Wisconsin could become a powerhouse for electric vehicle production, according to the report

Wisconsin’s status as a powerhouse for the auto industry could make the state a global hotspot for electric vehicle (EV) production, according to a report for the Wisconsin Economic Development Corporation (WEDC).

Prepared by the nonprofit research institute SRI International, the report states that Wisconsin is “home to a large and diverse automotive sector that includes companies that supply raw materials for the automotive industry. automobile, manufacturers that produce auto parts, and original equipment manufacturers that assemble those parts into complete vehicles.”

Wisconsin’s auto manufacturing sector employs more than 92,000 workers statewide, SRI International noted.

Manufacturing also played a significant role in shaping Wisconsin’s real GDP, with 57.95% coming from the sector in 2021, more than any other economic sector, according to data from the US Bureau of Economic Analysis.

Besides, Wisconsin Public Radio reported that the state registered 13,893 electric vehicles last year, up 53% from 2021.

With global demands for electric vehicles growing due to oil shortages, companies in Wisconsin’s auto industry may face some disruption unless they make a new transition from internal combustion engine (ICE) in electric vehicle supply chains, according to the report.

While the state could become an electric vehicle hub due to its presence in the vehicle manufacturing industry, the report identified broader challenges that need to be addressed to realize that goal.

The first challenge the report identified was low manufacturing productivity, which researchers found diminished Wisconsin’s competitiveness in national and global markets. According to the WEDC report, Wisconsin’s below-average productivity in this sector stems from an over-reliance on labor versus automated machinery as a production input.

“There is a great need for investments in automation and other forms of process innovation that will increase the productivity of Wisconsin manufacturers,” the report says.

Wisconsin’s reduced vulnerability to disruptions caused by the global transition to electric vehicles, as manufacturing already produces components for both ICE products and electric vehicles, according to the report. However, the report also found that Wisconsin’s over-reliance on labor threatens its future competitiveness in the global marketplace.

Another “chronic problem” is the shortage of skilled manufacturing workers in Wisconsin, according to the report. An aging workforce, a negative perception of manufacturing work, and slow labor force and population growth are the causes of this shortage.

“Increasing the supply of skilled labor through increased technical training should be considered a priority in the short and medium term,” the report said.