TUE AM News: State manufacturing employment expected to decline through 2027; McFarland suing insurance company for nearly $1M

March 26, 2024

— The state’s manufacturing workforce is expected to shrink in the coming years in line with national trends, according to the latest Department of Revenue economic forecast.

Based on the latest revisions to employment data, Wisconsin manufacturing employment fell by 0.5% in 2023, the DOR report shows. The agency expects this sector’s total employment to continue declining through 2027, following a national trend of declining manufacturing jobs.

Manufacturing has been the second-largest employment sector in the state since it was surpassed by the trade, transportation and utilities sector in 2001. But under the latest forecast, it’s expected to fall behind health and education services this year, making it the state’s third-largest employment sector.

Across all sectors, state employment grew 1.4% last year and is expected to increase by another 0.7% in 2024, the report shows.

“The last quarter of 2023 showed stronger growth than expected, suggesting that tight labor markets will persist into 2024,” report authors wrote. “The forecast still expects a period of slow growth to bring down inflation to the Fed’s desired range, but it will not materialize until late 2024 and 2025.”

Eight private employment sectors had exceeded pre-pandemic levels by the end of 2023, with only the leisure and hospitality services and other services sectors remaining below pre-pandemic levels, according to DOR. Still, the agency notes leisure and hospitality is only 0.7% below the previous peak.

Meanwhile, DOR predicts state nominal personal income will have grown 4.1% in 2023 and will see another 4.1% growth this year. When adjusted for inflation, real personal income growth is expected to have been flat in 2023 and to rise 2% this year “as inflation moderates.”

See the full report.

— The village of McFarland is suing the Hanover Insurance Company for nearly $1 million, alleging the insurer failed to pay the full claim for property damage that occurred last year.

The lawsuit, filed in Dane County Circuit Court, targets the subsidiary of the Massachusetts-based Hanover Insurance Group. After the company issued a builder’s risk policy for the McFarland Public Safety Center, it then allegedly refused to pay the full claim for nearly $1.68 million after a sinkhole collapsed under part of the nearly completed structure, according to the village’s release.

After the sinkhole collapsed in March 2023, the company initially denied the claim and eventually moved to pay the village less than $700,000, the release shows. The company also allegedly delayed claim settlement and didn’t make any payment for more than 11 months.

The village says those actions “were made in bad faith, relying on an unreasonable interpretation of the policy’s language which disregards express coverage for damage caused by a sinkhole collapse.” The lawsuit seeks nearly $975,000 as well as interest on the delayed partial payment and remaining balance, along with punitive damages.

Hanover Insurance Group did not immediately respond to requests for comment on the lawsuit.

Village Administrator Matt Schuenke says the local Board of Trustees aims to ensure the insurance company is held accountable to its obligations.

“The extra costs to repair the sinkhole were necessary so that the facility would be structurally sound and could be occupied by our public safety services and the public,” he said in a statement.

See the village’s release.

— Realta Fusion, a Madison-based startup, has been selected to join the Compute for Climate Fellowship’s latest cohort.

This global program supports entrepreneurs applying advanced cloud computing and artificial intelligence to create new solutions that address the climate crisis. It was formed as a partnership between the International Research Centre on Artificial Intelligence and Amazon Web Services.

As part of the program, Realta Fusion aims to develop a virtual plasma stability simulation to support the broader fusion technology industry, according to the announcement.

“The Compute for Climate Fellowship is a testament to the power of collaboration and innovation between research, industry, and startups in addressing climate change,” IRCAI Chief Operating Officer Davor Orlic said in a statement. “We are inspired by the ingenuity and dedication of the winners and look forward to seeing their projects come to fruition.”

See more at Madison Startups.

Top headlines from the Health Care Report…

— The Madison-based Usona Institute has launched a new clinical trial exploring the use of a “magic mushroom” derivative for clinical depression.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

Sign up here.

— The Wisconsin Department of Tourism and WEDC are partnering on their first-ever national ad buy during this season’s “Top Chef,” which was filmed in Wisconsin.

“I want folks to watch it and say, ‘Wow, I had no idea all of that was in Wisconsin,” said Anne Sayers, Wisconsin’s tourism secretary. “We will be showing the very best of Wisconsin – our top restaurants, our top golf courses, our top trials, all the things that define us as a state that is a great place to travel and why it should be on the top of the bucket list.”

Variations of the 15-second spot will air nationally on each of the season’s 14 episodes, which debuted last week on the Bravo network.

“I think they know about our cheese, I think they know about our beer, and they are not wrong, but ‘Top Chef’ is going to show that it’s so much more than that,” Sayers said on WISN’s “UpFront,” which is produced in partnership with WisPolitics. “It’s also about our incredible natural resources, outdoor recreation opportunities, our bustling cities, our beautiful downtowns, outdoor, it’s all these things they will finally get to see.”

See more from the show.

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