional Industry 23 Construction of new nonresidential commercial
and health care structures 23 Construction of other new nonresidential
structures 23 Construction of new nonresidential
manufacturing structures 23 Construction of other new residential structures 3339 Other general purpose machinery manufacturing 3339 Pump and pumping equipment manufacturing
3341 Computer and peripheral equipment manufacturing
Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 5112 Software publishers 55 Management of companies and enterprises 3344 Semiconductor and related device
manufacturing 5417 Scientific research and development services 42 Wholesale trade 3341 Computer storage device manufacturing 3341 Computer storage device manufacturing 484 Truck transportation 3341 Electronic computer manufacturing 55 Management of companies and
assembly) manufacturing 5417 Scientific research and development
services 3341 Computer terminals and other computer
peripheral equipment manufacturing Consumer Industries for Typical Regional Industry 3341 Electronic computer manufacturing 3341 Computer storage device manufacturing
12-34 Wisconsin Economic Future Study
3353 Electrical equipment manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 42 Wholesale trade 2122 Iron ore mining 55 Management of companies and enterprises 3334 Heating equipment (except warm air
furnaces) manufacturing 484 Truck transportation 3112 Soybean and other oilseed processing 3312 Steel product manufacturing from purchased
steel 3323 Plate work and fabricated structural
product manufacturing 2211 Electric power generation, transmission, and
distribution 3313 Aluminum product manufacturing from
purchased aluminum 23 Maintenance and repair construction of
nonresidential maintenance and repair 1113 Fruit farming
493 Warehousing and storage
Consumer Industries for Typical Regional Industry 3334 Air purification and ventilation equipment
manufacturing 3334 Air conditioning, refrigeration, and warm air
heating equipment manufacturing 3339 Pump and pumping equipment manufacturing 3339 Power-driven handtool manufacturing 3353 Motor and generator manufacturing 3339 Other general purpose machinery
4841 General freight trucking Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 484 Truck transportation 3241 Petroleum refineries 492 Couriers and messengers 492 Couriers and messengers 491 Postal service 484 Truck transportation 56A Employment services 5241 Insurance carriers 5241 Insurance carriers 56A Employment services 493 Warehousing and storage 491 Postal service 48A Scenic and sightseeing transportation and
support activities for transportation 48A Scenic and sightseeing transportation
and support activities for transportation 52A Monetary authorities and depository credit
intermediation 3363 Motor vehicle parts manufacturing
42 Wholesale trade 531 Real estate 493 Warehousing and storage
Consumer Industries for Typical Regional Industry 484 Truck transportation 3115 Cheese manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 3116 Poultry processing
5221 Depository credit intermediation
Supplier Industries for Typical Regional Industry Supplier Industries for National Industry
52A Monetary authorities and depository credit intermediation
5242 Insurance agencies, brokerages, and related activities
522 Nondepository credit intermediation and related activities
52A Monetary authorities and depository credit intermediation
523 Securities, commodity contracts, investments, and related activities
522 Nondepository credit intermediation and related activities
722 Food services and drinking places 523 Securities, commodity contracts, investments, and related activities
23 Maintenance and repair construction of nonresidential maintenance and repair
531 Real estate
55 Management of companies and enterprises
517 Telecommunications
Consumer Industries for Typical Regional Industry
52A Monetary authorities and depository credit intermediation
522 Nondepository credit intermediation and related activities
523 Securities, commodity contracts, investments, and related activities
813 Civic, social, professional, and similar organizations
12-36 Wisconsin Economic Future Study
5241 Insurance carriers Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 5242 Insurance agencies, brokerages, and
related activities 5242 Insurance agencies, brokerages, and
related activities 5241 Insurance carriers 5241 Insurance carriers 52A Monetary authorities and depository
credit intermediation 52A Monetary authorities and depository
484 Truck transportation 622 Hospitals 5241 Insurance carriers 621 Offices of physicians, dentists, and other health
practitioners
5511 Management of companies and enterprises
Supplier Industries for Typical Regional Industry Supplier Industries for National Industry 517 Telecommunications 517 Telecommunications 522 Nondepository credit intermediation and related activities 5411 Legal services 5411 Legal services 5418 Advertising and related services 533 Lessors of nonfinancial intangible assets 56A Management, scientific, and technical
consulting services 531 Real estate 531 Real estate 3231 Printing 533 Lessors of nonfinancial intangible assets 5111 Newspaper publishers 522 Nondepository credit intermediation
and related activities 52A Monetary authorities and depository credit intermediation 5412 Accounting, tax preparation,
bookkeeping, and payroll services 5412 Accounting, tax preparation, bookkeeping, and payroll
services 523 Securities, commodity contracts,
investments, and related activities 5418 Advertising and related services 5151 Radio and television broadcasting 5151 Radio and television broadcasting 5415 Computer systems design services 56A Management, scientific, and technical consulting services 813 Civic, social, professional, and similar organizations 722 Food services and drinking places
Consumer Industries for Typical Regional Industry 3341 Computer storage device manufacturing 622 Hospitals 3341 Electronic computer manufacturing 3116 Poultry processing 3115 Dry, condensed, and evaporated dairy product
manufacturing 722 Food services and drinking places 42 Wholesale trade
12-37 Wisconsin Economic Future Study
6114 Business schools and computer and management training Supplier Industries for Typical Regional Industry Supplier Industries for National Industry
531 Real estate 531 Real estate 52A Monetary authorities and depository credit
intermediation 2211 Electric power generation, transmission,
and distribution 517 Telecommunications 2212 Natural gas distribution 56A Employment services 5191 Internet publishing and broadcasting 23 Maintenance and repair construction of
nonresidential maintenance and repair 517 Telecommunications
813 Civic, social, professional, and similar organizations
5417 Scientific research and development services
5242 Insurance agencies, brokerages, and related activities
5617 Services to buildings and dwellings 5415 Other computer related services, including
facilities management
Consumer Industries for Typical Regional Industry
813 Civic, social, professional, and similar organizations 813 Grantmaking, giving, and social advocacy
organizations 611 Other educational services
6221 General medical and surgical hospitals
Supplier Industries for Typical Regional Industry Supplier Industries for National Industry
531 Real estate 531 Real estate 55 Management of companies and enterprises 3254 Pharmaceutical preparation
manufacturing 56A Employment services 55 Management of companies and
enterprises 2211 Electric power generation, transmission, and
distribution 5241 Insurance carriers
5241 Insurance carriers 621 Medical and diagnostic labs and outpatient and other ambulatory care services
42 Wholesale trade 56A Employment services 621 Medical and diagnostic labs and outpatient and
other ambulatory care services 42 Wholesale trade
Consumer Industries for Typical Regional Industry 622 Hospitals 621 Offices of physicians, dentists, and other
health practitioners 621 Medical and diagnostic labs and outpatient
and other ambulatory care services
12-38 Wisconsin Economic Future Study
12.3.3 Top Firms2 by Driver Industry in the West Central I Region 3111 Animal food manufacturing
Company Name Industry Description Employment Size
County
La Crosse Milling Co. Other Animal Food Manufacturing 50 - 99 Buffalo Domain Inc. Other Animal Food Manufacturing 50 - 99 Saint Croix Western Wisconsin Energy LLC Other Animal Food Manufacturing 20 - 49 Dunn
3114 Fruit and vegetable preserving and specialty
Company Name Industry Description Employment
Size County McCain Foods USA Fruit and Vegetable Canning 250 - 499 Barron Seneca Foods Corp. Fruit and Vegetable Canning 250 - 499 Barron Lakeside Foods Inc. Fruit and Vegetable Canning 250 - 499 Saint Croix Lakeside Foods Inc. Fruit and Vegetable Canning 100 - 249 Buffalo Bush Brothers & Co. Fruit and Vegetable Canning 100 - 249 Eau Claire Advanced Food Products Fruit and Vegetable Canning 100 - 249 Polk
3115 Dairy product manufacturing
Company Name Industry Description Employment
Size County Saputo Cheese USA Inc. Cheese Manufacturing 100 - 249 Barron Associated Milk Producers Inc. Cheese Manufacturing 100 - 249 Chippewa Crystal Lake Cheese Factory Cheese Manufacturing 50 - 99 Barron Foremost Farms USA Cheese Manufacturing 50 - 99 Buffalo Ellsworth Co-Op Creamery Cheese Manufacturing 50 - 99 Pierce F & A Dairy Products Inc. Cheese Manufacturing 50 - 99 Polk Foremost Farms USA Cheese Manufacturing 50 - 99 Polk Cady Cheese Factory Inc. Cheese Manufacturing 50 - 99 Saint Croix Eau Galle Cheese Factory Shop Cheese Manufacturing 20 - 49 Pepin
3116 Animal slaughtering and processing
Company Name Industry Description Employment
Size County Primera Foods Corp. Poultry Processing 50 - 99 Barron
2 Top firms are identified by an establishment's employment by each driver industry in the West Central I Region. Those establishments of companies having 20 employees or more are listed in the tables.
12-39 Wisconsin Economic Future Study
3162 Footwear Manufacturing
Company Name Industry Description Employment
Size County B A Mason Co. Footwear Manufacturing 250 - 499 Chippewa Linds World Impex Footwear Manufacturing 20 - 49 Saint Croix
3212 Plywood and engineered wood product manufacturing
Company Name Industry Description Employment
Size County
Birchwood Manufacturing Co. Hardwood Veneer and Plywood
Manufacturing 100 - 249 Barron 3219 Other wood product manufacturing
Company Name Industry Description Employment
Size County
Mastercraft Industries Inc. Other Millwork (including
Size County Cascades Tissue Group Paper (except Newsprint) Mills 250 - 499 Eau Claire
3222 Converted paper product manufacturing
Company Name Industry Description Employment
Size County
Pactiv Corp. Paper Bag and Coated and
Treated Paper Manufacturing 250 - 499 Chippewa
American Excelsior Co. Paper Bag and Coated and
Treated Paper Manufacturing 100 - 249 Barron
Empire Bucket Inc. Other Paperboard Container
Manufacturing 50 - 99 Saint Croix
Shadow Plastics Inc. Paper Bag and Coated and
Treated Paper Manufacturing 20 - 49 Barron
General Plastic Extrusions Paper Bag and Coated and
Treated Paper Manufacturing 20 - 49 Pierce
12-40 Wisconsin Economic Future Study
3261 Plastics product manufacturing
Company Name Industry Description Employment
Size County Phillips-Medisize All Other Plastics Product Manufacturing 1000+ Eau Claire Phillips-Medisize All Other Plastics Product Manufacturing 250 - 499 Eau Claire Phillips-Medisize Corp. All Other Plastics Product Manufacturing 250 - 499 Saint Croix Phillips-Medisize All Other Plastics Product Manufacturing 100 - 249 Dunn Multishot Facility All Other Plastics Product Manufacturing 100 - 249 Eau Claire Phillips-Medisize All Other Plastics Product Manufacturing 100 - 249 Eau Claire Federal Foam Technologies Inc.
Urethane and Other Foam Product (except Polystyrene) Manufacturing 100 - 249 Saint Croix
Loparex LLC Unlaminated Plastics Film and Sheet (except
Packaging) Manufacturing 100 - 249 Saint Croix Phillips-Medisize All Other Plastics Product Manufacturing 100 - 249 Saint Croix Vital Plastics All Other Plastics Product Manufacturing 100 - 249 Saint Croix
F G Products Inc. Urethane and Other Foam Product (except
Urethane and Other Foam Product (except Polystyrene) Manufacturing 50 - 99 Eau Claire
Federal Foam Technologies Inc.
