Foxconn Struggles To Put Wisconsin First

Progress is slow on promises to create jobs and support business in the state

- Dimitra Kessenides and David Rocks

Since the Taiwanese electronics manufacturer Foxconn announced a plan in 2017 to develop a factory hub south of Milwaukee, it’s promised to take a “Wisconsin First” approach to hiring local suppliers. While that phrase didn’t make it into the final contract, that’s how state officials and Foxconn have touted the deal, which involves about $4 billion in potential subsidies.

The effort is getting off to a slow start, according to a review by Bloomberg Businessweek of Foxconn supply chain and budget documents covering much of 2018. The internal documents, along with financial reports the manufacturer recently filed with the state agency overseeing the partnership, contain discrepancies with previous public statements by Foxconn executives. They provide a look at the early challenges Foxconn has faced in trying to deliver on its promises to the state. And they raise questions about public-investment returns on large-scale government incentive packages. Such incentives have become increasingly controversial as companies from Amazon.com Inc. to General Electric Co. have sought huge state subsidies.

President Trump heralded the Wisconsin deal last June at a groundbreaking ceremony for the Mount Pleasant factory with Foxconn Technology Group Chairman Terry Gou, saying the company’s presence in the state would transform local businesses.

The White House didn’t respond to a request for comment, nor did a representative for Wisconsin State Assembly Speaker Robin Vos, a vocal supporter of the Foxconn deal.