Milwaukee Economy: Beer, Manufacturing, and Healthcare

The Milwaukee metro area — formally Milwaukee-Waukesha — is the largest metro economy in Wisconsin and one of the densest manufacturing clusters in the Midwest. It is the corporate hub of Northwestern Mutual and a long list of industrial firms, the home of Harley-Davidson, the brewing capital of the United States, and a major healthcare and higher-education center. Milwaukee's economy still leans on manufacturing more than most large U.S. metros, but healthcare and finance now do most of the heavy lifting.

This is a plain-English tour of how the Milwaukee metro economy works. For the state-level picture, see Wisconsin Economy. For the country-level view, see The State of the U.S. Economy and the broader Economy hub and city cluster.

How big is the Milwaukee metro economy?

For example, recent metro GDP for Milwaukee-Waukesha has run around $115 billion, according to the Bureau of Economic Analysis. Metro population is roughly 1.6 million, per the U.S. Census Bureau. That makes the Milwaukee metro larger by population than 9 of the 50 U.S. states.

The biggest industries

A handful of sectors do most of the work in the Milwaukee metro economy:

• Manufacturing — Milwaukee is one of the densest industrial clusters in the country. Harley-Davidson (motorcycles), Rockwell Automation (industrial automation), Briggs and Stratton (engines), Johnson Controls (building systems), A.O. Smith (water heaters), Master Lock (security), and a long supplier base together employ a large share of the workforce.
• Healthcare — Advocate Aurora Health, Froedtert and the Medical College of Wisconsin, Children's Wisconsin, and Ascension Wisconsin together employ huge numbers of workers across the metro.
• Finance and insurance — Northwestern Mutual is headquartered downtown and is one of the largest single private employers in Wisconsin. Robert W. Baird, Marshall and Ilsley's successor banks, and a deep insurance back-office cluster add to the financial-services workforce.
• Beer and food and beverage — MillerCoors (now Molson Coors) is headquartered in Chicago but maintains its largest brewery in Milwaukee, and a deep specialty-brewing, distilling, and food-processing cluster fills out the sector.
• Higher education — the University of Wisconsin-Milwaukee, Marquette, and a handful of smaller colleges anchor faculty and staff workforces.
• Trade and logistics — the Port of Milwaukee on Lake Michigan handles bulk and breakbulk cargo, and the metro's rail and highway connections feed Midwest distribution.
• Tech and software — a quietly growing software, fintech, and back-office cluster, much of it tied to the in-house tech needs of Northwestern Mutual, Rockwell, and Johnson Controls.

Jobs and wages

Metro labor data is published by the Bureau of Labor Statistics Midwest region. For example, the Milwaukee metro unemployment rate has typically run close to the national average, helped by the steadiness of healthcare and finance and offset by slow declines in heavy manufacturing.

Wisconsin uses the federal minimum wage of $7.25 — among the lowest of any state — though most large Milwaukee employers pay well above it. The latest figures are at the Wisconsin Department of Workforce Development.

Cost of living

Milwaukee's cost of living is among the more affordable large U.S. metros. For example, recent HUD Fair Market Rent for a two-bedroom in the metro has run around $1,200 a month, with the East Side, Bay View, Brookfield, and Mequon higher and parts of central and northern Milwaukee lower. Current county-level numbers are at HUD User.

The federal government tracks region-specific inflation data through the BLS Midwest region. Milwaukee's CPI tends to track close to the national average month to month.

Taxes in Milwaukee

Wisconsin has a progressive state income tax with four brackets and a moderate top rate. Combined sales tax in Milwaukee County is 5.9%, made up of the state's 5% base plus a 0.5% county piece and a 0.4% Milwaukee city add-on enacted in recent years. Property taxes vary by municipality and are on the higher end of U.S. norms. There is no city income tax. State rules live at the Wisconsin Department of Revenue, and you can read more about how sales tax works in our glossary.

How the Milwaukee metro fits into the national picture

Milwaukee is one of the most manufacturing-dependent large U.S. metros. When U.S. industrial production runs hot, Rockwell, Johnson Controls, Harley, and the broader supplier base hire aggressively. When manufacturing softens, the metro feels it quickly. The growth of healthcare, finance, and back-office work has steadied the broader employment base, but the rhythm is still set by the country's industrial cycle.

Beer, manufacturing, and the long pivot

Milwaukee's identity has been tied to brewing for a century and a half — Pabst, Schlitz, Blatz, Miller — and to the broader heavy industry that grew up around Lake Michigan's Great Lakes economy. The pivot toward healthcare and finance has been slower than in Pittsburgh or Cleveland, partly because so many of the metro's industrial employers have stayed competitive. Federal data on metro industry mix lives at the Bureau of Economic Analysis.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and HUD User for the most current data on the Milwaukee metro.