MADISON – Wisconsin manufacturers are increasingly participating in international trade and engaging with foreign investors and employers, according to the Wisconsin Manufacturing Trade and Foreign Investment Report commissioned by Wisconsin Manufacturers & Commerce (WMC) in partnership with the Midwest Manufacturing Association.
Role of Manufacturing in Wisconsin’s Economy
Manufacturing is a bedrock of Wisconsin’s economy, employing nearly half a million people and supporting a large network of trade, foreign investment, and high-value industries.
In 2024, Wisconsin’s manufacturing industry contributed $73.7 billion to its GDP, making it the largest sector of Wisconsin’s economy. Wisconsin manufacturers sold $209 billion in manufactured goods (final & non-final) and generated an estimated $42.8 billion in earnings for manufacturing workers.
Exports: Global Reach of Wisconsin Manufacturers
Wisconsin’s manufacturing exports totaled an estimated $24 billion and played a crucial role in the state’s employment landscape. The report reveals that 5% of Wisconsin’s total employment was directly or indirectly supported by exports.
Nearly 150,000 Wisconsin jobs are related to exports. Of that number, 60,440, or 2% of the workforce, were directly supported by manufacturing exports, while an additional 88,620 jobs, 3% of the workforce, were indirectly supported.
“Wisconsin is a manufacturing state, so it is no surprise that manufacturers lead the way on exports,” said WMC President & CEO Kurt R. Bauer. “Wisconsin’s economy depends on manufacturing, and a growing number of manufacturers depend on exports.”
Wisconsin has a diverse economic landscape, and the state’s top export industries reflect the complexity of the state’s market. Agriculture and construction machinery accounted for $1.76 billion in exports. Computer equipment was a close second, generating $1.74 billion, while navigational & control instruments contributed $1.63 billion, demonstrating the breadth of Wisconsin’s export activity.
Canada emerges as the most significant trade partner for Wisconsin’s manufacturers, with a substantial $7.94 billion worth of products exported. Mexico closely follows at $4.36 billion, and China came in third at $1.55 billion.
Imports: Supply Chain Realities
According to the report, Wisconsin imports outpaced exports in 2024, contributing to a modest trade deficit for the state. Imports in Wisconsin, the Midwest, and the U.S. have been on a steady rise since 2009, and that trend shows no sign of slowing.
Over the last decade, Wisconsin’s imports have been consistently outpacing exports, with 29% of the state’s demand for manufactured goods being met through international imports in 2024.
“Wisconsin has long played an important role in the national and global economy,” Bauer said. “We depend on internationally sourced raw materials and goods to then create components and products that we contribute elsewhere. It’s imperative we support this cycle through good policymaking, ensuring foreign and domestic markets are free, fair, and reciprocal.”
Pharmaceuticals, general-purpose machinery, and navigational & control instruments lead the list of Wisconsin’s top import industries. Pharmaceutical imports accounted for $4.80 billion, general-purpose machinery at $2.86 billion, and navigational & control instruments at $1.68 billion.
Like exports, Canada and Mexico were also in the top three sources of Wisconsin imports, but fell behind China. China sourced $6.42 billion in Wisconsin imports, with Canada at $6.25 billion and Mexico at $5.94 billion.
Foreign Direct Investment (FDI)
As for foreign investment, Wisconsin has seen a significant rise in manufacturing employment from majority, foreign-owned companies.
According to the study, this trend is growing nationwide, but most significantly in Midwest states. In fact, the share of insourced manufacturing jobs in the region was nine percentage points higher than the national average in 2022.
As for Wisconsin, 75,900 jobs in Wisconsin manufacturing were with foreign-owned companies in 2022, double the total from 15 years prior.