Urethane and Other Foam Product (except Polystyrene) Manufacturing 50 - 99 Pierce
Minnesota Rubber & Plastics All Other Plastics Product Manufacturing 50 - 99 Pierce MPP Corp. All Other Plastics Product Manufacturing 50 - 99 Polk Thermal Plastic Design Inc. All Other Plastics Product Manufacturing 50 - 99 Polk Contour Plastics Inc. All Other Plastics Product Manufacturing 50 - 99 Saint Croix Diversified Converting Tech
Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing 50 - 99 Saint Croix
Roma Tool & Plastics Inc. All Other Plastics Product Manufacturing 20 - 49 Barron Alliance Plastics Corp. All Other Plastics Product Manufacturing 20 - 49 Chippewa Phillips-Medisize All Other Plastics Product Manufacturing 20 - 49 Dunn Accu-Tech Plastics Inc. All Other Plastics Product Manufacturing 20 - 49 Eau Claire Beaudry Co. All Other Plastics Product Manufacturing 20 - 49 Polk Industrial Tool & Plastics Inc. All Other Plastics Product Manufacturing 20 - 49 Polk Imark Molding Inc. All Other Plastics Product Manufacturing 20 - 49 Saint Croix Prism Plastics Inc. All Other Plastics Product Manufacturing 20 - 49 Saint Croix
12-41 Wisconsin Economic Future Study
3272 Glass and glass product manufacturing
Company Name Industry Description Employment
Size County Cardinal Fg Co. Flat Glass Manufacturing 100 - 249 Dunn
Cardinal Lg Co. Glass Product Manufacturing
Made of Purchased Glass 100 - 249 Polk 3273 Cement and concrete product manufacturing
Company Name Industry Description Employment
Size County
County Materials Corp. Ready-Mix Concrete
Manufacturing 50 - 99 Eau Claire
Wieser Concrete Products Inc. Other Concrete Product
Manufacturing 50 - 99 Pierce
Cemstone Ready Mix Ready-Mix Concrete
Manufacturing 50 - 99 Polk
County Materials Corp. Ready-Mix Concrete
Manufacturing 50 - 99 Saint Croix
Todd's Redi Mix Concrete LLC Ready-Mix Concrete
Manufacturing 20 - 49 Barron
A-1 Redi-Mix Concrete Ready-Mix Concrete
Manufacturing 20 - 49 Chippewa
Chippewa Redi-Mix Concrete Co. Ready-Mix Concrete
Manufacturing 20 - 49 Chippewa
Premier Block Corp. Concrete Block and Brick
Manufacturing 20 - 49 Eau Claire 3315 Foundries
Company Name Industry Description Employment
Size County Henry Wisconsin Iron Foundries 50 - 99 Barron Badger Iron Works Inc. Iron Foundries 20 - 49 Dunn
St Croix Castings Inc. Steel Foundries (except
Investment) 20 - 49 Saint Croix 3322 Cutlery and handtool manufacturing
Company Name Industry Description Employment Size County
Foley United Saw Blade and Handtool Manufacturing 50 - 99 Saint Croix
12-42 Wisconsin Economic Future Study
3323 Architectural and structural metals manufacturing
Company Name Industry Description Employment Size County
PDM BridgeLLC Fabricated Structural Metal Manufacturing 250 - 499 Chippewa
AJ Manufacturing Inc. Metal Window and Door Manufacturing 100 - 249 Chippewa
Oem Fabricators Inc. Fabricated Structural Metal Manufacturing 100 - 249 Saint Croix
Company Name Industry Description Employment Size County
Extrusion Dies Industries LLC Special Die and Tool, Die Set,
Jig, and Fixture Manufacturing 100 - 249 Chippewa
Allied Dies Special Die and Tool, Die Set,
Jig, and Fixture Manufacturing 20 - 49 Chippewa
Premier Dies Corp. Special Die and Tool, Die Set,
Jig, and Fixture Manufacturing 20 - 49 Chippewa UniPunch Products Machine Tool Manufacturing 20 - 49 Polk
Konrad Corp.
Rolling Mill and Other Metalworking Machinery
Manufacturing 20 - 49 Saint Croix
12-45 Wisconsin Economic Future Study
3339 Other general purpose machinery manufacturing
Company Name Industry Description Employment Size County
Rice Lake Weighing Systems Scale and Balance Manufacturing 250 - 499 Barron Bosch Packaging Technology Packaging Machinery Manufacturing 250 - 499 Saint Croix
W S Darley & Co. Pump and Pumping Equipment Manufacturing 100 - 249 Chippewa
L E Phillips Career Development Center
All Other Miscellaneous General Purpose Machinery Manufacturing 100 - 249 Eau Claire
Catalytic Combustion Corp. Industrial Process Furnace and Oven Manufacturing 50 - 99 Chippewa
Liquid Waste Technology Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing 50 - 99 Saint Croix
W S Darley & Co. All Other Miscellaneous General Purpose Machinery Manufacturing 20 - 49 Chippewa
J F Ahern Co. All Other Miscellaneous General Purpose Machinery Manufacturing 20 - 49 Dunn
Werner Electric Supply Co. All Other Miscellaneous General Purpose Machinery Manufacturing 20 - 49 Eau Claire
Wolter Material Handling Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing 20 - 49 Eau Claire
3353 Electrical equipment manufacturing
Company Name Industry Description Employment Size County
Border States Motor and Generator Manufacturing 20 - 49 Eau Claire 4841 General freight trucking
Company Name Industry Description Employment
Size County Leonard's Express Inc. General Freight Trucking, Local 100 - 249 Eau Claire Reed's Courier LLC General Freight Trucking, Local 50 - 99 Eau Claire Becker's Trucking Inc. General Freight Trucking, Local 20 - 49 Barron All-Ways Transit Inc. General Freight Trucking, Local 20 - 49 Chippewa E C Moving & Storage Inc. General Freight Trucking, Local 20 - 49 Chippewa Waltco Inc. General Freight Trucking, Local 20 - 49 Chippewa Jain Enterprises Inc. General Freight Trucking, Local 20 - 49 Eau Claire
12-46 Wisconsin Economic Future Study
5221 Depository credit intermediation
Company Name Industry Description Employment Size County
Citizens Community Federal Commercial Banking 1000+ Eau Claire Westconsin Credit Union Credit Unions 100 - 249 Dunn Royal Credit Union Credit Unions 100 - 249 Eau Claire Dairy State Bank Commercial Banking 50 - 99 Barron Northwestern Bank Commercial Banking 50 - 99 Chippewa Westconsin Credit Union Credit Unions 50 - 99 Dunn Westconsin Credit Union Credit Unions 50 - 99 Dunn Bank Mutual Commercial Banking 50 - 99 Eau Claire Charter Bank Eau Claire Commercial Banking 50 - 99 Eau Claire Royal Credit Union Credit Unions 50 - 99 Eau Claire US Bank Commercial Banking 50 - 99 Eau Claire First National Bank-River Flls Commercial Banking 50 - 99 Pierce Royal Credit Union Credit Unions 50 - 99 Saint Croix Sterling Bank Commercial Banking 20 - 49 Barron US Bank Commercial Banking 20 - 49 Barron Westconsin Credit Union Credit Unions 20 - 49 Barron Alliance Bank Commercial Banking 20 - 49 Buffalo Citizens State Bank Commercial Banking 20 - 49 Chippewa M&I Bank Commercial Banking 20 - 49 Chippewa Peoples State Bank of Bloomer Commercial Banking 20 - 49 Chippewa Royal Credit Union Credit Unions 20 - 49 Chippewa Bremer Bank Commercial Banking 20 - 49 Dunn Dairy State Bank Commercial Banking 20 - 49 Dunn Alliance Bank Commercial Banking 20 - 49 Eau Claire Citizens Community Federal Commercial Banking 20 - 49 Eau Claire United Bank Commercial Banking 20 - 49 Eau Claire Unity Bank Commercial Banking 20 - 49 Eau Claire Wells Fargo Bank Commercial Banking 20 - 49 Eau Claire Security Financial Bank Commercial Banking 20 - 49 Pepin River Falls State Bank Commercial Banking 20 - 49 Pierce Bremer Bank Commercial Banking 20 - 49 Polk Central Bank Commercial Banking 20 - 49 Polk Westconsin Credit Union Credit Unions 20 - 49 Polk AgStar Financial Services Commercial Banking 20 - 49 Saint Croix Associated Bank Commercial Banking 20 - 49 Saint Croix Associated Bank Commercial Banking 20 - 49 Saint Croix Citizens State Bank Commercial Banking 20 - 49 Saint Croix Eagle Valley Bank NA Commercial Banking 20 - 49 Saint Croix First Bank of Baldwin Commercial Banking 20 - 49 Saint Croix First National Bank Commercial Banking 20 - 49 Saint Croix
12-47 Wisconsin Economic Future Study
5221 Depository credit intermediation (continued)
Company Name Industry Description Employment Size County
Royal Credit Union Commercial Banking 20 - 49 Saint Croix Wells Fargo Bank Commercial Banking 20 - 49 Saint Croix Westconsin Credit Union Credit Unions 20 - 49 Saint Croix Westconsin Credit Union Credit Unions 20 - 49 Saint Croix
5241 Insurance carriers
Company Name Industry Description Employment Size County
UnitedHealthcare Community Plan Direct Health and Medical Insurance Carriers 1000+ Eau Claire
5511 Management of companies and enterprises
Company Name Industry Description Employment
Size County
Citizens Bancorp Inc. Offices of Bank Holding
Companies 1000+ Chippewa
First National Bancorp Offices of Bank Holding
Companies 1000+ Pierce
Dairy State Bancorp Inc. Offices of Bank Holding
Companies 50 - 99 Barron
Citizens Community Bancorp Inc. Offices of Bank Holding
Companies 50 - 99 Eau Claire
Gebsco Inc. Offices of Bank Holding
Companies 20 - 49 Buffalo
Bloomer Bancshares Inc. Offices of Bank Holding
Companies 20 - 49 Chippewa
Southside Holdings Offices of Bank Holding
Companies 20 - 49 Eau Claire
Baldwin Bancshares Inc. Offices of Bank Holding
Companies 20 - 49 Saint Croix
Citizens Bancshares-Woodville Offices of Bank Holding
Companies 20 - 49 Saint Croix 6114 Business, computer and management training
Company Name Industry Description Employment
Size County Chippewa Valley Technical College Business and Secretarial Schools 20 - 49 Eau Claire
12-48 Wisconsin Economic Future Study
6221 General medical and surgical hospitals
Company Name Industry Description Employment Size County
St Joseph's Hospital General Medical and Surgical Hospitals 1000+ Chippewa Luther Midelfort-Mayo Health General Medical and Surgical Hospitals 1000+ Eau Claire Luther-Midelfort Clinic General Medical and Surgical Hospitals 1000+ Eau Claire Sacred Heart Hospital General Medical and Surgical Hospitals 1000+ Eau Claire Barron Medical Center General Medical and Surgical Hospitals 250 - 499 Barron Lakeview Medical Center General Medical and Surgical Hospitals 250 - 499 Barron Luther Midelfort Northland General Medical and Surgical Hospitals 250 - 499 Barron Amery Regional Medical Center General Medical and Surgical Hospitals 250 - 499 Polk St Croix Regional Medical Center General Medical and Surgical Hospitals 250 - 499 Polk Westfields Hospital General Medical and Surgical Hospitals 250 - 499 Saint Croix Cumberland Memorial Hospital General Medical and Surgical Hospitals 100 - 249 Barron Lakeview Medical Center General Medical and Surgical Hospitals 100 - 249 Barron Marshfield Clinic General Medical and Surgical Hospitals 100 - 249 Chippewa Chippewa Valley Hospital General Medical and Surgical Hospitals 100 - 249 Pepin St Paul Eye Clinic PA General Medical and Surgical Hospitals 100 - 249 Polk Baldwin Area Medical Center General Medical and Surgical Hospitals 100 - 249 Saint Croix Hudson Hospital General Medical and Surgical Hospitals 100 - 249 Saint Croix Cumberland Memorial Hospital General Medical and Surgical Hospitals 50 - 99 Barron Sacred Heart Hospital General Medical and Surgical Hospitals 50 - 99 Chippewa St Joseph's Hospital General Medical and Surgical Hospitals 50 - 99 Chippewa Lutheran Gundersen Medical Center General Medical and Surgical Hospitals 50 - 99 Eau Claire Luther Midlefort General Medical and Surgical Hospitals 20 - 49 Eau Claire St Croix Regional Medical Center General Medical and Surgical Hospitals 20 - 49 Polk River Falls Area Hospital General Medical and Surgical Hospitals 20 - 49 Saint Croix
12-49 Wisconsin Economic Future Study
12.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, West Central I Region Table 12-3 Employment in the West Central I Region’s Driver Industries, 2000-2011
12.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, West Central I Region (continued) Table 12-3 Employment in the West Central I Region’s Driver Industries, 2000-2011
NAICS Title 2000 2003 2007 2008 2009 2010 2011 5221 Depository credit intermediation 2,715 2,796 3,097 3,269 3,333 3,230 3,226 5241 Insurance carriers 677 1,324 1,788 1,930 2,014 1,998 1,966 5511 Management of companies and enterprises 1,685 2,405 2,588 2,612 2,635 2,874 2,895 6114 Business, computer, and management training 495 477 411 458 397 480 536 6221 General medical and surgical hospitals 6,588 7,210 8,357 8,580 8,615 8,341 8,380
12-51 Wisconsin Economic Future Study
Table 12-4 Percentage Change for Employment in the West Central I Region’s Driver Industries, 2000-2011 NAICS Title 2000-2003 2003-2008 2008-2011 3111 Animal food manufacturing -16.5% 1.8% 0.9% 3114 Fruit and vegetable preserving and specialty -37.2% 11.2% 9.4% 3115 Dairy product manufacturing -28.6% -1.8% 3.6% 3116 Animal slaughtering and processing -4.6% -8.6% -1.0% 3162 Footwear manufacturing -28.3% 1.5% -8.2% 3212 Plywood and engineered wood product manufacturing 25.8% -13.8% -27.2% 3219 Other wood product manufacturing 1.1% -24.9% -5.1% 3221 Pulp, paper, and paperboard mills -19.9% 12.0% -5.4% 3222 Converted paper product manufacturing -17.9% 21.9% -10.8% 3261 Plastics product manufacturing -24.4% 9.4% -19.5% 3272 Glass and glass product manufacturing -5.8% -2.9% 0.8% 3273 Cement and concrete product manufacturing -11.7% 30.6% -21.7% 3315 Foundries -12.1% 6.4% -5.4% 3322 Cutlery and handtool manufacturing -6.3% 7.3% -5.8% 3323 Architectural and structural metals manufacturing 7.8% 0.4% -9.0% 3324 Boiler, tank, and shipping container manufacturing 0.0% 10.2% 48.0% 3328 Coating, engraving, and heat treating metals 13.7% 42.2% 1.2% 3329 Other fabricated metal product manufacturing -8.5% 41.3% -10.5% 3334 HVAC and commercial refrigeration equipment -19.0% -13.2% 0.8% 3335 Metalworking machinery manufacturing -30.9% 13.9% -2.1% 3339 Other general purpose machinery manufacturing -19.5% 7.2% -8.6% 3341 Computer and peripheral equipment manufacturing -23.1% -5.1% -6.7% 3353 Electrical equipment manufacturing -37.4% -6.5% -0.7% 4841 General freight trucking 14.1% -0.6% -14.1% 5221 Depository credit intermediation 3.0% 16.9% -1.3% 5241 Insurance carriers 95.6% 45.8% 1.9% 5511 Management of companies and enterprises 42.7% 8.6% 10.8% 6114 Business, computer, and management training -3.6% -4.0% 17.0% 6221 General medical and surgical hospitals 9.4% 19.0% -2.3%
