Growth of small-scale manufacturing possible path to expanding economy

Milwaukee’s manufacturing tradition lives on today, though the sector has transformed since its heyday. New research produced through a collaborative effort among the Greater Milwaukee Foundation, Bader Philanthropies and the Urban Manufacturing Alliance (UMA) reveals the community’s growing share of smaller scale manufacturing and its potential as a driver of economic expansion and equity.

The State of Urban Manufacturing: Milwaukee City Snapshot provides never-before-captured data on city manufacturing, with an emphasis on makers, artisans and small-batch manufacturing. The report is the third of a six-city series produced by the UMA.

It found a new generation of small-scale manufacturers taking root in Milwaukee and eager to grow. Ninety-four percent of firms surveyed for the Milwaukee Snapshot said they expected to expand in two years while 58 percent said they expected to be “significantly larger” in that time. Remarkably, about half of firms with fewer than 10 employees are already selling their products nationally or internationally. 

“The Urban Manufacturing Alliance’s research presents our legacy manufacturing city with a tool for better appreciating the shape and scope of making and manufacturing today,” said Marcus White, vice president for civic engagement for the Foundation, which supported the research through funding and convening. “As the Foundation continues its work to improve access to employment opportunities and advance economic inclusion, the knowledge from this report will offer insight into a portion of the local economy that is full of potential but not fully understood.”

Increasing equity in the sector – particularly through greater racial and socioeconomic diversity of the work force – was a need emphasized by local makers and manufacturers. The opportunity to do so is connected to addressing the barriers to growth these entrepreneurs face, the largest of which are reaching new customers, finding qualified employees and access to financial resources.

Based on its research, the UMA suggested more partnerships between government and economic development practitioners in Milwaukee to help newer manufacturers grow. Key recommendations include:

  • Increasing focus on small business development and support, including affordable spaces for emerging businesses to occupy.
  • Nurturing the maker ecosystem by establishing an advocating body for the sector and increasing access to markets locally, regionally and nationally.
  • Expanding access to growth capital through innovating lending and funding models. This need is pronounced: Nearly 91 percent of firms founded after 2007 said they relied on their own money to establish their businesses. Just 11 percent were able to access bank loans when starting. 

“Smaller firms and bigger, legacy manufacturers alike are what fortify Milwaukee’s economy,” said Katy Stanton, program director at the UMA, noting that manufacturing remains the second-largest employer in the city. “We hope this report helps policymakers and other local stakeholders plot out new programs to help these businesses prosper.”

For an in-depth interview with Marcus White and Katy Stanton on the topic of urban manufacturing listen to this segment on WUWM’s Lake Effect.