Economic Performance Analysis for Wisconsin: A Report on Trade and Manufacturing in the Context of Sustainable Development Goals

Introduction

This report provides an analysis of recent economic data for the state of Wisconsin, with a specific focus on international trade and the manufacturing sector. The findings are evaluated through the lens of the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

International Trade Performance and SDG Alignment

Analysis of Trade Data

An examination of Wisconsin’s international trade, based on a 12-month trailing moving average of real goods data, reveals several key trends:

• Real Exports: A decline in real exports was observed prior to the November election, with a more pronounced drop occurring from November onward.
• Real Imports: A decline in real imports began in March.
• Data Considerations: It is noted that state-level trade data can be subject to reporting errors. For instance, agricultural goods grown in Wisconsin may be officially attributed to the state of export, such as Louisiana, which can affect precise measurements.

Connection to Sustainable Development Goals

These trade trends have direct implications for Wisconsin’s progress toward several SDGs:

• SDG 8 (Decent Work and Economic Growth): A sustained decline in exports can negatively impact economic growth, potentially threatening the stability of employment and the creation of decent work opportunities within the state’s export-oriented industries.
• SDG 9 (Industry, Innovation, and Infrastructure): The performance of the state’s export sector is a key indicator of its industrial competitiveness and resilience. The observed decline suggests potential challenges in maintaining a robust and sustainable industrial base capable of competing in the global market.
• SDG 17 (Partnerships for the Goals): International trade is a fundamental component of global partnerships. Fluctuations in import and export volumes reflect the changing dynamics of these partnerships and their impact on the local economy.

Manufacturing Sector Review and SDG 8

Employment and Value Added Trends

The manufacturing sector, a critical component of Wisconsin’s economy, shows signs of slowing momentum.

• Manufacturing Value Added: While comprehensive data for the second quarter is not yet available, existing figures indicate that growth in real manufacturing value added has been tailing off.
• Manufacturing Employment: Preliminary data for June indicates that manufacturing employment is now declining.

Implications for SDG 8: Decent Work and Economic Growth

The performance of the manufacturing sector is integral to achieving the targets of SDG 8. The recent trends present significant challenges:

1. The manufacturing sector is a primary driver for achieving sustainable economic growth and providing employment, making its health crucial for SDG 8.
2. The decline in manufacturing employment directly counters the SDG 8 target of achieving full and productive employment and decent work for all.
3. Slowing growth in manufacturing value added points to a potential reduction in economic productivity, another key metric under SDG 8.

Correlation with National Trends

The challenges observed in Wisconsin’s manufacturing sector appear to be linked to broader economic forces. Analysis shows a strong correlation between changes in Wisconsin’s manufacturing employment and changes in U.S. national manufacturing employment (correlation coefficient of 0.91, R² of 0.48 for the 2022-2025 period). This suggests that national economic headwinds are a significant factor impacting the state’s ability to advance its local economic goals in line with SDG 8.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article’s discussion on Wisconsin’s economy, particularly its manufacturing and trade sectors, connects to several Sustainable Development Goals. The following SDGs are addressed:

• SDG 8: Decent Work and Economic Growth: The article’s primary focus is on economic performance and employment. It analyzes “employment numbers,” “manufacturing employment,” and “real manufacturing value added,” which are core components of economic growth and job creation.
• SDG 9: Industry, Innovation and Infrastructure: The article specifically investigates the health of the manufacturing sector in Wisconsin. By examining “manufacturing employment” and “manufacturing value added,” it directly relates to the goal of promoting sustainable industrialization.
• SDG 17: Partnerships for the Goals: The analysis of Wisconsin’s trade performance, including data on “goods exports” and “imports,” connects to the targets related to international trade, which is a key aspect of global partnerships for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus, the following specific targets can be identified:

1. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.1: Sustain per capita economic growth. The article addresses this by analyzing “Wisconsin real manufacturing value added,” which is a key component of the state’s economic output and growth.
   • Target 8.2: Achieve higher levels of economic productivity through diversification and focus on high-value added sectors. The article’s examination of the manufacturing sector, a high-value-added industry, and its output (“value added”) directly relates to this target.
   • Target 8.5: Achieve full and productive employment. The discussion and graphing of “Wisconsin manufacturing employment” and its decline directly pertain to the goal of monitoring and achieving productive employment.
2. Under SDG 9 (Industry, Innovation and Infrastructure):
   • Target 9.2: Promote inclusive and sustainable industrialization and significantly raise industry’s share of employment and gross domestic product. The article’s entire analysis of “manufacturing employment” and “manufacturing value added” as a measure of the sector’s health directly aligns with this target.
3. Under SDG 17 (Partnerships for the Goals):
   • Target 17.11: Significantly increase the exports of developing countries. While Wisconsin is not a developing country, the principle of monitoring trade is universal. The article’s analysis of “Wisconsin goods exports” and “imports” directly relates to the monitoring of trade flows, which is central to this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article explicitly uses several quantitative indicators to analyze the economic situation, which can be used to measure progress towards the identified targets.

• For Target 8.1 and 9.2: The indicator used is “Wisconsin real manufacturing value added, mn Ch.2017$, SAAR.” This is shown in the blue bars in Figure 2 and serves as a direct measure of the economic output of the manufacturing industry, a proxy for progress in economic growth and industrialization.
• For Target 8.5 and 9.2: The indicator used is “Wisconsin manufacturing employment, 000’s.” This is represented by the black line in Figure 2 and is a direct measure of employment within a key industrial sector.
• For Target 17.11: The indicators are the “12 month trailing moving average of Wisconsin goods exports deflated by US goods export price index” and “imports deflated by US goods imports price index.” These are plotted in Figure 1 and provide a clear measure of the state’s trade performance over time.

4. Summary Table of SDGs, Targets, and Indicators

Source: econbrowser.com