12-52 Wisconsin Economic Future Study
Table 12-5 Labor Location Quotients* - West Central I Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3111 Animal food manufacturing 1.65 1.65 1.68 3114 Fruit and vegetable preserving and specialty 2.25 2.62 2.87 3115 Dairy product manufacturing 5.86 5.83 5.95 3116 Animal slaughtering and processing 4.39 4.13 4.29 3162 Footwear manufacturing 7.44 8.51 8.36 3212 Plywood and engineered wood product manufacturing 2.46 2.49 2.49 3219 Other wood product manufacturing 1.96 1.73 2.21 3221 Pulp, paper, and paperboard mills 2.31 2.89 3.17 3222 Converted paper product manufacturing 1.75 2.39 2.40 3261 Plastics product manufacturing 3.46 4.14 3.76 3272 Glass and glass product manufacturing 2.71 3.06 3.71 3273 Cement and concrete product manufacturing 1.46 1.95 2.03 3315 Foundries 2.47 2.85 3.20 3322 Cutlery and handtool manufacturing 2.05 2.34 2.59 3323 Architectural and structural metals manufacturing 2.84 2.73 3.04 3324 Boiler, tank, and shipping container manufacturing 1.81 1.90 3.05 3328 Coating, engraving, and heat treating metals 2.17 3.09 3.47 3329 Other fabricated metal product manufacturing 1.86 2.60 2.61 3334 HVAC and commercial refrigeration equipment 3.86 3.39 3.95 3335 Metalworking machinery manufacturing 2.30 2.81 3.19 3339 Other general purpose machinery manufacturing 1.66 1.73 1.83 3341 Computer and peripheral equipment manufacturing 6.55 7.03 7.21 3353 Electrical equipment manufacturing 3.07 2.96 3.29 4841 General freight trucking 2.57 2.43 2.27 5221 Depository credit intermediation 1.12 1.26 1.30 5241 Insurance carriers 0.69 1.04 1.13 5511 Management of companies and enterprises 0.93 0.91 1.02 6114 Business, computer, and management training 3.29 3.22 3.66 6221 General medical and surgical hospitals 1.23 1.34 1.25
* The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
12-53 Wisconsin Economic Future Study
Table 12-6 Gross Product in the West Central I Region's Driver Industries, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011
Table 12-7 Percentage Change for Growth Product in the West Central I Region’s Driver Industries, 2000-2011 (continued) NAICS Title 2000-2007 2007-2008 2008-2011
5511 Management of companies and enterprises 46.3% -10.4% 8.7%
6114 Business, computer, and management training -8.1% 15.3% -0.8%
6221 General medical and surgical hospitals 52.9% 4.8% 9.2%
12-57 Wisconsin Economic Future Study
Table 12-8 Output Location Quotients* - West Central I Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3111 Animal food manufacturing 2.73 2.88 2.91 3114 Fruit and vegetable preserving and specialty 2.76 3.53 3.62 3115 Dairy product manufacturing 6.23 7.50 7.46 3116 Animal slaughtering and processing 4.06 4.68 4.93 3162 Footwear manufacturing 8.16 7.44 10.65 3212 Plywood and engineered wood product manufacturing 2.52 2.88 2.65 3219 Other wood product manufacturing 3.89 3.76 4.40 3221 Pulp, paper, and paperboard mills 2.94 3.13 3.89 3222 Converted paper product manufacturing 2.39 2.96 3.32 3261 Plastics product manufacturing 4.83 6.70 5.75 3272 Glass and glass product manufacturing 5.70 6.66 8.90 3273 Cement and concrete product manufacturing 2.86 3.48 4.45 3315 Foundries 3.39 3.20 3.96 3322 Cutlery and handtool manufacturing 2.86 2.47 2.73 3323 Architectural and structural metals manufacturing 3.99 3.59 3.83 3324 Boiler, tank, and shipping container manufacturing 3.19 3.39 5.13 3328 Coating, engraving, and heat treating metals 2.80 3.92 4.06 3329 Other fabricated metal product manufacturing 2.69 3.79 3.51 3334 HVAC and commercial refrigeration equipment 4.35 4.62 5.62 3335 Metalworking machinery manufacturing 2.79 3.21 4.48 3339 Other general purpose machinery manufacturing 2.33 2.44 2.81 3341 Computer and peripheral equipment manufacturing 5.57 4.91 4.08 3353 Electrical equipment manufacturing 3.33 2.95 3.31 4841 General freight trucking 3.41 3.28 3.05
12-58 Wisconsin Economic Future Study
Table 12-8 Output Location Quotients* - West Central I Region's Driver Industries, 2003-2011 (continued) NAICS Title 2003 2008 2011 5221 Depository credit intermediation 1.18 1.34 1.33 5241 Insurance carriers 0.66 1.24 1.48 5511 Management of companies and enterprises 1.41 1.02 1.05 6114 Business, computer, and management training 4.62 5.17 4.96 6221 General medical and surgical hospitals 1.59 1.91 1.85
* The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
Table 12-9 Productivity (Gross Product per Employee) of Driver Industries, West Central I Region, 2000-2011 (continued) NAICS Title 2000 2003 2007 2008 2009 2010 2011 5241 Insurance carriers $98,609 $95,274 $151,870 $124,999 $168,452 $181,818 $187,694 5511 Management of companies and enterprises $108,491 $125,069 $103,340 $91,697 $88,547 $85,193 $89,956 6114 Business, computer, and management training $70,588 $65,336 $78,144 $80,828 $74,579 $63,784 $68,531 6221 General medical and surgical hospitals $49,109 $53,899 $59,205 $60,460 $64,539 $67,834 $67,597
13-1 Wisconsin Economic Future Study
13 West Central II Region
13.1 Introduction Driver industry and industry cluster analyses were conducted for each of the seven economic regions in Wisconsin. The first section in this chapter provides a summary of the findings from the analysis for the West Central II Region, as well as detailed information related to each of the regional driver industries identified. The West Central II Region is defined to include the counties of Jackson, La Crosse, Monroe, Trempealeau, Vernon, WI, and Houston, MN. This chapter also includes detailed descriptions of each of the regional driver industries and their associated industry cluster. Top firms by driver industry in the West Central II Region are provided in a tabular form. Tables in the final section in this chapter (13.3.4) present detailed information of employment, gross product, and gross product per employee for the driver industries.
13.2 Summary of Regional Driver Industries & Industry Clusters The West Central II Region of Wisconsin has 19 regional driver industries at the 4-digit level NAICS (9 drivers at 3-digit level NAICS). The regional driver industries of the West Central II Region are shown on the following page.
13-2 Wisconsin Economic Future Study
NAICS Industry description 311 Food manufacturing (Partial)
3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing
321 Wood product manufacturing (partial) 3211 Sawmills and wood preservation 3219 Other wood product manufacturing
3231 Printing and related support activities 3272 Glass and glass product manufacturing 332 Fabricated metal product manufacturing (partial)
3323 Architectural and structural metals manufacturing 3324 Boiler, tank, and shipping container manufacturing 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
333 Machinery manufacturing (partial)
3331 Agriculture, construction, and mining machinery manufacturing
Interpretation: The horizontal axis (X axis) illustrates the level of specialization of each industry in the region relative to the U.S., measured by the gross product (output). This indicator approximates export orientation of the driver in the region that reflects the level of specialization of the industry in the region. Generally, a location quotient (LQ) above 1.2 indicates that the industry is more concentrated in the region than nationally and the level of concentration is above the error of data estimation. The other axis, output growth, measures the percentage change of an industry’s gross product in the region, from 2008 through 2011. In this region, six of the seven historical drivers identified by the discriminant and cluster analyses of the previous study (2004) remain among the regional drivers. The current analysis identified 19 regional driver industries at the 4-digit NAICS level grouped into 9 3-digit NAICS broader economic areas.
Three historically identified drivers became prominent in the current regional economy. The Food Manufacturing cluster (NAICS 311) is strongly driven by Dairy Product Manufacturing. The industry group doubled in size since 2004, became even more concentrated in the region, and grew its gross regional product by more than 35% from 2008 through 2011. The Animal Slaughtering industry group dropped in size but remains at high output growth (at 35%).
Two strong historical industry groups drive the Machinery Manufacturing cluster (NAICS 333) in the region. The HVAC Commercial Refrigeration Equipment industry group grew its size and regional concentration and increased its output by 10% from 2008 through 2011. The Industrial Machinery Manufacturing industry group has regional concentration above 4 and was growing above 25% in gross regional product from 2008 and 2011. A new driver, Metalworking Machinery Manufacturing, is growing at nearly a 20% rate over the last three years.
The Fabricated Metal Product Manufacturing cluster in the region (NAICS 332) retained its
historical driver industry, Architectural and Structural Metal Manufacturing (NAICS 3323), and the cluster remains about the same size as in the 2004 analysis and added new 4-digit NAICS driver industries. This cluster does not show the same strength as the Machinery Manufacturing cluster. Two of the three new manufacturing industries are very small and show only the potential to become strong regional drivers. The third industry, the Other Fabricated Metal Product Manufacturing, is bigger in size and regional concentration, but has declined over the last three years.
Two other independent industry-group clusters show opposite signs of growth. The historical
Glass and Glass Product Manufacturing industry group has high three-year growth, but lost size and regional concentration compared to the 2004 analysis. The Other Miscellaneous Manufacturing industry group has LQ above 2, but declined from 2008 through 2011.
The Truck Transportation cluster consists of the only two non-manufacturing driver industries in
the region and is the largest economic driver in the region. General Freight Trucking ($290 million of 2011 gross regional product) has LQ=5 and output growth of 8% from 2008 through 2011. Specialized Freight Trucking ($84 million) has LQ=3 and output growth of 10% over the last three years.
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13.2.2 Driver and Industry Cluster Relationships in the West Central II Region An industry cluster analysis was conducted for each of the driver industries in the region. Tables 13-1 and 13-2 provide a summary of the results from these analyses and identify regional and national supplier industries that are common to multiple regional driver industries. The supplier industries identified in Table 13-1 are found in the regional economy and provide goods or services to multiple driver industries. Many, in fact, are driver industries themselves. The importance of these industries to the overall competitiveness of the driver industries cannot be overstated. By providing quality goods and services to the driver industries, these supplier industries help the regional driver industries produce and deliver the products their consumers demand. Attempts to impact the competitiveness of the industries that supply inputs to multiple regional driver industries can indirectly impact the competitiveness of those driver industries.
Table 13-1 Regional & National Supplier Industries Common to Regional Driver Industries
NAICS Title Regional Driver**
Count of Drivers Regional Suppliers
National Suppliers
484 Truck transportation X 16 5 42 Wholesale trade 15 6 531 Real estate 7 2 522 Nondepository credit intermediation and related
activities 7 1
55 Management of companies and enterprises 5 6
493 Warehousing and storage 4 1 3211 Sawmills and wood preservation X 3 1 3324 Metal can, box, and other metal container (light
gauge) manufacturing X 3 1
3115 Dry, condensed, and evaporated dairy product manufacturing
X 3 3
112 Dairy cattle and milk production 3 4 3116 Poultry processing X 3 4
3231 Printing X 2 2 3219 Wood windows and doors and millwork X 2 1
5614 Business support services 2 1 ** Not all of a region's drivers are also suppliers. Those marked with an Х are suppliers. Table 13-2 is similar to Table 13-1 in that it shows industries that supply inputs to multiple driver industries. The difference is that the industries identified in Table 13-2 either do not exist in the region or they are smaller industries that are not likely to be able to provide inputs at a sufficient scale to meet the needs of the driver industries. Attempts to attract or grow these industries within the region may help reduce the import of goods and services by the region’s driver industries.
