Milwaukee - Economy

Economy

Milwaukee is the home to the international headquarters of 5 Fortune 500 companies: Johnson Controls, Northwestern Mutual, Manpower, Rockwell Automation and Harley-Davidson. Other companies based in Milwaukee include Jefferson Wells, Marshall & Ilsley, Hal Leonard, Wisconsin Energy, the American Society for Quality, Joy Global, A. O. Smith, Koss, Red Star Yeast, Master Lock, American Signal Corporation, GE Healthcare Diagnostic Imaging and Clinical Systems and MGIC Investments. The Milwaukee metropolitan area ranks fifth in the United States in terms of the number of Fortune 500 company headquarters as a share of the population. Milwaukee also has a large number of financial service firms, particularly those specializing in mutual funds and transaction processing systems, and a number of publishing and printing companies.

Service and managerial jobs are the fastest-growing segments of the Milwaukee economy, and health care alone makes up 27% the jobs in the city.

In 2009, five Milwaukee-area companies were selected as leaders in their industries as Fortune magazine recognized “The World’s Most-Admired Companies.” Two Milwaukee companies ranked second in their field: Manpower Inc. in the temporary help industry and Northwestern Mutual in life and health insurance. Johnson Controls Inc., Glendale, placed fourth among motor-vehicle parts firms. Ranked fifth were Fiserv Inc., Brookfield, in financial data services and Kohl’s Corp., Menomonee Falls, among general merchandisers.

Milwaukee became synonymous with Germans and beer beginning in the 1850s. The Germans had long enjoyed beer and set up breweries when they arrived in Milwaukee. By 1856, there were more than two dozen breweries in Milwaukee, most of them German-owned and -operated. Besides making beer for the rest of the nation, Milwaukeeans enjoyed consuming the various beers produced in the city's breweries. As early as 1843, pioneer historian James Buck recorded 138 taverns in Milwaukee, an average of one per forty residents. Beer halls and taverns are abundant in the city to this day although only one of the major breweries—Miller—remains in Milwaukee.

Milwaukee's founding fathers had a vision for the city. They knew it was perfectly situated as a port city, a center for collecting and distributing produce. Many of the new immigrants who were pouring into the new state of Wisconsin during the middle of the 19th century were wheat farmers. By 1860, Wisconsin was the second ranked wheat-growing state in the country and Milwaukee shipped more wheat than any place in the world. Railroads were needed to transport all this grain from the wheat fields of Wisconsin to Milwaukee's harbor. Improvements in railways at the time made this possible.

There was intense competition for markets with Chicago, and to a lesser degree, with Racine and Kenosha. Eventually Chicago won out. Due to its superior financial and transposition status, as well as being a hub on major railroad lines throughout the United States, Chicago had a distinct advantage over Milwaukee. Milwaukee did solidify its place as the commercial capital of Wisconsin and an important market in the Midwest.

Milwaukee was once the home to four of the world's largest beer breweries (Schlitz, Blatz, Pabst, and Miller), and was the number one beer producing city in the world for many years. Despite the decline in its position as the world's leading beer producer after the loss of two of those breweries, its one remaining major brewery, Miller Brewing Company remains a key employer by employing over 2,200 of the city's workers. Because of Miller's solid position as the second-largest beer-maker in the U.S., the city remains known as a beer town despite there being only one brewery.

The historic Milwaukee Brewery, located in "Miller Valley" at 4000 West State Street, is the oldest still-functioning major brewery in the United States. In July 2008, it was announced that Coors beer would be added to the list of beers brewed in Miller Valley. This created additional brewery jobs in Milwaukee, however, the company's world headquarters moved from Milwaukee to Chicago.

Besides Miller and the heavily automated Leinenkugel's brewery in the old Blatz 10th Street plant, the only other currently operating stand-alone breweries in Milwaukee are Milwaukee Brewing Company, a microbrewery in Walker's Point neighborhood, and Lakefront Brewery, a microbrewery located in Brewers Hill. The suburb of Glendale is home to Sprecher Brewery, another locally popular microbrew. Various brewpubs can be found throughout the Milwaukee area, including Milwaukee Ale House and Water Street Brewery.

