Executive Letter: 2025 Economic Outlook – Insights Across Industries
By Rose Oswald Poels
It is tradition that as the new year approaches, WBA seeks out insights from leaders representing key industries in our state. It’s always interesting to read their observations, and I appreciate how generous those leaders have been with their valuable time and viewpoints.
As we step into 2025, a sense of cautious optimism permeates Wisconsin’s industries. Despite varying challenges, common threads — resilience, innovation, and adaptability — emerge as guiding principles. Below, I share recaps from my report and the seven other industry perspectives.
Rose Oswald Poels, Wisconsin Bankers Association
Wisconsin’s banking sector enters 2025 supported by strong capitalization, stable lending, and technological innovation, but tempered by regulatory concerns and economic challenges like elevated interest rates and housing market imbalances. The industry is hopeful for regulatory relief under the new administration, though broader economic recovery remains uncertain.
Robb Kahl, Construction Business Group
Wisconsin’s construction industry starts 2025 bolstered by federal infrastructure investments, stabilizing material prices, and projected growth in nonresidential building activity. However, workforce shortages and potential tariff changes remain key challenges, with the industry’s success reliant on supportive state and federal policies to sustain funding, streamline processes, and enhance job quality.
Bradley Uken, Wisconsin Farm Bureau Federation
Wisconsin farmers continue to face significant challenges, including policy shortcomings, rising costs, and market pressures, compounded by unpredictable weather conditions. Initiatives like the Agricultural Roads Improvement Program and increased funding for the Ag in the Classroom program have been positive. A new Farm Bill is needed to ensure the agricultural sector’s resilience and growth.
Mike Semmann, Wisconsin Grocers Association
Wisconsin’s grocery industry in 2025 will navigate persistent inflationary pressures, changing consumer sentiment, and increased competition, with success hinging on effective differentiation and quality service. Despite challenges, the industry remains poised for growth, supported by consumer-focused strategies and opportunities for consolidation.
Eric Borgerding, Wisconsin Hospital Association
Wisconsin hospitals face escalating financial pressures due to rising costs, workforce shortages, and administrative inefficiencies, compounded by inadequate reimbursement rates from Medicare and Medicaid. Addressing these issues through improved policies, workforce investments, and increasing transparency about the role of costly “middlemen” is crucial to maintaining hospital viability and meeting the growing demand for healthcare services.
Kurt Bauer, Wisconsin Manufacturers & Commerce
A second Trump administration is expected to emphasize policies favoring business growth, such as tax cuts, energy independence, deregulation, and support for reshoring. However, challenges stemming from inflation, tariffs, and immigration policy reforms could impact Wisconsin businesses.
Tom Larson, Wisconsin REALTORS® Association
Wisconsin’s housing market saw modest sales growth in 2024 due to slight inventory improvements, yet affordability challenges persist due to rising home prices, high mortgage rates, and stagnant incomes. To address these issues, policymakers must support pro-business and pro-housing initiatives to expand affordable housing and sustain economic growth.
Tom Still, Wisconsin Technology Council
Despite societal challenges, Wisconsin’s economic outlook for 2025 is strong, driven by advancements in AI, healthcare, and tech-based manufacturing along the “I-Q Corridor,” alongside major investments like Microsoft’s data center and Eli Lilly’s expansion. National and state initiatives supporting innovation and entrepreneurship further bolster growth, though rural population dynamics remains a concern.
These eight sector-specific reports, offering insights into what lies ahead for Wisconsin’s economy in 2025, are available at wisbank.com/2025forecast.
I invite you, as leaders in Wisconsin banking, to reflect on how these insights can inspire your strategies for success in the year ahead.
Across all sectors, Wisconsin leaders recognize that proactive policies, strategic investments, and a commitment to innovation are vital for navigating the evolving landscape of 2025. Our collective resilience and ability to adapt will ensure a prosperous future for all of Wisconsin’s businesses and communities.