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Table 13-2 National Supplier Industries Common to Regional Driver Industries NAICS Title Count of Driver
National Suppliers 55 Management of companies and enterprises 6 42 Wholesale trade 6
484 Truck transportation 5 112 Dairy cattle and milk production 4 3116 Animal (except poultry) slaughtering, rendering, and processing 4 3115 Cheese manufacturing 3 3114 Fruit and vegetable canning, pickling, and drying 2 3231 Printing 2 531 Real estate 2
13-7 Wisconsin Economic Future Study
13.3 Detailed Descriptions of the Regional Driver Industries
13.3.1 Driver Industry Definitions 311 Food Manufacturing (partial) Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products.
3114 Fruit and vegetable preserving and specialty 3115 Dairy product manufacturing 3116 Animal slaughtering and processing
321 Wood Product Manufacturing (Partial) Industries in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. The production processes of the Wood Product Manufacturing subsector include sawing, planing, shaping, laminating, and assembling of wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industries mainly based on the specific products manufactured.
3211 Sawmills and wood preservation 3219 Other wood product manufacturing
3231 Printing and Related Support Activities This industry group comprises establishments primarily engaged in printing on apparel and textile products, paper, metal, glass, plastics, and other materials, except fabric (grey goods). The printing processes employed include, but are not limited to, lithographic, gravure, screen, flexographic, digital, and letterpress. Establishments in this industry do not manufacture the stock that they print, but may perform postprinting activities, such as folding, cutting, or laminating the materials they print, and mailing. (NAICS 32311, Printing) This industry comprises establishments primarily engaged in performing prepress (e.g., platemaking, typesetting) and postpress services (e.g., book binding) in support of printing activities. (NAICS 32312, Support Activities for Printing) 3272 Glass and Glass Product Manufacturing This industry group comprises establishments primarily engaged in manufacturing glass and/or glass products. Establishments in this industry may manufacture glass and/or glass products by melting silica sand or cullet, or purchasing glass.
13-8 Wisconsin Economic Future Study
332 Fabricated Metal Product Manufacturing (Partial) Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining (used to shape individual pieces of metal), and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
3323 Architectural and structural metals manufacturing 3324 Boiler, tank, and shipping container manufacturing 3328 Coating, engraving, and heat treating metals 3329 Other fabricated metal product manufacturing
333 Machinery Manufacturing (Partial) Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining that are used to shape individual pieces of metal. Processes, such as welding and assembling, are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
3371 Household and institutional furniture manufacturing
This industry group comprises establishments manufacturing household-type furniture, such as living room, kitchen and bedroom furniture and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches. 3399 Other Miscellaneous Manufacturing
This industry group is primarily engaged in one or more of the following manufacturing activities: jewelry and silverware; sporting and athletic goods; doll, toy, and game; office supplies (except paper); signs; and/or all other miscellaneous. 484 Truck Transportation (Complete)
Industries in the Truck Transportation subsector provide over-the-road transportation of cargo using motor vehicles, such as trucks and tractor trailers. The subsector is subdivided into general freight trucking and specialized freight trucking. This distinction reflects differences in equipment used, type of load carried, scheduling, terminal, and other networking services. General freight transportation establishments handle a wide variety of general commodities, generally palletized, and transported in a container or van trailer. Specialized freight transportation is the transportation of cargo that, because of size, weight, shape, or other inherent characteristics, require specialized equipment for transportation.
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Each of these industry groups is further subdivided based on distance traveled. Local trucking establishments primarily carry goods within a single metropolitan area and its adjacent nonurban areas. Long-distance trucking establishments carry goods between metropolitan areas. The Specialized Freight Trucking industry group includes a separate industry for Used Household and Office Goods Moving. The household and office goods movers are separated because of the substantial network of establishments that has developed to deal with local and long-distance moving and the associated storage. In this area, the same establishment provides both local and long-distance services, while other specialized freight establishments generally limit their services to either local or long-distance hauling.
4841 Household and institutional furniture manufacturing 4842 Other furniture related product manufacturing
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13.3.2 Industry Clusters Industries contained within an industry cluster are related to driver industries in three ways: two supplier relationships and one consumer relationship. Supplier relationships are defined by the backward linkages that a driver industry has with either (1) other regional industries (regional suppliers) or (2) industries not located within the region (national supplier). Both types of supplier relationships are based on linkages identified using information from input-output tables from the IMPLAN model. For supplier relationships with other regional industries, the IMPLAN model is ‘regionalized’ to reflect the industries that exist within the region. For supplier relationships with industries not located within the region, the national IMPLAN model is used. For both types of supplier relationships, only the most significant supplier industries are listed. The significance of the supplier industry is based on the relative amount of the driver industry’s total outlay that is used to purchase goods or services from the supplier industry. In the case where supplier industries appear in the lists for both types of supplier industries, the specific industry is removed from the list of national supplier industries. Consumer industries are identified by reversing the relationship used to identify supplier industries. The consumer industries are those industries to which a driver industry sells a significant portion of its total output.
Figure 13-2 Industry Clusters
Local Consumer Industry
Driver
Industry
Regional Supplier Industry
National Supplier Industry
13-11 Wisconsin Economic Future Study
3114 Fruit and vegetable preserving and specialty Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 484 Truck transportation 42 Wholesale trade 1113 Fruit farming 3324 Metal can, box, and other metal container (light
gauge) manufacturing 42 Wholesale trade 55 Management of companies and enterprises 1112 Vegetable and melon farming 3114 Fruit and vegetable canning, pickling, and drying 3324 Metal can, box, and other metal container (light
and processing 55 Management of companies and enterprises 3114 Frozen food manufacturing 3114 Fruit and vegetable canning, pickling, and drying 1113 Fruit farming 484 Truck transportation 1111 Grain farming 3116 Poultry processing
Consumer Industries for Typical Regional Industry 3114 Fruit and vegetable canning, pickling, and
drying 722 Food services and drinking places 3121 Soft drink and ice manufacturing 622 Hospitals
13-12 Wisconsin Economic Future Study
3115 Dairy product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Dairy cattle and milk production 112 Dairy cattle and milk production 3115 Dry, condensed, and evaporated dairy product
manufacturing 3115 Cheese manufacturing
3115 Cheese manufacturing 3115 Fluid milk and butter manufacturing 484 Truck transportation 42 Wholesale trade 3115 Fluid milk and butter manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 42 Wholesale trade 484 Truck transportation 55 Management of companies and enterprises 3222 Paperboard container manufacturing
Consumer Industries for Typical Regional Industry 3115 Cheese manufacturing 3115 Dry, condensed, and evaporated dairy product
manufacturing 3115 Fluid milk and butter manufacturing 722 Food services and drinking places 622 Hospitals
3116 Animal slaughtering and processing
Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 112 Cattle ranching and farming 112 Cattle ranching and farming 112 Animal production, except cattle and poultry and
and processing 3116 Poultry processing 112 Poultry and egg production 484 Truck transportation 112 Animal production, except cattle and poultry and
eggs 3116 Animal (except poultry) slaughtering, rendering, and
processing 3116 Poultry processing
2211 Electric power generation, transmission, and distribution
55 Management of companies and enterprises
484 Truck transportation 42 Wholesale trade
Consumer Industries for Typical Regional Industry 3116 Animal (except poultry) slaughtering,
rendering, and processing 3116 Poultry processing 722 Food services and drinking places 622 Hospitals 3114 Fruit and vegetable canning, pickling, and
drying 623 Nursing and residential care facilities
13-13 Wisconsin Economic Future Study
3211 Sawmills and Wood Preservation Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 113 Logging 113 Logging 113 Forest nurseries, forest products, and timber tracts 113 Forest nurseries, forest products, and
timber tracts 3211 Sawmills and wood preservation 3211 Sawmills and wood preservation 1119 All other crop farming 1119 All other crop farming 484 Truck transportation 42 Wholesale trade 2211 Electric power generation, transmission, and
distribution 484 Truck transportation
42 Wholesale trade
Consumer Industries for Typical Regional Industry 3371 Nonupholstered wood household furniture
manufacturing 3219 Wood windows and doors and millwork 3211 Sawmills and wood preservation 3371 Wood kitchen cabinet and countertop
manufacturing 3212 Engineered wood member and truss
manufacturing
13-14 Wisconsin Economic Future Study
3219 Other wood product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3211 Sawmills and wood preservation 3211 Sawmills and wood preservation 484 Truck transportation 42 Wholesale trade 3219 Wood windows and doors and millwork 3219 Wood windows and doors and millwork 42 Wholesale trade 484 Truck transportation 113 Logging 55 Management of companies and
enterprises 482 Rail transportation 2211 Electric power generation, transmission, and
distribution
23 Maintenance and repair construction of nonresidential maintenance and repair
Consumer Industries for Typical Regional Industry 3219 Wood windows and doors and millwork 3371 Nonupholstered wood household furniture
manufacturing
13-15 Wisconsin Economic Future Study
3231 Printing and related support activities Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry
42 Wholesale trade 3221 Paper mills 2211 Electric power generation, transmission, and
distribution 42 Wholesale trade
522 Nondepository credit intermediation and related activities
3222 Coated and laminated paper, packaging paper and plastics film manufacturing
484 Truck transportation 3222 Sanitary paper product manufacturing 722 Food services and drinking places 55 Management of companies and enterprises 23 Maintenance and repair construction of
nonresidential maintenance and repair 3259 Printing ink manufacturing
52A Monetary authorities and depository credit intermediation
531 Real estate
531 Real estate 522 Nondepository credit intermediation and related activities
493 Warehousing and storage 3231 Printing 5614 Business support services 3231 Support activities for printing 517 Telecommunications 5413 Architectural, engineering, and related services 5617 Services to buildings and dwellings
Consumer Industries for Typical Regional Industry 55 Management of companies and enterprises 52A Monetary authorities and depository credit
intermediation 42 Wholesale trade 722 Food services and drinking places 522 Nondepository credit intermediation and
related activities 441 Retail - Motor vehicle and parts
13-16 Wisconsin Economic Future Study
3272 Glass and glass product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3272 Glass product manufacturing made of purchased
2211 Electric power generation, transmission, and distribution
3323 Plate work and fabricated structural product manufacturing
484 Truck transportation 493 Warehousing and storage 52A Monetary authorities and depository credit
intermediation 5614 Business support services
23 Maintenance and repair construction of nonresidential maintenance and repair
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
55 Management of companies and enterprises 448 Retail - Clothing and clothing accessories 3251 Alkalies and chlorine manufacturing 3312 Steel product manufacturing from purchased
steel 3113 Chocolate and confectionery manufacturing
from cacao beans 3344 Other electronic component manufacturing 3113 Nonchocolate confectionery manufacturing
Consumer Industries for Typical Regional Industry 3272 Glass product manufacturing made of
3323 Architectural and structural metals manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 52A Monetary authorities and depository credit
intermediation 2122 Iron ore mining
484 Truck transportation 1119 All other crop farming 2211 Electric power generation, transmission, and
distribution 3399 Office supplies (except paper) manufacturing
5614 Business support services 3241 All other petroleum and coal products manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3323 Plate work and fabricated structural product manufacturing
5412 Accounting, tax preparation, bookkeeping, and payroll services
517 Telecommunications 5411 Legal services 722 Food services and drinking places 5413 Architectural, engineering, and related services 522 Nondepository credit intermediation and related
activities
