Beyond the Factory Floor

A Wisconsin Community Proves that Solving the Labor Shortage isn’t About Finding More Workers but About Giving Them Reasons to Stay

Along the shores of Lake Michigan, where industrial heritage meets modern ambition, Manitowoc is engineering its own renaissance. This city of 35,000 residents exemplifies how mid-sized American communities can leverage their assets while addressing contemporary challenges. Adam Tegen, the city’s Community Development Director, frames it simply: “We’re kind of in that small to mid-size city range. While we are small and we’re welcoming, we are large enough that we have most of the amenities that people are looking for.”

The numbers tell part of the story. Tourism generated $216 million in local spending in 2022, while the city secured over $2.4 million in state and federal grants for brownfield cleanup projects. But Manitowoc’s transformation runs deeper than financial metrics. “We’ve always built things in Manitowoc, and we continue to build things,” Tegen says, referencing a manufacturing tradition that employs thousands across heavy manufacturing, food processing, and emerging technology sectors. Recent expansions by Wisconsin Aluminum Foundry, Lakeside Foods, and Briess Malt demonstrate how local companies are stepping up after the departure of longtime employers like Mirro Aluminum Company.

Natural resources provide another competitive edge. The city controls 5 miles of Lake Michigan shoreline and the Manitowoc River runs through downtown, creating opportunities for recreation and redevelopment. Progress on the River Point District, a 20-acre mixed-use project along the river, and movement on the long-stalled 36-acre former Mid-Cities Mall site signal renewed momentum. “It’s all about livability for the city of Manitowoc,” Tegen explains, outlining a strategy that balances infrastructure investment, business incentives, and quality of life improvements.

Downtown Revitalization

Manitowoc’s downtown transformation follows a deliberate three-phase approach that many mid-sized cities might study. The city invested first in fundamentals: streetscaping, decorative lighting, landscaping, and small parks. Phase two introduced economic tools, including two tax increment finance districts that enable targeted business incentives.

“We have a facade program that is a matching grant up to $25,000 per facade,” Tegen explains. “If a business invests $50,000 in their exterior, they get $25,000 of that back from the city.” The program has already sparked visible improvements along downtown corridors, where local entrepreneurs are renovating historic buildings for new uses.

The third phase focuses on business attraction and retention. City staff actively catalog vacant spaces, meet with existing businesses, and connect prospective tenants with property owners. “On the retail side, we know we’re not going to compete with the area along the interstate,” Tegen acknowledges. “Downtown is definitely a mom-and-pop, locally owned type of business community. We’re not going out there and trying to attract a large chain to put in the heart of our downtown.”

Recent state funding validates this approach. The Wisconsin Economic Development Corporation awarded $150,000 grants for site investigation at both the former Lakeshore Mall property and an 11th and Chicago Streets manufacturing site in the River Point District. The latter will become twenty townhomes adjacent to the Manitowoc River. Meanwhile, PetSkull Brewing has anchored the River Point District alongside an 87-unit apartment complex, kayak launch, and riverwalk.

Building on Manufacturing Heritage While Diversifying

Manufacturing remains Manitowoc’s economic backbone, contributing to Wisconsin’s position as the nation’s ninth-largest manufacturing employer with nearly 480,000 workers statewide. The city hosts operations spanning heavy manufacturing to specialized food processing, adapting to industry changes while maintaining its production heritage.

“Historically, our bread and butter has always been manufacturing and it continues to be our strength,” Tegen notes. “We’re currently mostly at capacity with our original industrial park, and we’re working on that next phase to make sure that we can accommodate larger businesses that are looking at our area.”

The city council allocated over $1 million for infrastructure development at a new 90-acre industrial park near Interstate 43, addressing capacity constraints as existing facilities fill up. Mayor Justin Nickels emphasized the proactive approach: “We’re trying to be proactive and think long-term before that completely fills up.”

Food processing represents another growth sector. “We have a very strong aspect of food industry, whether that’s canning or freezing or other processing of food products,” Tegen says. “That’s another strength that we’d like to focus on and continue to grow and expand.” Wisconsin leads the nation in food product machinery manufacturing, with over 3,700 food and beverage companies statewide.

Beyond traditional manufacturing, Manitowoc is cultivating emerging sectors. “We have a fairly strong medical sector that we’re continuing to support, and then we’re looking at some initiatives to try to further enhance our technology sector,” Tegen explains. “I would consider it more software and that end of the technology versus the construction of technology components.” The diversification strategy aligns with statewide trends showing manufacturers increasingly adopting automation and digital technologies.

Tackling the Housing Challenge

Housing has emerged as Manitowoc’s most pressing priority, reflecting a statewide crisis where workforce availability increasingly depends on residential options. “Like any community, we did a housing study needs assessment in 2021, and not shockingly, that basically came back and said, we need housing everywhere,” Tegen reports. “We need affordable housing, we need workforce housing, we need high-end housing, we need rental, we need new construction single family.”

The city responded aggressively, acquiring a former mall property spanning roughly 40 acres. “We’ve been doing site preparation since May of last year,” Tegen says. “And then we’ve signed a development agreement with a housing developer to bring in over 200 new residential units to the community. Those will be a mix of single family and rentals.”

