If you are in the Madison area I can understand some of the doom and gloom. There aren't many industries left in this area that need tool and die support. The last company in this area to farm out large quantities of machine work was Oscar Mayer. For over 50 years they designed and built the majority of their own processing and packaging equipment. The prototypes were built in house. When the machines were approved they went to local and Fox Valley companies to have the parts built. Often times they would make several dozen of the same machines at a time.
Keep in mind these machines were often multiple story beasts, several hundred feet long capable of smoking, cooking, and chilling over 100,000 lbs. of product at a time. The design department (General Machine Development) closed in 2000, but the company still retained outside contractors to support and modify existing machines. When the company was sold to Kraft Heinz the new management decided they would no longer use the in house proprietary equipment. They have been systematically replacing everything with equipment purchased from commercial vendors. The commercial vendors already have their own parts manufacturing and distribution networks, so all the former Oscar Mayer suppliers have seen a drop in business.
A quick look at Tool and Die Makers wages across Wisconsin confirms that the salaries in the Madison area are somewhat lower than the state average. The "average" around the state seems to be in the mid $20.00 per hour range. Madison is currently slightly less than $20.00 per hour. Add into that the local technical college (MATC) has an excellent machinist, and Tool and Die Maker program. Consequently there are more new faces entering the local market at the end of each semester. An abundance of qualified help tends to keep area wages somewhat lower than the average.