531 Real estate 5414 Specialized design services 482 Rail transportation
Consumer Industries for Typical Regional Industry 23 Construction of other new nonresidential
structures 23 Construction of new nonresidential
commercial and health care structures 3334 Air conditioning, refrigeration, and warm air
heating equipment manufacturing 3323 Plate work and fabricated structural product
manufacturing 3363 Motor vehicle parts manufacturing 23 Construction of other new residential
structures
13-18 Wisconsin Economic Future Study
3324 Boiler, tank, and shipping container manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 2211 Electric power generation, transmission, and
distribution 2122 Iron ore mining
3324 Metal can, box, and other metal container (light gauge) manufacturing
intermediation 3241 All other petroleum and coal products
manufacturing 3324 Power boiler and heat exchanger manufacturing 3323 Plate work and fabricated structural product
manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair
522 Nondepository credit intermediation and related activities
3329 Fabricated pipe and pipe fitting manufacturing
Consumer Industries for Typical Regional Industry 3121 Breweries 3334 Air conditioning, refrigeration, and warm air
heating equipment manufacturing 3115 Dry, condensed, and evaporated dairy
product manufacturing 3114 Fruit and vegetable canning, pickling, and
drying 3324 Metal can, box, and other metal container
(light gauge) manufacturing
13-19 Wisconsin Economic Future Study
3328 Coating, engraving, and heat treating metals Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 2211 Electric power generation, transmission, and
distribution 3313 Aluminum product manufacturing from
purchased aluminum 8123 Dry-cleaning and laundry services 2122 Iron ore mining 52A Monetary authorities and depository credit
intermediation 1119 All other crop farming
42 Wholesale trade 3399 Office supplies (except paper) manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3241 All other petroleum and coal products
manufacturing 484 Truck transportation 3323 Plate work and fabricated structural product
manufacturing 531 Real estate 722 Food services and drinking places 2212 Natural gas distribution 517 Telecommunications 522 Nondepository credit intermediation and related
activities
Consumer Industries for Typical Regional Industry 3121 Breweries 3334 Air conditioning, refrigeration, and warm air
heating equipment manufacturing
3331 Farm machinery and equipment manufacturing
3324 Power boiler and heat exchanger manufacturing
3323 Plate work and fabricated structural product manufacturing
3363 Motor vehicle parts manufacturing 484 Truck transportation
13-20 Wisconsin Economic Future Study
3329 Other fabricated metal product manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 2211 Electric power generation, transmission, and
distribution 2122 Iron ore mining
484 Truck transportation 1119 All other crop farming 52A Monetary authorities and depository credit
3329 Fabricated pipe and pipe fitting manufacturing 3241 All other petroleum and coal products manufacturing
23 Maintenance and repair construction of nonresidential maintenance and repair
3323 Plate work and fabricated structural product manufacturing
522 Nondepository credit intermediation and related activities
493 Warehousing and storage 531 Real estate 722 Food services and drinking places 523 Securities, commodity contracts, investments, and
related activities
517 Telecommunications
Consumer Industries for Typical Regional Industry 3324 Power boiler and heat exchanger
manufacturing 3329 Fabricated pipe and pipe fitting
manufacturing 3334 Air conditioning, refrigeration, and warm air
heating equipment manufacturing 3331 Farm machinery and equipment
manufacturing 23 Construction of other new nonresidential
structures 3323 Plate work and fabricated structural product
manufacturing
13-21 Wisconsin Economic Future Study
3331 Agriculture, construction, and mining machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 484 Truck transportation 3323 Plate work and fabricated structural product
manufacturing 52A Monetary authorities and depository credit
intermediation 3313 Aluminum product manufacturing from
purchased aluminum 23 Maintenance and repair construction of
nonresidential maintenance and repair 3326 Spring and wire product manufacturing
2211 Electric power generation, transmission, and distribution
3345 Watch, clock, and other measuring and controlling device manufacturing
55 Management of companies and enterprises 3345 Totalizing fluid meters and counting devices manufacturing
722 Food services and drinking places 3241 All other petroleum and coal products manufacturing
Consumer Industries for Typical Regional Industry 3331 Farm machinery and equipment
manufacturing 112 Dairy cattle and milk production
3332 Industrial machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 42 Wholesale trade 2122 Iron ore mining 5415 Custom computer programming services 3323 Plate work and fabricated structural product
manufacturing 484 Truck transportation 3313 Aluminum product manufacturing from
purchased aluminum 52A Monetary authorities and depository credit
intermediation 3326 Spring and wire product manufacturing
2211 Electric power generation, transmission, and distribution
3345 Watch, clock, and other measuring and controlling device manufacturing
55 Management of companies and enterprises 3345 Totalizing fluid meters and counting devices manufacturing
522 Nondepository credit intermediation and related activities
3241 All other petroleum and coal products manufacturing
531 Real estate 493 Warehousing and storage 517 Telecommunications 5411 Legal services 523 Securities, commodity contracts, investments, and
related activities
Consumer Industries for Typical Regional Industry
3261 Other plastics product manufacturing
3332 Plastics and rubber industry machinery manufacturing
3261 Plastics packaging materials and unlaminated film and sheet manufacturing
13-22 Wisconsin Economic Future Study
3334 Ventilation, heating, air-conditioning (HVAC), and commercial refrigeration equipment Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3334 Air conditioning, refrigeration, and warm air heating
equipment manufacturing 2122 Iron ore mining
42 Wholesale trade 3323 Plate work and fabricated structural product manufacturing
484 Truck transportation 3313 Aluminum product manufacturing from purchased aluminum
23 Maintenance and repair construction of nonresidential maintenance and repair
3326 Spring and wire product manufacturing
52A Monetary authorities and depository credit intermediation
3345 Watch, clock, and other measuring and controlling device manufacturing
2211 Electric power generation, transmission, and distribution
3345 Totalizing fluid meters and counting devices manufacturing
3241 All other petroleum and coal products manufacturing
Consumer Industries for Typical Regional Industry 3334 Air conditioning, refrigeration, and warm air heating
equipment manufacturing 23 Construction of new nonresidential commercial and
health care structures 23 Construction of other new residential structures
23 Construction of other new nonresidential structures 23 Maintenance and repair construction of
nonresidential maintenance and repair 23 Construction of new residential permanent site
single- and multi-family structures
13-23 Wisconsin Economic Future Study
3335 Metalworking machinery manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 5415 Custom computer programming services 2122 Iron ore mining 2211 Electric power generation, transmission, and
distribution 3323 Plate work and fabricated structural product
manufacturing 42 Wholesale trade 3313 Aluminum product manufacturing from
purchased aluminum 484 Truck transportation 3326 Spring and wire product manufacturing 52A Monetary authorities and depository credit
intermediation 3345 Watch, clock, and other measuring and
controlling device manufacturing 23 Maintenance and repair construction of
nonresidential maintenance and repair 3345 Totalizing fluid meters and counting devices
manufacturing 531 Real estate 3241 All other petroleum and coal products
manufacturing 493 Warehousing and storage 55 Management of companies and enterprises 522 Nondepository credit intermediation and related
activities
722 Food services and drinking places 517 Telecommunications 5412 Accounting, tax preparation, bookkeeping, and
payroll services
Consumer Industries for Typical Regional Industry
3335 Special tool, die, jig, and fixture manufacturing
3334 Air conditioning, refrigeration, and warm air heating equipment manufacturing
13-24 Wisconsin Economic Future Study
3371 Household and institutional furniture, and kitchen cabinet manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 3211 Sawmills and wood preservation 2122 Iron ore mining 484 Truck transportation 3342 Other communications equipment
3399 Other miscellaneous manufacturing Supplier Industries for Typical Regional Industry Supplier Industries for Typical National Industry 484 Truck transportation 42 Wholesale trade 42 Wholesale trade 3251 Petrochemical manufacturing 3231 Printing 3252 Plastics material and resin manufacturing 2211 Electric power generation, transmission, and
distribution 55 Management of companies and enterprises
52A Monetary authorities and depository credit intermediation
484 Truck transportation
531 Real estate 3261 Plastics packaging materials and unlaminated film and sheet manufacturing
5151 Radio and television broadcasting 3327 Machine shops 3211 Sawmills and wood preservation 531 Real estate 722 Food services and drinking places
Consumer Industries for Typical Regional Industry 42 Wholesale trade 55 Management of companies and enterprises 722 Food services and drinking places 52A Monetary authorities and depository credit
intermediation 3272 Glass product manufacturing made of
purchased glass 3399 All other miscellaneous manufacturing 8122 Death care services 3399 Broom, brush, and mop manufacturing
13-26 Wisconsin Economic Future Study
13.3.3 Top Firms1 by Driver Industry in the West Central II Region 3114 Fruit and vegetable preserving and specialty Company Name Industry Description Employment
Size County
Ocean Spray Cranberries Inc. Fruit and Vegetable Canning 100 - 249 Monroe 3115 Dairy product manufacturing
Company Name Industry Description Employment
Size County Great Lakes Cheese Cheese Manufacturing 250 - 499 La Crosse CO-OP Regions-Organic Creamery Butter Manufacturing 250 - 499 Vernon Associated Milk Producers Inc. Cheese Manufacturing 100 - 249 Trempealeau Whitehall Specialties Inc. Cheese Manufacturing 100 - 249 Trempealeau Foremost Farms USA Cheese Manufacturing 50 - 99 Jackson
Main Street Ingredients Dry, Condensed, and Evaporated Dairy Product Manufacturing 50 - 99 La Crosse
Westby Cooperative Creamery Creamery Butter Manufacturing 50 - 99 Vernon Swiss Valley Farms Cheese Manufacturing 20 - 49 La Crosse Foremost Farms USA Cheese Manufacturing 20 - 49 Monroe
3116 Animal slaughtering and processing Company Name Industry Description Employment
Size County Levis Creek Forest Products Sawmills 20 - 49 Jackson Koxlien Brothers Wood Products Sawmills 20 - 49 Trempealeau
1 Top firms are identified by an establishment's employment by each driver industry in the West Central II Region. Those establishments of companies having 20 employees or more are listed in the tables.
13-27 Wisconsin Economic Future Study
3219 Other wood product manufacturing
Company Name Industry Description Employment
Size County
Universal Forest Products Inc. Cut Stock, Resawing Lumber, and
Planing 50 - 99 Monroe
Westby Hardwood Products Other Millwork (including
Flooring) 50 - 99 Vernon
Hart Tie & Lumber Co. Other Millwork (including
Flooring) 20 - 49 Jackson
Beyer Cabinets LTD Other Millwork (including
Flooring) 20 - 49 La Crosse
Creative Laminates Inc. Other Millwork (including
Flooring) 20 - 49 La Crosse
Lake States Lumber Inc. Cut Stock, Resawing Lumber, and
Planing 20 - 49 Monroe MacDonald & Owen Lumber Co.
Cut Stock, Resawing Lumber, and Planing 20 - 49 Monroe
Pigeon Creek Hardwoods Other Millwork (including
Flooring) 20 - 49 Trempealeau 3231 Printing and related support activities
Company Name Industry Description Employment
Size County Empire Screen Printing Inc. Commercial Screen Printing 250 - 499 La Crosse DuraTech Industries Inc. Commercial Screen Printing 100 - 249 La Crosse Inland Label & Marketing Services Commercial Gravure Printing 100 - 249 La Crosse Mcloone Metal Graphics Commercial Gravure Printing 100 - 249 La Crosse Crescent Printing Co. Commercial Gravure Printing 50 - 99 La Crosse Inland Label & Marketing Services Commercial Gravure Printing 50 - 99 La Crosse LA Crosse Graphics Inc. Commercial Gravure Printing 50 - 99 La Crosse Flash 4 Commercial Gravure Printing 20 - 49 Jackson Creative Screen Print Inc. Commercial Screen Printing 20 - 49 La Crosse Northern Micrographics Inc. Commercial Gravure Printing 20 - 49 La Crosse Serigraphics Screen Print Inc. Commercial Screen Printing 20 - 49 La Crosse Arcadia News-Leader Commercial Gravure Printing 20 - 49 Trempealeau Supreme Graphics Commercial Gravure Printing 20 - 49 Trempealeau
13-28 Wisconsin Economic Future Study
3272 Glass and glass product manufacturing Company Name Industry Description Employment
Size County
Cardinal Ig Co. Glass Product Manufacturing Made of Purchased Glass
250 - 499 Monroe
3323 Architectural and structural metals manufacturing
Company Name Industry Description Employment
Size County Global Finishing Solutions LLC Sheet Metal Work Manufacturing 100 - 249 Trempealeau
LTC Fabricated Structural Metal
Manufacturing 50 - 99 La Crosse
Mid-City Steel Inc. Fabricated Structural Metal
Manufacturing 50 - 99 La Crosse
Ted Mannstedt & Son Fabricated Structural Metal
Manufacturing 20 - 49 La Crosse
CNH America Farm Machinery and Equipment
Manufacturing 20 - 49 Monroe 3324 Boiler, tank, and shipping container manufacturing
Company Name Industry Description Employment
Size County
Chart Energy & Chemicals Inc. Metal Tank (Heavy Gauge)
Manufacturing 250 - 499 La Crosse Crown Cork & Seal Co. Inc. Metal Can Manufacturing 100 - 249 La Crosse
3329 Other fabricated metal product manufacturing
Company Name Industry Description Employment
Size County
Northern Engraving Corp.
All Other Miscellaneous Fabricated Metal Product
Manufacturing 1000+ Monroe
D & S Manufacturing Co.