Mayor Nickels has made housing his administration’s top focus, recognizing its connection to economic development. The former Mirro plant site, vacant since 2003, will finally see redevelopment thanks to a $1.9 million federal grant for environmental cleanup, with plans for approximately 60 apartments.

“It’s not always about just annexing new property on the periphery,” Tegen emphasizes. “It’s taking a look at what we need to improve within the community as well.” The River Point district exemplifies this approach, transforming 20 acres of former railroad land into a mixed-use neighborhood. “We’ve got just around a hundred units of new residential there, a couple of new commercial businesses,” he notes.

Workforce Development Through Strategic Partnerships

Wisconsin manufacturers report workforce shortages as their top concern, with demand for technical skills projected to increase 50% over the next decade. Manitowoc addresses this challenge through coordinated partnerships rather than isolated efforts.

“Probably two years ago, whenever we would walk into one of our local manufacturers, if they didn’t bring up labor in the first five minutes of the conversation, it was a bit shocking,” Tegen recalls. “That has eased a little bit. What we hear now is they’ve got enough to keep the doors open, but they could utilize more people if they had the talent.”

Progress Lakeshore, a public-private partnership, leads workforce development initiatives across Manitowoc County. The organization collaborates with Lakeshore College, UW-Green Bay’s Manitowoc campus, and Lakeland University to align educational programs with industry needs. Over 600 employees have completed data analytics training through these partnerships in recent years.

“The city has really taken a step back and said, what is our role in that?” Tegen explains. “What the Council have begun to focus more and more on is how do we get more housing here? We have employment, we have skilled labor, but how do we bring more people in to support those businesses?”

The strategy recognizes changing workforce priorities. “Traditionally, it may have been that thought of, I’m just going to go where I get paid the most and where the jobs are at,” Tegen observes. “Now we need to be a community that people want to be in. If they’re working in New York City and living here, that’s not necessarily a bad thing for the community.”

Embracing the Waterfront

For decades, Manitowoc tended to take for grantedits greatest natural assets. That mindset has shifted dramatically as the city recognizes how waterfront amenities drive tourism and talent attraction. The transformation generated tangible results, with tourism spending growing steadily over the last several years.

“For many years, Manitowoc overlooked the value of our waterfront,” Tegen reflects. “We didn’t always look at the river and the lake as the significant assets they are, but are now seeing their true potential.”

Downtown redevelopment projects now emphasize water access. ” In the downtown area where we’re seeing redevelopment and new projects, and you ask them why, they are talking about the river and they’re talking about the lake,” Tegen says. “Embracing that recreational use, whether that’s kayaking on the river, utilizing the marina that’s located in town for charter fishing or kayak rentals.”

The city created its own tourism department to modernize visitor outreach. New festivals showcase the lakefront, including a sand sculpting festival that draws thousands to Lake Michigan’s beaches. “That’s not something that had traditionally been looked at necessarily as an asset,” Tegen notes. “And now we’re really beginning to see that that’s where people want to be.”

“We’ve also been able to establish an aquatic center for family use,” Tegen reports. “There’s a very nice baseball facility that was developed over the last decade that hosts some regional tournaments.” The city also upgraded tennis courts to tournament standards through partnerships with the high school. The Mariners Trail, connecting Manitowoc to Two Rivers, provides a scenic recreational corridor that attracts both residents and visitors seeking outdoor experiences.

Looking Ahead: A Three-Pronged Vision

Manitowoc’s future strategy builds on current momentum while addressing persistent challenges. “Housing,” Tegen states emphatically when asked about top priorities. “The mayor has been saying that for the last two years. That’s priority number one. We need to make sure that we have the housing available for people to live here if they want to.”

Business development remains equally critical. “Combined with that is just continued emphasis on the growth of our local businesses and the attraction of new businesses,” he adds. The city’s revolving loan fund targets startups and small businesses, while infrastructure investments prepare sites for larger employers.

Quality of life improvements round out the strategic vision. “That’s going to be the parks projects, that’s going to be the continued investment in downtown, the continued use of things like a revolving loan fund to help small and new, unique businesses get started, whether it’s downtown or outside of downtown,” Tegen explains.

The philosophy shift proves instructive for similar communities. “When I started in this industry, it really truly was all about jobs. We want to get more smokestacks,” Tegen reflects. “Then it was transitioning more to let’s make sure that we’re supporting and we’re retaining our local businesses and helping them grow. And obviously as we’ve been talking now, housing is that big thing.”

Manitowoc stands at the intersection of old and new. The city that once built the cranes that constructed America now builds something equally ambitious: a model for industrial communities facing modern realities. With brownfield sites becoming housing, riverfronts becoming destinations, and manufacturers embracing software alongside steel, Manitowoc isn’t just preserving its past, it’s manufacturing its future, one strategic investment at a time.

AT A GLANCE

Who: City of Manitowoc

What: Mid-sized manufacturing city implementing comprehensive economic development strategy focused on housing, business growth, and quality of life improvements

Where: Manitowoc, Wisconsin

Website: www.manitowoc.org