Economic Report: Thriving Amid Turmoil: Wisconsin’s Economic Resilience in 2025
By Tom Still, Wisconsin Technology Council
It sometimes feels like the world has come unhinged. Wars, democracies wrenched by deep political divisions, a healthcare CEO gunned down in Manhattan to seeming social media applause, and drug-induced decay eating at us from within.
In stark contrast, public markets continue to flirt with records, economic growth forecasts are in the 2%-plus range, Bitcoin prices surged past $100,000 in December, U.S. employers added 227,000 jobs in November alone, and inflation is receding.
No one ever said economies must be in sync with societal dysfunction.
As 2025 unfolds in Wisconsin, economic expansion appears on track here for much of the state as well as nationally, in part prompted by the same trends that are redefining technology sectors on a broad front – artificial intelligence, renewed investment, and innovation in health care and advanced manufacturing.
Work will accelerate this year on the Microsoft data center in Racine County, where existing infrastructure from the Foxconn deal saves time and money. Don’t be surprised if other Wisconsin data center announcements occur as uses of artificial intelligence grow and companies recognize the state’s physical and talent advantages.
Eli Lilly’s decision to acquire the Nexus Pharmaceutical plant in Kenosha County and to expand it with 750 jobs is further evidence that tech-based manufacturing can flourish on the “I-Q Corridor” that connects Chicago, southeast Wisconsin and Madison. The “I” is not just for interstate but innovation, intellectual property, and investment, with the “Q” denoting quality.
In Madison, tech companies such as Epic, Promega, Exact Sciences, Zendesk, GrocerKey, Fetch Rewards, and Elephas are thriving, with another generation of startups coming up. Angel and venture capital investment rebounded a bit statewide in the second half of 2024 (the peak year was 2021 at $869 million) and could continue in the new year.
Some initiatives likely to surface in the 119th Congress would help Wisconsin and other states if enacted. They include full restoration of research and development tax breaks and increasing tax deductions for startup business costs. State-by-state efforts to regulate AI may be “trumped” by federal rules that avoid patchwork approach to regulation.
The National Science Foundation’s “Regional Innovation Engines” program is fostering innovation in places prepared to show results that can be replicated elsewhere. One Wisconsin program has made an early cut with a proposal tied to regenerative agriculture. Already approved by the federal Economic Development Administration, with state support, is a Biohealth Tech Hub to connect companies and researchers on the I-Q Corridor.
A nagging concern is the rural economy, but Wisconsin’s rural population is growing and even outpacing other Midwest states. Between 2000 and 2022, Wisconsin’s rural population increased 5.1%, second in the Midwest to North Dakota. Still, come counties witnessed small declines. A state report covering 2020 through 2023 noted seven counties with decreases exceeding one-half of 1%, but only one of county lost more than 200 people.
Society is not without its challenges, but economic trends can transcend those problems – at least for a while. Such may be the story of 2025.
Still is president of the Wisconsin Technology Council | The Wisconsin Technology Council is the independent, non-partisan science and technology advisor to the Governor and the Legislature.