All Other Miscellaneous Fabricated Metal Product
Manufacturing 100 - 249 Jackson
13-29 Wisconsin Economic Future Study
3331 Agriculture, construction, and mining machinery manufacturing
Company Name Industry Description Employment
Size County
GEA Farm Technologies Inc. Farm Machinery and Equipment
Manufacturing 100 - 249 Trempealeau
Universal Truck Equipment Construction Machinery
Manufacturing 20 - 49 Trempealeau
Lowe Manufacturing Co. Inc. Mining Machinery and
Equipment Manufacturing 20 - 49 Vernon
CNH America Farm Machinery and Equipment
Manufacturing 20 - 49 Monroe 3332 Industrial machinery manufacturing
Company Name Industry Description Employment
Size County
Westphalia Surge Food Product Machinery
Manufacturing 100 - 249 Trempealeau
Norbco Industries Food Product Machinery
Manufacturing 20 - 49 Trempealeau
Laser Products Technologies Printing Machinery and
Equipment Manufacturing 20 - 49 La Crosse 3334 HVAC and commercial refrigeration equipment
Venture Machine & Tool Inc. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 50 - 99 La Crosse
PTM Inc. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 La Crosse
Stellar Mold & Tool Inc. Special Die and Tool, Die Set, Jig,
and Fixture Manufacturing 20 - 49 Trempealeau
13-30 Wisconsin Economic Future Study
3371 Household and institutional furniture and kitchen cabinet manufacturing
Company Name Industry Description Employment
Size County Ashley Furniture Industries Institutional Furniture Manufacturing 1000+ Trempealeau
WalzCraft Industries Wood Kitchen Cabinet and Countertop
Manufacturing 250 - 499 La Crosse
Handishop Industries Inc. Nonupholstered Wood Household
Furniture Manufacturing 100 - 249 Monroe Ashley Furniture Industries Institutional Furniture Manufacturing 100 - 249 Trempealeau Coulee Region Enterprises Inc.
Nonupholstered Wood Household Furniture Manufacturing 50 - 99 La Crosse
Norwinn Co. Institutional Furniture Manufacturing 20 - 49 Trempealeau 3399 Other miscellaneous manufacturing Company Name Industry Description Employment
Size County
ATK Onalaska Operations Sporting and Athletic Goods Manufacturing
100 - 249 La Crosse
Carroll Chair Co. All Other Miscellaneous Manufacturing
North American Trading Sporting and Athletic Goods Manufacturing
20 - 49 Trempealeau
Supreme School Supply All Other Miscellaneous Manufacturing
20 - 49 Trempealeau
Riverfront Inc. All Other Miscellaneous Manufacturing
20 - 49 Jackson
La Crosse Sign Co. Sign Manufacturing 20 - 49 La Crosse Olympus Media LLC Sign Manufacturing 20 - 49 La Crosse
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4841 General freight trucking
Company Name Industry Description Employment
Size County Millis Transfer Inc. General Freight Trucking, Local 250 - 499 Jackson Convenience Transportation LLC General Freight Trucking, Local 100 - 249 La Crosse Greenleaf Trucking Inc. General Freight Trucking, Local 50 - 99 Jackson Keene's Transfer Inc. General Freight Trucking, Local 50 - 99 Monroe Dunham Express General Freight Trucking, Local 20 - 49 La Crosse FedEx Ground General Freight Trucking, Local 20 - 49 La Crosse Piepho Moving & Storage Inc. General Freight Trucking, Local 20 - 49 La Crosse Straight Shot Express General Freight Trucking, Local 20 - 49 La Crosse
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4842 Specialized freight trucking
Company Name Industry Description Employment
Size County
Hot-Line Freight System Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 100 - 249 La Crosse
Holland Specialized Freight (except Used Goods) Trucking, Long-Distance 100 - 249 Monroe
Martin's Bulk Milk Service Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 100 - 249 Monroe
Earl Bonsack Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 50 - 99 La Crosse
Con-Way Freight Specialized Freight (except Used Goods) Trucking, Long-Distance 50 - 99 Monroe
Pehler & Sons Trucking Specialized Freight (except Used
Goods) Trucking, Local 50 - 99 Trempealeau
ABF Freight System Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 La Crosse
Jahn Transfer Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 La Crosse
R & L Carriers Inc.. Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 La Crosse
Dayton Freight Lines Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Don Hummer Trucking Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Dutch Mill Trucking Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Handy Enterprises Inc. Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Handy Logistics Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Tim Neubauer Trucking Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Vitran Express Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Monroe
Kelly Iverson Trucking Specialized Freight (except Used Goods) Trucking, Long-Distance 20 - 49 Trempealeau
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13.3.4 Detailed Employment, Gross Product, & Gross Product per Employee, West Central II Region Table 13-3 Employment in the West Central II Region’s Driver Industries, 2000-2011
Table 13-5 Labor Location Quotients* - West Central II Region's Driver Industries, 2003-2011
NAICS Title 2003 2008 2011 3114 Fruit and vegetable preserving and specialty 1.46 2.04 2.12 3115 Dairy product manufacturing 6.87 9.02 9.53 3116 Animal slaughtering and processing 1.44 1.82 2.00 3211 Sawmills and wood preservation 4.01 2.96 2.57 3219 Other wood product manufacturing 1.87 2.15 2.10 3231 Printing and related support activities 2.13 2.74 3.08 3272 Glass and glass product manufacturing 3.12 3.46 3.84 3323 Architectural and structural metals manufacturing 0.91 1.48 1.67 3324 Boiler, tank, and shipping container manufacturing 0.90 1.48 1.61 3328 Coating, engraving, and heat treating metals 0.95 1.61 1.82 3329 Other fabricated metal product manufacturing 0.68 2.13 2.06 3331 Agriculture, construction, and mining machinery manufacturing 2.83 3.23 3.12 3332 Industrial machinery manufacturing 2.30 2.48 2.53 3334 HVAC and commercial refrigeration equipment 11.93 12.33 12.64 3335 Metalworking machinery manufacturing 2.14 2.02 2.34 3371 Household and institutional furniture manufacturing 6.27 9.12 12.66 3399 Other miscellaneous manufacturing 1.52 2.08 2.48 4841 General freight trucking 2.71 2.80 2.85 4842 Specialized freight trucking 1.60 1.83 1.97
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit — in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
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Table 13-6 Gross Product in the West Central II Region's Driver Industries, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011
3114 Fruit and vegetable preserving and specialty $22,734,053 $18,122,894 $23,826,253 $23,268,770 $26,535,206 $30,183,290 $29,502,296
Table 13-8 Output Location Quotients* - West Central II Region's Driver Industries, 2003-2011 NAICS Title 2003 2008 2011 3114 Fruit and vegetable preserving and specialty 1.46 2.09 1.96 3115 Dairy product manufacturing 7.04 9.44 9.54 3116 Animal slaughtering and processing 1.18 1.51 1.58 3211 Sawmills and wood preservation 4.48 3.12 2.44 3219 Other wood product manufacturing 3.15 3.68 3.32 3231 Printing and related support activities 2.92 4.30 5.01 3272 Glass and glass product manufacturing 4.41 5.66 6.47 3323 Architectural and structural metals manufacturing 1.60 2.22 2.27 3324 Boiler, tank, and shipping container manufacturing 1.94 2.91 2.65 3328 Coating, engraving, and heat treating metals 1.51 2.27 2.21 3329 Other fabricated metal product manufacturing 1.06 3.28 2.68 3331 Agriculture, construction, and mining machinery manufacturing 2.36 2.34 2.27 3332 Industrial machinery manufacturing 3.73 3.67 4.28 3334 HVAC and commercial refrigeration equipment 18.56 20.33 19.47 3335 Metalworking machinery manufacturing 3.21 2.82 3.08 3371 Household and institutional furniture manufacturing 8.23 14.48 15.26 3399 Other miscellaneous manufacturing 2.06 2.24 2.21 4841 General freight trucking 4.36 4.68 5.04 4842 Specialized freight trucking 2.76 3.31 3.43
*The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit — in our case the national economy. A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region.
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Table 13-9 Productivity (Gross Product per Employee) of Driver Industries, West Central II Region, 2000-2011 NAICS Title 2000 2003 2007 2008 2009 2010 2011 3114 Fruit and vegetable preserving and specialty $66,280 $74,274 $76,122 $72,040 $81,647 $87,998 $87,544 3115 Dairy product manufacturing $87,628 $101,070 $98,171 $91,165 $103,920 $116,701 $115,981 3116 Animal slaughtering and processing $53,384 $59,240 $61,350 $54,634 $62,317 $69,320 $70,417 3211 Sawmills and wood preservation $47,906 $47,538 $45,970 $37,711 $40,640 $43,113 $45,421 3219 Other wood product manufacturing $60,679 $69,101 $65,636 $63,908 $68,683 $66,051 $67,116 3231 Printing and related support activities $46,420 $58,732 $63,741 $64,194 $64,601 $72,615 $76,278 3272 Glass and glass product manufacturing $67,731 $87,838 $73,718 $80,852 $104,992 $116,680 $117,258 3323 Architectural and structural metals manufacturing $91,188 $94,311 $86,099 $88,285 $99,365 $96,019 $96,405 3324 Boiler, tank, and shipping container manufacturing $128,477 $138,320 $140,320 $134,935 $142,850 $143,033 $138,509 3328 Coating, engraving, and heat treating metals $74,559 $72,667 $66,593 $68,207 $73,778 $75,797 $73,185 3329 Other fabricated metal product manufacturing $100,158 $99,528 $101,882 $100,162 $111,564 $113,256 $111,701 3331 Agriculture, construction, and mining machinery manufacturing $57,077 $57,638 $68,115 $66,475 $73,281 $78,726 $80,276 3332 Industrial machinery manufacturing $135,024 $125,173 $122,321 $114,363 $129,502 $150,305 $161,539 3334 HVAC and commercial refrigeration equipment $80,687 $96,545 $100,242 $102,190 $107,142 $116,172 $123,609 3335 Metalworking machinery manufacturing $95,640 $85,113 $87,519 $80,098 $86,060 $94,397 $95,367 3371 Household and institutional furniture manufacturing $41,051 $52,897 $56,024 $58,669 $49,335 $55,286 $58,631 3399 Other miscellaneous manufacturing $67,617 $75,969 $76,663 $76,258 $70,966 $74,873 $74,957 4841 General freight trucking $94,953 $107,241 $109,789 $106,785 $103,446 $117,247 $122,380 4842 Specialized freight trucking $103,790 $103,707 $108,991 $109,970 $108,308 $117,134 $120,406
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14 About the Study 14.1 Methodology 14.1.1 Detailed Methodology The methodology used to identify driver industries and their related industry clusters includes several components and brings together several different methodological approaches in order to develop an understanding of past and present performance of all regional industries. The approach used to identify driver industries (drivers) and their competitive industry clusters (clusters) combines proven methods of traditional regional economics with cutting-edge methods for understanding modern regional economies. This method of analysis has been used in numerous studies throughout the country.1 14.1.2 Defining Drivers and Clusters The methodology used includes two distinct phases: The first phase identifies a region’s driver industries and the second phase identifies the competitive industry clusters related to each driver industry. For the purposes of this analysis, the following definitions and/or concepts are used: 1. Drivers: drivers or driver industries are those “industries in which the region has its greatest competitive advantage.” (Hill & Brennan, 2000) These industries form the heart of the industry cluster. 2. Clusters: clusters or competitive industry clusters are a “geographic concentration of competitive firms or establishments in the same industry that have close buy-sell relationships with other industries in the region, use common technologies, or share a specialized labor pool that provides firms with a competitive advantage over the same industry in other places.” (Hill & Brennan, 2000). These concepts are depicted graphically in Figure 14-1.
1 For a detailed discussion of the methodology see “Hill, E., & Brennan, J. (2000). A Methodology for Identifying the Drivers of Industrial Clusters: The Foundation of Regional Competitive Advantage. Economic Development Quarterly, 14, 65-96.”