Three beer brewers with Wisconsin operations made the 2009 list of the 50 largest beermakers in the United States, based on beer sales volume. Making the latest big-breweries list from Wisconsin is MillerCoors at No. 2. MillerCoors is a joint venture formed last year by Milwaukee-based Miller Brewing Co. and Golden, Colorado-based Molson Coors Brewing Company. The Minhas Craft Brewery in Monroe, Wisconsin which brews Huber, Rhinelander and Mountain Crest brands, ranked No. 14 and New Glarus Brewing Company., New Glarus, Wisconsin whose brands include Spotted Cow, Fat Squirrel and Uff-da, ranked No. 32.

Happy Days and Laverne and Shirley, two sitcoms that aired on ABC in the 1970s and 1980s, were set in Milwaukee, and often used the Milwaukee breweries as a backdrop for the storyline.

Because of its easy access to Lake Michigan and other waterways, Milwaukee's Menomonee Valley has historically been home to manufacturing, stockyards, rendering plants, shipping, and other heavy industry.

Reshaping of the valley began with the railroads built by city co-founder Byron Kilbourn to bring product from Wisconsin's farm interior to the port. By 1862 Milwaukee was the largest shipper of wheat on the planet, and related industry developed. Grain elevators were built and, due to Milwaukee's dominant German immigrant population, breweries sprang up around the processing of barley and hops. A number of tanneries were constructed, of which the Pfister & Vogel tannery grew to become the largest in America.

In 1843 George Burnham and his brother Jonathan opened a brickyard near 16th Street. When a durable and distinct cream-colored brick came out of the clay beds, other brickyards sprang up to take advantage of this resource. Because many of the city's buildings were built using this material it earned the nickname "Cream City", and consequently the brick was called Cream City brick. By 1881 the Burnham brickyard, which employed 200 men and peaked at 15 million bricks a year, was the largest in the world.

Flour mills, packing plants, breweries, railways and tanneries further industrialized the valley. With the marshlands drained and the Kinnickinnic and Milwaukee Rivers dredged, attention turned to the valley.

Along with the processing industries, bulk commodity storage and machining and manufacturing entered the scene. The valley was home to the Milwaukee Road, Falk Corporation, Cutler-Hammer, Harnischfeger, Chain Belt Company, Nordberg and other industry giants.

Early in the 20th century, Milwaukee was home to several pioneer brass era automobile makers, including Ogren (from 1919 to 1922).

In 2007, three Milwaukee-area companies were among nine firms honored for manufacturing excellence in the Wisconsin Manufacturer of the Year competition. Astronautics Corporation of America and Brady Corporation, both of which have headquarters in Milwaukee, and Wisconsin Plating Works Inc., Racine, each received special awards. Privately held Astronautics, a major supplier of government and commercial avionics, was honored for its high-technology research and development program. Brady, a publicly owned manufacturer of signs, labels and other identification and security products, received an award for corporate excellence. Privately owned Wisconsin Plating Works, which provides metal finishing services, received an award for employee and environmental stewardship. Nominated companies were evaluated in areas such as financial growth or consistency, technological advances, product development, environmental solutions, operational excellence/continuous improvement, commitment to employees, and effective research and development.

In 2009, a group of elected officials and business leaders is trying to entice Boston-Power Inc., a Massachusetts-based battery maker, to open a factory in Milwaukee. Milwaukee Alderman Tony Zielinski has introduced a resolution to have the city of Milwaukee appropriate from $1 million to $20 million for a factory for Boston-Power, the Westborough, Mass.-based manufacturer of lithium-ion batteries for laptop computers, personal digital assistants, mobile telephones and other portable devices. Stimulus package funds are included in the $787 billion stimulus package signed by President Barack Obama for lithium-ion battery development, he said. Boston-Power’s interest in locating a plant in Milwaukee stems in part from the area’s manufacturing heritage and that it’s home to Johnson Controls Inc., the manufacturer has been developing lithium-ion batteries for hybrid electric vehicles, plug-in hybrid-electric vehicles and electric vehicles.