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Figure 14-1 Structure of a Cluster (from Hill & Brennan, 2000)
14.1.3 Variable Definitions The analysis used for identifying driver industries is based on the characteristics of each of the region’s 4-digit NAICS industries with at least 100 employees in 2011. For each 4-digit industry, a diverse set of 12 variables is used to characterize the individual industry. Each of the variables is an indicator of the past or present economic performance of the industry. The 12 variables are divided into two groups and include: A. Measures of Competitiveness
● Productivity 1. Total worker productivity (output per worker, 2011) 2. Change in worker productivity (output per worker, 2009-2011)
● Share of national industry output 3. Current regional share of national industry output (2011) 4. Change in the industry’s share of national output (2008-2011)
● Relative average earnings 5. Industry’s current relative earnings (2011)
(i.e., regional industry relative to national industry) 6. Change in industry’s relative earnings (2009-2011) 7. Industry’s current regional relative earnings (2011) (i.e., regional industry relative to all regional industries)
B. Measures of export orientation and regional centrality ● Output specialization
Customer Industries (sell)
Driver Industries Technology Labor
Supplier Industries (buy)
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8. Current output location quotient (2011)2 9. Change in output location quotient (2008-2011)
● Employment specialization 10. Current employment location quotient (2011)
● Centrality 11. Industry’s current share of total regional output (2011) 12. Change in industry’s share of total regional output (2008-2011)
14.1.4 Identifying Driver Industries Regional driver industries are identified using two separate quantitative analyses: a mathematical clusters analysis and a discriminant analysis. The mathematical clusters analysis groups various industries together; however, it does not provide insight into why the industries are grouped together. This insight is provided by discriminant analysis, which provides statistical measures that can be interpreted for the grouping of industries based on economic factors identified by the analysis. 14.1.5 Mathematical Cluster Analysis A mathematical or hierarchical cluster analysis groups similar industries together based on the 12 variables previously described. This analysis is used to identify “candidate solutions” of the total number of industry groups in the regional economy. The number of industry groups in the candidate solution is then used in the discriminant analysis. Since this analysis is mathematical and not statistical, the grouping of industries is made based on the relative value of each variable for each industry and/or group of industries and not on the distribution or variances of the variables across industries. Initially, the total number of groups is equal to the number of 4-digit NAICS industries with more than 100 employees in 2011. At each stage of the analysis, two groups are combined to form a new group. The algorithm used to combine each group selects the two groups to be combined based on the relative homogeneity of the two groups. During the first stage of the analysis, the two industries with the most similar characteristics, as defined by the 12 variables, are grouped
2 The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit – in our case the national economy. The formula for Current Output Location Quotient is:
A location quotient greater than one suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than one suggests an industry is not concentrated in the region. The concentration of an industry in a region suggests that the industry is an exporter, while the lack of concentration of an industry suggests that the existing industry produces primarily for local consumption and/or that the region must import products produced by the industry.
together. The analysis continues to combine industries or groups of industries until all industries are contained in a single group. At each stage of the analysis, a “distance coefficient” is calculated. The distance coefficient measures the differences between the two industry groups that are combined at each stage.3 The distance coefficients for all stages of the analysis are contained in an agglomeration schedule, which also identifies which industries or groups of industries are combined at each stage. Since the distance coefficient is a measure of differences or dissimilarity between industries or groups of industries, it is used to identify the stages at which two heterogeneous groups of industries are combined. Ultimately, the objective of the mathematical clusters analysis is to identify candidate solutions that can then be used in the discriminant analysis. A candidate solution is characterized as being a case in which all industries are combined into 20 or fewer groups that are relatively homogeneous. The candidate solutions are determined by identifying significant changes in the distance coefficient. To make this determination, two additional variables are calculated for each stage of the analysis, the slope and acceleration of the distance coefficient. These two variables are evaluated to determine the stages at which heterogeneous groups of industries are combined. Using percentiles to determine threshold values for both the slope and acceleration variables, significant changes in the distance coefficient are identified. The candidate solution is the stage prior to the stage at which heterogeneous groups are combined. From this analysis, three candidate solutions are selected and used in the discriminant analysis. Each of these candidate solutions has fewer than 20 groups of industries and at least two have more than five groups of industries. 14.1.6 Discriminant Analysis Unlike the mathematical clusters analysis, the discriminant analysis provides statistical measures that can be interpreted further. The results generated from the analysis allow each of the industry groups to be described statistically and the groups of industries to be interpreted in economic terms. The discriminant analysis is used to predict the industry group in which each of the 4-digit NAICS industries belongs based on the characteristics of the 12 variables used in the analysis. The total number of groups used in the analysis is determined by the three candidate solutions described previously. The basis for assigning industries to any particular group is through the use of discriminant functions that are calculated from statistical relationships in the entire dataset (all industries and all variables). The functions are generated in order to ensure the greatest discrimination between each group of industries or, in other words, to ensure heterogeneity across groups and homogeneity within groups. 3 The distance coefficient measures the difference in the values of the twelve variables for each of the two industries or groups of industries combined at each stage. The distance measure used is the squared Euclidean distance or sum of the squared difference between the values for each group.
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The first step in interpreting the results of the discriminant analysis is to compare the groupings of industries obtained from the mathematical cluster analysis with that obtained from the discriminant analysis. The two analyses should result in the vast majority of industries being included in the same group as the other analysis determined. The second step in interpreting the results from the discriminant analysis is to describe, in economic terms, the characteristics of each discriminant function. For each discriminant analysis, numerous discriminant functions are generated. Each of these functions “explains” why industries are grouped together by identifying the function’s correlation with each of the 12 variables used in the analysis. The following are examples of possible discriminant function characteristics:
● Function 1 is correlated with: 1. Large share of national industry output 2. Increasing share of national industry output 3. Large output location quotient 4. Increasing output location quotient 5. Large labor location quotient
● Function 2 is correlated with:
1. Increasing productivity 2. High productivity
●Function 3 is correlated with:
1. Decreasing real earnings 2. High real earnings
In this case, the set of correlations identified in Function 1 suggest that the function identifies (or groups together) industries that are important to the region’s economic base (e.g., driver industries). The set of correlations identified by Function 2 may also be important for identifying economic base (driver) industries, but, by themselves, measures of high and increasing productivity do not necessarily mean that the industries grouped together by this function are actually driver industries (e.g., small industries can be very productive but may not be large enough to make an impact on [or drive] the region’s economy). The correlations listed under Function 3 provide mixed interpretations and could not be used, by themselves, for interpreting groups of industries. The final step in interpreting the results from the discriminant analysis is to identify the relationships between each discriminant function and each group of industries. Since Function 1 was interpreted as grouping together driver industries, each group of industries that has a positive and significant relationship (based on a z-score) with Function 1 potentially contains driver industries. If an industry group has a negative and significant relationship with Function 1, then the industries in that group would not be driver industries. For each of the industry groups, the relationships with each of the discriminant functions must be evaluated in order to fully understand why the industries were grouped together. For example, if an industry group has a positive and significant relationship to Function 1, but also has a positive and significant relationship with a function that is interpreted as grouping
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together industries that are retiring or declining, then the industries in that group are most likely driver industries that are declining or retiring. 14.1.7 Filtering and Refining Driver Industries The driver industries identified by the discriminant analysis are filtered and refined through a continual process. First, preliminary driver industries were filtered based on face validity. If there was an industry that happened to co-vary and be grouped with the cluster identified as industries of the regional economic base but the industry by its nature was not a driver, this industry was excluded from the group. Second, preliminary drivers were further scrutinized based on a detailed review of economic data for each of the driver industries. 14.1.8 Identifying Industry Clusters The second phase of the driver industry and industry cluster analysis identifies the cluster of industries that are closely related to each of the driver industries. As defined previously and depicted graphically in Figure 14-2, the competitive industry clusters are made up of industries that have close buy-sell relationships with driver industries, use common technologies, or share a specialized labor force. Industries having close buy-sell relationships are identified using the backward (supply-chain) and forward (customer-chain) linkages contained within regionalized input/output tables.4 Industries that exhibit strong relationships to driver industries are then categorized as being part of the industry cluster. The backward or supply-chain linkages identify the buy relationship of the driver industry with other industries. These linkages are referred to as “supplier” industries because they provide inputs (goods or services) that allow the driver industry to get its product to its consumers. The backward linkages are measured as a percent of the driver industry’s total outlays. If a driver industry spends a large percent of its total outlay on an industry, then that industry is considered to be a significant supplier industry. For the current analysis, two types of supplier industries are identified: one is based on a regional industry model and the other is based on a national industry model. The difference between the two types of models is in the types of industries that are included in the model. While the national model includes all industries that could be potential supplier industries, the regional model only includes those industries that actually operate within the region. If an industry does not exist in the local economy, then it must be that the driver industry imports inputs from outside of the region.
4 The input/output tables used are from the current IMPLAN model from the Minnesota IMPLAN Group, Inc and are based on data from 2002 (the most currently available data).
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Figure 14-2 Three Components of an Industry Cluster
The forward or customer-chain linkages identify industries to which the driver industry sells its products. The forward linkages are based on the percent of total output that a driver industry sells to other regional industries. If a driver industry sells a large percent of its total output to an industry, then that industry is considered to be a significant consumer industry. The forward linkages are identified using a regional model only. 14.1.9 Special Classifications for Industry Clusters Due to inconsistencies in the industry classifications used by the various data sources, several steps had to be taken to ensure industry information was not duplicated or misrepresented in the presentation of the results from the industry clusters analysis. Because of the inconsistencies of the industry classifications, bridge tables were created to force the lists of industries from the clusters analysis to be consistent with other data used throughout the study. The data used for the driver analyses were based on standard 4-digit NAICS industries. However, the national input-output tables produced by the Bureau of Economic Analysis and used to create the regional input-output tables in the IMPLAN model do not use standard 4-digit NAICS industries. Therefore, the data used for the cluster analysis were based on a mix of 2-digit, 3-digit, 4-digit, and 6-digit NAICS industries. These inconsistencies created two types of issues that needed to be addressed. First, some of the information used in the cluster analysis was at a greater level of industry detail than the 4-digit NAICS level. In this case, weighted averages of the input-output
NATIONAL SUPPLIER INDUSTRY
REGIONAL SUPPLIER INDUSTRY
DRIVER INDUSTRY
REGIONAL CONSUMER INDUSTRY
Buy Relationship Sell Relationship
Buy Relationship
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coefficients were used to calculate coefficients that were consistent with the 4-digit NAICS industries. Each industry’s value of output was used as the weight in these calculations. Second, some of the information used in the cluster analysis was at a lower level of industry detail. In this case, the 4-digit NAICS codes could not be used. Rather, industries were listed at the greatest level of detail that was available. To ensure that these cases could be identified, the NAICS codes were modified using an “*.” For example, at the 4-digit level there are 19 separate industries engaged in wholesale trade (NAICS 42##). The IMPLAN data, however, only includes the 2-digit industry for wholesale trade (NAICS 42). In this case, the cluster industry is simply presented as “NAICS 42*: Wholesale Trade.” Another example is the case of truck transportation in which only the 3-digit industry is available. In this case the cluster industry is presented as “NAICS 484*: Truck Transportation.” 14.1.10 Prioritizing Industries in the Industry Clusters Since most industries purchase inputs from a large number of other industries, the cluster analysis prioritizes supplier industries based on the percent of the driver industries’ total outlays that go to each supplier industry. To identify state and national suppliers that are critical to each industry, we looked at the supplier industries that contribute at least 3% as a total supply to the industry from all purchases made locally (both within the state and the United States generally). This criteria differs from the one used in the previous study on Wisconsin manufacturing (2004) where the list of state (and regional) supplier industries was limited to a rule of 5% contribution and the national supply chain was complemented by the list of the top 10 supply industries. We also abandoned the previous practice of omitting some specific industries that were considered as those that provide general services. With growing importance of distributed electricity generation and business management strategies, we believe it is important to show the list of all industries that are critical suppliers and contribute at least 3% of the total local purchases. 14.1.11 Identifying Firms Firms are identified for driver industries using Wisconsin’s WORKnet online database (http://worknet.wisconsin.gov), Wisconsin’s Workforce and Labor Market Information System. These data are based on the Quarterly Census of Employment and Wages. These data present 2011-current employment information as defined in the North American Industry Classification System (NAICS) for establishments. The data pertain to workers covered by Wisconsin Unemployment Insurance (UI) laws and Federal civilian workers covered by the Unemployment Compensation for Federal Employees (UCFE) program. The information for both private and public sector workers are reported to the Bureau of Labor Statistics (BLS) by the Department of Workforce Development (DWD) as part of the Quarterly Census of Employment and Wages (QCEW), or ES-202, program. From this database we included establishments in the state with 20 or more employees. In order to categorize firms by their 4-digit NAICS industry, each firm’s primary (6-digit NAICS) industry was converted to a 4-digit NAICS code. Based on these codes, individual firms were matched to the lists of driver industries.
This database has certain limitations. First, although the database includes most establishments currently in operation, it may not include every establishment. Jobs that are exempt or not covered by Unemployment Insurance law are not included in tabulations. The data reported on WORKnet may not match the information posted by the Bureau of Labor Statistics (BLS) as the BLS continues to process the data after they are published on WORKnet.5 Second, the name used to identify certain local firms may be different from that used locally. For example, some branch plants may have company names that are unique to the local plant, but in WORKnet Online the name of the parent firm may be used to identify the plant. Finally, the database shows only a range of employment for each establishment. The database also omits any description of company’s products, either overall or as they relate to a specific establishment. 14.1.12 Data Sources for Driver and Cluster Analysis Employment, Gross Product, and Wage & Salary Source: Economy.com, March 2012. Extract of data purchased by Cleveland State University from Moody’s Economy.com
These data include information from: Bureau of Labor Statistics, Bureau of Economic Analysis, U.S. Census Bureau, and Economy.com Industry Services.
Input/Output Tables Source: Minnesota IMPLAN Group, Inc. 2012. “IMPLAN System (data and software).” Firm level data Source: WORKnet Online, 2013. http://worknet.wisconsin.gov Industry Definitions Source: U.S. Census Bureau, “North American Industry Classification System (NAICS).” Exports Source: Foreign Trade Division, U.S. Census Bureau, data retrieved July 2012. 14.2 Glossary of Technical Terms Assignee of a patent: The person(s) or corporate body to whom all or limited rights under a patent are legally transferred. Assignment transfer of all or limited rights under a patent. (Source: Thompson Delphion, Glossary. See http://www.delphion.com/help/glossary) BEA: Bureau of Economic Analysis, U.S. Department of Commerce.
5 More information about the source database is provided at http://worknet.wisconsin.gov/worknet/progdesc_short.aspx
Center for Economic Development: Housed at the Maxine Goodman Levin College of Urban Affairs, Cleveland State University. It is a think tank that provides research and technical assistance to government agencies, nonprofit organizations, and private industry at the regional, state, and national levels. The Center conducts research in economic development strategy and policy, economics of cities and regions, industry clusters and innovation, and has an expertise in conducting economic impact analyses. Cluster or Competitive Industry Cluster: “Geographic concentrations of competitive firms or establishments in the same industry that have close buy-sell relationships with other industries in the region, use common technologies, or share a specialized labor pool that provides firms with a competitive advantage over the same industry in other places. . . . The complete cluster consists of suppliers, the driver industry that produces the finished product, and the customer or consumer of that product or service” (Hill, E., & Brennan, J., 2000. A Methodology for identifying the Drivers of Industrial Clusters: The Foundation of Regional Competitive Advantage. Economic Development Quarterly, 14, 65-96). Compound Annual Growth Rate (CAGR) : An average annual growth rate over a specified period of time. It is calculated as: CAGR = (present value / base value)(1 / n umber of years) - 1 Consumer Industries: Industries to which the driver industry sells its product. If a driver industry sells a large percentage of its total output to an industry, then that industry is considered to be a significant consumer industry. The forward or customer-chain linkages identify consumer industries. (Hill & Brennan, 2000. See Methodology) Driver Industries: Those “industries in which the region has its greatest competitive advantage” (Hill & Brennan, 2000). These industries form the heart of the industry cluster. Economic Base Industry: An industry in which firms produce output for export. Since exports bring monies in from places outside of the region, these types of industries generally “drive” regional economic growth. Educational Attainment: Data derived from Steven Ruggles, J. Trent Alexander, Katie Genadek, Ronald Goeken, Matthew B. Schroeder, and Matthew Sobek. Integrated Public Use Microdata Series: Version 5.0 [Machine-readable database]. Minneapolis: University of Minnesota, 2010. Employment (Moody’s Economy.com): Moody’s Economy.com estimates employment starting with the Current Employment Survey (CES) and the Quarterly Census of Employment and Wages (QCEW) produced by the U.S. Bureau of Labor Statistics (BLS). Employment data are provided in thousands of people with three decimal places. See employed persons for detailed definition. Employed persons: “Persons 16 years and over in the civilian noninstitutional population who, during the reference week, (a) did any work at all (at least one hour) as paid employees; worked in their own business, profession, or on their own farm, or worked 15 hours or more as unpaid workers in an enterprise operated by a member of the family; and (b) all those who were not working but who had jobs or businesses from which they were temporarily absent because of vacation, illness, bad weather, childcare problems, maternity or paternity leave, labor-
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management dispute, job training, or other family or personal reasons, whether or not they were paid for the time off or were seeking other jobs. Each employed person is counted only once, even if he or she holds more than one job. Excluded are persons whose only activity consisted of work around their own house (painting, repairing, or own home housework) or volunteer work for religious, charitable, and other organizations” (U.S. Department of Labor, Bureau of Labor Statistics, Glossary. See Moody’s Economy.com). GED (General Education Development): GED holders are categorized as “High School Graduate or Equivalent” (U.S. Department of Commerce, Bureau of Census). Gross Product or Output: “The market value-added of goods and services produced in a region. The term value-added indicates that output is final sales in a given sector less the value of intermediate goods and services purchased to facilitate the production. Market value-added indicates that actual market prices of the goods or services are used to value output in each sector” (Moody’s Economy.com, Database Documentation). Gross State Product (GSP) and Gross Domestic Product (GDP) by state: “A measurement of a state's output; it is the sum of value added from all industries in the state. GDP by state is the state counterpart to the nation's gross domestic product” (U. S. Department of Commerce, Bureau of Economic Analysis, Glossary. See www.bea.gov/glossary/glossary.cfm). IPC: International Patent Classification codes provide “a hierarchical system of language independent symbols for the classification of patents and utility models according to the different areas of technology to which they pertain” (World Intellectual Property Organization. See http://www.wipo.int/classifications/ipc/en/). IMPLAN. “A complete economic assessment package including data, software, and an external hard drive, providing economic resolution from the national level down to the ZIP code level” (MIG Inc.). IMPLAN is a microcomputer-based input-output modeling system. With IMPLAN, one can estimate input-output (I-O) models of up to 440 sectors for any region consisting of one or more counties. IMPLAN includes procedures for generating multipliers and estimating impacts by applying final demand changes to the model. The current version of IMPLAN is IMPLAN Pro 3.0 (http://implan.com). Location Quotient: The location quotient (LQ) technique is the calculated ratio between the local economy and the economy of some reference unit — in our case the national economy. The formula for Current Output Location Quotient is:
A location quotient greater than 1 suggests that there is a concentration or specialization of an industry within a region, while a location quotient less than 1 suggests an industry is not concentrated in the region. The concentration of an industry in a region suggests that the industry is an exporter, while the lack of concentration of an industry suggests that the existing
industry produces primarily for local consumption and/or that the region must import products produced by the industry. The MPI Group, Inc. (MPI) : Based in Cleveland, Ohio, MPI is a research organization that offers access to the best information available on strategy and operation performance as well as a staff who knows what to do with that intelligence. MPI’s customized products are designed for organizations, associations, and economic regions facing critical issues. MSA: Metropolitan Statistical Area NAICS: North American Industrial Classification System code, replacing the Standard Industrial Classification (SIC) code. Patent Application: “A document submitted by an inventor to request he be issued a patent. It consists of the elements of a patent but will likely be modified during patent prosecution” (Thompson Delphion, Glossary. See http://www.delphion.com/help/glossary). Patent: “A document issued by the Patent Office that purports to give an inventor the exclusive right to make, use, and sell an invention as specified in the claims of that patent. A patent, which is the mature form of a patent application, consists of drawings of the invention, a specification explaining it, and claims which define the scope of exclusivity” (Thompson Delphion, Glossary. See http://www.delphion.com/help/glossary). Productivity: In this report, productivity is estimated as gross product per employee. For the calculation of productivity, the Moody’s Economy.com data of gross product (or output) and employment were used. Supplier Industries: Supplier industries provide inputs (goods or services) that allow the driver industry to get its product to its consumers. The backward or supply-chain linkages identify the buy relationship of the driver industry with supplier industries (Hill & Brennan, 2000. See Methodology). 14.3 About the Authors John R. Brandt John R. Brandt, CEO and founder of The MPI Group, has devoted more than two decades to studying leadership in effective, purpose-driven organizations. An expert on how companies can adapt themselves to the realities of new markets, new corporate structures, and new customer expectations, Brandt is an accomplished management innovator and an internationally recognized expert on manufacturing and technology. Before founding The MPI Group in 2003, Brandt followed a unique career path combining two decades of experience in marketing, management, and consulting with a passion for journalism that has earned him more than 20 awards for reporting, writing, and editing. He was publisher and editor-in-chief of IndustryWeek (IW) magazine, which garnered more than 70 editorial awards for excellence and doubled its revenues under his leadership. While at IW, Brandt led
the development of several pioneering research efforts, including the IW Value Chain Survey, the World-Class Communities Project, the IndustryWeek 1000, the World’s Best Managed Companies Program, and the IW Census of Manufacturers, which was later co-managed by The MPI Group. Additionally, Brandt served as president, publisher, and editorial director of the Chief Executive Group, publisher of Chief Executive, where his leadership transformed the magazine into one of publishing’s most surprising comebacks. A frequent lecturer around the globe on topics ranging from leadership and customer value to management best practices and building world-class communities, Brandt’s access to and relationships with leading executive teams gives him a unique perspective on how organizations can reinvent themselves through the application of proven management best practices. In both his speech presentations and advisory activities, Brandt combines these assets with his wit, research, and insights to help organizations position themselves for long-term profitability. A recipient of a prestigious Neal Award in 1998, Brandt has also served as a Neal Awards judge. He has also served as a member of the Manufacturing Extension Partnership National Advisory Board, judge for the National Association of Manufacturers Awards for Workforce Excellence, director of the Manufacturing Advocacy & Growth Network (MAGNET), co-chair of the Northeast Ohio Product Innovation Initiative, advisory board member of both SupplierInsight.com and Ken-Tool Manufacturing, director of the Work in Northeast Ohio Council, and director and president of The Press Club of Cleveland. Brandt is a Phi Beta Kappa graduate of Case Western Reserve University, where he received the James Dysart Magee Award in Economics. George Taninecz As vice president of research for The MPI Group, George Taninecz applies more than 20 years of experience in studying manufacturing and management to develop the research tools that enable organizations to assess their performances, gauge best practices, and define road maps for success. He also oversees the creation of thought-provoking white papers and reports that clearly outline research findings, industry trends, and areas of opportunity. Prior to joining The MPI Group in 2003, Taninecz worked at McKinsey & Company as a knowledge developer and communications specialist for the firm’s manufacturing practice. Taninecz’s background also includes a decade as a journalist covering best practices, strategy, and management for IndustryWeek (IW) magazine. During his tenure as the magazine’s managing editor, he was a director for the America's Best Plants program and launched numerous research initiatives for the magazine, including the IW Value Chain Survey and the IW Census of Manufacturers. Taninecz also works independently with the Lean Enterprise Institute (LEI) to develop books and workbooks about lean manufacturing. Edward W. (Ned) Hill, PhD Edward W. (Ned) Hill is dean and professor of economic development at the Maxine Goodman Levin College of Urban Affairs; Nonresident Senior Fellow of The Brookings Institution, where he is affiliated with the Metropolitan Policy Program; and Nonresident Visiting Fellow at the Institute of Politics at the University of California, Berkeley, through his membership in the MacArthur Foundation's Research Network on Building Resilient Regions. Ned was named an
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adjunct professor of public administration at the South China University of Technology in Guangzhou in December 2011. Hill chaired the Advisory Board of the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP) from 2007 to 2010, where he remains a member of the advisory board. Hill is also a member of the board of directors of MAGNET, the MEP affiliate organization in Northeast Ohio. The Ohio Manufactures Association presented Hill with its Legacy Award in 2005 for his work leading to business tax reform. Ohio Department of Development director Christine Schmenk appointed Hill to Ohio’s Manufacturing Task Force; he has been a member of Ohio’s Cooperative Education Advisory Council since 2009. Hill was a speaker at the first meeting of Pennsylvania’s Manufacturing Advisory Council in January of this year. Hill and the Levin College’s Center for Economic Development have engaged in research related to manufacturing in Ohio, Pennsylvania, and Wisconsin. Ned writes on economic development and urban public policy and edited Economic Development Quarterly from 1994 to 2005. Iryna V. Lendel, PhD Dr. Iryna Lendel is the assistant director of the Center for Economic Development at the Maxine Goodman Levin College of Urban Affairs at Cleveland State University. Dr. Lendel is an economist with vast experience conducting academic and applied research and analyzing regional and industry economic development. Her research portfolio includes projects on industrial analysis, including high-tech industries, the oil and gas industry, steel industry, and re-emerging optics industry; technology-based economic development; and ecology of innovation. She also writes on economic impact and the role of universities in regional economies. Dr. Lendel conducts research in energy policy and is affiliated with the Center for Energy Policy and Applications. Dr. Lendel was a principal co-investigator on a project assessing the economic impact of the Utica Shale development on the state of Ohio. Dr. Lendel has been a consultant to the World Bank and Research Triangle Institute and now works with CRDF Global’s Technology Entrepreneurship Program. She is an assistant editor of Economic Development Quarterly and a guest blogger at Crain’s Ohio Energy Report. Dr. Lendel earned her master's degree with honors from Ivano-Frankivsk Institute of Oil and Gas (Ukraine). After graduating from the Moscow Academy of Oil and Gas's post-graduate course, she earned her PhD in economics at the Lviv Regional Institute of Ukrainian Academy of Science. She earned a second PhD in urban studies from the Levin College of Urban Affairs with a concentration in economic development. Dr. Lendel was named a Fulbright New Century Scholar for 2009-2010. Other contributors Merissa Piazza is a research associate at the Center for Economic Development in the Maxine Goodman Levin College of Urban Affairs, Cleveland State University. She contributed to the Wisconsin macroeconomic and benchmarking analysis sections.
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Charlie Post is a project manager and research associate in the Maxine Goodman Levin College of Urban Affairs at Cleveland State University. He contributed to the workforce analysis. Chang-Sik Song is a graduate research assistant at the Center for Economic Development. He contributed to the innovation analysis. Joe Andre is a graduate research assistant at the Center for Economic Development. He contributed to the regional analyses of companies. Sunjoo Park is a graduate research assistant at the Center for Economic Development. She contributed to conduct the analysis of export industries. Eunkyu Lee is a graduate research assistant at the Center for Economic Development. He contributed to the innovation analysis. Bob Pope is a research analyst at the Wisconsin Economic Development Corporation. He reviewed the report and contributed to the driver industry challenges and educational attainment sections.
